<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 19, 1999
THE COLONIAL BANCGROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-13508 63-0661573
(State of Incorporation) (Commission File No.) (IRS Employer I.D. No.)
One Commerce Street, Montgomery, Alabama 36104
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code: 334-240-5000
<PAGE> 2
ITEM 5. OTHER EVENTS
The information contained in this filing supersedes the information
contained in previous filings, including, but not limited to, the report on
Form 8-K filed by the registrant on December 21, 1998.
COLONIAL BANCGROUP, INC. ANNOUNCES YEAR END RESULTS
MONTGOMERY---Colonial BancGroup, Inc. Chairman and Chief Executive Officer
Robert E. Lowder announced today 1998 net income of $55 million or $0.49 per
share, which includes acquisition and restructuring costs, Year 2000 expenses,
and write-downs of its mortgage servicing portfolio totaling $63 million or
$0.36 per share after taxes. This represents a 39 percent decrease from 1997
net income and a 42 percent decrease in earnings per share. For the fourth
quarter 1998, the Company recognized a net loss of $4 million or $0.04 per
share, which includes previously announced acquisition and restructuring costs,
Year 2000 expenses, and write-downs of its mortgage servicing portfolio
totaling $22.5 million or $0.13 per share after taxes.
The previously reported results for year-end 1997 have been restated
to include the results of various bank acquisitions completed in 1998 that were
accounted for under the pooling-of-interests method of business combinations.
"1998 was an important year for Colonial BancGroup. We began 1998 with
$6.9 billion in total assets and ended the year with over $10.4 billion in
assets and banking operations in six states," reported Chairman of the Board
and Chief Executive Officer Robert E. Lowder. Mr. Lowder further reported that
internal loan growth was extremely strong in the fourth quarter of 1998.
Colonial achieved internal loan growth of $349 million, an annualized rate of
21%, during the fourth quarter and $931 million or 15% for the year.
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<PAGE> 3
The following table illustrates Colonial's growth in assets by state over the
past three years (as originally reported, prior to restatement for subsequent
poolings-of-interests):
<TABLE>
<CAPTION>
12/31/96 12/31/97 12/31/98
-----------------------------------------
<S> <C> <C> <C>
Alabama $ 3,995 $ 4,664 $ 6,246
Georgia 486 484 712
Florida 291 1,600 2,833
Tennessee 98 103 101
Texas -- -- 287
Nevada -- -- 277
-----------------------------------------
$ 4,870 $ 6,851 $ 10,456
=========================================
</TABLE>
As previously announced on December 18, 1998, Colonial recorded a
pretax impairment charge of $30 million, writing down the value of mortgage
servicing rights of its subsidiary, Colonial Mortgage Company. Based upon
additional information that Colonial obtained from third party valuation
consultants during December 1998 and January 1999 and management's analysis of
that information, management has determined that $18.5 million of the
impairment charge is most appropriately reflected in the third quarter of 1998.
Therefore, in accordance with applicable accounting standards, Colonial has
restated earnings for the third quarter of 1998 to include the charge.
The write-down associated with mortgage servicing rights was caused
primarily by anticipated prepayments of mortgages in the servicing portfolio
being greater than previously expected. The write-down increased the valuation
allowance against loss occasioned by future prepayments to $38.3 million at
December 31, 1998.
During 1998, the Company began to hedge its servicing portfolio
against risk associated with future decreases in interest rates. This program
has now been aggressively augmented, and includes a system of daily monitoring
of servicing assets, supported by the expertise of a third party advisor that
specializes in analyzing mortgage servicing rights and hedging activities. The
use of the third party advisor should improve management's monitoring of
servicing rights and will assist the Company in its use of hedging products. As
of December 31, 1998, approximately 50% of the mortgage servicing portfolio had
been hedged.
Over the past three years, Colonial completed twenty-five acquisitions
establishing operations in Florida, Georgia, Nevada and Texas. During the
fourth quarter of 1998, management made the
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<PAGE> 4
decision to shift the Company's focus from bank acquisition activity to
streamlining operations and emphasizing profitable business units. In
connection with this strategic decision, the Company has developed a plan to:
- - close certain unprofitable branches
- - sell certain super-market branches
- - relocate and upgrade other branches
- - move the headquarters of the South Florida region to downtown Miami and to
consolidate the trust department into the South Florida headquarters to
better serve its customer base
These previously announced decisions resulted in restructuring charges of
approximately $7.5 million in the fourth quarter of 1998.
As previously announced during the fourth quarter of 1998, Colonial
increased its allowance for loan losses by recognition of a provision which
exceeded previous quarterly amounts by approximately $10 million. The
additional provision was the result of the Company's significant loan growth of
over $349 million during the fourth quarter and increased charge-offs during
the fourth quarter.
Colonial's asset quality remained strong at year end, with a
non-performing asset ratio of 0.60% at December 31, 1998 compared to 0.74% at
December 31, 1997. The net charge-off ratio for the year was 0.26% of average
net loans compared to 0.23% for 1997. The Company's loan loss reserve ratio was
1.18% at December 31, 1998 compared to 1.21% at December 31, 1997. The reserve
coverage of nonperforming loans was 245% at December 31, 1998 compared to 247%
at December 31, 1997. Colonial's historical loan loss experience has been
favorable compared to the average of other FDIC insured institutions.
Loans increased 19% from $6.0 billion at December 31, 1997 to $7.1
billion at December 31, 1998 causing a corresponding 15% increase in net
interest income for the year. Internal loan growth for the year was 15%. Net
interest margins compressed during the fourth quarter of the year due to the
reduction in interest rates by the Federal Reserve during the same period.
Noninterest income was $125 million for the year ended December 31,
1998 compared to $101 million in 1997, a 24% increase. The Company created or
augmented the following operations during 1998 to expand its sources of
noninterest income:
-3-
<PAGE> 5
- - Established an international banking department which became fully
operational in July 1998. The department engages in confirming letters of
credit with top-tier banks in Latin America and direct disbursements to
those banks from U.S. customers. Colonial does not engage in capital market
speculation.
- - Established a private banking function and augmented an investment sales
force within its regional bank structure to emphasize relationship banking
and to generate income from sales of securities and annuities.
- - Established Colonial Asset Management, Inc. (CAM), an asset management
group, under the former head of Barnett Bank's asset management group, Jack
Ablin. CAM now has over $170 million in assets under management and is
projected to have over $300 million in assets under management by the end
of 1999.
Noninterest expenses for the year totaled $355 million compared to
$242 million for 1997, a 47 percent increase. Noninterest expenses for 1998
include acquisition and restructuring costs totaling $21.5 million, Year 2000
expenses of $4.6 million, and $36.5 million in write-downs of mortgage
servicing rights. Noninterest expenses for the fourth quarter of 1998 include
acquisition and restructuring costs totaling $9.8 million, Year 2000 expenses
of $1.2 million and $11.5 million in write-downs of mortgage servicing rights.
For the year ended December 31, 1997, the Company incurred $6.5 million in
acquisition and restructuring costs and $0.4 million in Year 2000 expenses.
As previously announced, the Company has encountered delays in
realizing cost savings expected from converting certain Florida acquisitions to
Colonial's data processing system because its prior item processor, Barnett
Banks, was unable to complete the Company's conversion schedule after Barnett's
acquisition by NationsBank. As a result, the Company expects to complete an
item processing facility in Florida during the second quarter of 1999 which
will eliminate those delays. Cost savings from those conversions are expected
to exceed $4 million annually.
Mr. Lowder said, "1998 has been a year of tremendous growth and change
for the Company. This growth and these changes have created a newly refined
focus on achieving greater efficiencies from our consolidated operations. As we
begin the new year, we believe that Colonial is well positioned within its
markets. We are especially pleased with our positioning in high growth markets
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<PAGE> 6
in a number of the states which make up Colonial's franchise. This positioning
has resulted from a deliberate strategy to access these markets, and we are
excited about our growth and earnings potential for 1999."
This document contains certain forward-looking statements relating to
present or future trends or factors affecting the banking industry and
specifically the operations, markets and products of the Company. Actual
results could differ materially from those projected and may be affected by
changing events and trends that have influenced the Company's assumptions, but
that are beyond the control of the Company. These trends and events include
changes in the interest rate environment, effects of the Company's mortgage
servicing rights hedging program, expected cost savings from proposed
conversions and item processing functions, anticipated growth in the Company's
newly established or augmented sources of noninterest income, changes in the
domestic and foreign business environments and securities markets and changes
in the regulatory authorities and policies affecting the Company. Additional
information on other factors that could affect the financial results of the
Company is included in the Company's filings with the Securities and Exchange
Commission.
Colonial BancGroup is a multi-state bank holding company headquartered
in Montgomery, Alabama with over 250 offices in Alabama, Florida, Georgia,
Tennessee, Texas and Nevada. Its common stock is traded on the New York Stock
Exchange under the symbol CNB. In most newspapers, the stock is listed as
ColBgp. The Company's internet web site is http:\\www.colonialbank.com.
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<PAGE> 7
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL DATA (UNAUDITED)
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
% CHANGE
DECEMBER 31, DECEMBER 31,
1998 1997* 1997 TO 1998
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
STATEMENT OF CONDITION SUMMARY
Total assets................................ $10,456,281 $8,061,566 30%
Loans, net of unearned income............... 7,110,295 5,951,067 19%
Total earnings assets....................... 9,356,876 7,258,784 29%
Deposits.................................... 7,446,153 6,325,690 18%
Shareholders' equity........................ 639,809 590,017 8%
Book value per share........................ $5.77 $ 5.55 4%
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------------------
% CHANGE % CHANGE
1998 1997* 1997 TO 1998 1998 1997* 1997 TO 1998
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Earnings Summary
Net interest income (taxable equivalent) $346,210 $301,969 15% $ 89,047 $ 80,094 11%
Provision for loan losses .............. 26,345 16,321 61% 14,343 5,442 164%
Noninterest income ..................... 125,258 100,945 24% 30,749 29,668 4%
Noninterest expense .................... 355,412 241,714 47% 110,961 66,729 66%
Net income ............................. 55,196 90,362 -39% (3,896) 23,427 -117%
Average shares outstanding ............. 110,062 105,010 110,403 106,202
Average diluted shares outstanding ..... 112,431 108,396 112,424 109,493
Earnings per share**:
Net income:
Basic ............................. $ 0.50 $ 0.86 -42% $( 0.04) $ 0.22 -118%
Diluted ........................... $ 0.49 $ 0.84 -42% $( 0.04) $ 0.21 -119%
SELECTED RATIOS:
Net income to:
Average assets (1) ................... 0.60% 1.22% 0.67% 1.28%
Average shareholders' equity (1) ..... 8.59% 16.49% 10.21% 17.27%
Efficiency ratio ....................... 75.38% 59.99% 92.62% 60.79%
Equity to assets ....................... 6.12% 7.32%
Total capital .......................... 6.98% 8.22%
Tier one leverage ...................... 6.22% 7.56%
</TABLE>
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
DECEMBER 31,
1998 1997*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
NONPERFORMING ASSETS
Total non-performing assets ratio................... 0.60% 0.74%
Loan loss reserve ratio............................. 1.18% 1.21%
Allowance as a percent of nonperforming loans....... 245% 247%
Net charge-offs ratio (annualized):
Year to date .................................. 0.26% 0.23%
Quarter to date ............................... 0.49% 0.39%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Restated financial results above reflect the business combinations with United
American Holding Corporation, South Florida Banking Corp., First Central Bank,
Commercial Bank of Nevada, FirstBank, First Macon Bank & Trust, Prime Bank of
Central Florida and InterWest Bancorp, Inc.. These mergers were accounted for as
poolings of interest and the financial results have been restated accordingly.
** Restated to reflect the 100% stock dividend effected in the form of a
two-for-one stock split paid on August 14, 1998.
(1) This calculation does not annualize the one-time charges recorded during the
quarter.
<PAGE> 8
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
TWELVE MONTHS ENDED THREE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
- ---------------------------------------------------------------------------------------------------------------
1998 1997* 1998 1997*
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans .................................... 604,493 512,213 158,143 136,908
Interest on investments ....................................... 83,408 64,849 23,854 15,668
Other interest income ......................................... 5,641 6,575 719 1,906
- ---------------------------------------------------------------------------------------------------------------
Total interest income ......................................... 693,542 583,637 182,716 154,482
- ---------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE:
Interest on deposits .......................................... 256,446 232,898 65,118 61,055
Interest on short-term borrowings ............................. 54,866 40,825 17,113 10,378
Interest on long-term debt .................................... 39,129 11,048 12,204 3,721
- ---------------------------------------------------------------------------------------------------------------
Total interest expense ........................................ 350,441 284,771 94,435 75,154
- ---------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME ........................................... 343,101 298,866 88,281 79,328
Provision for possible loan losses ............................ 26,345 16,321 14,343 5,442
- ---------------------------------------------------------------------------------------------------------------
NET INTEREST INCOME AFTER PROVISION FOR POSSIBLE LOAN LOSSES... 316,756 282,545 73,938 73,886
- ---------------------------------------------------------------------------------------------------------------
NONINTEREST INCOME:
Mortgage servicing and origination fees ....................... 44,308 38,352 12,009 11,282
Service charges on deposit accounts ........................... 39,090 32,709 10,324 8,890
Other charges, fees and commissions ........................... 7,398 6,919 1,374 1,803
Securities gains (losses), net ................................ 1,449 669 373 623
Other income .................................................. 33,013 22,296 6,669 7,070
- ---------------------------------------------------------------------------------------------------------------
Total noninterest income ...................................... 125,258 100,945 30,749 29,668
- ---------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE:
Salaries and employee benefits ................................ 121,445 105,287 32,816 28,397
Occupancy expense of bank premises, net ....................... 28,291 23,821 7,718 6,577
Furniture and equipment expenses .............................. 24,787 20,086 6,424 5,729
Amortization of mortgage servicing rights ..................... 62,909 17,123 21,953 4,930
Amortization of intangible assets ............................. 4,927 3,206 1,265 1,013
Acquisition and restructuring costs ........................... 21,535 6,463 9,820 3,181
Year 2000 expense ............................................. 4,617 432 1,206 199
Other expense ................................................. 86,901 65,296 29,759 16,703
- ---------------------------------------------------------------------------------------------------------------
Total noninterest expense ..................................... 355,412 241,714 110,961 66,729
- ---------------------------------------------------------------------------------------------------------------
INCOME BEFORE INCOME TAXES .................................... 86,602 141,776 (6,274) 36,825
Applicable income taxes ....................................... 31,406 51,414 (2,378) 13,398
- ---------------------------------------------------------------------------------------------------------------
NET INCOME .................................................... $ 55,196 $ 90,362 $ (3,896) $ 23,427
===============================================================================================================
Earnings per share**:
Net Income:
Basic ................................................... $ 0.50 $ 0.86 $ (0.04) $ 0.22
Diluted ................................................. $ 0.49 $ 0.84 $ (0.04) $ 0.21
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
* Restated financial results above reflect the business combination with
United American Holding Corporation, South Florida Banking Corp., First Central
Bank, Commercial Bank of Nevada, FirstBank, First Macon Bank & Trust, Prime
Bank of Central Florida and InterWest Bancorp, Inc.. These mergers were
accounted for as poolings of interest and the financial results have been
restated accordingly.
** Restated to reflect the 100% stock dividend effected in the form of a
two-for-one stock split on August 14, 1998.
<PAGE> 9
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited)
(Dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
December 31, December 31,
1998 1997*
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets:
Cash and due from banks..................................................... $ 525,595 $ 337,079
Interest-bearing deposits in banks and federal funds sold................... 57,247 100,172
Securities available for sale............................................... 1,414,218 655,864
Investment securities....................................................... 170,954 313,140
Mortgage loans held for sale................................................ 604,162 238,540
Loans, net of unearned income............................................... 7,110,295 5,951,067
Less:
Allowance for possible loan losses........................................ (83,562) (72,107)
- ---------------------------------------------------------------------------------------------------------------------
Loans, net.................................................................. 7,026,733 5,878,960
Premises and equipment, net................................................. 181,617 161,387
Excess of cost over tangible and identified intangible
assets acquired, net...................................................... 84,893 69,250
Mortgage servicing rights................................................... 183,469 142,040
Other real estate owned..................................................... 8,728 14,840
Accrued interest and other assets........................................... 198,666 150,294
- ----------------------------------------------------------------------------------------------------------------------
Total....................................................................... $10,456,281 $ 8,061,566
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
Liabilities and Shareholders' Equity:
Deposits.................................................................... $ 7,446,153 $ 6,325,690
FHLB short-term borrowings.................................................. 769,987 420,000
Other short-term borrowings................................................. 657,254 311,359
Subordinated debt........................................................... 12,541 6,088
Trust preferred securities.................................................. 70,000 70,000
FHLB long-term debt......................................................... 528,163 234,831
Other long-term debt........................................................ 219,470 4,362
Other liabilities........................................................... 112,905 99,219
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities........................................................... 9,816,472 7,471,549
Shareholders' equity:
Preference Stock $2.50 par value; 1,000,000 shares
authorized, none issued................................................. - -
Common Stock, $2.50 par value; 200,000,000 shares authorized
110,962,365 and 106,282,975 shares issued and outstanding
at December 31, 1998 and December 31, 1997
respectively**.......................................................... 277,405 265,707
Treasury Stock (26,501 shares)............................................ (355) -
Additional paid in capital**.............................................. 113,470 97,324
Retained earnings......................................................... 249,299 226,513
Unearned compensation..................................................... (2,348) (1,750)
Unrealized gains(losses) on securities available for sale, net of taxes... 2,338 2,223
- ------------------------------------------------------------------------------------------------------------------------
Total shareholders' equity.................................................. 639,809 590,017
- ------------------------------------------------------------------------------------------------------------------------
Total....................................................................... $10,456,281 $8,061,566
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Restated financial results above reflect the business combination with United
American Holding Corporation, South Florida Banking Corp., First Central Bank,
Commercial Bank of Nevada, FirstBank, First Macon Bank & Trust, Prime Bank of
Central Florida and InterWest Bancorp, Inc.. These mergers were accounted for
as poolings of interest and the financial results have been restated
accordingly.
** Restated to reflect the 100% stock dividend effected in the form of a
two-for-one stock split on August 14, 1998.
<PAGE> 10
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES
AVERAGE VOLUME AND RATES
(UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------------
TWELVE MONTHS ENDED DECEMBER 31,
1998 1997*
- -----------------------------------------------------------------------------------------------------------------------------------
AVERAGE AVERAGE
VOLUME INTEREST RATE VOLUME INTEREST RATE
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Loans, net................................................. $6,451,427 $ 575,851 8.93% $5,497,737 $500,802 9.11%
Mortgage loans held for sale............................... 407,672 29,585 7.26% 158,966 12,437 7.82%
Investment securities and securities available for sale....
and other interest-earning assets 1,441,774 91,215 6.33% 1,147,384 73,501 6.41%
- ---------------------------------------------------------------------------------------- ----------------------
Total interest-earning assets(1)........................... 8,300,873 $ 696,651 8.39% 6,804,087 $586,740 8.62%
- ---------------------------------------------------------------------------------------- ----------------------
Nonearning assets.......................................... 895,022 628,402
- ----------------------------------------------------------------------------- ----------
Total assets............................................. $9,195,895 $7,432,489
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing deposits.................................. $5,452,970 $ 256,446 4.70% $4,878,768 $232,898 4.77%
Short-term borrowings...................................... 1,004,372 54,866 5.46% 727,790 40,825 5.61%
Long-term debt............................................. 641,367 39,129 6.10% 158,530 11,048 6.97%
- ---------------------------------------------------------------------------------------- ----------------------
Total interest-bearing liabilities......................... 7,098,709 $ 350,441 4.94% 5,765,088 $284,771 4.94%
- ---------------------------------------------------------------------------------------- ----------------------
Noninterest-bearing demand deposits........................ 1,297,910 1,023,411
Other liabilities.......................................... 156,989 96,104
------------------------- ----------------------
Total liabilities.......................................... 8,553,608 6,884,603
Shareholders' equity....................................... 642,287 547,886
- ----------------------------------------------------------------------------- ----------
Total liabilities and shareholders' equity................... $9,195,895 $7,432,489
- -----------------------------------------------------------------------------------------------------------------------------------
RATE DIFFERENTIAL............................................ 3.45% 3.68%
NET YIELD ON INTEREST-EARNING ASSETS......................... $ 346,210 4.17% $301,969 4.44%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Restated financial results above reflect the business combinations with
United American Holding Corporation, South Florida Banking Corp., First
Central Bank, Commercial Bank of Nevada, First Bank, First Macon Bank &
Trust, Prime Bank of Central Florida and InterWest Bancorp, Inc. These
mergers were accounted for as poolings-of-interests and the financial
results have been restated accordingly.
(1) Interest earned and average rates on obligations of states and political
subdivisions are reflected on a tax equivalent basis. Tax equivalent
interest earned is : actual interest earned times 145%. The taxable
equivalent adjustment has given effect to the disallowance of interest
expense deductions, for federal income tax purposes, related to certain
tax-free assets.
Dividends earned and average rates for preferred stocks are reflected on a
tax equivalent basis. Tax equivalent dividends are: actual dividends times
137.7%.
<PAGE> 11
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES
AVERAGE VOLUME AND RATES
(UNAUDITED)
(Dollars in thousands)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Three Months Ended December 31,
1998 1997*
- ----------------------------------------------------------------------------------------------------------------------------------
AVERAGE AVERAGE
VOLUME INTEREST RATE VOLUME INTEREST RATE
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Loans, net............................................... $ 6,885,367 $149,684 8.62% $5,836,685 $133,369 9.07%
Mortgage loans held for sale............................. 490,229 8,690 7.09% 194,955 3,789 7.77%
Investment securities and securities available for sale
and other interest-earning assets....................... 1,618,043 25,108 6.16% 1,130,142 18,090 6.35%
- ------------------------------------------------------------------------------------- -----------------------
Total interest-earning assets(1)......................... 8,993,639 $183,482 8.09% 7,161,782 $155,248 8.60%
- ------------------------------------------------------------------------------------- -----------------------
Nonearning assets........................................ 1,027,842 697,568
- -------------------------------------------------------------------------- ----------
Total assets........................................... $10,021,481 $7,859,350
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing deposits................................ $ 5,639,102 $ 65,118 4.58% $5,103,512 $ 61,055 4.75%
Short-term borrowings.................................... 1,309,676 17,113 5.18% 698,854 10,378 5.89%
Long-term debt........................................... 808,269 12,204 5.99% 232,706 3,721 6.34%
- ------------------------------------------------------------------------------------- -----------------------
Total interest-bearing liabilities....................... 7,757,047 $ 94,435 4.83% 6,035,072 $ 75,154 4.94%
- ------------------------------------------------------------------------------------- -----------------------
Noninterest-bearing demand deposits...................... 1,409,120 1,129,999
Other liabilities........................................ 202,201 110,300
----------- ----------
Total liabilities........................................ 9,368,368 7,275,371
Shareholders' equity..................................... 653,113 583,979
- -------------------------------------------------------------------------- ----------
Total liabilities and shareholders' equity................. $10,021,481 $7,859,350
- ----------------------------------------------------------------------------------------------------------------------------------
RATE DIFFERENTIAL.......................................... 3.26% 3.66%
NET YIELD ON INTEREST-EARNING ASSETS....................... $ 89,047 3.93% $ 80,094 4.44%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Restated financial results above reflect the business combinations with
United American Holding Corporation, South Florida Banking Corp., First
Central Bank, Commercial Bank of Nevada, FirstBank, First Macon Bank &
Trust, Prime Bank of Central Florida and InterWest Bancorp. These mergers
were accounted for as poolings-of-interests and the financial results have
been restated accordingly.
(1) Interest earned and average rates on obligations of states and political
subdivisions are reflected on a tax equivalent basis. Tax equivalent
interest earned is : actual interest earned times 145%. The taxable
equivalent adjustment has given effect to the disallowance of interest
expense deductions, for federal income tax purposes, related to certain
tax-free assets.
Dividends earned and average rates for preferred stocks are reflected on a
tax equivalent basis. Tax equivalent dividends are: actual dividends times
137.7%.
<PAGE> 12
SIGNATURES
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.
THE COLONIAL BANCGROUP, INC.
----------------------------
(Registrant)
Date: January 20, 1999 /s/ W. Flake Oakley
----------------------------
W. Flake Oakley
Chief Financial Officer
