ROCKY MOUNT, N.C., Jan. 6 /PRNewswire/ -- Centura Banks Inc. (NYSE: CBC)
announced today that net income for the year 1996 rose 12 percent to $72.4
million, excluding a one-time special assessment on deposits. Fully diluted
earnings per share, without the assessment, rose to $2.77 per share compared
to $2.46 the prior year. For the fourth quarter fully diluted earnings
per share was 70 cents.
The special charge on deposits, taken during the third quarter, was
assessed by the federal government on financial institutions that have
acquired thrift deposits in recent years in order to recapitalize the Savings
Association Insurance Fund (SAIF). Including the assessment, Centura's net
income rose 5 percent to $68 million, or $2.61 per fully diluted share.
"This has been a year of tremendous growth and progress," said Centura
President Cecil W. Sewell Jr., who becomes chairman and CEO in February when
current Chairman Robert R. Mauldin retires. "It is especially rewarding to see
earnings growth like this in light of our continued investments in new sources
of revenue and technology."
Sewell cited several factors for the positive performance, including
continued growth in securities and insurance activities, new ventures into
consumer finance and technology leasing, and successful introductions of
supermarket banking, online banking and a new line of checking accounts.
Noninterest income for 1996 increased 26 percent to $101 million, led by
brokerage, insurance and deposit fees, income from mortgage activities and
higher contributions from the trust division. Loan growth was strong during
the first half of the year and ended at $4.1 billion, 5 percent higher than
1995. Deposits rose 7 percent to $4.7 billion, while the net interest margin
remained stable.
Excluding the special assessment, return on assets for the year was 1.22
percent, and return on equity was 15.92 percent. Including the assessment,
return on assets was 1.14 percent, and return on equity was 15.02 percent.
Asset quality remained in line with industry standards, even as the bank
charged off several problem loans during the fourth quarter. Net charge-offs
were .18 percent of total loans, and nonperforming loans were .47 percent of
total loans.
"In 1997, we expect these positive trends to accelerate as we make greater
use of our extensive profitability data and sophisticated database marketing
techniques combined with aggressive advertising and promotion, an expanding
supermarket and ATM network and a more streamlined, focused sales
organization," Sewell said. "In addition, we are implementing plans to improve
processes and greatly enhance efficiency in critical areas of the company."
Centura repurchased approximately 1.2 million shares of its own stock in
1996, primarily in connection with several acquisitions. During the year,
Centura acquired First Commercial Holding Corp. in Asheville, N.C., First
Community Bank in Gastonia, N.C., FirstSouth Bank in Burlington, N.C., CLG
Leasing in Raleigh, N.C., and purchased a 49 percent interest in First
Greensboro Home Equity in Greensboro, N.C.
With assets of $6.3 billion, Centura provides a complete line of banking,
investment, insurance and trust services to individuals and businesses
throughout North Carolina. Centura provides financial services through: 166
financial stores, including 11 supermarkets; more than 255 ATMs, including
every N.C. Wal-Mart and Sam's store; the Centura Highway telephone center;
Quicken, QuickBooks and Microsoft Money software and America Online. More
information about Centura is available on the World Wide Web at
http://www.centura.com.
FINANCIAL HIGHLIGHTS
CENTURA BANKS, INC. AND SUBSIDIARY
3 Months 3 Months Year Year
Ended Ended Ended Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1996 1995 Change 1996 1995 Change
(In thousands, except share and per share data)
EARNINGS
Interest income $123,095 $113,539 8.4% $469,760 $417,635 12.5%
Interest expense 57,011 54,749 4.1 219,676 192,990 13.8
Net interest income 66,084 58,790 12.4 250,084 224,645 11.3
Provision for loan
losses 2,746 1,968 39.5 9,596 7,904 21.4
Noninterest income 27,303 23,381 16.8 100,847 80,110 25.9
Noninterest expense 61,860 54,806 12.9 233,981 195,7771 9.5
Income taxes 10,246 8,797 16.5 39,203 36,421 7.6
Net income $18,535 $16,600 11.7% $68,151 $64,653 5.4%
Net interest income,
taxable equivalent $67,738 $60,165 12.6% $256,109 $229,827 11.4%
PER COMMON SHARE
Net income-primary $0.70 $0.62 12.9% $2.61 $2.46 6.1%
Net income-fully
diluted 0.70 0.62 12.9 2.61 2.46 6.1
Cash dividends paid 0.25 0.23 8.7 1.00 0.85 17.6
Book value 18.51 17.19 7.7 18.51 17.19 7.7
Closing market price 44.625 35.125 27.0 44.625 35.125 27.0
FINANCIAL RATIOS
Return on average
assets 1.19% 1.18% 1bp 1.14% 1.25% (11)bp
Return on average
shareholders' equity 15.61 14.61 100 15.02 15.22 (20)
Equity to assets
(average) 7.62 8.05 (43) 7.62 8.21 (59)
AVERAGE BALANCES
Assets $6,197,670 $5,597,069 10.7% $5,956,290 $5,177,851 15.0%
Earning assets 5,703,321 5,140,771 10.9 5,484,974 4,753,846 15.4
Loans 4,181,963 3,866,578 8.2 4,014,391 3,638,129 10.3
Investment
securities 1,491,008 1,239,565 20.3 1,436,215 1,082,695 32.7
Noninterest-bearing
deposits 690,111 614,168 12.4 647,245 571,606 13.2
Core deposits 4,368,319 3,871,233 12.8 4,101,773 3,646,473 12.5
Total deposits 4,723,099 4,346,241 8.7 4,505,449 4,035,623 11.6
Interest-bearing
liabilities 4,944,155 4,443,208 11.3 4,765,846 4,098,579 16.3
Shareholders'
equity 472,484 450,692 4.8 453,746 424,877 6.8
PERIOD END BALANCES
Assets $6,293,972 $5,784,548 8.8% $6,293,972 $5,784,548 8.8%
Earning assets 5,720,001 5,273,536 8.5 5,720,001 5,273,536 8.5
Loans 4,109,454 3,898,436 5.4 4,109,454 3,898,436 5.4
Investment
securities 1,577,880 1,328,625 18.8 1,577,880 1,328,625 18.8
Noninterest-bearing
deposits 721,029 656,592 9.8 721,029 656,592 9.8
Core deposits 4,386,616 3,948,325 11.1 4,386,616 3,948,325 11.1
Total deposits 4,733,069 4,443,791 6.5 4,733,069 4,443,791 6.5
Shareholders'
equity 475,235 443,311 7.2 475,235 443,311 7.2
bp Change is measured as difference in basis points.
OTHER FINANCIAL DATA
CENTURA BANKS, INC. AND SUBSIDIARY
3 Months 3 Months Year Year
Ended Ended Ended Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1996 1995 Change 1996 1995 Change
(In thousands, except share data)
SHARES OUTSTANDING
Average
primary 26,304,896 26,641,134 (1.3)% 26,117,437 26,262,643 (0.6)%
Average fully
diluted 26,308,483 26,668,066 (1.3) 26,139,034 26,324,791 (0.7)
Outstanding 25,668,524 25,785,370 (0.5) 25,668,524 25,785,370 (0.5)
COMPOSITION RATIOS*
Earning assets
to assets 92.02% 91.85% 17bp 92.09% 91.81% 28bp
Loans to earning
assets 73.33 75.21 (188) 73.19 76.53 (334)
Interest-bearing
liabilities to
earning assets 86.69 86.43 26 86.89 86.22 67
Loans to total
deposits 88.54 88.96 (42) 89.10 90.15 (105)
Noninterest-bearing
deposits to total
deposits 14.61 14.13 48 14.37 14.16 21
ALLOWANCE FOR LOAN LOSSES
Beginning
balance $60,329 $55,019 9.7% $55,070 $48,164 14.3%
Provision for
loan losses 2,746 1,968 39.5 9,596 7,904 21.4
Allowance of acquired
financial
institutions -- -- -- 1,240 3,460 (64.2)
Charge-offs (4,995) (3,389) 47.4 (10,408) (8,306) 25.3
Recoveries 635 1,472 (56.9) 3,217 3,848 (16.4)
Net charge-offs (4,360) (1,917) 127.4 (7,191) (4,458) 61.3
Ending balance $58,715 $55,070 6.6% $58,715 $55,070 6.6%
Net charge-offs to
average loans 0.41% 0.20% 21bp 0.18% 0.12% 6bp
COMPOSITION OF RISK ASSETS
Nonaccrual loans $18,713 $18,321 2.1%
Restructured loans 497 954 (47.9)
Nonperforming loans 19,210 19,275 (0.3)
Foreclosed property 3,663 2,872 27.5
Nonperforming assets $22,873 $22,147 3.3%
ASSET QUALITY RATIOS**
Nonperforming assets to:
Loans and foreclosed property 0.56% 0.57% (1)bp
Total assets 0.36 0.38 (2)
Nonperforming loans to total loans 0.47 0.49 (2)
Allowance for loan losses to total loans 1.43 1.41 2
Allowance for loan losses to nonperforming loans 3.06 x 2.86 x 19
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 SUBSIDIARY
3 Months 3 Months As a Year Year As a
Ended Ended Percent Ended Ended Percent
Dec. 31 Dec. 31 of Avg. Dec. 31 Dec. 31 of Avg.
1996 1995 Change Assets 1996 1995 Change Assets
(Dollars in thousands) 1996 1995 1996 1995
NONINTEREST INCOME
Service charges
on deposit
accounts $9,401 $8,349 12.6% 0.60% 0.59% $34,758 $29,686 17.1% 0.58% 0.57%
Credit card
and related
fees 1,391 1,167 19.2 0.09 0.08 4,979 4,220 18.0 0.08 0.08
Insurance &
brokerage
commissions
2,948 2,080 41.7 0.19 0.15 11,097 7,013 58.2 0.19 0.14
Other service
charges,
commissions and
fees 1,947 898 116.8 0.12 0.06 5,926 3,403 74.1 0.10 0.07
Fees for
trust ser-
vices 1,900 1,527 24.4 0.12 0.11 6,841 6,108 12.0 0.11 0.12
Mortgage
income 2,591 2,597 (0.2) 0.17 0.18 11,486 7,104 61.7 0.19 0.14
Negative
goodwill amorti-
zation 334 334 0.0 0.02 0.02 1,337 1,337 0.0 0.02 0.03
Operating
lease
fees 3,226 3,495 (7.7) 0.21 0.25 12,745 11,779 8.2 0.21 0.23
Other
noninterest
income 3,449 2,935 17.5 0.23 0.22 9,880 10,074 (1.9) 0.18 0.18
Noninterest
income, ex-
cluding sec-
urities
trans-
actions 27,187 23,382 16.3 1.75 1.66 99,049 80,724 22.7 1.66 1.56
Securities
gains
(losses),
net 116 (1) -- 0.01 0.00 1,798 (614)(392.8) 0.03 (0.01)
Total non-
interest
in-
come $27,303 $23,381 16.8% 1.76% 1.66% $100,847 $80,110 25.9% 1.69% 1.55%
NONINTEREST EXPENSE
Salaries
and over-
time $24,115 $21,126 14.2% 1.55% 1.50% $88,411 $77,039 14.8% 1.48% 1.49%
Fringe
benefits
and other
per-
sonnel
costs 4,892 4,993 (2.0) 0.31 0.35 21,256 18,747 13.4 0.36 0.36
Occu-
pancy 3,209 3,020 6.3 0.21 0.21 12,657 11,732 7.9 0.21 0.23
Equip-
ment 5,437 4,059 34.0 0.35 0.29 19,556 14,478 35.1 0.33 0.28
Fore-
closed
real estate
losses and
related
operating
expense 299 317 (5.7) 0.02 0.02 756 682 10.9 0.01 0.01
Market-
ing 2,730 1,613 69.3 0.18 0.11 7,549 6,195 21.9 0.13 0.12
Pro-
fessional
fees 5,453 3,325 64.0 0.35 0.24 14,589 9,432 54.7 0.24 0.18
Other admin-
istra-
tive 4,649 2,345 98.3 0.30 0.17 8,544 7,930 7.7 0.14 0.15
FDIC
insur-
ance (4) 1,200 -- 0.00 0.09 10,197 5,727 78.1 0.17 0.11
Deposit
intangible
and goodwill
amortiza-
tion 1,343 1,210 11.0 0.09 0.09 5,034 4,148 21.4 0.08 0.08
Office supplies,
postage
and tele-
phone 4,243 3,724 13.9 0.27 0.26 16,188 13,452 20.3 0.27 0.26
Depre-
ciation
on leased
equip-
ment 1,357 2,373 (42.8) 0.09 0.17 7,944 7,192 10.5 0.13 0.14
Other
operat-
ing 4,137 5,501 (24.8) 0.25 0.38 21,300 19,023 12.0 0.38 0.37
Total
non-interest
expense
$61,860 $54,806 12.9% 3.97% 3.88% $233,981 $195,777 19.5% 3.93% 3.78%
OTHER PERFORMANCE RATIOS
Pretax
operating
profit mar-
gin + 32.02% 32.04% (2)bp 31.76% 34.28% (252)bp
Efficiency
ratio
*** 65.09% 65.60% (51)bp 65.55% 63.17% 238bp
Net interest income analysis-taxable equivalent:
Selected
average
yields/
rates:
Loans 9.34% 9.56% (22)bp 9.45% 9.60% (15)bp
Taxable
securi-
ties 6.65 6.51 14 6.48 6.43 5
Tax-exempt
securi-
ties 8.99 8.39 60 8.87 8.70 17
Short-term
invest-
ments 5.43 6.36 (93) 5.20 6.49 (129)
Interest-
earning
as-
sets 8.63 8.82 (19) 8.67 8.88 (21)
Total interest-
bearing
depos-
its 4.35 4.67 (32) 4.38 4.44 (6)
Borrowed
funds 5.25 5.71 (46) 5.17 5.80 (63)
Long-term
debt 6.47 6.43 4 6.32 6.64 (32)
Total interest-
bearing
liabili-
ties 4.59 4.89 (30) 4.61 4.71 -10
Interest rate
spead 4.04 3.93 11 4.06 4.17 (11)
Net interest
mar-
gin 4.66 4.60 6 4.66 4.82 (16)
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 SUBSIDIARY
1996 1995 4th Qtr 96
(Dollars in Fourth Third Second First Fourth vs.
thousands) Quarter Quarter Quarter Quarter Quarter 3rd Qtr 96
FINANCIAL SUMMARY *
Assets $6,197,670 $6,024,327 $5,848,330 $5,751,434 $5,597,069 2.9% bp
Earning
assets 5,703,321 5,544,087 5,384,075 5,305,364 5,140,771 2.9
Loans 4,181,963 4,097,846 3,954,978 3,820,022 3,866,578 2.1
Investment
secur-
ities 1,491,008 1,407,955 1,395,395 1,450,207 1,239,565 5.9
Total
deposits 4,723,099 4,592,544 4,348,934 4,353,866 4,346,241 2.8
Interest-
bearing
liabil-
ities 4,944,155 4,813,779 4,692,359 4,610,606 4,443,208 2.7
Stockholders'
equity 472,484 457,072 438,358 446,830 450,692 3.4
Total market
capital-
ization
(period
end) 1,145,458 1,002,912 925,033 938,709 905,711 14.2
Net income 18,535 14,716 17,259 17,641 16,600 26.0
PROFITABILITY/PERFORMANCE SUMMARY *
Pretax
operating
profit
margin + 32.02% 26.96% 33.53% 34.77% 32.04% 506bp
Efficiency
ratio *** 65.09 70.38 63.71 62.80 65.60 (529)
Net interest
margin # 4.66 4.61 4.58 4.51 4.60 5
Return on
average
assets # 1.19 0.97 1.19 1.23 1.18 22
Return on
average
equity # 15.61 12.81 15.84 15.88 14.61 280
Equity to assets
(average) 7.62 7.59 7.50 7.77 8.05 3
PER SHARE SUMMARY
Earnings per share -
primary $0.70 $0.57 $0.67 $0.67 $0.62 22.8%
Earnings per share -
fully
diluted 0.70 0.57 0.67 0.67 0.62 22.8
Cash dividends
paid 0.25 0.25 0.25 0.25 0.23 0.0
Book value
per share 18.51 18.04 17.27 17.43 17.19 2.6
Closing market
price 44.625 38.625 36.750 36.750 35.125 15.5
KEY INTANGIBLE ASSETS **
Goodwill $64,411 $66,348 $50,599 $51,584 $52,590 (2.9)%
Deposit base
premium 2,401 2,742 2,896 3,050 3,203 (12.4)
Capitalized
excess
servicing 7,162 7,110 6,905 6,543 6,367 0.7
Capitalized
mortgage
servicing
rights 13,884 12,602 10,209 9,579 8,021 10.2
ASSET QUALITY SUMMARY **
Nonperforming
assets $22,873 $20,398 $22,466 $21,104 $22,147 12.1%
Allowance for
loan losses 58,715 60,329 58,011 56,483 55,070 (2.7)
Nonperforming
assets to
total assets 0.36% 0.33% 0.38% 0.36% 0.38% 3bp
Allowance for
loan losses
to loans 1.43 1.43 1.44 1.45 1.41 (0)
Net charge-offs
to average
loans # 0.41 0.13 0.09 0.07 0.20 28
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.
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CONTACT:
Ann K. Lawson, Principal Accounting Officer,
Centura Banks, Inc., 919-977-8285 or alawson@centura.com
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