EX-99 3 a4488034_ex991.txt AMSOUTH EXHIBIT 99.1 Exhibit 99.1 AmSouth Reports Record Third Quarter Earnings of $157.4 Million or $.45 Per Share To hear a webcast of the conference call with analysts at 2 p.m. CDT, Oct. 14, go to www.amsouth.com and click on the webcast link under "Message Center." For supplemental financial information about the third quarter results, visit the Investor Relations Resource Center on AmSouth's web site at www.amsouth.com/irrc. BIRMINGHAM, Ala.--(BUSINESS WIRE)--Oct. 14, 2003--AmSouth Bancorporation (NYSE:ASO) today reported earnings for the third quarter ended Sept. 30, 2003, of $.45 per diluted share compared to $.43 per diluted share reported for the third quarter of 2002. Net income for the third quarter of 2003 was a record $157.4 million versus $156.0 million for the same period in 2002. AmSouth's third quarter performance resulted in a return on average equity of 20.2 percent, a return on average assets of 1.44 percent and an efficiency ratio of 52.6 percent. "The third quarter was characterized by broad-based growth in both deposits and loans, and improving credit quality trends," said Dowd Ritter, AmSouth's chairman, president and chief executive officer. "Our ability to produce solid results across our consumer, commercial and wealth management lines of business is key to our delivering sustainable earnings growth." Net interest income was $343.5 million in the third quarter, while the net interest margin declined, as expected, to 3.60 percent. Gains from the sale of investment securities and increases in revenues from service charges, trust services, mortgage income and other noninterest revenues, compared to the third quarter of 2002, more than offset the decline in net interest income. "We expect net interest income to be higher in the fourth quarter due to stabilization in the net interest margin, continued loan growth and a slower pace of prepayments on loans and investments," said Ritter. Average loans for the quarter grew by $2.8 billion, a 10.8 percent increase over the same quarter in 2002. Average deposits were higher by $3.3 billion, or 12.8 percent during the same period, including a 13.7 percent increase in average low-cost deposits and a 4.8 percent increase in core time deposits. Noninterest revenue, which includes earnings from service charges, trust, investment management services, securities gains and other sources of fee income, was $228.8 million for the quarter, an increase of $40.4 million, or 21.5 percent, compared with the same quarter in 2002. Noninterest expenses in the third quarter were $306.6 million, up 11.1 percent compared with the third quarter of 2002 and primarily reflected continuing investments in branch expansion and other revenue producing initiatives. Net charge-offs were .58 percent of average net loans in the third quarter, improving from .60 percent in the second quarter. The ratio of loan loss reserves to total loans was 1.32 percent at Sept. 30, 2003, and reflected continued improvement in credit quality trends and a shift in the loan portfolio mix to include a greater proportion of residential mortgages. Nonperforming assets continued to decline during the third quarter. Total nonperforming assets at Sept. 30, 2003, were $161.8 million, or .55 percent of loans net of unearned income, foreclosed properties and repossessions, compared to $175.4 million, or .62 percent, in the second quarter. For supplemental financial information about the third quarter results, you may refer to the Form 8-K filed by AmSouth with the Securities and Exchange Commission on Oct. 14, 2003, or visit the Investor Relations Resource Center on AmSouth's web site at www.amsouth.com. About AmSouth AmSouth is a regional bank holding company with $44 billion in assets, 600 branch banking offices and more than 1,200 ATMs. AmSouth operates in Tennessee, Alabama, Florida, Mississippi, Louisiana and Georgia. AmSouth is a leader among regional banks in the Southeast in several key business segments, including consumer and commercial banking, small business banking, mortgage lending, equipment leasing, annuity and mutual fund sales, and trust and investment management services. AmSouth also offers a complete line of banking products and services at its web site, www.amsouth.com. Forward Looking Statements Statements made in this document which are not purely historical are forward-looking statements as defined in the "Private Securities Litigation Reform Act of 1995," including any statements regarding descriptions of management's plans, objectives or goals for future operations, products or services, and forecasts of its revenues, earnings or other measures of performance. Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond AmSouth's control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The achievement of management's expectations for net interest income growth in the fourth quarter of 2003 will be dependent on stabilization of the net interest margin and continued loan growth, a slower pace of prepayments on loans and investments, and no material decline in interest rates from current levels. AmSouth's most recent annual report on Form 10-K for the year ended December 31, 2002, and quarterly reports on Form 10-Q for the quarters ended March 31 and June 30, 2003, also describe factors which could cause results to differ materially from management's current expectations including, but not limited to: the execution of AmSouth's strategic initiatives; legislation and regulation; general economic conditions, especially in the Southeast; the performance of the stock and bond markets; changes in interest rates, yield curves and interest rate spread relationships; prepayment speeds within the loan and investment security portfolios; deposit flows; the cost of funds; cost of federal deposit insurance premiums; demand for loan products; demand for financial services; competition; changes in the quality or composition of AmSouth's loan and investment portfolios including capital market inefficiencies that may affect the marketability and valuation of available-for-sale securities; changes in accounting and tax principles, policies or guidelines; other economic, competitive, governmental, and regulatory factors affecting AmSouth's operations, products, services and prices; unexpected judicial actions and developments; and the outcome of litigation, which is inherently uncertain and depends on the findings of judges and juries. To the extent that terrorist attacks or other hostilities, including geopolitical conflicts, cause a prolonged negative impact on the economy, the effects may include: adverse changes in customers' borrowing, investing or spending patterns; market disruptions; adverse effects on the performance of the United States and foreign equity markets; currency fluctuations; exchange controls; restriction of asset growth; negative effects on credit quality; and other effects that could adversely impact the performance, earnings and revenue growth of the financial services industry, including AmSouth. Forward-looking statements speak only as of the date they are made. AmSouth does not undertake a duty to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands, except per share data) EARNINGS SUMMARY Three Months Ended ------------------------------------ 2003 September 30 June 30 March 31 ------------------------------------ Net interest income $343,453 $349,356 $363,042 Provision for loan losses 41,800 42,700 44,700 ------------------------------------ Net interest income after provision 301,653 306,656 318,342 Noninterest revenues 228,785 210,718 192,885 Noninterest expenses 306,556 298,622 289,606 ------------------------------------ Income before income taxes 223,882 218,752 221,621 Income taxes 66,494 63,927 66,265 ------------------------------------ Net income $157,388 $154,825 $155,356 ==================================== Earnings per common share $0.45 $0.44 $0.44 Earnings per common share - diluted 0.45 0.44 0.44 Average common shares outstanding 349,421 349,509 351,981 Average common shares outstanding - diluted 353,317 353,354 355,265 End of period common shares outstanding 350,621 350,477 351,645 EARNINGS SUMMARY Three Months Ended Percent ------------------------ Change 2002 Versus Prior December 31 September 30 Year ----------------------------------- Net interest income $360,483 $364,385 (5.7%) Provision for loan losses 53,450 51,400 (18.7%) ----------------------- Net interest income after provision 307,033 312,985 (3.6%) Noninterest revenues 192,234 188,336 21.5% Noninterest expenses 276,684 276,031 11.1% ----------------------- Income before income taxes 222,583 225,290 (0.6%) Income taxes 67,376 69,289 (4.0%) ----------------------- Net income $155,207 $156,001 0.9% ======================= Earnings per common share $0.44 $0.44 2.3% Earnings per common share - diluted 0.44 0.43 4.7% Average common shares outstanding 353,792 357,567 Average common shares outstanding - diluted 356,784 361,961 End of period common shares outstanding 353,424 357,787 EARNINGS SUMMARY YTD Percent ------------------------- Change 2003 2002 Versus Prior September 30 September 30 Year ----------------------------------- Net interest income $1,055,851 $1,112,157 (5.1%) Provision for loan losses 129,200 160,100 (19.3%) ----------------------- Net interest income after provision 926,651 952,057 (2.7%) Noninterest revenues 632,388 547,127 15.6% Noninterest expenses 894,784 849,938 5.3% ----------------------- Income before income taxes 664,255 649,246 2.3% Income taxes 196,686 195,306 0.7% ----------------------- Net income $467,569 $453,940 3.0% ======================= Earnings per common share $1.33 $1.26 5.6% Earnings per common share - diluted 1.32 1.25 5.6% Average common shares outstanding 350,294 359,653 Average common shares outstanding - diluted 353,971 364,197 End of period common shares outstanding 350,621 357,787 KEY PERFORMANCE RATIOS Three Months Ended -------------------------------- 2003 September 30 June 30 March 31 -------------------------------- Average shareholders' equity to average total assets 7.14% 7.43% 7.60% End of period shareholders' equity to end of period total assets 7.11 7.18 7.42 Loans net of unearned income to total deposits 98.85 96.99 98.92 Return on average assets (annualized) 1.44 1.48 1.54 Return on average shareholders' equity (annualized) 20.18 19.95 20.26 Book value per common share $8.99 $8.98 $8.89 Tangible book value per common share $8.13 $8.12 $8.03 Net interest margin - taxable equivalent 3.60% 3.84% 4.11% Efficiency ratio 52.58 52.26 51.02 KEY PERFORMANCE RATIOS Three Months Ended --------------------------- 2002 December 31 September 30 --------------------------- Average shareholders' equity to average total assets 7.73% 7.93% End of period shareholders' equity to end of period total assets 7.68 7.88 Loans net of unearned income to total deposits 100.13 98.70 Return on average assets (annualized) 1.55 1.60 Return on average shareholders' equity (annualized) 20.01 20.19 Book value per common share $8.82 $8.73 Tangible book value per common share $7.96 $7.88 Net interest margin - taxable equivalent 4.12% 4.28% Efficiency ratio 48.98 48.83 KEY PERFORMANCE RATIOS YTD --------------------------- 2003 2002 September 30 September 30 --------------------------- Average shareholders' equity to average total assets 7.38% 7.91% End of period shareholders' equity to end of period total assets 7.11 7.88 Loans net of unearned income to total deposits 98.85 98.70 Return on average assets (annualized) 1.49 1.59 Return on average shareholders' equity (annualized) 20.13 20.13 Book value per common share $8.99 $8.73 Tangible book value per common share $8.13 $7.88 Net interest margin - taxable equivalent 3.84% 4.46% Efficiency ratio 51.96 50.05 Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) BALANCE SHEET INFORMATION Three Months Ended AVERAGE BALANCES -------------------------------------- 2003 September 30 June 30 March 31 -------------------------------------- Loans net of unearned income $28,667,773 $28,265,837 $27,829,798 Total investment securities (a) 10,008,025 9,086,673 8,969,417 Interest-earning assets (a) 39,075,134 37,708,903 36,953,359 Total assets 43,315,707 41,917,998 40,942,836 Noninterest-bearing deposits 5,605,708 5,329,351 5,144,378 Interest-bearing deposits (b) 23,598,915 22,766,452 22,042,248 Total deposits (b) 29,204,623 28,095,803 27,186,626 Shareholders' equity 3,094,790 3,112,945 3,110,406 BALANCE SHEET INFORMATION Three Months Ended Percent AVERAGE BALANCES ------------------------ Change 2002 Versus Prior December 31 September 30 Year ------------------------------------- Loans net of unearned income $26,817,982 $25,877,960 10.8% Total investment securities (a) 8,523,874 8,436,889 18.6% Interest-earning assets (a) 35,911,164 34,935,229 11.9% Total assets 39,837,967 38,650,360 12.1% Noninterest-bearing deposits 5,050,493 4,892,434 14.6% Interest-bearing deposits (b) 21,815,373 21,006,686 12.3% Total deposits (b) 26,865,866 25,899,120 12.8% Shareholders' equity 3,077,837 3,065,629 1.0% BALANCE SHEET INFORMATION YTD Percent AVERAGE BALANCES ------------------------------ Change Versus 2003 2002 Prior September 30 September 30 Year -------------------------------------- Loans net of unearned income $28,257,539 $25,619,749 10.3% Total investment securities (a) 9,358,509 8,361,066 11.9% Interest-earning assets (a) 37,920,237 34,482,210 10.0% Total assets 42,067,539 38,135,437 10.3% Noninterest-bearing deposits 5,361,502 4,858,834 10.3% Interest-bearing deposits (b) 22,808,241 20,773,877 9.8% Total deposits (b) 28,169,743 25,632,711 9.9% Shareholders' equity 3,105,990 3,015,084 3.0% (a) Excludes adjustment for market valuation on available-for-sale securities and certain noninterest-earning marketable equity securities. (b) Statement 133 valuation adjustments related to time deposits, certificates of deposit of $100,000 or more and other interest- bearing liabilities are included in other liabilities. BALANCE SHEET INFORMATION Three Months Ended ENDING BALANCES ------------------------------------- 2003 September 30 June 30 March 31 ------------------------------------- Loans net of unearned income $29,128,404 $28,222,542 $27,698,948 Total investment securities (a) 11,011,789 10,522,760 9,623,430 Interest-earning assets (a) 40,341,180 39,296,146 37,811,324 Total assets 44,342,699 43,784,207 42,099,499 Noninterest-bearing deposits 5,839,977 5,849,456 5,569,319 Interest-bearing deposits 23,628,246 23,249,370 22,431,130 Total deposits 29,468,223 29,098,826 28,000,449 Shareholders' equity 3,152,834 3,145,575 3,125,179 BALANCE SHEET INFORMATION Three Months Ended Percent ENDING BALANCES ------------------------ Change 2002 Versus Prior December 31 September 30 Year ------------------------------------- Loans net of unearned income $27,350,918 $26,286,850 10.8% Total investment securities (a) 8,966,778 8,455,635 30.2% Interest-earning assets (a) 36,475,398 35,424,764 13.9% Total assets 40,571,272 39,610,727 11.9% Noninterest-bearing deposits 5,494,657 5,181,668 12.7% Interest-bearing deposits 21,820,967 21,450,134 10.2% Total deposits 27,315,624 26,631,802 10.7% Shareholders' equity 3,115,997 3,122,747 1.0% (a) Excludes adjustment for market valuation on available-for-sale securities and certain noninterest-earning marketable equity securities. Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) NONPERFORMING ASSETS 2003 2002 September June 30 March 31 December September 30 31 30 -------------------- --------- --------- --------- --------- --------- Nonaccrual loans (c) $120,793 $127,645 $149,551 $158,829 $151,442 Foreclosed properties 35,163 40,656 34,622 33,828 32,567 Repossessions 5,890 7,058 7,082 4,346 4,716 --------- --------- --------- --------- --------- Total nonperforming assets (c) $161,846 $175,359 $191,255 $197,003 $188,725 ========= ========= ========= ========= ========= Nonperforming assets to loans net of unearned income, foreclosed properties and repossessions 0.55% 0.62% 0.69% 0.72% 0.72% Accruing loans 90 days past due $72,588 $67,454 $80,585 $91,045 $93,700 ========= ========= ========= ========= ========= (c) Exclusive of accruing loans 90 days past due ALLOWANCE FOR LOAN LOSSES 2003 2002 3rd 2nd 1st 4th 3rd Quarter Quarter Quarter Quarter Quarter -------------------- --------- --------- --------- --------- --------- Balance at beginning of period $384,011 $383,936 $381,579 $379,878 $371,418 Loans charged off (55,102) (55,565) (52,988) (61,334) (53,928) Recoveries of loans previously charged off 13,350 12,940 10,645 9,585 10,988 --------- --------- --------- --------- --------- Net Charge-offs (41,752) (42,625) (42,343) (51,749) (42,940) Addition to allowance charged to expense 41,800 42,700 44,700 53,450 51,400 --------- --------- --------- --------- --------- Balance at end of period $384,059 $384,011 $383,936 $381,579 $379,878 ========= ========= ========= ========= ========= Allowance for loan losses to loans net of unearned income 1.32% 1.36% 1.39% 1.40% 1.45% Net charge-offs to average loans net of unearned income (d) 0.58% 0.60% 0.62% 0.77% 0.66% Allowance for loan losses to nonperforming loans (c) 317.95% 300.84% 256.73% 240.25% 250.84% Allowance for loan losses to nonperforming assets (c) 237.30% 218.99% 200.75% 193.69% 201.29% (c) Exclusive of accruing loans 90 days past due (d) Annualized CONTACT: AmSouth Bancorporation, Birmingham Investment Community: List Underwood, 205-801-0265 or News Media: Rick Swagler, 205-801-0105