CAROLINA FIRST REPORTS RECORD THIRD QUARTER EARNINGS
Before Special SAIF Assessment
GREENVILLE, S.C., Oct. 17 /PRNewswire/ -- Carolina First Corporation
(Nasdaq-NNM: CAFC) today reported a 25% increase in operating net income
for the third quarter of 1996 to a record $3.1 million, or $0.33 per
fully diluted share, excluding the impact of a one-time special SAIF
assessment, compared with last year's third quarter net income of $2.5
million, or $0.27 per fully diluted share.
On September 30, 1996, the President signed into law legislation
requiring a special assessment to recapitalize the Savings Association
Insurance Fund (SAIF). Thrift institutions or non-thrift institutions,
such as Carolina First, which have acquired deposits from thrift
institutions over past years will be levied this one-time charge. To
cover the special SAIF assessment, Carolina First recorded an after-tax
charge of $746,000, or $0.08 per fully diluted share.
For the first nine months of 1996, operating net income was $8.0 million,
or $0.84 per fully diluted share, up 16% from the $6.9 million, or
$0.74 per fully diluted share, earned during the same period last year.
Including the SAIF assessment, Carolina First's reported net income for
the first nine months of 1996 was $7.2 million, or $0.77 per fully
diluted share.
Mack I. Whittle, Jr., President and Chief Executive Officer of Carolina
First Corporation, said, "We are pleased with our strong performance for
the quarter and our increasing profitability. We reached new records
for both net income and return on equity, excluding the special SAIF
assessment. We also continued efforts to strengthen our balance sheet.
During the quarter, we sold the majority of our credit card portfolio,
totaling approximately $55 million, for a gain. We also increased our
allowance for loan losses to 1% of loans. These moves provide us with a
stronger financial position from which to plan for the future."
At September 30, 1996, assets totaled $1.5 billion, an 8% increase from
$1.4 billion for the same period last year. Loans increased 2% to $1.1
billion at September 30, 1996 from $1.0 billion at September 30, 1995.
Adjusting for loan purchases and sales, internal loan growth totaled
approximately $270 million, or 35%, during the past year. Credit
quality continued to be outstanding with nonperforming assets as a
percentage of loans and foreclosed property of 0.37%. Deposits
increased 16% to $1.2 billion, which included approximately $66 million
in deposits raised during the third quarter. Shareholders' equity
increased 10% to $101 million at September 30, 1996 from $92 million at
September 30, 1995.
Earlier this week, Carolina First announced the introduction of Atlanta
Internet Bank, which offers banking products primarily by means of a
secured Internet web site. Currently, Atlanta Internet Bank services
are being offered as a product of Carolina First Bank. Ultimately,
Atlanta Internet Bank is expected to be a stand-alone entity in which
Carolina First will be a lead investor, owning approximately 40% of the
bank. Carolina First's alliance with Atlanta Internet Bank follows its
investment in Affinity Technology Group Inc., a developer of
consumer-friendly automation for the consumer finance industry, which
was announced earlier this year.
Whittle commented, "Similar to our investment in Affinity, Atlanta
Internet Bank is another example of our strategy to seek and develop
creative new banking technologies. In both cases, Carolina First has
participated both as a bank offering the product and as investor in the
entrepreneurial company."
Carolina First owns approximately 6 million shares of Affinity's common
stock, principally in the form of warrants. Affinity completed its
initial public offering in April 1996. As part of the public offering,
Carolina First signed a lock-up agreement which will expire on October
22, 1996.
Commenting on Carolina First's investment in Affinity, Whittle said, "We
currently have no plans to dispose of our shares at the current price.
The Board of Directors will periodically review the investment in
Affinity and will decide what action to take as market conditions
change."
Carolina First Corporation, headquartered in Greenville, South Carolina,
is one of the largest independent bank holding companies in South
Carolina with 55 banking offices throughout the state. Its three
subsidiaries are Carolina First Bank (CFB), a state-chartered commercial
bank, Carolina First Mortgage Company (CFMC), a mortgage banking
operation, and Blue Ridge Finance Company, an automobile finance
company. CFB is the largest South Carolina- based commercial bank, and
CFMC is the second largest mortgage loan servicer in South Carolina.
Through its subsidiaries, Carolina First provides a full range of
banking services, including mortgage, trust and investment services,
designed to meet substantially all of the financial needs of its
customers.
Carolina First's common stock trades on the Nasdaq National Market
under the symbol CAFC. Market makers include J.C. Bradford & Co.,
Fox-Pitt, Kelton Inc., Interstate/Johnson Lane, Morgan Keegan & Company,
Inc., The Robinson- Humphrey Company, Inc., Sterne Agee & Leach, and
Wheat First Butcher & Singer.
SOURCE Carolina First Corporation |
