<PAGE> 1
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
October 8, 1997
SOUTHTRUST CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation)
0-3613 63-0574085
(Commission File No.) (IRS Employer Identification No.)
420 NORTH 20TH STREET
BIRMINGHAM, ALABAMA 35203
(Address of principal (Zip Code)
executive offices)
(205) 254-5509
(Registrant's telephone number including area code)
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ITEM 5. OTHER EVENTS
There is annexed to this Form 8-K a press release of SouthTrust
Corporation (the "Company") and accompanying financial information of the
Company relating to, among other things, the results of operations and financial
condition of the Company for the quarter ended September 30, 1997.
<PAGE> 3
CONTACT: BUTCH CROUCH
INVESTOR RELATIONS
(205) 254-6868
JEANNIE COLQUETT
CORPORATE COMMUNICATIONS
(205) 254-5523
FOR IMMEDIATE RELEASE
SOUTHTRUST ANNOUNCES RECORD THIRD QUARTER RESULTS
BIRMINGHAM, Ala. (October 8, 1997) ---SouthTrust Corporation reported
record earnings for the third quarter of 1997, according to Wallace D. Malone,
Jr., chairman and chief executive officer of the Corporation.
For the quarter ended Sept. 30, 1997, net income totaled $78.5 million,
up 19 percent over the $65.7 million reported a year ago. Per share, the
comparison was $0.78 for the third quarter of 1997 versus $0.68 for the third
quarter of 1996, an increase of 15 percent.
For the nine months period, net income was $224.8 million, an increase
of 21 percent over the $186.3 million reported in 1996. Net income per share for
the nine months was $2.25 compared with $1.98 a year ago.
"We are very pleased with SouthTrust's performance during the third
quarter," Malone said. "Key indicators such as asset totals as well as loan and
deposit growth show the company's strength as we move into the fourth quarter.
We believe SouthTrust is in a good position to finish the year at a record
level."
--more--
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SouthTrust Announces
October 8, 1997
Page Two
Stockholders' equity grew to $2.0 billion as of Sept. 30, 1997,
representing a 20 percent increase over the $1.7 billion in stockholders' equity
reported one year ago. Return on average stockholders' equity was 15.76 percent
for the quarter.
Total assets increased 20 percent, reaching a level of $29.8 billion as
of Sept. 30, 1997. This compares with $24.8 billion one year ago. Loans
increased 20 percent to $21.7 billion, while deposits increased 14 percent to
$19.0 billion.
SouthTrust Corporation currently operates more than 530 offices in
Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and
Tennessee. The company offers a complete line of banking and other related
financial services to commercial and retail customers.
SouthTrust Corporation common stock trades on the NASDAQ Stock Market
under the symbol SOTR.
--more--
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SOUTHTRUST CORPORATION 3
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
INCOME SUMMARY Three Months Ended Nine Months Ended
-------------------- --------------------
(In thousands, Sep 30, % Sep 30, %
except per share data) 1997 1996 Change 1997 1996 Change
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net income $ 78,488 $ 65,721 19 $224,755 $186,285 21
Average shares outstanding 100,692 96,673 4 99,874 94,066 6
Per share:
Net income $ 0.78 $ 0.68 15 $ 2.25 $ 1.98 14
Cash dividends declared 0.25 0.22 14 0.75 0.66 14
Return on average assets 1.07% 1.09% 1.07% 1.10%
Return on average equity 15.76 15.90 15.91 15.89
Net interest margin (FTE) 3.89 4.05 3.96 4.03
Non-interest expense as a %
of average total assets 2.63 2.82 2.62 2.78
Efficiency ratio 57.26 58.62 56.36 57.21
</TABLE>
CREDIT QUALITY ANALYSIS
The following table summarizes the Company's non-performing assets and accruing
loans 90 days or more past due for the last five quarters.
<TABLE>
<CAPTION>
---------------------------------------------------
1997 1996
(In Millions) SEP 30, Jun 30, Mar 31, Dec 31, Sep 30,
---------------------------------------------------
<S> <C> <C> <C> <C> <C>
Non-accrual loans $ 115.2 $ 103.7 $ 108.0 $ 82.8 $ 96.4
Restructured loans 0.6 0.7 0.6 2.1 2.3
---------------------------------------------------
Total non-performing loans 115.8 104.4 108.6 84.9 98.7
Other real estate owned 47.7 52.6 46.5 43.9 35.3
Other repossessed assets 12.4 12.0 10.1 10.2 9.0
---------------------------------------------------
Total non-performing assets 175.9 169.0 165.2 139.0 143.0
Accruing loans 90 days or more past due 50.9 45.3 36.9 40.4 44.8
---------------------------------------------------
Total non-performing assets and accruing
loans 90 days or more past due $ 226.8 $ 214.3 $ 202.1 $ 179.4 $ 187.8
===================================================
Allowance for loan losses $ 310.7 $ 297.7 $ 284.5 $ 269.9 $ 252.9
Provision for loan losses 20.0 26.5 22.4 27.2 21.9
Net charge-offs $ 9.9 $ 13.3 $ 11.6 $ 12.5 $ 10.4
RATIOS:
For the Period Ended:
Net charge-offs as a % of average
net loans (annualized basis) 0.18% 0.26% 0.24% 0.27% 0.24%
Period End:
Allowance as a % of net loans 1.43 1.41 1.41 1.40 1.40
Allowance as a % of non-
performing loans 268.38 285.08 261.89 317.57 256.17
Non-performing assets as a % of loans net
of unearned income plus OREO 0.81 0.80 0.82 0.72 0.79
Non-performing assets and accruing loans 90
days or more past due as a % of loans
net of unearned income plus OREO 1.04 1.01 1.00 0.93 1.04
---------------------------------------------------
</TABLE>
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SOUTHTRUST CORPORATION 4
TAXABLE EQUIVALENT INTEREST YIELDS/RATES
<TABLE>
<CAPTION>
-------------------------------------------
1997 1996
INTEREST INCOME SEP 30, Jun 30, Mar 31, Dec 31, Sep 30,
-------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest and fees on loans 8.76% 8.81% 8.79% 8.73% 8.81%
Interest on securities:
Taxable 7.09 7.17 7.02 7.17 6.80
Non-taxable 11.05 10.47 10.58 10.25 10.48
Securities available for sale 6.53 6.69 6.51 6.41 6.38
Interest on short-term investments 7.13 8.04 7.36 7.34 7.47
-------------------------------------------
Total interest-earning assets 8.35 8.41 8.39 8.34 8.35
INTEREST EXPENSE
Interest on deposits 4.63% 4.60% 4.70% 4.72% 4.71%
Interest on short-term borrowings 5.57 5.55 5.39 5.28 5.34
Interest on Federal Home Loan Bank advances 5.38 5.41 5.17 5.30 5.32
Interest on long-term debt 6.36 6.13 5.98 5.90 5.96
-------------------------------------------
Total interest-bearing liabilities 4.95 4.93 4.93 4.92 4.92
Net interest margin 3.89% 3.97% 4.04% 4.03% 4.05%
==========================================
Net interest spread 3.40 3.48 3.46 3.42 3.43
==========================================
</TABLE>
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL
<TABLE>
<CAPTION>
------------------------------------------------------------------------
1997 1996
SEP 30, Jun 30, Mar 31, Dec 31, Sep 30,
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCKHOLDERS' EQUITY:
Stockholders' equity to assets 6.77% 6.69% 6.84% 6.62% 6.77%
Book value per share $ 20.19 $ 19.57 $ 18.78 $ 18.05 $ 17.47
End of period shares outstanding (000's) 99,794 99,713 99,619 96,139 96,052
REGULATORY CAPITAL:
Tier I capital ratio 7.50%* 7.43% 7.66% 7.33% 7.57%
Supplemental capital elements 4.08 * 4.14 4.30 4.46 3.66
------------------------------------------------------------------------
Total risk-based capital ratios 11.58%* 11.57% 11.96% 11.79% 11.23%
========================================================================
Leverage ratio 6.11% 6.08% 6.47% 6.21% 6.37%
========================================================================
</TABLE>
* Current quarter ratios are estimated.
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SOUTHTRUST CORPORATION 5
CONDENSED STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
ENDING BALANCE QUARTER AVERAGE YTD AVERAGE
(Unaudited) SEP 30, Sep 30, SEP 30, Sep 30, SEP 30, Sep 30,
(In millions) 1997 1996 1997 1996 1997 1996
---------------------- ---------------------- ----------------------
<S> <C> <C> <C> <C> <C> <C>
Loans, net of unearned income $21,667.8 $18,057.8 $21,333.6 $17,446.4 $20,545.1 $16,328.4
Investment securities:
Taxable 2,239.1 1,509.4 2,039.7 1,490.5 1,950.4 1,439.4
Non-taxable 180.0 220.3 186.8 223.6 196.1 234.9
---------------------- ---------------------- ----------------------
Total investment securities 2,419.1 1,729.7 2,226.5 1,714.1 2,146.5 1,674.3
Securities available for sale 3,349.8 2,873.9 3,432.2 2,896.9 3,282.2 2,827.5
Short-term investments:
Federal funds sold and securities
purchased under resale agreements 72.1 72.5 39.2 34.7 25.1 75.4
Interest-bearing deposits in other banks 19.6 14.7 19.4 18.3 18.6 18.0
Assets held for sale 370.0 272.7 357.8 261.1 299.8 255.2
---------------------- ---------------------- ----------------------
Total short-term investments 461.7 359.9 416.4 314.1 343.5 348.6
Total earning assets 27,898.4 23,021.3 27,408.7 22,371.5 26,317.3 21,178.8
Allowance for loan losses (310.7) (252.9) (307.4) (247.6) (292.2) (232.2)
Other assets 2,176.5 2,007.6 1,986.4 1,787.8 1,959.5 1,713.4
---------------------- ---------------------- ----------------------
Total assets $29,764.2 $24,776.0 $29,087.7 $23,911.7 $27,984.6 $22,660.0
====================== ====================== ======================
Deposits:
Interest-bearing $16,890.2 $14,197.0 $16,662.9 $13,837.5 $15,757.5 $13,323.4
Other 2,120.7 2,427.7 1,973.2 2,303.1 2,102.3 2,242.9
---------------------- ---------------------- ----------------------
Total deposits 19,010.9 16,624.7 18,636.1 16,140.6 17,859.8 15,566.3
Federal funds purchased and other
short-term borrowed funds 4,779.1 3,924.6 4,817.6 3,917.8 4,928.2 3,602.1
Federal Home Loan Bank advances 2,532.4 1,397.2 2,243.4 1,176.0 1,892.5 922.1
Long-term debt 981.9 783.5 981.6 657.7 981.1 629.3
Other liabilities 444.8 367.8 433.3 375.0 434.8 373.9
Stockholders' equity 2,015.1 1,678.2 1,975.7 1,644.6 1,888.2 1,566.3
---------------------- ---------------------- ----------------------
Total liabilities and
stockholders' equity $29,764.2 $24,776.0 $29,087.7 $23,911.7 $27,984.6 $22,660.0
====================== ====================== ======================
</TABLE>
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SOUTHTRUST CORPORATION 6
<TABLE>
<CAPTION>
CONDENSED STATEMENTS OF INCOME
FULLY-TAXABLE EQUIVALENT BASIS QUARTER ENDED NINE-MONTHS ENDED YEAR ENDED
(Unaudited) SEP 30, Sep 30, SEP 30, Sep 30, DEC 31, Dec 31,
(In thousands, except per share data) 1997 1996 1997 1996 1996 1995
---------------------- -------------------------- --------------------------
<S> <C> <C> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 471,148 $ 386,206 $ 1,350,633 $ 1,078,991 $ 1,486,719 $ 1,211,926
Interest on investment securities:
Taxable 36,447 25,479 103,877 72,160 101,862 100,832
Non-taxable 5,205 5,892 15,668 18,935 24,499 30,839
---------------------- -------------------------- --------------------------
Total interest on investment securities 41,652 31,371 119,545 91,095 126,361 131,671
Interest on securities available for sale 56,481 46,986 162,069 134,517 180,261 139,813
Interest on short-term investments 7,483 5,895 18,478 16,818 22,760 15,528
---------------------- -------------------------- --------------------------
Total interest income 576,764 470,458 1,650,725 1,321,421 1,816,101 1,498,938
Interest expense:
Deposits 194,575 163,992 547,002 473,255 644,613 564,064
Short-term borrowings 67,679 52,558 203,057 144,129 194,159 174,330
Federal Home Loan Bank advances 30,450 15,724 75,445 36,284 57,387 20,511
Long-term debt 15,744 9,859 45,198 28,667 42,035 32,518
---------------------- -------------------------- --------------------------
Total interest expense 308,448 242,133 870,702 682,335 938,194 791,423
Net interest income 268,316 228,325 780,023 639,086 877,907 707,515
Taxable equivalent adjustment (2,522) (2,875) (7,647) (9,085) (11,881) (14,315)
Provision for loan losses 20,002 21,905 68,880 62,830 90,027 61,286
---------------------- -------------------------- --------------------------
Net interest income after provision
for loan losses 245,792 203,545 703,496 567,171 775,999 631,914
Non-interest income:
Service charges on deposit accounts 32,686 28,738 94,321 79,517 109,211 93,276
Mortgage banking operations 7,135 8,606 19,996 30,796 42,096 31,712
Bank card fees 5,535 5,417 17,141 16,397 22,726 18,699
Trust fees 6,171 5,298 17,904 15,804 21,887 18,936
Other fee income 11,307 8,554 31,428 27,020 36,845 33,758
Securities gains, net 1,053 86 1,451 142 1,409 193
Other 5,909 3,811 13,579 15,902 20,635 12,090
---------------------- -------------------------- --------------------------
Total non-interest income 69,796 60,510 195,820 185,578 254,809 208,664
Non-interest expense:
Salaries and employee benefits 105,202 81,956 298,065 241,552 331,600 281,546
Net occupancy expense 15,216 12,924 43,593 37,255 49,361 43,423
Equipment expense 11,785 9,442 32,978 26,691 37,336 30,932
Other 60,784 64,931 174,550 166,234 225,001 180,633
---------------------- -------------------------- --------------------------
Total non-interest expense 192,987 169,253 549,186 471,732 643,298 536,534
Income before income taxes 122,601 94,802 350,130 281,017 387,510 304,044
Income tax expense 44,113 29,081 125,375 94,732 132,807 105,039
---------------------- -------------------------- --------------------------
Net income $ 78,488 $ 65,721 $ 224,755 $ 186,285 $ 254,703 $ 199,005
====================== ========================== ==========================
Avg number of shares outstanding (000's) 100,692 96,673 99,874 94,066 94,769 84,401
Net income per share $ 0.78 $ 0.68 $ 2.25 $ 1.98 $ 2.69 $ 2.36
Cash dividends per share 0.25 0.22 0.75 0.66 0.88 0.80
---------------------- -------------------------- --------------------------
</TABLE>
<PAGE> 9
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.
SOUTHTRUST CORPORATION
By: /s/ WILLIAM L. PRATER
---------------------------------
William L. Prater
Senior Vice President
Date: October 8, 1997
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