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BANK SOUTH EARNS $14.2 MILLION IN SECOND QUARTER

    ATLANTA, July 15 /PRNewswire/ -- Bank South (NASDAQ-NMS: BKSO) announced today net income for the second quarter of 1993 of $14.2 million, or 32 cents per share.
    This compares to $1.6 million, or 4 cents per share for the same period of 1992.  Year-to-date, net income totals $27.4 million, or 63 cents per share, compared to $2.2 million, or 6 cents per share, during the first half of 1992.
    Return on average assets and return on average equity for the quarter were 1.28 percent and 15.58 percent, respectively.
    "Our performance in the second quarter was driven by core earnings, which have been restored as we have dramatically improved loan quality," said Patrick L. Flinn, chairman and chief executive office.?  "Our results also show that we are making progress toward increasing the contributions of our consumer franchise to the overall success of the organization."
    Among evidence of improved performance in Bank South's consumer business, installment loans increased 12 percent in the second quarter of 1993 compared to the same period of 1992.  Checking and savings accounts grew 15 percent.  Non-interest income excluding securities gains was up 23 percent.
    Loan quality improved for the seventh consecutive quarter.  Non- performing assets totaled $80.4 million at the end of the second quarter compared to $155.1 million a year earlier, a decrease of 48 percent. Non-performing assets represented 3.01 percent of total loans and other real estate owned (OREO) at the end of the second quarter compared to 5.52 percent at June 30, 1992.  At their peak in September of 1991, non- performing assets represented 8.06 percent of total loans and OREO.
    Net interest income (taxable equivalent) for the second quarter totaled $51.1 million, 20 percent higher than the same period of 1992. The net interest margin for the second quarter was 5.15 percent, compared to 4.25 percent for the same quarter of 1992.  The increase in the net interest margin reflects substantial growth in the volume of transaction account deposits, an increase in off balance sheet investment activities, and declining levels of non-performing assets.
    Net charge-offs for the second quarter were $3.2 million compared to $13.7 million in the second quarter of 1992.  On June 30, the allowance for loan losses stood at 3.05 percent of total loans, and 160.25 percent of non-performing loans.
    Book value per share was $8.57 at quarter-end, compared to $7.01 a year earlier.  Shareholders' equity as a percentage of total assets increased to 8.20 percent at the end of the quarter, compared to 6.10 percent at the end of second quarter of 1992.
    Among other highlights of the second quarter:
    -- Bank South and Barnett Banks announced definitive agreements
       whereby Bank South will acquire Barnett's banks in metro Atlanta,
       and Barnett will acquire Bank South's banks in Pensacola, Fla.
       Bank South will become number two in deposit market share in Cobb
       County, Ga., and will be first in deposit market share in Fayette
       County, Ga.  Cobb And Fayette rank second and first respectively
       in median income in Georgia.  The transaction is expected to be
       completed in October.
    -- Bank South launched "Trade In Your Bank III," a consumer
       marketing campaign patterned after last year's highly successful
       effort.  The campaign offers up to 12 months checking with no
       monthly service charge, free first order of checks, special
       offers on new savings/money market accounts and certificates of
       deposit, low rates of installment loans and no application fee,
       $25 minimum gift with $5,000 new booked installment loans, and no
       annual fee on a Bank South debit card.
    -- Bank South also launched a bold new television advertising
       campaign that utilizes animatronics technology to emphasize the
       advantages of doing business with Georgia-based Bank South rather
       than out-of-state banks.  The new television advertising
       complements "tastefully aggressive" radio and print ads which
       remind Georgians that Bank South is the hometown bank and is
       totally focused on the customer.  By comparison, nearly all of
       Bank South's large competitors are based in other states and are
       focused on managing and expanding widespread interstate banking
       systems.
    -- The Atlanta Chamber of Commerce awarded its 1993 Partnership of
       the Year Award to Bank South for its innovative programs with
       Charles L. Gideons Elementary School in southwest Atlanta.  Bank
       South volunteers teach "Econ and Me" to the schoolchildren, among
       many other activities.
    -- Bank South celebrated the grand opening of its first two-story
       InStore office.  The full-service facility is located inside the
       new Saddlebrook Kroger store in Alpharetta, and offers all
       banking services seven days a week until 8 p.m.  Bank South now
       has 47 InStore branches, 84 traditional branches, 266 automated
       teller machines, and a TeleServices system that allows customers
       to open accounts and apply for loans by telephone seven days a
       week from 6 a.m. until 10 p.m.
    Bank South Corporation is a $4.6 billion, multi-bank holding company with 131 offices throughout metro Atlanta and Pensacola.
                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
                              12/31/92      1st qtr.     2nd qtr.
       For the period:
    Net interest income,
     taxable equivalent       $170,743      $47,645      $51,069
    Net interest income        167,859       46,774       50,123
    Provision for loan losses   31,000        6,000        5,500
    Other income                88,944       22,668       25,994
    Realized/unrealized gains/
     losses on securities       32,144        3,844        1,055
    Other real estate expense   15,384           31          943
    Other expense              207,872       51,785       51,986
    Income tax exp. (benefit)    6,402        2,233        4,532
    Net income (loss)         $ 28,289      $13,237      $14,211
                                           YTD         2nd qtr 93 vs.
                                         6/30/93        2nd qtr. 92
       For the period:                                    (pct.)
    Net interest income,
     taxable equivalent                  $98,714            20
    Net interest income                   96,897            20
    Provision for loan losses             11,500           (31)
    Other income                          48,662            23
    Realized/unrealized gains/
     losses on securities                  4,899         1,202
    Other real estate expense                974           (79)
    Other expense                        103,771             7
    Income tax exp. (benefit)              6,765         1,290
    Net income (loss)                   $ 27,448           809
                                                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
                              12/31/92     1st qtr.     2nd qtr.
       Per common share:
    Net income (loss)          $  0.74     $  0.31      $ 0.32
    Cash dividends declared       0.00        0.04        0.04
    Book value                    7.79        8.17        8.57
       Common stock price:
    High                       $ 12.88     $ 14.75      $14.00
    Low                           5.63       11.63       11.25
    Quarter end                  11.75       13.63       12.88
                                             YTD       2nd qtr 93 vs.
                                           6/30/93      2nd qtr. 92
       Per common share:                                  (pct.)
    Net income (loss)                     $ 0.63           714
    Cash dividends declared                 0.08           100
    Book value                              8.57            22
       Common stock price:
    High                                  $14.75            18
    Low                                    11.25            29
    Quarter end                            12.88            18
                                                 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
                              12/31/92     1st qtr.      2nd qtr.
       Quarter end balances:
    Loans, net of unearned
     income                 $2,658,218    $2,634,294   $2,644,957
    Earning assets           3,916,388     3,811,258    4,112,488
    Total assets             4,464,459     4,310,220    4,630,088
    Core deposits            3,418,527     3,261,810    3,310,331
    Total deposits           3,632,429     3,505,269    3,577,644
    Long-term debt              59,600        59,120       58,748
    Shareholders' equity       325,520       351,845      379,865
    Common shares outst.    41,804,901    43,047,133   44,334,564
                                           YTD         2nd qtr 93 vs.
                                         6/30/93        2nd qtr. 92
       Quarter end balances:                              (pct.)
    Loans net of unearned
     income                            $2,644,957           (4)
    Earning assets                      4,112,488            1
    Total assets                        4,630,088            1
    Core deposits                       3,310,331           (2)
    Total deposits                      3,577,644          ---
    Long-term debt                         58,748           (3)
    Shareholders' equity                  379,865           35
    Common shares outstanding          44,334,564           11
                                                 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  3,325,883  3,352,211  3,355,223
    Total deposits           3,560,850  3,560,207  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
                              12/31/92      1st qtr.     2nd qtr.
       Average balances:
    Loans, net of unearned
     income                 $2,715,642    $2,632,107   $2,640,997
    Earning assets           4,013,512     3,895,926    3,977,328
    Total assets             4,515,038     4,380,434    4,467,734
    Core deposits            3,323,950     3,258,280    3,269,117
    Total deposits           3,566,762     3,500,476    3,522,309
    Long-term debt              60,496        59,168       58,850
    Shareholders' equity       278,768       338,634      365,891
    Weighted average common
     shares outstanding     38,407,496    42,860,342   44,116,004
                                          YTD          2nd qtr 93 vs.
                                         6/30/93        2nd qtr. 92
       Average balances:                                  (pct.)
    Loans, net of unearned
     income                            $2,636,577           (4)
    Earning assets                      3,936,852           (1)
    Total assets                        4,424,325           (1)
    Core deposits                       3,263,729           (2)
    Total deposits                      3,514,885           (1)
    Long-term debt                         59,011           (2)
    Shareholders' equity                  352,338           33
    Weighted average common
     shares outstanding                43,485,596           12
                                               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
                              12/31/92      1st qtr.     2nd qtr.
       Key performance ratios:
    Return on avg. assets     0.63 pct.     1.23 pct.     1.28 pct.
    Return on avg. shareholders'
     equity                  10.15         15.85         15.58
    Net interest margin,
     taxable equivalent       4.25          4.96          5.15
    Allowance for loan losses/
     total loans              2.82          2.97          3.05
    Shareholders' equity/
     total assets             7.29          8.16          8.20
                                           YTD         2nd qtr 93 vs.
                                         6/30/93        2nd qtr. 92
       Key performance ratios:                            (pct.)
    Return on avg. assets                 1.25  pct.       1.14
    Return on avg. shareholders'
     equity                              15.71            13.30
    Net interest margin,
     taxable equivalent                   5.06             0.90
    Allowance for loan losses/
     total loans                          3.05             0.05
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Copyright 1993 Gale, Cengage Learning. All rights reserved.

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Date:Jul 15, 1993
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