DURHAM, N.C., April 13 /PRNewswire/ -- CCB Financial Corporation
(NYSE: CCB) reported today that first-quarter 2000 diluted income per share
increased 1.2% to $.84. This compared to $.83 per diluted share earned in the
first quarter of 1999. First-quarter 1999 income included a branch sale gain
of approximately $1 million and a gain on the sale of approximately
$200 million in mortgage loans.
"Robust consumer and commercial loan growth and excellent credit quality
were highlights of our first quarter earnings performance," said Ernest C.
Roessler, CCB's chairman, president and chief executive officer. "These two
factors, combined with closely-monitored expenses, offset a declining net
interest margin and further decline in our residential mortgage business. Our
overall profitability measures remained strong in the first quarter of 2000,
with return on equity of 18.42%, return on assets of 1.61% and an efficiency
ratio of 51.92%."
"We also announced during the quarter an exciting, strategic merger of
equals combination with National Commerce Bancorporation (Nasdaq: NCBC). We
expect this merger, which combines the #1 and #6 ranked banks in the U.S, as
rated by U.S. Banker magazine, to build on CCB's strength in commercial
banking and NCBC's outstanding growth in retail banking to create the premier,
high-growth banking franchise in the Southeast."
During the first quarter of 2000, average loans and leases increased to
$6.1 billion, growing at a rate of 11.8%, over the first quarter of 1999.
Adjusting for the mortgage sale in the first quarter of 1999 and the $151
million sale of credit card receivables in the second quarter of 1999, average
loans and leases grew 16.5% in the first quarter of 2000, over the year-ago
quarter. Average deposits grew 4.6% over the year-ago quarter to $6.7 billion
during the first quarter of 2000. The net interest margin was 4.38% in the
first quarter of 2000, down from 4.68% in the year-ago quarter and 4.64% in
the fourth quarter of 1999. Pressure on the net interest margin resulted from
funding costs rising faster than asset yields, plus slower growth in non-
interest bearing and low-cost deposits, requiring a higher level of reliance
on borrowed funds.
Noninterest income, excluding securities gains and losses, decreased .9%
in the first quarter of 2000, compared to the year-ago quarter. Strong growth
in revenues from service charges, trust and brokerage fees, and merchant
credit card fees was offset by an expected decline in mortgage-related income.
Excluding the 1999 branch sale gain, mortgage-related income and securities
gains and losses, noninterest income increased 15.8% during the first quarter
of 2000, compared to the year-ago quarter.
Net charge-offs equaled an annualized .08% of average loans and leases in
the first quarter of 2000, an improvement from .22% annualized in the first
quarter of 1999. At March 31, 2000, the loan loss reserve to total loans was
1.27% and the reserve coverage of risk assets was 2.43x, down from 3.09x in
the year-ago quarter. The decrease in reserve coverage reflects the
significant decrease in CCB's net charge-offs following the sale of credit
card receivables in the second quarter of 1999. Total risk assets increased
by $8.8 million in the first quarter of 2000 over the year-ago quarter. The
majority of this increase resulted from three unrelated loans, two of which
are secured by commercial real estate. CCB expects to collect substantially
all of its principal on all three loans.
CCB Financial Corporation offers a complete line of traditional banking
services, as well as a full array of financial products, such as investments,
insurance and trust services. Its two principal banking subsidiaries, Central
Carolina Bank and Trust Company in North Carolina and American Federal Bank,
FSB in South Carolina, serve customers through 208 offices, including twenty-
two open seven days a week in Harris Teeter stores, 229 ATMs, its Telebanking
Center, and on-line banking for both retail and commercial accounts. The
Trust and Investment Management division currently has 14 offices in the
Carolinas, Virginia and Florida, with trust assets managed exceeding
$5.5 billion. As of March 31, 2000, CCB Financial Corporation had total
assets of $8.5 billion.
This news release contains certain forward-looking statements (as defined
in the Private Securities Litigation Reform Act of 1995) related to
anticipated future operating and financial performance, growth opportunities
and growth rates, and other similar forecasts and statements of expectations.
These forward-looking statements are based on estimates, beliefs and
assumptions made by management and are not guarantees of future performance.
Factors that may cause actual results to differ from those expressed or
implied are set forth in the Company's 1999 Annual Report on Form 10-K and
subsequent reports of the Company under the Securities Exchange Act of 1934.
News releases and other information about the Corporation are available on
the Internet at the Corporation's web site, CCBonline.com . Faxed copies of
the Corporation's news releases are available at no charge 24 hours a day,
7 days a week by calling PR Newswire's Company News On-Call at (800)758-5804
and entering the extension code for CCB Financial Corporation (150641).
CCB FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Income
Statement 3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
Loan income (TE) $130,877 128,175 120,459 120,239 117,419
Securities
income (TE) 29,283 28,706 27,546 25,121 23,402
Other interest
income (TE) 1,514 1,939 2,742 4,512 6,126
Total interest
income (TE) 161,674 158,820 150,747 149,872 146,947
Savings/NOW expense 2,258 2,054 1,979 1,942 1,902
Money market account
expense 20,446 19,186 17,761 15,925 15,302
Jumbo CD expense 6,309 5,756 5,025 4,850 5,829
Consumer time deposit
expense 36,250 35,109 33,392 33,552 33,203
Interest expense on
deposits 65,263 62,105 58,157 56,269 56,236
Short-term borrowed
funds expense 5,147 3,644 3,140 2,683 2,549
Long-term debt expense 5,556 3,871 2,444 3,119 3,330
Total interest
expense 75,966 69,620 63,741 62,071 62,115
Net interest
income (TE) 85,708 89,200 87,006 87,801 84,832
Taxable equivalent
adjustment 4,193 4,476 4,261 4,076 3,974
Net interest income 81,515 84,724 82,745 83,725 80,858
Provision for loan
losses 2,097 3,525 3,284 5,676 1,811
Net interest income
after provision 79,418 81,199 79,461 78,049 79,047
Service charges on
deposits 15,860 16,685 15,626 15,289 14,231
Other service charges
and fees 1,111 1,754 1,209 1,587 1,506
Trust income 3,223 3,456 2,959 3,163 2,996
Sales and insurance
commissions 4,020 3,353 3,281 3,430 2,742
Merchant discount 3,374 3,048 3,002 3,240 2,576
Secondary marketing and
servicing - mortgages 1,044 1,297 532 2,893 4,409
Accretion of negative
goodwill 839 839 839 839 839
Gain on sale of credit
card receivables (A) -- -- -- 32,837 --
Other 2,177 1,195 1,101 1,702 2,621
Investment securities
gains 239 849 -- 408 124
Investment securities
losses (29) -- -- -- (3)
Total noninterest
income 31,858 32,476 28,549 65,388 32,041
Personnel expense 34,150 34,678 34,330 34,408 32,889
Occupancy 4,613 4,539 4,401 4,298 4,093
Equipment 4,483 4,865 4,668 4,090 4,090
Foreclosed property
expense 108 152 103 28 273
Deposit and other
insurance 394 630 611 615 634
Amortization of
intangible assets 1,055 1,074 1,025 1,026 1,025
Other 16,237 16,827 15,315 17,131 16,218
Total noninterest
expense 61,040 62,765 60,453 61,596 59,222
Income before income
taxes 50,236 50,910 47,557 81,841 51,866
Income taxes 17,058 17,470 16,012 29,756 18,113
Net income $33,178 33,440 31,545 52,085 33,753
Per Share Data
Income before
non-recurring gain
- basic (A) $ .84 .84 .80 .80 .84
Income before
non-recurring gain
- diluted (A) .84 .83 .79 .80 .83
Net income - basic .84 .84 .80 1.30 .84
Net income - diluted .84 .83 .79 1.29 .83
Cash dividends .29 .29 .29 .26 .26
Book value 18.42 18.19 17.96 17.75 17.21
Tangible book value 17.73 17.47 17.31 17.07 16.51
Closing stock price(B) 44.25 43.56 41.63 52.88 54.06
High stock price for
the quarter 44.25 48.31 54.38 59.13 58.88
Low stock price for
the quarter 33.00 40.13 40.00 50.94 51.50
CCB FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
Three Months Ended
Ratios 3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
Income before
non-recurring
gain (A):
Return on average
assets 1.61 % 1.64 1.61 1.67 1.78
Return on average
equity 18.42 18.13 17.72 18.64 19.86
Net income:
Return on average
assets 1.61 1.64 1.61 2.70 1.78
Return on average
equity 18.42 18.13 17.72 30.20 19.86
Net interest margin 4.38 4.64 4.69 4.76 4.68
Average equity to
average assets 8.73 9.03 9.08 8.94 8.98
Operating Efficiency Ratios
As a percentage of average
assets (excluding
non-recurring gain (A)):
Noninterest income 1.54 % 1.59 1.46 1.69 1.69
Personnel expense 1.65 1.70 1.75 1.78 1.74
Occupancy and equipment
expense .44 .46 .45 .43 .44
Other operating
expense .86 .92 .87 .97 .96
Noninterest expense 2.95 3.08 3.07 3.18 3.14
Net overhead
(noninterest exp. -
noninterest inc.) 1.41 % 1.49 1.61 1.49 1.45
Noninterest expense as
a percentage of net
interest income (TE)
and other income
(excluding non-recurring
gain (A)) 51.92 % 51.58 52.31 51.18 50.67
Average assets per
employee
(in millions) $ 2.97 2.86 2.76 2.75 2.79
Average Balances
Assets $8,299,603 8,101,375 7,776,975 7,736,982 7,675,964
Loans (all domestic) (C):
Commercial 1,378,125 1,342,021 1,320,460 1,276,815 1,220,917
Construction and
commercial real
estate 2,052,262 1,941,746 1,824,071 1,740,500 1,629,529
Mortgage 1,110,608 1,081,637 964,483 972,349 1,075,473
Consumer 1,394,566 1,367,714 1,322,846 1,274,221 1,241,288
Revolving credit 59,497 55,875 56,210 203,160 208,076
Lease financing 69,768 63,928 59,667 54,111 48,735
Total loans 6,064,826 5,852,921 5,547,737 5,521,156 5,424,018
Investment securities:
Taxable (D) 1,609,374 1,597,212 1,564,721 1,411,652 1,279,623
Tax-exempt 71,307 73,690 74,184 75,232 78,312
Earning assets(D) 7,840,227 7,661,654 7,396,269 7,372,605 7,296,031
Deposits:
Demand deposits
(noninterest
-bearing) 826,173 853,398 843,932 845,563 829,826
Savings/NOW
accounts 805,162 799,717 792,314 811,262 795,821
Money market
accounts 1,914,128 1,923,373 1,897,531 1,841,466 1,794,427
Jumbo CD's 438,412 416,674 385,793 389,197 457,524
Consumer time
deposits 2,739,836 2,676,491 2,576,945 2,592,026 2,550,420
Total deposits 6,723,711 6,669,653 6,496,515 6,479,514 6,428,018
Short-term borrowed
funds 381,663 294,539 274,587 253,345 244,873
Long-term debt 370,006 271,706 171,466 214,911 216,618
Interest-bearing
liabilities 6,649,207 6,382,500 6,098,636 6,102,207 6,059,683
Shareholders'
equity (E) 724,557 731,749 706,095 691,740 689,301
Share Data (E)
Common shares
outstanding 39,161,784 39,579,808 39,589,796 39,798,903 40,058,092
Weighted average shares outstanding:
Basic 39,468,099 39,916,502 39,676,859 39,953,036 40,237,403
Diluted 39,733,383 40,230,315 40,032,379 40,348,944 40,655,439
CCB FINANCIAL CORPORATION
Financial Summary
Unaudited
(In Thousands Except Share and Per Share Data)
As Of Or For The Three Months Ended
Reserve For
Loan Losses 3/31/00 12/31/99 9/30/99 6/30/99 3/31/99
Beginning balance $ 77,266 74,168 72,813 72,093 73,182
Provision for loan
losses 2,097 3,525 3,284 5,676 1,811
Decrease from sale
of credit card
receivables -- -- -- (1,967) --
Addition from
acquired institution -- 886 -- -- --
Recoveries 721 1,117 873 752 708
Charge-offs (1,907) (2,430) (2,802) (3,741) (3,608)
Ending balance $ 78,177 77,266 74,168 72,813 72,093
Net Charge-offs by Type of Loan
Commercial, financial
and agricultural $ (101) (56) (32) 62 5
Secured by real estate (7) (89) (64) (306) (21)
Installment loans to
individuals (797) (917) (887) (1,461) (1,331)
Revolving credit (285) (246) (949) (1,287) (1,547)
Lease financing 4 (5) 3 3 (6)
Total net
charge-offs $ (1,186) (1,313) (1,929) (2,989) (2,900)
Non-Performing and Risk Assets
Nonperforming assets:
Beginning
balance $ 18,822 25,038 17,487 18,880 17,552
Activity during the quarter:
Additions 9,642 2,743 11,558 2,507 4,171
Payments or sales (2,060) (4,824) (3,973) (3,623) (2,577)
Restructure or
return to
performing status -- (4,078) -- -- --
Charge-offs or
write-downs (5) (57) (34) (277) (266)
Net increase
(decrease) 7,577 (6,216) 7,551 (1,393) 1,328
Ending balance comprised of:
Nonaccrual loans 24,745 15,950 22,089 16,535 18,231
Foreclosed real
estate 1,654 2,872 2,949 952 649
Total nonperforming
assets 26,399 18,822 25,038 17,487 18,880
Restructured loans 2,241 2,251 714 725 736
Ninety days past due
and accruing 3,478 3,555 3,285 4,582 3,722
Total risk
assets $ 32,118 24,628 29,037 22,794 23,338
Asset Quality Ratios
Total risk assets to:
Total loans and
foreclosed real
estate .52 % .41 .51 .41 .43
Total assets .38 .30 .37 .29 .30
Loan loss reserve to
total risk assets 2.43 x 3.14 2.55 3.19 3.09
Net charge-offs to
average loans
(annualized):
Total .08 % .09 .14 .22 .22
Excluding revolving
credit .06 .07 .07 .13 .11
Revolving credit (A) 1.93 1.75 6.70 2.54 3.02
Loan loss reserve to
total loans 1.27 1.30 1.32 1.33 1.33
Other Information
Number of offices 208 207 205 203 204
Number of employees 2,791 2,831 2,821 2,813 2,753
Number of ATM's 229 228 223 215 216
Intangible assets:
Goodwill $ 25,226 26,215 23,528 24,432 25,337
Deposit base
premium 2,023 2,101 2,222 2,342 2,463
Mortgage servicing
rights 2,497 2,686 2,829 2,966 10,798
Negative goodwill 11,332 12,171 13,010 13,849 14,688
Parent Company's
investment in
subsidiaries 719,850 727,631 728,645 718,666 685,970
Cash dividends 11,441 11,508 11,477 10,367 10,446
SOURCE CCB Financial Corporation
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