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BANK SOUTH REPORTS FIRST QUARTER EARNINGS; NON-PERFORMING ASSETS CONTINUE DOWNWARD TREND

 BANK SOUTH REPORTS FIRST QUARTER EARNINGS;
 NON-PERFORMING ASSETS CONTINUE DOWNWARD TREND
 ATLANTA, April 16 /PRNewswire/ -- Bank South Corporation (NASDAQ-NMS: BKSO) announced earnings of $668,000 for the first quarter of 1992, or two cents per share, compared to $5.65 million for the first quarter of 1991, or 16 cents per share.
 For the fourth quarter of 1991, Bank South reported a loss of $7.71 million, or 22 cents per share.
 Non-performing assets declined by $36.89 million during the first quarter, or by 17 percent, to $178.75 million. From their peak of $235.74 million in the third quarter of 1991, non-performing assets have declined by $57 million, or 24 percent. At quarter-end, non- performing assets represented 6.28 percent of total loans and other real estate owned (OREO), compared to 7.59 percent at the end of the fourth quarter of 1991, and 8.06 percent at the end of the third quarter.
 "Progress on problem loans is ahead of expectations," said John E. McKinley, senior executive vice president and chief credit officer. "Non-performing assets have not yet reached acceptable levels but trends are in the right direction and we anticipate continued improvement."
 Bank South reported a provision to the loan loss reserve of $9.0 million and OREO expenses of $5.47 million in the first quarter of 1992. This compares to a provision of $5.93 million and OREO expenses of $2.01 million in the first quarter of 1991. In the fourth quarter of 1991, the provision was $13.4 million and OREO expenses were $8.0 million.
 Net loan charge-offs for the first quarter of 1992 totaled $4.28 million, compared to $8.44 million in the first quarter of 1991 and $27.18 million during the fourth quarter of 1991.
 Core deposits, which consist of checking and savings accounts and low-denomination certificates of deposit, averaged $3.3 billion for the first quarter of 1992, an increase of 5 percent compared to the first quarter of 1991. On March 31, 119 percent of loans were covered by core deposits, compared to 99 percent a year ago.
 Although the resolution of problem assets continued to be a drag on earnings in the first quarter, operating earnings before credit- related expenses improved significantly over the fourth quarter of 1991. This improvement reflects a continued focus on expense management, resulting in a 7 percent decrease in operating expenses, primarily personnel expense and professional fees. Pre-tax income before the provision for loan losses, other real estate expenses and securities gains was $9.22 million compared to $5.63 million in the fourth quarter of 1991. Securities gains of $6.07 million and $7.97 million were taken in the first quarter of 1992 and the fourth quarter of 1991, respectively.
 Stock Issuance Boosts Capital
 Also during the first quarter, Bank South announced the proposed sale of 5 million new shares of its common stock in Great Britain and continental Europe. The stock sale was completed on April 9, and proceeds are being used for general corporate purposes and the enhancement of capital ratios. On March 31, book value was $6.84 per share and shareholders' equity as a percent of total assets was 5.33 percent. Adjusted for the stock issuance, book value increases to $6.97 per share and shareholders' equity as a percent of total assets increases to 6.16 percent on a pro forma basis.
 Regulatory Update
 As the result of an examination as of June 30, 1991, Bank South signed an agreement with the Federal Reserve Bank of Atlanta on April 3. The examination covered the period from September of 1990 to June of 1991. Terms and conditions are substantially similar to those in an agreement entered into last August by Bank South, N.A. and the Office of the Comptroller of the Currency. The agreement with the Federal Reserve Bank states that "material efforts and progress to correct these problems have been made by present management at Bank South."
 Shareholder Meeting
 Patrick L. Flinn, chairman and chief executive officer of Bank South, announced these first quarter results today at the company's Annual Shareholder Meeting. In other news, shareholders elected two new members to the Bank South Corporation board of directors. The new directors are Dr. William McClatchey, president of Piedmont Internal Medicine Associates, and Julia Morgan, president and chief executive officer of Ed Morgan & Associates, an insurance company.
 John Wilson, a director for 20 years, retired from the board and joined the advisory board of directors. Among many other contributions, Wilson served as interim chief executive officer from June 19 through July 31 of 1991.
 "John Wilson served Bank South extremely well," Flinn said. "I know I can speak for the shareholders in saying that we appreciate his unselfish commitment and dedication in behalf of this organization."
 Bank South is a regional bank holding company with assets of $4.48 billion and 140 banking offices throughout Georgia and northwest Florida. Shares of Bank South common stock are traded on the NASDAQ National Market System under the symbol BKSO.
 BANK SOUTH CORP. 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
 Provison 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 Y-T-D 92 vs.
 12/31/91 1st qtr. Y-T-D 91
 For the period:
 Net interest income,
 taxable equivalent $175,467 $38,941 (16) pct.
 Net interest income 164,548 38,148 (11)
 Provison for loan losses 73,039 9,000 52
 Other income 97,898 28,583 26
 Other real estate expense 46,717 5,470 172
 Other expense 209,484 51,440 1
 Income tax exp. (benefit) (11,622) 153 (89)
 Net income (loss) $(55,172) $ 668 (88)
 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 Y-T-D 92 vs.
 12/31/91 1st qtr. Y-T-D 91
 Per common share:
 Net income (loss) $ (1.59) $ 0.02 (88)
 Cash dividends declared 0.26 0.00 (100)
 Book value 6.82 6.84 (21)
 Common stock price:
 High $ 8.00 $ 10.00 21
 Low 5.00 5.50 10
 Quarter end 5.63 8.75 21
 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 Y-T-D 92 vs.
 12/31/91 1st qtr. Y-T-D 91
 Quarter end balances:
 Loans, net of unearned
 income $2,761,167 $2,776,450 (13)
 Earning assets 3,879,562 3,914,323 (16)
 Total assets 4,444,825 4,479,182 (13)
 Core deposits 3,305,064 3,317,695 5
 Total deposits 3,634,185 3,565,677 (11)
 Long-term debt 62,452 61,829 (1)
 Shareholders' equity 237,711 238,653 (20)
 Common shares outst. 34,849,682 34,899,730 1
 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 Y-T-D 92 vs.
 12/31/91 1st qtr. Y-T-D 91
 Average balances:
 Loans, net of unearned
 income $3,025,046 $2,766,193 (14)
 Earning assets 4,376,048 3,910,625 (14)
 Total assets 4,906,834 4,433,015 (13)
 Core deposits 3 180,837 3,261,830 5
 Total deposits 3,881,282 3,560,850 (10)
 Long-term debt 62,629 61,918 (1)
 Shareholders' equity 275,921 240,026 (20)
 Weighted average common
 shares outstanding 34,653,650 34,892,377 1
 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 Y-T-D 92 vs.
 12/31/91 1st qtr. Y-T-D 91
 Key performance ratios:
 Return on avg. assets (1.12) pct. 0.06 pct. (0.39) pct.
 Return on avg. shareholders'
 equity (20.00) 1.12 (6.55)
 Net interest margin,
 taxable equivalent 4.01 4.01 (0.11)
 Allowance for loan losses/
 total loans 3.02 3.17 0.45
 Shareholders' equity/
 total assets 5.35 5.33 (0.47)
 BANK SOUTH CORP. 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 $129,012 $135,297 $141,964 $126,349
 Renegotiated loans 13,801 9,393 4,800 7,721
 Other real estate owned 89,566 82,149 85,325 77,924
 Other non-performing assets 0 0 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.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 89,520 $ 83,258
 Provision for loan losses 73,039 9,000
 Net loan charge-offs (79,301) (4,283)
 Ending balance $ 83,258 $ 87,975
 Non-Performing Assets
 Non-accrual loans $126,349 $101,923
 Renegotiated loans 7,721 7,100
 Other real estate owned 77,924 66,079
 Other non-performing assets 3,646 3,646
 Total non-performing
 assets $215,640 $178,748
 Loans 90 days or more past
 due on accrual status $ 12,151 $ 10,321
 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 outstanding
 during period 0.26 pct. 0.56 pct. 0.89 pct. 0.96 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.
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 3.02 pct. 3.17 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 62.10 pct. 80.69 pct.
 Net loan charge-offs as
 a percent of average
 loans outstanding
 during period 2.62 pct. 0.15 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.
 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.
 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.
 -0- 4/16/92
 /CONTACT: Media: Bo Spalding or Matt Lewis, 404-529-4238; Analysts: Brent Lee, 404-529-4529, all of Bank South/
 (BKSO) CO: Bank South Corporation ST: Georgia IN: FIN SU: ERN


BR-BN -- AT010 -- 9258 04/16/92 11:47 EDT
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