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SOUTHERN NATIONAL REPORTS 1991 EARNINGS UP 35 PERCENT; ASSET QUALITY CONTINUES IMPROVEMENT

 SOUTHERN NATIONAL REPORTS 1991 EARNINGS UP 35 PERCENT;
 ASSET QUALITY CONTINUES IMPROVEMENT
 LUMBERTON, N.C., Jan. 13 /PRNewswire/ -- Southern National Corporation (NYSE: SNB) today announced record annual earnings. Net income for 1991 was $30.8 million, a 35 percent increase over 1990 earnings of $22.9 million. On a per share basis, net income was $1.36 in 1991, compared to $1.01 for the prior year.
 Earnings for the current year were favorably impacted by continuing improvement in asset quality. The provision for loan and lease losses declined from $21.3 million in 1990 to $18.8 million in 1991. Risk assets, comprised of nonperforming assets plus loans 90 days past due and still accruing, were $44.8 million at December 31, 1991, a 17 percent improvement over the prior year-end amount of $53.8 million.
 "Our problem asset trends are moving in the right direction. This is the result of a lot of hard work by many people," said Chairman Glenn Orr. "We will remain aggressive in the resolution of our problem assets."
 Earnings for the fourth quarter were $8.5 million, or $.38 per share, compared to $4.1 million, or $.18 per share, for the same quarter last year.
 Net interest income for 1991 was $151 million, a 15 percent increase over 1990. The net yield on earning assets continued to improve, rising from 4.61 percent in 1990 to 4.87 percent in 1991. Southern National, as well as its banking and thrift subsidiaries, continued to exceed the year-end 1992, fully phased-in requirements for risk-based capital as prescribed by the various regulatory authorities.
 "Our banks and thrifts have posted record earnings in 1991," said Orr. "This has been possible as a result of the tremendous commitment of the Southern National team, which is driven to provide our customers quality service, one customer at a time."
 Total assets at December 31, 1991 were $3.7 billion, compared to $3.3 billion at the end of 1990. Net loans and leases, at $2.4 billion, were 9 percent higher than in 1990. Deposits were $3.2 billion at December 31, 1991, a $448 million increase over the previous year-end balance of $2.8 billion. Over $200 million of this increase is attributable to the retention of deposits acquired from the Resolution Trust Corporation. Shareholders' equity totaled $235 million at December 31, 1991, compared to $215 million at the end of 1990. This represented a book value per share of $10.38, a 9 percent increase over 1990.
 Southern National operates 150 branches in 80 cities and towns in North and South Carolina.
 SOUTHERN NATIONAL CORPORATION FINANCIAL SUMMARY
 (Unaudited)
 Years Ended
 (Dollars in thousands December 31, Percent
 except per share data) 1991 1990 Change
 RESULTS OF OPERATIONS
 Interest income:
 Interest and fees on
 loans and leases $ 250,778 $ 251,914 - pct
 Interest and dividends
 on securities 70,193 69,508 1
 Interest on temporary
 investments 2,341 2,021 16
 Total interest income 323,312 323,443 -
 Interest expense:
 Interest on deposits 153,898 159,945 (4)
 Interest on short-term
 borrowings 15,618 28,102 (44)
 Interest on long-term debt 2,390 3,345 (29)
 Total interest expense 171,906 191,392 (10)
 Net interest income 151,406 132,051 15
 Provision for loan
 and lease losses 18,767 21,289 (12)
 Noninterest income:
 Service charges on
 deposit accounts 21,599 19,114 13
 Nondeposit fees and
 commissions 8,797 8,241 7
 Securities gains, net 4,368 793 451
 Other income 4,488 5,817 (23)
 Total noninterest income 39,252 33,965 16
 Noninterest expense:
 Personnel expense 63,409 59,544 6
 Occupancy and
 equipment expense 17,782 17,527 1
 Federal deposit
 insurance expense 5,881 3,273 80
 Other expense 39,792 32,538 22
 Total noninterest expense 126,864 112,882 12
 Provision for income taxes 14,248 8,978 59
 Net income $ 30,779 $ 22,867 35 pct
 PER SHARE
 Net income $ 1.36 $ 1.01 35 pct
 Weighted average
 shares outstanding 22,668,828 22,674,050
 Cash dividends $ 0.46 $ 0.42 10 pct
 PERFORMANCE RATIOS
 Return on average assets 0.88 pct 0.70 pct
 Return on average
 shareholders' equity 13.71 10.87
 Net yield on earning assets
 (fully taxable equivalent) 4.87 4.61
 SOUTHERN NATIONAL CORPORATION FINANCIAL SUMMARY
 (Unaudited)
 Three Months Ended
 (Dollars in thousands December 31, Percent
 except per share data) 1991 1990 Change
 RESULTS OF OPERATIONS
 Interest income:
 Interest and fees on
 loans and leases $ 62,474 $ 62,597 - pct
 Interest and dividends
 on securities 19,126 18,233 5
 Interest on temporary
 investments 690 604 14
 Total interest income 82,290 81,434 1
 Interest expense:
 Interest on deposits 38,652 40,801 (5)
 Interest on short-term
 borrowings 2,556 6,809 (62)
 Interest on long-term debt 509 761 (33)
 Total interest expense 41,717 48,371 (14)
 Net interest income 40,573 33,063 23
 Provision for loan
 and lease losses 4,172 7,204 (42)
 Noninterest income:
 Service charges on
 deposit accounts 5,701 4,800 19
 Nondeposit fees
 and commissions 2,195 1,923 14
 Securities gains, net 2,909 736 295
 Other income 764 1,475 (48)
 Total noninterest income 11,569 8,934 29
 Noninterest expense:
 Personnel expense 16,324 14,902 10
 Occupancy and
 equipment expense 4,568 4,540 1
 Federal deposit
 insurance expense 1,619 1,026 58
 Other expense 12,850 8,675 48
 Total noninterest expense 35,361 29,143 21
 Provision for income taxes 4,098 1,541 166
 Net income $ 8,511 $ 4,109 107
 PER SHARE
 Net income $ 0.38 $ 0.18 111 pct
 Weighted average
 shares outstanding 22,669,078 22,675,605
 Cash dividends $ 0.12 $ 0.11 9 pct
 PERFORMANCE RATIOS
 Return on average assets 0.92 pct 0.49 pct
 Return on average
 shareholders' equity 14.59 7.66
 Net yield on earning assets
 (fully taxable equivalent) 4.93 4.47
 SOUTHERN NATIONAL CORPORATION FINANCIAL SUMMARY
 (Unaudited)
 As of/For the
 Quarter Ended
 (Dollars in thousands
 except per share data) 12/31/1991 12/31/1990
 ASSET QUALITY RATIOS
 Nonaccrual loans and leases as
 percent of loans and leases 0.71 pct 1.42 pct
 Nonperforming assets as
 percent of:
 Total assets 1.14 1.44
 Loans and leases plus
 foreclosed property 1.76 2.18
 Net charge-offs as percent of
 average loans and leases 0.63 1.00
 Allowance for losses as percent
 of loans and leases 1.27 1.22
 Ratio of allowance for losses to:
 Net charge-offs 2.03 x 1.23 x
 Nonaccrual loans and leases 1.80 x 0.86 x
 END OF PERIOD
 Securities $1,011,299 $ 850,535
 Loans and leases 2,396,724 2,195,804
 Earning assets 3,436,732 3,066,350
 Total assets 3,726,701 3,342,244
 Deposits 3,220,963 2,772,513
 Short-term borrowings 213,938 292,826
 Interest-bearing liabilities 3,038,520 2,697,918
 Shareholders' equity 235,322 214,802
 NOTE: All line items referring to loans and leases
 reflect loans and leases, net of unearned income.
 -0- 1/13/92
 /CONTACT: (Media) Bob Denham, 919-671-2427, or (Analysts) K. Dwight Willoughby, 919-671-2333, both of Southern National Corporation/
 (SNB) CO: Southern National Corporaton ST: North Carolina IN: FIN SU: ERN


CM -- CH001 -- 8935 01/13/92 08:42 EST
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