Printer Friendly

CENTURA BANKS INC. REPORTS 1991 EARNINGS

 CENTURA BANKS INC. REPORTS 1991 EARNINGS
 ROCKY MOUNT, N.C., Jan. 17 /PRNewswire/ -- Centura Banks Inc.


(NYSE: CBC) today reported net income for 1991 of $8.8 million compared to $16.7 million in 1990. Fully-diluted earnings per share were 62 cents compared to $1.18 one year ago.
 These earnings reflect the corporation's strategy during 1991 to strengthen its loan loss reserve and write off expenses remaining from the Centura merger.
 "The actions we took with our loan loss provision and merger-related expenses in 1991 strengthened our balance sheet," said J. Richard Futrell Jr., chairman and chief executive officer of Centura. "We are taking a long-term approach that puts Centura in a position for solid earnings growth in 1992 and beyond."
 For the fourth quarter, there was a net loss of $882,000 compared to a net loss of $1.16 million for the same period last year. The fully-diluted earnings per share loss was 6 cents compared to a loss of 9 cents per share one year ago.
 In response to a continued weak economy, Centura increased its loan loss reserves $6.4 million in 1991 to $26.4 million and focused on identifying and charging off problem loans. An additional provision of $1.5 million was created for possible losses on foreclosed property. Net charge-offs for the year were .90 percent of average loans, and nonperforming assets at year-end were 1.66 percent of total assets.
 "We have made much progress in dealing with our special assets during the past year and believe we have an adequate loan loss reserve in the current economy," said Robert R. Mauldin, president and chief operating officer. "Our asset quality remains one of our highest priorities and our ratios compare favorably with other banks our size in the nation."
 Expenses related to the merger forming Centura one year ago were significantly higher than originally estimated, although they are consistent with expenses of other bank mergers of equals announced in 1991. For the year, the corporation wrote off $6.8 million in nonrecurring expenses for items such as unused bank facilities, severance pay and equipment rendered obsolete by overlaps from the merger.
 "While these one-time factors hurt our performance, core earnings indicate that the Centura merger is paying off," Futrell said. "Noninterest expenses such as personnel, occupancy and equipment are down, and we have maintained our net interest margin during a declining rate environment."
 Centura's capital position is strong, as capital ratios exceed all regulatory guidelines. Average equity to average assets for 1991 was 6.97 percent.
 Centura Banks Inc., including its subsidiaries Centura Bank and Mid-South Bank in Sanford, had total assets at year-end 1991 of $2.6 billion. Loans were $1.8 billion, and deposits were $2.3 billion. Shareholders' equity was $181 million.
 CENTURA BANKS, INC.
 FINANCIAL SUMMARY
 Three Months Ended Dec. 31
 (Dollars in thousands, except per share)
 Pct.
 FOR THE PERIOD 1991 1990 Change
 Interest income taxable
 equivalent $55,185 $64,949 (15.0)
 Interest expense 27,676 36,998 25.2
 Net interest income,
 taxable equivalent 27,509 27,951 (1.6)
 Taxable equivalent adjustment 1,687 1,507 11.9
 Net interest income 25,822 26,444 (2.4)
 Provision for loan losses 8,401 4,578 83.5
 Securities transactions (37) (260) 85.8
 Noninterest income 7,048 12,212 (42.3)
 Noninterest expense 26,079 36,111 (27.8)
 Net income (882) (1,156) 23.7
 Cash dividends paid 2,177 2,096 3.9
 PER COMMON SHARE
 Net income
 Primary $ (0.06) $ (0.09) 33.3
 Fully diluted (0.06) (0.09) 33.3
 Book value 12.24 12.38 (1.1)
 Closing market price 12.75 12.75 0.0
 AVERAGE BALANCES
 Assets $ 2,509,365 $ 2,608,325 (3.8)
 Earning Assets 2,287,199 2,343,107 (2.4)
 Loans 1,748,784 1,830,154 (4.4)
 Investment securities 509,426 489,647 4.0
 Core deposits 2,092,702 2,008,231 0.1
 Total deposits 2,232,717 2,292,865 (2.6)
 Shareholders' equity $ 174,732 $ 172,470 1.3
 Common shares outstanding:
 Primary 14,084,161 13,986,566 0.7
 Fully diluted 14,084,161 13,986,566 0.7
 PERIOD END BALANCES
 Assets $ 2,611,339 $ 2,602,820 0.3
 Earning assets 2,356,496 2,321,768 1.5
 Loans 1,798,492 1,797,858 0.0
 Investment securities 529,761 503,870 5.2
 Core deposits 2,092,623 2,004,836 4.4
 Total deposits 2,317,096 2,303,322 0.6
 Shareholders' equity $ 181,395 $ 173,155 4.8
 Common shares outstanding 14,815,966 13,986,639 5.9
 ASSET QUALITY
 Net charge-offs $7,736 $ 4,758 62.6
 Loans 90 days past due 5,383 11,108 (51.5)
 Allowance for loan losses 26,405 20,076 31.5
 Nonperforming assets 43,241 20,892 107.0
 Net charge-offs to average
 loans outstanding 1.76pct. 1.03pct.
 Allowance for loan losses to
 loans outstanding at end
 of period 1.47 1.12
 Nonperforming assets to:
 Loans and foreclosed property 2.37 1.15
 Total assets 1.66 0.80
 FINANCIAL RATIOS
 Return on average assets (0.14)pct (0.18)pct
 Return on average
 shareholders' equity (2.00) (2.66)
 Average equity to
 average assets 6.96 6.61
 Net interest margin 4.73 4.70
 For the Year Ended December 31,
 (Dollars in thousands, except per share)
 Pct.
 FOR THE PERIOD 1991 1990 Change
 Interest income taxable
 equivalent $234,853 $262,695 (10.6)
 Interest expense 123,564 148,481 (16.8)
 Net interest income,
 taxable equivalent 111,289 114,214 (2.6)
 Taxable equivalent adjustment 6,645 6,133 8.3
 Net interest income 104,644 108,081 (3.2)
 Provision for loan losses 20,836 9,967 109.1
 Securities transactions (40) 82 (148.8)
 Noninterest income 29,072 35,590 (18.3)
 Noninterest expense 101,412 109,228 (7.2)
 Net income 8,774 16,679 (47.4)
 Cash dividends paid 8,480 8,246 2.8
 PER COMMON SHARE
 Net income
 Primary $ 0.62 $ 1.19 (47.9)
 Fully diluted 0.62 1.18 (47.5)
 Book value 12.24 12.38 (1.1)
 Closing market price 12.75 12.75 0.0
 AVERAGE BALANCES
 Assets $ 2,531,668 $ 2,611,564 (3.1)
 Earning Assets 2,300,567 2,358,901 (2.5)
 Loans 1,783,867 1,844,740 (3.3)
 Investment securities 502,776 502,589 0.0
 Core deposits 1,978,794 1,993,659 (0.7)
 Total deposits 2,226,195 2,264,341 (1.7)
 Shareholders' equity $ 176,545 $ 170,789 3.4
 Common shares outstanding
 Primary 14,076,992 13,993,702 0.6
 Fully diluted 14,076,992 14,840,268 (5.1)
 PERIOD END BALANCES
 Assets $2,611,339 $2,602,820 0.3
 Earning assets 2,356,496 2,321,768 1.5
 Loans 1,795,492 1,797,858 0.0
 Investment securities 529,760 503,670 5.2
 Core deposits 2,092,623 2,004,836 4.4
 Total deposits 2,317,096 2,303,322 0.6
 Shareholders' equity $181,395 $173,155 4.8
 Common shares outstanding 14,815,966 13,986,639 5.9
 ASSET QUALITY
 Net charge-offs $16,123 $9,000 79.1
 Loans 90 days past due 5,383 11,108 (51.5)
 Allowance for loan losses 26,405 20,076 31.5
 Nonperforming assets 43,241 20,892 107.0
 Net charge-offs to average
 loans outstanding 0.90pct. 0.49pct.
 Allowance for loan losses to
 loans outstanding at end
 of period 1.47 1.12
 Nonperforming assets to:
 Loans and foreclosed property 2.37 1.15
 Total assets 1.66 0.80
 FINANCIAL RATIOS
 Return on average assets 0.35 0.64
 Return on average
 shareholders' equity 4.97 9.77
 Average equity to
 average assets 6.97 6.54
 Interest margin 4.84 4.84
 -0- 1/17/92
 /CONTACT: Frank L. Pattillo, Chief Financial Officer, Centura Banks Inc., 919-977-8341/
 (CBC) CO: Centura Banks Inc. ST: North Carolina IN: FIN SU: ERN


CM-DF -- CH005 -- 1064 01/17/92 14:58 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jan 17, 1992
Words:1372
Previous Article:NORTHRIM BANK PROFITABLE IN FOURTH QUARTER
Next Article:CITIZENS BANKING REPORTS FULL-YEAR EARNINGS, DIVIDEND DECLARATION
Topics:


Related Articles
CENTURA REPORTS COMPLETION OF STOCK OFFERING
CENTURA BANKS INC. COMPLETES MERGER WITH CITIZENS FEDERAL
CENTURA BANKS INC. DECLARES THIRD QUARTER CASH DIVIDEND
CENTURA TO REDEEM CONVERTIBLE SUBORDINATED DEBENTURES
CENTURA EXPANDS WESTERN NORTH CAROLINA MARKET SHARE
Centura to Acquire Pee Dee State Bank
Centura Banks Inc. Reports 20% Increase in 2nd Quarter Earnings
Centura Banks Inc. Lowers 2nd Quarter, Full-Year Outlook; Interest Rate Environment, Slowing Economy Cited for Revision.
Centura Banks Inc. Reports Second Quarter Earnings of $0.72 Per Diluted Share, Before Merger-Related and Other Significant Charges.
RBC Centura More Than Doubles ATM Network With Publix Alliance; Customers enjoy convenience from network of more than 1,000 ATMs.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters