EX-99 3 a4545903_ex991.txt AMSOUTH EXHIBIT 99.1 Exhibit 99.1 AmSouth Reports Record Fourth Quarter Net Income of $158.6 Million on Higher Revenues; 2003 Earnings Reach Record $626.1 Million To hear a webcast of the conference call with analysts at 2 p.m. CST, Jan. 13, go to www.amsouth.com and click on the webcast link under "Message Center." For supplemental financial information about the fourth quarter and 2003 results, visit the Investor Relations Resource Center on AmSouth's web site at www.amsouth.com/irrc. BIRMINGHAM, Ala.--(BUSINESS WIRE)--Jan. 13, 2004--AmSouth Bancorporation (NYSE:ASO) today reported earnings in the fourth quarter ended Dec. 31, 2003, of $.45 per diluted share, a 2.3 percent increase from $.44 per diluted share in the fourth quarter of 2002. Net income for the fourth quarter of 2003 was $158.6 million versus $155.2 million for the same period in 2002. For the year, reported earnings were $626.1 million compared with $609.1 million in 2002. Diluted earnings per share were $1.77 for the year, a 5.4 percent increase from $1.68 per share in 2002. Return on equity for 2003 was 20 percent, return on assets was 1.47 percent and the efficiency ratio was 52 percent. "AmSouth delivered solid results throughout 2003, driven by improving loan demand and strong deposit growth," said Dowd Ritter, AmSouth's chairman, president and chief executive officer. "With good momentum in all of our lines of business, we enter 2004 focused on growth opportunities and enhanced performance." AmSouth's fourth quarter performance resulted in a return on average equity of 20 percent, a return on average assets of 1.41 percent and an efficiency ratio of 52 percent. Net interest income for the quarter increased 17.9 percent on an annualized basis compared to the third quarter, reaching $358.8 million. The net interest margin rose to 3.61 percent in the fourth quarter, compared to 3.60 percent in the third quarter. Total revenue increased 6.9 percent annualized compared with the previous quarter. Average loans grew by $2.4 billion in the fourth quarter, or 9 percent, to $29.3 billion compared with the same quarter in 2002, while total deposits grew $2.9 billion, or 11 percent. Noninterest income, which includes earnings from trust, investment management services and other sources of fee income, was $223.4 million, an increase of $31.2 million or 16 percent compared with the same quarter in 2002. Fourth quarter noninterest expenses were $310.8 million, an increase of 12 percent compared with the same quarter in 2002. Net charge-offs were .60 percent of average net loans in the fourth quarter of 2003, compared with .58 percent in the previous quarter. The ratio of loan loss reserves to total loans was 1.31 percent, down one basis point from the previous quarter. Total nonperforming assets at Dec. 31, 2003, were $147.8 million, or .50 percent of loans net of unearned income, foreclosed properties and repossessions, compared to $161.8 million or .55 percent in the previous quarter. About AmSouth AmSouth is a regional bank holding company with $46 billion in assets, more than 650 branch banking offices and over 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. 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, June 30, and September 30, 2003, describe factors which could cause results to differ materially from management's current expectations. Such factors include, but are 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; results of investigations, examinations, and reviews of regulatory and law enforcement authorities; 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 December 31 September 30 June 30 ---------------------------------------------------------------------- Net interest income $358,784 $343,453 $349,356 Provision for loan losses 44,500 41,800 42,700 ---------------------------------- Net interest income after provision 314,284 301,653 306,656 Noninterest revenues 223,390 228,785 210,718 Noninterest expenses 310,793 306,556 298,622 ---------------------------------- Income before income taxes 226,881 223,882 218,752 Income taxes 68,329 66,494 63,927 ---------------------------------- Net income $158,552 $157,388 $154,825 ================================== Earnings per common share $0.45 $0.45 $0.44 Earnings per common share - diluted 0.45 0.45 0.44 Average common shares outstanding 350,067 349,421 349,509 Average common shares outstanding - diluted 355,306 353,317 353,354 End of period common shares outstanding 351,891 350,622 350,477 Percent EARNINGS SUMMARY Three Months Ended Change ------------------------- Versus 2003 2002 Prior March 31 December 31 Year ---------------------------------------------------------------------- Net interest income $363,042 $360,483 (0.5%) Provision for loan losses 44,700 53,450 (16.7%) ------------------------- Net interest income after provision 318,342 307,033 2.4% Noninterest revenues 192,885 192,234 16.2% Noninterest expenses 289,606 276,684 12.3% ------------------------- Income before income taxes 221,621 222,583 1.9% Income taxes 66,265 67,376 1.4% ------------- ----------- Net income $155,356 $155,207 2.2% ============= =========== Earnings per common share $0.44 $0.44 2.3% Earnings per common share - diluted 0.44 0.44 2.3% Average common shares outstanding 351,981 353,792 Average common shares outstanding - diluted 355,265 356,784 End of period common shares outstanding 351,645 353,424 Percent EARNINGS SUMMARY YTD Change ------------------------ Versus 2003 2002 Prior December 31 December 31 Year ------------------------------------------------ --------------------- Net interest income $1,414,635 $1,472,640 (3.9%) Provision for loan losses 173,700 213,550 (18.7%) ------------ ----------- Net interest income after provision 1,240,935 1,259,090 (1.4%) Noninterest revenues 855,778 739,361 15.7% Noninterest expenses 1,205,577 1,126,622 7.0% ------------ ----------- Income before income taxes 891,136 871,829 2.2% Income taxes 265,015 262,682 0.9% ------------ ----------- Net income $626,121 $609,147 2.8% ============ =========== Earnings per common share $1.79 $1.70 5.3% Earnings per common share - diluted 1.77 1.68 5.4% Average common shares outstanding 350,237 358,176 Average common shares outstanding - diluted 354,308 362,329 End of period common shares outstanding 351,891 353,424 KEY PERFORMANCE RATIOS Three Months Ended -------------------------------- 2003 December 31 September 30 June 30 ---------------------------------------------------------------------- Average shareholders' equity to average total assets 7.05% 7.14% 7.43% End of period shareholders' equity to end of period total assets 7.08 7.11 7.18 Loans net of unearned income to total deposits 96.38 98.85 96.99 Return on average assets (annualized) 1.41 1.44 1.48 Return on average shareholders' equity (annualized) 19.96 20.18 19.95 Book value per common share $9.18 $8.99 $8.98 Tangible book value per common share $8.32 $8.13 $8.12 Net interest margin - taxable equivalent 3.61% 3.60% 3.84% Efficiency ratio 52.43 52.58 52.26 KEY PERFORMANCE RATIOS Three Months Ended YTD --------------------- ----------------------- 2003 2002 2003 2002 March 31 December 31 December 31 December 31 -------------------------------------------- ------------------------ Average shareholders' equity to average total assets 7.60% 7.73% 7.30% 7.86% End of period shareholders' equity to end of period total assets 7.42 7.68 7.08 7.68 Loans net of unearned income to total deposits 98.92 100.13 96.38 100.13 Return on average assets (annualized) 1.54 1.55 1.47 1.58 Return on average shareholders' equity (annualized) 20.26 20.01 20.08 20.10 Book value per common share $8.89 $8.82 $9.18 $8.82 Tangible book value per common share $8.03 $7.96 $8.32 $7.96 Net interest margin - taxable equivalent 4.11% 4.12% 3.78% 4.37% Efficiency ratio 51.02 48.98 52.08 49.78 Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) BALANCE SHEET INFORMATION Three Months Ended AVERAGE BALANCES -------------------------------------- 2003 December 31 September 30 June 30 ---------------------------------------------------------------------- Loans net of unearned income $29,263,749 $28,667,773 $28,265,837 Total investment securities(a) 11,158,897 10,008,025 9,086,673 Interest-earning assets(a) 40,609,843 39,075,134 37,708,903 Total assets 44,697,830 43,315,707 41,917,998 Noninterest-bearing deposits 5,855,497 5,605,708 5,329,351 Interest-bearing deposits(b) 23,952,276 23,598,915 22,766,452 Total deposits(b) 29,807,773 29,204,623 28,095,803 Shareholders' equity 3,151,106 3,094,790 3,112,945 Percent BALANCE SHEET INFORMATION Three Months Ended Change AVERAGE BALANCES ------------------------- Versus 2003 2002 Prior March 31 December 31 Year ---------------------------------------------------------------------- Loans net of unearned income $27,829,798 $26,817,982 9.1% Total investment securities(a) 8,969,417 8,523,874 30.9% Interest-earning assets(a) 36,953,359 35,911,164 13.1% Total assets 40,942,836 39,837,967 12.2% Noninterest-bearing deposits 5,144,378 5,050,493 15.9% Interest-bearing deposits(b) 22,042,248 21,815,373 9.8% Total deposits(b) 27,186,626 26,865,866 11.0% Shareholders' equity 3,110,406 3,077,837 2.4% Percent BALANCE SHEET INFORMATION YTD Change AVERAGE BALANCES ------------------------- Versus 2003 2002 Prior December 31 December 31 Year ---------------------------------------------------------------------- Loans net of unearned income $28,511,159 $25,921,769 10.0% Total investment securities(a) 9,812,306 8,402,103 16.8% Interest-earning assets(a) 38,598,165 34,842,384 10.8% Total assets 42,730,516 38,564,568 10.8% Noninterest-bearing deposits 5,486,016 4,907,143 11.8% Interest-bearing deposits(b) 23,096,600 21,036,391 9.8% Total deposits(b) 28,582,616 25,943,534 10.2% Shareholders' equity 3,117,362 3,030,901 2.9% (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 December 31 September 30 June 30 ---------------------------------------------------------------------- Loans net of unearned income $29,339,364 $29,128,404 $28,222,542 Total investment securities(a) 12,036,854 11,011,789 10,522,760 Interest-earning assets(a) 41,521,449 40,341,180 39,296,146 Total assets 45,615,516 44,342,699 43,784,207 Noninterest-bearing deposits 6,273,835 5,839,977 5,849,456 Interest-bearing deposits 24,166,518 23,628,246 23,249,370 Total deposits 30,440,353 29,468,223 29,098,826 Shareholders' equity 3,229,669 3,152,834 3,145,575 Percent BALANCE SHEET INFORMATION Three Months Ended Change ENDING BALANCES ------------------------- Versus 2003 2002 Prior March 31 December 31 Year ---------------------------------------------------------------------- Loans net of unearned income $27,698,948 $27,350,918 7.3% Total investment securities(a) 9,623,430 8,966,778 34.2% Interest-earning assets(a) 37,811,324 36,475,398 13.8% Total assets 42,099,499 40,571,272 12.4% Noninterest-bearing deposits 5,569,319 5,494,657 14.2% Interest-bearing deposits 22,431,130 21,820,967 10.7% Total deposits 28,000,449 27,315,624 11.4% Shareholders' equity 3,125,179 3,115,997 3.6% (a) Excludes adjustment for market valuation on available-for-sale securities and certain noninterest-earning marketable equity securities. Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) NONPERFORMING ASSETS 2003 2002 December 31 September 30 June 30 March 31 December 31 ---------------------------------------------------------- ----------- Nonaccrual loans(c) $110,153 $120,793 $127,645 $149,551 $158,829 Foreclosed properties 32,616 35,163 40,656 34,622 33,828 Repossessions 4,986 5,890 7,058 7,082 4,346 ------------------------------------------ ----------- Total nonperforming assets(c) $147,755 $161,846 $175,359 $191,255 $197,003 ========================================== =========== Nonperforming assets to loans net of unearned income, foreclosed properties and repossessions 0.50% 0.55% 0.62% 0.69% 0.72% Accruing loans 90 days past due $67,460 $72,588 $67,454 $80,585 $91,045 ========================================== =========== (c) Exclusive of accruing loans 90 days past due ALLOWANCE FOR LOAN LOSSES 2003 2002 4th 3rd 2nd 1st 4th Quarter Quarter Quarter Quarter Quarter ---------------------------------------------------------- ----------- Balance at beginning of period $384,059 $384,011 $383,936 $381,579 $379,878 Loans charged off (56,403) (55,102) (55,565) (52,988) (61,334) Recoveries of loans previously charged off 11,968 13,350 12,940 10,645 9,585 ------------------------------------------ ----------- Net Charge-offs (44,435) (41,752) (42,625) (42,343) (51,749) Addition to allowance charged to expense 44,500 41,800 42,700 44,700 53,450 ------------------------------------------ ----------- Balance at end of period $384,124 $384,059 $384,011 $383,936 $381,579 ========================================== =========== Allowance for loan losses to loans net of unearned income 1.31% 1.32% 1.36% 1.39% 1.40% Net charge-offs to average loans net of unearned income(d) 0.60% 0.58% 0.60% 0.62% 0.77% Allowance for loan losses to nonperforming loans(c) 348.72% 317.95% 300.84% 256.73% 240.25% Allowance for loan losses to nonperforming assets(c) 259.97% 237.30% 218.99% 200.75% 193.69% (c) Exclusive of accruing loans 90 days past due (d) Annualized CONTACT: AmSouth Bancorporation Investment Community: List Underwood, 205-801-0265 or News Media: Rick Swagler, 205-801-0105