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BANK SOUTH REPORTS EARNINGS INCREASE, CONTINUED IMPROVEMENT IN CREDIT QUALITY

 BANK SOUTH REPORTS EARNINGS INCREASE,
 CONTINUED IMPROVEMENT IN CREDIT QUALITY
 ATLANTA, Oct. 15 /PRNewswire/ -- Bank South (NASDAQ: BKSO) announced today net income of $5.1 million for the third quarter of 1992, or 13 cents per share, compared to a loss of $36.8 million, or $1.06 per share for the third quarter of 1991.
 Year-to-date, Bank South has earned $7.3 million, or 19 cents per share. This compares to a loss of $47.5 million, or $1.37 per share, for the first nine months of 1991.
 At the end of the third quarter of 1992, non-performing assets totaled $144.2 million, 7 percent less than the $155.1 million reported at the end of the second quarter. Non-performing assets have declined by $91.5 million, or 39 percent, from $235.7 million in the third quarter of 1991.
 At Sept. 30, non-performing assets represented 5.24 percent of total loans and other real estate owned (OREO), compared to 5.52 percent at the end of the second quarter of 1992 and 8.06 percent at the end of the third quarter of 1991.
 Loans 90 days or more past due and on accrual status declined from $7.1 million at the end of the second quarter of 1992 to $2.4 million during the third quarter -- their lowest level since the end of 1980.
 "Significant strides have been made over the past year in improving credit quality, managing expenses, increasing capital and adding new business," said Patrick L. Flinn, chairman and chief executive officer. "There is plenty of work still to be done, but the progress is gratifying."
 Bank South reported a provision for loan losses of $7.0 million and OREO expenses of $1.7 million during the third quarter. This compared to a provision of $8.0 million and OREO expenses of $4.5 million during the second quarter. The allowance for loan losses was 2.99 percent of loans at Sept. 30.
 Net loan charge-offs for the third quarter totaled $8.5 million, compared to $13.7 million during the second quarter of 1992 and $26.2 million in the third quarter of 1991.
 Included in the third quarter results was a $4.9 million non- recurring expense to adjust the carrying value of capitalized purchased mortgage servicing rights. In addition, $1.5 million in securities gains were taken during the quarter.
 Bank South has classified $493 million in mortgage-backed securities as "held for sale," as of Sept. 30. This classification reflects the company's evaluation of the merits of continuing to hold these securities. The market value of the portfolio was in excess of $520 million at Sept. 30. This reclassification has no effect on third quarter results.
 Operating pre-tax earnings for the third quarter of 1992, excluding the loan loss provision, OREO expense and non-recurring items, totaled $18.4 million, compared to $8.9 million for the third quarter of 1991, an increase of 106 percent. Operating expense for the third quarter of 1992, excluding OREO expense and non-recurring items, declined by 6 percent compared to the same quarter of 1991.
 The net interest margin for the third quarter of 1992 was 4.23 percent, compared to 3.91 percent in the third quarter of 1991.
 Shareholders' equity as a percent of assets stood at 6.19 percent at the end of the third quarter of 1992, compared to 5.01 percent at the end of the third quarter of 1991. This increase reflects the $40 million in common equity raised overseas earlier this year, the successful introduction of the Dividend Reinvestment and Stock Purchase Plan, and the return to profitable operations.
 Through the Dividend Reinvestment and Stock Purchase Plan, shareholders can purchase Bank South shares at a 5 percent discount to market value. This plan is offered only through a prospectus. Shareholders who want more information on the plan or to obtain a prospectus should call 800-782-5936.
 Among other news during the third quarter: -- Bank South opened its 47th In-store office, located inside a Kroger store in Lawrenceville, Ga., and announced the proposed sale of two offices in Folkston and St. Marys, Ga., and of three offices in Columbus, Ga. These announcements are consistent with the bank's strategies of emphasizing markets that have strong household growth and where the company will be a leader; providing the most convenient service; and improving corporate performance through re- allocating resources. -- The company continued its successful "Trade in Your Bank" campaign which began last spring and emphasizes Bank South's convenient hours and locations, and local ownership. The bank is currently offering six months free checking to new customers, and recently introduced Select Equityline, which offers three convenient payment options for customers with a Bank South equity line of credit. The Select Equityline product is offered exclusively at Bank South. -- Bank South introduced an exclusive series of personal checks featuring images of five prominent African-American historical figures. One dollar from every order of checks sold is being donated to the United Negro College Fund. -- Bank South employees contributed $28,350 to the American Red Cross Disaster Relief Fund for victims of Hurricane Andrew. Bank South Corporation donated an additional $5,000. These contributions totaled more than half of all funds raised during an overnight Red Cross telethon on Channel 36.
 Bank South Corporation is a $4.8 billion, two-bank holding company with 138 offices throughout Georgia and northwest Florida. The company's stock is traded on the NASDAQ Exchange under the symbol BKSO.
 BANK SOUTH CORPORATION AND SUBSIDIARIES
 Selected Financial Information (Unaudited)
 (Dollars in thousands, except per share data)
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 For the period:
 Net interest income,
 taxable equivalent $46,330 $ 45,908 $ 42,819 $40,410
 Net interest income 43,081 42,713 39,979 38,775
 Provision for loan losses 5,932 19,809 33,903 13,395
 Other income 22,746 22,956 21,859 30,337
 Other real estate expense 2,011 16,409 20,302 7,995
 Other expense 50,852 49,713 53,409 55,510
 Income tax expense (benefit) 1,386 (3,949) (8,983) (76)
 Net income (loss) $ 5,646 $(16,313) $(36,793) $(7,712)
 Year end 1992
 12/31/91 1st qtr. 2nd qtr. 3rd qtr.
 For the period:
 Net interest income,
 taxable equivalent $175,467 $ 38,941 $ 42,429 $43,582
 Net interest income 164,548 38,148 41,670 42,902
 Provision for loan losses 73,039 9,000 8,000 7,000
 Other income 97,898 28,583 22,733 26,991
 Other real estate expense 46,717 5,470 4,489 1,723
 Other expense 209,484 51,440 50,025 54,931
 Income tax exp. (benefit) (11,622) 153 326 1,184
 Net income (loss) $(55,172) $ 668 $ 1,563 $ 5,055
 YTD 3rd qtr 92 vs.
 9/30/92 3rd qtr. 91
 For the period: (pct.)
 Net interest income,
 taxable equivalent $124,952 2
 Net interest income 122,720 7
 Provision for loan losses 24,000 (79)
 Other income 78,307 23
 Other real estate expense 11,682 (92)
 Other expense 156,396 3
 Income tax exp. (benefit) 1,663 (113)
 Net income (loss) $ 7,286 (114)
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Per common share:
 Net income (loss) $ 0.16 $ (0.47) $ (1.06) $ (0.22)
 Cash dividends declared 0.13 0.13 0.00 0.00
 Book value 8.69 8.07 7.04 6.82
 Common stock price:
 High $ 8.25 $ 7.75 $ 7.50 $ 6.88
 Low 5.00 5.50 5.50 5.38
 Quarter end 7.25 6.63 5.75 5.63
 Year end 1992
 12/31/91 1st qtr. 2nd qtr. 3rd qtr.
 Per common share:
 Net income (loss) $ (1.59) $ 0.02 $ 0.04 $ 0.13
 Cash dividends declared 0.26 0.00 0.00 0.00
 Book value 6.82 6.84 7.01 7.20
 Common stock price:
 High $ 8.25 $ 10.00 $11.88 11.50
 Low 5.00 5.50 8.75 9.25
 Quarter end 5.63 8.75 10.88 10.88
 YTD 3rd qtr 92 vs.
 9/30/92 3rd qtr. 91
 Per common share: (pct.)
 Net income (loss) $ 0.19 112
 Cash dividends declared 0.00 0
 Book value 7.20 2
 Common stock price:
 High $11.88 53
 Low 5.50 68
 Quarter end 10.88 89
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Quarter end balances:
 Loans, net of unearned
 income $3,197,265 $3,023,488 $2,837,491 $2,761,167
 Earning assets 4,656,235 4,372,689 4,223,500 3,879,562
 Total assets 5,167,467 4,896,430 4,886,629 4,444,825
 Core deposits 3,153,724 3,163,475 3,367,706 3,305,064
 Total deposits 4,005,021 3,898,019 3,935,602 3,634,185
 Long-term debt 62,667 62,623 62,580 62,452
 Shareholders' equity 299,677 279,802 244,778 237,711
 Common shares outst. 34,476,479 34,652,767 34,772,080 34,849,682
 Year end 1992
 12/31/91 1st qtr. 2nd qtr. 3rd qtr.
 Quarter end balances:
 Loans, net of unearned
 income $2,761,167 $2,776,450 $2,745,349 $2,701,919
 Earning assets 3,879,562 3,914,323 4,077,538 4,319,456
 Total assets 4,444,825 4,479,182 4,600,258 4,758,414
 Core deposits 3,305,064 3,317,695 3,365,979 3,338,472
 Total deposits 3,634,185 3,565,677 3,564,657 3,557,640
 Long-term debt 62,452 61,829 60,263 59,734
 Shareholders' equity 237,711 238,653 280,510 294,620
 Common shares outst. 34,849,682 34,899,730 39,989,254 40,913,947
 YTD 3rd qtr 92 vs.
 9/30/92 3rd qtr. 91
 Quarter end balances: (pct.)
 Loans net of unearned
 income $2,701,919 (5)
 Earning assets 4,319,456 2
 Total assets 4,758,414 (3)
 Core deposits 3,338,472 (1)
 Total deposits 3,557,640 (10)
 Long-term debt 59,734 (5)
 Shareholders' equity 294,620 20
 Common shares outstanding 40,913,947 18
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Average balances:
 Loans, net of unearned
 income $3,199,884 $3,123,459 $2,943,174 $2,837,905
 Earning assets 4,561,175 4,478,400 4,348,987 4,120,483
 Total assets 5,092,846 5,013,960 4,873,769 4,651,570
 Core deposits 3,106,310 3,142,736 3,212,468 3,259,322
 Total deposits 3,962,148 3,959,411 3,869,133 3,736,874
 Long-term debt 62,824 62,643 62,601 62,462
 Shareholders' equity 298,615 289,740 269,024 241,974
 Weighted average common
 shares outstanding 34,436,913 34,587,848 34,754,194 34,830,218
 Year end 1992
 12/31/91 1st qtr. 2nd qtr. 3rd qtr.
 Average balances:
 Loans, net of unearned
 income $3,025,046 $2,766,193 $2,757,422 $2,675,356
 Earning assets 4,376,048 3,910,625 4,013,594 4,097,086
 Total assets 4,906,834 4,433,015 4,505,873 4,590,218
 Core deposits 3,180,837 3,261,830 3,325,884 3,352,211
 Total deposits 3,881,282 3,560,850 3,560,208 3,560,085
 Long-term debt 62,629 61,918 60,282 59,963
 Shareholders' equity 275,921 240,026 275,782 287,174
 Weighted average common
 shares outstanding 34,653,650 34,892,377 39,479,248 40,345,840
 YTD 3rd qtr 92 vs.
 9/30/92 3rd qtr. 91
 Average balances: (pct.)
 Loans, net of unearned
 income $2,732,780 (9)
 Earning assets 4,007,429 (6)
 Total assets 4,509,996 (6)
 Core deposits 3,313,450 4
 Total deposits 3,560,380 (8)
 Long-term debt 60,785 (4)
 Shareholders' equity 267,733 7
 Weighted average common
 shares outstanding 37,837,158 16
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Key performance ratios:
 Return on avg. assets 0.45 pct. (1.31) pct. (3.00) pct.(0.66)pct.
 Return on avg. shareholders'
 equity 7.67 (22.58) (54.26) (12.64)
 Net interest margin,
 taxable equivalent 4.12 4.11 3.91 3.89
 Allowance for loan losses/
 total loans 2.72 2.96 3.42 3.02
 Shareholders' equity/
 total assets 5.80 5.71 5.01 5.35
 Year end 1992
 12/31/91 1st qtr. 2nd qtr. 3rd qtr.
 Key performance ratios:
 Return on avg. assets (1.12) pct. 0.06 pct. 0.14 pct. 0.44 pct.
 Return on avg. shareholders'
 equity (20.00) 1.12 2.28 7.00
 Net interest margin,
 taxable equivalent 4.01 4.01 4.25 4.23
 Allowance for loan losses/
 total loans 3.02 3.17 3.00 2.99
 Shareholders' equity/
 total assets 5.35 5.33 6.10 6.19
 YTD 3rd qtr 92 vs.
 9/30/92 3rd qtr. 91
 Key performance ratios: (pct.)
 Return on avg. assets 0.22 pct. 3.44
 Return on avg. shareholders'
 equity 3.64 61.26
 Net interest margin,
 taxable equivalent 4.16 0.32
 Allowance for loan losses/
 total loans 2.99 (0.43)
 Shareholders' equity/
 total assets 6.19 1.18
 BANK SOUTH CORPORATION AND SUBSIDIARIES
 Loan Quality Analysis
 (Dollars in thousands)
 1991
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 89,520 $ 87,017 $ 89,369 $ 97,038
 Provision for loan losses 5,932 19,809 33,903 13,395
 Net loan charge-offs (8,435) (17,457) (26,234) (27,175)
 Ending balance $ 87,017 $ 89,369 $ 97,038 $ 83,258
 Non-Performing Assets
 Non-accrual loans $130,962 $137,312 $145,162 $132,449
 Renegotiated loans 11,851 7,378 1,602 1,620
 Other real estate owned 89,566 82,149 85,325 77,924
 Other non-performing assets --- --- 3,646 3,646
 Total non-performing
 assets $232,379 $226,839 $235,735 $215,640
 Loans 90 days or more past
 due on accrual status $ 27,268 $ 20,268 $ 11,324 $ 12,151
 Year-end 1992
 12/31/91 1st qtr. 2nd qtr. 3rd qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 89,520 $ 83,258 $ 87,975 $ 82,271
 Provision for loan losses 73,039 9,000 8,000 7,000
 Net loan charge-offs (79,301) (4,283) (13,704) (8,531)
 Ending balance $ 83,258 $ 87,975 $ 82,271 $ 80,740
 Non-Performing Assets
 Non-accrual loans $132,449 $106,683 $ 87,916 $ 91,224
 Renegotiated loans 1,620 2,340 2,261 1,395
 Other real estate owned 77,924 66,079 61,276 48,925
 Other non-performing assets 3,646 3,646 3,646 2,646
 Total non-performing
 assets $215,640 $178,748 $155,099 $144,190
 Loans 90 days or more past
 due on accrual status $ 12,151 $ 10,321 $ 7,065 $ 2,367
 1991
 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 2.72 pct. 2.96 pct. 3.42 pct. 3.02 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 60.93 pct. 61.77 pct. 66.12 pct. 62.10 pct.
 Net loan charge-offs as
 a percent of average
 loans outst. during
 period (annualized) 1.07 pct. 2.24 pct. 3.54 pct. 3.80 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned &
 other non-performing assets
 at end of period 7.07 pct. 7.30 pct. 8.06 pct. 7.59 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 0.83 pct. 0.65 pct. 0.39 pct. 0.43 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 7.90 pct. 7.95 pct. 8.45 pct. 8.02 pct.
 Year end 1992
 12/31/91 1st qtr. 2nd qtr. 3rd qtr.
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 3.02 pct. 3.17 pct. 3.00 pct. 2.99 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 62.10 pct. 80.69 pct. 91.23 pct. 87.17 pct.
 Net loan charge-offs as
 a percent of average
 loans outst. during
 period (annualized) 2.62 pct. 0.62 pct. 2.00 pct. 1.27 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned &
 other non-performing assets
 at end of period 7.59 pct. 6.28 pct. 5.52 pct. 5.24 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 0.43 pct. 0.36 pct. 0.25 pct. 0.09 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 8.02 pct. 6.64 pct. 5.77 pct. 5.32 pct.
 -0- 10/15/92
 /CONTACT: Bo Spalding of Bank South, 404-529-4238/
 (BKSO) CO: Bank South Corporation ST: Georgia IN: FIN SU: ERN


EA-BN -- AT010 -- 0458 10/15/92 13:07 EDT
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