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): April 19, 2000
One Valley Bancorp, Inc.
(Exact name of registrant as specified in its charter)
West Virginia 0-10042 55-0609408
(State or other (Commission File Number) (I.R.S.
jurisdiction of Employer
incorporation or Identification No.)
organization)
One Valley Square, Charleston, West Virginia 25326
(Address of principal executive offices)
(Zip Code)
(304) 348-7000
(Registrant's telephone number, including area code)
Not applicable
Item 5. Other Events.
On April 19, 2000, One Valley Bancorp, Inc., a West Virginia corporation
(the "Registrant"), issued the following press release:
<PAGE>
News Release
For Release April 19, 2000
Contact: Laurance G. Jones
(304) 348-7062 ONEVALLEY
BANCORP
ONE VALLEY BANCORP REPORTS
EARNINGS FOR THE FIRST QUARTER
One Valley Bancorp, Inc. (NYSE:OV), a $6.5 billion bank holding company,
reported earnings of $20.6 million for the first quarter of 2000, a 3.1%
increase over the $19.9 million earned during the same period of 1999.
Similarly, diluted net income per share rose 7.0% to $0.61 from the $0.57 earned
in the first quarter of 1999. The increase in earnings for the first quarter was
mainly due to an 11.7% increase in non-interest income while net interest income
increased by 1.9%.
The return on average equity (ROE) for 2000 improved to 14.35%, up from the
13.44% reported for 1999, while the return on average assets (ROA) dropped to
1.29% from the 1.34% reported in the first quarter of 1999.
Non-interest income, excluding securities transactions, rose to $18.2
million for the first quarter of 2000, an 11.7% increase over the $16.3 million
reported for the first quarter of 1999. The growth in non-interest income was
primarily the result of a 10.6% increase in Trust income, a 31.5% increase in
credit/debit card revenue, a 53.2% increase in retail investment product revenue
and $1.4 million of additional insurance revenues from the January 2000 purchase
of Carson Insurance Agency. The increased revenue was partially offset with a
decline in real estate loan processing fees resulting from lower mortgage
activity associated with higher interest rates.
<PAGE>
Net interest income for the first quarter of 2000 rose 1.9% to $58.9
million compared with $57.9 million earned during the same period in 1999. For
the first quarter of 2000, average-earning assets increased 7.0%, primarily due
to a 9.1% increase in average loans outstanding, while average interest bearing
liabilities increased 9.4%, primarily in long-term borrowings. One Valley's net
interest margin for the first quarter of 2000 dropped to 4.13% from the 4.33%
reported for the same time period in 1999. The decrease in margin is primarily
due to a greater increase in the cost of funds on short-term and long-term
borrowings as a result of the recent increases in interest rates by the Federal
Reserve. However, when compared to the fourth quarter 1999, the net interest
margin rose 7 basis points from 4.06% to 4.13%.
During this period of growth, One Valley continued to emphasize asset
quality. The non-performing asset ratio at March 31, 2000 remained consistent at
0.24% compared to the first quarter of 1999, while loans past due over 90 days
to total loans dropped to 0.11% compared to the 0.13% reported one year ago. Net
charge-offs for the quarter declined to 0.14% of average total loans, the lowest
quarterly ratio since June 1998. These ratios are among the best in One Valley's
peer group of bank holding companies.
Due to the strong growth in non-interest income, One Valley's net operating
costs declined by 3.0% versus the first quarter of 1999. The resulting net
overhead ratio also improved to 1.71% from 1.89% in 1999. Non-interest expense
increased by 2.6% during the quarter primarily due to increased salary and
employee benefit costs. All other major categories of expenses were flat or
declined compared to the same quarter of 1999.
On February 6, 2000, One Valley and BB&T Corporation executed an Agreement
and Plan Reorganization providing for the merger of BB&T and One Valley, with
BB&T surviving the merger and thereby acquiring One Valley's bank and non-bank
subsidiaries. Pursuant to the Plan, One Valley shareholders would receive 1.28
shares of BB&T stock in exchange for each share of One Valley. The merger
remains subject to the satisfaction of certain conditions including shareholder
and regulatory approval.
<PAGE>
J. Holmes Morrison, President and Chief Executive Officer of One Valley,
said "We are pleased with our first quarter earnings and will continue to
provide quality service to our customers, employees, and owners."
One Valley Bancorp has 9 affiliate banks that operate 123 locations --
seventy-six of which are located in West Virginia and forty seven in Virginia.
Additional financial data on One Valley Bancorp follows.
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
ONE VALLEY BANCORP, INC. AND SUBSIDIARIES
(Unaudited in thousands, except per share data)
<TABLE>
For The Three Months
Ended March 31
2000 1999 Change
<S> <C> <C> <C>
FOR THE PERIOD
Net Interest Income ............................ $ 58,935 $ 57,855 1.87 %
Net Income ..................................... 20,559 19,943 3.09
PER COMMON SHARE
Net Income:
Basic .......................................... $ 0.61 $ 0.58 5.17 %
Diluted ........................................ 0.61 0.57 7.02
Cash Dividends ...................................... 0.26 0.24 8.33
Book Value .......................................... 17.05 17.00 0.29
FINANCIAL RATIOS
Return On Assets .................................... 1.29 % 1.34%
Return On Equity .................................... 14.35 13.44
DAILY AVERAGES
Total Assets ........................................ $ 6,373,126 $ 5,932,882 7.42 %
Loans, Net .......................................... 4,337,022 3,976,104 9.08
Total Earning Assets ................................ 5,946,129 5,554,905 7.04
Deposits ............................................ 4,578,152 4,507,952 1.56
Shareholders' Equity ................................ 573,249 593,755 (3.45)
AT PERIOD END
Total Assets ........................................ $ 6,473,452 $ 5,973,919 8.36%
Loans, Net .......................................... 4,369,612 4,032,441 8.36
Total Earning Assets ................................ 6,052,256 5,582,582 8.41
Deposits ............................................ 4,639,846 4,552,861 1.91
Shareholders' Equity ................................ 574,195 580,820 (1.14)
LOAN QUALITY RATIOS
Allowance for Loan Losses as a % of Total Loans ..... 1.25 1.29
Loans Past Due Over 90 Days as a % of Total Loans ... 0.11 0.13
Non-Performing Assets as a % of Total Loans ......... 0.24 0.24
Non-Performing Assets as a % of Total Assets ........ 0.16 0.16
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS
- --------------------------------------------------------------------------------
ONE VALLEY BANCORP, INC. AND SUBSIDIARIES
(Unaudited in thousands)
<TABLE>
March 31 December 31 March 31
2000 1999 1999
<S> <C> <C> <C>
ASSETS
Cash and Due From Banks ......................................... $ 158,280 $ 214,535 $ 157,688
Interest Bearing Deposits With Other Banks ...................... 3,672 5,720 2,601
Federal Funds Sold .............................................. 168,000 185,590 0
----------- ----------- -----------
Cash and Cash Equivalents .................................... 329,952 405,845 160,289
Securities
Available-for-Sale, at fair value ............................ 1,228,560 1,288,853 1,271,366
Held-to-Maturity (Estimated Fair Value,
March 31, 2000 - $275,972; December 31, 1999-$278,792;
March 31, 1999 - $282,896) ................................... 282,412 286,330 276,174
Loans
Total Loans .................................................. 4,424,862 4,391,626 4,085,086
Less: Allowance For Loan Losses .............................. 55,250 54,156 52,645
----------- ----------- -----------
Net Loans .................................................... 4,369,612 4,337,470 4,032,441
Premises & Equipment - Net ...................................... 98,297 99,661 102,505
Other Assets .................................................... 164,619 164,902 131,144
----------- ----------- -----------
Total Assets ................................................. $ 6,473,452 $ 6,583,061 $ 5,973,919
=========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest Bearing ......................................... $ 589,190 $ 553,370 $ 567,385
Interest Bearing.............................................. 4,050,656 4,020,065 3,985,476
----------- ----------- -----------
Total Deposits ............................................... 4,639,846 4,573,435 4,552,861
Short-term Borrowings
Federal Funds Purchased ...................................... 28,876 12,662 119,281
Repurchase Agreements and Other Borrowings ................... 570,132 837,608 608,199
----------- ----------- -----------
Total Short-term Borrowings .................................. 599,008 850,270 727,480
Long-term Borrowings ............................................ 590,532 541,824 54,512
Other Liabilities ............................................... 69,871 58,803 58,246
----------- ----------- -----------
Total Liabilities ............................................ 5,899,257 6,024,332 5,393,099
Shareholders' Equity:
Preferred Stock-$10 par value; 1,000,000 shares authorized
but none issued
Common Stock-$10 par value; 70,000,000 shares authorized,
Issued 39,700,758 shares at March 31, 2000;
39,449,061 shares at December 31, 1999;
39,221,327 shares at March 31, 1999 ....................... 397,008 394,491 392,213
Capital Surplus .............................................. 101,198 96,817 94,412
Retained Earnings ............................................ 259,199 247,394 211,908
Accumulated Other Comprehensive Income ....................... (27,511) (24,274) 556
Treasury Stock - 6,022,746 shares at March 31, 2000
and December 31, 1999; 5,048,046 shares
at March 31, 1999; at cost ................................ (155,699) (155,699) (118,269)
----------- ----------- -----------
Total Shareholders' Equity ................................ 574,195 558,729 580,820
----------- ----------- -----------
Total Liabilities and Shareholders' Equity ................ $ 6,473,452 $ 6,583,061 $ 5,973,919
=========== =========== ===========
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF INCOME
- --------------------------------------------------------------------------------
ONE VALLEY BANCORP, INC. AND SUBSIDIARIES
(Unaudited in thousands, except per share data)
<TABLE>
For the Three Months
Ended March 31
2000 1999
<S> <C> <C>
INTEREST INCOME
Interest and Fees on Loans
Taxable .................................................... $ 89,600 $ 81,768
Tax-Exempt ................................................. 998 676
---------- ----------
Total ................................................... 90,598 82,444
Interest on Investment Securities
Taxable .................................................... 20,851 20,049
Tax-Exempt ................................................. 3,419 3,339
---------- ----------
Total ................................................... 24,270 23,388
Other Interest Income ........................................ 688 134
---------- ----------
Total Interest Income ................................... 115,556 105,966
INTEREST EXPENSE
Deposits ..................................................... 40,667 39,201
Short-term Borrowings ........................................ 7,572 8,277
Long-term Borrowings ......................................... 8,382 633
---------- ----------
Total Interest Expense .................................. 56,621 48,111
Net Interest Income ............................................ 58,935 57,855
Provision for Loan Losses ...................................... 2,653 2,116
---------- ----------
Net Interest Income
After Provision For Loan Losses .............................. 56,282 55,739
OTHER INCOME
Trust Department Income ...................................... 3,569 3,227
Service Charges on Deposit Accounts .......................... 4,947 4,773
Real Estate Loan Processing & Servicing Fees ................. 976 1,902
Other Service Charges and Fees ............................... 7,159 4,535
Other Operating Income ....................................... 1,508 1,817
Securities Transactions ...................................... 5 403
---------- ----------
Total Other Income ...................................... 18,164 16,657
OTHER EXPENSES
Salaries and Employee Benefits ............................... 23,047 21,925
Occupancy Expense - Net ...................................... 2,299 2,284
Equipment Expenses ........................................... 3,021 3,059
Outside Data Processing ...................................... 2,581 2,525
Other Operating Expenses ..................................... 12,702 12,748
---------- ----------
Total Other Expenses .................................... 43,650 42,541
---------- ----------
Income Before Taxes ............................................ 30,796 29,855
Applicable Income Taxes ........................................ 10,237 9,912
---------- ----------
NET INCOME ..................................................... $ 20,559 $ 19,943
========== ==========
NET INCOME PER SHARE
Basic ........................................................ $ 0.61 $ 0.58
Diluted ...................................................... 0.61 0.57
Average Shares Outstanding (in thousands)
Basic 33,654 34,569
Diluted 33,890 34,940
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
ANALYSIS OF LOAN LOSSES AND NON-PERFORMING ASSETS
- --------------------------------------------------------------------------------
ONE VALLEY BANCORP, INC. AND SUBSIDIARIES
(Unaudited in thousands)
For the Three Months
Ended March 31
2000 1999
ALLOWANCE FOR LOAN LOSSES
Balance, Beginning of Period....................... $ 54,156 $ 52,272
Loan Losses........................................ 2,038 2,236
Loan Recoveries.................................... 479 493
----------- -----------
Net Charge-offs................................. 1,559 1,743
Provision For Loan Losses.......................... 2,653 2,116
----------- -----------
Balance, End of Period............................. $ 55,250 $ 52,645
=========== ===========
Total Loans, End of Period............................ $ 4,424,862 $ 4,085,086
Allowance For Loan Losses As a % of Total Loans....... 1.25% 1.29%
=========== ===========
NON-PERFORMING ASSETS AT QUARTER END
Non-Accrual Loans.................................. $ 9,360 $ 8,519
Foreclosed Properties.............................. 1,051 1,171
----------- -----------
Total Non-Performing Assets........................ $ 10,411 $ 9,690
=========== ===========
Non-Performing Assets As a % of Total Loans........... 0.24% 0.24%
Loans Past Due Over 90 Days........................... $ 4,954 $ 5,249
Loans Past Due Over 90 Days As a % of Total Loans 0.11% 0.13%
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
CONSOLIDATED AVERAGE BALANCE SHEETS
- --------------------------------------------------------------------------------
ONE VALLEY BANCORP, INC. AND SUBSIDIARIES
(Unaudited in thousands)
<TABLE>
<CAPTION>
Three Months Ended March 31
2000 1999
AMOUNT YIELD/RATE AMOUNT YIELD/RATE
<S> <C> <C> <C> <C>
ASSETS
Loans
Taxable ................................................ $4,325,328 8.32% $3,984,124 8.29%
Tax-Exempt ............................................. 66,697 9.26 44,856 9.40
---------- ----------
Total ................................................ 4,392,025 8.33 4,028,980 8.30
Less: Allowance for Losses ............................ 55,003 52,876
---------- ----------
Net Loans ............................................ 4,337,022 8.44 3,976,104 8.41
Securities
Taxable ................................................ 1,292,273 6.45 1,304,919 6.15
Tax-Exempt ............................................. 266,949 7.88 262,807 7.82
---------- ----------
Total ................................................ 1,559,222 6.70 1,567,726 6.43
Federal Funds Sold & Other ............................... 49,885 5.55 11,075 4.91
---------- ----------
Total Earning Assets ................................... 5,946,129 7.96% 5,554,905 7.84%
Other Assets ............................................. 426,997 377,977
---------- ----------
Total Assets ........................................... $6,373,126 $5,932,882
========== ==========
LIABILITIES AND EQUITY
Interest Bearing Liabilities
Deposits ............................................... $4,023,343 4.07% $3,965,195 4.01%
Short-term Borrowings .................................. 606,969 5.02 734,717 4.57
Long-term Borrowings ................................... 557,372 6.05 43,766 5.87
---------- ----------
Total Interest
Bearing Liabilities ................................ 5,187,684 4.39 4,743,678 4.11
Non-interest Bearing Deposits ............................ 554,809 542,757
Other Liabilities ........................................ 57,384 52,692
---------- ----------
Total Liabilities ...................................... 5,799,877 5,339,127
Shareholders' Equity ..................................... 573,249 593,755
---------- ----------
Total Liabilities & Equity ............................. $6,373,126 $5,932,882
========== ==========
Interest Income To Earning Assets ........................ 7.96 7.84
Interest Expense To Earning Assets ....................... 3.83 3.51
---- ----
Net Interest Margin ...................................... 4.13% 4.33%
==== ====
<FN>
Note: Yields are computed on a fully taxable equivalent basis using the rate of 35%.
</FN>
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant had duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ONE VALLEY BANCORP, INC.
Dated: May 9, 2000 BY: /s/ Laurance G. Jones
----------- ------------------------------------
Laurance G. Jones
(Executive Vice President and
Chief Financial Officer)
