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BANK SOUTH EARNS $14.9 MILLION IN THIRD QUARTER

 ATLANTA, Oct. 21 /PRNewswire/ -- Bank South (NASDAQ: BKSO) announced today net income for the third quarter of 1993 of $14.9 million, or 33 cents per share.
 This compares to $5.1 million, or 13 cents per share for the same period of 1992. Year-to-date, net income totals $42.4 million, or 96 cents per share, compared to $7.3 million, or 19 cents per share, during the same period of 1992.
 Return on average assets and return on average equity for the quarter were 1.25 percent and 15.00 percent, respectively.
 "Our performance in the third quarter continued to be fueled by the rapid growth of our consumer franchise," said Patrick L. Flinn, chairman and chief executive officer. "Asset quality continues to show dramatic improvement, and we're seeing a gradual pick-up in small business and corporate lending as the economy improves."
 Among evidence of improved performance in Bank South's consumer business, consumer loans increased 18 percent in the third quarter of 1993 compared to the same period of 1992. Checking, NOW and savings accounts grew 19 percent. Non-interest income excluding securities gains was up 10 percent, reflecting the rapid growth in consumer transaction accounts. Non-interest expense continued to decline as credit quality improved.
 Loan quality improved for the eighth consecutive quarter. Non- performing assets totaled $61.3 million at the end of the third quarter compared to $144.2 million a year earlier, a decrease of 57 percent. Non-performing assets represented 2.20 percent of total loans and other real estate owned (OREO) at the end of the third quarter compared to 5.24 percent at Sept. 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 third quarter totaled $51.3 million, 18 percent higher than the same period of 1992. The net interest margin for the third quarter was 4.82 percent, compared to 4.23 percent for the same quarter of 1992. The increase in the net interest margin reflects substantial growth in the volume of transaction account deposits, combined with lower consumer interest rates, an increase in off balance sheet investment activities, and declining levels of non-performing assets.
 Net charge-offs for this quarter were $2.8 million compared to $8.5 million in the same quarter of 1992. On Sept. 30, the allowance for loan losses stood at 2.98 percent of total loans, and 181 percent of non-performing loans.
 Book value per share was $8.98 at quarter-end, compared to $7.20 a year earlier. Shareholders' equity as a percentage of total assets increased to 8.06 percent at the end of the quarter, compared to 6.19 percent at the end of the third quarter of 1992.
 Among other highlights of the third quarter:
 --- Bank South announced a definitive agreement with Chattahoochee Bancorp, Inc. (NASDAQ-NMS: CHBC) to merge the two companies, subject to the approval of Chattahoochee's shareholders and regulatory authorities. The Chattahoochee Bank
has $250.8 million in assets and six offices in metro Atlanta. Chattahoochee specializes in small business lending,


SBA lending and Private Banking, which are also areas of focus for Bank South.
 -- Bank South also announced a definitive agreement to merge with The Merchant Bank, pending the approval of Merchant's shareholders and regulatory authorities. The Merchant Bank is a full-service community bank with $141 million in assets and 10 offices in metro Atlanta.
 -- Bank South extended its hugely successful "Trade In Your Bank III" consumer marketing campaign until year-end. 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 on 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 and Reliance Trust Company formed an alliance to manage corporate trust services for Bank South's clients. Reliance will provide certain operational and systems support, technical and administrative guidance, and sales and marketing support to Bank South for its corporate and municipal bond business. The only independent trust company in Georgia, Reliance conducts business in all 50 states and offers a full array of investment and financial services for individuals, corporations, institutions, governmental units, as well as other banks.
 Bank South announced in April a proposed transaction with Barnett Banks whereby Bank South will acquire Barnett's banks in metro Atlanta, and Barnett will acquire Bank South's bank in Pensacola, Fla. Tentatively, this transaction is expected to close in December, pending receipt of regulatory approval.
 Bank South Corporation is a $5.1 billion, multi-bank holding company with 131 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 20,936 20,931 23,219 23,016
 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 49,867 48,304 52,649 56,210
 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. 3rd qtr.
 For the period:
 Net interest income,
 taxable equivalent $170,743 $47,645 $51,069 $51,325
 Net interest income 167,859 46,774 50,123 49,896
 Provision for loan losses 31,000 6,000 5,500 4,650
 Other income 88,102 22,443 25,718 25,501
 Realized/unrealized gains/
 losses on securities 32,144 3,844 1,055 961
 Other real estate expense 15,384 31 943 374
 Other expense 207,030 51,560 51,710 53,215
 Income tax exp. (benefit) 6,402 2,233 4,532 3,213
 Net income (loss) $ 28,289 $13,237 $14,211 $14,906
 YTD 3rd qtr 93 vs.
 9/30/93 3rd qtr. 92
 For the period: (pct.)
 Net interest income,
 taxable equivalent $150,039 18
 Net interest income 146,793 16
 Provision for loan losses 16,150 (34)
 Other income 73,662 10
 Realized/unrealized gains/
 losses on securities 5,860 (36)
 Other real estate expense 1,348 (78)
 Other expense 156,485 1
 Income tax exp. (benefit) 9,978 171
 Net income (loss) $ 42,354 195
 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. 3rd qtr.
 Per common share:
 Net income (loss) $ 0.74 $ 0.31 $ 0.32 $ 0.33
 Cash dividends declared 0.00 0.04 0.04 0.08
 Book value 7.79 8.17 8.57 8.98
 Common stock price:
 High $ 12.88 $ 14.75 $14.00 $16.13
 Low 5.63 11.63 11.25 12.63
 Quarter end 11.75 13.63 12.88 15.50
 YTD 3rd qtr 93 vs.
 9/30/93 3rd qtr. 92
 Per common share: (pct.)
 Net income (loss) $ 0.96 163
 Cash dividends declared 0.16 100
 Book value 8.98 25
 Common stock price:
 High 16.13 40
 Low 11.25 37
 Quarter end 15.50 42
 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. 3rd qtr.
 Quarter end balances:
 Loans, net of unearned
 income $2,658,218 $2,634,294 $2,644,957 $2,767,252
 Earning assets 3,916,388 3,811,258 4,112,488 4,572,445
 Total assets 4,464,459 4,310,220 4,630,088 5,112,192
 Core deposits 3,418,527 3,261,810 3,310,331 3,379,658
 Total deposits 3,632,429 3,505,269 3,577,644 3,638,711
 Long-term debt 59,600 59,120 58,748 83,693
 Shareholders' equity 325,520 351,845 379,865 412,039
 Common shares outst. 41,804,901 43,047,133 44,334,564 45,893,436
 YTD 3rd qtr 93 vs.
 9/30/93 3rd qtr. 92
 Quarter end balances: (pct.)
 Loans net of unearned
 income $2,767,252 2
 Earning assets 4,572,445 6
 Total assets 5,112,192 7
 Core deposits 3,379,658 1
 Total deposits 3,368,711 2
 Long-term debt 83,693 40
 Shareholders' equity 412,039 40
 Common shares outstanding 45,893,436 12
 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. 3rd qtr.
 Average balances:
 Loans, net of unearned
 income $2,715,642 $2,632,107 $2,640,997 $2,692,853
 Earning assets 4,013,512 3,895,926 3,977,328 4,227,268
 Total assets 4,515,038 4,380,434 4,467,734 4,719,889
 Core deposits 3,323,950 3,258,280 3,269,117 3,353,025
 Total deposits 3,566,762 3,500,476 3,522,309 3,622,533
 Long-term debt 60,496 59,168 58,850 74,194
 Shareholders' equity 278,768 338,634 365,891 394,332
 Weighted average common
 shares outstanding 38,407,496 42,860,342 44,105,502 45,625,358
 YTD 3rd qtr 93 vs.
 9/30/93 3rd qtr. 92
 Average balances: (pct.)
 Loans, net of unearned
 income $2,655,542 1
 Earning assets 4,034,720 3
 Total assets 4,523,929 3
 Core deposits 3,293,821 ---
 Total deposits 3,553,946 2
 Long-term debt 64,110 24
 Shareholders' equity 366,490 37
 Weighted average common
 shares outstanding 44,186,299 13
 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. 3rd qtr.
 Key performance ratios:
 Return on avg. assets 0.63 pct. 1.23 pct. 1.28 pct. 1.25 pct.
 Return on avg. shareholders'
 equity 10.15 15.85 15.58 15.00
 Net interest margin,
 taxable equivalent 4.25 4.96 5.15 4.82
 Allowance for loan losses/
 total loans 2.82 2.97 3.05 2.98
 Shareholders' equity/
 total assets 7.29 8.16 8.20 8.06
 YTD 3rd qtr 93 vs.
 9/30/93 3rd qtr. 92
 Key performance ratios: (pct.)
 Return on avg. assets 1.25 pct. 0.81
 Return on avg. shareholders'
 equity 15.45 8.00
 Net interest margin,
 taxable equivalent 4.97 0.59
 Allowance for loan losses/
 total loans 2.98 (0.01)
 Shareholders' equity/
 total assets 8.06 1.87
 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. 2nd qtr. 3rd qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 83,258 $ 75,058 $ 78,298 $ 80,637
 Provision for loan losses 31,000 6,000 5,500 4,650
 Net loan charge-offs (38,933) (2,760) (3,161) (2,757)
 Adjustment for sale of
 branch (267) --- --- ---
 Ending balance $ 75,058 $ 78,298 $ 80,637 $ 82,530
 Non-Performing Assets
 Non-accrual loans $ 61,412 $ 55,278 $ 49,151 $ 44,435
 Renegotiated loans 7,630 1,245 1,170 1,095
 Other real estate owned 35,683 32,500 27,539 13,378
 Other non-performing assets 2,646 2,531 2,531 2,417
 Total non-performing
 assets $107,371 $ 91,554 $ 80,391 $ 61,325
 Loans 90 days or more past
 due on accrual status $ 4,402 $ 1,790 $ 1,066 $ 959
 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. 0.16 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. 2nd qtr. 3rd qtr.
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 2.82 pct. 2.97 pct. 3.05 pct. 2.98 pct.
 Allow. for loan losses as a
 pct. of non-performing loans
 at end of period 108.71 pct. 138.52 pct. 160.25 pct. 181.27 pct.
 Net loan charge-offs as
 a percent of average
 loans outst. during
 period (annualized) 1.43 pct. 0.43 pct. 0.48 pct. 0.41 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. 3.01 pct. 2.20 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 0.16 pct. 0.07 pct. 0.04 pct. 0.03 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. 3.05 pct. 2.24 pct.
 -0- 10/21/93
 /CONTACT: Media: Bo Spalding, 404-529-4238, or Analysts: Brent Lee, 404-529-4529, both of Bank South/
 (BKSO)


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

CF-RA -- AT002 -- 5011 10/21/93 09:18 EDT
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