ROCKY MOUNT, N.C., July 7 /PRNewswire/ -- Centura Banks Inc. (NYSE: CBC)
announced today that net income for the second quarter of 1997 increased 16
percent to $20.0 million compared to $17.3 million for the same quarter last
year. Fully diluted earnings per share increased to $0.76 in the second
quarter of 1997 from $0.67 in the comparable quarter of 1996.
For the first half of 1997, net income increased 9 percent to $37.9
million, or $1.44 per fully diluted share from $1.34 during the same period
last year.
Centura gained momentum in the second quarter, increasing earnings by 12
percent over the first quarter of 1997. The improvement was led by growth in
noninterest revenue, principally in brokerage, insurance and deposit fees, as
well as income from other earning assets. The efficiency ratio of 62.32
percent for the second quarter of 1997 has continued to improve as a result of
stable noninterest expense levels, coupled with revenue growth.
"The positive results of the second quarter underscore our core commitment
to improved operating efficiency and revenue growth," commented Cecil W.
Sewell, Centura's chairman and chief executive officer. "We are realizing the
benefits from investments in technology, which are enabling us to increase
income while holding expenses relatively constant.
Centura is well-positioned for an excellent second half of 1997 as we
continue to leverage the investments of the last several years."
For the quarter, return on assets was 1.24 percent and return on equity
was 16.00 percent. Deposits and loans increased significantly over the
previous quarter and over the comparable quarter in 1996. Deposits increased
by 2 percent to $4.8 billion and loans increased 3 percent to $4.2 billion at
June 30, 1997, compared to first quarter of 1997, while deposits and loans
increased 9 percent and 5 percent respectively over June 30, 1996.
Net charge-offs were 0.26 percent of average total loans for the quarter.
During the quarter, Centura announced its proposed acquisition of 13
offices from UCB/BB&T, expected to be completed during the third quarter.
Also, in June Centura completed its offering of $100 million of trust
preferred securities. In addition, the board of directors has authorized the
repurchase of up to 200,000 shares of common stock in the open market, related
to the anticipated exercise of stock options over the next twelve months.
With assets of $6.7 billion, Centura continues to focus on utilization of
technology and alternative delivery channels to effectively provide its
diverse line of financial services to individuals and businesses throughout
North Carolina and Virginia. More information about Centura is available on
its web site at http://www.centura.com.
FINANCIAL HIGHLIGHTS
CENTURA BANKS, INC. AND SUBSIDIARY
3 Months Ended June 30, 6 Months Ended June 30,
1997 1996 Change 1997 1996 Change
(In thousands, except share and per share data)
EARNINGS
Interest income $ 126,266 $ 114,366 10.4% $ 246,109 $ 227,670 8.1%
Interest expense 60,800 53,188 14.3 116,758 107,464 8.6
Net interest income 65,466 61,178 7.0 129,351 120,206 7.6
Provision for
loan losses 3,189 2,385 33.7 6,083 4,450 36.7
Noninterest income 27,196 23,833 14.1 53,181 48,412 9.9
Noninterest expense 58,996 55,086 7.1 118,028 108,548 8.7
Income taxes 10,497 10,281 2.1 20,567 20,720 (0.7)
Net income $ 19,980 $ 17,259 15.8% $ 37,854 $ 34,900 8.5%
Net interest income,
taxable equivalent $ 67,470 $ 62,630 7.7% $ 133,047 $123,180 8.0%
PER COMMON SHARE
Net income-primary $ 0.76 $ 0.67 13.4% $ 1.44 $ 1.34 7.5%
Net income-fully
diluted 0.76 0.67 13.4 1.44 1.34 7.5
Cash dividends paid 0.27 0.25 8.0 0.52 0.5 4.0
Book value 19.46 17.27 12.7 19.46 17.27 12.7
Closing market price 45.875 36.75 24.8 45.875 36.75 24.8
FINANCIAL RATIOS
Return on average
assets 1.24% 1.19% 5bp 1.21% 1.21% 0bp
Return on average
shareholders' equity 16.00 15.84 16 15.43 15.86 (43)
Equity to assets
(average) 7.76 7.50 26 7.83 7.63 20
AVERAGE BALANCES
Assets $6,453,981 $5,848,330 10.4% $6,320,093 $5,799,882 9.0%
Earning
assets 5,926,035 5,384,075 10.1 5,810,053 5,344,720 8.7
Loans 4,188,811 3,954,978 5.9 4,148,198 3,887,501 6.7
Investment
securities 1,710,960 1,395,395 22.6 1,632,254 1,422,801 14.7
Noninterest-bearing
deposits 684,472 631,045 8.5 671,295 616,886 8.8
Core
deposits 4,364,613 3,942,569 10.7 4,337,694 3,909,605 10.9
Total
deposits 4,725,511 4,348,934 8.7 4,691,646 4,351,399 7.8
Interest-bearing
liabilities 5,185,562 4,692,359 10.5 5,071,187 4,651,482 9.0
Shareholders'
equity 501,027 438,358 14.3 494,852 442,594 11.8
PERIOD END BALANCES
Assets $6,669,028 $5,928,686 12.5% $6,669,028 $5,928,686 12.5%
Earning
assets 6,092,168 5,411,989 12.6 6,092,168 5,411,989 12.6
Loans 4,243,868 4,033,351 5.2 4,243,868 4,033,351 5.2
Investment
securities 1,806,095 1,339,484 34.8 1,806,095 1,339,484 34.8
Noninterest-bearing
deposits 764,390 665,248 14.9 764,390 665,248 14.9
Core
deposits 4,460,541 4,047,847 10.2 4,460,541 4,047,847 10.2
Total
deposits 4,821,036 4,434,203 8.7 4,821,036 4,434,203 8.7
Shareholders'
equity 502,049 434,710 15.5 502,049 434,710 15.5
bp Change is measured as difference in basis points.
OTHER FINANCIAL DATA
3 Months Ended June 30, 6 Months Ended June 30,
1997 1996 Change 1997 1996 Change
(In thousands, except share data)
SHARES OUTSTANDING
Average
primary 26,295,247 25,834,383 1.8% 26,291,582 26,009,085 1.1%
Average fully
diluted 26,312,682 25,840,273 1.8 26,302,392 26,014,975 1.1
Outstanding 25,804,633 25,170,978 2.5 25,804,633 25,170,978 2.5
COMPOSITION RATIOS*
Earning assets
to assets 91.82% 92.06% (24)bp 91.93% 92.15% (22)bp
Loans to earning
assets 70.68 73.46 (278) 71.40 72.74 (134)
Interest-bearing
liabilities to
earning assets 87.50 87.15 35 87.28 87.03 25
Loans to total
deposits 88.64 90.94 (230) 88.42 89.34 (92)
Noninterest-bearing
deposits to
total deposits 14.48 14.51 (3) 14.31 14.18 13
ALLOWANCE FOR LOAN LOSSES
Beginning balance $58,762 $56,483 4.0% $58,715 $55,070 6.6%
Provision for
loan losses 3,189 2,385 33.7 6,083 4,450 36.7
Charge-offs (3,639) (2,148) 69.4 (7,256) (3,460) 109.7
Recoveries 894 1,291 (30.8) 1,664 1,951 (14.7)
Net charge-offs (2,745) (857) 220.3 (5,592) (1,509) 270.6
Ending balance $59,206 58,011 2.1% $59,206 $58,011 2.1%
Net charge-offs to
average loans 0.26% 0.09% 17bp 0.27% 0.08% 19bp
COMPOSITION OF RISK ASSETS
Nonaccrual loans $24,001 $18,845 27.4%
Restructured loans -- 828 (100.0)
Nonperforming loans 24,001 19,673 22.0
Foreclosed property 3,739 2,793 33.9
Nonperforming assets $27,740 $22,466 23.5%
ASSET QUALITY RATIOS**
Nonperforming assets to:
Loans and foreclosed property 0.65% 0.56% 9bp
Total assets 0.42 0.38 4
Nonperforming loans to total loans 0.57 0.49 8
Allowance for loan losses to total loans 1.40 1.44 (4)
Allowance for loan losses to nonperforming loans 2.47x 2.95x (48)
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
3 Months Ended June 30,
As a Percent of
Average Assets
(Dollars in thousands) 1997 1996 Change 1997 1996
NONINTEREST INCOME
Service charges on deposit accounts $9,632 $8,697 10.8% 0.60% 0.60%
Credit card and related fees 1,476 1,043 41.5 0.09 0.07
Insurance & brokerage commissions 3,537 2,913 21.4 0.22 0.20
Other service charges,
commissions and fees 1,862 1,357 37.2 0.12 0.09
Fees for trust services 1,950 1,645 18.5 0.12 0.11
Mortgage income 2,794 2,824 (1.1) 0.17 0.19
Negative goodwill amortization 335 335 0.0 0.02 0.02
Operating lease fees 2,736 3,399 (19.5) 0.17 0.24
Other noninterest income 2,906 944 207.8 0.18 0.07
Noninterest income, excluding
securities transactions 27,228 23,157 17.6 1.69 1.59
Securities gains (losses), net (32) 676(104.7) 0 0.05
Total noninterest income $27,196 $23,833 14.1% 1.69% 1.64%
6 Months Ended June 30,
(Dollars in thousands) As a Percent
Average Assets
1997 1996 Change 1997 1996
NONINTEREST INCOME
Service charges on deposit accounts $18,844 $16,739 12.6% 0.60% 0.58%
Credit card and related fees 2,770 2,109 31.3 0.09 0.07
Insurance & brokerage commissions 6,781 5,447 24.5 0.22 0.19
Other service charges,
commissions and fees 3,561 2,369 50.3 0.11 0.08
Fees for trust services 3,900 3,291 18.5 0.12 0.11
Mortgage income 5,467 6,187 (11.6) 0.17 0.21
Negative goodwill amortization 669 669 0.0 0.02 0.02
Operating lease fees 5,773 6,500 (11.2) 0.18 0.24
Other noninterest income 5,542 3,822 45.0 0.19 0.14
Noninterest income, excluding securities
transactions 53,307 47,133 13.1 1.70 1.64
Securities gains (losses), net (126) 1,279 (109.9) 0 0.04
Total noninterest income $53,181 $48,412 9.9% 1.7% 1.68%
3 Months Ended June 30,
As a Percent of
Average Assets
1997 1996 Change 1997 1996
NONINTEREST EXPENSE
Salaries and overtime $22,017 $21,476 2.5% 1.37% 1.48%
Fringe benefits and other
personnel costs 5,139 5,288 (2.8) 0.32 0.36
Occupancy 3,443 3,095 11.2 0.21 0.21
Equipment 5,300 4,880 8.6 0.33 0.34
Foreclosed real estate losses and related
operating expense 398 171 132.8 0.02 0.01
Marketing 2,123 1,425 49.0 0.13 0.10
Professional fees 5,600 2,969 88.6 0.35 0.20
Other administrative 1,976 2,029 (2.6) 0.12 0.14
FDIC insurance 323 841 (61.6) 0.02 0.06
Deposit intangible and goodwill
amortization 1,418 1,176 20.6 0.09 0.08
Office supplies, postage and telephone 4,065 4,036 0.7 0.25 0.28
Depreciation on leased equipment 1,889 2,360 (20.0) 0.12 0.16
Other operating 5,305 5,340 (0.7) 0.34 0.37
Total noninterest expense $58,996 $55,086 7.1% 3.67% 3.79%
6 Months Ended June 30,
As a Percent of
Average Assets
1997 1996 Change 1997 1996
NONINTEREST EXPENSE
Salaries and overtime $43,593 $42,525 2.5% 1.39% 1.47%
Fringe benefits and other
personnel costs 11,320 10,703 5.8 0.36 0.37
Occupancy 6,781 6,188 9.6 0.22 0.21
Equipment 10,465 9,288 12.7 0.33 0.32
Foreclosed real estate losses and related
operating expense 722 309 133.7 0.02 0.01
Marketing 4,146 3,126 32.6 0.13 0.11
Professional fees 10,226 5,809 76.0 0.33 0.20
Other administrative 4,017 4,007 0.3 0.13 0.14
FDIC insurance 639 1,803 (64.6) 0.02 0.06
Deposit intangible and
goodwill amortization 2,836 2,410 17.7 0.09 0.08
Office supplies, postage and telephone 8,571 7,908 8.4 0.27 0.27
Depreciation on leased equipment 3,807 4,385 (13.2) 0.12 0.16
Other operating 10,905 10,087 8.1 0.36 0.36
Total noninterest expense $118,028 $108,548 8.7% 3.77% 3.76%
3 Months Ended June 30, 6 Months Ended June 30,
1997 1996 Change 1997 1996 Change
OTHER PERFORMANCE RATIOS
Pretax operating
profit margin + 34.31% 33.53% 78 bp 33.36% 34.15% (79)bp
Efficiency ratio*** 62.32% 63.71% (139)bp 63.38% 63.26% 12 bp
Net interest income analysis-taxable equivalent:
Selected average yields/rates:
Loans 9.41% 9.31% 10bp 9.36% 9.39% (3)bp
Taxable securities 6.67 6.43 24 6.62 6.41 21
Tax-exempt
securities 8.91 8.88 3 8.86 8.81 5
Short-term
investments 5.56 4.68 88 5.47 4.95 52
Interest-earning
assets 8.62 8.55 7 8.59 8.59 0
Total interest-bearing
deposits 4.43 4.29 14 4.40 4.41 (1)
Borrowed funds 5.21 5.19 2 5.09 5.21 (12)
Long-term debt 6.51 6.25 26 6.36 6.35 1
Total interest-bearing
liabilities 4.69 4.56 13 4.63 4.65 (2)
Interest rate
spread 3.93 3.99 (6) 3.96 3.94 2
Net interest
margin 4.52 4.58 (6) 4.55 4.55 0
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
1997 1996 2nd Qtr 97
(Dollars in) Second First Fourth Third Second vs.
thousands Quarter Quarter Quarter Quarter Quarter 1st Qtr 97
FINANCIAL SUMMARY *
Assets $6,453,981 $6,184,718 $6,197,670 $6,024,327 $5,848,330 4.4%
Earning
assets 5,926,035 5,692,783 5,703,321 5,544,087 5,384,075 4.1
Loans 4,188,811 4,107,133 4,181,963 4,097,846 3,954,978 2.0
Investment
securities 1,710,960 1,552,675 1,491,008 1,407,955 1,395,395 10.2
Total
deposits 4,725,511 4,657,405 4,723,099 4,592,544 4,348,934 1.5
Interest-
bearing
liabilities 5,185,562 4,955,541 4,944,155 4,813,779 4,692,359 4.6
Stockholders'
equity 501,027 488,609 472,484 457,072 438,358 2.5
Total market
capitalization
(period end) 1,183,788 1,004,335 1,145,458 1,002,912 925,033 17.9
Net income 19,980 17,874 18,535 14,716 17,259 11.8
PROFITABILITY/PERFORMANCE SUMMARY *
Pretax operating
profit margin + 34.31% 32.37% 32.02% 26.96% 33.53% 194bp
Efficiency
ratio *** 62.32 64.47 65.09 70.38 63.71 (215)
Net interest
margin # 4.52 4.58 4.66 4.61 4.58 (6)
Return on average
assets # 1.24 1.17 1.19 0.97 1.19 7
Return on average
equity # 16.00 14.84 15.61 12.81 15.84 116
Equity to assets
(average) 7.76 7.90 7.62 7.59 7.50 (14)
PER SHARE SUMMARY
Earnings per share
- primary $ 0.76 $ 0.68 $ 0.70 $ 0.57 $ 0.67 11.8%
Earnings per share
- fully diluted 0.76 0.68 0.70 0.57 0.67 11.8
Cash dividends
paid 0.27 0.25 0.25 0.25 0.25 8.0
Book value per
share 19.46 19.08 18.51 18.04 17.27 2.0
Closing market
price 45.875 39.000 44.625 38.625 36.750 17.6
KEY INTANGIBLE ASSETS **
Goodwill $ 61,833 $ 63,122 $ 64,411 $ 66,348 $ 50,599 (2.0)%
Deposit base
premium 2,143 2,272 2,401 2,742 2,896 (5.7)
Mortgage
servicing rights 23,028 21,481 21,046 19,712 17,114 7.2
ASSET QUALITY SUMMARY **
Nonperforming
assets $ 27,740 $ 26,768 $ 22,873 $ 20,398 $ 22,466 3.6%
Allowance for
loan losses 59,206 58,762 58,715 60,329 58,011 0.8
Nonperforming
assets to total
assets 0.42% 0.42% 0.36% 0.33% 0.38% 0bp
Allowance for loan
losses to loans 1.40 1.42 1.43 1.43 1.44 (2)
Net charge-offs to
average loans # 0.26 0.28 0.41 0.13 0.09 (2)
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
|
