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)
January 14, 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. 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 fourth quarter
of 1996, including sections distributed to the media and a supplement
distributed to analysts.
EXHIBIT INDEX
Exhibit 99.1 Quarterly Performance Summary issued January 14, 1997
<PAGE>
January 14, 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 record earnings for 1996
WINSTON-SALEM, N.C. -- Southern National Corporation (NYSE:SNB)
reported today that it had record 1996 earnings of $283.7 million compared
to 1995 earnings of $186.3 million, an increase of 52.2%. On a fully
diluted per share basis, Southern National earned $2.54, a 56.8% increase
over 1995 earnings of $1.62 per share. For the fourth quarter, Southern
National earned $79.7 million, or $.72 per fully diluted share, compared to
$72.3 million, or $.63 earned in the fourth quarter of 1995. These earnings
include the impact of a special, one-time assessment that affected all
financial institutions with deposits insured by the Savings Association
Insurance Fund. Southern National's assessment, which totaled approximately
$33 million on a pre-tax basis, was recorded in the third quarter.
Excluding the impact of this deposit insurance assessment, Southern
National earned $304.9 million for the year, an increase of 16.1% over
$262.7 million of recurring earnings for 1995. On a fully diluted per share
basis, Southern National earned $2.73, compared to $2.29 recorded in the
prior year, an increase of 19.2%. Southern National's earnings for the year
resulted in a return on average assets of 1.48% and a return on average
common equity of 18.51%.
"We are extremely pleased with our 1996 results," said Chairman and
Chief Executive Officer John A. Allison. "We have been fortunate to
accomplish all our strategic objectives during the year. First among these
objectives, we wanted to achieve the revenue growth and efficiencies
available from the 1995 merger of equals between Southern National and
BB&T. On a recurring basis, noninterest income increased 24.5% during 1996
and the efficiency ratio improved to 53.5%, which places Southern National
in the top quartile of bank holding companies. Second, we hoped to create
greater BB&T brand identity. This was accomplished by a major advertising
program which has proved to be successful, as awareness of the BB&T name
has increased approximately 50% during the year.
MORE
<PAGE>
Third, we wanted to restructure our branch distribution system. Through the
implementation of an aggressive sales process, the number of households
using five or more services increased 16% in 1996, and we have improved
efficiency by reducing the number of branch locations from 531 at the time
of the merger to 419 at year-end 1996. Fourth, we have worked to develop
alternative distribution systems for our products and services. Our call
center will open this fall. Our PC-based home banking product (BB&T OnLine)
was introduced system-wide in the fourth quarter. We have contracts for 225
off-site ATMs to provide more customer convenience. Our loan-by-phone
system is operating and we have successfully developed an integrated small
business lending process.
"An additional strategic objective was to acquire high-quality banks,
thrifts and financial services companies in our market area. On September
1, 1996, we consummated the acquisition of Regional Acceptance, a rapidly
growing auto finance operation. Four high-performance insurance agencies
with combined premiums of $65 million were also acquired. We agreed to
merge with Fidelity Financial Bankshares Corporation, a high-quality $321
million thrift in Richmond, Virginia. This acquisition should be completed
in early March.
"On November 4, 1996, Southern National and United Carolina Bancshares
Corporation jointly announced the signing of an agreement to merge. This
in-market merger will create the largest financial institution in the
Carolinas and the 30th largest bank holding company in the nation. The
combined institution will have more than $25 billion in total assets and
will give Southern National the largest share of deposits in North
Carolina, at approximately 20%, and the third largest share of deposits in
South Carolina, at 11%. The merger is expected to be completed in the
second quarter of 1997 and is subject to approval by the shareholders of
both companies as well as by federal and state bank regulatory authorities.
"The most exciting outcome of our merger of equals has probably been
the reaction of investors. In the two year period since our shareholders
voted to support the merger, our stock price has more than doubled,
increasing from $17.75 to $36.25, or 104%."
Southern National, with $21.2 billion in consolidated assets at
December 31, 1996, 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 419 banking offices in 218 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 $35.38 on
January 13.
#
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)
(Dollars in thousands, except per share data) 12/31/96 12/31/95 $ %
<CAPTION>
INCOME STATEMENT
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 421,277 $ 411,433 $ 9,844 2.4 %
Interest expense 197,993 207,333 (9,340) (4.5)
Net interest income - taxable equivalent 223,284 204,100 19,184 9.4
Less: Taxable equivalent adjustment 9,326 8,611 715 8.3
Net interest income 213,958 195,489 18,469 9.4
Provision for loan & lease losses 15,500 11,317 4,183 37.0
Net interest income after provision for
loan & lease losses 198,458 184,172 14,286 7.8
Noninterest income 80,394 62,078 18,316 29.5
Noninterest expense 163,204 141,319 21,885 15.5
Income before income taxes 115,648 104,931 10,717 10.2
Provision for income taxes 35,968 32,650 3,318 10.2
Net income $ 79,680 $ 72,281 7,399 10.2 %
PER SHARE DATA
Primary earnings $ .72 $ .64 $ .08 12.5 %
Fully diluted earnings .72 .63 .09 14.3
Weighted average shares - Primary 111,322,206 110,551,176
Fully diluted 111,393,144 114,895,400
Dividends paid on common shares $ .27 $ .23 $ .04 17.4 %
PERFORMANCE RATIOS
Return on average assets 1.51 % 1.39 %
Return on average common equity 18.54 17.50
Return on average total equity 18.54 17.06
Net yield on earning assets (taxable equivalent) 4.52 4.17
Efficiency (taxable equivalent) * 54.0 51.8
For the Twelve Months Ended Increase / (Decrease)
(Dollars in thousands, except per share data) 12/31/96 12/31/95 $ %
INCOME STATEMENT
Interest income - taxable equivalent $ 1,640,801 $ 1,609,147 $ 31,654 2.0 %
Interest expense 778,120 813,942 (35,822) (4.4)
Net interest income - taxable equivalent 862,681 795,205 67,476 8.5
Less: Taxable equivalent adjustment 34,188 32,535 1,653 5.1
Net interest income 828,493 762,670 65,823 8.6
Provision for loan & lease losses 53,661 34,632 19,029 54.9
Net interest income after provision for
loan & lease losses 774,832 728,038 46,794 6.4
Noninterest income 297,389 230,994 66,395 28.7
Noninterest expense 654,053 681,228 (27,175) (4.0)
Income before income taxes 418,168 277,804 140,364 50.5
Provision for income taxes 134,504 91,463 43,041 47.1
Net income $ 283,664 $ 186,341 $ 97,323 52.2 %
PER SHARE DATA
Primary earnings $ 2.56 $ 1.65 $ .91 55.2 %
Fully diluted earnings 2.54 1.62 .92 56.8
Weighted average shares - Primary 110,486,127 109,776,710
Fully diluted 111,836,200 114,801,843
Dividends paid on common shares $ 1.00 $ .86 $ .14 16.3 %
PERFORMANCE RATIOS
Return on average assets 1.38 % .91 %
Return on average common equity 17.21 11.84
Return on average total equity 17.09 11.62
Net yield on earning assets (taxable equivalent) 4.45 4.14
Efficiency (taxable equivalent) * 53.5 55.2
NOTES: 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 4 Investor Relations (919) 246-4871
For the Twelve Months Ended Increase / (Decrease)
<CAPTION>
(Dollars in thousands, except per share data) 12/31/96 12/31/95 $ %
INCOME STATEMENT EXCLUDING NONRECURRING ITEMS
<S> <C> <C> <C> <C>
Interest income - taxable equivalent $ 1,640,801 $ 1,609,147 $ 31,654 2.0 %
Interest expense 778,120 813,942 (35,822) (4.4)
Net interest income - taxable equivalent 862,681 795,205 67,476 8.5
Less: Taxable equivalent adjustment 34,188 32,535 1,653 5.1
Net interest income 828,493 762,670 65,823 8.6
Provision for loan & lease losses 53,661 34,632 19,029 54.9
Net interest income after provision for
loan & lease losses 774,832 728,038 46,794 6.4
Noninterest income 297,389 238,957 58,432 24.5
Noninterest expense 621,028 573,741 47,287 8.2
Income before income taxes 451,193 393,254 57,939 14.7
Provision for income taxes 146,246 130,582 15,664 12.0
Net income excluding nonrecurring items 304,947 262,672 42,275 16.1
Nonrecurring items, net of tax 21,283 76,331 (55,048) (72.1)
Net income $ 283,664 $ 186,341 $ 97,323 52.2 %
PER SHARE DATA EXCLUDING NONRECURRING ITEMS
Primary earnings $ 2.75 $ 2.35 $ .40 17.0 %
Fully diluted earnings 2.73 2.29 .44 19.2
Weighted average shares - Primary 110,486,127 109,776,710
Fully diluted 111,836,200 114,801,843
Dividends paid on common shares $ 1.00 $ .86 $ .14 16.3 %
PERFORMANCE RATIOS EXCLUDING NONRECURRING ITEMS
Return on average assets 1.48 % 1.29 %
Return on average common equity 18.51 16.83
Return on average total equity 18.38 16.39
Net yield on earning assets (taxable equivalent) 4.45 4.14
Efficiency (taxable equivalent) * 53.5 55.2
As of / For the Twelve Months Ended Increase / (Decrease)
(Dollars in thousands) 12/31/96 12/31/95 $ %
SELECTED BALANCE SHEET DATA
End of period balances
Securities, at carrying value** $ 5,261,507 $ 5,355,313 $ (93,806) (1.8) %
Loans & leases** 14,584,064 13,951,991 632,073 4.5
Allowance for loan & lease losses 183,932 175,588 8,344 4.8
Other earning assets 20,986 120,149 (99,163) (82.5)
Total earning assets 19,846,501 19,376,273 470,228 2.4
Total assets 21,246,562 20,636,430 610,132 3.0
Noninterest-bearing deposits 1,990,415 1,885,725 104,690 5.6
Interest-bearing deposits 12,963,499 12,798,331 165,168 1.3
Total deposits 14,953,914 14,684,056 269,858 1.8
Short-term borrowed funds 2,263,303 2,595,416 (332,113) (12.8)
Long-term debt 2,051,767 1,383,935 667,832 48.3
Total interest-bearing liabilities 17,278,569 16,777,682 500,887 3.0
Common equity 1,729,169 1,641,279 87,890 5.4
Preferred equity -- 70,063 (70,063) (100.0)
Total shareholders' equity $ 1,729,169 $ 1,711,342 $ 17,827 1.0 %
Average balances
Securities, at amortized cost** $ 5,175,119 $ 5,405,773 $ (230,654) (4.3) %
Loans & leases** 14,190,985 13,768,629 422,356 3.1
Other earning assets 13,631 44,384 (30,753) (69.3)
Total earning assets 19,379,735 19,218,786 160,949 .8
Total assets 20,574,070 20,403,870 170,200 .8
Noninterest-bearing deposits 1,857,207 1,745,827 111,380 6.4
Interest-bearing deposits 12,920,330 12,505,349 414,981 3.3
Total deposits 14,777,537 14,251,176 526,361 3.7
Short-term borrowed funds 2,011,565 3,148,179 (1,136,614) (36.1)
Long-term debt 1,858,569 1,127,575 730,994 64.8
Total interest-bearing liabilities 16,790,464 16,781,103 9,361 .1
Common equity 1,644,376 1,530,684 113,692 7.4
Preferred equity 15,159 72,345 (57,186) (79.0)
Total shareholders' equity $ 1,659,535 $ 1,603,029 $ 56,506 3.5 %
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.
** Balances reflect the securitization of $1.2 billion of loans during 1995 and 1996. The increase in end of period loans,
excluding the impact of these securitizations, was 10.1%. Average loan growth, excluding the impact of the
securitizations, was 7.9%.
</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>
12/31/96 9/30/96 6/30/96 3/31/96 12/31/95
INCOME STATEMENT
Interest income - taxable equivalent
<S> <C> <C> <C> <C> <C>
Interest & fees on loans & leases $ 327,724 $ 323,363 $ 323,747 $ 318,967 $ 325,960
Interest & dividends on securities 93,399 90,269 81,971 80,590 84,711
Interest on short-term investments 154 218 155 244 762
Total interest income - taxable
equivalent 421,277 413,850 405,873 399,801 411,433
Interest expense
Interest on deposits 142,900 144,489 136,870 140,488 142,056
Interest on short-term borrowed fund 24,334 24,594 27,472 29,536 44,446
Interest on long-term debt 30,759 28,842 25,762 22,074 20,831
Total interest expense 197,993 197,925 190,104 192,098 207,333
Net interest income - taxable
equivalent 223,284 215,925 215,769 207,703 204,100
Less: Taxable equivalent adjustment 9,326 8,348 8,446 8,068 8,611
Net interest income 213,958 207,577 207,323 199,635 195,489
Provision for loan & lease losses 15,500 13,500 13,261 11,400 11,317
Net interest income after provision for
loan & lease losses 198,458 194,077 194,062 188,235 184,172
Noninterest income
Service charges on deposits 28,223 27,340 26,804 25,214 23,459
Mortgage banking activities 9,518 6,992 8,542 9,300 7,827
Trust income 6,008 5,963 6,166 4,674 5,151
Agency insurance commissions 6,038 5,549 4,577 6,189 3,815
Other insurance commissions 3,072 2,943 2,566 2,608 2,770
Other nondeposit fees & commissions 17,941 17,780 17,491 15,623 13,658
Securities gains (losses), net 2,663 705 (154) (8) 131
Other income 6,931 7,650 7,092 5,389 5,267
Total noninterest income 80,394 74,922 73,084 68,989 62,078
Noninterest expense
Personnel expense 77,086 74,599 75,787 74,911 70,615
Occupancy & equipment expense 26,629 26,750 25,091 25,124 24,634
Federal deposit insurance expense -- 36,293 3,172 3,355 4,114
Foreclosed property expense 646 214 348 744 910
Amortization of intangibles 4,275 2,482 2,792 3,230 2,817
Other noninterest expense 54,568 47,396 46,281 42,280 38,229
Total noninterest expense 163,204 187,734 153,471 149,644 141,319
Income before income taxes 115,648 81,265 113,675 107,580 104,931
Provision for income taxes 35,968 25,299 37,508 35,729 32,650
Net income $ 79,680 $ 55,966 $ 76,167 $ 71,851 $ 72,281
PER SHARE DATA
Primary earnings $ .72 $ .50 $ .69 $ .66 $ .64
Fully diluted earnings .72 .50 .68 .64 .63
Dividends paid on common shares .27 .27 .23 .23 .23
Book value per common share 15.82 15.18 14.82 14.68 15.04
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) 12/31/96 9/30/96 6/30/96 3/31/96 12/31/95
SELECTED BALANCE SHEET DATA
End of period balances
<S> <C> <C> <C> <C> <C>
Securities, at carrying value $ 5,261,507 $ 5,616,726 $ 5,261,852 $ 4,835,082 $ 5,355,313
Loans & leases 14,584,064 14,110,996 14,143,518 14,209,510 13,951,991
Allowance for loan & lease losses 183,932 184,203 181,269 178,885 175,588
Other earning assets 20,986 7,862 22,209 12,608 120,149
Total earning assets 19,846,501 19,754,062 19,482,208 19,058,784 19,376,273
Total assets 21,246,562 21,096,557 20,719,452 20,328,588 20,636,430
Noninterest-bearing deposits 1,990,415 2,039,356 1,946,849 1,995,143 1,885,725
Interest-bearing deposits 12,963,499 12,979,056 13,043,835 13,168,170 12,798,331
Total deposits 14,953,914 15,018,412 14,990,684 15,163,313 14,684,056
Short-term borrowed funds 2,263,303 2,095,282 1,906,065 1,676,998 2,595,416
Long-term debt 2,051,767 2,050,211 1,955,559 1,603,346 1,383,935
Total interest-bearing liabilities 17,278,569 17,124,549 16,905,459 16,448,514 16,777,682
Common equity 1,729,169 1,656,806 1,619,030 1,602,601 1,641,279
Preferred equity -- -- -- -- 70,063
Total shareholders' equity 1,729,169 1,656,806 1,619,030 1,602,601 1,711,342
Goodwill 54,409 38,596 38,681 39,948 41,252
Core deposit & other intangibles 9,003 7,312 7,700 7,809 8,278
Total intangibles 63,412 45,908 46,381 47,757 49,530
Mortgage servicing rights 37,074 35,549 29,786 21,786 18,265
Negative goodwill 39,172 40,732 42,291 43,851 45,410
Average balances
Securities, at amortized cost $ 5,408,963 $ 5,353,806 $ 4,975,231 $ 4,957,943 $ 5,321,514
Loans & leases 14,326,427 14,145,593 14,269,580 14,021,351 14,051,563
Other earning assets 11,213 14,983 10,780 17,560 52,218
Total earning assets 19,746,603 19,514,382 19,255,591 18,996,854 19,425,295
Total assets 21,031,881 20,703,073 20,400,678 20,154,199 20,579,829
Noninterest-bearing deposits 1,927,944 1,853,529 1,848,295 1,798,323 1,889,603
Interest-bearing deposits 13,090,127 13,139,545 12,741,060 12,706,314 12,332,095
Total deposits 15,018,071 14,993,074 14,589,355 14,504,637 14,221,698
Short-term borrowed funds 1,881,838 1,823,310 2,129,143 2,215,462 3,029,962
Long-term debt 2,161,321 1,977,109 1,779,639 1,511,577 1,376,756
Total interest-bearing liabilities 17,133,286 16,939,964 16,649,842 16,433,353 16,738,813
Common equity 1,709,689 1,642,720 1,631,951 1,592,447 1,610,440
Preferred equity -- -- -- 60,967 70,176
Total shareholders' equity 1,709,689 1,642,720 1,631,951 1,653,414 1,680,616
RISK-BASED CAPITAL
Risk-based capital:
Tier 1 $ 1,666,481 $ 1,622,634 $ 1,606,263 $ 1,555,932 $ 1,630,645
Total 2,093,143 2,050,123 2,022,831 1,714,575 1,785,681
Risk-based capital ratios:
Tier 1 11.7 % 11.3 % 11.9 % 12.3 % 13.2 %
Total 14.7 14.3 15.0 13.5 14.4
Leverage capital ratio 8.0 7.9 7.9 7.7 7.9
PERFORMANCE RATIOS
Return on average assets 1.51 % 1.08 % 1.50 % 1.43 % 1.39 %
Return on average common equity 18.54 13.55 18.77 17.99 17.50
Return on average total equity 18.54 13.55 18.77 17.48 17.06
Net yield on earning assets (taxable
equivalent) 4.52 4.42 4.49 4.38 4.17
Efficiency (taxable equivalent) * 54.0 53.3 53.0 53.8 51.8
Equity as a percentage of total assets
end of period 8.1 7.9 7.8 7.9 8.3
Average earning assets as a percentage
of average total assets 93.9 94.3 94.4 94.3 94.4
Average loans & leases as a percentage
of average deposits 95.4 94.3 97.8 96.7 98.8
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>
12/31/96 9/30/96 6/30/96 3/31/96 12/31/95
ASSET QUALITY ANALYSIS
Allowance For Loan & Lease Losses
<S> <C> <C> <C> <C> <C>
Beginning balance $ 184,203 $ 181,269 $ 178,885 $ 175,588 $ 177,149
Provision for loan & lease losses 15,500 13,500 13,261 11,400 11,317
Charge-offs (19,159) (15,014) (14,150) (11,161) (15,713)
Recoveries 3,388 4,448 3,273 3,058 2,835
Ending balance $ 183,932 $ 184,203 $ 181,269 $ 178,885 $ 175,588
Nonperforming Assets
Nonaccrual loans & leases $ 64,430 $ 63,088 $ 68,014 $ 69,473 $ 66,198
Foreclosed real estate 9,023 7,166 4,926 4,938 6,868
Other foreclosed property 9,752 8,609 7,426 6,336 6,784
Nonperforming assets $ 83,205 $ 78,863 $ 80,366 $ 80,747 $ 79,850
Asset Quality Ratios
Nonaccrual loans & leases as a
percentage of total loans & leases .44 % .45 % .48 % .49 % .47 %
Nonperforming assets as a percentage of:
Total assets .39 .37 .39 .40 .39
Loans & leases plus
foreclosed property .57 .56 .57 .57 .57
Net charge-offs as a percentage of
average loans & leases .44 .30 .31 .23 .36
Allowance for loan & lease losses as
a percentage of loans & leases 1.26 1.31 1.28 1.26 1.26
Ratio of allowance for loan & lease losses to:
Net charge-offs 2.93 x 4.38 x 4.19 x 5.49 x 3.44 x
Nonaccrual loans & leases 2.85 2.92 2.67 2.57 2.65
MEMO ITEMS
Unrealized appreciation (depreciation) on
securities available for sale,
net of tax $ 11,809 $ (11,736) $ (33,614) $ (1,088) $ 31,167
Common stock prices (daily close):
High 36.75 33.88 31.75 29.75 27.00
Low 33.38 28.63 28.88 25.88 25.63
End of period 36.25 33.25 31.75 27.75 26.25
Weighted average shares - Primary 111,322,206 110,841,221 110,944,393 108,334,659 110,551,176
Fully diluted 111,393,144 111,013,052 111,230,630 112,109,898 114,895,400
End of period shares outstanding 109,297,489 109,112,010 109,224,753 109,137,735 109,151,655
End of period banking offices 419 425 432 437 441
As of / For the Twelve Months Ended Increase / (Decrease)
(Dollars in thousands) 12/31/96 12/31/95 $ %
Allowance For Loan & Lease Losses
Beginning balance $ 175,588 $ 174,102 $ 1,486 .9 %
Provision for loan & lease losses 53,661 34,632 19,029 54.9
Charge-offs (59,484) (44,727) 14,757 33.0
Recoveries 14,167 11,581 2,586 22.3
Ending balance $ 183,932 $ 175,588 $ 8,344 4.8 %
Asset Quality Ratios
Net charge-offs as a percentage of
average loans & leases .32 % .24 %
Ratio of allowance for loan & lease losses to
net charge-offs 4.06 x 5.30 x
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>
12/31/96 9/30/96 6/30/96 3/31/96 12/31/95
INTEREST YIELDS/RATES (Taxable equivalent)
Interest income:
<S> <C> <C> <C> <C> <C>
Securities* 6.91 % 6.74 % 6.63 % 6.54 % 6.32 %
Loans & leases 9.11 9.10 9.13 9.15 9.20
Other earning assets 5.46 5.79 5.78 5.59 5.79
Total earning assets* 8.50 8.45 8.48 8.46 8.40
Interest expense:
Interest-bearing deposits 4.34 4.37 4.32 4.45 4.57
Short-term borrowed funds 5.14 5.37 5.19 5.36 5.82
Long-term debt 5.66 5.80 5.82 5.87 6.00
Total interest-bearing liabilities 4.60 4.65 4.59 4.70 4.91
Net yield on earning assets 4.52 % 4.42 % 4.49 % 4.38 % 4.17 %
NOTE:*Yields calculated based on securities at amortized cost.
As of
(Dollars in thousands) 12/31/96
DERIVATIVES: INTEREST RATE SWAPS
<CAPTION>
Notional Receive Pay Unrealized
Type Amount Rate Rate Gains (Losses)
<S> <C> <C> <C> <C>
Receive fixed swaps $ 485,000 6.60 % 5.50 % $ 6,698
Pay fixed swaps 304,114 5.50 5.43 (25)
Basis swaps 250,000 5.53 5.51 (1,251)
Floors 105,000 -- -- 353
Total $ 1,144,114 6.02 % 5.48 % $ 5,775
One Year One to After
Contractual Maturity Schedule Total or Less Five Years Five Years
Receive fixed swaps $ 485,000 $ 35,000 $ 200,000 $ 250,000
Pay fixed swaps 304,114 15,485 284,337 4,292
Basis swaps 250,000 -- 250,000 --
Floors 105,000 -- 105,000 --
Total $ 1,144,114 $ 50,485 $ 839,337 $ 254,292
</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: January 14, 1997
