ROCKY MOUNT, N.C., Jan. 11 /PRNewswire/ -- Centura Banks Inc. (NYSE: CBC)
today reported record profitability for 1998, earning $96.9 million compared
to 1997 earnings of $83.1 million, an increase of 16.6 percent. On a diluted
per share basis, Centura earned $3.60 in 1998 as compared to $3.15 for the
prior year.
Net income for the fourth quarter 1998 was $25.2 million, an increase of
7.2 percent over the same period in 1997. Diluted earnings per share for the
fourth quarter 1998 were 93 cents compared to 89 cents for the fourth quarter
of 1997.
Core balance sheet growth remained strong in 1998, with loans increasing
to $5.4 billion for year-end 1998, 17.8 percent higher than 1997. Net charge-
offs for 1998 were 0.28 percent of average loans as compared with 0.25 percent
for the prior year. Year-end deposits rose 5.9 percent in 1998 to $5.7
billion, primarily in transaction and money market type products. Noninterest
income growth of 24.1 percent in 1998 was led by insurance and brokerage
commissions, and mortgage and deposit-related fees.
"We are very pleased with our 1998 results, which reflect the continuing
execution of the strategy adopted by Centura in 1993," said Cecil W. Sewell,
Centura's chairman and CEO. "Centura invested heavily between 1993 and 1997
in new technology, expanded products, and new delivery channels, and 1998
represents the first full year of leveraging that investment. The results show
that understanding our customers and providing a broad range of financial
services delivered through traditional branches, the internet, the Centura
Highway call center, and a dedicated sales force of financial service officers
translates into better service for our customers and more profitable banking
relationships."
Centura declared a cash dividend on January 11, 1999 of 29 cents per
share, payable on March 16, 1999, to shareholders of record on February 26,
1999. On January 7, 1999, Centura announced the acquisition of the Charlotte,
NC-based Capital Advisors, a privately held commercial mortgage banking
company.
In 1998 Centura opened or acquired 22 financial services offices,
including eleven full-service offices opened in Hannaford supermarkets located
in North Carolina and the Hampton Roads region of Virginia. Early in 1998,
Centura finalized the acquisition of its second insurance agency, Raleigh-
based Moore & Johnson, positioning Centura Insurance Services as one of the
largest independent insurance agencies in North Carolina. In March of 1998,
Centura finalized its acquisition of South Carolina's Pee Dee State Bank,
marking the company's strategically significant entry into the South Carolina
market.
In October 1998, Centura announced that it would acquire First Coastal
Bankshares, Inc., based in Virginia Beach, Virginia. The addition of 17 First
Coastal financial offices represents a significant expansion for Centura,
which currently operates nine financial offices in the Hampton Roads region of
Virginia.
With assets of $8.2 billion, Centura provides a complete line of banking,
investment, insurance, and trust services to individuals and businesses in
North Carolina, South Carolina, and the Hampton Roads region of Virginia.
Services are provided through 210 financial centers and over 300 ATMs; the
Centura Highway telephone banking center; Centura's Internet site; and
Quicken(R), QuickBooks(R), Microsoft(R) Money and Quicken(R) Lite (formerly
BankNow(TM)), the leading personal finance software packages.
FINANCIAL HIGHLIGHTS
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended December 31, Year Ended December 31,
1998 1997 Change 1998 1997 Change
(Dollars in thousands,
except per share data)
EARNINGS
Interest
income $ 147,732 $ 137,136 7.7% $ 575,665 $ 515,089 11.8%
Interest
expense 70,116 66,041 6.2 276,347 247,184 11.8
Net interest
income 77,616 71,095 9.2 299,318 267,905 11.7
Provision for
loan losses 4,075 3,849 5.9 15,144 13,418 12.9
Noninterest
income 35,732 32,215 10.9 136,456 109,974 24.1
Noninterest
expense 70,449 65,131 8.2 273,445 238,983 14.4
Income taxes 13,619 10,826 25.8 50,314 42,420 18.6
Net income $ 25,205 $ 23,504 7.2% $ 96,871 $ 83,058 16.6%
Net interest
income, taxable
equivalent$ 79,448 $ 73,000 8.8% $ 306,618 $ 275,632 11.2%
PER COMMON SHARE
Earnings per share
-basic $ 0.95 $ 0.91 4.4% $ 3.67 $ 3.22 14.0%
Earnings per share
-diluted 0.93 0.89 4.5 3.60 3.15 14.3
Cash dividends
paid 0.29 0.27 7.4 1.14 1.06 7.5
Book value 23.66 20.82 13.6 23.66 20.82 13.6
Closing market
price 74.3750 69.0000 7.8 74.3750 69.0000 7.8
FINANCIAL RATIOS
Return on average
assets 1.25% 1.33% (8)bp 1.28% 1.26% 2bp
Return on average
shareholders'
equity 15.98 17.53 (155) 16.30 16.28 2
Average equity
to average
assets 7.83 7.58 25 7.84 7.73 11
AVERAGE BALANCES
Assets $7,993,700 $7,016,355 13.9% $7,583,932 $6,601,084 14.9%
Earning
assets 7,291,076 6,416,636 13.6 6,907,055 6,055,606 14.1
Loans 5,168,833 4,562,210 13.3 4,932,935 4,309,064 14.5
Investment
secur-
ities 2,087,493 1,824,878 14.4 1,944,808 1,715,801 13.3
Noninterest
-bearing
deposits 888,682 783,938 13.4 837,850 717,506 16.8
Core
deposits 5,076,659 4,784,855 6.1 4,974,646 4,512,153 10.2
Total
deposits 5,586,720 5,240,681 6.6 5,479,824 4,899,453 11.8
Interest
-bearing
liabil-
ities 6,342,211 5,603,768 13.2 6,031,103 5,286,057 14.1
Shareholders'
equity 625,863 531,935 17.7 594,335 510,330 16.5
PERIOD END BALANCES
Assets $8,235,891 $7,125,430 15.6% $8,235,891 $7,125,430 15.6%
Earning
assets 7,516,835 6,458,063 16.4 7,516,835 6,458,063 16.4
Loans 5,402,984 4,586,582 17.8 5,402,984 4,586,582 17.8
Investment
secur-
ities 2,074,504 1,828,056 13.5 2,074,504 1,828,056 13.5
Noninterest
-bearing
deposits 946,872 816,475 16.0 946,872 816,475 16.0
Core
deposits 5,165,832 4,892,847 5.6 5,165,832 4,892,847 5.6
Total
deposits 5,680,692 5,364,925 5.9 5,680,692 5,364,925 5.9
Shareholders'
equity 629,843 538,336 17.0 629,843 538,336 17.0
OTHER FINANCIAL DATA
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended December 31, Year Ended December 31,
(Dollars in 1998 1997 Change 1998 1997 Change
thousands)
SHARES OUTSTANDING
Average
basic 26,587,538 25,854,971 2.8% 26,421,073 25,798,324 2.4%
Average
diluted 27,069,524 26,413,005 2.5 26,922,791 26,331,392 2.2
Outstanding at
period
end 26,618,931 25,862,375 2.9 26,618,931 25,862,375 2.9
COMPOSITION RATIOS *
Earning assets to
total
assets 91.21% 91.45% (24)bp 91.07% 91.74% (67)bp
Loans to earning
assets 70.89 71.10 (21) 71.42 71.16 26
Interest-bearing
liabilities to
earning
assets 86.99 87.33 (34) 87.32 87.29 3
Loans to total
deposits 92.52 87.05 547 90.02 87.95 207
Noninterest-bearing
deposits to total
deposits 15.91 14.96 95 15.29 14.64 65
ALLOWANCE FOR LOAN LOSSES
Beginning
balance $ 67,105 $ 62,282 7.7% $ 64,279 $ 58,715 9.5%
Provision for
loan
losses 4,075 3,849 5.9 15,144 13,418 12.9
Allowance of
acquired
financial
institutions - 723 (100.0) 2,068 3,133 (34.0)
Charge-offs (4,286) (3,898) 10.0 (17,320) (14,425) 20.1
Recoveries 627 1,323 (52.6) 3,350 3,438 (2.6)
Net charge-
offs (3,659) (2,575) 42.1 (13,970) (10,987) 27.2
Ending
balance $ 67,521 $ 64,279 5.0% $ 67,521 $ 64,279 5.0%
Net charge-offs
to average
loans 0.28% 0.22% 6 bp 0.28% 0.25% 3 bp
COMPOSITION OF RISK ASSETS
Nonperforming loans $ 29,134 $ 23,722 22.8%
Foreclosed property 3,931 4,155 (5.4)
Nonperforming assets $ 33,065 $ 27,877 18.6%
ASSET QUALITY RATIOS **
Nonperforming assets to:
Loans and foreclosed property 0.61% 0.61% - bp
Total assets 0.40 0.39 1
Nonperforming loans to total loans 0.54 0.52 2
Allowance for loan losses to total loans 1.25 1.40 (15)
Allowance for loan losses to
nonperforming loans 2.32 x 2.71 x (0.39) x
bp Change is measured as difference in basis points.
* Balance sheet amounts used in calculations are based on average
balances.
** Balance sheet amounts used in calculations are based on period end
balances.
OTHER FINANCIAL DATA, continued
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended December 31,
As a Percent of
Average Assets *
(Dollars in thousands) 1998 1997 Change 1998 1997
NONINTEREST INCOME
Service charges on
deposit accounts $13,230 $11,115 19.0% 0.66% 0.63%
Credit card and
related fees 2,187 1,922 13.8 0.11 0.11
Insurance and brokerage
commissions 4,595 3,945 16.5 0.23 0.22
Other service charges,
commissions and fees 2,691 2,245 19.9 0.13 0.13
Fees for trust services 2,404 2,007 19.8 0.12 0.11
Mortgage income 5,173 3,300 56.8 0.26 0.19
Negative goodwill
amortization 334 334 -- 0.02 0.02
Operating lease fees, net 2,034 1,391 46.2 0.10 0.08
Other noninterest income 3,060 5,855 (47.7) 0.14 0.32
Noninterest income, excluding
securities transactions 35,708 32,114 11.2 1.77 1.81
Securities gains, net 24 101 (76.2) -- 0.01
Total noninterest
income $35,732 $32,215 10.9% 1.77% 1.82%
NONINTEREST EXPENSE
Salaries and overtime $29,822 $25,523 16.8% 1.48% 1.44%
Fringe benefits and
other personnel costs 5,713 4,581 24.7 0.28 0.26
Occupancy 4,119 3,397 21.3 0.20 0.19
Equipment 5,163 5,712 (9.6) 0.26 0.32
Foreclosed real estate
losses and related
operating expense 241 386 (37.6) 0.01 0.02
Marketing 1,617 2,881 (43.9) 0.08 0.16
Fees for outsourced
services 3,588 2,331 53.9 0.18 0.13
Professional fees 2,914 4,684 (37.8) 0.14 0.27
Other administrative 2,487 2,406 3.4 0.12 0.14
FDIC insurance 328 344 (4.7) 0.02 0.02
Deposit intangible and
goodwill amortization 2,264 2,073 9.2 0.11 0.12
Office supplies, postage
and telephone 4,936 4,185 18.0 0.25 0.24
Other operating 7,257 6,628 9.5 0.37 0.37
Total noninterest
expense $70,449 $65,131 8.2% 3.50% 3.68%
OTHER PERFORMANCE RATIOS
Pretax operating
profit margin ** 35.30% 34.44% 86 bp
Efficiency ratio *** 61.16% 61.90% (74) bp
Net interest income analysis-taxable equivalent:
Selected average yields/rates:
Loans 8.82% 9.33% (51) bp
Taxable securities 6.48 6.70 (22)
Tax-exempt
securities 8.69 9.06 (37)
Short-term
investments 4.78 4.99 (21)
Interest-earning
assets 8.14 8.58 (44)
Total interest-
bearing deposits 4.08 4.38 (30)
Borrowed funds 4.75 5.32 (57)
Long-term debt 6.29 6.64 (35)
Total interest-bearing
liabilities 4.37 4.66 (29)
Interest rate
spread 3.77 3.92 (15)
Net interest
margin 4.33 4.51 (18)
Year Ended December 31,
As a Percent of
Average Assets *
(Dollars in thousands) 1998 1997 Change 1998 1997
NONINTEREST INCOME
Service charges on
deposit accounts $48,139 $40,703 18.3% 0.63% 0.62%
Credit card and
related fees 8,114 6,643 22.1 0.11 0.10
Insurance and
brokerage commissions 19,577 14,031 39.5 0.26 0.21
Other service charges,
commissions and fees 10,286 7,925 29.8 0.14 0.12
Fees for trust services 9,304 7,737 20.3 0.12 0.12
Mortgage income 17,689 11,568 52.9 0.23 0.18
Negative goodwill
amortization 1,337 1,337 -- 0.02 0.02
Operating lease fees, net 7,498 4,625 62.1 0.10 0.07
Other noninterest income 13,918 15,269 (8.9) 0.18 0.23
Noninterest income,
excluding securities
transactions 135,862 109,838 23.7 1.79 1.67
Securities gains, net 594 136 336.8 0.01 --
Total noninterest
income $136,456 $109,974 24.1% 1.80% 1.67%
NONINTEREST EXPENSE
Salaries and overtime $110,351 $92,508 19.3% 1.46% 1.40%
Fringe benefits and
other personnel costs 23,763 21,117 12.5 0.31 0.32
Occupancy 15,913 13,796 15.4 0.21 0.21
Equipment 20,874 21,632 (3.5) 0.28 0.33
Foreclosed real estate
losses and related
operating expense 1,171 1,373 (14.7) 0.02 0.02
Marketing 8,432 9,080 (7.1) 0.11 0.14
Fees for outsourced
services 13,058 8,219 58.9 0.17 0.12
Professional fees 12,750 15,914 (19.9) 0.17 0.24
Other administrative 9,487 8,555 10.9 0.13 0.13
FDIC insurance 1,369 1,304 5.0 0.02 0.02
Deposit intangible and
goodwill amortization 8,948 6,520 37.2 0.12 0.10
Office supplies,
postage and telephone 19,976 16,702 19.6 0.26 0.25
Other operating 27,353 22,263 22.9 0.35 0.34
Total noninterest
expense $273,445 $238,983 14.4% 3.61% 3.62%
OTHER PERFORMANCE RATIOS
Pretax operating
profit margin ** 34.87% 34.54% 33 bp
Efficiency ratio *** 61.72% 61.98% (26) bp
Net interest income analysis-taxable equivalent:
Selected average yields/rates:
Loans 9.13% 9.43% (30) bp
Taxable securities 6.59 6.64 (5)
Tax-exempt
securities 8.84 8.93 (9)
Short-term
investments 5.24 5.36 (12)
Interest-earning
assets 8.41 8.64 (23)
Total interest-bearing
deposits 4.27 4.40 (13)
Borrowed funds 5.10 5.30 (20)
Long-term debt 6.44 6.68 (24)
Total interest-bearing
liabilities 4.56 4.68 (12)
Interest rate
spread 3.85 3.96 (11)
Net interest
margin 4.41 4.56 (15)
bp Change is measured as difference in basis points.
* Data presented is annualized.
** Sum of income before taxes plus the taxable equivalent adjustment
divided by the sum of taxable equivalent net interest income plus
noninterest income.
*** Noninterest expense divided by sum of taxable equivalent net interest
income plus noninterest income.
QUARTERLY FINANCIAL TRENDS
CENTURA BANKS, INC. AND SUBSIDIARIES
1998 1997 4th Qtr 98
Fourth Third Second First Fourth vs.
Quarter Quarter Quarter Quarter Quarter 3rd Qtr 98
(Dollars in thousands, except per share data)
FINANCIAL SUMMARY *
Assets $7,993,700 $7,630,774 $7,530,503 $7,171,199 $7,016,355 4.8%
Earning
assets 7,291,076 6,951,132 6,839,222 6,538,033 6,416,636 4.9
Loans 5,168,833 4,991,800 4,905,005 4,659,863 4,562,210 3.5
Investment
securities 2,087,493 1,933,096 1,909,105 1,847,024 1,824,878 8.0
Total
deposits 5,586,720 5,560,743 5,439,886 5,328,216 5,240,681 0.5
Interest-bearing
liabilities 6,342,211 6,044,908 6,000,169 5,730,250 5,603,768 4.9
Shareholders'
equity 625,863 606,270 584,778 559,568 531,935 3.2
Total market capitalization
(period end)1,979,783 1,673,297 1,658,538 1,892,382 1,784,504 18.3
Net income 25,205 25,135 24,054 22,477 23,504 0.3
PROFITABILITY/PERFORMANCE SUMMARY *
Pretax operating
profit margin *** 35.30% 34.94% 34.66% 34.52% 34.44% 36bp
Efficiency ratio + 61.16 61.52 62.02 62.22 61.90 (36)
Net interest margin 4.33 4.48 4.43 4.43 4.51 (15)
Return on
average assets 1.25 1.31 1.28 1.27 1.33 (6)
Return on
average equity 15.98 16.45 16.50 16.29 17.53 (47)
Average equity to
average assets 7.83 7.95 7.77 7.80 7.58 (12)
PER SHARE SUMMARY
Earnings per
share - basic $0.95 $0.95 $0.91 $0.87 $0.91 -- %
Earnings per
share - diluted 0.93 0.93 0.89 0.85 0.89 --
Cash dividends paid 0.29 0.29 0.29 0.27 0.27 --
Book value
per share 23.66 23.28 22.22 21.62 20.82 1.6
Closing
market price 74.3750 63.0000 62.5000 71.2500 69.0000 18.1
KEY INTANGIBLE ASSETS **
Goodwill $102,858 $104,671 $105,204 $107,293 $106,108 (1.7)%
Mortgage
servicing rights 33,274 31,197 29,917 28,147 28,238 6.7
ASSET QUALITY SUMMARY **
Nonperforming
assets $33,065 $32,084 $33,418 $33,199 $27,877 3.1%
Allowance for
loan losses 67,521 67,105 66,991 66,828 64,279 0.6
Nonperforming assets
to total assets 0.40% 0.41% 0.44% 0.44% 0.39% (1)bp
Allowance for loan losses
to period end
loans 1.25 1.34 1.36 1.38 1.40 (9)
Allowance for loan
losses to average
loans 1.31 1.34 1.37 1.43 1.41 (3)
Net charge-offs to
average loans 0.28 0.31 0.28 0.25 0.22 (3)
bp Change is measured as difference in basis points.
* Balance sheet amounts are based on average balances unless otherwise
noted.
** Balance sheet amounts are based on period end balances unless
otherwise noted.
*** Sum of income before taxes plus the taxable equivalent adjustment
divided by the sum of taxable equivalent net interest income plus
noninterest income.
+ Noninterest expense divided by sum of taxable equivalent net
interest income plus noninterest income.
SOURCE Centura Banks Inc.
 back to top
Company News On-Call:
http://www.prnewswire.com/comp/870954.html or fax,
800-758-5804, ext. 870954
CONTACT:
Steven J. Goldstein, Centura Bank,
252-454-8356, sgoldstein@centura.com
|
