-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, RI+6jAMTmK02Goz7PtFAkJGm0nrIor05/jLoqQFXvdfHDVQJ16Gt3WDGT2VqJU2d +NnGXaccLOu0KRfpBtfIsQ== 0000092230-96-000019.txt : 19960715 0000092230-96-000019.hdr.sgml : 19960715 ACCESSION NUMBER: 0000092230-96-000019 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960712 ITEM INFORMATION: Other events FILED AS OF DATE: 19960712 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN NATIONAL CORP /NC/ CENTRAL INDEX KEY: 0000092230 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 560939887 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10853 FILM NUMBER: 96594155 BUSINESS ADDRESS: STREET 1: 500 N CHESTNUT ST CITY: LUMBERTON STATE: NC ZIP: 28358 BUSINESS PHONE: 9196712000 MAIL ADDRESS: STREET 1: 500 NORTH CHESTNUT STREET CITY: LUMBERTON STATE: NC ZIP: 28358 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K Current Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) July 12, 1996 Southern National Corporation (Exact name of registrant as specified in its charter) Commission file number : 1-10853 North Carolina 56-0939887 (State of incorporation) (I.R.S. Employer Identification No.) 200 West Second Street Winston-Salem, North Carolina 27101 (Address of principal executive offices) (Zip Code) (910) 733-2000 (Registrant's telephone number, including area code) This Form 8-K has 11 pages. The sequential numbering of the pages is indicated in the lower center. ITEM 5. OTHER EVENTS The purpose of this Current Report on Form 8-K is to file Southern National Corporation's Quarterly Performance Summary for the second quarter of 1996, including sections distributed to the media and a supplement distributed to analysts. EXHIBIT INDEX Exhibit 99.1 Quarterly Performance Summary issued July 12, 1996 July 12, 1996 FOR IMMEDIATE RELEASE Contacts: ANALYSTS MEDIA B. Gloyden Stewart, Jr. Scott E. Reed Bob Denham Senior Vice President Senior Executive Vice President Vice President Investor Relations Chief Financial Officer Public Relations (919) 246-4219 (910) 733-3088 (910) 733-2202 Southern National reports record 2nd quarter earnings WINSTON-SALEM, N.C. -- Southern National Corporation (NYSE:SNB) earned a record $73.9 million for the second quarter ended June 30, 1996, up 27.6% compared to the $57.9 million earned during the second quarter of 1995. Fully diluted earnings per share increased 32.1% to $.70, compared to $.53 earned in the prior year. Southern National's results produced a return on average assets of 1.47% and a return on average equity of 18.68%. Both indicators demonstrate strong profitability. "We developed several specific strategic objectives for 1996, including a commitment to substantially improve our net interest margin and increase our noninterest income by more than 20%," said Chairman and Chief Executive Officer John A. Allison. "Our success in these areas has produced significant positive trends in earnings." For the six months ended June 30, 1996, Southern National reported net income of $143.5 million, an increase of 21.4% over the recurring earnings recorded in the first six months of 1995. Earnings per fully diluted share for the six months were $1.35, compared to $1.09 recorded on a recurring basis in the prior year, which is an increase of 23.9%. MORE Net interest income was $394.5 million for the six months, up $26.7 million compared to the prior year. This increase was driven by significant growth in the net interest margin, which improved from 4.10% to 4.34% for the six months. Noninterest income rose 23.7% on a recurring basis, boosted by growth in mortgage banking income, investment services, service charges on deposit products and insurance commissions. The efficiency ratio, a measure of productivity, improved to 53.8% compared to 58.3% for the prior year. Southern National securitized $510.2 million of loans during the second quarter. This securitization program, which began during 1995, has been undertaken to enhance liquidity and provide flexibility in managing mortgage loan assets. Excluding the impact of these securitizations, average loans would have grown at a rate of 7.5% for the six months ended June 30, 1996, compared to the same period in 1995. "Obviously, we are delighted with our financial achievements during the first half of 1996," Allison said. "We enthusiastically anticipate that the second half of 1996 will provide continued earnings growth, increased identification with the BB&T brand, continued superior service quality for our customers and progress in the development of alternative delivery systems for our products." During the second quarter, the Board of Directors of Southern National approved a 17.4% increase in the quarterly dividend paid to common shareholders effective August 1, 1996. The increase, to $.27 per share, marks the 24th consecutive year that Southern National has declared an increase in the dividend. Southern National, with $20.6 billion in consolidated assets at June 30, 1996, is the parent company of Branch Banking and Trust Company (BB&T) and controls the second largest share of deposits in North Carolina and the third largest in South Carolina. Through its subsidiaries in the Carolinas and Virginia, Southern National currently operates 432 banking offices in 219 cities and towns. The common stock of Southern National Corporation is traded on the New York Stock Exchange under the symbol SNB. The stock closed at $28.63 on July 11. # Southern National's news releases are available at no charge through PR Newswire's Company News On-Call facsimile service. For a menu of Southern National's news releases or to retrieve a specific release call 800-758-5804, extension 809325. QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr. Southern National Corporation (NYSE:SNB) Senior Vice President (919) 246-4219 Page 3 Investor Relations (919) 246-4871
For the Three Months Ended Increase / (Decrease) (Dollars in thousands, except per share data) 6/30/96 6/30/95 $ % INCOME STATEMENT Interest income - taxable equivalent $ 397,325 $ 398,055 $ (730) (.2) % Interest expense 188,041 205,135 (17,094) (8.3) Net interest income - taxable equivalent 209,284 192,920 16,364 8.5 Less: Taxable equivalent adjustment 8,446 7,958 488 6.1 Net interest income 200,838 184,962 15,876 8.6 Provision for loan & lease losses 12,000 7,000 5,000 71.4 Net interest income after provision for loan & lease losses 188,838 177,962 10,876 6.1 Noninterest income 71,803 67,377 4,426 6.6 Noninterest expense 150,464 159,903 (9,439) (5.9) Income before income taxes 110,177 85,436 24,741 29.0 Provision for income taxes 36,260 27,528 8,732 31.7 Net income $ 73,917 $ 57,908 16,009 27.6 % PER SHARE DATA Primary earnings $ .70 $ .55 $ .15 27.3 % Fully diluted earnings .70 .53 .17 32.1 Weighted average shares - Primary 105,150,050 103,523,801 Fully diluted 105,436,287 108,774,906 Dividends paid on common shares $ .23 $ .20 $ .03 15.0 % PERFORMANCE RATIOS Return on average assets 1.47 % 1.15 % Return on average common equity 18.68 15.48 Return on average total equity 18.68 15.08 Net yield on earning assets (taxable equivalent) 4.39 4.06 Efficiency (taxable equivalent) * 53.4 57.9 For the Six Months Ended Increase / (Decrease) (Dollars in thousands, except per share data) 6/30/96 6/30/95 $ % INCOME STATEMENT Interest income - taxable equivalent $ 789,175 $ 774,144 $ 15,031 1.9 % Interest expense 378,180 390,951 (12,771) (3.3) Net interest income - taxable equivalent 410,995 383,193 27,802 7.3 Less: Taxable equivalent adjustment 16,514 15,410 1,104 7.2 Net interest income 394,481 367,783 26,698 7.3 Provision for loan & lease losses 22,500 14,000 8,500 60.7 Net interest income after provision for loan & lease losses 371,981 353,783 18,198 5.1 Noninterest income 139,470 104,354 35,116 33.7 Noninterest expense 297,410 389,254 (91,844) (23.6) Income before income taxes 214,041 68,883 145,158 210.7 Provision for income taxes 70,514 23,320 47,194 202.4 Net income $ 143,527 $ 45,563 $ 97,964 215.0 % PER SHARE DATA Primary earnings $ 1.38 $ .42 $ .96 228.6 % Fully diluted earnings 1.35 .42 .93 221.4 Weighted average shares - Primary 103,840,916 103,342,418 Fully diluted 106,038,145 108,665,929 Dividends paid on common shares .46 .40 .06 15.0 PERFORMANCE RATIOS Return on average assets 1.43 % .46 % Return on average common equity 18.27 5.98 Return on average total equity 18.00 6.04 Net yield on earning assets (taxable equivalent) 4.34 4.10 Efficiency (taxable equivalent)* 53.8 58.3 NOTE: * Excludes securities gains (losses) & foreclosed property expense for all periods and nonrecurring items for 1995.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr. Southern National Corporation (NYSE:SNB) Senior Vice President (919) 246-4219 Page 4 Investor Relations (919) 246-4871
For the Six Months Ended Increase / (Decrease) (Dollars in thousands, except per share data) 6/30/96 6/30/95 $ % INCOME STATEMENT EXCLUDING NONRECURRING ITEMS Interest income - taxable equivalent $ 789,175 $ 774,144 $ 15,031 1.9 % Interest expense 378,180 390,951 (12,771) (3.3) Net interest income - taxable equivalent 410,995 383,193 27,802 7.3 Less: Taxable equivalent adjustment 16,514 15,410 1,104 7.2 Net interest income 394,481 367,783 26,698 7.3 Provision for loan & lease losses 22,500 14,000 8,500 60.7 Net interest income after provision for loan & lease losses 371,981 353,783 18,198 5.1 Noninterest income 139,470 112,745 26,725 23.7 Noninterest expense 297,410 291,007 6,403 2.2 Income before income taxes 214,041 175,521 38,520 21.9 Provision for income taxes 70,514 57,306 13,208 23.0 Net income excluding nonrecurring items 143,527 118,215 25,312 21.4 Nonrecurring items, net of tax -- 72,652 (72,652) NM Net income $ 143,527 $ 45,563 $ 97,964 215.0 % PER SHARE DATA EXCLUDING NONRECURRING ITEMS Primary earnings $ 1.38 $ 1.12 $ .26 23.2 % Fully diluted earnings 1.35 1.09 .26 23.9 As of / For the Six Months Ended Increase / (Decrease) (Dollars in thousands) 6/30/96 6/30/95 $ % SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 5,261,852 $ 5,554,214 $ (292,362) (5.3) % Loans & leases 13,981,478 13,767,610 213,868 1.6 Allowance for loan & lease losses 177,195 176,175 1,020 .6 Other earning assets 22,209 42,923 (20,714) (48.3) Total earning assets 19,320,168 19,350,181 (30,013) (.2) Total assets 20,556,137 20,663,614 (107,477) (.5) Noninterest-bearing deposits 1,946,849 1,799,574 147,275 8.2 Interest-bearing deposits 13,043,835 12,536,982 506,853 4.0 Total deposits 14,990,684 14,336,556 654,128 4.6 Short-term borrowed funds 1,785,553 3,147,213 (1,361,660) (43.3) Long-term debt 1,955,559 1,312,464 643,095 49.0 Total interest-bearing liabilities 16,784,947 16,996,659 (211,712) (1.2) Common equity 1,577,251 1,499,184 78,067 5.2 Preferred equity -- 71,785 (71,785) NM Total shareholders' equity $ 1,577,251 $ 1,570,969 $ 6,282 .4 % Average balances Securities, at amortized cost $ 4,966,587 $ 5,424,635 $ (458,048) (8.4) % Loans & leases 13,996,301 13,374,454 621,847 4.6 Other earning assets 14,170 47,188 (33,018) (70.0) Total earning assets 18,977,058 18,846,277 130,781 .7 Total assets 20,123,927 20,017,546 106,381 .5 Noninterest-bearing deposits 1,823,309 1,693,399 129,910 7.7 Interest-bearing deposits 12,723,687 12,593,046 130,641 1.0 Total deposits 14,546,996 14,286,445 260,551 1.8 Short-term borrowed funds 2,060,851 3,044,118 (983,267) (32.3) Long-term debt 1,645,608 908,230 737,378 81.2 Total interest-bearing liabilities 16,430,146 16,545,394 (115,248) (.7) Common equity 1,572,785 1,448,238 124,547 8.6 Preferred equity 30,484 73,896 (43,412) (58.7) Total shareholders' equity $ 1,603,269 $ 1,522,134 $ 81,135 5.3 % NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized. NM - not meaningful.
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr. Southern National Corporation (NYSE:SNB) Senior Vice President (919) 246-4219 Page 5 Investor Relations (919) 246-4871
As of / For the Quarter Ended (Dollars in thousands, except per share data) 6/30/96 3/31/96 12/31/95 9/30/95 6/30/95 INCOME STATEMENT Interest income - taxable equivalent Interest & fees on loans & leases $ 315,199 $ 311,016 $ 318,325 $ 316,711 $ 311,721 Interest & dividends on securities 81,971 80,590 84,711 85,657 85,601 Interest on short-term investments 155 244 762 401 733 Total interest income - taxable eqivalent 397,325 391,850 403,798 402,769 398,055 Interest expense Interest on deposits 136,870 140,488 142,056 142,779 142,180 Interest on short-term borrowed funds 25,409 27,577 42,805 46,821 48,194 Interest on long-term debt 25,762 22,074 20,831 20,384 14,761 Total interest expense 188,041 190,139 205,692 209,984 205,135 Net interest income - taxable equivalent 209,284 201,711 198,106 192,785 192,920 Less: Taxable equivalent adjustment 8,446 8,068 8,611 8,514 7,958 Net interest income 200,838 193,643 189,495 184,271 184,962 Provision for loan & lease losses 12,000 10,500 10,400 7,000 7,000 Net interest income after provision for loan & lease losses 188,838 183,143 179,095 177,271 177,962 Noninterest income Service charges on deposits 26,804 25,214 23,459 22,381 22,511 Mortgage banking activities 8,542 9,300 7,827 9,019 4,367 Trust revenue 6,166 4,674 5,151 4,483 4,715 General insurance commissions 4,577 6,189 3,815 3,479 4,163 Other nondeposit fees & commissions 18,779 16,910 15,179 15,271 14,632 Securities (losses) gains, net (154) (8) 131 1,114 -- Other income 7,089 5,388 5,264 5,818 16,989 Total noninterest income 71,803 67,667 60,826 61,565 67,377 Noninterest expense Personnel expense 74,542 73,666 69,453 73,171 75,343 Occupancy & equipment expense 24,870 24,963 24,436 25,438 27,729 Federal deposit insurance expense 3,172 3,355 4,114 2,901 7,975 Foreclosed property expense 348 744 910 524 1,034 Amortization of intangibles & servicing rights 2,792 3,230 2,817 2,982 2,522 Other noninterest expense 44,740 40,988 36,971 39,727 45,300 Total noninterest expense 150,464 146,946 138,701 144,743 159,903 Income before income taxes 110,177 103,864 101,220 94,093 85,436 Provision for income taxes 36,260 34,254 31,130 31,613 27,528 Net income $ 73,917 $ 69,610 $ 70,090 $ 62,480 $ 57,908 PER SHARE DATA Primary earnings $ .70 $ .67 $ .66 $ .59 $ .55 Fully diluted earnings .70 .65 .64 .57 .53 Dividends paid on common shares .23 .23 .23 .23 .20 Book value per common share 15.25 15.13 15.52 14.87 14.60 NOTES: Fully diluted earnings per share, excluding nonrecurring items, were $.55 in second quarter 1995 and $.61 in third quarter 1995. Certain prior quarter balances have been adjusted to reflect the adoption of SFAS No. 122, "Accounting for Mortgage Servicing Rights."
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr. Southern National Corporation (NYSE:SNB) Senior Vice President (919) 246-4219 Page 6 Investor Relations (919) 246-4871
As of / For the Quarter Ended (Dollars in thousands) 6/30/96 3/31/96 12/31/95 9/30/95 6/30/95 SELECTED BALANCE SHEET DATA End of period balances Securities, at carrying value $ 5,261,852 $ 4,835,082 $ 5,355,313 $ 5,379,645 $ 5,554,214 Loans & leases 13,981,478 14,059,126 13,812,485 14,045,637 13,767,610 Allowance for loan & lease losses 177,195 175,104 172,158 174,069 176,175 Other earning assets 22,209 12,608 120,149 9,310 42,923 Total earning assets 19,320,168 18,908,400 19,236,767 19,420,965 19,350,181 Total assets 20,556,137 20,174,126 20,492,929 20,676,073 20,663,614 Noninterest-bearing deposits 1,946,849 1,995,143 1,885,725 1,845,262 1,799,574 Interest-bearing deposits 13,043,835 13,168,170 12,798,331 12,589,778 12,536,982 Total deposits 14,990,684 15,163,313 14,684,056 14,435,040 14,336,556 Short-term borrowed funds 1,785,553 1,565,525 2,491,285 3,012,707 3,147,213 Long-term debt 1,955,559 1,603,346 1,383,935 1,305,282 1,312,464 Total interest-bearing liabilities 16,784,947 16,337,041 16,673,551 16,907,767 16,996,659 Common equity 1,577,251 1,563,081 1,604,000 1,536,458 1,499,184 Preferred equity -- -- 70,063 70,689 71,785 Total shareholders' equity 1,577,251 1,563,081 1,674,063 1,607,147 1,570,969 Goodwill 38,681 39,948 41,252 42,574 43,989 Core deposit & other intangibles 7,700 7,809 8,278 8,750 9,258 Total intangibles 46,381 47,757 49,530 51,324 53,247 Mortgage servicing rights 29,786 21,786 18,265 14,245 7,850 Negative goodwill 42,291 43,851 45,410 46,969 48,529 Average balances Securities, at amortized cost $ 4,975,231 $ 4,957,943 $ 5,321,514 $ 5,452,924 $ 5,466,584 Loans & leases 14,114,524 13,878,078 13,915,553 13,889,121 13,543,229 Other earning assets 10,780 17,560 52,218 31,033 47,557 Total earning assets 19,100,535 18,853,581 19,289,285 19,373,078 19,057,370 Total assets 20,241,757 20,006,097 20,439,534 20,609,158 20,250,286 Noninterest-bearing deposits 1,848,295 1,798,323 1,889,603 1,705,197 1,700,458 Interest-bearing deposits 12,741,060 12,706,314 12,332,095 12,506,069 12,605,342 Total deposits 14,589,355 14,504,637 14,221,698 14,211,266 14,305,800 Short-term borrowed funds 2,012,842 2,108,860 2,930,923 3,201,200 3,219,920 Long-term debt 1,779,639 1,511,577 1,376,756 1,309,932 910,946 Total interest-bearing liabilities 16,533,541 16,326,751 16,639,774 17,017,201 16,736,208 Common equity 1,591,427 1,554,144 1,574,242 1,518,167 1,466,777 Preferred equity -- 60,967 70,176 71,463 73,652 Total shareholders' equity 1,591,427 1,615,111 1,644,418 1,589,630 1,540,429 RISK-BASED CAPITAL Risk-based capital: Tier 1 $ 1,564,484 $ 1,516,412 $ 1,593,366 $ 1,549,420 $ 1,495,054 Total 1,979,165 1,673,170 1,746,645 1,715,171 1,664,728 Risk-based capital ratios: Tier 1 11.7 % 12.1 % 13.0 % 12.0 % 11.3 % Total 14.9 13.4 14.3 13.3 12.6 Leverage capital ratio 7.8 7.6 7.8 7.5 7.4 PERFORMANCE RATIOS Return on average assets 1.47 % 1.40 % 1.36 % 1.20 % 1.15 % Return on average common equity 18.68 17.86 17.35 16.00 15.48 Return on average total equity 18.68 17.33 16.91 15.59 15.08 Net yield on earning assets (taxable equivalent) 4.39 4.28 4.07 3.95 4.06 Efficiency (taxable equivalent) * 53.4 54.3 53.2 54.5 57.9 Equity as a percentage of total assets end of period 7.7 7.7 8.2 7.8 7.6 Average earning assets as a percentage of average total assets 94.4 94.2 94.4 94.0 94.1 Average loans & leases as a percentage of average deposits 96.7 95.7 97.8 97.7 94.7 NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized. * Excludes securities gains (losses) & foreclosed property expense for all periods & nonrecurring items for 1995. Certain prior quarter balances have been adjusted to reflect the adoption of SFAS No. 122, "Accounting for Mortgage Servicing Rights."
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr. Southern National Corporation (NYSE:SNB) Senior Vice President (919) 246-4219 Page 7 Investor Relations (919) 246-4871 (Dollars in thousands, except per share data)
As of / For the Quarter Ended 6/30/96 3/31/96 12/31/95 9/30/95 6/30/95 ASSET QUALITY ANALYSIS Allowance For Loan & Lease Losses Beginning balance $ 175,104 $ 172,158 $ 174,069 $ 176,175 $ 174,189 Provision for loan & lease losses 12,000 10,500 10,400 7,000 7,000 Charge-offs (13,129) (10,599) (15,128) (11,875) (8,378) Recoveries 3,220 3,045 2,817 2,769 3,364 Ending balance $ 177,195 $ 175,104 $ 172,158 $ 174,069 $ 176,175 Nonperforming Assets Nonaccrual loans & leases $ 62,670 $ 64,796 $ 61,489 $ 62,763 $ 48,927 Foreclosed real estate 4,926 4,938 6,868 6,981 8,759 Other foreclosed property 3,115 2,662 2,817 2,717 1,518 Nonperforming assets $ 70,711 $ 72,396 $ 71,174 $ 72,461 $ 59,204 Loans 90 days or more past due & still accruing $ 18,025 $ 28,249 $ 29,094 $ 26,909 $ 30,335 Asset Quality Ratios Nonaccrual loans & leases as a percentage of total loans & lease .45 % .46 % .45 % .45 % .36 % Nonperforming assets as a percentage of: Total assets .34 .36 .35 .35 .29 Loans & leases plus foreclosed property .51 .51 .51 .52 .43 Net charge-offs as a percentage of average loans & leases .28 .22 .35 .26 .15 Allowance for loan & lease losses as a percentage of loans & leases 1.27 1.25 1.25 1.24 1.28 Ratio of allowance for loan & lease losses to: Net charge-offs 4.45 x 5.76 x 3.52 x 4.82 x 8.76 x Nonaccrual loans & leases 2.83 2.70 2.80 2.77 3.60 MEMO ITEMS Unrealized (depreciation) appreciation on securities available for sale, net of tax $ (33,614) $ (1,088) $ 31,167 $ 8,321 $ 9,055 Common stock prices (daily close): High 31.75 29.75 27.00 27.13 24.13 Low 28.88 25.88 25.63 23.63 19.88 End of Period 31.75 27.75 26.25 26.25 24.00 Weighted average shares - Primary 105,150,050 102,540,444 104,756,961 104,367,957 103,523,801 Fully Diluted 105,436,287 106,315,683 109,101,185 109,202,178 108,774,906 End of period shares outstanding 103,430,150 103,343,520 103,357,440 103,323,683 102,709,306 End of period offices 432 437 441 447 452 As of / For the Six Months Ended Increase / (Decrease) (Dollars in thousands) 6/30/96 6/30/95 $ % Allowance For Loan & Lease Losses Beginning balance $ 172,158 $ 171,734 $ 424 0.2 % Provision for loan & lease losses 22,500 14,000 8,500 60.7 Charge-offs (23,728) (15,472) 8,256 53.4 Recoveries 6,265 5,913 352 6.0 Ending balance $ 177,195 $ 176,175 $ 1,020 0.6 % Asset Quality Ratios Net charge-offs as a percentage of average loans & leases .25 % .14 % Ratio of allowance for loan & lease losses to net charge-offs 5.05 x 9.14 x NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income. Applicable ratios are annualized. Certain prior quarter balances have been adjusted to reflect the adoption of SFAS No. 122, "Accounting for Mortgage Servicing Rights."
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr. Southern National Corporation (NYSE:SNB) Senior Vice President (919) 246-4219 Page 8 Investor Relations (919) 246-4871
For the Quarter Ended 6/30/96 3/31/96 12/31/95 9/30/95 6/30/95 INTEREST YIELDS/RATES (Taxable equivalent) Interest income: Securities* 6.59 % 6.50 % 6.32 % 6.23 % 6.28 % Loans & leases 8.97 9.00 9.08 9.05 9.23 Other earning assets 5.75 5.59 5.79 5.13 6.18 Total earning assets* 8.35 8.34 8.31 8.25 8.38 Interest expense: Interest-bearing deposits 4.32 4.45 4.57 4.53 4.52 Short-term borrowed funds 5.08 5.26 5.79 5.80 6.00 Long-term debt 5.82 5.87 6.00 6.17 6.50 Total interest-bearing liabilities 4.57 4.68 4.90 4.90 4.92 Net yield on earning assets 4.39 % 4.28 % 4.07 % 3.95 % 4.06 % NOTES: *Yields calculated based on securities at amortized cost. Certain prior quarter balances have been adjusted to reflect the adoption of SFAS No. 122, "Accounting for Mortgage Servicing Rights." As of (Dollars in thousands) 6/30/96 DERIVATIVES: INTEREST RATE SWAPS, CAPS & FLOORS Notional Receive Pay Unrealized Type Amount Rate Rate Gains (Losses) Receive fixed swaps $ 310,000 6.92 % 5.57 % $ 1,654 Pay fixed swaps 308,564 5.47 5.46 92 Basis swaps 250,000 5.53 5.51 (2,311) Floors 105,000 -- -- 289 Total $ 973,564 6.00 % 5.51 % $ (276) One Year One to After Contractual Maturity Schedule Total or Less Five Years Five Years Receive fixed swaps $ 310,000 $ 10,000 $ 50,000 $ 250,000 Pay fixed swaps 308,564 14,965 289,118 4,481 Basis swaps 250,000 -- 250,000 -- Floors 105,000 -- 105,000 -- Total $ 973,564 $ 24,965 $ 694,118 $ 254,481
S I G N A T U R E Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SOUTHERN NATIONAL CORPORATION (Registrant) By: /S/ SHERRY A. KELLETT Sherry A. Kellett Executive Vice President and Controller (Principal Accounting Officer) Date: July 12, 1996 -----END PRIVACY-ENHANCED MESSAGE-----