ITEM 5. OTHER EVENTS
The purpose of this Current Report on Form 8-K is to file Southern
National Corporation's Quarterly Performance Summary for the fourth quarter
of 1995, including sections distributed to the media and a supplement
distributed to analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued January 18,
1996.
<PAGE>
For Further Information:
ANALYSTS MEDIA
B. Gloyden Stewart, Jr. Scott E. Reed Bob Denham
Senior Vice President Senior Executive Vice President Vice President
Investor Relations Chief Financial Officer Public Relations
(919) 399-4219 (910) 733-3088 (910) 773-7363
January 18, 1996
FOR IMMEDIATE RELEASE
SOUTHERN NATIONAL REPORTS 1995 EARNINGS
WINSTON-SALEM, N.C. -- Southern National Corporation reported net income
of $70.1 million for the fourth quarter ended December 31, 1995, reflecting
growth in earnings of 11.9% compared to the fourth quarter of 1994. On a per
share basis, fully diluted net income was $.64, an increase of 10.3% over
fourth quarter 1994 earnings of $.58. For the quarter, the return on average
assets was 1.36% and the return on common shareholders' equity was 17.35%.
Net income for 1995 totaled $178.1 million including net expenses related
to the merger between Southern National and BB&T of $76.3 million, after
tax. Fully diluted earnings per share for the year, including merger-related
items, were $1.64, compared to prior year earnings of $2.21.
Exclusive of these nonrecurring items, Southern National would have had
net income after taxes of $254.5 million, which is a 7.4% increase over 1994
net income of $236.9 million. On a per share basis, fully diluted earnings,
excluding nonrecurring items, were $2.34 for 1995, a 5.9% increase over the
prior year amount of $2.21. Recurring earnings for the year produced returns
of 1.26% on average assets and 16.65% on average common shareholders'
equity.
In releasing earnings, John A. Allison, chairman and chief executive
officer of Southern National, said, "We are extremely pleased with the
overall performance of Southern National. On a recurring basis, fully
diluted earnings per share have experienced consistent improvement from $.54
in the first quarter to $.55 in the second, $.61 in the third and $.64 in
the fourth quarter. The efficiency ratio improved to 53.2% in the fourth
quarter reflecting the cost savings which have been achieved.
<PAGE>
"1995 has been a year of tremendous growth and change for Southern
National. We completed a merger with Commerce Bank of Virginia Beach,
Virginia in January, consummated the merger of equals in February, and
completed the related systems conversion in May. During the fourth quarter,
we converted the systems of Lexington State Bank and Community Bank of South
Carolina.
"Our challenge throughout the year has been to protect our valuable
customer relationships despite dramatic growth and intense competitive
pressures. Customers have responded very positively to the changes, as
evidenced by an increased number of customer accounts both during the year,
and particularly during the two week conversion of Southern National's
systems. Also, through our successful cross-selling efforts, we have
increased the number of services provided to each customer during the year,
which we believed would be a strength of the new bank. These results
demonstrate the commitment of our employees to meet our customers' needs
with superior service.
"The merger also provided positive results for our shareholders. During
July, Southern National increased the quarterly dividend by 15%, the 23rd
consecutive year that we have increased the dividend. Our five-year compound
annual return to shareholders has been 25.5%, compared to an average rate of
return for the S&P 500 of 16.4%."
Southern National had consolidated assets of $20.5 billion, consolidated
loans of $13.8 billion and consolidated deposits of $14.7 billion at the end
of December. Through its subsidiaries in North Carolina, South Carolina and
Virginia, Southern National currently operates 441 banking offices.
The common stock of Southern National Corporation is traded on the New
York Stock Exchange under the symbol SNB. The stock closed at $26.63 on
January 17.
#
Southern National's news releases are available at no charge through PR
Newswire's Company News On-Call facsimile service. For a menu of Southern
National's news releases or to retrieve a specific release call 800-758-
5804, extension 809325.
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
Southern National Corporation (NYSE:SNB) Senior Vice President (919) 399-4219
Page 3 Investor Relations (919) 399-4871
For the Three Months Ended Increase / (Decrease)
<CAPTION>
(Dollars in thousands, except per share data) 12/31/95 12/31/94 $ %
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 403,798 $ 364,491 $ 39,307 10.8 %
Interest expense 205,692 166,979 38,713 23.2
Net interest income - taxable equivalent 198,106 197,512 594 .3
Less: Taxable equivalent adjustment 8,611 7,248 1,363 18.8
Net interest income 189,495 190,264 (769) (.4)
Provision for loan & lease losses 10,400 7,104 3,296 46.4
Net interest income after provision for
loan & lease losses 179,095 183,160 (4,065) (2.2)
Noninterest income 60,826 58,271 2,555 4.4
Noninterest expense 138,701 146,138 (7,437) (5.1)
Income before income taxes 101,220 95,293 5,927 6.2
Provision for income taxes 31,130 32,651 (1,521) (4.7)
Net income $ 70,090 $ 62,642 $ 7,448 11.9 %
PER SHARE DATA
Primary earnings $ .66 $ .60 $ 0.06 10.0 %
Fully diluted earnings .64 .58 0.06 10.3
Weighted average shares - Primary 104,756,961 102,948,357
Fully diluted 109,101,185 107,996,378
Dividends paid on common shares $ .23 $ .20 $ .03 15.0 %
PERFORMANCE RATIOS
Return on average assets 1.36 % 1.27 %
Return on average common equity 17.35 17.09
Net yield on earning assets (taxable equivalent) 4.07 4.26
Efficiency (taxable equivalent) * 53.2 % 57.5 %
</TABLE>
<TABLE>
For the Twelve Months Ended Increase / (Decrease)
<CAPTION>
(Dollars in thousands, except per share data) 12/31/95 12/31/94 $ %
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 1,580,711 $ 1,346,133 $ 234,578 17.4 %
Interest expense 806,627 581,279 225,348 38.8
Net interest income - taxable equivalent 774,084 764,854 9,230 1.2
Less: Taxable equivalent adjustment 32,535 28,088 4,447 15.8
Net interest income 741,549 736,766 4,783 .6
Provision for loan & lease losses 31,400 17,846 13,554 75.9
Net interest income after provision for
loan & lease losses 710,149 718,920 (8,771) (1.2)
Noninterest income 226,350 226,047 303 .1
Noninterest expense 672,303 583,336 88,967 15.3
Income before income taxes 264,196 361,631 (97,435) (26.9)
Provision for income taxes 86,063 124,759 (38,696) (31.0)
Net income $ 178,133 $ 236,872 (58,739) (24.8) %
PER SHARE DATA
Primary earnings $ 1.66 $ 2.26 $ (0.60) (26.5) %
Fully diluted earnings 1.64 2.21 (0.57) (25.8)
Weighted average shares - Primary 103,982,495 102,348,773
Fully diluted 109,007,628 107,399,466
Dividends paid on common shares $ .86 $ 0.74 $ .12 16.2 %
PERFORMANCE RATIOS
Return on average assets .88 % 1.25 %
Return on average common equity 11.56 16.88
Net yield on earning assets (taxable equivalent) 4.05 4.29
Efficiency (taxable equivalent) * 55.8 % 58.7 %
NOTE: Fully diluted earnings per share, excluding merger-related nonrecurring items, were $2.34 for 1995.
* Excludes securities gains (losses) & foreclosed property expense.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
Southern National Corporation (NYSE:SNB) Senior Vice President (919) 399-4219
Page 4 Investor Relations (919) 399-4871
For the Twelve Months Ended Increase / (Decrease)
<CAPTION>
(Dollars in thousands, except per share data) 12/31/95 12/31/94 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 1,580,711 $ 1,346,133 $ 234,578 17.4 %
Interest expense 806,627 581,279 225,348 38.8
Net interest income - taxable equivalent 774,084 764,854 9,230 1.2
Less: Taxable equivalent adjustment 32,535 28,088 4,447 15.8
Net interest income 741,549 736,766 4,783 .6
Provision for loan & lease losses 31,400 17,846 13,554 75.9
Net interest income after provision for
loan & lease losses 710,149 718,920 (8,771) (1.2)
Noninterest income 234,313 226,047 8,266 3.7
Noninterest expense 564,816 583,336 (18,520) (3.2)
Income before income taxes 379,646 361,631 18,015 5.0
Provision for income taxes 125,182 124,759 423 .3
Net income as adjusted 254,464 236,872 17,592 7.4
Nonrecurring items 76,331 -- 76,331 NM
Net income $ 178,133 $ 236,872 (58,739) (24.8) %
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Primary earnings $ 2.40 $ 2.26 $ 0.14 6.2 %
Fully diluted earnings 2.34 2.21 0.13 5.9
</TABLE>
<TABLE>
As of / For the Twelve Months Ended Increase / (Decrease)
<CAPTION>
(Dollars in thousands) 12/31/95 12/31/94 $ %
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C>
Securities, at carrying value* $ 5,355,313 $ 5,425,117 $ (69,804) (1.3) %
Loans & leases* 13,812,485 13,108,102 704,383 5.4
Allowance for losses 172,158 171,734 424 .2
Other earning assets 120,149 33,983 86,166 253.6
Total earning assets 19,236,767 18,686,965 549,802 2.9
Total assets 20,492,929 19,855,063 637,866 3.2
Total deposits 14,684,056 14,314,154 369,902 2.6
Short-term borrowed funds 2,491,285 2,902,528 (411,243) (14.2)
Long-term debt 1,383,935 910,755 473,180 52.0
Total interest-bearing liabilities 16,673,551 16,284,418 389,133 2.4
Common equity 1,604,000 1,422,334 181,666 12.8
Preferred equity 70,063 74,143 (4,080) (5.5)
Total shareholders' equity $ 1,674,063 $ 1,496,477 $ 177,586 11.9 %
Average balances
Securities, at amortized cost* $ 5,405,773 $ 5,350,982 $ 54,791 1.0 %
Loans & leases* 13,640,565 12,360,633 1,279,932 10.4
Other earning assets 44,384 130,670 (86,286) (66.0)
Total earning assets 19,090,722 17,842,285 1,248,437 7.0
Total assets 20,273,028 18,975,810 1,297,218 6.8
Total deposits 14,251,176 14,298,728 (47,552) (.3)
Short-term borrowed funds 3,055,180 2,321,379 733,801 31.6
Long-term debt 1,127,575 677,227 450,348 66.5
Total interest-bearing liabilities 16,688,104 15,558,826 1,129,278 7.3
Common equity 1,497,624 1,372,469 125,155 9.1
Preferred equity 72,345 74,143 (1,798) (2.4)
Total shareholders' equity $ 1,569,969 $ 1,446,612 $ 123,357 8.5 %
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
* Balances include the securitization of $354.9 million of end of period loans during 1995. The
year-to-date average of securitized loans was $82.7 million.
Applicable ratios are annualized.
NM - not meaningful.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
Southern National Corporation (NYSE:SNB) Senior Vice President (919) 399-4219
Page 5 Investor Relations (919) 399-4871
(Dollars in thousands, except per share data)
As of / For the Quarter Ended
<CAPTION>
12/31/95 9/30/95 6/30/95 3/31/95 12/31/94
INCOME STATEMENT
Interest income - taxable equivalent
<S> <C> <C> <C> <C> <C>
Interest & fees on loans &
leases $ 318,325 $ 316,711 $ 311,721 $ 295,197 $ 282,921
Interest & dividends on
securities 84,711 85,657 85,601 80,236 80,575
Interest on short-term
investments 762 401 733 656 995
Total interest income -
taxable equivalent 403,798 402,769 398,055 376,089 364,491
Interest expense
Interest on deposits 142,056 142,779 142,180 130,134 120,093
Interest on short-term
borrowed funds 42,805 46,821 48,194 41,059 34,051
Interest on long-term debt 20,831 20,384 14,761 14,623 12,835
Total interest expense 205,692 209,984 205,135 185,816 166,979
Net interest income -
taxable equivalent 198,106 192,785 192,920 190,273 197,512
Less: Taxable equivalent
adjustment 8,611 8,514 7,958 7,452 7,248
Net interest income 189,495 184,271 184,962 182,821 190,264
Provision for loan & lease
losses 10,400 7,000 7,000 7,000 7,104
Net interest income after
provision for loan & lease
losses 179,095 177,271 177,962 175,821 183,160
Noninterest income
Service charges on deposits 23,459 22,381 22,511 21,270 21,355
Mortgage banking activities 7,827 9,019 4,367 5,195 4,365
Trust revenue 5,151 4,483 4,715 4,280 5,278
General insurance commissions 3,815 3,479 4,163 4,115 4,067
Other nondeposit fees
& commissions 15,179 15,271 14,632 15,787 13,803
Gains on sale of servicing
rights, net -- -- -- -- 2,759
Securities gains (losses), net 131 1,114 -- (19,845) 7
Other income 5,264 5,818 16,989 5,780 6,637
Total noninterest income 60,826 61,565 67,377 36,582 58,271
Noninterest expense
Personnel expense 69,453 73,171 75,343 124,233 72,030
Occupancy & equipment expense 24,436 25,438 27,729 29,555 21,939
Federal deposit insurance
expense 4,114 2,901 7,975 8,005 8,083
Foreclosed property expense 910 524 1,034 700 705
Amortization expense -
intangible assets 2,817 2,982 2,522 2,279 2,173
Other noninterest expense 36,971 39,727 45,300 64,184 41,208
Total noninterest expense 138,701 144,743 159,903 228,956 146,138
Income (loss) before income
taxes 101,220 94,093 85,436 (16,553) 95,293
Provision for income taxes 31,130 31,613 27,528 (4,208) 32,651
Net income (loss) $ 70,090 $ 62,480 $ 57,908 $ (12,345) $ 62,642
PER SHARE DATA
Primary earnings (loss) $ .66 $ .59 $ .55 $ (.13) $ .60
Fully diluted earnings (loss) .64 .57 .53 (.13) .58
Dividends paid on common shares .23 .23 .20 .20 .20
Book value per common share 15.52 14.87 14.60 13.90 13.92
NOTES: Fully diluted earnings per share, excluding nonrecurring items, were $.54 in first quarter 1995, $.55 in second
quarter 1995, $.61 in third quarter 1995 & $.64 in fourth quarter 1995.
Certain prior quarter balances have been adjusted to reflect the adoption of SFAS No. 122, "Accounting for Mortgage
Servicing Rights."
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
Southern National Corporation (NYSE:SNB) Senior Vice President (919) 399-4219
Page 6 Investor Relations (919) 399-4871
As of / For the Quarter Ended
<CAPTION>
(Dollars in thousands) 12/31/95 9/30/95 6/30/95 3/31/95 12/31/94
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C> <C>
Securities, at carrying value* $ 5,355,313 $ 5,379,645 $ 5,554,214 $ 5,228,225 $ 5,425,117
Loans & leases* 13,812,485 14,045,637 13,767,610 13,373,094 13,108,102
Allowance for losses 172,158 174,069 176,175 174,189 171,734
Other earning assets 120,149 9,310 42,923 29,727 33,983
Total earning assets 19,236,767 19,420,965 19,350,181 18,675,745 18,686,965
Total assets 20,492,929 20,676,073 20,663,614 19,892,682 19,855,063
Total deposits 14,684,056 14,435,040 14,336,556 14,519,612 14,314,154
Short-term borrowed funds 2,491,285 3,012,707 3,147,213 2,690,366 2,902,528
Long-term debt 1,383,935 1,305,282 1,312,464 902,047 910,755
Total interest-bearing
liabilities 16,673,551 16,938,098 16,996,659 16,336,533 16,284,418
Common equity 1,604,000 1,536,458 1,499,184 1,420,573 1,422,334
Preferred equity 70,063 70,689 71,785 74,143 74,143
Total shareholders' equity 1,674,063 1,607,147 1,570,969 1,494,716 1,496,477
Goodwill 41,252 42,574 43,989 44,892 46,131
Core deposit & other intangibles 8,278 8,750 9,258 11,351 13,020
Total intangibles 49,530 51,324 53,247 56,243 59,151
Mortgage servicing rights 18,265 14,245 7,850 5,249 4,671
Negative goodwill 45,410 46,969 48,529 50,088 51,720
Average balances
Securities, at amortized cost* $ 5,321,514 $ 5,452,924 $ 5,466,584 $ 5,382,220 $ 5,449,499
Loans & leases* 13,915,553 13,889,121 13,543,229 13,203,804 12,865,637
Other earning assets 52,218 31,033 47,557 46,815 74,248
Total earning assets 19,289,285 19,373,078 19,057,370 18,632,839 18,389,384
Total assets 20,439,534 20,609,158 20,250,286 19,782,219 19,524,878
Total deposits 14,221,698 14,211,266 14,314,915 14,257,659 14,334,248
Short-term borrowed funds 2,930,923 3,201,200 3,219,920 2,866,363 2,643,910
Long-term debt 1,376,756 1,309,932 910,946 905,484 807,457
Total interest-bearing
liabilities 16,639,774 17,017,201 16,736,208 16,352,460 16,029,882
Common equity 1,574,242 1,518,167 1,466,777 1,429,493 1,424,207
Preferred equity 70,176 71,463 73,652 74,143 74,143
Total shareholders' equity 1,644,418 1,589,630 1,540,429 1,503,636 1,498,350
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 1,593,366 $ 1,549,420 $ 1,495,054 $ 1,432,677 $ 1,513,090
Total 1,746,645 1,715,171 1,664,728 1,588,705 1,671,574
Risk-based capital ratios:
Tier 1 13.0 % 12.0 % 11.3 % 11.5 % 12.3 %
Total 14.3 13.3 12.6 12.7 13.6
Leverage capital ratio 7.8 7.5 7.4 7.3 7.8
PERFORMANCE RATIOS
Return on average assets 1.36 % 1.20 % 1.15 % (.25) % 1.27 %
Return on average common equity 17.35 16.00 15.48 (3.87) 17.09
Net yield on earning assets
(taxable equivalent) 4.07 3.95 4.06 4.14 4.26
Efficiency (taxable
equivalent)** 53.2 54.5 57.9 58.7 57.5
Equity as a percentage of
total assets end of period 8.2 7.8 7.6 7.5 7.5
Average earning assets as
a percentage of average
total assets 94.4 94.0 94.1 94.2 94.2
Average loans & leases
as a percentage of average
deposits 97.8 97.7 94.6 92.6 89.8
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
* Balances include the securitization of $354.9 million of loans during 1995. The year-to-date average of
securitized loans was $82.7 million.
** Excludes gains on sale of servicing rights, securities gains (losses) & foreclosed property expense for all
periods & nonrecurring items for 1995.
Certain prior quarter balances have been adjusted to reflect the adoption of SFAS No. 122, "Accounting for Mortgage
Servicing Rights."
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
Southern National Corporation (NYSE:SNB) Senior Vice President (919) 399-4219
Page 7 Investor Relations (919) 399-4871
(Dollars in thousands, except per share data)
As of / For the Quarter Ended
<CAPTION>
12/31/95 9/30/95 6/30/95 3/31/95 12/31/94
ASSET QUALITY ANALYSIS
<S> <C> <C> <C> <C> <C>
Allowance For Losses
Beginning balance $ 174,069 $ 176,175 $ 174,189 $ 171,734 $ 172,110
Allowance for acquired loans -- -- -- -- 1,119
Provision for losses 10,400 7,000 7,000 7,000 7,104
Charge-offs (15,128) (11,875) (8,378) (7,094) (11,916)
Recoveries 2,817 2,769 3,364 2,549 3,317
Ending balance $ 172,158 $ 174,069 $ 176,175 $ 174,189 $ 171,734
Nonperforming Assets
Nonaccrual loans & leases $ 61,489 $ 62,763 $ 48,927 $ 48,451 $ 47,039
Foreclosed property 6,868 6,981 8,759 11,239 12,153
Nonperforming assets $ 68,357 $ 69,744 $ 57,686 $ 59,690 $ 59,192
Loans 90 days or more
past due & still accruing $ 29,094 $ 26,909 $ 30,335 $ 21,653 $ 24,224
Asset Quality Ratios
Nonaccrual loans & leases
as a percentage of total
loans & leases .45 % .45 % .36 % .36 % .36 %
Nonperforming assets as a percentage of:
Total assets .33 .34 .28 .30 .30
Loans & leases plus
foreclosed property .49 .50 .42 .45 .45
Net charge-offs as a percentage of
average loans & leases .35 .26 .15 .14 .27
Allowance for losses as a
percentage of loans & leases 1.25 1.24 1.28 1.30 1.31
Ratio of allowance for losses to:
Net charge-offs 3.52 x 4.82 x 8.76 x 9.45 x 5.03 x
Nonaccrual loans & leases 2.80 2.77 3.60 3.60 3.65
MEMO ITEMS
Unrealized appreciation
(depreciation) on securities
available for sale, net
of tax $ 31,167 $ 8,321 $ 9,055 $ (26,956) $ (72,584)
Common stock prices (daily
close): High 27.00 27.13 24.13 22.38 21.13
Low 25.63 23.63 19.88 18.88 17.13
End of Period 26.25 26.25 24.00 19.88 19.13
Weighted average shares -
Primary 104,756,961 104,367,957 103,523,801 103,380,544 102,948,357
Fully diluted 109,101,185 109,202,178 108,774,906 108,424,625 107,996,378
End of period shares outstanding 103,357,440 103,323,683 102,709,306 102,182,679 102,215,032
End of period offices 441 447 452 530
</TABLE>
<TABLE>
As of / For the Twelve Months Ended Increase / (Decrease)
<CAPTION>
(Dollars in thousands, except per share data) 12/31/95 12/31/94 $ %
ASSET QUALITY ANALYSIS
<S> <C> <C> <C> <C>
Allowance For Losses
Beginning balance $ 171,734 $ 169,345 $ 2,389 1.4 %
Allowance for acquired loans -- 1,119 (1,119) NM
Provision for losses 31,400 17,846 13,554 75.9
Charge-offs (42,475) (30,070) 12,405 41.3
Recoveries 11,499 13,494 (1,995) (14.8)
Ending balance $ 172,158 $ 171,734 $ 424 0.2 %
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases 0.23 % 0.13 %
Ratio of allowance for losses to
net charge-offs 5.56 x 10.36 x
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
Certain prior quarter balances have been adjusted to reflect the adoption of SFAS No. 122, "Accounting for Mortgage
Servicing Rights."
Net charge-offs for the twelve months ended December 31, 1995 & 1994 were $31.0 million & $16.6 million, respectively.
NM - not meaningful.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
Southern National Corporation (NYSE:SNB) Senior Vice President (919) 399-4219
Page 8 Investor Relations (919) 399-4871
For the Quarter Ended
<CAPTION>
12/31/95 9/30/95 6/30/95 3/31/95 12/31/94
INTEREST YIELDS/RATES (Taxable equivalent)
<S> <C> <C> <C> <C> <C>
Interest income:
Securities* 6.32 % 6.23 % 6.28 % 6.05 % 5.87 %
Loans & leases 9.08 9.05 9.23 9.07 8.72
Other earning assets 5.79 5.13 6.18 5.68 5.32
Total earning assets* 8.31 8.25 8.38 8.19 7.86
Interest expense:
Interest-bearing deposits 4.52 4.53 4.52 4.20 3.79
Short-term borrowed funds 5.79 5.80 6.00 5.81 5.11
Long-term debt 6.00 6.17 6.50 6.55 6.31
Total interest-bearing liabilit 4.90 4.90 4.92 4.61 4.13
Net yield on earning assets 4.07 % 3.95 % 4.06 % 4.14 % 4.26 %
*Yields calculated based on securities at amortized cost.
Certain prior quarter balances have been adjusted to reflect the adoption of SFAS No. 122, "Accounting for Mortgage
Servicing Rights."
</TABLE>
<TABLE>
As of
(Dollars in thousands) 12/31/95
DERIVATIVES: INTEREST RATE SWAPS
<CAPTION>
Notional Receive Pay Unrealized
Type Amount Rate Rate Gains (Losses)
<S> <C> <C> <C> <C>
Receive fixed swaps $ 140,000 7.16 % 5.95 % $ 1,005
Pay fixed swaps 353,413 5.85 5.84 (3,384)
Basis swaps 250,000 5.81 5.76 (3,688)
Total $ 743,413 6.08 % 5.83 % $ (6,067)
</TABLE>
<TABLE>
<CAPTION>
One Year One to After
Contractual Maturity Schedule Total or Less Five Years Five Years
<S> <C> <C> <C> <C>
Receive fixed swaps $ 140,000 $ 40,000 $ 100,000 $ --
Pay fixed swaps 353,413 41,525 307,219 4,669
Basis swaps 250,000 -- 250,000 --
Total $ 743,413 $ 81,525 $ 657,219 $ 4,669
</TABLE>
<PAGE>
S I G N A T U R E
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.
SOUTHERN NATIONAL CORPORATION
(Registrant)
By: /s/ Sherry A. Kellett
Sherry A. Kellett, Controller
Date: January 19, 1996
