UNITED STATES
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)
July 12, 1996
Southern National Corporation
(Exact name of registrant as specified in its charter)
Commission file number : 1-10853
North Carolina 56-0939887
(State of incorporation) (I.R.S. Employer Identification No.)
200 West Second Street
Winston-Salem, North Carolina 27101
(Address of principal executive offices) (Zip Code)
(910) 733-2000
(Registrant's telephone number, including area code)
This Form 8-K has 11 pages. The sequential numbering of the pages is
indicated in the lower center.
<PAGE>
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 second quarter of
1996, including sections distributed to the media and a supplement distributed
to analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued July 12, 1996
<PAGE>
July 12, 1996
FOR IMMEDIATE RELEASE
Contacts:
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) 246-4219 (910) 733-3088 (910) 733-2202
Southern National reports record 2nd quarter earnings
WINSTON-SALEM, N.C. -- Southern National Corporation (NYSE:SNB) earned
a record $73.9 million for the second quarter ended June 30, 1996, up 27.6%
compared to the $57.9 million earned during the second quarter of 1995. Fully
diluted earnings per share increased 32.1% to $.70, compared to $.53 earned in
the prior year. Southern National's results produced a return on average
assets of 1.47% and a return on average equity of 18.68%. Both indicators
demonstrate strong profitability.
"We developed several specific strategic objectives for 1996, including
a commitment to substantially improve our net interest margin and increase our
noninterest income by more than 20%," said Chairman and Chief Executive
Officer John A. Allison. "Our success in these areas has produced significant
positive trends in earnings."
For the six months ended June 30, 1996, Southern National reported net
income of $143.5 million, an increase of 21.4% over the recurring earnings
recorded in the first six months of 1995. Earnings per fully diluted share for
the six months were $1.35, compared to $1.09 recorded on a recurring basis in
the prior year, which is an increase of 23.9%.
MORE
<PAGE>
Net interest income was $394.5 million for the six months, up $26.7
million compared to the prior year. This increase was driven by significant
growth in the net interest margin, which improved from 4.10% to 4.34% for the
six months. Noninterest income rose 23.7% on a recurring basis, boosted by
growth in mortgage banking income, investment services, service charges on
deposit products and insurance commissions. The efficiency ratio, a measure of
productivity, improved to 53.8% compared to 58.3% for the prior year.
Southern National securitized $510.2 million of loans during the second
quarter. This securitization program, which began during 1995, has been
undertaken to enhance liquidity and provide flexibility in managing mortgage
loan assets. Excluding the impact of these securitizations, average loans
would have grown at a rate of 7.5% for the six months ended June 30, 1996,
compared to the same period in 1995.
"Obviously, we are delighted with our financial achievements during the
first half of 1996," Allison said. "We enthusiastically anticipate that the
second half of 1996 will provide continued earnings growth, increased
identification with the BB&T brand, continued superior service quality for our
customers and progress in the development of alternative delivery systems for
our products."
During the second quarter, the Board of Directors of Southern National
approved a 17.4% increase in the quarterly dividend paid to common
shareholders effective August 1, 1996. The increase, to $.27 per share, marks
the 24th consecutive year that Southern National has declared an increase in
the dividend.
Southern National, with $20.6 billion in consolidated assets at June
30, 1996, is the parent company of Branch Banking and Trust Company (BB&T) and
controls the second largest share of deposits in North Carolina and the third
largest in South Carolina. Through its subsidiaries in the Carolinas and
Virginia, Southern National currently operates 432 banking offices in 219
cities and towns.
The common stock of Southern National Corporation is traded on the New
York Stock Exchange under the symbol SNB. The stock closed at $28.63 on July 11.
#
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) 246-4219
Page 3 Investor Relations (919) 246-4871
<CAPTION>
For the Three Months Ended Increase / (Decrease)
(Dollars in thousands, except per share data) 6/30/96 6/30/95 $ %
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 397,325 $ 398,055 $ (730) (.2) %
Interest expense 188,041 205,135 (17,094) (8.3)
Net interest income - taxable equivalent 209,284 192,920 16,364 8.5
Less: Taxable equivalent adjustment 8,446 7,958 488 6.1
Net interest income 200,838 184,962 15,876 8.6
Provision for loan & lease losses 12,000 7,000 5,000 71.4
Net interest income after provision for loan
& lease losses 188,838 177,962 10,876 6.1
Noninterest income 71,803 67,377 4,426 6.6
Noninterest expense 150,464 159,903 (9,439) (5.9)
Income before income taxes 110,177 85,436 24,741 29.0
Provision for income taxes 36,260 27,528 8,732 31.7
Net income $ 73,917 $ 57,908 16,009 27.6 %
PER SHARE DATA
Primary earnings $ .70 $ .55 $ .15 27.3 %
Fully diluted earnings .70 .53 .17 32.1
Weighted average shares - Primary 105,150,050 103,523,801
Fully diluted 105,436,287 108,774,906
Dividends paid on common shares $ .23 $ .20 $ .03 15.0 %
PERFORMANCE RATIOS
Return on average assets 1.47 % 1.15 %
Return on average common equity 18.68 15.48
Return on average total equity 18.68 15.08
Net yield on earning assets (taxable equivalent) 4.39 4.06
Efficiency (taxable equivalent) * 53.4 57.9
For the Six Months Ended Increase / (Decrease)
(Dollars in thousands, except per share data) 6/30/96 6/30/95 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 789,175 $ 774,144 $ 15,031 1.9 %
Interest expense 378,180 390,951 (12,771) (3.3)
Net interest income - taxable equivalent 410,995 383,193 27,802 7.3
Less: Taxable equivalent adjustment 16,514 15,410 1,104 7.2
Net interest income 394,481 367,783 26,698 7.3
Provision for loan & lease losses 22,500 14,000 8,500 60.7
Net interest income after provision for loan &
lease losses 371,981 353,783 18,198 5.1
Noninterest income 139,470 104,354 35,116 33.7
Noninterest expense 297,410 389,254 (91,844) (23.6)
Income before income taxes 214,041 68,883 145,158 210.7
Provision for income taxes 70,514 23,320 47,194 202.4
Net income $ 143,527 $ 45,563 $ 97,964 215.0 %
PER SHARE DATA
Primary earnings $ 1.38 $ .42 $ .96 228.6 %
Fully diluted earnings 1.35 .42 .93 221.4
Weighted average shares - Primary 103,840,916 103,342,418
Fully diluted 106,038,145 108,665,929
Dividends paid on common shares .46 .40 .06 15.0
PERFORMANCE RATIOS
Return on average assets 1.43 % .46 %
Return on average common equity 18.27 5.98
Return on average total equity 18.00 6.04
Net yield on earning assets (taxable
equivalent) 4.34 4.10
Efficiency (taxable equivalent)* 53.8 58.3
NOTE: * Excludes securities gains (losses) & foreclosed property expense for all periods and nonrecurring items for 1995.
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
Southern National Corporation (NYSE:SNB) Senior Vice President (919) 246-4219
Page 4 Investor Relations (919) 246-4871
<CAPTION>
For the Six Months Ended Increase / (Decrease)
(Dollars in thousands, except per share data) 6/30/96 6/30/95 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 789,175 $ 774,144 $ 15,031 1.9 %
Interest expense 378,180 390,951 (12,771) (3.3)
Net interest income - taxable equivalent 410,995 383,193 27,802 7.3
Less: Taxable equivalent adjustment 16,514 15,410 1,104 7.2
Net interest income 394,481 367,783 26,698 7.3
Provision for loan & lease losses 22,500 14,000 8,500 60.7
Net interest income after provision for loan & lease
losses 371,981 353,783 18,198 5.1
Noninterest income 139,470 112,745 26,725 23.7
Noninterest expense 297,410 291,007 6,403 2.2
Income before income taxes 214,041 175,521 38,520 21.9
Provision for income taxes 70,514 57,306 13,208 23.0
Net income excluding nonrecurring items 143,527 118,215 25,312 21.4
Nonrecurring items, net of tax -- 72,652 (72,652) NM
Net income $ 143,527 $ 45,563 $ 97,964 215.0 %
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Primary earnings $ 1.38 $ 1.12 $ .26 23.2 %
Fully diluted earnings 1.35 1.09 .26 23.9
As of / For the Six Months Ended Increase / (Decrease)
(Dollars in thousands) 6/30/96 6/30/95 $ %
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value $ 5,261,852 $ 5,554,214 $ (292,362) (5.3) %
Loans & leases 13,981,478 13,767,610 213,868 1.6
Allowance for loan & lease losses 177,195 176,175 1,020 .6
Other earning assets 22,209 42,923 (20,714) (48.3)
Total earning assets 19,320,168 19,350,181 (30,013) (.2)
Total assets 20,556,137 20,663,614 (107,477) (.5)
Noninterest-bearing deposits 1,946,849 1,799,574 147,275 8.2
Interest-bearing deposits 13,043,835 12,536,982 506,853 4.0
Total deposits 14,990,684 14,336,556 654,128 4.6
Short-term borrowed funds 1,785,553 3,147,213 (1,361,660) (43.3)
Long-term debt 1,955,559 1,312,464 643,095 49.0
Total interest-bearing liabilities 16,784,947 16,996,659 (211,712) (1.2)
Common equity 1,577,251 1,499,184 78,067 5.2
Preferred equity -- 71,785 (71,785) NM
Total shareholders' equity $ 1,577,251 $ 1,570,969 $ 6,282 .4 %
Average balances
Securities, at amortized cost $ 4,966,587 $ 5,424,635 $ (458,048) (8.4) %
Loans & leases 13,996,301 13,374,454 621,847 4.6
Other earning assets 14,170 47,188 (33,018) (70.0)
Total earning assets 18,977,058 18,846,277 130,781 .7
Total assets 20,123,927 20,017,546 106,381 .5
Noninterest-bearing deposits 1,823,309 1,693,399 129,910 7.7
Interest-bearing deposits 12,723,687 12,593,046 130,641 1.0
Total deposits 14,546,996 14,286,445 260,551 1.8
Short-term borrowed funds 2,060,851 3,044,118 (983,267) (32.3)
Long-term debt 1,645,608 908,230 737,378 81.2
Total interest-bearing liabilities 16,430,146 16,545,394 (115,248) (.7)
Common equity 1,572,785 1,448,238 124,547 8.6
Preferred equity 30,484 73,896 (43,412) (58.7)
Total shareholders' equity $ 1,603,269 $ 1,522,134 $ 81,135 5.3 %
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
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) 246-4219
Page 5 Investor Relations (919) 246-4871
<CAPTION>
As of / For the Quarter Ended
(Dollars in thousands, except per share data)
6/30/96 3/31/96 12/31/95 9/30/95 6/30/95
INCOME STATEMENT
Interest income - taxable equivalent
<S> <C> <C> <C> <C> <C>
Interest & fees on loans & leases $ 315,199 $ 311,016 $ 318,325 $ 316,711 $ 311,721
Interest & dividends on securities 81,971 80,590 84,711 85,657 85,601
Interest on short-term investments 155 244 762 401 733
Total interest income - taxable
eqivalent 397,325 391,850 403,798 402,769 398,055
Interest expense
Interest on deposits 136,870 140,488 142,056 142,779 142,180
Interest on short-term borrowed
funds 25,409 27,577 42,805 46,821 48,194
Interest on long-term debt 25,762 22,074 20,831 20,384 14,761
Total interest expense 188,041 190,139 205,692 209,984 205,135
Net interest income - taxable
equivalent 209,284 201,711 198,106 192,785 192,920
Less: Taxable equivalent adjustment 8,446 8,068 8,611 8,514 7,958
Net interest income 200,838 193,643 189,495 184,271 184,962
Provision for loan & lease losses 12,000 10,500 10,400 7,000 7,000
Net interest income after provision for
loan & lease losses 188,838 183,143 179,095 177,271 177,962
Noninterest income
Service charges on deposits 26,804 25,214 23,459 22,381 22,511
Mortgage banking activities 8,542 9,300 7,827 9,019 4,367
Trust revenue 6,166 4,674 5,151 4,483 4,715
General insurance commissions 4,577 6,189 3,815 3,479 4,163
Other nondeposit fees & commissions 18,779 16,910 15,179 15,271 14,632
Securities (losses) gains, net (154) (8) 131 1,114 --
Other income 7,089 5,388 5,264 5,818 16,989
Total noninterest income 71,803 67,667 60,826 61,565 67,377
Noninterest expense
Personnel expense 74,542 73,666 69,453 73,171 75,343
Occupancy & equipment expense 24,870 24,963 24,436 25,438 27,729
Federal deposit insurance expense 3,172 3,355 4,114 2,901 7,975
Foreclosed property expense 348 744 910 524 1,034
Amortization of intangibles
& servicing rights 2,792 3,230 2,817 2,982 2,522
Other noninterest expense 44,740 40,988 36,971 39,727 45,300
Total noninterest expense 150,464 146,946 138,701 144,743 159,903
Income before income taxes 110,177 103,864 101,220 94,093 85,436
Provision for income taxes 36,260 34,254 31,130 31,613 27,528
Net income $ 73,917 $ 69,610 $ 70,090 $ 62,480 $ 57,908
PER SHARE DATA
Primary earnings $ .70 $ .67 $ .66 $ .59 $ .55
Fully diluted earnings .70 .65 .64 .57 .53
Dividends paid on common shares .23 .23 .23 .23 .20
Book value per common share 15.25 15.13 15.52 14.87 14.60
NOTES: Fully diluted earnings per share, excluding nonrecurring items, were $.55 in second quarter 1995 and $.61 in third
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) 246-4219
Page 6 Investor Relations (919) 246-4871
<CAPTION>
As of / For the Quarter Ended
(Dollars in thousands) 6/30/96 3/31/96 12/31/95 9/30/95 6/30/95
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C> <C>
Securities, at carrying value $ 5,261,852 $ 4,835,082 $ 5,355,313 $ 5,379,645 $ 5,554,214
Loans & leases 13,981,478 14,059,126 13,812,485 14,045,637 13,767,610
Allowance for loan & lease losses 177,195 175,104 172,158 174,069 176,175
Other earning assets 22,209 12,608 120,149 9,310 42,923
Total earning assets 19,320,168 18,908,400 19,236,767 19,420,965 19,350,181
Total assets 20,556,137 20,174,126 20,492,929 20,676,073 20,663,614
Noninterest-bearing deposits 1,946,849 1,995,143 1,885,725 1,845,262 1,799,574
Interest-bearing deposits 13,043,835 13,168,170 12,798,331 12,589,778 12,536,982
Total deposits 14,990,684 15,163,313 14,684,056 14,435,040 14,336,556
Short-term borrowed funds 1,785,553 1,565,525 2,491,285 3,012,707 3,147,213
Long-term debt 1,955,559 1,603,346 1,383,935 1,305,282 1,312,464
Total interest-bearing liabilities 16,784,947 16,337,041 16,673,551 16,907,767 16,996,659
Common equity 1,577,251 1,563,081 1,604,000 1,536,458 1,499,184
Preferred equity -- -- 70,063 70,689 71,785
Total shareholders' equity 1,577,251 1,563,081 1,674,063 1,607,147 1,570,969
Goodwill 38,681 39,948 41,252 42,574 43,989
Core deposit & other intangibles 7,700 7,809 8,278 8,750 9,258
Total intangibles 46,381 47,757 49,530 51,324 53,247
Mortgage servicing rights 29,786 21,786 18,265 14,245 7,850
Negative goodwill 42,291 43,851 45,410 46,969 48,529
Average balances
Securities, at amortized cost $ 4,975,231 $ 4,957,943 $ 5,321,514 $ 5,452,924 $ 5,466,584
Loans & leases 14,114,524 13,878,078 13,915,553 13,889,121 13,543,229
Other earning assets 10,780 17,560 52,218 31,033 47,557
Total earning assets 19,100,535 18,853,581 19,289,285 19,373,078 19,057,370
Total assets 20,241,757 20,006,097 20,439,534 20,609,158 20,250,286
Noninterest-bearing deposits 1,848,295 1,798,323 1,889,603 1,705,197 1,700,458
Interest-bearing deposits 12,741,060 12,706,314 12,332,095 12,506,069 12,605,342
Total deposits 14,589,355 14,504,637 14,221,698 14,211,266 14,305,800
Short-term borrowed funds 2,012,842 2,108,860 2,930,923 3,201,200 3,219,920
Long-term debt 1,779,639 1,511,577 1,376,756 1,309,932 910,946
Total interest-bearing liabilities 16,533,541 16,326,751 16,639,774 17,017,201 16,736,208
Common equity 1,591,427 1,554,144 1,574,242 1,518,167 1,466,777
Preferred equity -- 60,967 70,176 71,463 73,652
Total shareholders' equity 1,591,427 1,615,111 1,644,418 1,589,630 1,540,429
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 1,564,484 $ 1,516,412 $ 1,593,366 $ 1,549,420 $ 1,495,054
Total 1,979,165 1,673,170 1,746,645 1,715,171 1,664,728
Risk-based capital ratios:
Tier 1 11.7 % 12.1 % 13.0 % 12.0 % 11.3 %
Total 14.9 13.4 14.3 13.3 12.6
Leverage capital ratio 7.8 7.6 7.8 7.5 7.4
PERFORMANCE RATIOS
Return on average assets 1.47 % 1.40 % 1.36 % 1.20 % 1.15 %
Return on average common equity 18.68 17.86 17.35 16.00 15.48
Return on average total equity 18.68 17.33 16.91 15.59 15.08
Net yield on earning assets
(taxable equivalent) 4.39 4.28 4.07 3.95 4.06
Efficiency (taxable equivalent) * 53.4 54.3 53.2 54.5 57.9
Equity as a percentage of total assets
end of period 7.7 7.7 8.2 7.8 7.6
Average earning assets as a percentage
of average total assets 94.4 94.2 94.4 94.0 94.1
Average loans & leases as a percentage
of average deposits 96.7 95.7 97.8 97.7 94.7
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
* Excludes 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) 246-4219
Page 7 Investor Relations (919) 246-4871
(Dollars in thousands, except per share data)
<CAPTION>
As of / For the Quarter Ended
6/30/96 3/31/96 12/31/95 9/30/95 6/30/95
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
<S> <C> <C> <C> <C> <C>
Beginning balance $ 175,104 $ 172,158 $ 174,069 $ 176,175 $ 174,189
Provision for loan & lease losses 12,000 10,500 10,400 7,000 7,000
Charge-offs (13,129) (10,599) (15,128) (11,875) (8,378)
Recoveries 3,220 3,045 2,817 2,769 3,364
Ending balance $ 177,195 $ 175,104 $ 172,158 $ 174,069 $ 176,175
Nonperforming Assets
Nonaccrual loans & leases $ 62,670 $ 64,796 $ 61,489 $ 62,763 $ 48,927
Foreclosed real estate 4,926 4,938 6,868 6,981 8,759
Other foreclosed property 3,115 2,662 2,817 2,717 1,518
Nonperforming assets $ 70,711 $ 72,396 $ 71,174 $ 72,461 $ 59,204
Loans 90 days or more past due
& still accruing $ 18,025 $ 28,249 $ 29,094 $ 26,909 $ 30,335
Asset Quality Ratios
Nonaccrual loans & leases as a
percentage of total loans & lease .45 % .46 % .45 % .45 % .36 %
Nonperforming assets as a percentage of:
Total assets .34 .36 .35 .35 .29
Loans & leases plus
foreclosed property .51 .51 .51 .52 .43
Net charge-offs as a percentage of
average loans & leases .28 .22 .35 .26 .15
Allowance for loan & lease losses as
a percentage of loans & leases 1.27 1.25 1.25 1.24 1.28
Ratio of allowance for loan & lease losses to:
Net charge-offs 4.45 x 5.76 x 3.52 x 4.82 x 8.76 x
Nonaccrual loans & leases 2.83 2.70 2.80 2.77 3.60
MEMO ITEMS
Unrealized (depreciation) appreciation on
securities available for sale,
net of tax $ (33,614) $ (1,088) $ 31,167 $ 8,321 $ 9,055
Common stock prices (daily close):
High 31.75 29.75 27.00 27.13 24.13
Low 28.88 25.88 25.63 23.63 19.88
End of Period 31.75 27.75 26.25 26.25 24.00
Weighted average shares - Primary 105,150,050 102,540,444 104,756,961 104,367,957 103,523,801
Fully Diluted 105,436,287 106,315,683 109,101,185 109,202,178 108,774,906
End of period shares outstanding 103,430,150 103,343,520 103,357,440 103,323,683 102,709,306
End of period offices 432 437 441 447 452
As of / For the Six Months Ended Increase / (Decrease)
(Dollars in thousands) 6/30/96 6/30/95 $ %
Allowance For Loan & Lease Losses
Beginning balance $ 172,158 $ 171,734 $ 424 0.2 %
Provision for loan & lease losses 22,500 14,000 8,500 60.7
Charge-offs (23,728) (15,472) 8,256 53.4
Recoveries 6,265 5,913 352 6.0
Ending balance $ 177,195 $ 176,175 $ 1,020 0.6 %
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .25 % .14 %
Ratio of allowance for loan & lease losses to
net charge-offs 5.05 x 9.14 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."
</TABLE>
<PAGE>
<TABLE>
QUARTERLY PERFORMANCE SUMMARY B. Gloyden Stewart, Jr.
Southern National Corporation (NYSE:SNB) Senior Vice President (919) 246-4219
Page 8 Investor Relations (919) 246-4871
<CAPTION>
For the Quarter Ended
6/30/96 3/31/96 12/31/95 9/30/95 6/30/95
INTEREST YIELDS/RATES (Taxable equivalent)
Interest income:
<S> <C> <C> <C> <C> <C>
Securities* 6.59 % 6.50 % 6.32 % 6.23 % 6.28 %
Loans & leases 8.97 9.00 9.08 9.05 9.23
Other earning assets 5.75 5.59 5.79 5.13 6.18
Total earning assets* 8.35 8.34 8.31 8.25 8.38
Interest expense:
Interest-bearing deposits 4.32 4.45 4.57 4.53 4.52
Short-term borrowed funds 5.08 5.26 5.79 5.80 6.00
Long-term debt 5.82 5.87 6.00 6.17 6.50
Total interest-bearing liabilities 4.57 4.68 4.90 4.90 4.92
Net yield on earning assets 4.39 % 4.28 % 4.07 % 3.95 % 4.06 %
NOTES: *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."
As of
(Dollars in thousands) 6/30/96
DERIVATIVES: INTEREST RATE SWAPS, CAPS & FLOORS
Notional Receive Pay Unrealized
Type Amount Rate Rate Gains (Losses)
<S> <C> <C> <C> <C>
Receive fixed swaps $ 310,000 6.92 % 5.57 % $ 1,654
Pay fixed swaps 308,564 5.47 5.46 92
Basis swaps 250,000 5.53 5.51 (2,311)
Floors 105,000 -- -- 289
Total $ 973,564 6.00 % 5.51 % $ (276)
One Year One to After
Contractual Maturity Schedule Total or Less Five Years Five Years
<S> <C> <C> <C> <C>
Receive fixed swaps $ 310,000 $ 10,000 $ 50,000 $ 250,000
Pay fixed swaps 308,564 14,965 289,118 4,481
Basis swaps 250,000 -- 250,000 --
Floors 105,000 -- 105,000 --
Total $ 973,564 $ 24,965 $ 694,118 $ 254,481
</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
Executive Vice President and Controller
(Principal Accounting Officer)
Date: July 12, 1996
