ROCKY MOUNT, N.C., April 7 /PRNewswire/ -- Centura Banks, Inc. (NYSE: CBC)
today announced record earnings of 94 cents per diluted share for the first
quarter of 1999, excluding both the financial results from First Coastal
Bankshares, Inc. ("First Coastal"), and merger-related expenses. The merger
with First Coastal was completed on March 26, 1999 and was accounted for as a
pooling-of-interests.
For the quarter ended March 31, 1999, recurring earnings totaled
$25.5 million, compared with $22.5 million, or 85 cents per diluted share, a
year earlier.
"One of the highlights of the quarter was the completion of our merger
with First Coastal," said Cecil W. Sewell, Centura chairman and chief
executive officer. "The addition of First Coastal adds 18 financial stores
and strengthens Centura's presence in the Hampton Roads region of Virginia, an
attractive growth area for Centura. The merger, however, was completed so
late in the quarter, we wanted to highlight recurring results from
operations."
Excluding the contributions of First Coastal, non-interest income in the
first quarter accounted for 32 percent of Centura's recurring revenue.
Average loans increased $270 million or 21 percent, on an annualized basis,
over the fourth quarter of 1998.
"Our performance during the quarter reveals strong fundamental earnings
and continuing long-term growth," Sewell said. "This demonstrates that we
remain on course for achieving profitable growth and shareholder value through
the use of technology, expanded services and delivery channels, and a
dedicated sales force."
Non-recurring expenses related to the merger with First Coastal totaled
$8.4 million, or $0.19 per diluted share. The $8.4 million in non-recurring
expenses includes $1.6 million of severance-related expenses, $1.1 million in
write-offs of certain fixed assets, $1.3 million for terminations of
contractual obligations, $1.5 million of additional allowance for loan losses,
and $2.9 million of other transaction-related costs.
Including the non-recurring expenses and the financial results from First
Coastal, net income for the first quarter was $20.6 million or $0.71 per
diluted share.
During the first quarter, Centura also completed the acquisitions of
Capital Advisors, Inc., a commercial mortgage company, and Scotland Bancorp,
Inc., a $58 million savings bank in Laurinburg, North Carolina.
With assets of $8.7 billion, Centura provides a complete line of banking,
investment, insurance, leasing and trust services to individuals and
businesses in North Carolina, South Carolina and Virginia. Centura's broad
range of financial services are provided through a variety of delivery
channels, including 225 full-service financial offices; more than 330 ATMs at
financial offices, Wal-Mart stores and Sam's outlets; the Centura Highway
telephone banking center; Centura's Internet site; and through leading online
money management packages. Additional information may be found on Centura's
website at http://www.centura.com .
FINANCIAL HIGHLIGHTS
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended March 31,
1999 (A) 1999 1998 Change
(Dollars in thousands, except
per share data)
EARNINGS
Interest income $ 157,572 $ 148,976 5.8 %
Interest expense 74,784 73,498 1.7
Net interest income 82,788 75,478 9.7
Provision for loan losses 6,266 3,393 84.7
Noninterest income 38,233 32,314 18.3
Noninterest expense 82,818 68,662 20.6
Income taxes 11,360 12,249 (7.3)
Net income $ 20,577 $ 23,488 (12.4) %
Net interest income,
taxable equivalent $ 84,514 $ 77,278 9.4 %
PER COMMON SHARE
Earnings per share-
basic $ 0.95 $ 0.72 $ 0.85 (15.3) %
Earnings per share-
diluted 0.94 0.71 0.83 (14.5)
Cash dividends paid 0.29 0.27 7.4
Book value 24.30 21.90 11.0
Closing market price 58.1875 71.2500 (18.3)
FINANCIAL RATIOS
Return on average
assets 1.25 % (B) 0.95 % 1.22 % (27) bp
Return on average
shareholders' equity 15.94 (B) 12.05 15.79 (374)
Average equity to average
assets 7.90 7.74 16
AVERAGE BALANCES
Assets $8,770,262 $7,798,474 12.5 %
Earning assets 8,008,631 7,146,715 12.1
Loans 5,849,901 5,130,906 14.0
Investment securities 2,107,805 1,979,565 6.5
Noninterest-bearing deposits 903,556 797,677 13.3
Core deposits 5,476,700 5,240,802 4.5
Total deposits 6,006,459 5,742,340 4.6
Interest-bearing liabilities 7,035,344 6,287,112 11.9
Shareholders' equity 692,576 603,372 14.8
PERIOD END BALANCES
Assets $8,739,840 $8,142,357 7.3 %
Earning assets 7,970,676 7,438,795 7.2
Loans 5,814,127 5,322,018 9.2
Investment securities 2,097,518 2,092,135 0.3
Noninterest-bearing deposits 927,808 899,074 3.2
Core deposits 5,501,401 5,434,977 1.2
Total deposits 6,045,559 5,928,162 2.0
Shareholders' equity 692,564 618,872 11.9
bp Change is measured as difference in basis points.
(A) Based on recurring earnings that exclude merger-related expenses,
merger-related provision for loan losses, and First Coastal
Bankshares, Inc.'s results of operations for the three months ended
March 31, 1999.
(B) Excludes average assets and average shareholders' equity for First
Coastal Bankshares, Inc.
(C) 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 March 31,
(Dollars in thousands) 1999 1998 Change
SHARES OUTSTANDING
Average basic 28,464,482 27,675,911 2.8 %
Average diluted 28,965,826 28,273,364 2.4
Outstanding at period
end 28,494,755 28,253,683 0.9
COMPOSITION RATIOS (A)
Earning assets to total
assets 91.32 % 91.64 % (32) bp
Loans to earning assets 73.04 71.79 125
Interest-bearing liabilities
to earning assets 87.85 87.97 (12)
Loans to total deposits 97.39 89.35 804
Noninterest-bearing deposits
to total deposits 15.04 13.89 115
ALLOWANCE FOR LOAN LOSSES
Beginning balance $ 72,310 $ 68,576 5.4 %
Provision for loan
losses 6,266 3,393 84.7
Allowance of acquired
financial institutions 605 2,068 (70.7)
Charge-offs (5,866) (3,851) 52.3
Recoveries 824 935 (11.9)
Net charge-offs (5,042) (2,916) 72.9
Ending balance $ 74,139 $ 71,121 4.2 %
Net charge-offs to
average loans (C) 0.36 % 0.23 % 13 bp
COMPOSITION OF RISK ASSETS
Nonperforming loans $ 36,363 $ 34,718 4.7 %
Foreclosed property 5,616 6,825 (17.7)
Nonperforming assets $ 41,979 $ 41,543 1.0 %
ASSET QUALITY RATIOS (D)
Nonperforming assets to:
Loans and foreclosed
property (B) 0.73 % 0.79 % (6) bp
Total assets 0.48 0.51 (3)
Nonperforming loans to
total loans (B) 0.64 0.66 (2)
Allowance for loan losses
to total loans (B) 1.30 1.36 (6)
Allowance for loan losses to
nonperforming loans 2.04 x 2.05 x (1)
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 $105.6 million and $95.9
million at March 31, 1999 and 1998, respectively.
(C) Excludes mortgage loans held-for-sale, on average, of $124.9 million
and $67.2 million at March 31, 1999 and 1998, respectively.
(D) Balance sheet amounts used in calculations are based on period end
balances.
(E) 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 March 31,
As a Percent of
Average Assets (A)
(Dollars in thousands) 1999 1998 Change 1999 1998
NONINTEREST INCOME
Service charges on deposit
accounts $ 12,888 $ 10,789 19.5% 0.60% 0.56%
Credit card and related
fees 1,769 1,430 23.7 0.08 0.07
Insurance and brokerage
commissions 5,818 5,415 7.4 0.27 0.28
Other service charges,
commissions and fees 2,786 2,357 18.2 0.13 0.12
Fees for trust services 2,439 2,100 16.1 0.11 0.11
Mortgage income 7,036 4,127 70.5 0.33 0.21
Negative goodwill
amortization 334 334 -- 0.02 0.02
Operating lease fees, net 1,814 1,705 6.4 0.08 0.09
Other noninterest income 2,866 3,755 (23.7) 0.13 0.20
Noninterest income,
excluding securities
transactions 37,750 32,012 17.9 1.75 1.66
Securities gains, net 483 302 59.9 0.02 0.02
Total noninterest income $ 38,233 $ 32,314 18.3% 1.77% 1.68%
NONINTEREST EXPENSE
Salaries and overtime $ 31,863 $ 26,998 18.0% 1.47% 1.40%
Fringe benefits and
other personnel costs 7,462 6,448 15.7 0.35 0.34
Occupancy 5,095 4,395 15.9 0.24 0.23
Equipment 5,175 5,528 (6.4) 0.24 0.29
Foreclosed real estate
losses and related
operating expense 428 428 -- 0.02 0.02
Marketing 1,893 2,518 (24.8) 0.09 0.13
Fees for outsourced
services 3,522 2,895 21.7 0.16 0.15
Professional fees 3,393 3,471 (2.3) 0.16 0.18
Other administrative 2,391 2,558 (6.5) 0.11 0.13
FDIC insurance 342 420 (18.6) 0.02 0.02
Deposit intangible and
goodwill amortization 2,560 2,213 15.7 0.12 0.12
Office supplies, postage,
and telephone 5,118 4,522 13.2 0.24 0.24
Merger-related expenses 6,858 -- -- 0.32 --
Other operating 6,718 6,268 7.2 0.29 0.33
Total noninterest
expense $ 82,818 $ 68,662 20.6% 3.83% 3.57%
OTHER PERFORMANCE RATIOS
Pretax operating profit margin,
excluding merger-related
expenses (B) 33.01% 34.25% (124) bp
Efficiency ratio, excluding
merger-related
expenses (C) 61.88% 62.65% (77) bp
Net interest income
analysis-taxable equivalent:
Selected average yields/rates:
Loans 8.60% 9.21% (61) bp
Taxable securities 6.35 6.62 (27)
Tax-exempt securities 9.19 8.88 31
Short-term investments 5.25 4.59 66
Interest-earning assets 8.00 8.48 (48)
Total interest-bearing
deposits 3.98 4.43 (45)
Borrowed funds 4.86 5.71 (85)
Long-term debt 5.62 6.02 (40)
Total interest-bearing
liabilities 4.29 4.72 (43)
Interest rate spread 3.71 3.76 (5)
Net interest margin 4.22 4.31 (9)
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.
(D) 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 1st Qtr 99
First Fourth Third Second First vs.
Quarter Quarter Quarter Quarter Quarter 4th Qtr 98
(Dollars in thousands,
except per share data)
FINANCIAL SUMMARY (A)
Assets $8,770,262 $8,561,203 $8,225,607 $8,148,591 $7,798,474 2.4%
Earning
assets 8,008,631 7,833,188 7,520,744 7,433,697 7,146,715 2.2
Loans 5,849,901 5,611,039 5,446,908 5,372,738 5,130,906 4.3
Investment
securities 2,107,805 2,179,818 2,043,215 2,032,376 1,979,565 (3.3)
Total
deposits 6,006,459 5,984,683 5,965,263 5,860,150 5,742,340 0.4
Interest-bearing
liabilities 7,035,344 6,826,099 6,559,422 6,544,009 6,287,112 3.1
Shareholders'
equity 692,576 673,130 652,202 629,539 603,372 2.9
Total market
capitalization
(period end) 1,658,039 2,106,168 1,780,108 1,764,457 2,013,075 (21.3)
Net income 20,577 25,397 26,347 25,082 23,488 (19.0)
PROFITABILITY/PERFORMANCE SUMMARY (A)
Pretax operating
profit
margin (B) 33.01% 33.95% 34.77% 34.28% 34.25% (94)bp
Efficiency
ratio (B) 61.88 62.25 61.87 62.58 62.65 (37)
Net interest margin 4.22 4.24 4.38 4.33 4.31 (2)
Return on average
assets 0.95 1.18 1.27 1.23 1.22 (23)
Return on average
equity 12.05 14.97 16.03 15.98 15.79 (292)
Average equity to
average assets 7.90 7.86 7.93 7.73 7.74 4
PER SHARE SUMMARY
Earnings per share
- basic $ 0.72 $ 0.90 $ 0.93 $ 0.89 $ 0.85 (20.0)%
Earnings per share
- diluted 0.71 0.88 0.92 0.87 0.83 (19.3)
Cash dividends
paid 0.29 0.29 0.29 0.29 0.27 --
Book value per
share 24.30 23.88 23.52 22.49 21.90 1.8
Closing market
price 58.1875 74.3750 63.0000 62.5000 71.2500 (21.8)
KEY INTANGIBLE ASSETS (C)
Goodwill $ 121,162 $ 102,858 $ 104,671 $105,204 $107,293 17.8%
Mortgage
servicing
rights 37,467 33,464 31,473 30,179 28,422 12.0
ASSET QUALITY SUMMARY (C)
Nonperforming
assets $ 41,979 $ 38,105 $ 37,538 $ 40,469 $ 41,543 10.2%
Allowance for
loan losses 74,139 72,310 71,390 71,262 71,121 2.5
Nonperforming
assets to total
assets 0.48% 0.43% 0.45% 0.49% 0.51% 5bp
Allowance for loan
losses to total
loans (D) 1.30 1.27 1.33 1.34 1.36 3
Net charge-offs
to average
loans (D) 0.36 0.26 0.29 0.27 0.23 10
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.
(E) All prior period financial data has been restated for the "pooling"
with First Coastal Bankshares, Inc.
SOURCE Centura Banks, Inc.
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Related links:
http://centura.com
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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