EX-99.1 2 a4675629ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 AmSouth Reports Record Second Quarter Earnings of $167.0 Million or $.47 Per Share To hear a webcast of the conference call with analysts at 2 p.m. CDT, July 13, go to www.amsouth.com and click on the webcast link under "Message Center." For supplemental financial information about the second quarter results, visit the Investor Relations Resource Center on AmSouth's web site at www.amsouth.com/irrc. BIRMINGHAM, Ala.--(BUSINESS WIRE)--July 13, 2004--AmSouth Bancorporation (NYSE: ASO) today reported earnings for the second quarter ended June 30, 2004, of $.47 per diluted share compared to $.44 per diluted share reported for the second quarter of 2003. Net income for the second quarter of 2004 was a record $167.0 million versus $154.8 million for the same period in 2003. AmSouth's second quarter performance resulted in a return on average equity of 20.3 percent, a return on average assets of 1.41 percent and an efficiency ratio of 52.8 percent. "We are seeing strong growth across all of our lines of business as the economy continues to improve," said Dowd Ritter, AmSouth's chairman, president and chief executive officer. "With the competitive landscape changing with recent merger activity, we remain focused on our internal growth strategy and are taking advantage of the resulting opportunities in our already attractive Southeastern markets." Net interest income was $361.4 million in the second quarter, $1.9 million higher than the previous quarter, while the net interest margin was 3.44 percent. Average loans for the quarter grew by $2.4 billion, an 8.4 percent increase over the same quarter in 2003. Average deposits were higher by $3.8 billion, or 13.4 percent during the same period, including a 13.8 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 $218.3 million for the quarter, an increase of $7.5 million, or 3.6 percent, compared with the same quarter in 2003. This increase came despite decreases in mortgage income and lower securities gains. Service charges increased 15.5 percent compared with the second quarter of 2003, trust income grew 16.9 percent over the same period, and investment service income rose 36.6 percent compared with the previous year. Noninterest expenses in the second quarter were $311.8 million, up 4.4 percent compared with the second quarter of 2003 but down $ 10.5 million compared with the first quarter, reflecting the effects of tighter expense controls. Net charge-offs were .35 percent of average net loans in the quarter, marking the lowest level of net charge-offs since the second quarter of 2000. The ratio of loan loss reserves to total loans was 1.22 percent at June 30, 2004, and continued to reflect improvement in credit quality trends and a shift in the loan portfolio mix to include a greater proportion of lower risk loans. Total nonperforming assets at June 30, 2004, were $135.6 million, or .43 percent of loans net of unearned income, foreclosed properties and repossessions, their lowest level in 20 years. In the second quarter of 2003 nonperforming assets were $175.4 million, or .62 percent of loans. For supplemental financial information about the second quarter results, you may refer to the Form 8-K filed by AmSouth with the Securities and Exchange Commission on July 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 $48 billion in assets, more than 670 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 materially 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, and quarterly report on Form 10-Q for the quarter ended March 31, 2004, 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 consumer spending and saving habits; technological changes; the growth and profitability of AmSouth's mortgage banking business, including mortgage-related income and fees, being less than expected; adverse changes in the financial performance and / or condition of AmSouth's borrowers which could impact the repayment of such borrowers' outstanding loans; changes in accounting and tax principles, policies or guidelines and in tax laws; 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; the outcome of litigation, which is inherently uncertain and depends on the findings of judges and juries; the impact on AmSouth's businesses, as well as on the risks set forth above, of various domestic or international military or terrorist activities or conflicts; and AmSouth's success at managing the risks involved in the foregoing. 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 June 30 March 31 December 31 -------- -------- ---------- Net interest income $361,410 $359,497 $358,784 Provision for loan losses 26,600 28,100 44,500 -------- -------- ---------- Net interest income after provision 334,810 331,397 314,284 Noninterest revenues 218,252 220,430 223,390 Noninterest expenses 311,770 322,274 310,793 -------- -------- ---------- Income before income taxes 241,292 229,553 226,881 Income taxes 74,329 69,454 68,329 -------- -------- ---------- Net income $166,963 $160,099 $158,552 ======== ======== ========== Earnings per common share $0.47 $0.46 $0.45 Earnings per common share - diluted 0.47 0.45 0.45 Average common shares outstanding 351,602 351,196 350,067 Average common shares outstanding - diluted 356,314 356,908 355,306 End of period common shares outstanding 353,414 352,904 351,891 EARNINGS SUMMARY Percent Change Versus 2003 Prior September 30 June 30 Year --------- --------- ------ Net interest income $343,453 $349,356 3.5% Provision for loan losses 41,800 42,700 (37.7%) --------- --------- Net interest income after provision 301,653 306,656 9.2% Noninterest revenues 228,785 210,718 3.6% Noninterest expenses 306,556 298,622 4.4% --------- --------- Income before income taxes 223,882 218,752 10.3% Income taxes 66,494 63,927 16.3% --------- --------- Net income $157,388 $154,825 7.8% ========= ========= Earnings per common share $0.45 $0.44 6.8% Earnings per common share - diluted 0.45 0.44 6.8% Average common shares outstanding 349,421 349,509 Average common shares outstanding - diluted 353,317 353,354 End of period common shares outstanding 350,622 350,477 Percent EARNINGS SUMMARY YTD Change ------------------- Versus 2004 2003 Prior June 30 June 30 Year --------- --------- ------- Net interest income $720,907 $712,398 1.2% Provision for loan losses 54,700 87,400 (37.4%) --------- --------- Net interest income after provision 666,207 624,998 6.6% Noninterest revenues 438,682 403,603 8.7% Noninterest expenses 634,044 588,228 7.8% --------- --------- Income before income taxes 470,845 440,373 6.9% Income taxes 143,783 130,192 10.4% --------- --------- Net income $327,062 $310,181 5.4% ========= ========= Earnings per common share $0.93 $0.88 5.7% Earnings per common share - diluted 0.92 0.88 4.5% Average common shares outstanding 351,399 350,738 Average common shares outstanding - diluted 356,611 354,304 End of period common shares outstanding 353,414 350,477 KEY PERFORMANCE RATIOS Three Months Ended ----------------------------- 2004 June 30 March 31 December 31 -------- -------- ---------- Average shareholders' equity to average total assets 6.92% 7.09% 7.05% End of period shareholders' equity to end of period total assets 6.82 7.11 7.08 Loans net of unearned income to total deposits 97.55 94.77 96.38 Return on average assets (annualized) 1.41 1.40 1.41 Return on average shareholders' equity (annualized) 20.31 19.76 19.96 Book value per common share $9.32 $9.56 $9.18 Tangible book value per common share $8.46 $8.71 $8.32 Net interest margin - taxable equivalent 3.44% 3.56% 3.61% Efficiency ratio 52.83 54.57 52.43 KEY PERFORMANCE RATIOS 2003 September 30 June 30 ----------- -------- Average shareholders' equity to average total assets 7.14% 7.43% End of period shareholders' equity to end of period total assets 7.11 7.18 Loans net of unearned income to total deposits 98.85 96.99 Return on average assets (annualized) 1.44 1.48 Return on average shareholders' equity (annualized) 20.18 19.95 Book value per common share $8.99 $8.98 Tangible book value per common share $8.13 $8.12 Net interest margin - taxable equivalent 3.60% 3.84% Efficiency ratio 52.58 52.26 KEY PERFORMANCE RATIOS YTD ------------------ 2004 2003 June 30 June 30 -------- --------- Average shareholders' equity to average total assets 7.01% 7.51% End of period shareholders' equity to end of period total assets 6.82 7.18 Loans net of unearned income to total deposits 97.55 96.99 Return on average assets (annualized) 1.40 1.51 Return on average shareholders' equity (annualized) 20.04 20.10 Book value per common share $9.32 $8.98 Tangible book value per common share $8.46 $8.12 Net interest margin - taxable equivalent 3.50% 3.97% Efficiency ratio 53.70 51.64 Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) BALANCE SHEET INFORMATION Three Months Ended AVERAGE BALANCES ------------------------------------- ------------------------- 2004 June 30 March 31 December 31 ----------- ----------- ------------ Loans net of unearned income $30,633,629 $29,705,743 $29,263,749 Total investment securities(a) 12,488,887 11,779,479 11,158,897 Interest-earning assets(a) 43,500,751 41,771,105 40,609,843 Total assets 47,742,291 45,953,093 44,697,830 Noninterest-bearing deposits 6,516,977 6,103,216 5,855,497 Interest-bearing deposits(b) 25,337,923 24,381,234 23,952,276 Total deposits(b) 31,854,900 30,484,450 29,807,773 Shareholders' equity 3,305,636 3,258,359 3,151,106 BALANCE SHEET INFORMATION AVERAGE BALANCES Percent ------------------------- Change Versus 2003 Prior September 30 June 30 Year ------------ ---------- ------- Loans net of unearned income $28,667,773 $28,265,837 8.4% Total investment securities(a) 10,008,025 9,086,673 37.4% Interest-earning assets(a) 39,075,134 37,708,903 15.4% Total assets 43,315,707 41,917,998 13.9% Noninterest-bearing deposits 5,605,708 5,329,351 22.3% Interest-bearing deposits(b) 23,598,915 22,766,452 11.3% Total deposits(b) 29,204,623 28,095,803 13.4% Shareholders' equity 3,094,790 3,112,945 6.2% BALANCE SHEET INFORMATION Percent AVERAGE BALANCES YTD Change ------------------------- ------------------------- Versus 2004 2003 Prior June 30 June 30 Year ------------ ------------ ------- Loans net of unearned income $30,169,686 $28,049,022 7.6% Total investment securities(a) 12,134,183 9,028,369 34.4% Interest-earning assets(a) 42,635,928 37,333,218 14.2% Total assets 46,847,692 41,433,111 13.1% Noninterest-bearing deposits 6,310,096 5,237,375 20.5% Interest-bearing deposits(b) 24,859,579 22,406,351 10.9% Total deposits(b) 31,169,675 27,643,726 12.8% Shareholders' equity 3,281,997 3,111,683 5.5% (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 $31,351,497 $29,893,723 $29,339,364 Total investment securities(a) 12,716,413 12,426,033 12,036,854 Interest-earning assets(a) 44,439,782 43,253,884 41,521,449 Total assets 48,341,045 47,414,968 45,615,516 Noninterest-bearing deposits 6,636,325 6,544,028 6,273,835 Interest-bearing deposits 25,502,919 25,000,664 24,166,518 Total deposits 32,139,244 31,544,692 30,440,353 Shareholders' equity 3,295,478 3,372,349 3,229,669 Percent Change Versus BALANCE SHEET INFORMATION Prior ENDING BALANCES Year ------------------------- ------- Loans net of unearned income $29,128,404 $28,222,542 11.1% Total investment securities(a) 11,011,789 10,522,760 20.8% Interest-earning assets(a) 40,341,180 39,296,146 13.1% Total assets 44,342,699 43,784,207 10.4% Noninterest-bearing deposits 5,839,977 5,849,456 13.5% Interest-bearing deposits 23,628,246 23,249,370 9.7% Total deposits 29,468,223 29,098,826 10.4% Shareholders' equity 3,152,834 3,145,575 4.8% (a) Excludes adjustment for market valuation on available-for-sale securities and certain noninterest-earning marketable equity securities. Unaudited AmSouth Bancorporation SUMMARY FINANCIAL INFORMATION ($ in thousands) NONPERFORMING ASSETS 2004 2003 June March December September June 30 31 31 30 30 -------- -------- -------- -------- -------- Nonaccrual loans(c) $102,670 $102,904 $110,153 $120,793 $127,645 Foreclosed properties 29,586 29,291 32,616 35,163 40,656 Repossessions 3,295 3,733 4,986 5,890 7,058 -------- -------- -------- -------- -------- Total nonperforming assets(c) $135,551 $135,928 $147,755 $161,846 $175,359 ======== ======== ======== ======== ======== Nonperforming assets to loans net of unearned income, foreclosed properties and repossessions 0.43% 0.45% 0.50% 0.55% 0.62% Accruing loans 90 days past due $52,972 $58,195 $67,460 $72,588 $67,454 ======== ======== ======== ======== ======== (c) Exclusive of accruing loans 90 days past due ALLOWANCE FOR LOAN LOSSES 2004 2003 2nd 1st 4th 3rd 2nd Quarter Quarter Quarter Quarter Quarter ----------------------- --------- -------- --------- -------- -------- Balance at beginning of period $382,450 $384,124 $384,059 $384,011 $383,936 Loans charged off (38,202) (44,412) (56,403) (55,102) (55,565) Recoveries of loans previously charged off 11,634 16,406 11,968 13,350 12,940 --------- -------- --------- -------- -------- Net Charge-offs (26,568) (28,006) (44,435) (41,752) (42,625) Addition to allowance charged to expense 26,600 28,100 44,500 41,800 42,700 Allowance sold - (1,768) - - - --------- -------- --------- -------- -------- Balance at end of period $382,482 $382,450 $384,124 $384,059 $384,011 ========= ======== ======== ======== ======== Allowance for loan losses to loans net of unearned income 1.22% 1.28% 1.31% 1.32% 1.36% Net charge-offs to average loans net of unearned income (d) 0.35% 0.38% 0.60% 0.58% 0.60% Allowance for loan losses to nonperforming loans(c) 372.54% 371.66% 348.72% 317.95% 300.84% Allowance for loan losses to nonperforming assets(c) 282.17% 281.36% 259.97% 237.30% 218.99% (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