EX-99 3 a4376970ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Alabama National BanCorporation Announces Record Earnings for First Quarter BIRMINGHAM, Ala.--(BUSINESS WIRE)--April 16, 2003--Alabama National BanCorporation ("ANB") (Nasdaq:ALAB) today announced record earnings for the quarter ended March 31, 2003. For the quarter, ANB reported diluted earnings per share of $0.75, up 10.2% from the year ago quarter. Net income of $9.5 million was up 10.7% from the 2002 first quarter. First quarter 2003 return on average equity was 16.21% and return on average assets was 1.16%. Net revenue, defined as net interest income plus noninterest income (excluding securities and asset disposition gains), grew to $46.7 million in the 2003 first quarter, up 15.5% from $40.4 million in the year ago quarter. Noninterest income, which represented 40.0% of total first quarter 2003 net revenues, grew 40.2% from the 2002 first quarter and was 1.5% above the record fourth quarter 2002 noninterest income figure. "We are pleased with the first quarter's revenue production and net income," said John H. Holcomb, III, Chairman and CEO. "Our noninterest income areas led this performance with another excellent quarter, and our loan portfolio showed some encouraging growth during the quarter. Our employees' hard work has given the company a great start to the year." Total assets at quarter-end of $3.58 billion were up 21.2% from $2.95 billion at March 31, 2002, driven largely by $266 million in loan growth and $219 million in securities growth. The loan growth represents a 13.2% annualized rate. Deposit growth over the last year of 14.1% slightly exceeded loan growth. March 31, 2003 share owners' equity was $240.4 million, or $19.44 per share, and tangible book value per share was $17.79. In comparison with year end, total assets grew $259 million, with $86 million in loan growth and $119 million in securities growth. Excluding wholesale CD's, deposits grew by $127 million from year-end levels. Total deposit growth from year end was $157 million. ANB continued to report strong asset quality performance, with quarter-end nonperforming assets at 0.68% of period end loans and other real estate, up slightly from 0.59% at year-end. Consistent with prior periods, ANB continues its practice of having no loans over 90 days past due and still accruing interest. The allowance for loan and lease losses covered nonperforming loans by 307%. Net charge-offs for the quarter of $548 thousand represent a 0.10% annualized rate. ANB is a $3.58 billion bank holding company operating 66 locations through eleven bank subsidiaries in Alabama, Florida and Georgia. The largest subsidiary for the holding company is Birmingham-based National Bank of Commerce (NBC). Other Alabama subsidiaries include: First American Bank in Decatur/Huntsville and Auburn/Opelika; First Citizens Bank in Talladega; Bank of Dadeville; Alabama Exchange Bank in Tuskegee and First Gulf Bank in Baldwin County. Florida subsidiaries are: Citizens & Peoples Bank, N.A. in Pensacola; Community Bank of Naples, N.A.; Peoples State Bank in Groveland; and Public Bank in metropolitan Orlando and Vero Beach. ANB has one subsidiary in Georgia, Georgia State Bank, in metropolitan Atlanta. ANB provides full banking services to individuals and businesses. Brokerage services are provided to customers through NBC's wholly owned subsidiary, NBC Securities, Inc. Investments are not bank guaranteed, not FDIC insured and may lose value. Insurance services are provided through ANB Insurance Services, Inc., a wholly owned subsidiary of First American Bank. Alabama National BanCorporation common stock is traded on the NASDAQ National Market System under the symbol "ALAB." Alabama National will provide an on-line, real time Web cast and rebroadcast of its first quarter conference call to discuss financial results for the quarter completed March 31, 2003. A listen-only simulcast and replay of Alabama National's conference call will be available on-line at the following Internet links: www.alabamanational.com, under "In The News," or www.viavid.com, on April 17, beginning at 9:00 a.m. Central Time. The on-line replay will follow immediately and continue for 30 days. Persons who do not have Internet access may dial 800-938-1464 to listen to the call at 9:00 a.m. Central Time on April 17. A telephonic replay will be available through April 24 by dialing 800-642-1687 and entering conference ID number 9372263. This press release contains financial information determined by methods other than in accordance with Generally Accepted Accounting Principles ("GAAP"). These "non-GAAP" financial measures are "net revenue," "cash earnings" (cash earnings per share) and "tangible book value per share." ANB's management uses these non-GAAP measures in its analysis of ANB's performance. Net revenue is defined as the sum of net interest income plus noninterest income, less any gains or losses from securities sales or asset dispositions. ANB's management believes this measure is useful as an indicator of the company's revenue-generating ability. Securities and assets sale disposition gains are excluded from this figure because they are viewed as non-recurring in nature and could distort the measure. Cash earnings is defined as net income plus amortization expense (net of tax) applicable to intangible assets that do not qualify as regulatory capital. Cash earnings per share is defined as cash earnings divided by basic and diluted common shares outstanding. ANB's management includes cash earnings measures to compare the company's earnings exclusive of non-cash amortization expense and because it is a measure used by many investors as part of their analysis of ANB's performance. Tangible book value per share is defined as total equity reduced by recorded intangible assets divided by total common shares outstanding. ANB's management believes this measure is useful because it provides book value exclusive of intangible assets and because it is a measure used by many investors as part of their analysis of ANB. These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures which may be presented by other companies. This press release contains forward-looking statements as defined by federal securities laws. Statements contained in this press release which are not historical facts are forward-looking statements. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. ANB undertakes no obligation to update these statements following the date of this press release. In addition, ANB, through its senior management, may make from time to time forward-looking public statements concerning the matters described herein. Such forward-looking statements are necessarily estimates reflecting the best judgment of ANB's senior management based upon current information and involve a number of risks and uncertainties. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by ANB with the Securities and Exchange Commission, and forward-looking statements contained in this press release or in other public statements of ANB or its senior management should be considered in light of those factors. There can be no assurance that such factors or other factors will not affect the accuracy of such forward-looking statements. ALABAMA NATIONAL BANCORPORATION (Unaudited Financial Highlights) (in thousands, except per share amounts and percentages) Three Months Ended March 31, ----------------------- Percentage 2003 2002 Change (b) ---------------------------------- Net interest income $27,987 $27,077 3.4% Noninterest income 18,745 13,227 41.7 Total revenue 46,732 40,304 15.9 Provision for loan and lease losses 1,091 1,270 (14.1) Noninterest expense 31,491 26,455 19.0 Net income before income taxes 14,150 12,579 12.5 Income taxes 4,625 3,971 16.5 Net income $9,525 $8,608 10.7 Weighted average common and common equivalent shares outstanding Basic 12,503 12,350 1.2% Diluted 12,685 12,634 .4 Net income per common share Basic $.76 $.70 9.3% Diluted .75 .68 10.2 Cash earnings (a) Total $9,693 $8,746 10.8% Basic .78 .71 9.5 Diluted .76 .69 10.4 Cash dividends declared on common stock $.285 $.25 Return on average assets 1.16% 1.21% Return on average equity 16.21 16.35 Noninterest Income Securities gains $5 $30 NM Service charge income 3,322 2,722 22.0% Investment services income 5,160 3,081 67.5 Securities brokerage and trust income 4,118 2,808 46.7 Origination and sale of mortgages 3,334 2,413 38.2 Gain (loss) on disposal of assets 49 (133) (136.8) Bank owned life insurance 720 713 1.0 Insurance commissions 784 527 48.8 Other 1,253 1,066 17.5 ----------------------- Total noninterest income $18,745 $13,227 41.7 ======================= (a) Cash basis earnings exclude the effect on earnings of amortization expense applicable to intangible assets that do not qualify as regulatory capital. (b) Percentage change based on actual not rounded values. NM - Not meaningful March 31, ----------------------- Percentage 2003 2002 Change ---------------------------------- Total assets $3,575,147 $2,950,062 21.2% Earning assets 3,205,753 2,690,199 19.2 Securities (a) 818,848 599,922 36.5 Loans held for sale 61,162 20,818 193.8 Loans and leases, net of unearned income 2,277,520 2,011,162 13.2 Allowance for loan and lease losses 33,247 29,613 12.3 Deposits 2,487,548 2,179,227 14.1 Short-term borrowings 95,200 91,100 4.5 Long-term debt 274,057 184,631 48.4 Stockholders' equity 240,444 212,705 13.0 (a) Excludes trading securities ASSET QUALITY ANALYSIS (in thousands, except percentages) As of / For the Three Months Ended March 31, December 31, March 31, 2003 2002 2002 ---------------------------------- Nonaccrual loans $10,813 $10,282 $7,978 Restructured loans - - - Loans past due 90 days or more and still accruing 0 0 0 Total nonperforming loans 10,813 10,282 7,978 Other real estate owned 4,738 2,569 1,633 Total nonperforming assets 15,551 12,851 9,611 Total non performing assets as a percentage of period-end loans and other real estate (a) 0.68% 0.59% 0.48% Allowance for loan and lease losses 33,247 32,704 29,613 Provision for loan and lease losses 1,091 3,230 1,270 Loans charged off 1,404 3,527 876 Loan recoveries 856 327 700 Net loan and lease losses 548 3,200 176 Allowance for loan and lease losses as a percentage of period- end loans and leases (a) 1.46% 1.49% 1.47% Allowance for loan and lease losses as a percentage of period- end nonperforming loans 307.47 318.07 371.18 Net losses to average loans and leases (annualized) 0.10 0.56 0.04 (a) Excludes loans held for sale NM - Not meaningful TAXABLE EQUIVALENT YIELDS/RATES Three Months Ended March 31, December 31, March 31, 2003 2002 2002 ---------------------------------- Interest income: Interest and fees on loans and leases 6.19% 6.41% 7.07% Interest on securities: Taxable 4.48 5.10 6.04 Non-taxable 7.09 7.45 7.61 Total interest earning assets 5.72 6.06 6.76 Interest expense: Interest on deposits 2.19 2.41 2.92 Interest on short-term borrowing 2.11 2.89 2.28 Interest on long-term debt 4.02 4.26 4.73 Total interest bearing liabilities 2.24 2.46 2.93 Net interest spread 3.48 3.60 3.83 Net interest margin 3.73 3.89 4.18 STOCKHOLDERS' EQUITY AND CAPITAL RATIOS March 31, ----------------------- 2003 2002 ----------------------- Stockholders' Equity: Equity to assets 6.73% 7.21% Leverage ratio 7.31 7.27 Book value per common share (a) $19.44 $17.22 Tangible book value per common share (a)(b) 17.79 15.66 Ending shares outstanding 12,369 12,353 (a) Includes a cumulative mark to market adjustment to equity of $0.25 and $0.00 per share at March 31, 2003 and 2002, respectively. (b) Total equity reduced by intangible assets divided by common shares outstanding. RECONCILIATION TABLE Three Months Ended March 31, ----------------------- 2003 2002 ----------------------- Total revenue $46,732 $40,304 Securities gains (5) (30) Disposal of assets (49) 133 Net revenue $46,678 $40,407 Net income $9,525 $8,608 Amortization of intangibles, net of tax 168 138 Cash earnings $9,693 $8,746 Book value $240,444 $212,705 Intangible assets (20,389) (19,209) Tangible book value $220,055 $193,496 Book value per common share $19.44 $17.22 Effect of intangible assets per share (1.65) (1.56) Tangible book value per common share $17.79 $15.66 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) ---------------------------------------------------------------------- (In thousands, except share amounts) March 31, March 31, 2003 2002 ------------ ------------ Assets Cash and due from banks $100,682 $91,940 Interest-bearing deposits in other banks 11,453 25,084 Investment securities (estimated market values of $361,956 and $245,708) 358,411 247,662 Securities available for sale 460,437 352,260 Trading securities - - Federal funds sold and securities purchased under resell agreements 36,770 33,213 Loans held for sale 61,162 20,818 Loans and leases 2,279,997 2,013,502 Unearned income (2,477) (2,340) ----------- ----------- Loans and leases, net of unearned income 2,277,520 2,011,162 Allowance for loan and lease losses (33,247) (29,613) ----------- ----------- Net loans and leases 2,244,273 1,981,549 Property, equipment and leasehold improvements, net 73,469 65,809 Goodwill 15,925 15,325 Other intangible assets 4,464 3,884 Cash surrender value of life insurance 57,075 53,888 Receivable from investment division customers 113,498 17,559 Other assets 37,528 41,071 ----------- ----------- Totals $3,575,147 $2,950,062 =========== =========== Liabilities and Stockholders' Equity Deposits: Noninterest bearing $360,572 $320,101 Interest bearing 2,126,976 1,859,126 ----------- ----------- Total deposits 2,487,548 2,179,227 Federal funds purchased and securities sold under repurchase agreements 324,522 222,570 Treasury, tax and loan accounts 330 660 Short-term borrowings 95,200 91,100 Payable for securities purchased for investment division customers 108,448 17,349 Accrued expenses and other liabilities 44,598 41,820 Long-term debt 274,057 184,631 ----------- ----------- Total liabilities 3,334,703 2,737,357 Common stock, $1 par; 27,500,000 and 17,500,000 shares authorized at March 31, 2003 and 2002, respectively; 12,424,544 shares issued at both March 31, 2003 and 2002, respectively 12,425 12,425 Additional paid-in capital 105,801 104,016 Retained earnings 121,007 98,207 Treasury stock at cost, 55,270 and 71,664 shares at March 31, 2003 and 2002, respectively (1,847) (1,930) Accumulated other comprehensive income (loss), net of tax 3,058 (13) ----------- ----------- Total stockholders' equity 240,444 212,705 ----------- ----------- Totals $3,575,147 $2,950,062 =========== =========== Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) ---------------------------------------------------------------------- (In thousands, except per share data) For the three months ended March 31, ----------------------- 2003 2002 ---------- ----------- Interest income: Interest and fees on loans and leases $34,516 $34,953 Interest on securities 8,335 8,748 Interest on deposits in other banks 35 41 Interest on trading securities 20 15 Interest on Federal funds sold and securities purchased under resell agreements 124 200 ---------- ----------- Total interest income 43,030 43,957 Interest expense: Interest on deposits 11,146 13,105 Interest on Federal funds purchased and securities sold under repurchase agreements 759 935 Interest on long and short-term borrowings 3,138 2,840 ---------- ----------- Total interest expense 15,043 16,880 ---------- ----------- Net interest income 27,987 27,077 Provision for loan losses 1,091 1,270 ---------- ----------- Net interest income after provision for loan losses 26,896 25,807 Noninterest income: Securities gains 5 30 Gain (loss) on disposition of assets 49 (133) Service charges on deposit accounts 3,322 2,722 Investment services income 5,160 3,081 Securities brokerage and trust income 4,118 2,808 Origination and sale of mortgage loans 3,334 2,413 Bank owned life insurance 720 713 Insurance commissions 784 527 Other 1,253 1,066 ---------- ----------- Total noninterest income 18,745 13,227 Noninterest expense: Salaries and employee benefits 15,292 13,428 Commission based compensation 5,574 3,440 Occupancy and equipment expenses 3,213 2,768 Amortization of intangibles 233 184 Other 7,179 6,635 ---------- ----------- Total noninterest expense 31,491 26,455 ---------- ----------- Income before provision for income taxes 14,150 12,579 Provision for income taxes 4,625 3,971 ---------- ----------- Net income $9,525 $8,608 ========== =========== Net income per common share (basic) $.76 $.70 ========== =========== Weighted average common shares outstanding (basic) 12,503 12,350 ========== =========== Net income per common share (diluted) $.75 $.68 ========== =========== Weighted average common and common equivalent shares outstanding (diluted) 12,685 12,634 AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 03/31/03 ----------------------------- Average Income/ Yield/ Balance Expense Cost ----------- --------- ------- Assets: Earning assets: Loans and leases (1) $2,264,444 $34,586 6.19% Securities: Taxable 720,745 7,964 4.48 Tax exempt 32,158 562 7.09 Cash balances in other banks 10,525 35 1.35 Funds sold 38,492 124 1.31 Trading account securities 2,165 20 3.75 ----------- --------- Total earning assets (2) 3,068,529 43,291 5.72 ----------- --------- Cash and due from banks 88,342 Premises and equipment 73,273 Other assets 143,299 Allowance for loan and lease losses (33,153) ----------- Total assets $3,340,290 =========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $499,012 $1,312 1.07 Savings deposits 406,117 1,048 1.05 Time deposits 1,159,107 8,786 3.07 Funds purchased 288,195 759 1.07 Other short-term borrowings 106,749 556 2.11 Long-term debt 260,171 2,582 4.02 ----------- --------- Total interest-bearing liabilities 2,719,351 15,043 2.24 ----------- --------- Demand deposits 322,448 Accrued interest and other liabilities 60,225 Stockholders' equity 238,266 ----------- Total liabilities and stockholders' equity $3,340,290 =========== Net interest spread 3.48% ======= Net interest income/margin on a taxable equivalent basis 28,248 3.73% Tax equivalent adjustment (2) 261 --------- Net interest income/margin $27,987 3.70% ========= ======= Three Months 03/31/02 ----------------------------- Average Income/ Yield/ Balance Expense Cost ----------- --------- ------- Assets: Earning assets: Loans and leases(1) $2,008,617 $35,030 7.07% Securities: Taxable 561,163 8,351 6.04 Tax exempt 32,065 602 7.61 Cash balances in other banks 7,649 41 2.17 Funds sold 44,200 200 1.84 Trading account securities 1,218 15 4.99 ----------- --------- Total earning assets (2) 2,654,912 44,239 6.76 ----------- --------- Cash and due from banks 95,123 Premises and equipment 62,987 Other assets 113,201 Allowance for loan and lease losses (29,267) ----------- Total assets $2,896,956 =========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $389,228 $1,296 1.35 Savings deposits 395,751 1,445 1.48 Time deposits 1,034,979 10,364 4.06 Funds purchased 238,725 935 1.59 Other short-term borrowings 70,902 399 2.28 Long-term debt 209,355 2,441 4.73 ----------- --------- Total interest-bearing liabilities 2,338,940 16,880 2.93 ----------- --------- Demand deposits 299,284 Accrued interest and other liabilities 45,270 Stockholders' equity 213,462 ----------- Total liabilities and stockholders' equity $2,896,956 =========== Net interest spread 3.83% ======= Net interest income/margin on a taxable equivalent basis 27,359 4.18% Tax equivalent adjustment (2) 282 --------- Net interest income/margin $27,077 4.14% ========= ======= (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 03/31/03 ----------------------------- Average Income/ Yield/ Balance Expense Cost ----------- --------- ------- Assets: Earning assets: Loans and leases (1) $2,264,444 $34,586 6.19% Securities: Taxable 720,745 7,964 4.48 Tax exempt 32,158 562 7.09 Cash balances in other banks 10,525 35 1.35 Funds sold 38,492 124 1.31 Trading account securities 2,165 20 3.75 ----------- --------- Total earning assets (2) 3,068,529 43,291 5.72 ----------- --------- Cash and due from banks 88,342 Premises and equipment 73,273 Other assets 143,299 Allowance for loan and lease losses (33,153) ----------- Total assets $3,340,290 =========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $499,012 $1,312 1.07 Savings deposits 406,117 1,048 1.05 Time deposits 1,159,107 8,786 3.07 Funds purchased 288,195 759 1.07 Other short-term borrowings 106,749 556 2.11 Long-term debt 260,171 2,582 4.02 ----------- --------- Total interest-bearing liabilities 2,719,351 15,043 2.24 ----------- --------- Demand deposits 322,448 Accrued interest and other liabilities 60,225 Stockholders' equity 238,266 ----------- Total liabilities and stockholders' equity $3,340,290 =========== Net interest spread 3.48% ======= Net interest income/margin on a taxable equivalent basis 28,248 3.73% Tax equivalent adjustment (2) 261 --------- Net interest income/margin $27,987 3.70% ========= ======= Three Months 12/31/02 ----------------------------- Average Income/ Yield/ Balance Expense Cost ----------- --------- ------- Assets: Earning assets: Loans and leases (1) $2,252,414 $36,391 6.41% Securities: Taxable 525,559 6,759 5.10 Tax exempt 30,854 579 7.45 Cash balances in other banks 13,248 45 1.35 Funds sold 55,677 186 1.33 Trading account securities 4,270 38 3.53 ----------- --------- Total earning assets (2) 2,882,022 43,998 6.06 ----------- --------- Cash and due from banks 93,006 Premises and equipment 70,651 Other assets 156,100 Allowance for loan and lease losses (33,248) ----------- Total assets $3,168,531 =========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $425,742 $1,241 1.16 Savings deposits 389,943 1,221 1.24 Time deposits 1,128,249 9,342 3.29 Funds purchased 298,306 1,003 1.33 Other short-term borrowings 76,747 559 2.89 Long-term debt 221,885 2,380 4.26 ----------- --------- Total interest-bearing liabilities 2,540,872 15,746 2.46 ----------- --------- Demand deposits 331,875 Accrued interest and other liabilities 62,829 Stockholders' equity 232,955 ----------- Total liabilities and stockholders' equity $3,168,531 =========== Net interest spread 3.60% ======= Net interest income/margin on a taxable equivalent basis 28,252 3.89% Tax equivalent adjustment (2) 260 --------- Net interest income/margin $27,992 3.85% ========= ======= (1) Average loans include nonaccrual loans. All loans and deposits are domestic. (2) Tax equivalent adjustments are based on the assumed rate of 34%, and do not give effect to the disallowance for Federal income tax purposes of interest expense related to certain tax-exempt assets. CONTACT: Alabama National BanCorporation John H. Holcomb, III, 205/583-3648 or William E. Matthews, V, 205/583-3650