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)
April 11, 1997
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.
<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 first quarter of
1997, including sections distributed to the media and a supplement distributed
to analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued April 11, 1997
<PAGE>
April 11, 1997
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 first quarter increase of 15.6%
WINSTON-SALEM, N.C. -- Southern National Corporation (NYSE:SNB) reported
first quarter 1997 earnings today of $83.1 million compared to prior year
earnings of $71.9 million, an increase of 15.6%. On a fully diluted per
share basis, Southern National earned $.74 in the first quarter, a 15.6%
increase over 1996 earnings of $.64 per share. Southern National's earnings
produced a return on average assets of 1.58% and a return on average equity
of 19.16%, compared to prior year ratios of 1.43% and 17.48%, respectively.
"We are very pleased with our first quarter earnings and excited about
the prospects for the rest of 1997," said Chairman and Chief Executive
Officer John A. Allison. "Our first quarter fully diluted earnings per
share of $.74 marks the eighth consecutive quarter of growth in recurring
earnings per share following the merger of equals, while our returns on
assets and equity are in the top quartile of the banking industry. The
earnings growth is primarily the result of the successful implementation of
the BB&T sales management strategy and substantial improvements in
productivity."
Southern National's noninterest income increased to $85.5 million for
the quarter, up 24.0% from $69.0 million earned last year. The increase is
primarily the result of the successful marketing of insurance products and
services and investment brokerage services, as well as growth in trust
revenues, mortgage banking income and other service charges. The net
interest margin increased to 4.56% for the quarter compared to 4.38% for
the first quarter of 1996. The efficiency ratio, a key measure of
productivity, improved to 51.3% compared to 53.8% in the prior year.
MORE
<PAGE>
Southern National has continued to pursue a strategy of economically
feasible acquisitions during the first quarter. On January 23, 1997, an
agreement was reached to purchase Refloat, Inc. of Mount Airy, N.C., and
its principal subsidiary, Sheffield Financial Corp., a finance company that
specializes in loans to small commercial lawn care businesses across the
country. On February 4, 1997, Southern National announced plans to acquire
Phillips Factors Corporation, which purchases and manages accounts
receivable primarily in the furniture, textiles, home furnishings-related
and temporary staffing industries. Phillips Factors is located in High
Point, N.C. Additionally, on March 1, 1997, Southern National completed the
acquisition of Fidelity Financial Bankshares Corporation of Richmond, Va.
"Through our first quarter acquisitions, we made important progress in
expanding our base of business," said Mr. Allison. "Sheffield presents us
with an opportunity to enter the national credit business, while Phillips
provides an entry into the accounts receivable factoring market. With
BB&T's existing distribution systems, we believe we can generate referrals
and significantly grow both businesses. Our acquisition of Fidelity gives
us a substantial presence in the dynamic Richmond market."
Southern National, which announced an agreement to purchase United
Carolina Bancshares last November, expects to complete the merger July 1
pending approval from shareholders and regulators. Shareholders of both
companies will vote on the merger at their annual meetings on April 22.
"The employees of Southern National and UCB are exhibiting a high level
of energy and teamwork to ensure the success of our merger," added Mr.
Allison. "Among our primary goals for 1997 is the successful execution of
the merger, which will provide BB&T with the largest share of the Carolinas
market."
Southern National, with $22.1 billion in assets at March 31, 1997, is
the parent company of Branch Banking and Trust Company (BB&T) and presently
has 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 423 banking offices in 221
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 $37.38 on
April 10.
#
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
For the Three Months Ended Increase / (Decrease)
<CAPTION>
(Dollars in thousands, except per share data) 3/31/97 3/31/96 $ %
INCOME STATEMENT
Interest income - taxable equivalent
<S> <C> <C> <C> <C>
Interest & fees on loans & leases $ 336,770 $ 318,967 $ 17,803 5.6 %
Interest & dividends on securities 88,792 80,590 8,202 10.2
Interest on short-term investments 271 244 27 11.1
Total interest income - taxable equivalent 425,833 399,801 26,032 6.5
Interest expense
Interest on deposits 140,950 140,488 462 .3
Interest on short-term borrowed funds 26,971 29,536 (2,565) (8.7)
Interest on long-term debt 30,099 22,074 8,025 36.4
Total interest expense 198,020 192,098 5,922 3.1
Net interest income - taxable equivalent 227,813 207,703 20,110 9.7
Less: Taxable equivalent adjustment 10,014 8,068 1,946 24.1
Net interest income 217,799 199,635 18,164 9.1
Provision for loan & lease losses 17,000 11,400 5,600 49.1
Net interest income after provision for loan & lease 200,799 188,235 12,564 6.7
Noninterest income
Service charges on deposits 30,600 25,214 5,386 21.4
Mortgage banking activities 10,486 9,300 1,186 12.8
Trust income 5,344 4,674 670 14.3
Agency insurance commissions 9,900 6,189 3,711 60.0
Other insurance commissions 3,059 2,608 451 17.3
Other nondeposit fees & commissions 18,720 15,623 3,097 19.8
Securities gains (losses), net 811 (8) 819 NM
Other income 6,593 5,389 1,204 22.3
Total noninterest income 85,513 68,989 16,524 24.0
Noninterest expense
Personnel expense 81,058 74,911 6,147 8.2
Occupancy & equipment expense 26,776 25,124 1,652 6.6
Federal deposit insurance expense 1,135 3,355 (2,220) (66.2)
Foreclosed property expense 573 744 (171) (23.0)
Amortization of intangibles & servicing rights 3,870 3,230 640 19.8
Other noninterest expense 47,630 42,280 5,350 12.7
Total noninterest expense 161,042 149,644 11,398 7.6
Income before income taxes 125,270 107,580 17,690 16.4
Provision for income taxes 42,202 35,729 6,473 18.1
Net income $ 83,068 $ 71,851 11,217 15.6 %
PER SHARE DATA
Primary earnings $ .74 $ .66 $ .08 12.1 %
Fully diluted earnings .74 .64 .10 15.6
Weighted average shares - Primary 111,554,075 108,334,659
Fully diluted 111,554,075 112,109,898
Dividends paid on common shares $ .27 $ .23 $ .04 17.4 %
PERFORMANCE RATIOS
Return on average assets 1.58 % 1.43 %
Return on average common equity 19.16 17.99
Return on average total equity 19.16 17.48
Net yield on earning assets (taxable equivalent) 4.56 4.38
Efficiency (taxable equivalent) * 51.3 53.8
NOTES: Applicable ratios are annualized.
* Excludes securities gains (losses) & foreclosed property expense.
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 4 Investor Relations (919) 246-4871
As of / For the Three Months Ended Increase / (Decrease)
<CAPTION>
(Dollars in thousands) 3/31/97 3/31/96 $ %
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C>
Securities, at carrying value* $ 5,345,023 $ 4,835,082 $ 509,941 10.5 %
Loans & leases* 15,349,240 14,209,510 1,139,730 8.0
Allowance for loan & lease losses 193,987 178,885 15,102 8.4
Other earning assets 29,349 12,608 16,741 132.8
Total earning assets 20,729,693 19,058,784 1,670,909 8.8
Total assets 22,052,195 20,328,588 1,723,607 8.5
Noninterest-bearing deposits 2,009,401 1,995,143 14,258 .7
Interest-bearing deposits 13,546,695 13,168,170 378,525 2.9
Total deposits 15,556,096 15,163,313 392,783 2.6
Short-term borrowed funds 2,183,091 1,676,998 506,093 30.2
Long-term debt 2,273,288 1,603,346 669,942 41.8
Total interest-bearing liabilities 18,003,074 16,448,514 1,554,560 9.5
Total shareholders' equity $ 1,753,437 $ 1,602,601 $ 150,836 9.4 %
Average balances
Securities, at amortized cost* $ 5,164,308 $ 4,957,943 $ 206,365 4.2 %
Loans & leases* 14,903,144 14,021,351 881,793 6.3
Other earning assets 19,900 17,560 2,340 13.3
Total earning assets 20,087,352 18,996,854 1,090,498 5.7
Total assets 21,356,193 20,154,199 1,201,994 6.0
Noninterest-bearing deposits 1,839,994 1,798,323 41,671 2.3
Interest-bearing deposits 13,189,783 12,706,314 483,469 3.8
Total deposits 15,029,777 14,504,637 525,140 3.6
Short-term borrowed funds 2,137,125 2,215,462 (78,337) (3.5)
Long-term debt 2,160,263 1,511,577 648,686 42.9
Total interest-bearing liabili 17,487,171 16,433,353 1,053,818 6.4
Common equity 1,758,266 1,592,447 165,819 10.4
Preferred equity -- 60,967 (60,967) NM
Total shareholders' equity $ 1,758,266 $ 1,653,414 $ 104,852 6.3 %
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
* Balances reflect the securitization of $1.2 billion of loans during 1995 & 1996. The increase in end of period loans,
excluding the impact of these securitizations, was 13.4%. Average loan growth, excluding the impact of the
securitizations, was 11.8%.
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
As of / For the Quarter Ended
(Dollars in thousands, except per share data)
<CAPTION>
3/31/97 12/31/96 9/30/96 6/30/96 3/31/96
INCOME STATEMENT
Interest income - taxable equivalent
<S> <C> <C> <C> <C> <C>
Interest & fees on loans &
leases $ 336,770 $ 327,724 $ 323,363 $ 323,747 $ 318,967
Interest & dividends on
securities 88,792 93,399 90,269 81,971 80,590
Interest on short-term
investments 271 154 218 155 244
Total interest income -
taxable equivalent 425,833 421,277 413,850 405,873 399,801
Interest expense
Interest on deposits 140,950 142,900 144,489 136,870 140,488
Interest on short-term borrowed
funds 26,971 24,334 24,594 27,472 29,536
Interest on long-term debt 30,099 30,759 28,842 25,762 22,074
Total interest expense 198,020 197,993 197,925 190,104 192,098
Net interest income - taxable
equivalent 227,813 223,284 215,925 215,769 207,703
Less: Taxable equivalent
adjustment 10,014 9,326 8,348 8,446 8,068
Net interest income 217,799 213,958 207,577 207,323 199,635
Provision for loan & lease losses 17,000 15,500 13,500 13,261 11,400
Net interest income after provision
for loan & lease losses 200,799 198,458 194,077 194,062 188,235
Noninterest income
Service charges on deposits 30,600 28,223 27,340 26,804 25,214
Mortgage banking activities 10,486 9,518 6,992 8,542 9,300
Trust income 5,344 6,008 5,963 6,166 4,674
Agency insurance commissions 9,900 6,038 5,549 4,577 6,189
Other insurance commissions 3,059 3,072 2,943 2,566 2,608
Other nondeposit fees &
commissions 18,720 17,941 17,780 17,491 15,623
Securities gains (losses), net 811 2,663 705 (154) (8)
Other income 6,593 6,931 7,650 7,092 5,389
Total noninterest income 85,513 80,394 74,922 73,084 68,989
Noninterest expense
Personnel expense 81,058 77,086 74,599 75,787 74,911
Occupancy & equipment expense 26,776 26,629 26,750 25,091 25,124
Federal deposit insurance
expenses 1,135 -- 36,293 3,172 3,355
Foreclosed property expense 573 646 214 348 744
Amortization of intangibles
& servicing rights 3,870 4,275 2,482 2,792 3,230
Other noninterest expense 47,630 54,568 47,396 46,281 42,280
Total noninterest expense 161,042 163,204 187,734 153,471 149,644
Income before income taxes 125,270 115,648 81,265 113,675 107,580
Provision for income taxes 42,202 35,968 25,299 37,508 35,729
Net income $ 83,068 $ 79,680 $ 55,966 $ 76,167 $ 71,851
PER SHARE DATA
Primary earnings $ .74 $ .72 $ .50 $ .69 $ .66
Fully diluted earnings .74 .72 .50 .68 .64
Dividends paid on common shares .27 .27 .27 .23 .23
Book value per common share 16.07 15.82 15.18 14.82 14.68
NOTE: Net income, excluding nonrecurring items, was $77.2 million, or $.70 per fully diluted share, for the third quarter of 1996.
</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
As of / For the Quarter Ended
<CAPTION>
(Dollars in thousands) 3/31/97 12/31/96 9/30/96 6/30/96 3/31/96
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C> <C>
Securities, at carrying value $ 5,345,023 $ 5,261,507 $ 5,616,726 $ 5,261,852 $ 4,835,082
Loans & leases 15,349,240 14,584,064 14,110,996 14,143,518 14,209,510
Allowance for loan & lease
losses 193,987 183,932 184,203 181,269 178,885
Other earning assets 29,349 20,986 7,862 22,209 12,608
Total earning assets 20,729,693 19,846,501 19,754,062 19,482,208 19,058,784
Total assets 22,052,195 21,246,562 21,096,557 20,719,452 20,328,588
Noninterest-bearing deposits 2,009,401 1,990,415 2,039,356 1,946,849 1,995,143
Interest-bearing deposits 13,546,695 12,963,499 12,979,056 13,043,835 13,168,170
Total deposits 15,556,096 14,953,914 15,018,412 14,990,684 15,163,313
Short-term borrowed funds 2,183,091 2,263,303 2,095,282 1,906,065 1,676,998
Long-term debt 2,273,288 2,051,767 2,050,211 1,955,559 1,603,346
Total interest-bearing
liabilities 18,003,074 17,278,569 17,124,549 16,905,459 16,448,514
Total shareholders' equity 1,753,437 1,729,169 1,656,806 1,619,030 1,602,601
Goodwill 91,717 54,409 38,596 38,681 39,948
Core deposit & other intangibles 7,782 9,003 7,312 7,700 7,809
Total intangibles 99,499 63,412 45,908 46,381 47,757
Mortgage servicing rights 50,855 37,074 35,549 29,786 21,786
Negative goodwill 37,613 39,172 40,732 42,291 43,851
Average balances
Securities, at amortized cost $ 5,164,308 $ 5,408,963 $ 5,353,806 $ 4,975,231 $ 4,957,943
Loans & leases 14,903,144 14,326,427 14,145,593 14,269,580 14,021,351
Other earning assets 19,900 11,213 14,983 10,780 17,560
Total earning assets 20,087,352 19,746,603 19,514,382 19,255,591 18,996,854
Total assets 21,356,193 21,031,881 20,703,073 20,400,678 20,154,199
Noninterest-bearing deposits 1,839,994 1,927,944 1,853,529 1,848,295 1,798,323
Interest-bearing deposits 13,189,783 13,090,127 13,139,545 12,741,060 12,706,314
Total deposits 15,029,777 15,018,071 14,993,074 14,589,355 14,504,637
Short-term borrowed funds 2,137,125 1,881,838 1,823,310 2,129,143 2,215,462
Long-term debt 2,160,263 2,161,321 1,977,109 1,779,639 1,511,577
Total interest-bearing
liabilities 17,487,171 17,133,286 16,939,964 16,649,842 16,433,353
Common equity 1,758,266 1,709,689 1,642,720 1,631,951 1,592,447
Preferred equity -- -- -- -- 60,967
Total shareholders' equity 1,758,266 1,709,689 1,642,720 1,631,951 1,653,414
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 1,652,955 $ 1,666,481 $ 1,622,634 $ 1,606,263 $ 1,555,932
Total 2,093,666 2,093,143 2,050,123 2,022,831 1,714,575
Risk-based capital ratios:
Tier 1 10.7 % 11.7 % 11.3 % 11.9 % 12.3 %
Total 13.6 14.7 14.3 15.0 13.5
Leverage capital ratio 7.8 8.0 7.9 7.9 7.7
PERFORMANCE RATIOS
Return on average assets 1.58 % 1.51 % 1.08 % 1.50 % 1.43 %
Return on average common equity 19.16 18.54 13.55 18.77 17.99
Return on average total equity 19.16 18.54 13.55 18.77 17.48
Net yield on earning assets
(taxable equivalent) 4.56 4.52 4.42 4.49 4.38
Efficiency (taxable equivalent)* 51.3 54.0 53.3 53.0 53.8
Noninterest income as a percentage
of total income (taxable equivalent)* 27.1 25.8 25.6 25.3 24.9
Equity as a percentage of total assets
end of period 8.0 8.1 7.9 7.8 7.9
Average earning assets as a percentage
of average total assets 94.1 93.9 94.3 94.4 94.3
Average loans & leases as a percentage
of average deposits 99.2 95.4 94.3 97.8 96.7
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 & nonrecurring items.
</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
As of / For the Quarter Ended
(Dollars in thousands, except per share data)
<CAPTION>
3/31/97 12/31/96 9/30/96 6/30/96 3/31/96
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
<S> <C> <C> <C> <C> <C>
Beginning balance $ 183,932 $ 184,203 $ 181,269 $ 178,885 $ 175,588
Allowance for acquired loans 3,811 -- -- -- --
Provision for loan & lease
losses 17,000 15,500 13,500 13,261 11,400
Charge-offs (14,435) (19,159) (15,014) (14,150) (11,161)
Recoveries 3,679 3,388 4,448 3,273 3,058
Ending balance $ 193,987 $ 183,932 $ 184,203 $ 181,269 $ 178,885
Nonperforming Assets
Nonaccrual loans & leases $ 57,681 $ 59,717 $ 58,238 $ 63,703 $ 65,799
Foreclosed real estate 9,938 9,023 7,166 4,926 4,938
Other foreclosed property 13,418 11,429 8,609 7,426 6,336
Nonperforming assets $ 81,037 $ 80,169 $ 74,013 $ 76,055 $ 77,073
Loans 90 days or more past due
& still accruing $ 27,999 $ 32,052 $ 28,222 $ 18,025 $ 28,249
Asset Quality Ratios
Nonaccrual loans & leases as a
percentage of total loans & l .38 % .41 % .41 % .45 % .46 %
Nonperforming assets as a percentage of:
Total assets .37 .38 .35 .37 .38
Loans & leases plus
foreclosed property .53 .55 .52 .54 .54
Net charge-offs as a percentage of
average loans & leases .29 .44 .30 .31 .23
Allowance for loan & lease losses as
a percentage of loans & lease 1.26 1.26 1.31 1.28 1.26
Ratio of allowance for loan & lease
losses to:
Net charge-offs 4.45 x 2.93 x 4.38 x 4.14 x 5.49 x
Nonaccrual loans & leases 3.36 3.08 3.16 2.85 2.72
MEMO ITEMS
Unrealized (depreciation)
appreciation on securities
available for sale $ (4,102) $ 11,809 $ (11,736) $ (33,614) $ (1,088)
Common stock prices (daily
close) High 40.75 36.75 33.88 31.75 29.75
Low 35.25 33.38 28.63 28.88 25.88
End of period 37.25 36.25 33.25 31.75 27.75
Weighted average shares -
Primary 111,554,075 111,322,206 110,841,221 110,944,393 108,334,659
Fully diluted 111,554,075 111,393,144 111,013,052 111,230,630 112,109,898
End of period shares
outstanding 109,138,628 109,297,489 109,112,010 109,224,753 109,137,735
End of period banking offices 423 419 425 432 437
NOTES: All items referring to loans & leases include loans held for sale & are net of unearned income.
Applicable ratios are annualized.
</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
For the Quarter Ended
<CAPTION>
3/31/97 12/31/96 9/30/96 6/30/96 3/31/96
INTEREST YIELDS/RATES (Taxable equivalent)
Interest income:
<S> <C> <C> <C> <C> <C>
Securities 6.88 % 6.91 % 6.74 % 6.63 % 6.54 %
Loans & leases 9.14 9.11 9.10 9.13 9.15
Other earning assets 5.52 5.46 5.79 5.78 5.59
Total earning assets 8.55 8.50 8.45 8.48 8.46
Interest expense:
Interest-bearing deposits 4.33 4.34 4.37 4.32 4.45
Short-term borrowed funds 5.12 5.14 5.37 5.19 5.36
Long-term debt 5.63 5.66 5.80 5.82 5.87
Total interest-bearing
liabilies 4.59 4.60 4.65 4.59 4.70
Net yield on earning assets 4.56 % 4.52 % 4.42 % 4.49 % 4.38 %
NOTE: Yields calculated based on securities at amortized cost.
</TABLE>
<TABLE>
As of
(Dollars in thousands) 3/31/97
DERIVATIVES: INTEREST RATE SWAPS, CAPS & FLOORS Net
Notional Receive Pay Unrealized
<CAPTION>
Type Amount Rate Rate Gains (Losses)
<S> <C> <C> <C> <C>
Receive fixed swaps $ 487,000 6.59 % 5.48 % $ (1,449)
Pay fixed swaps 298,150 5.55 5.45 527
Basis swaps 300,000 5.55 5.73 (871)
Floors 105,000 - - 110
Total $ 1,190,150 6.02 % 5.54 % $ (1,683)
One Year One to After
Contractual Maturity Schedule Total or Less Five Years Five Years
Receive fixed swaps $ 487,000 $ 35,000 $ 202,000 $ 250,000
Pay fixed swaps 298,150 162,190 131,761 4,199
Basis swaps 300,000 50,000 250,000 -
Floors 105,000 - 105,000 -
Total $ 1,190,150 $ 247,190 $ 688,761 $ 254,199
</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: April 11, 1997
