EX-99.1 3 a4610849ex991.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 AmSouth Reports Record First Quarter Earnings of $160.1 Million or $.45 Per Share To hear a webcast of the conference call with analysts at 2 p.m. CDT, April 13, go to www.amsouth.com and click on the webcast link under "Message Center." For supplemental financial information about the first quarter results, visit the Investor Relations Resource Center on AmSouth's web site at www.amsouth.com/irrc. BIRMINGHAM, Ala.--(BUSINESS WIRE)--April 13, 2004--AmSouth Bancorporation (NYSE:ASO) today reported earnings for the first quarter ended March 31, 2004, of $.45 per diluted share compared to $.44 per diluted share reported for the first quarter of 2003. Net income for the first quarter of 2004 was a record $160.1 million versus $155.4 million for the same period in 2003. AmSouth's first quarter performance resulted in a return on average equity of 19.8 percent, a return on average assets of 1.40 percent and an efficiency ratio of 54.6 percent. "Solid growth in loans and deposits, continued improvement in credit quality and growth in core categories of noninterest revenues were key contributors to the quarter's results," said Dowd Ritter, AmSouth's chairman, president and chief executive officer. "We are confident that as the economy improves, our continued focus on growth and expansion in some of the best markets in the country will serve us well and further enhance our performance." Net interest income was $359.5 million in the first quarter, higher compared with the previous quarter, and the net interest margin was 3.56 percent. Average loans for the quarter grew by $1.9 billion, a 6.7 percent increase over the same quarter in 2003. Average deposits were higher by $3.3 billion, or 12.1 percent during the same period, including a 10.9 percent increase in average low-cost deposits. Noninterest revenue, which includes earnings from service charges, trust, investment management services, securities gains and other sources of fee income, was $220.4 million for the quarter, an increase of $27.5 million, or 14.3 percent, compared with the same quarter in 2003. Service charges increased 23.4 percent compared with the first quarter of 2003, trust income grew 11.0 percent over the same period, and investment service income rose 25.1 percent compared with the previous year. Noninterest expenses in the first quarter were $322.3 million, up 11.3 percent compared with the first quarter of 2003 and reflected higher personnel related costs and continuing investments in branch expansion and other revenue producing initiatives. Net charge-offs were .38 percent of average net loans in the first quarter, improving 22 basis points from .60 percent in the fourth quarter of 2003, marking the lowest level of charge-offs since the second quarter of 2000. The ratio of loan loss reserves to total loans was 1.28 percent at March 31, 2004, and continued to reflect 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 first quarter. Total nonperforming assets at March 31, 2004, were $135.9 million, or .45 percent of loans net of unearned income, foreclosed properties and repossessions, compared to $147.8 million, or .50 percent, in the previous quarter. For supplemental financial information about the first quarter results, you may refer to the Form 8-K filed by AmSouth with the Securities and Exchange Commission on April 13, 2004, 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 $47 billion in assets, more than 660 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, 2003, describes 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 ---------------------------------- 2004 March 31 December 31 September 30 --------- ----------- ------------ Net interest income $359,497 $358,784 $343,453 Provision for loan losses 28,100 44,500 41,800 --------- ----------- ------------ Net interest income after provision 331,397 314,284 301,653 Noninterest revenues 220,430 223,390 228,785 Noninterest expenses 322,274 310,793 306,556 --------- ----------- ------------ Income before income taxes 229,553 226,881 223,882 Income taxes 69,454 68,329 66,494 --------- ----------- ------------ Net income $160,099 $158,552 $157,388 ========= =========== ============ Earnings per common share $0.46 $0.45 $0.45 Earnings per common share - diluted 0.45 0.45 0.45 Average common shares outstanding 351,196 350,067 349,421 Average common shares outstanding - diluted 356,908 355,306 353,317 End of period common shares outstanding 352,904 351,891 350,622 EARNINGS SUMMARY Percent Change Versus 2003 Prior June 30 March 31 Year --------- --------- ------- Net interest income $349,356 $363,042 (1.0%) Provision for loan losses 42,700 44,700 (37.1%) --------- --------- Net interest income after provision 306,656 318,342 4.1% Noninterest revenues 210,718 192,885 14.3% Noninterest expenses 298,622 289,606 11.3% --------- --------- Income before income taxes 218,752 221,621 3.6% Income taxes 63,927 66,265 4.8% --------- --------- Net income $154,825 $155,356 3.1% ========= ========= Earnings per common share $0.44 $0.44 4.5% Earnings per common share - diluted 0.44 0.44 2.3% Average common shares outstanding 349,509 351,981 Average common shares outstanding - diluted 353,354 355,265 End of period common shares outstanding 350,477 351,645 EARNINGS SUMMARY YTD ------------------- Percent Change Versus 2004 2003 Prior March 31 March 31 Year --------- --------- ------- Net interest income $359,497 $363,042 (1.0%) Provision for loan losses 28,100 44,700 (37.1%) --------- --------- Net interest income after provision 331,397 318,342 4.1% Noninterest revenues 220,430 192,885 14.3% Noninterest expenses 322,274 289,606 11.3% --------- --------- Income before income taxes 229,553 221,621 3.6% Income taxes 69,454 66,265 4.8% --------- --------- Net income $160,099 $155,356 3.1% ========= ========= Earnings per common share $0.46 $0.44 4.5% Earnings per common share - diluted 0.45 0.44 2.3% Average common shares outstanding 351,196 351,981 Average common shares outstanding - diluted 356,908 355,265 End of period common shares outstanding 352,904 351,645 KEY PERFORMANCE RATIOS Three Months Ended --------------------------------- 2004 March 31 December 31 September 30 -------- ----------- ------------ Average shareholders' equity to average total assets 7.09% 7.05% 7.14% End of period shareholders' equity to end of period total assets 7.11 7.08 7.11 Loans net of unearned income to total deposits 94.77 96.38 98.85 Return on average assets (annualized) 1.40 1.41 1.44 Return on average shareholders' equity (annualized) 19.76 19.96 20.18 Book value per common share $9.56 $9.18 $8.99 Tangible book value per common share $8.71 $8.32 $8.13 Net interest margin - taxable equivalent 3.56% 3.61% 3.60% Efficiency ratio 54.57 52.43 52.58 KEY PERFORMANCE RATIOS 2003 June 30 March 31 --------- -------- Average shareholders' equity to average total assets 7.43% 7.60% End of period shareholders' equity to end of period total assets 7.18 7.42 Loans net of unearned income to total deposits 96.99 98.92 Return on average assets (annualized) 1.48 1.54 Return on average shareholders' equity (annualized) 19.95 20.26 Book value per common share $8.98 $8.89 Tangible book value per common share $8.12 $8.03 Net interest margin - taxable equivalent 3.84% 4.11% Efficiency ratio 52.26 51.02 KEY PERFORMANCE RATIOS YTD ------------------ 2004 2003 March 31 March 31 --------- -------- Average shareholders' equity to average total assets 7.09% 7.60% End of period shareholders' equity to end of period total assets 7.11 7.42 Loans net of unearned income to total deposits 94.77 98.92 Return on average assets (annualized) 1.40 1.54 Return on average shareholders' equity (annualized) 19.76 20.26 Book value per common share $9.56 $8.89 Tangible book value per common share $8.71 $8.03 Net interest margin - taxable equivalent 3.56% 4.11% Efficiency ratio 54.57 51.02 Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) BALANCE SHEET INFORMATION AVERAGE BALANCES Three Months Ended ------------------------- -------------------------------------- 2004 March 31 December 31 September 30 ------------ ------------ ------------ Loans net of unearned income $29,705,743 $29,263,749 $28,667,773 Total investment securities (a) 11,779,479 11,158,897 10,008,025 Interest-earning assets (a) 41,771,105 40,609,843 39,075,134 Total assets 45,953,093 44,697,830 43,315,707 Noninterest-bearing deposits 6,103,216 5,855,497 5,605,708 Interest-bearing deposits (b) 24,381,234 23,952,276 23,598,915 Total deposits (b) 30,484,450 29,807,773 29,204,623 Shareholders' equity 3,258,359 3,151,106 3,094,790 BALANCE SHEET INFORMATION AVERAGE BALANCES Percent ------------------------- Change 2003 Versus Prior June 30 March 31 Year ------------ ------------ ------------ Loans net of unearned income $28,265,837 $27,829,798 6.7% Total investment securities (a) 9,086,673 8,969,417 31.3% Interest-earning assets (a) 37,708,903 36,953,359 13.0% Total assets 41,917,998 40,942,836 12.2% Noninterest-bearing deposits 5,329,351 5,144,378 18.6% Interest-bearing deposits (b) 22,766,452 22,042,248 10.6% Total deposits (b) 28,095,803 27,186,626 12.1% Shareholders' equity 3,112,945 3,110,406 4.8% BALANCE SHEET INFORMATION AVERAGE BALANCES YTD ------------------------- ------------------------- Percent Change 2004 2003 Versus Prior March 31 March 31 Year ------------ ------------ ------------ Loans net of unearned income $29,705,743 $27,829,798 6.7% Total investment securities (a) 11,779,479 8,969,417 31.3% Interest-earning assets (a) 41,771,105 36,953,359 13.0% Total assets 45,953,093 40,942,836 12.2% Noninterest-bearing deposits 6,103,216 5,144,378 18.6% Interest-bearing deposits (b) 24,381,234 22,042,248 10.6% Total deposits (b) 30,484,450 27,186,626 12.1% Shareholders' equity 3,258,359 3,110,406 4.8% (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 ENDING BALANCES ------------------------------- Loans net of unearned income $29,893,723 $29,339,364 $29,128,404 Total investment securities (a) 12,426,033 12,036,854 11,011,789 Interest-earning assets (a) 43,253,884 41,521,449 40,341,180 Total assets 47,414,968 45,615,516 44,342,699 Noninterest-bearing deposits 6,544,028 6,273,835 5,839,977 Interest-bearing deposits 25,000,664 24,166,518 23,628,246 Total deposits 31,544,692 30,440,353 29,468,223 Shareholders' equity 3,372,349 3,229,669 3,152,834 BALANCE SHEET INFORMATION ENDING BALANCES Percent ------------------------- Change Versus Prior Year ------------ Loans net of unearned income $28,222,542 $27,698,948 7.9% Total investment securities (a) 10,522,760 9,623,430 29.1% Interest-earning assets (a) 39,296,146 37,811,324 14.4% Total assets 43,784,207 42,099,499 12.6% Noninterest-bearing deposits 5,849,456 5,569,319 17.5% Interest-bearing deposits 23,249,370 22,431,130 11.5% Total deposits 29,098,826 28,000,449 12.7% Shareholders' equity 3,145,575 3,125,179 7.9% (a) Excludes adjustment for market valuation on available-for-sale securities and certain noninterest-earning marketable equity securities. Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) NONPERFORMING ASSETS 2004 2003 March December September June March 31 31 30 30 31 --------- --------- --------- --------- --------- Nonaccrual loans (c) $102,904 $110,153 $120,793 $127,645 $149,551 Foreclosed properties 29,291 32,616 35,163 40,656 34,622 Repossessions 3,733 4,986 5,890 7,058 7,082 --------- --------- --------- --------- --------- Total nonperforming assets (c) $135,928 $147,755 $161,846 $175,359 $191,255 ========= ========= ========= ========= ========= Nonperforming assets to loans net of unearned income, foreclosed properties and repossessions 0.45% 0.50% 0.55% 0.62% 0.69% Accruing loans 90 days past due $58,195 $67,460 $72,588 $67,454 $80,585 ========= ========= ========= ========= ========= (c) Exclusive of accruing loans 90 days past due ALLOWANCE FOR LOAN LOSSES 2004 2003 1st 4th 3rd 2nd 1st Quarter Quarter Quarter Quarter Quarter -------------------- --------- --------- --------- --------- --------- Balance at beginning of period $384,124 $384,059 $384,011 $383,936 $381,579 Loans charged off (44,412) (56,403) (55,102) (55,565) (52,988) Recoveries of loans previously charged off 16,406 11,968 13,350 12,940 10,645 --------- --------- --------- --------- --------- Net Charge-offs (28,006) (44,435) (41,752) (42,625) (42,343) Addition to allowance charged to expense 28,100 44,500 41,800 42,700 44,700 Allowance sold (1,768) - - - - --------- --------- --------- --------- --------- Balance at end of period $382,450 $384,124 $384,059 $384,011 $383,936 ========= ========= ========= ========= ========= Allowance for loan losses to loans net of unearned income 1.28% 1.31% 1.32% 1.36% 1.39% Net charge-offs to average loans net of unearned income (d) 0.38% 0.60% 0.58% 0.60% 0.62% Allowance for loan losses to nonperforming loans (c) 371.66% 348.72% 317.95% 300.84% 256.73% Allowance for loan losses to nonperforming assets (c) 281.36% 259.97% 237.30% 218.99% 200.75% (d) Annualized (c) Exclusive of accruing loans 90 days past due --30--LC/na* CONTACT: AmSouth Bancorporation, Birmingham Investment Community: List Underwood, 205-801-0265 or News Media: Rick Swagler, 205-801-0105