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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):
January 13, 1997
BARNETT BANKS, INC.
(Exact name of registrant as specified in its charter)
FLORIDA 1-7901 59-0560515
(State of (Commission file (IRS Employer
incorporation) number) Identification No.)
50 NORTH LAURA STREET, JACKSONVILLE, FLORIDA 32202
(Address of principal executive office including zip code)
(904) 791-7720
(Registrant's telephone number)
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ITEM 5 OTHER EVENTS.
Reference is made to Registrant's press release dated January 13, 1997
filed as an exhibit hereto.
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SIGNATURE
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, thereunto duly authorized.
Date: January 23, 1997
BARNETT BANKS, INC.
By: /s/ GREGORY M. DELANEY
----------------------------------------------
Name: Gregory M. Delaney
Title: Controller
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[LOGO] Barnett Banks, Inc.
For further information:
MEDIA ANALYSTS
----- --------
Bob Stickler Greg Delaney
791-5437--office 791-7627--office
396-9284--home 287-2283--home
Area Code 904 Area Code 904
FOR IMMEDIATE RELEASE
January 13, 1997
BARNETT 1996 EARNINGS RISE 12% TO RECORD $2.86 PER SHARE
JACKSONVILLE, Fla. -- Barnett Banks, Inc. today reported record 1996
earnings of $564.5 million, or $2.86 per fully diluted share, a 12% increase in
earnings per share. These results included a $24.5 million charge in the third
quarter to cover a special assessment to recapitalize the Savings Association
Insurance Fund (SAIF). The company earned $533.3 million, or $2.56 per share, in
1995.
Barnett also reported record results for the fourth quarter of 1996. The
company earned $149.8 million, or $.76 per share, a 13% increase in earnings
per share over a year earlier when Barnett earned $138.3 million, or $.67 per
share.
For the year, Barnett improved profitability, achieved significant revenue
growth, reduced expenses as a percentage of revenues and maintained solid credit
quality. Barnett earned a record 1.42% return on assets and a 17.44% return on
shareholders' equity, excluding the SAIF charge.
"Barnett enjoyed another record year in 1996," noted Charles E. Rice,
chairman and chief executive officer. "The use of information and technology is
enhancing our ability to meet more of our customers' financial needs more
effectively. Our product line continues to expand and we are offering more ways
for customers to access us anywhere, anytime. Barnett's culture is changing from
a traditional bank to a financial services organization. We have never been more
enthusiastic about our future."
MORE
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BARNETT BANKS, INC. - 2
Revenues rose 8% from 1995. Net interest income increased 6%, as strategic
asset/liability management initiatives resulted in an increase in the net yield
on earning assets to 5.24% from 4.88% in 1995. Non-interest income was up 13%,
as consumer finance revenue rose sharply and brokerage income also improved.
Excluding the $24.5 million SAIF charge, non-interest expense was up 5%.
Barnett reduced its overhead ratio (expenses as a percentage of revenues) to 59%
from 61% a year earlier.
Net charge-offs rose 27% to $154.4 million, primarily due to increases in
credit card losses. While 1996 net charge-offs were .51% of loans, fourth
quarter net charge-offs declined to .38% of loans. As part of a strategic
alliance established with Household Credit Services, Inc. in October, Barnett
sold $776 million of non-core credit card outstandings to Household. This
transaction resulted in fourth quarter credit card charge-offs being
significantly reduced from prior periods.
The provision for loan losses in 1996 was $154.6 million. The reserve for
loan losses stood at $477 million on December 31, covering 250% of
non-performing loans and representing 1.58% of total loans.
Barnett completed a 2-for-1 stock split on Sept. 6, and all previous
per-share amounts have been restated to reflect the split.
With more than $40 billion in assets, Barnett Banks, Inc. is the leading
financial institution in Florida and ranked in the top 25 in the United States.
The company provides a complete line of banking and related financial services
to consumers and businesses. Barnett stock (BBI) is listed on the New York Stock
Exchange.
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THIS AND OTHER BARNETT NEWS RELEASES ARE AVAILABLE THROUGH THE COMPANY'S SITE ON
THE WORLD WIDE WEB. THE ADDRESS IS HTTP://WWW.BARNETT.COM.
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B A R N E T T
CONSOLIDATED FINANCIAL HIGHLIGHTS
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Fourth Quarter Twelve Months
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Dollars in Millions Except Per Share Data 1996 1995 Change 1996 1995 Change
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RESTATED FOR 2-FOR-1 STOCK SPLIT IN SEPTEMBER 1996
<S> <C> <C> <C> <C> <C> <C>
INCOME/EXPENSE
Net interest income (taxable-equivalent) . . . . . . $461.9 $459.2 1% $1,886.5 $1,772.2 6%
Provision for loan losses. . . . . . . . . . . . . . 28.6 37.2 (23) 154.6 122.5 26
Non-interest income (excluding securities
transactions) . . . . . . . . . . . . . . . . . . . 206.0 185.5 11 791.3 714.0 11
Securities transactions. . . . . . . . . . . . . . . (.1) 4.9 -- 19.2 5.0 --
Non-interest expense 2 . . . . . . . . . . . . . . . 399.7 393.9 1 1,592.5 1,518.6 5
SAIF assessment. . . . . . . . . . . . . . . . . . . -- -- -- 24.5 -- --
Net income (excluding SAIF assessment) . . . . . . . 149.8 138.3 8 579.8 533.3 9
Net income . . . . . . . . . . . . . . . . . . . . . 149.8 138.3 8 564.5 533.3 6
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PER SHARE DATA
Fully diluted net income (excluding SAIF assessment) $ .76 $ .67 13% $ 2.94 $ 2.56 15%
Fully diluted net income . . . . . . . . . . . . . . .76 .67 13 2.86 2.56 12
Dividends declared . . . . . . . . . . . . . . . . . .27 .24 13 1.05 .91 15
Book value 1 . . . . . . . . . . . . . . . . . . . . 18.10 17.13 6 18.10 17.13 6
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KEY RATIOS
Return on assets 2 . . . . . . . . . . . . . . . . . 1.47% 1.34% 10% 1.42% 1.30% 9%
Return on equity 2 . . . . . . . . . . . . . . . . . 17.77 16.50 8 17.44 16.08 8
Net yield on earning assets. . . . . . . . . . . . . 5.18 5.05 3 5.24 4.88 7
Overhead ratio 2 . . . . . . . . . . . . . . . . . . 59.85 61.10 (2) 59.47 61.08 (3)
Leverage ratio . . . . . . . . . . . . . . . . . . . 8.21 6.16 33 8.21 6.16 33
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AVERAGE BALANCES
Loans, net . . . . . . . . . . . . . . . . . . . . . $30,206 $30,414 (1)% $30,366 $29,772 2%
Earning assets . . . . . . . . . . . . . . . . . . . 35,551 36,265 (2) 35,970 36,308 (1)
Total assets . . . . . . . . . . . . . . . . . . . . 40,654 41,190 (1) 40,888 41,105 (1)
Total deposits . . . . . . . . . . . . . . . . . . . 32,722 33,654 (3) 33,179 33,691 (2)
Shareholders' equity . . . . . . . . . . . . . . . . 3,372 3,353 1 3,325 3,316 --
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PERIOD END
Assets . . . . . . . . . . . . . . . . . . . . . $41,231 $41,554 (1)%
Loans, net . . . . . . . . . . . . . . . . . . . . . 30,253 30,486 (1)
Deposits . . . . . . . . . . . . . . . . . . . . . 33,820 34,234 (1)
Shareholders' equity . . . . . . . . . . . . . . . . 3,370 3,272 3
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ASSET QUALITY
Net charge-offs:
Total . . . . . . . . . . . . . . . . . . . . . $28.4 $36.2 (22)% $154.4 $122.0 27%
As % of average loans (annualized). . . . . . . . . .38% .48% (21) .51% .41% 24
Loan loss allowance:
Total . . . . . . . . . . . . . . . . . . . . . $476.7 $505.1 (6)
As % of period-end loans . . . . . . . . . . . . . 1.58% 1.66% (5)
As % of non-performing loans . . . . . . . . . . . 250 297 (16)
Non-performing assets:
Total . . . . . . . . . . . . . . . . . . . . . $234.0 $237.9 (2)
Non-performing loans . . . . . . . . . . . . . . . 190.4 170.3 12
Other real estate owned . . . . . . . . . . . . . . 43.6 67.6 (36)
Non-performing asset ratio . . . . . . . . . . . . .77% .78% (1)
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1 Computed on equity before deduction of the employee stock ownership plan obligation.
2 Excluding $24.5 million pre-tax SAIF assessment during the third quarter of 1996.
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