ROCKY MOUNT, N.C., Oct. 6 /PRNewswire/ -- Centura Banks Inc. (NYSE: CBC)
announced today record net income of $21.7 million for the third quarter of
1997. Third quarter net income was 14.5 percent greater than the third
quarter of 1996, adjusted for the one-time Savings Association Insurance Fund
(SAIF) assessment in September 1996. (Net income in the third quarter
increased 47.5 percent over third quarter 1996 including the effect of the
SAIF assessment.) Fully diluted earnings per share increased to $0.82 in the
third quarter of 1997 from a SAIF-adjusted $0.73 in the comparable quarter of
1996 ($0.57 including the SAIF assessment).
For the first nine months of 1997, net income was $59.6 million or 10.6
percent greater than the SAIF-adjusted net income of $53.9 million ($49.6
million after SAIF) during the first nine months of 1996.
Return on average equity increased 58 basis points from the second quarter
of 1997 to 16.6 percent, and return on average assets was 1.28 percent, up 4
basis points from the previous quarter. The efficiency ratio continued to
improve, declining 85 basis points from the second quarter of 1997 to 6l.5
percent, and the ratio of net charge-offs to average total loans remained
constant at 26 basis points in the second and third quarters.
"The third quarter results highlight Centura's continuing commitment to
improving both the composition and quantity of net income," commented Cecil W.
Sewell, Centura's chairman and chief executive officer. "Our success in the
third quarter of integrating thirteen banking offices from BBT/UCB while
controlling operating expenses and increasing non-interest income from a
variety of sources is the best indication that we are `on track' in the
implementation of our strategy."
In August Centura finalized its acquisition of thirteen offices from
BBT/UCB. Also during the quarter Centura reached agreement to purchase $22
million in deposits held by the First Union banking office in Bakersville and
announced plans to merge a local insurance agency, Betts & Company, with
Centura Insurance Services Inc.
With assets of $6.9 billion, Centura provides a complete line of banking,
investment, insurance, leasing and trust services to individuals and
businesses throughout North Carolina and the Hampton Roads area of Virginia.
Services are provided through 188 financial centers, more than 265 ATMs at
financial centers, Wal-Mart stores and Sam's stores; the Centura Highway
telephone banking center; Centura's Internet site; and through leading online
money management software packages. Additional information about Centura
is available on its web site at http://www.centura.com.
FINANCIAL HIGHLIGHTS
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, 1997 1996 Change 1997 1996 Change
except share and per
share data)
EARNINGS
Interest
income $ 131,844 $ 118,995 10.8% $ 377,953 $346,665 9.0%
Interest
expense 64,385 55,201 16.6 181,143 162,665 11.4
Net interest
income 67,459 63,794 5.7 196,810 184,000 7.0
Provision for
loan losses 3,486 2,400 45.3 9,569 6,850 39.7
Noninterest
income 29,923 25,132 19.1 83,104 73,544 13.0
Noninterest
expense 61,169 63,573 (3.8) 179,197 172,121 4.1
Income taxes 11,027 8,237 33.9 31,594 28,957 9.1
Net income $21,700 $ 14,716 47.5% $ 59,554 $ 49,616 20.0%
Net interest income,
taxable
equivalent $ 69,585 $ 65,191 6.7% $202,632 $188,371 7.6%
PER COMMON SHARE
Net income-
primary $ 0.82 $ 0.57 43.1% $ 2.26 $ 1.91 18.3%
Net income-
fully diluted 0.82 0.57 43.1 2.26 1.91 18.3
Cash dividends
paid 0.27 0.25 8.0 0.79 0.75 5.3
Book value 20.45 18.04 13.4 20.45 18.04 13.4
Closing market
price 55.0625 38.625 42.6 55.0625 38.625 42.6
FINANCIAL RATIOS
Return on average
assets 1.28% 0.97% 31bp 1.23% 1.13% 10bp
Return on average
shareholders'
equity 16.58 12.81 377 15.83 14.81 102
Equity to assets
(average) 7.70 7.59 11 7.79 7.62 17
AVERAGE BALANCES
Assets $6,738,633 $6,024,327 11.9% $6,461,140 $5,875,243 10.0%
Earning
assets 6,177,675 5,544,087 11.4 5,933,940 5,411,660 9.7
Loans 4,372,404 4,097,846 6.7 4,223,754 3,958,127 6.7
Investment
securities 1,771,094 1,407,955 25.8 1,679,043 1,417,816 18.4
Noninterest-bearing
deposits 741,991 664,435 11.7 695,119 632,851 9.8
Core deposits 4,582,679 4,215,381 8.7 4,420,253 4,012,274 10.2
Total
deposits 4,967,064 4,592,544 8.2 4,784,461 4,432,367 7.9
Interest-bearing
liabilities 5,391,079 4,813,779 12.0 5,178,989 4,705,975 10.1
Shareholders'
equity 519,175 457,072 13.6 503,049 447,455 12.4
PERIOD END BALANCES
Assets $6,891,281 $6,231,443 10.6% $6,891,281 $6,231,443 10.6%
Earning
assets 6,227,309 5,708,257 9.1 6,227,309 5,708,257 9.1
Loans 4,511,074 4,206,297 7.2 4,511,074 4,206,297 7.2
Investment
securities 1,693,347 1,478,440 14.5 1,693,347 1,478,440 14.5
Noninterest-bearing
deposits 824,703 711,082 16.0 824,703 711,082 16.0
Core deposits 4,798,695 4,363,770 10.0 4,798,695 4,363,770 10.0
Total
deposits 5,209,836 4,728,323 10.2 5,209,836 4,728,323 10.2
Shareholders'
equity 529,464 468,383 13.0 529,464 468,383 13.0
bp Change is measured as difference in basis points.
OTHER FINANCIAL DATA
CENTURA BANKS, INC. AND SUBSIDIARIES
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 Change 1997 1996 Change
(In thousands,
except share data)
SHARES OUTSTANDING
Average
primary 26,456,093 26,145,688 1.2% 26,346,768 26,054,116 1.1%
Average fully
diluted 26,461,609 26,145,688 1.2 26,393,774 26,056,433 1.3
Outstanding 25,893,357 25,965,353 (0.3) 25,893,357 25,965,353 (0.3)
COMPOSITION RATIOS*
Earning assets
to assets 91.68% 92.03% (35)bp 91.84% 92.11% (27)bp
Loans to earning
assets 70.78 73.91 (313) 71.18 73.14 (196)
Interest-bearing
liabilities to
earning assets 87.27 86.83 44 87.28 86.96 32
Loans to total
deposits 88.03 89.23 (120) 88.28 89.30 (102)
Noninterest-bearing
deposits to total
deposits 14.94 14.47 47 14.53 14.28 25
ALLOWANCE FOR LOAN LOSSES
Beginning
balance $ 59,206 $ 58,011 2.1% $ 58,715 $ 55,070 6.6%
Provision for
loan losses 3,486 2,400 45.3 9,569 6,850 39.7
Allowance of
acquired financial
institutions 2,410 1,240 94.4 2,410 1,240 94.4
Charge-offs (3,271) (1,953) 67.5 (10,527) (5,413) 94.5
Recoveries 451 631 (28.5) 2,115 2,582 (18.1)
Net charge-offs (2,820) (1,322) 113.3 (8,412) (2,831) 197.1
Ending balance $ 62,282 $ 60,329 3.2% $ 62,282 $ 60,329 3.2%
Net charge-offs to
average loans 0.26% 0.13% 13bp 0.27% 0.10% 17bp
COMPOSITION OF RISK ASSETS
Nonaccrual loans $ 23,390 $ 16,489 41.9%
Restructured loans 0 609 (100.0)
Nonperforming loans 23,390 17,098 36.8
Foreclosed property 5,243 3,300 58.9
Nonperforming assets $ 28,633 $ 20,398 40.4%
ASSET QUALITY RATIOS**
Nonperforming assets to:
Loans and foreclosed property 0.63% 0.48% 15bp
Total assets 0.42 0.33 9
Nonperforming loans to total loans 0.52 0.41 11
Allowance for loan losses to total loans 1.38 1.43 (5)
Allowance for loan losses to nonperforming
loans 2.66x 3.53x (87)
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 September 30,
As a Percent of
Average Assets#
(Dollars in 1997 1996 Change 1997 1996
thousands)
NONINTEREST INCOME
Service charges
on deposit accounts $ 10,744 $ 8,618 24.7% 0.63% 0.57%
Credit card and related
fees 1,951 1,479 31.9 0.11 0.10
Insurance & brokerage
commissions 3,305 2,702 22.3 0.19 0.18
Other service charges,
commissions and fees 2,119 1,610 31.6 0.12 0.11
Fees for trust services 1,830 1,650 10.9 0.11 0.11
Mortgage income 2,801 2,708 3.4 0.16 0.18
Negative goodwill
amortization 334 334 0.0 0.02 0.02
Operating lease fees 2,806 3,019 (7.1) 0.17 0.20
Other noninterest
income 3,872 2,609 48.4 0.24 0.16
Noninterest income,
excluding securities
transactions 29,762 24,729 20.4 1.75 1.63
Securities gains
(losses), net 161 403 (60.1) 0.01 0.03
Total noninterest
income $ 29,923 $ 25,132 19.1% 1.76% 1.66%
NONINTEREST EXPENSE
Salaries and overtime$ 23,392 $ 21,771 7.5% 1.38% 1.44%
Fringe benefits and
other personnel costs 5,216 5,661 (7.9) 0.31 0.37
Occupancy 3,618 3,260 11.0 0.21 0.22
Equipment 5,455 4,831 12.9 0.32 0.32
Foreclosed real estate
losses and related
operating expense 265 148 79.1 0.02 0.01
Marketing 2,053 1,693 21.3 0.12 0.11
Professional fees 6,892 3,327 107.2 0.41 0.22
Other administrative 2,132 2,724 (21.7) 0.13 0.18
FDIC insurance 321 8,398 (96.2) 0.02 0.55
Deposit intangible and
goodwill amortization 1,611 1,281 25.8 0.09 0.08
Office supplies, postage
and telephone 3,946 4,037 (2.3) 0.23 0.27
Depreciation on leased
equipment 1,538 2,202 (30.2) 0.09 0.15
Other operating 4,730 4,240 11.6 0.27 0.28
Total noninterest
expense $ 61,169 $ 63,573 (3.8)% 3.60% 4.20%
OTHER PERFORMANCE RATIOS
Pretax operating profit
margin + 35.03% 26.96% 807bp
Efficiency ratio*** 61.47% 70.38% (891)bp
Net interest income
analysis-taxable equivalent:
Selected average yields/rates:
Loans 9.38% 9.30% 8bp
Taxable securities 6.63 6.43 20
Tax-exempt securities 8.94 8.89 5
Short-term investments 5.23 5.74 (51)
Interest-earning assets 8.59 8.56 3
Total interest-bearing
deposits 4.40 4.37 3
Borrowed funds 5.39 5.02 37
Long-term debt 6.95 6.12 83
Total interest-bearing
liabilities 4.72 4.56 16
Interest rate spread 3.87 4.00 (13)
Net interest margin 4.46 4.61 (15)
bp Change is measured as difference in basis points.
*** Noninterest expense divided by sum of taxable equivalent net interest
income plus noninterest income.
+ Sum of income before taxes plus the taxable equivalent adjustment
divided by the sum of taxable equivalent net interest income plus
noninterest income.
# Data presented is annualized.
Nine Months Ended September 30,
As a Percent of
Average Assets#
(Dollars in 1997 1996 Change 1997 1996
in thousands)
NONINTEREST INCOME
Service charges
on deposit accounts $ 29,588 $ 25,357 16.7% 0.61% 0.58%
Credit card and
related fees 4,721 3,588 31.6 0.10 0.08
Insurance & brokerage
commissions 10,086 8,149 23.8 0.21 0.19
Other service charges,
commissions and fees 5,680 3,979 42.8 0.12 0.09
Fees for trust services 5,730 4,941 16.0 0.12 0.11
Mortgage income 8,268 8,895 (7.1) 0.17 0.20
Negative goodwill
amortization 1,003 1,003 0.0 0.02 0.02
Operating lease fees 8,579 9,519 (9.9) 0.18 0.22
Other noninterest
income 9,414 6,431 46.4 0.19 0.14
Noninterest income,
excluding securities
transactions 83,069 71,862 15.6 1.72 1.63
Securities gains
(losses), net 35 1,682 (97.9) 0 0.04
Total noninterest
income $ 83,104 $ 73,544 13.0% 1.72% 1.67%
NONINTEREST EXPENSE
Salaries and
overtime $ 66,985 $ 64,296 4.2% 1.39% 1.46%
Fringe benefits and
other personnel costs 16,536 16,364 1.1 0.34 0.37
Occupancy 10,399 9,448 10.1 0.22 0.21
Equipment 15,920 14,119 12.8 0.33 0.32
Foreclosed real estate
losses and related
operating expense 987 457 116.0 0.02 0.01
Marketing 6,199 4,819 28.6 0.13 0.11
Professional fees 17,118 9,136 87.4 0.35 0.21
Other administrative 6,149 6,731 (8.7) 0.13 0.15
FDIC insurance 960 10,201 (90.6) 0.02 0.23
Deposit intangible and
goodwill amortization 4,447 3,691 20.5 0.09 0.08
Office supplies, postage
and telephone 12,517 11,945 4.8 0.26 0.27
Depreciation on leased
equipment 5,345 6,587 (18.9) 0.11 0.15
Other operating 15,635 14,327 9.1 0.32 0.34
Total noninterest
expense $ 179,197 $ 172,121 4.1% 3.71% 3.91%
OTHER PERFORMANCE RATIOS
Pretax operating
profit margin + 33.94% 31.67% 227bp
Efficiency ratio*** 62.71% 65.72% (301)bp
Net interest income
analysis-taxable equivalent:
Selected average yields/rates:
Loans 9.37% 9.35% 2bp
Taxable securities 6.63 6.42 21
Tax-exempt securities 8.89 8.84 5
Short-term investments 5.38 5.03 35
Interest-earning
assets 8.59 8.58 1
Total interest-bearing
deposits 4.40 4.39 1
Borrowed funds 5.20 5.15 5
Long-term debt 6.57 6.27 30
Total interest-bearing
liabilities 4.66 4.62 4
Interest rate spread 3.93 3.96 (3)
Net interest margin 4.52 4.57 (5)
bp Change is measured as difference in basis points.
*** Noninterest expense divided by sum of taxable equivalent net interest
income plus noninterest income.
+ Sum of income before taxes plus the taxable equivalent adjustment
divided by the sum of taxable equivalent net interest income plus
noninterest income.
# Data presented is annualized.
QUARTERLY FINANCIAL TRENDS
Centura Banks, Inc. and Subsidiaries
1997 1996 3rd Qtr 97
Third Second First Fourth Third vs.
Quarter Quarter Quarter Quarter Quarter 2nd Qtr 97
(Dollars in thousands)
FINANCIAL SUMMARY *
Assets $6,738,633 $6,453,981 $6,184,718 $6,197,670 $6,024,327 4.4%
Earning
assets 6,177,675 5,926,035 5,692,783 5,703,321 5,544,087 4.2
Loans 4,372,404 4,188,811 4,107,133 4,181,963 4,097,846 4.4
Investment
securities 1,771,094 1,710,960 1,552,675 1,491,008 1,407,955 3.5
Total
deposits 4,967,064 4,725,511 4,657,405 4,723,099 4,592,544 5.1
Interest-bearing
liabilities 5,391,079 5,185,562 4,955,541 4,944,155 4,813,779 4.0
Stockholders'
equity 519,175 501,027 488,609 472,484 457,072 3.6
Total market
capitalization
(period end) 1,425,753 1,183,788 1,004,335 1,145,458 1,002,912 20.4
Net income 21,700 19,980 17,874 18,535 14,716 8.6
PROFITABILITY/PERFORMANCE SUMMARY *
Pretax operating
profit margin 35.03% 34.31% 32.37% 32.02% 26.96% 72 bp
Efficiency
ratio *** 61.47 62.32 64.47 65.09 70.38 (85)
Net interest
margin # 4.46 4.52 4.58 4.66 4.61 (6)
Return on average
assets # 1.28 1.24 1.17 1.19 0.97 4
Return on average
equity # 16.58 16.00 14.84 15.61 12.81 58
Equity to assets
(average) 7.70 7.76 7.90 7.62 7.59 (6)
PER SHARE SUMMARY
Earnings per
share - primary $0.82 $0.76 $0.68 $0.70 $0.57 7.9%
Earnings per
share - fully
diluted 0.82 0.76 0.68 0.70 0.57 7.9
Cash dividends
paid 0.27 0.27 0.25 0.25 0.25 0.0
Book value per
share 20.45 19.46 19.08 18.51 18.04 5.1
Closing market
price 55.063 45.875 39.000 44.625 38.625 20.0
KEY INTANGIBLE ASSETS **
Goodwill $95,012 $61,833 $63,122 $64,411 $66,348 53.7%
Deposit base
premium 2,015 2,143 2,272 2,401 2,742 (6.0)
Mortgage servicing
rights 28,275 23,028 21,481 21,046 19,712 22.8
ASSET QUALITY SUMMARY **
Nonperforming
assets $28,633 $27,740 $26,768 $22,873 $20,398 3.2%
Allowance for
loan losses 62,282 59,206 58,762 58,715 60,329 5.2
Nonperforming
assets to
total assets 0.42% 0.42% 0.42% 0.36% 0.33% 0 bp
Allowance for loan
losses to loans 1.38 1.40 1.42 1.43 1.43 (2)
Net charge-offs to
average loans # 0.26 0.26 0.28 0.41 0.13 0
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.
*** Noninterest expense divided by sum of noninterest income plus net
interest income, taxable equivalent basis.
+ Sum of income before taxes plus the taxable equivalent adjustment
divided by the sum of taxable equivalent net interest income plus
noninterest income.
# Data presented is annualized.
SOURCE Centura Banks Inc.
 back to top
CONTACT:
Steven Goldstein, Chief Financial Officer,
Centura Banks Inc., 919-977-8356 or sgoldstein@centura.com
|
