ROCKY MOUNT, N.C., Jan. 11 /PRNewswire/ -- Centura Banks, Inc.
(NYSE: CBC) today announced fourth quarter 1999 earnings of $29.9 million, or
$1.05 per diluted share. The fourth quarter diluted earnings per share
increased 19.3 percent over the $0.88 earned in the year-ago quarter and
22.1 percent from the $0.86 earned in the third quarter of 1999.
Centura also declared a dividend of $0.32 per share for the first quarter
of 2000, payable March 15, 2000, to shareholders of record on
February 29, 2000.
The fourth quarter results produced a return on average assets of
1.32 percent and a return on average equity of 17.17 percent, compared with
third quarter 1999 ratios of 1.12 percent and 13.98 percent, respectively.
In addition, Centura's efficiency ratio declined to 56.93 percent in the
fourth quarter compared with 58.34 percent for the third quarter of 1999.
"We have been working diligently to effectively control expense growth,
and that is being reflected in our decreasing efficiency ratio," said Cecil W.
Sewell, Centura chairman and chief executive officer. "We expect this trend
to continue in the year 2000 as we finalize our in-market merger with Raleigh-
based Triangle Bancorp, Inc. and realize increased efficiencies."
"Overall, fourth quarter noninterest expense declined $5.9 million, or
7.8 percent from the third quarter, as almost every expense category declined
from the previous quarter," Sewell noted. "Approximately half of this
decline, however, was a direct result of our sale in the third quarter of CLG,
Inc., our technology equipment leasing operation, the associated expenses of
which we no longer carried in the fourth quarter.
"We also fully anticipated the associated $7.2 million decline in
noninterest income. This decline equaled about 17.4 percent, but was
principally a direct result of the third quarter sales of both CLG and our
$395 million Ginnie Mae mortgage servicing portfolio.
"Customer-focused preparations for the year 2000 resulted in some
transitory hiccups in certain financial categories as Centura, like other
financial institutions, moved to preserve liquidity to meet anticipated
customer demand for funds in the final weeks of the year," Sewell continued.
"As a result, our investment securities jumped, on average, 5.8 percent and
our net interest margin declined 9 basis points from the third quarter as
Centura relied on short-term borrowings to boost liquidity. We expect these
categories to return to normalced by a smooth transition into the new year."
When compared with the third quarter of 1999, average commercial loans
increased $80.3 million, representing an annualized rate of 9 percent, while
the retail loan portfolio grew at an annualized rate of 12.5 percent. The
leasing portfolio declined $96 million, principally due to the sale of CLG.
For the full-year 1999, Centura earned a record $109.6 million, or
$3.81 per diluted share, before expenses totaling $8.4 million related to the
merger with First Coastal Bankshares, Inc. In 1998, Centura earned
$100.3 million, or $3.50 per diluted share. Centura completed the merger with
First Coastal during the first quarter of 1999.
At December 31, 1999, nonperforming assets totaled $31.8 million,
representing 0.54 percent of total loans and foreclosed properties compared
with $41.5 million and 0.72 percent, respectively, at September 30, 1999. The
reduction in nonperforming assets is principally the result of the collection
during the fourth quarter of $7.4 million of the outstanding balance of the
loan to Pluma, Inc., an Eden, North Carolina-based manufacturer of fleece and
jersey sportswear.
"The year 2000 represents an era of convergence for Centura," Sewell
noted. "It is the beginning of a period when our strategic initiatives,
products, technologies, employees, customer relationships and insights begin
to converge into the ability to provide solutions that make a positive
difference in our customers' lives. We expect our impending merger with
Triangle to accelerate this process, providing Centura with access to
68,000 new households in key North Carolina metropolitan areas where we
already do business."
About Centura
Upon completion of the acquisition of Triangle, expected to close during
the first quarter of 2000, Centura Banks Inc. will have assets of
approximately $11 billion. Centura provides a complete line of banking,
investment, insurance, leasing and asset management services to individuals
and businesses in North Carolina, South Carolina and Virginia. Centura's
broad range of financial solutions is provided through 228 full-service
financial offices and Centura Highway, the bank's multifaceted customer access
system that includes telephone banking, an extensive ATM network, PC banking,
online bill payment and centurahighway.com, the bank's suite of Internet
products and services. Additional information may be found on Centura's Web
site at http://www.centura.com .
This press release may contain various forward-looking statements. These
forward-looking statements involve risks and uncertainties and actual results
could differ from those described. A discussion of the various factors,
including factors beyond Centura's control, that could cause Centura's actual
results to differ materially from those expressed in such forward-looking
statements is included in Centura's filings with the Securities and Exchange
Commission.
FINANCIAL HIGHLIGHTS
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended December 31, Year Ended December 31,
(Dollars in 1999 1998 Change 1999 1998 Change
thousands, except
per share data
EARNINGS
Interest income $168,540 $158,137 6.6% $646,559 $621,718 4.0%
Interest expense 82,249 76,185 8.0 307,093 303,627 1.1
Net interest
income 86,291 81,952 5.3 339,466 318,091 6.7
Provision for loan
losses 5,900 4,575 29.0 32,977 15,644 110.8
Noninterest income 34,243 36,564 (6.3) 152,693 140,521 8.7
Noninterest
expense 69,675 74,919 (7.0) 302,063 290,397 4.0
Income taxes 15,040 13,625 10.4 53,091 52,257 1.6
Net income $29,919 $25,397 17.8% $104,028 $100,314 3.7%
Net interest income,
taxable
equivalent $88,154 $83,784 5.2% $346,773 $325,391 6.6%
PER COMMON SHARE
Earnings per share
- basic $ 1.06 $ 0.90 17.8% $ 3.66 $ 3.57 2.5%
Earnings per share
- diluted 1.05 0.88 19.3 3.62 3.50 3.4
Cash dividends paid 0.32 0.29 10.3 1.25 1.14 9.6
Book value per
share 24.53 23.88 2.7 24.53 23.88 2.7
Closing market
price 44.125 74.375 (40.7) 44.125 74.375 (40.7)
FINANCIAL RATIOS
Return on average
assets 1.32% 1.18% 14bp 1.18% 1.23% (5)bp
Return on average
equity 17.17 14.97 220 14.96 15.68 (72)
Average equity to
average assets 7.71 7.86 (15) 7.89 7.82 7
AVERAGE BALANCES
Assets $8,961,713 $8,561,203 4.7% $8,821,034 $8,185,344 7.8%
Earning assets 8,213,144 7,813,496 5.1 8,072,713 7,470,742 8.1
Loans 5,890,907 5,591,347 5.4 5,869,276 5,377,042 9.2
Investment
securities 2,247,088 2,179,818 3.1 2,145,605 2,059,250 4.2
Noninterest-bearing
deposits 943,338 920,445 2.5 928,097 864,354 7.4
Core deposits 5,454,151 5,469,465 (0.3) 5,437,979 5,377,707 1.1
Total deposits 6,109,236 5,984,683 2.1 6,035,906 5,888,984 2.5
Interest-bearing
liabilities 7,201,630 6,826,099 5.5 7,067,314 6,555,650 7.8
Shareholders'
equity 691,128 673,130 2.7 695,557 639,787 8.7
PERIOD END BALANCES
Assets $9,123,248 $8,795,560 3.7% $9,123,248 $8,795,560 3.7%
Earning assets 8,372,236 8,034,316 4.2 8,372,236 8,034,316 4.2
Loans 5,979,383 5,833,670 2.5 5,979,383 5,833,670 2.5
Investment
securities 2,264,865 2,161,037 4.8 2,264,865 2,161,037 4.8
Noninterest-bearing
deposits 924,159 979,346 (5.6) 924,159 979,346 (5.6)
Core deposits 5,490,796 5,548,589 (1.0) 5,490,796 5,548,589 (1.0)
Total deposits 6,167,835 6,068,649 1.6 6,167,835 6,068,649 1.6
Shareholders'
equity 689,725 676,205 2.0 689,725 676,205 2.0
bp Change is measured as difference in basis points.
All prior period financial data has been restated for the "pooling" with
First Coastal Bankshares, Inc.
OTHER FINANCIAL DATA
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended December 31, Year Ended December 31,
(Dollars in 1999 1998 Change 1999 1998 Change
thousands
SHARES OUTSTANDING
Average basic 28,187,721 28,284,084 (0.3)% 28,397,523 28,115,907 1.0%
Average diluted 28,413,524 28,835,245 (1.5) 28,764,663 28,674,665 0.3
Outstanding at
period end 28,117,897 28,318,226 (0.7) 28,117,897 28,318,226 (0.7)
COMPOSITION RATIOS(A)
Earning assets
to total assets 91.65% 91.27% 38bp 91.52% 91.27% 25bp
Loans to earning
assets 71.73 71.56 17 72.71 71.97 74
Interest-bearing
liabilities to
earning assets 87.68 87.36 32 87.55 87.75 (20)
Loans to total
deposits 96.43 93.43 300 97.24 91.31 593
Noninterest-bearing
deposits to total
deposits 15.44 15.38 6 15.38 14.68 70
ALLOWANCE FOR LOAN LOSSES (AFLL)
Beginning balance $72,619 $71,390 1.7% $72,310 $68,576 5.4%
AFLL related to
loans sold and
subsidiary sale -- -- -- (556) -- --
Provision for loan
losses 5,900 4,575 29.0 32,977 15,644 110.8
Allowance of acquired
financial institutions -- -- -- 605 2,068 (70.7)
Charge-offs (5,806) (4,288) 35.4 (34,679) (17,358) 99.8
Recoveries 805 633 27.2 2,861 3,380 (15.4)
Net charge-offs (5,001) (3,655) 36.8 (31,818) (13,978) 127.6
Ending balance $73,518 $72,310 1.7% $73,518 $72,310 1.7%
Net charge-offs to
average loans(C) 0.34% 0.26% 8bp 0.55% 0.26% 29bp
Net charge-offs to
average loans(C)(E) 0.35 0.26 9
COMPOSITION OF RISK ASSETS
Nonperforming loans $27,824 $32,293 (13.8)%
Foreclosed property 4,012 5,812 (31.0)
Nonperforming assets $31,836 $38,105 (16.5)%
ASSET QUALITY RATIOS(D)
Nonperforming assets to:
Loans and foreclosed property(B) 0.54% 0.67% (13)bp
Total assets 0.35 0.43 (8)
Nonperforming loans to total loans(B) 0.47 0.57 (10)
Allowance for loan losses to total loans(B) 1.25 1.27 (2)
Allowance for loan losses to nonperforming loans 2.64x 2.24x 40
bp Change is measured as difference in basis points.
(A) Balance sheet amounts used in calculations are based on average
balances.
(B) Excludes mortgage loans held-for-sale of $84.1 million and $158.8
million at December 31, 1999 and 1998, respectively.
(C) Excludes mortgage loans held-for-sale, on average, of $73.4 and $110.0
for the three months ended December 31, 1999 and 1998, respectively
and $96.6 and $96.3 for the years ended December 31, 1999 and 1998,
respectively.
(D) Balance sheet amounts used in calculations are based on period end
balances.
(E) Ratio excludes an $11.8 million isolated charge-off incurred during
the third quarter related to the Pluma credit.
All prior period financial data has been restated for the "pooling" with
First Coastal Bankshares, Inc.
OTHER FINANCIAL DATA, continued
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended December 31,
As a Percent of
Average Assets(A)
(Dollars in thousands) 1999 1998 Change 1999 1998
NONINTEREST INCOME
Service charges on
deposit accounts $ 14,126 $ 13,551 4.2% 0.63% 0.63%
Credit card and related
fees 2,103 1,716 22.6 0.09 0.08
Insurance and brokerage
commissions 5,811 4,595 26.5 0.26 0.21
Other service charges,
commissions and fees 2,788 2,964 (5.9) 0.12 0.14
Fees for trust services 2,572 2,404 7.0 0.11 0.11
Mortgage income 3,122 6,305 (50.5) 0.14 0.29
Negative goodwill
amortization 334 334 -- 0.01 0.02
Operating lease income,
net 679 2,034 (66.6) 0.03 0.09
Other noninterest income 2,033 2,637 (22.9) 0.10 0.12
Noninterest income,
excluding securities
transactions 33,568 36,540 (8.1) 1.49 1.69
Securities gains (losses),
net 675 24 2,712.5 0.03 --
Total noninterest
income $ 34,243 $ 36,564 (6.3)% 1.52% 1.69%
NONINTEREST EXPENSE
Salaries and overtime $ 29,331 $ 31,740 (7.6)% 1.30% 1.47%
Fringe benefits and other
personnel costs 6,451 6,215 3.8 0.29 0.29
Occupancy 4,849 4,802 1.0 0.21 0.22
Equipment 4,479 5,547 (19.3) 0.20 0.26
Foreclosed real estate
losses and related
operating expense 338 268 26.1 0.01 0.01
Marketing 509 1,659 (69.3) 0.02 0.08
Fees for outsourced
services 3,905 3,588 8.8 0.17 0.17
Professional and legal
fees 3,162 3,157 0.2 0.14 0.15
Other administrative 2,470 2,814 (12.2) 0.11 0.13
FDIC insurance 61 388 (84.3) -- 0.02
Deposit intangible and
goodwill amortization 2,624 2,263 16.0 0.12 0.10
Office supplies, postage
and telephone 4,827 5,169 (6.6) 0.21 0.24
Merger-related expenses -- -- -- -- --
Other operating 6,669 7,309 (8.7) 0.30 0.33
Total noninterest
expense $ 69,675 $ 74,919 (7.0)% 3.08% 3.47%
OTHER PERFORMANCE RATIOS
Pretax operating profit
margin, excluding
merger-related
expenses(B) 38.25% 33.95% 430bp
Efficiency ratio,
excluding merger-
related expenses(C) 56.93% 62.25% (532)bp
Net interest income analysis-
taxable equivalent:
Selected average yields/rates:
Loans 8.80% 8.81% (1)bp
Taxable securities 6.57 6.38 19
Tax-exempt securities 8.66 8.53 13
Short-term investments 5.77 4.80 97
Interest-earning assets 8.16 8.13 3
Total interest-bearing
deposits 4.10 4.12 (2)
Borrowed funds 5.23 5.08 15
Long-term debt 6.09 5.60 49
Total interest-bearing
liabilities 4.51 4.41 10
Interest rate spread 3.65 3.72 (7)
Net interest margin 4.23 4.26 (3)
OTHER FINANCIAL DATA, continued
CENTURA BANKS, INC. AND SUBSIDIARIES
Year Ended December 31
As a Percent of
Average Assets(A)
(Dollars in thousands) 1999 1998 Change 1999 1998
NONINTEREST INCOME
Service charges on
deposit accounts $ 54,291 $ 49,184 10.4% 0.62% 0.60%
Credit card and
related fees 8,237 6,358 29.6 0.09 0.08
Insurance and brokerage
commissions 23,145 19,577 18.2 0.26 0.24
Other service charges,
commissions and fees 11,505 11,333 1.5 0.13 0.14
Fees for trust services 10,340 9,304 11.1 0.12 0.11
Mortgage income 23,074 22,560 2.3 0.26 0.28
Negative goodwill
amortization 1,337 1,337 -- 0.02 0.02
Operating lease income,
net 6,163 7,498 (17.8) 0.07 0.09
Other noninterest
income 15,134 12,684 19.3 0.17 0.15
Noninterest income,
excluding securities
transactions 153,226 139,835 9.6 1.74 1.71
Securities gains (losses),
net (533) 686 (177.7) (0.01) 0.01
Total noninterest
income $ 152,693 $ 140,521 8.7% 1.73% 1.72%
NONINTEREST EXPENSE
Salaries and overtime $ 121,342 $ 117,698 3.1% 1.38% 1.44%
Fringe benefits and other
personnel costs 27,751 25,742 7.8 0.31 0.31
Occupancy 19,720 18,410 7.1 0.22 0.22
Equipment 20,279 22,225 (8.8) 0.23 0.27
Foreclosed real estate
losses and related
operating expense 1,611 1,258 28.1 0.02 0.02
Marketing 6,520 9,024 (27.8) 0.07 0.11
Fees for outsourced
services 14,964 13,058 14.6 0.17 0.16
Professional and legal
fees 13,643 13,380 2.0 0.15 0.16
Other administrative 10,036 10,125 (0.9) 0.11 0.12
FDIC insurance 1,169 1,617 (27.7) 0.01 0.02
Deposit intangible and
goodwill amortization 10,443 8,948 16.7 0.12 0.11
Office supplies, postage
and telephone 20,641 20,815 (0.8) 0.23 0.25
Merger-related expenses 6,858 -- -- 0.08 --
Other operating 27,086 28,097 (3.6) 0.32 0.36
Total noninterest
expense $ 302,063 $ 290,397 4.0% 3.42% 3.55%
OTHER PERFORMANCE RATIOS
Pretax operating profit
margin, excluding
merger-related
expenses(B) 34.29% 34.31% (2)bp
Efficiency ratio,
excluding merger-related
expenses(C) 59.10% 62.33% (323)bp
Net interest income analysis-
taxable equivalent:
Selected average yields/rates:
Loans 8.71% 9.16% (45)bp
Taxable securities 6.43 6.56 (13)
Tax-exempt securities 8.77 8.77 --
Short-term investments 5.54 5.24 30
Interest-earning assets 8.09 8.44 (35)
Total interest-bearing
deposits 3.97 4.32 (35)
Borrowed funds 4.94 5.55 (61)
Long-term debt 5.97 5.83 14
Total interest-bearing
liabilities 4.35 4.63 (28)
Interest rate spread 3.74 3.81 (7)
Net interest margin 4.29 4.37 (8)
bp Change is measured as difference in basis points.
(A) Data presented is annualized.
(B) Sum of income before taxes plus the taxable equivalent adjustment
divided by the sum of taxable equivalent net interest income plus
noninterest income.
(C) Noninterest expense divided by sum of taxable equivalent net interest
income plus noninterest income.
All prior period financial data has been restated for the "pooling" with
First Coastal Bankshares, Inc.
QUARTERLY FINANCIAL TRENDS
CENTURA BANKS, INC. AND SUBSIDIARIES
1999 1998 4th Qtr 99
Fourth Third Second First Fourth vs.
Quarter Quarter Quarter Quarter Quarter 3rd Qtr 99
(Dollars in thousands, except per share data)
FINANCIAL SUMMARY (A)
Assets $8,961,713 $8,776,455 $8,774,091 $8,770,262 $8,561,203 2.1%
Earning
assets 8,213,144 8,044,674 8,022,462 8,008,631 7,813,496 2.1
Loans 5,890,907 5,863,879 5,872,026 5,849,901 5,591,347 0.5
Investment
securi-
ties 2,247,088 2,124,579 2,101,580 2,107,805 2,179,818 5.8
Total
deposits 6,109,236 6,012,293 6,014,766 6,006,459 5,984,683 1.6
Interest-
bearing
liabili-
ties 7,201,630 7,015,865 7,015,157 7,035,344 6,826,099 2.6
Shareholders'
equity 691,128 702,101 696,366 692,576 673,130 (1.6)
Total market
capitalization
(period
end) 1,240,702 1,179,048 1,604,735 1,658,039 2,106,168 5.2
Net income 29,919 24,743 28,789 20,577 25,397 20.9
PROFITABILITY/PERFORMANCE SUMMARY(A)
Pretax operating
profit
margin(B) 38.25% 30.55% 35.56% 33.01% 33.95% 770bp
Efficiency
ratio(B) 56.93 58.34 59.30 61.88 62.25 (141)
Net interest
margin 4.23 4.32 4.26 4.22 4.26 (9)
Return on average
assets 1.32 1.12 1.32 0.95 1.18 20
Return on average
equity 17.17 13.98 16.58 12.05 14.97 319
Average equity
to average
assets 7.71 8.00 7.94 7.90 7.86 (29)
PER SHARE SUMMARY
Earnings per
share -
basic $ 1.06 $ 0.87 $ 1.01 $ 0.72 $ 0.90 21.8%
Earnings per
share -
diluted 1.05 0.86 1.00 0.71 0.88 22.1
Cash dividends
paid 0.32 0.32 0.32 0.29 0.29 --
Book value per
share 24.53 24.51 24.16 24.30 23.88 0.1
Closing market
price 44.125 41.375 56.375 58.188 74.375 6.6
KEY INTANGIBLE ASSETS (C)
Goodwill $114,885 $117,510 $119,651 $121,162 $102,858 (2.2)%
Mortgage
servicing
rights 32,303 33,422 39,673 37,468 33,464 (3.3)
ASSET QUALITY SUMMARY(C)
Nonperforming
assets $31,836 $41,518 $59,952 $41,979 $38,105 (23.3)%
Allowance for
loan losses 73,518 72,619 75,519 74,139 72,310 1.2
Nonperforming
assets to
total assets 0.35% 0.47% 0.68% 0.48% 0.43% (12)bp
Allowance for loan
losses to total
loans(D) 1.25 1.26 1.31 1.30 1.27 (1)
Net charge-offs
to average
loans(D) 0.34 1.16 0.34 0.36 0.26 (82)
bp Change is measured as difference in basis points.
(A) Balance sheet amounts are based on average balances unless otherwise
noted.
(B) Excludes merger-related expenses.
(C) Balance sheet amounts are based on period end balances unless
otherwise noted.
(D) Excludes mortgage loans held-for-sale.
All prior period financial data has been restated for the "pooling" with
First Coastal Bankshares, Inc.
SOURCE Centura Banks, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/870954.html or fax,
800-758-5804, ext. 870954
CONTACT:
Steven J. Goldstein, Chief Financial Officer
of Centura Banks, Inc., 252-454-8356, or sgoldstein@centura.com
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