-----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, GGYwqTpSaggKfiCb40DolRSVnPEuOEnrT2k68V61dM6wklTooSoB05xkpp13J0MH XUOeryWgFK2y0lp6zytkZw== 0001157523-03-005395.txt : 20031015 0001157523-03-005395.hdr.sgml : 20031013 20031015164045 ACCESSION NUMBER: 0001157523-03-005395 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031015 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031015 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ALABAMA NATIONAL BANCORPORATION CENTRAL INDEX KEY: 0000926966 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 631114426 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25160 FILM NUMBER: 03942122 BUSINESS ADDRESS: STREET 1: 1927 FIRST AVENUE NORTH CITY: BIRMINGHAM STATE: AL ZIP: 35209 BUSINESS PHONE: 2055833600 MAIL ADDRESS: STREET 1: 1927 FIRST AVENUE NORTH STREET 2: 1927 FIRST AVENUE NORTH CITY: BIRMINGHAM STATE: AL ZIP: 35209 8-K 1 a4493467.txt ALABAMA NATIONAL BANCORPORATION 8-K 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): October 15, 2003 ALABAMA NATIONAL BANCORPORATION ----------------------------------------------------- (Exact Name of Registrant as Specified in its Charter) 0-25160 63-1114426 Delaware (State of Incorporation) (Commission File Number) (IRS Employer Identification Number) 1927 First Avenue North, Birmingham, Alabama 35205 (Address of principal executive offices, including zip code) (205) 583-3600 (Registrant's telephone number, including area code) Item 7. Financial Statements and Exhibits. (c) Exhibits. Exhibit Number Exhibit -------------- ------- 99.1 Press Release dated October 15, 2003 Item 12. Results of Operations and Financial Condition. On October 15, 2003, Alabama National BanCorporation issued a press release announcing financial results for the quarter and nine months ended September 30, 2003. The press release is attached as Exhibit 99.1 to this Form 8-K and is furnished to, but not filed with, the Commission. SIGNATURES 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. Alabama National Bancorporation By: /s/ William E. Matthews, V ---------------------------------------------------- William E. Matthews, V Executive Vice President and Chief Financial Officer Dated: October 15, 2003 INDEX TO EXHIBITS Exhibit Number Exhibit - -------------- ------- 99.1 Press Release dated October 15, 2003 * * This exhibit is furnished to, but not filed with, the Commission by inclusion herein. EX-99 3 a4493467ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 Alabama National BanCorporation Announces Earnings for Third Quarter BIRMINGHAM, Ala.--(BUSINESS WIRE)--Oct. 15, 2003--Alabama National BanCorporation ("ANB") (NASDAQ/NMS: ALAB) today announced earnings for the quarter ended September 30, 2003. ANB's results for the third quarter of 2003 produced diluted earnings per share of $0.80, compared to $0.71 in the third quarter of 2002, an increase of 13.0%. Net income of $10.6 million was up 17.3% from the 2002 third quarter. Third quarter 2003 return on average equity was 15.55% and return on average assets was 1.12%. Net revenue, defined as net interest income plus noninterest income (excluding securities and asset disposition gains and other nonrecurring items), grew to $52.1 million in the third quarter, up 15.1% from $45.2 million in the year ago quarter. Noninterest income, which represented 40.3% of total third quarter 2003 net revenues, grew 33.1% from the 2002 third quarter. During the quarter, Alabama National recognized a pre-tax gain in the amount of $799,000, resulting from the liquidation and sale of a mutual insurance company in which ANB had been a policyholder. Although ANB may possibly receive an additional smaller amount in the future from this event, ANB management views this gain as a non-recurring item. Given this gain, ANB elected to prepay certain borrowings from the Federal Home Loan Bank of Atlanta during the quarter, and incur the associated prepayment penalty in the pre-tax amount of $822,000. Year-to-date earnings through September 30, 2003, were $30.3 million, an increase of 14.6% over the $26.4 million in earnings reported for the same period in 2002. During the 2003 nine months, diluted earnings per share were $2.35, compared to $2.08 for the same period in 2002, an increase of 12.8%. Return on average equity and return on average assets for the nine months ended September 30, 2003, were 16.07% and 1.14%, respectively, compared to 16.07% and 1.18% for the same period in 2002. Year-to-date noninterest income represented 40.9% of total net revenues. "We are pleased with the results of the third quarter and first nine months of 2003," said John H. Holcomb III, chairman and chief executive officer. "We had another strong quarter from our noninterest income business lines, and I am particularly pleased with the growth we achieved in our loan portfolio." Total assets at quarter-end of $3.85 billion were up 19.3% from September 30, 2002's $3.23 billion. Deposits at September 30, 2003 were $2.75 billion, an increase of 21.3% over September 30, 2002. Loans (excluding loans held for sale) grew to $2.55 billion at September 30, 2003, up 17.4% from September 30, 2002. September 30, 2003 share owners' equity was $272.1 million, or $21.23 per share, and tangible book value per share was $18.38. In comparison with year-end 2002, total assets grew $536.8 million, with $357.0 million in loan growth and $123.2 million in securities growth. Total deposit growth from year-end 2002 was $422.1 million. Included in the above totals are $67 million in loans, $93 million in deposits, and $130 million in assets (including $17 million of intangible assets) related to the June 19, 2003 acquisition of Millennium Bank. ANB continued to report strong asset quality performance, with quarter-end nonperforming assets at 0.35% of period end loans and other real estate, down from September 30, 2002's 0.42%. 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 losses covered nonperforming loans by 582%. Net charge-offs for the quarter of $12 thousand represent a 0.00% annualized rate, and year-to-date net charge-offs of $631 thousand represent a 0.04% annualized rate. ANB is a bank holding company operating 69 locations through twelve bank subsidiaries in Alabama, Florida and Georgia. At September 30, 2003, ANB had assets of $3.85 billion. 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, Athens 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.; Millennium Bank in Gainesville; Peoples State Bank in Groveland and Clermont; 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 third quarter conference call to discuss financial results for the quarter completed September 30, 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.net, on October 16, 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 October 16. A telephonic replay will be available through November 15, by dialing 800-642-1687 and entering Passcode 2966848. 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. Refer to the "Reconciliation Table" in the attached schedules for a more detailed analysis of these non-GAAP performance measures. 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 September 30, -------------------- Percentage 2003 2002 Change (b) --------- --------- ---------- Net interest income $ 31,098 $ 29,466 5.5% Noninterest income 21,872 16,183 35.2 Total revenue 52,970 45,649 16.0 Provision for loan and lease losses 1,396 2,245 (37.8) Noninterest expense 35,625 30,174 18.1 Net income before income taxes 15,949 13,230 20.6 Income taxes 5,368 4,212 27.4 Net income $ 10,581 $ 9,018 17.3 Weighted average common and common equivalent shares outstanding Basic 12,935 12,364 4.6% Diluted 13,161 12,679 3.8 Net income per common share Basic $ .82 $ .73 12.2% Diluted .80 .71 13.0 Cash earnings (a) Total $ 10,783 $ 9,181 17.4% Basic .83 .74 12.3 Diluted .82 .72 13.1 Cash dividends declared on common stock $ .285 $ .25 Return on average assets 1.12% 1.16% Return on average equity 15.55 15.79 Noninterest Income Securities gains $ 4 $ - NM Service charge income 3,623 3,158 14.7 Investment services income 4,555 3,261 39.7 Securities brokerage and trust income 3,995 3,864 3.4 Origination and sale of mortgages 5,478 2,814 94.7 Gain on disposal and liquidation of assets 914 435 110.1 Bank owned life insurance 684 791 (13.5) Insurance commissions 797 651 22.4 Other 1,822 1,209 50.7 --------- --------- Total noninterest income $ 21,872 $ 16,183 35.2 ========= ========= (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 Nine Months Ended September 30, -------------------- Percentage 2003 2002 Change (b) --------- --------- ---------- Net interest income $ 88,458 $ 84,842 4.3% Noninterest income 62,153 42,776 45.3 Total revenue 150,611 127,618 18.0 Provision for loan and lease losses 3,911 4,726 (17.2) Noninterest expense 101,453 84,215 20.5 Net income before income taxes 45,247 38,677 17.0 Income taxes 14,977 12,269 22.1 Net income $ 30,270 $ 26,408 14.6 Weighted average common and common equivalent shares outstanding Basic 12,678 12,358 2.6% Diluted 12,875 12,668 1.6 Net income per common share Basic $ 2.39 $ 2.14 11.7% Diluted 2.35 2.08 12.8 Cash earnings (a) Total $ 30,816 $ 26,852 14.8% Basic 2.43 2.17 11.9 Diluted 2.39 2.12 12.9 Cash dividends declared on common stock $ .855 $ .75 Return on average assets 1.14% 1.18% Return on average equity 16.07 16.07 Noninterest Income Securities gains $ 43 $ 35 22.9% Service charge income 10,436 8,769 19.0 Investment services income 16,087 8,920 80.3 Securities brokerage and trust income 12,018 9,794 22.7 Origination and sale of mortgages 13,427 7,372 82.1 Gain on disposal and liquidation of assets 881 251 251.0 Bank owned life insurance 2,052 2,256 (9.0) Insurance commissions 2,435 1,800 35.3 Other 4,774 3,579 33.4 --------- --------- Total noninterest income $ 62,153 $ 42,776 45.3 ========= ========= (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 September 30, ---------------------- Percentage 2003 2002 Change ---------- ---------- ---------- Total assets $3,852,941 $3,229,836 19.3% Earning assets 3,465,292 2,910,247 19.1 Securities (a) 823,526 627,607 31.2 Loans held for sale 37,744 48,835 (22.7) Loans and leases, net of unearned income 2,548,353 2,170,400 17.4 Allowance for loan and lease losses 36,979 32,674 13.2 Deposits 2,752,516 2,270,032 21.3 Short-term borrowings 61,150 77,100 (20.7) Long-term debt 315,040 189,074 66.6 Stockholders' equity 272,139 228,585 19.1 (a) Excludes trading securities ASSET QUALITY ANALYSIS (in thousands, except percentages) As of / For the Three Months Ended September 30, June 30, September 30, 2003 2003 2002 ------------- ----------- ------------- Nonaccrual loans $ 6,357 $ 6,652 $ 7,380 Restructured loans - - - Loans past due 90 days or more and still accruing 0 0 0 Total nonperforming loans 6,357 6,652 7,380 Other real estate owned 2,517 3,074 1,799 Total nonperforming assets 8,874 9,726 9,179 Total non performing assets as a percentage of period-end loans and other real estate (a) 0.35% 0.40% 0.42% Allowance for loan and lease losses 36,979 35,595 32,674 Provision for loan and lease losses 1,396 1,424 2,245 Loans charged off 702 590 824 Loan recoveries 690 519 573 Net loan and lease losses 12 71 251 Allowance for loan and lease losses as a percentage of period-end loans and leases (a) 1.45% 1.47% 1.51% Allowance for loan and lease losses as a percentage of period-end nonperforming loans 581.71 535.10 442.74 Net losses to average loans and leases (annualized) 0.00 0.01 0.05 For the Nine Months Ended September 30, ------------------------- Percentage 2003 2002 Change ----------- ----------- ----------- Provision for loan and lease losses $ 3,911 $ 4,726 -17.2% Loans charged off 2,696 2,709 (.5) Loan recoveries 2,065 2,138 (3.4) Net loan and lease losses 631 571 10.5 Net losses to average loans and leases 0.04% 0.04% (a) Excludes loans held for sale NM - Not meaningful TAXABLE EQUIVALENT YIELDS/RATES Three Months Ended September 30, June 30, September 30, 2003 2003 2002 -------------- -------------- ------------- Interest income: Interest and fees on loans 5.86% 6.03% 6.76% Interest on securities: Taxable 3.65 4.09 5.77 Non-taxable 6.82 7.43 7.46 Total interest earning assets 5.27 5.48 6.47 Interest expense: Interest on deposits 1.78 2.00 2.58 Interest on short-term borrowing 1.87 1.83 3.07 Interest on long-term debt 3.79 3.87 4.58 Total interest bearing liabilities 1.87 2.08 2.63 Net interest spread 3.40 3.40 3.84 Net interest margin 3.63 3.64 4.17 Nine Months Ended September 30, ------------------------------ 2003 2002 -------------- --------------- Interest income: Interest and fees on loans 6.02% 6.90% Interest on securities: Taxable 4.06 5.96 Non-taxable 7.11 7.51 Total interest earning assets 5.48 6.62 Interest expense: Interest on deposits 1.98 2.72 Interest on short-term borrowing 1.95 2.83 Interest on long-term debt 3.89 4.65 Total interest bearing liabilities 2.06 2.76 Net interest spread 3.42 3.86 Net interest margin 3.67 4.19 STOCKHOLDERS' EQUITY AND CAPITAL RATIOS As of September 30, ------------------------------ 2003 2002 -------------- --------------- Stockholders' Equity: Equity to assets 7.06% 7.08% Leverage ratio 7.58 7.19 Book value per common share (a) $ 21.23 $ 18.48 Tangible book value per common share (a) 18.38 16.84 Ending shares outstanding 12,819 12,366 (a) Includes a cumulative mark to market adjustment to equity of $0.04 and $0.29 per share at September 30, 2003 and 2002, respectively. RECONCILIATION TABLE Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------ 2003 2002 2003 2002 -------- -------- -------- -------- Total revenue $ 52,970 $ 45,649 $150,611 $127,618 Securities gains (4) - (43) (35) Disposal of assets (914) (435) (881) (251) Net revenue $ 52,052 $ 45,214 $149,687 $127,332 Net income $ 10,581 $ 9,018 $ 30,270 $ 26,408 Amortization of intangibles, net of tax 202 163 546 444 Cash earnings $ 10,783 $ 9,181 $ 30,816 $ 26,852 Book value $272,139 $228,585 $272,139 $228,585 Intangible assets (36,475) (20,379) (36,475) (20,379) Tangible book value $235,664 $208,206 $235,664 $208,206 Book value per common share $ 21.23 $ 18.48 $ 21.23 $ 18.48 Effect of intangible assets per share (2.85) (1.64) (2.85) (1.64) Tangible book value per common share $ 18.38 $ 16.84 $ 18.38 $ 16.84 Alabama National BanCorporation and Subsidiaries Consolidated Statements of Financial Condition (Unaudited) ---------------------------------------------------------- (In thousands, except share amounts) September 30, September 30, 2003 2002 ------------- ------------- Assets Cash and due from banks $ 140,451 $ 98,970 Interest-bearing deposits in other banks 24,471 18,163 Federal funds sold and securities purchased under resell agreements 31,172 43,813 Trading securities, at fair value 26 1,429 Investment securities (fair value $295,079 and $250,436, respectively) 295,605 247,583 Securities available for sale, at fair value 527,921 380,024 Loans held for sale 37,744 48,835 Loans and leases 2,551,300 2,172,871 Unearned income (2,947) (2,471) ---------- ---------- Loans and leases, net of unearned income 2,548,353 2,170,400 Allowance for loan and lease losses (36,979) (32,674) ---------- ---------- Net loans and leases 2,511,374 2,137,726 Property, equipment and leasehold improvements, net 77,242 67,688 Goodwill 31,572 15,448 Other intangible assets, net 4,903 4,931 Cash surrender value of life insurance 58,035 55,391 Receivable from investment division customers 72,495 68,118 Other assets 39,930 41,717 ---------- ---------- Total assets $3,852,941 $3,229,836 ========== ========== Liabilities and Stockholders' Equity Deposits: Noninterest bearing $ 426,639 $ 347,675 Interest bearing 2,325,877 1,922,357 ---------- ---------- Total deposits 2,752,516 2,270,032 Federal funds purchased and securities sold under repurchase agreements 337,991 353,361 Treasury, tax and loan accounts 706 1,744 Accrued expenses and other liabilities 43,877 49,940 Payable for securities purchased for investment division customers 69,522 60,000 Short-term borrowings 61,150 77,100 Long-term debt 315,040 189,074 ---------- ---------- Total liabilities 3,580,802 3,001,251 Common stock, $1 par, 27,500,000 shares authorized; 12,819,788 and 12,424,544 shares issued at September 30, 2003 and 2002, respectively 12,820 12,425 Additional paid-in capital 125,823 104,884 Retained earnings 133,027 109,312 Treasury stock at cost, 723 and 58,650 shares at September 30, 2003 and 2002, respectively (24) (1,580) Accumulated other comprehensive income, net of tax 493 3,544 ---------- ---------- Total stockholders' equity 272,139 228,585 ---------- ---------- Total liabilities and stockholders' equity $3,852,941 $3,229,836 ========== ========== Alabama National BanCorporation and Subsidiaries Consolidated Statements of Income (Unaudited) ------------------------------------------------ (In thousands, except per share data) For the three months For the nine months ended September 30, ended September 30, --------------------- --------------------- 2003 2002 2003 2002 ---------- ---------- ---------- ---------- Interest income: Interest and fees on loans and leases $ 37,578 $ 36,627 $108,041 $107,170 Interest on securities 7,428 9,011 23,878 26,519 Interest on deposits in other banks 26 36 86 120 Interest on trading securities 27 14 76 43 Interest on Federal funds sold and securities purchased under resell agreements 198 172 531 557 -------- -------- -------- -------- Total interest income 45,257 45,860 132,612 134,409 Interest expense: Interest on deposits 10,355 12,375 32,495 37,968 Interest on Federal funds purchased and securities sold under repurchase agreements 815 1,251 2,435 3,184 Interest on short-term borrowings 315 606 1,313 1,687 Interest on long-term debt 2,674 2,162 7,911 6,728 -------- -------- -------- -------- Total interest expense 14,159 16,394 44,154 49,567 -------- -------- -------- -------- Net interest income 31,098 29,466 88,458 84,842 Provision for loan losses 1,396 2,245 3,911 4,726 -------- -------- -------- -------- Net interest income after provision for loan losses 29,702 27,221 84,547 80,116 Noninterest income: Securities gains 4 - 43 35 Gain on disposition and liquidation of assets 914 435 881 251 Service charges on deposit accounts 3,623 3,158 10,436 8,769 Investment services income 4,555 3,261 16,087 8,920 Securities brokerage and trust income 3,995 3,864 12,018 9,794 Gain on origination and sale of mortgages 5,478 2,814 13,427 7,372 Bank owned life insurance 684 791 2,052 2,256 Insurance commissions 797 651 2,435 1,800 Other 1,822 1,209 4,774 3,579 -------- -------- -------- -------- Total noninterest income 21,872 16,183 62,153 42,776 Noninterest expense: Salaries and employee benefits 16,874 15,808 48,732 43,561 Commission based compensation 6,062 4,279 18,285 11,266 Occupancy and equipment expenses 3,326 3,006 9,696 8,638 Amortization of intangibles 285 225 762 600 Penalty on long-term debt repayment 822 - 822 - Other 8,256 6,856 23,156 20,150 -------- -------- -------- -------- Total noninterest expense 35,625 30,174 101,453 84,215 -------- -------- -------- -------- Income before provision for income taxes 15,949 13,230 45,247 38,677 Provision for income taxes 5,368 4,212 14,977 12,269 -------- -------- -------- -------- Net income $ 10,581 $ 9,018 $ 30,270 $ 26,408 ======== ======== ======== ======== Net income per common share (basic) $ .82 $ .73 $ 2.39 $ 2.14 ======== ======== ======== ======== Weighted average common shares outstanding (basic) 12,935 12,364 12,678 12,358 ======== ======== ======== ======== Net income per common share (diluted) $ .80 $ .71 $ 2.35 $ 2.08 ======== ======== ======== ======== Weighted average common shares outstanding (diluted) 13,161 12,679 12,875 12,668 ======== ======== ======== ======== AVERAGE BALANCES, INCOME AND EXPENSES AND RATES (Amounts in thousands, except yields and rates) Three Months 09/30/03 ----------------------------- Average Income/ Yield/ Balance Expense Cost ---------- -------- ------- Assets: Earning assets: Loans and leases (1)(2) $2,549,891 $ 37,643 5.86% Securities: Taxable 768,416 7,061 3.65 Tax exempt (2) 30,881 531 6.82 Cash balances in other banks 11,650 26 0.89 Funds sold 61,345 198 1.28 Trading account securities 3,191 27 3.36 ---------- -------- Total earning assets (2) 3,425,374 45,486 5.27 ---------- -------- Cash and due from banks 85,028 Premises and equipment 76,805 Other assets 189,257 Allowance for loan and lease losses (36,334) ---------- Total assets $3,740,130 ========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $ 511,578 $ 931 0.72 Savings deposits 515,106 1,109 0.85 Time deposits 1,285,128 8,315 2.57 Funds purchased 342,499 815 0.94 Other short-term borrowings 66,750 315 1.87 Long-term debt 279,922 2,674 3.79 ---------- -------- Total interest-bearing liabilities 3,000,983 14,159 1.87 ---------- -------- Demand deposits 418,895 Accrued interest and other liabilities 50,273 Stockholders' equity 269,979 ---------- Total liabilities and stockholders' equity $3,740,130 ========== Net interest spread 3.40% ======= Net interest income/margin on a taxable equivalent basis 31,327 3.63% ======= Tax equivalent adjustment (2) 229 -------- Net interest income/margin $ 31,098 3.60% ======= ======= Three Months 09/30/02 ----------------------------- Average Income/ Yield/ Balance Expense Cost ----------- --------- ------- Assets: Earning assets: Loans and leases (1)(2) $2,153,056 $ 36,689 6.76% Securities: Taxable 593,892 8,632 5.77 Tax exempt (2) 30,529 574 7.46 Cash balances in other banks 9,230 36 1.55 Funds sold 39,768 172 1.72 Trading account securities 1,609 14 3.45 ---------- -------- Total earning assets (2) 2,828,084 46,117 6.47 ---------- -------- Cash and due from banks 86,059 Premises and equipment 65,208 Other assets 135,469 Allowance for loan and lease losses (31,601) ---------- Total assets $3,083,219 ========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $ 401,149 $ 1,342 1.33 Savings deposits 389,063 1,398 1.43 Time deposits 1,114,383 9,635 3.43 Funds purchased 307,248 1,251 1.62 Other short-term borrowings 78,239 606 3.07 Long-term debt 187,370 2,162 4.58 ---------- -------- Total interest-bearing liabilities 2,477,452 16,394 2.63 ---------- -------- Demand deposits 325,632 Accrued interest and other liabilities 53,486 Stockholders' equity 226,649 ---------- Total liabilities and stockholders' equity $3,083,219 ========== Net interest spread 3.84% ======= Net interest income/margin on a taxable equivalent basis 29,723 4.17% ======= Tax equivalent adjustment (2) 257 -------- Net interest income/margin $ 29,466 4.13% ======== ======= (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) Nine Months 09/30/03 ----------------------------- Average Income/ Yield/ Balance Expense Cost ---------- -------- ------- Assets: Earning assets: Loans and leases (1)(2) $2,404,068 $108,249 6.02% Securities: Taxable 749,279 22,765 4.06 Tax exempt (2) 31,233 1,661 7.11 Cash balances in other banks 11,465 86 1.00 Funds sold 55,341 531 1.28 Trading account securities 2,689 76 3.78 ---------- -------- Total earning assets (2) 3,254,075 133,368 5.48 ---------- -------- Cash and due from banks 87,812 Premises and equipment 74,649 Other assets 163,433 Allowance for loan and lease losses (34,520) ---------- Total assets $3,545,449 ========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $ 507,490 $ 3,482 0.92 Savings deposits 458,843 3,286 0.96 Time deposits 1,227,867 25,727 2.80 Funds purchased 310,743 2,435 1.05 Other short-term borrowings 89,904 1,313 1.95 Long-term debt 271,793 7,911 3.89 ---------- -------- Total interest-bearing liabilities 2,866,640 44,154 2.06 ---------- -------- Demand deposits 368,953 Accrued interest and other liabilities 57,995 Stockholders' equity 251,861 ---------- Total liabilities and stockholders' equity $3,545,449 ========== Net interest spread 3.42% ======= Net interest income/margin on a taxable equivalent basis 89,214 3.67% ======= Tax equivalent adjustment (2) 756 -------- Net interest income/margin $ 88,458 3.63% ======== ======= Nine Months 09/30/02 ----------------------------- Average Income/ Yield/ Balance Expense Cost ---------- -------- ------- Assets: Earning assets: Loans and leases (1)(2) $2,080,428 $107,379 6.90% Securities: Taxable 569,002 25,357 5.96 Tax exempt (2) 31,338 1,760 7.51 Cash balances in other banks 8,380 120 1.91 Funds sold 41,867 557 1.78 Trading account securities 1,314 43 4.38 ---------- -------- Total earning assets (2) 2,732,329 135,216 6.62 ---------- -------- Cash and due from banks 88,900 Premises and equipment 65,505 Other assets 126,809 Allowance for loan and lease losses (30,487) ---------- Total assets $2,983,056 ========== Liabilities: Interest-bearing liabilities: Interest-bearing transaction accounts $ 397,458 $ 3,987 1.34 Savings deposits 391,367 4,236 1.45 Time deposits 1,074,352 29,745 3.70 Funds purchased 264,056 3,184 1.61 Other short-term borrowings 79,703 1,687 2.83 Long-term debt 193,542 6,728 4.65 ---------- -------- Total interest-bearing liabilities 2,400,478 49,567 2.76 ---------- -------- Demand deposits 314,292 Accrued interest and other liabilities 48,578 Stockholders' equity 219,708 ---------- Total liabilities and stockholders' equity $2,983,056 ========== Net interest spread 3.86% ======= Net interest income/margin on a taxable equivalent basis 85,649 4.19% ======= Tax equivalent adjustment (2) 807 -------- Net interest income/margin $ 84,842 4.15% ======== ======= (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, Birmingham John H. Holcomb III, 205-583-3648 or William E. Matthews, V, 205-583-3650 -----END PRIVACY-ENHANCED MESSAGE-----