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BANK SOUTH REPORTS IMPROVEMENT IN NON-PERFORMING ASSETS, LOSS FOR QUARTER; FLINN ELECTED CHAIRMAN OF THE BOARD

 BANK SOUTH REPORTS IMPROVEMENT IN NON-PERFORMING ASSETS,
 LOSS FOR QUARTER; FLINN ELECTED CHAIRMAN OF THE BOARD
 ATLANTA, Jan. 16 /PRNewswire/ -- Bank South Corporation (NASDAQ: BKSO) announced today a loss for the fourth quarter of $7.71 million, or 22 cents per share, compared to net income of $7.85 million, or 23 cents per share, in the fourth quarter of 1990.
 For the full year, the company reported a loss of $55.17 million, or $1.59 per share, compared to a loss of $9.30 million, or 27 cents per share in 1990.
 The company also announced today that the board of directors elected Patrick L. Flinn chairman of the board of Bank South Corporation. Flinn also continues as president and chief executive officer, a position he has held since coming to Bank South on Aug. 1, 1991. As chairman, he succeeds Lynn H. Johnston, who has been chairman since July of 1991 and who will continue as a director and chairman of the executive committee.
 Loan Quality, Liquidity, Capital
 Among financial results, non-performing assets declined during the fourth quarter to $215.64 million, or 7.59 percent of total loans and other real estate owned (OREO), from $235.74 million, or 8.06 percent of total loans and OREO at the end of the third quarter.
 The company reported a fourth quarter provision to the loan loss reserve of $13.40 million, and expenses for other real estate owned of $8.00 million. Net loan charge-offs for the fourth quarter totaled $27.18 million, compared to $26.23 million during the third quarter.
 "Non-performing assets continue at unacceptable levels, though we did accomplish some reduction during the fourth quarter," said Flinn. "Our focus continues to be on improving credit quality, both by resolving the problems and by bringing in good new business."
 Flinn noted that the carrying value for OREO was 72 percent of fair market value at the end of the fourth quarter. This discount from market value should allow for faster disposition of properties.
 "Our liquidity continues to be strong, principally due to growth in core deposits, and our capital levels are in excess of regulatory guidelines," Flinn said.
 Core deposits, which consist of checking and savings accounts and low-denomination certificates of deposit, averaged $3.26 billion during the fourth quarter of 1991, an 8 percent increased compared to the same period of 1990. At year-end, 120 percent of loans were funded with core deposits, compared to 98 percent at the end of 1990.
 As previously disclosed, a formal agreement with the Office of the Comptroller of the Currency sets Bank South, N.A.'s minimum capital targets at 5.00 percent for leverage ratio and at 7.50 percent for the tier one risk-based capital ratio. At Dec. 31, 1991, the bank's leverage ratio was 5.11 percent, and the tier one risk-based capital ratio was 8.28 percent. A three-year capital plan for the company required by agreement with the OCC was accepted by the OCC during the quarter.
 Election of Flinn as Chairman
 Commenting on the election of Flinn as chairman of the board, outgoing Chairman Lynn Johnston said: "Since Pat Flinn became president and chief executive officer five months ago, a relationship has been built between management and the board that is productive and mutually supportive. This election underscores the board's enthusiastic support for Pat's leadership."
 Said Flinn: "Lynn Johnston has provided an invaluable service: a steady guiding hand during a challenging and sometimes difficult period of transition for this organization. The board and management are indebted to Lynn for his contributions. He can count on our calling on him often as we develop, implement and fine-tune the strategies that will make this company successful."
 Johnston is chairman and chief executive officer of GeorgiaUS Corporation, a holding company which owns Life Insurance Company of Georgia and Southland Life Insurance Company.
 Organization Streamlined, Management Team Rounded Out
 Also during the quarter, the company consolidated all of its Georgia banks into one subsidiary. Consequently, Bank South Corporation now has two banking subsidiaries: Bank South, N.A. and Citizens and Peoples National Bank of Pensacola -- compared to nine banking subsidiaries previously. The consolidation is expected to streamline the organization, increase efficiencies and productivity while also resulting in more effective use of capital. "Our goal is for Bank South to be one company with a consistent vision, mission, values and strategies, and this consolidation will help accomplish that goal," Flinn said. "By streamlining the organization and becoming more efficient, we can allocate a greater share of our resources to serving current and future customers."
 Among other recent news, Bank South has rounded out its senior management team by adding three key new members. Joining the company are George M. Boltwood as executive vice president and head of the Corporate Banking Group, Gregory N. Studdard as senior vice president and general counsel, and R. Allen Ermentrout II, as senior vice president and manager of Loan Administration for Bank South Corporation.
 Boltwood comes to Bank South from C&S/Sovran Corp. (now NationsBank) where he was senior vice president and division manger in the U.S. Banking Group. Studdard joins the company from the Federal Reserve Bank of Atlanta, where he was senior counsel. Ermentrout previously was executive vice president - Credit Administration with First Florida Banks, Inc. in Tampa, Fla.
 Bank South Corporation is an Atlanta-based, $4.45 billion, multi-bank holding company with 139 banking offices throughout Georgia and northwest Florida.
 BANK SOUTH CORP. AND SUBSIDIARIES
 Selected Financial Information (Unaudited)
 (Dollars in thousands, except per share data)
 1990
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 For the period:
 Net interest income,
 taxable equivalent $51,366 $52,640 $ 48,930 $48,879
 Net interest income 47,142 48,282 44,613 44,515
 Provison for loan losses 6,226 34,289 46,723 10,819
 Other income 18,771 20,885 24,034 26,091
 Other real estate expense 338 898 2,340 659
 Other expense 44,415 45,129 50,748 49,720
 Income tax expense (benefit) 3,406 (2,707) (10,924) 1,556
 Net income (loss) $11,528 $(8,442) $(20,240) $ 7,852
 Year end 1991
 12/31/90 1st qtr. 2nd qtr. 3rd qtr.
 For the period:
 Net interest income,
 taxable equivalent $201,815 $46,330 $45,908 $42,819
 Net interest income 184,552 43,081 42,713 39,979
 Provison for loan losses 98,057 5,932 19,809 33,903
 Other income 89,781 22,746 22,956 21,859
 Other real estate expense 4,235 2,011 16,409 20,302
 Other expense 190,012 50,852 49,713 53,409
 Income tax exp. (benefit) (8,669) 1,386 (3,949) (8,983)
 Net income (loss) $ (9,302) $ 5,646 $(16,313) $(36,793)
 1991 Year end 4th qtr 91 vs.
 4th qtr. 12/31/91 4th qtr. 90
 For the period: (pct.)
 Net interest income,
 taxable equivalent $ 40,410 $175,467 (17)
 Net interest income 38,775 164,548 (13)
 Provison for loan losses 13,395 73,039 24
 Other income 30,337 97,898 16
 Other real estate expense 7,995 46,717 1,113
 Other expense 55,510 209,484 12
 Income tax exp. (benefit) (76) (11,622) (105)
 Net income (loss) $ (7,712) $(55,172) (198)
 1990
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Per common share:
 Net income (loss) $ 0.34 $ (0.25) $ (0.59) $ 0.23
 Cash dividends declared 0.12 0.13 0.13 0.13
 Book value 9.69 9.31 8.58 8.68
 Common stock price:
 High $ 12.50 $ 11.75 $ 9.50 $ 8.88
 Low 10.13 8.75 6.50 5.50
 Quarter end 11.00 8.88 6.75 6.25
 Year end 1991
 12/31/90 1st qtr. 2nd qtr. 3rd qtr.
 Per common share:
 Net income (loss) $ (0.27) $ 0.16 $ (0.47) $ (1.06)
 Cash dividends declared 0.51 0.13 0.13 0.00
 Book value 8.68 8.69 8.07 7.04
 Common stock price:
 High $ 12.50 $ 8.00 $ 7.63 $ 7.50
 Low 5.50 5.25 5.63 5.50
 Quarter end 6.25 7.25 6.63 5.75
 1991 Year end 4th qtr 91 vs.
 4th qtr. 12/31/91 4th qtr. 90
 Per common share: (pct.)
 Net income (loss) $ (0.22) $(1.59) (196)
 Cash dividends declared 0.00 0.26 (100)
 Book value 6.82 6.82 (21)
 Common stock price:
 High $ 6.88 $ 8.25 (23)
 Low 5.38 5.00 (2)
 Quarter end 5.63 5.63 (10)
 1990
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Quarter end balances (in millions):
 Loans, net of unearned
 income $3,459 $3,475 $3,401 $3,258
 Earning assets 4,817 4,882 4,816 4,468
 Total assets 5,371 5,514 5,284 5,177
 Core deposits 2,962 3,022 2,985 3,202
 Total deposits 3,782 3,851 3,780 4,028
 Long-term debt 81 81 64 64
 Shareholders' equity 331 317 293 298
 Common shares outst.(000s) 34,136 34,064 34,154 34,293
 Year end 1991
 12/31/90 1st qtr. 2nd qtr. 3rd qtr.
 Quarter end balances:
 Loans, net of unearned
 income $3,258 $3,197 $3,023 $2,837
 Earning assets 4,468 4,656 4,373 4,224
 Total assets 5,177 5,167 4,896 4,887
 Core deposits 3,202 3,154 3,163 3,368
 Total deposits 4,028 4,005 3,898 3,936
 Long-term debt 64 63 63 63
 Shareholders' equity 298 300 280 245
 Common shares outst.(000s) 34,293 34,476 34,653 34,772
 1991 Year end 4th qtr 91 vs.
 4th qtr. 12/31/91 4th qtr. 90
 Quarter end balances: (pct.)
 Loans net of unearned
 income $2,761 $2,761 (15)
 Earning assets 3,880 3,880 (13)
 Total assets 4,445 4,445 (14)
 Core deposits 3,305 3,305 3
 Total deposits 3,634 3,634 (10)
 Long-term debt 62 62 (3)
 Shareholders' equity 238 238 (20)
 Common shares outst.(000s) 34,850 34,850 2
 1990
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Average balances (in millions)
 Loans, net of unearned
 income $3,362 $3,481 $3,434 $3,335
 Earning assets 4,634 4,795 4,847 4,711
 Total assets 5,174 5,334 5,382 5,227
 Core deposits 2,899 2,982 2,966 3,022
 Total deposits 3,719 3,842 3,818 3,832
 Long-term debt 81 81 69 64
 Shareholders' equity 327 328 311 295
 Weighted average common
 shares outstanding(000s) 34,203 34,060 34,118 34,268
 Year end 1991
 12/31/90 1st qtr. 2nd qtr. 3rd qtr.
 Average balances:
 Loans, net of unearned
 income $3,403 $3,200 $3,123 $2,943
 Earning assets 4,747 4,561 4,478 4,349
 Total assets 5,280 5,093 5,014 4,874
 Core deposits 2,968 3,106 3,143 3,212
 Total deposits 3,804 3,962 3,959 3,869
 Long-term debt 74 63 63 63
 Shareholders' equity 315 299 290 269
 Weighted average common
 shares outstanding(000s) 34,162 34,437 34,588 34,754
 1991 Year end 4th qtr 91 vs.
 4th qtr. 12/31/91 4th qtr. 90
 Average balances: (pct.)
 Loans, net of unearned
 income $2,838 $3,025 (15)
 Earning assets 4,120 4,376 (13)
 Assets 4,652 4,907 (11)
 Core deposits 3,259 3,181 8
 Total deposits 3,737 3,881 (2)
 Long-term debt 62 63 (3)
 Shareholders' equity 242 276 (18)
 Weighted average common
 shares outstanding(000s) 34,830 34,654 2
 1990
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Key performance ratios:
 Return on avg. assets 0.90 pct. (0.63) pct. (1.49) pct. 0.60 pct.
 Return on avg. shareholders'
 equity 14.31 (10.32) (25.85) 10.55
 Net interest margin,
 taxable equivalent 4.50 4.40 4.01 4.12
 Shareholders' equity/
 total assets 6.16 5.75 5.55 5.75
 Year end 1991
 12/31/90 1st qtr. 2nd qtr. 3rd qtr.
 Key performance ratios:
 Return on avg. assets (0.18)pct. 0.45 pct. (1.31)pct. (3.00)pct.
 Return on avg. shareholders'
 equity (2.95) 7.67 (22.58) (54.26)
 Net interest margin,
 taxable equivalent 4.25 4.12 4.11 3.91
 Shareholders' equity/
 total assets 5.75 5.80 5.71 5.01
 1991 Year end 4th qtr 91 vs.
 4th qtr. 12/31/91 4th qtr. 90
 Key performance ratios: (pct.)
 Return on avg. assets (0.66) pct. (1.12) pct. (1.26)
 Return on avg. shareholders'
 equity (12.64) (20.00) (23.19)
 Net interest margin,
 taxable equivalent 3.89 4.01 (0.23)
 Shareholders' equity/
 total assets 5.35 5.35 (0.40)
 BANK SOUTH CORP. AND SUBSIDIARIES
 Loan Quality Analysis
 (Dollars in thousands)
 1990
 1st qtr. 2nd qtr. 3rd qtr. 4th qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 39,024 $ 41,198 $ 57,700 $ 90,265
 Provision for loan losses 6,226 34,289 46,723 10,819
 Net loan charge-offs (4,052) (17,787) (14,158) (11,564)
 Ending balance $ 41,198 $ 57,700 $ 90,265 $ 89,520
 Non-Performing Assets
 Non-accrual loans $ 48,781 $ 70,683 $112,577 $138,436
 Renegotiated loans 10,352 4,916 4,892 2,572
 Other real estate owned 19,478 45,973 49,553 83,009
 Other non-performing assets --- --- --- ---
 Total non-performing
 assets $ 78,611 $121,572 $167,022 $224,017
 Loans 90 days or more past
 due on accrual status $ 15,171 $ 18,470 $ 18,208 $ 26,306
 Year-end 1991
 12/31/90 1st qtr. 2nd qtr. 3rd qtr.
 Analysis of Allowance for Loan Losses
 Beginning balance $ 39,024 $ 89,520 $ 87,017 $ 89,369
 Provision for loan losses 98,057 5,932 19,809 33,903
 Net loan charge-offs (47,561) (8,435) (17,457) (26,234)
 Ending balance $ 89,520 $ 87,017 $ 89,369 $ 97,038
 Non-Performing Assets
 Non-accrual loans $138,436 $129,012 $135,297 $141,964
 Renegotiated loans 2,572 13,801 9,393 4,800
 Other real estate owned 83,009 89,566 82,149 85,325
 Other nonperforming assets --- --- --- 3,646
 Total non-performing
 assets $224,017 $232,379 $226,839 $235,735
 Loans 90 days or more past
 due on accrual status $ 26,306 $ 27,268 $ 20,268 $ 11,324
 1991 Year end
 4th qtr. 12/31/91
 Analysis of Allowance for Loan Losses
 Beginning balance $ 97,038 $ 89,520
 Provision for loan losses 13,395 73,039
 Net loan charge-offs (27,175) (79,301)
 Ending balance $ 83,258 $ 83,258
 Non-Performing Assets
 Non-accrual loans $126,349 $126,349
 Renegotiated loans 7,721 7,721
 Other real estate owned 77,924 77,924
 Other nonperforming assets 3,646 3,646
 Total non-performing
 assets $215,640 $215,640
 Loans 90 days or more past
 due on accrual status $ 12,151 $ 12,151
 1990
 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 1.19 pct. 1.66 pct. 2.65 pct. 2.75 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 69.67 pct. 76.32 pct. 76.84 pct. 63.49 pct.
 Net loan charge-offs as
 a percent of average
 loans outstanding
 during period 0.12 pct. 0.51 pct. 0.42 pct. 0.35 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned
 & other nonperforming assets
 at end of period 2.26 pct. 3.45 pct. 4.84 pct. 6.71 pct.
 Loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other
 nonperforming assets
 at end of period 0.44 pct. 0.52 pct. 0.53 pct. 0.79 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 2.70 pct. 3.97 pct. 5.37 pct. 7.50 pct.
 Year end 1991
 12/31/90 1st qtr. 2nd qtr. 3rd qtr.
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 2.75 pct. 2.72 pct. 2.96 pct. 3.42 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 63.49 pct. 60.93 pct. 61.77 pct. 66.12 pct.
 Net loan charge-offs as
 a percent of average
 loans outstanding
 during period 1.40 pct. 0.26 pct. 0.56 pct. 0.89 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned
 & other nonperforming assets
 at end of period 6.71 pct. 7.07 pct. 7.30 pct. 8.06 pct.
 Loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other
 nonperforming assets
 at end of period 0.79 pct. 0.83 pct. 0.65 pct. 0.39 pct.
 Non-performing assets &
 loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other
 nonperforming assets
 at end of period 7.50 pct. 7.90 pct. 7.95 pct. 8.45 pct.
 1991 Year end
 4th qtr. 12/31/91
 Loan Quality Ratios
 Allowance for loan losses
 as a percent of total loans
 at end of period 3.02 pct. 3.02 pct.
 Allowance for loan losses
 as a percent of non-performing
 loans at end of period 62.10 pct. 62.10 pct.
 Net loan charge-offs as
 a percent of average
 loans outstanding
 during period 0.96 pct. 2.62 pct.
 Non-performing assets as
 a percent of total loans,
 other real estate owned
 & other nonperforming assets
 at end of period 7.59 pct. 7.59 pct.
 Loans 90 days or more
 past due as a percent of
 total loans, other real
 estate owned & other
 nonperforming assets
 at end of period 0.43 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
 nonperforming assets
 at end of period 8.02 pct. 8.02 pct.
 -0- 1/16/92
 /CONTACT: Media: Bo Spalding, 404-529-4238; Analysts: Brent Lee, 404-529-4529, both of Bank South/
 (BKSO) CO: Bank South Corporation ST: Georgia IN: FIN SU: ERN


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