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BANK SOUTH EARNS $13.2 MILLION IN FIRST QUARTER Loan Quality Continues to Improve

 ATLANTA, April 15 /PRNewswire/ -- Bank South (NASDAQ: BKSO) announced today net income for the first quarter of 1993 of $13.2 million, or 31 cents per share.
 This compares to $668,000, or 2 cents per share for the same period of 1992.
 Non-performing assets declined by 15 percent during the first quarter, from $107.4 million to $91.6 million. Since March 31, 1992, non-peforming assets have decreased by 49 percent.
 Non-performing assets represented 3.43 percent of total loans and other real estate owned (OREO) at the end of the first quarter compared to 3.98 percent at Dec. 31, 1992, and 6.28 percent at March 31, 1992. At their peak in September 1991, non-performing assets represented 8.06 percent of total loans and OREO.
 Included in the first quarter results were securities gains of $3.8 million and $2.1 million in one-time charges related to early retirement and restructuring programs. The first quarter of 1992 included securities gains of $6.1 million.
 Return on average assets and return on average equity for the quarter were 1.23 percent and 15.85 percent, respectively.
 "The news continued to be good for Bank South during the first quarter," said Patrick L. Flinn, chairman and chief executive officer. "Not only did earnings exceed expectations, but we also reinstated our quarterly dividend and ended our formal agreement with the Office of the Comptroller of the Currency."
 Flinn continued, "Asset quality still isn't where we want it to be, but we have made huge strides since the latter part of 1991."
 Net charge-offs for the first quarter were $2.8 million, compared to $4.3 million in the first quarter of 1992. On March 31, the allowance for loan losses stood at 2.97 percent of total loans, and 139 percent of non-performing loans.
 Book value per share was $8.17 at quarter-end, compared to $6.84 a year earlier. Shareholders' equity as a percent of total assets increased to 8.16 percent at the end of the quarter, compared to 5.33 percent at the end of the first quarter of 1992.
 The net interest margin for the first quarter was 4.96 percent, compared to 4.01 percent for the same quarter of 1992. The increase in the net interest margin reflects significant growth in lower-cost checking, savings, and NOW accounts and consumer loans, the decline in non-performing assets, and an increase in off balance sheet investment activities.
 Among other highlights of the first quarter:
 -- A formal agreement between Bank South and the Office of the Comptroller of the Currency (OCC) was rescinded due to improvement in the bank's operating performance. The agreement had been in place since August 1991.
 -- The Bank South board of directors voted to reinstate a dividend on the company's common stock. A dividend of four cents per share was paid April 1. The last quarterly dividend was paid in July 1991.
 -- Bank South announced its commitment to The Atlanta Project through partnership with the Decatur Cluster. The Atlanta Project seeks to reduce poverty, homelessness, crime and other related social problems in Atlanta's urban areas. Bank South will provide financial and in-kind services to improve the professional and residential community in Decatur.
 -- Thomson BankWatch upgraded the Issuer and Short-Term ratings of Bank South, reflecting the company's increased earnings capacity, improved asset quality, and prospects for continued favorable performance.
 -- Bank South announced several dramatic enhancements to its delivery systems. They included additions, consolidations and relocations of several branches; the redesign of over 100 branches, and a new telephone banking system that allows customers to open accounts and apply for loans over the telephone. The enhancements reflect the bank's commitment to have the most convenient and efficient delivery systems in its marketplace.
 Bank South Corporation is a $4.3 billion, multi-bank holding company with 133 offices throughout metro Atlanta, and Pensacola, Fla.
 BANK SOUTH CORPORATION AND SUBSIDIARIES
 Selected Financial Information (Unaudited)
 (Dollars in thousands, except per share data)
 1992
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 For the period:
 Net interest income,
 taxable equivalent $38,941 $ 42,429 $ 43,582 $45,791
 Net interest income 38,148 41,670 42,902 45,139
 Provision for loan losses 9,000 8,000 7,000 7,000
 Other income 21,085 21,127 23,450 23,282
 Realized/unrealized gains/
 losses on securities 6,074 81 1,490 24,499
 Other real estate expense 5,470 4,489 1,723 3,702
 Other expense 50,016 48,500 52,880 56,476
 Income tax expense (benefit) 153 326 1,184 4,739
 Net income (loss) $ 668 $ 1,563 $ 5,055 $21,003
 Year end 1993 YTD 1993 vs
 12/31/92 1st qtr. YTD 1992
 For the period:
 Net interest income,
 taxable equivalent $170,743 $ 47,645 22 pct.
 Net interest income 167,859 46,774 23
 Provision for loan losses 31,000 6,000 (33)
 Other income 88,944 22,668 8
 Realized/Unrealized gains/
 losses on securities 32,144 3,844 (37)
 Other real estate expense 15,384 31 (99)
 Other expense 207,872 51,785 4
 Income tax exp. (benefit) 6,402 2,233 1,359
 Net income (loss) $ 28,289 $ 13,237 1,882
 1992
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Per common share:
 Net income (loss) $ 0.02 $ 0.04 $ 0.13 $ 0.51
 Cash dividends declared 0.00 0.00 0.00 0.00
 Book value 6.84 7.01 7.20 7.79
 Common stock price:
 High $ 10.00 $ 11.88 $ 11.50 $ 12.88
 Low 5.63 8.75 9.25 10.50
 Quarter end 8.75 10.88 10.88 11.75
 Year end 1993 YTD 1993 vs.
 12/31/92 1st qtr. YTD 1992
 Per common share:
 Net income (loss) $ 0.74 $ 0.31 1,531 pct.
 Cash dividends declared 0.00 0.04 100
 Book value 7.79 8.17 19
 Common stock price:
 High $ 12.88 $ 14.75 48
 Low 5.63 11.63 107
 Quarter end 11.75 13.63 56
 1992
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Quarter end balances:
 Loans, net of unearned
 income $2,776,450 $2,745,349 $2,701,919 $2,658,218
 Earning assets 3,914,323 4,077,538 4,319,456 3,916,388
 Total assets 4,479,182 4,600,258 4,758,414 4,464,459
 Core deposits 3,317,695 3,365,979 3,338,472 3,418,527
 Total deposits 3,565,677 3,564,657 3,557,640 3,632,429
 Long-term debt 61,829 60,263 59,734 59,600
 Shareholders' equity 238,653 280,510 294,620 325,520
 Common shares outst. 34,899,730 39,989,254 40,913,947 41,804,901
 Year end 1993 YTD 1993 vs.
 12/31/92 1st qtr. YTD 1992
 Quarter end balances:
 Loans, net of unearned
 income $2,658,218 $2,634,294 (5)
 Earning assets 3,916,388 3,811,258 (3)
 Total assets 4,464,459 4,310,220 (4)
 Core deposits 3,418,527 3,261,810 (2)
 Total deposits 3,632,429 3,505,269 (
 Long-term debt 59,600 59,120 (4)
 Shareholders' equity 325,520 351,845 47
 Common shares outst. 41,804,901 43,047,133 23
 1992
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Average balances:
 Loans, net of unearned
 income $2,766,193 $2,757,422 $2,675,356 $2,664,601
 Earning assets 3,910,625 4,013,594 4,097,086 4,031,622
 Total assets 4,433,015 4,505,873 4,590,218 4,530,056
 Core deposits 3,261,830 3,325,884 3,352,211 3,355,223
 Total deposits 3,560,850 3,560,208 3,560,085 3,585,772
 Long-term debt 61,918 60,282 59,963 59,630
 Shareholders' equity 240,026 275,782 287,174 311,627
 Weighted average common
 shares outstanding 34,892,377 39,479,248 40,345,840 41,346,312
 Year end 1993 YTD 1993 vs.
 12/31/92 1st qtr. YTD 1992
 Average balances:
 Loans, net of unearned
 income $2,715,642 $2,632,107 (5)
 Earning assets 4,013,512 3,895,926 (0)
 Total assets 4,515,038 4,380,434 (1)
 Core deposits 3,323,950 3,258,280 (0)
 Total deposits 3,566,762 3,500,476 (2)
 Long-term debt 60,496 59,168 (4)
 Shareholders' equity 278,768 338,634 41
 Weighted average common
 shares outstanding 38,407,496 42,397,566 22
 1992
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Key performance ratios:
 Return on avg. assets 0.06 pct. 0.14 pct. 0.44 pct. 1.84 pct.
 Return on avg. shareholders'
 equity 1.12 2.28 7.00 26.81
 Net interest margin,
 taxable equivalent 4.01 4.25 4.23 4.52
 Allowance for loan losses/
 total loans 3.17 3.00 2.99 2.82
 Shareholders' equity/
 total assets 5.33 6.10 6.19 7.29
 Year end 1993 YTD 1993 vs.
 12/31/92 1st qtr. YTD 1992
 Key performance ratios:
 Return on avg. assets 0.63 pct. 1.23 pct. 1.17 pct.
 Return on avg. shareholders'
 equity 10.15 15.85 14.73
 Net interest margin,
 taxable equivalent 4.25 4.96 0.95
 Allowance for loan losses/
 total loans 2.82 2.97 (0.20)
 Shareholders' equity/
 total assets 7.29 8.16 2.83
 BANK SOUTH CORPORATION AND SUBSIDIARIES
 Loan Quality Analysis
 (Dollars in thousands)
 1992
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 83,258 $ 87,975 $ 82,271 $ 80,740
 Provision for loan losses 9,000 8,000 7,000 7,000
 Net loan charge-offs (4,283) (13,704) (8,531) (12,415)
 Adjustment for sale of
 branch --- --- --- (267)
 Ending balance $ 87,975 $ 82,271 $ 80,740 $ 75,058
 Non-Performing Assets
 Non-accrual loans $106,683 $ 87,916 $ 91,224 $ 61,412
 Renegotiated loans 2,340 2,261 1,395 7,630
 Other real estate owned 66,079 61,276 48,925 35,683
 Other non-performing assets 3,646 3,646 2,646 2,646
 Total non-performing
 assets $178,748 $155,099 $144,190 $107,371
 Loans 90 days or more past
 due on accrual status $ 10,321 $ 7,065 $ 2,367 $ 4,402
 Year-end 1993
 12/31/92 1st qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 83,258 $ 75,058
 Provision for loan losses 31,000 6,000
 Net loan charge-offs (38,933) (2,760)
 Adjustment for sale of
 branch (267) 0
 Ending balance $ 75,058 $ 78,298
 Non-Performing Assets
 Non-accrual loans $ 61,412 $ 55,278
 Renegotiated loans 7,630 1,245
 Other real estate owned 35,683 32,500
 Other non-performing assets 2,646 2,531
 Total non-performing
 assets $107,371 $ 91,554
 Loans 90 days or more past
 due on accrual status $ 4,402 $ 1,790
 1992
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 3.17 pct. 3.00 pct. 2.99 pct. 2.82 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 80.69 pct. 91.23 pct. 87.17 pct.108.71 pct.
 Net loan charge-offs as
 a percent of average
 loans outst. during
 period (annualized) 0.62 pct. 2.00 pct. 1.27 pct. 1.85 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned &
 other non-performing assets
 at end of period 6.28 pct. 5.52 pct. 5.24 pct. 3.98 pct.
 Loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other non-
 performing assets at end of
 period 0.36 pct. 0.25 pct. 0.09 pct. 0.17 pct.
 Non-performing assets &
 loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other non-
 performing assets at end of
 period 6.64 pct. 5.77 pct. 5.33 pct. 4.15 pct.
 Year end 1993
 12/31/92 1st qtr.
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 2.82 pct. 2.97 pct.
 Allowance for loan losses as
 a percent of non-performing loans
 at end of period 108.71 pct.138.52 pct.
 Net loan charge-offs as
 a percent of average
 loans outst. during
 period (annualized) 1.43 pct. 0.43 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned &
 other non-performing assets
 at end of period 3.98 pct. 3.43 pct.
 Loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other non-
 performing assets at end of
 period 0.17 pct. 0.07 pct.
 Non-performing assets &
 loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other non-
 performing assets at end of
 period 4.15 pct. 3.50 pct.
 -0- 4/15/93
 /CONTACT: Media: Bo Spalding, 404-529-4238, or Investors: Brent Lee, 404-529-4529, both of Bank South/
 (BKSO)


CO: Bank South Corporation ST: Georgia IN: FIN SU: ERN

BR-BN -- AT010 -- 6198 04/15/93 11:36 EDT
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