<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
January 12, 1998
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)
<PAGE> 2
ITEM 5. OTHER EVENTS
There is annexed to this Form 8-K a press release of SouthTrust
Corporation (the "Company") dated January 12, 1998 and accompanying financial
information of the Company relating to, among other things, the results of
operations and financial condition of the Company for the year ended December
31, 1997.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits
99.1 Press Release
<PAGE> 3
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: January 12, 1998
<PAGE> 1
EXHIBIT 99.1
CONTACT: BUTCH CROUCH
INVESTOR RELATIONS
(205) 254-6868
JEANNIE COLQUETT
CORPORATE COMMUNICATIONS
(205) 254-5523
FOR IMMEDIATE RELEASE
SOUTHTRUST ANNOUNCES RECORD NET INCOME FOR 1997
AND THE FOURTH QUARTER
BIRMINGHAM, Ala. (Jan. 12, 1998)---SouthTrust Corporation reported
record earnings for both the year as well as the fourth quarter of 1997,
according to Wallace D. Malone, Jr., chairman and chief executive officer of the
Corporation.
1997 net income totaled $306.7 million, up 20 percent over the $254.7
million reported in 1996. Diluted net income per share for the year was $3.05
for 1997 versus $2.69 in 1996, an increase of 13.4 percent. Basic net income per
share in 1997 was $3.07 compared with $2.71 in 1996. Diluted net income per
share has grown at a compound rate of 13.1 percent over the last five years.
Fourth quarter net income of $82.0 million was up 20 percent compared
with $68.4 million reported in the fourth quarter of 1996. Diluted net income
per share as well as basic income per share for the fourth quarter was $.80 in
1997 versus $.71 for 1996, an increase of 13 percent.
"SouthTrust completed the year with an excellent fourth quarter, and we
are extremely excited about the company's performance for both the last quarter
and, more importantly, the year," said Malone. "SouthTrust is very focused on
maintaining its strong momentum and building shareholder value on a long-term
and solid basis. The opportunities for us are terrific.
--more--
<PAGE> 2
SouthTrust Announces
Page Two
January 12, 1998
"Our recently announced $4.5 billion of acquisitions in Florida will
position SouthTrust with a major market presence in some of the highest growth
markets in this country. Florida's 15 million population is by far the largest
in the Southeast and is also the fastest growing. These acquisitions will give
SouthTrust more than 350,000 new customers and will add to SouthTrust's
significant position in markets that cover 93% of the best state banking market
in the country. With well above $10 billion in deposits in Florida by mid-year,
SouthTrust will become the fourth largest financial institution in Florida. To
support these acquisitions, SouthTrust is selling 4.5 million shares of common
stock. These acquisitions, together with the issuance of shares, is accretive to
earnings per share in 1998 and beyond. This continues our strategy of placing
SouthTrust in the right markets at the right time while giving us an even
stronger, more diversified franchise.
"We have a significant presence in virtually every high growth
Southeastern market, and we intend to continue our long-term strategy of
capitalizing on growth opportunities. During next year, we expect to see
two-thirds of our deposit business located outside Alabama; ten years ago we
were 100 percent within Alabama. We are very optimistic about 1998 and beyond,"
Malone said.
"SouthTrust is a strong, well-capitalized financial institution, which
produces sustainable, strong, consistent high-quality earnings performance and
growth as it continues to serve the best markets in the country. An outstanding
example of SouthTrust's quality performance is illustrated by the fact that
total revenues increased 21 percent in 1997 over 1996, matching our five-year
compound growth rate, also at 21 percent."
Stockholders' equity grew to $2.2 billion as of December 31, 1997. This
reflects a 26 percent increase over the $1.7 billion in stockholders' equity
reported one year ago. Return on average stockholders' equity was 15.7 percent
for 1997.
--more--
<PAGE> 3
SouthTrust Announces
Page Three
January 12, 1998
Total assets increased 18 percent, reaching a level of $30.9 billion as
of December 31, 1997. This compares with $26.2 billion one year ago. Loans
increased 16 percent to $22.5 billion, while deposits increased 13 percent to
$19.6 billion.
SouthTrust Corporation currently operates more than 540 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 is traded on the national over-the-counter market under the NASDAQ
symbol SOTR.
--more--
<PAGE> 4
SOUTHTRUST CORPORATION 4
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Three Months Ended Year Ended
INCOME SUMMARY ------------------ ----------------------
(In thousands, Dec 31, % Dec 31, %
except per share data) 1997 1996 Change 1997 1996 Change
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net income $ 81,953 $68,418 20 $306,708 $254,703 20
Average shares outstanding - basic 101,988 96,115 6 99,789 94,122 6
Average shares outstanding - diluted 103,027 96,866 6 100,672 94,769 6
Per share:
Net income - basic $ 0.80 $ 0.71 13 $ 3.07 $ 2.71 13
Net income - diluted 0.80 0.71 13 3.05 2.69 13
Cash dividends declared 0.25 0.22 14 1.00 0.88 14
Return on average assets 1.09 % 1.08 % 1.08 % 1.09 %
Return on average equity 15.21 16.02 15.72 15.92
Net interest margin (FTE) 3.90 4.03 3.94 4.03
Non-interest expense as a %
of average total assets 2.64 2.71 2.63 2.76
Efficiency ratio 56.78 55.92 56.47 56.86
</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) DEC 31, Sep 30, Jun 30, Mar 31, Dec 31,
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Non-accrual loans $118.8 $115.2 $103.7 $108.0 $ 82.8
Restructured loans 1.1 0.6 0.7 0.6 2.1
--------------------------------------------------------------
Total non-performing loans 119.9 115.8 104.4 108.6 84.9
Other real estate owned 43.8 47.7 52.6 46.5 43.9
Other repossessed assets 16.7 12.4 12.0 10.1 10.2
--------------------------------------------------------------
Total non-performing assets 180.4 175.9 169.0 165.2 139.0
Accruing loans 90 days or more past due 54.0 50.9 45.3 36.9 40.4
--------------------------------------------------------------
Total non-performing assets and accruing
loans 90 days or more past due $234.4 $226.8 $214.3 $202.1 $179.4
--------------------------------------------------------------
Allowance for loan losses $315.5 $310.7 $297.7 $284.5 $269.9
Provision for loan losses 21.7 20.0 26.5 22.4 27.2
Net charge-offs 17.0 9.9 13.3 11.6 12.5
RATIOS:
For the Period Ended:
Net charge-offs as a % of average
net loans (annualized basis) 0.31 % 0.18 % 0.26 % 0.24 % 0.27 %
Period End:
Allowance as a % of net loans 1.40 1.43 1.41 1.41 1.40
Allowance as a % of non-
performing loans 263.16 268.38 285.08 261.89 317.57
Non-performing assets as a % of loans net
of unearned income plus OREO 0.80 0.81 0.80 0.82 0.72
Non-performing assets and accruing loans 90
days or more past due as a % of loans
net of unearned income plus OREO 1.04 1.04 1.01 1.00 0.93
</TABLE>
<PAGE> 5
SOUTHTRUST CORPORATION 5
TAXABLE EQUIVALENT INTEREST YIELDS/RATES
<TABLE>
<CAPTION>
1997 1996
INTEREST INCOME DEC 31, Sep 30, Jun 30, Mar 31, Dec 31,
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Interest and fees on loans 8.74 % 8.76 % 8.81 % 8.79 % 8.73 %
Interest on Held-to-Maturity securities:
Taxable 6.93 7.09 7.17 7.02 7.17
Non-taxable 10.29 11.05 10.47 10.58 10.25
Securities Available-for-Sale 6.60 6.55 6.69 6.51 6.41
Interest on short-term investments 8.65 7.13 8.04 7.36 7.34
--------------------------------------------------------------
Total interest-earning assets 8.35 8.35 8.41 8.39 8.34
INTEREST EXPENSE
Interest on deposits 4.64 % 4.63 % 4.60 % 4.70 % 4.72 %
Interest on short-term borrowings 5.55 5.57 5.55 5.39 5.28
Interest on Federal Home Loan Bank advances 5.37 5.38 5.41 5.17 5.30
Interest on long-term debt 6.44 6.36 6.13 5.98 5.90
--------------------------------------------------------------
Total interest-bearing liabilities 4.95 4.95 4.93 4.93 4.92
Net interest margin 3.90 % 3.89 % 3.97 % 4.04 % 4.03 %
--------------------------------------------------------------
Net interest spread 3.40 3.40 3.48 3.46 3.42
</TABLE>
STOCKHOLDERS' EQUITY AND REGULATORY CAPITAL
<TABLE>
<CAPTION>
1997 1996
DEC 31, Sep 30, Jun 30, Mar 31, Dec 31,
---------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
STOCKHOLDERS' EQUITY:
Stockholders' equity to assets 7.10 % 6.77 % 6.69 % 6.84 % 6.62 %
Book value per share $ 21.42 $ 20.19 $ 19.57 $ 18.78 $ 18.05
End of period shares outstanding (000's) 102,443 99,794 99,713 99,619 96,139
REGULATORY CAPITAL:
Tier I capital ratio 7.87 % * 7.37 % 7.43 % 7.66 % 7.33 %
Supplemental capital elements 4.42 * 4.02 4.14 4.30 4.46
---------------------------------------------------------------
Total risk-based capital ratios 12.29 % * 11.39 % 11.57 % 11.96 % 11.79 %
---------------------------------------------------------------
Leverage ratio 6.61 % 6.14 % 6.08 % 6.47 % 6.21 %
</TABLE>
* Current quarter ratios are estimated.
<PAGE> 6
SOUTHTRUST CORPORATION 6
CONDENSED STATEMENTS OF CONDITION
<TABLE>
<CAPTION>
ENDING BALANCE QUARTER AVERAGE YTD AVERAGE
(Unaudited) DEC 31, Dec 31, DEC 31, Dec 31, DEC 31, Dec 31,
(In millions) 1997 1996 1997 1996 1997 1996
----------------------- ------------------------- -----------------------
<S> <C> <C> <C> <C> <C> <C>
Loans, net of unearned income $22,474.8 $19,331.1 $21,927.0 $18,576.6 $20,888.9 $16,885.4
Held-to-Maturity securities:
Taxable 2,395.3 1,744.9 2,294.8 1,648.0 2,037.4 1,491.8
Non-taxable 161.9 211.7 172.7 215.9 190.0 230.1
----------------------- ------------------------- -----------------------
Total Held-to-Maturity securities 2,557.2 1,956.6 2,467.5 1,863.9 2,227.4 1,721.9
Available-for-Sale securities 2,917.1 2,859.0 3,242.0 2,819.6 3,272.1 2,825.5
Short-term investments:
Federal funds sold and securities
purchased under resale agreements 49.2 12.2 38.0 39.6 28.3 66.5
Interest-bearing deposits in other banks 0.2 4.2 16.1 16.0 18.0 17.5
Assets held for sale 462.6 209.1 424.6 266.3 335.0 258.0
----------------------- ------------------------- -----------------------
Total short-term investments 512.0 225.5 478.7 321.9 381.3 342.0
Total earning assets 28,461.1 24,372.2 28,115.2 23,582.0 26,769.7 21,774.8
Allowance for loan losses (315.5) (269.9) (315.9) (260.5) (298.2) (239.3)
Other assets 2,760.8 2,120.9 2,128.6 1,855.0 2,000.9 1,748.5
----------------------- ------------------------- -----------------------
Total assets $30,906.4 $26,223.2 $29,927.9 $25,176.5 $28,472.4 $23,284.0
======================= ========================= =======================
Deposits:
Interest-bearing $17,297.9 $14,725.1 $16,945.5 $14,453.8 $16,057.0 $13,607.5
Other 2,288.7 2,580.4 2,080.0 2,351.7 2,095.4 2,270.5
----------------------- ------------------------- -----------------------
Total deposits 19,586.6 17,305.5 19,025.5 16,805.5 18,152.4 15,878.0
Federal funds purchased and other
short-term borrowed funds 4,750.4 4,071.0 4,557.8 3,768.3 4,834.8 3,636.7
Federal Home Loan Bank advances 2,782.4 1,744.2 2,745.9 1,583.4 2,107.6 1,088.3
Long-term debt 1,106.4 983.2 1,003.6 901.0 986.8 696.6
Other liabilities 486.0 384.4 457.8 419.4 439.6 384.8
Stockholders' equity 2,194.6 1,734.9 2,137.3 1,698.9 1,951.2 1,599.6
----------------------- ------------------------- -----------------------
Total liabilities and
stockholders' equity $30,906.4 $26,223.2 $29,927.9 $25,176.5 $28,472.4 $23,284.0
======================= ========================= =======================
</TABLE>
<PAGE> 7
SOUTHTRUST CORPORATION 7
CONDENSED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
FULLY-TAXABLE EQUIVALENT BASIS QUARTER ENDED YEAR ENDED
(Unaudited) DEC 31, Dec 31, DEC 31, Dec 31,
(In thousands, except per share data) 1997 1996 1997 1996
---------------------- --------------------------
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $482,919 $407,728 $1,833,552 $1,486,719
Interest on Held-to-Maturity securities:
Taxable 40,065 29,702 143,941 101,862
Non-taxable 4,477 5,564 20,146 24,499
---------------------- --------------------------
Total interest on Held-to-Maturity securities 44,542 35,266 164,087 126,361
Interest on Available-for-Sale securities 53,622 45,744 215,692 180,261
Interest on short-term investments 10,438 5,942 28,916 22,760
---------------------- --------------------------
Total interest income 591,521 494,680 2,242,247 1,816,101
Interest expense:
Deposits 198,120 171,358 745,122 644,613
Short-term borrowings 63,759 50,030 266,816 194,159
Federal Home Loan Bank advances 37,200 21,103 112,646 57,387
Long-term debt 16,297 13,368 61,495 42,035
---------------------- --------------------------
Total interest expense 315,376 255,859 1,186,079 938,194
Net interest income 276,145 238,821 1,056,168 877,907
Taxable equivalent adjustment (2,347) (2,796) (9,995) (11,881)
Provision for loan losses 21,734 27,197 90,613 90,027
---------------------- --------------------------
Net interest income after provision
for loan losses 252,064 208,828 955,560 775,999
Non-interest income:
Service charges on deposit accounts 35,549 29,695 129,869 109,211
Mortgage banking operations 7,246 11,300 27,242 42,096
Bank card fees 5,839 6,329 22,981 22,726
Trust fees 6,625 6,082 24,529 21,887
Other fee income 11,090 9,825 42,518 36,845
Securities gains, net 288 1,267 1,739 1,409
Other 8,050 4,733 21,629 20,635
---------------------- --------------------------
Total non-interest income 74,687 69,231 270,507 254,809
Non-interest expense:
Salaries and employee benefits 106,781 90,048 404,846 331,600
Net occupancy expense 16,564 12,107 60,158 49,361
Equipment expense 12,746 10,645 45,724 37,336
Other 62,939 58,766 237,488 225,001
---------------------- --------------------------
Total non-interest expense 199,030 171,566 748,216 643,298
Income before income taxes 127,721 106,493 477,851 387,510
Income tax expense 45,768 38,075 171,143 132,807
---------------------- --------------------------
Net income $ 81,953 $ 68,418 $ 306,708 $ 254,703
====================== ==========================
Avg shares outstanding - basic (000's) 101,988 96,115 99,789 94,122
Avg shares outstanding - diluted 103,027 96,866 100,672 94,769
Net income per share - basic $ 0.80 $ 0.71 $ 3.07 $ 2.71
Net income per share - diluted 0.80 0.71 3.05 2.69
Cash dividends per share 0.25 0.22 1.00 0.88
</TABLE>
###
