<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
April 15, 1999 (April 15, 1999)
-----------------------------------------------
Date of Report (Date of earliest event reported)
UNION PLANTERS CORPORATION
--------------------------------------------------
(Exact name of registrant as specified in charter)
TENNESSEE 1-10160 62-0859007
- ------------------------ ------------- -------------------
(State of incorporation) (Commission (IRS Employer
File Number) Identification No.)
UNION PLANTERS ADMINISTRATIVE CENTER
7130 GOODLETT FARMS PARKWAY
MEMPHIS, TENNESSEE 38018
----------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (901) 580-6000
--------------
Not Applicable
-------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE> 2
ITEM 5. OTHER EVENTS
FIRST QUARTER EARNINGS
On April 15, 1999, Union Planters Corporation announced operating results
for the three months ended March 31, 1998. A copy of the Corporation's press
release announcing the results is attached as Exhibit 99.1 and is incorporated
by reference herein. Additionally, the Corporation provided supplemental
financial information for analysts and other interested investors which is
attached as Exhibit 99.2 and is incorporated by reference herein.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS, AND EXHIBITS
C. Exhibits
99.1 Union Planters Corporation Press Release dated April 15, 1999,
announcing operating results for the three months ended March
31, 1999
99.2 Unaudited Supplemental First Quarter 1999 Financial
Information
2
<PAGE> 3
SIGNATURE
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.
Union Planters Corporation
---------------------------------
Registrant
Date: April 15, 1999 /s/ M. Kirk Walters
---------------------------------
M. Kirk Walters
Senior Vice President, Treasurer,
and Chief Accounting Officer
3
<PAGE> 1
EXHIBIT 99.1
Union Planters Corporation Press Release
dated April 15, 1999, announcing operating results for
the three months ended March 31, 1999
<PAGE> 2
April 15, 1999
UNION PLANTERS CORPORATION ANNOUNCES FIRST QUARTER 1999 RESULTS
Memphis, TN -- Union Planters Corporation (NYSE: UPC) announced first
quarter 1999 net earnings of $97.4 million, or $.67 per diluted share, compared
to $104.5 million, or $.74 per diluted share for the first quarter of 1998. Cash
earnings (net earnings adjusted for the after-tax impact of amortization of
goodwill and other intangibles) were $107.9 million, or $.75 per diluted share
for 1999 compared to $110.0 million, or $.78 per diluted share for 1998. Cash
earnings for the first quarter of 1999 represented returns on average tangible
assets and average tangible common equity of 1.37% and 17.84%, respectively,
compared to 1.50% and 16.99%, respectively, for the same period in 1998.
The results for the first quarter of 1999 include two acquisitions,
First Mutual Bancorp, Inc., in Decatur, Illinois, and First & Farmers
Bancshares, Inc., in Somerset and Burkesville, Kentucky, and the purchase of 56
branches, $855 million of loans and the assumption of $1.7 billion of deposit
liabilities in Indiana. All of these transactions were accounted for using the
purchase method of accounting which includes their results from the date of
acquisition.
Benjamin W. Rawlins, Jr., Chairman and Chief Executive Officer said,
"It was a solid quarter for us although we are disappointed with the shortfall
compared to last year. Our results continue to be affected by our ongoing
integration of recent acquisitions and the implementation of a number of
operational changes. Once completed, we expect profitability ratios to improve
and to report higher earnings per share each quarter for the remainder of the
year."
<PAGE> 3
Net interest income for the first quarter of 1999 was $295.7 million,
down $8.1 million from the same period in 1998 and up $1.8 million from the
fourth quarter of 1998. The net interest margin for the first quarter of 1999
was 4.22% compared to 4.59% and 4.24%, respectively, for the first and fourth
quarters of 1998. Average loans, excluding FHA/VA loans, increased 2.0% for the
first quarter of 1999 compared to the same period in 1998.
The provision for losses on loans for the first quarter of 1999 was
$16.3 million, down $16.9 million from the same period in 1998. The decrease is
attributable primarily to the sale of the credit card portfolio in the fourth
quarter of 1998 which reduced the provision approximately $10.5 million and to
lower provisions by acquired institutions. Net charge-offs were $14.2 million,
or .29% of average loans which compares to $26.9 million, or .56% for the same
period in 1998.
At March 31, 1999, the allowance for losses on loans was $345.0
million, or 1.73% of loans and 197% of nonperforming loans. Nonperforming assets
at March 31, 1999 were $203.9 million, or 1.02% of loans and foreclosed
properties. This compares to $182.6 million, or .97% of loans and foreclosed
properties at December 31, 1998.
Noninterest income for the first quarter was $126.3 million compared to
$126.8 million for the first quarter of 1998. First quarter 1999 noninterest
income included income related to the securitization and sale of FHA/VA loans,
the completion of the sale of a portion of the credit card portfolio, and gains
on the sale of branches and other selected assets, which in the aggregate
totaled $9.3 million. Noninterest income for the same period in 1998 included
gains on the sale of branches and other selected assets and investment
securities gains, which in the aggregate totaled $12.3 million. Mortgage banking
<PAGE> 4
revenues and annuity sales increased $5.8 million and $3.1 million,
respectively, during the quarter but were partially offset by a decline in bank
card income due to the sale of the credit card portfolio.
Noninterest expenses increased $21.2 million to $258.2 million for the
first quarter of 1999 compared to the same period in 1998. The increase relates
primarily to noninterest expenses of acquired entities, primarily salaries and
employee benefits expense and amortization of goodwill and other intangibles.
Partially offsetting these increases was a decline in merger related costs of
$4.4 million.
Union Planters Corporation ended the quarter with total assets of $33.7
billion, total loans of $20.5 billion, and total deposits of $26.5 billion.
Shareholders' equity at March 31, 1999 was $3.0 billion and the shareholders'
equity to total assets and leverage ratios were 9.04% and 7.83%, respectively.
Union Planters Corporation, headquartered in Memphis, Tennessee, is a
multi-state bank holding company with 1,090 ATMs and 870 banking offices in
Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana,
Mississippi, Missouri, Tennessee, and Texas. Union Planters is one of the 30
largest bank holding companies in the United States and is included in the S & P
500 Index. The Corporation's Common Stock is traded on the New York Stock
Exchange under the symbol UPC.
To the extent that statements in this report relate to the plans,
objectives, or future performance of Union Planters, these statements are deemed
to be forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Such statements are based on management's current
expectations and the current economic environment. Union Planters' actual
strategies and results in future periods may differ materially from those
currently expected due to various risks and uncertainties. A discussion of
factors affecting Union Planters' business and prospects is contained in the
Corporation's periodic filings with the Securities and Exchange Commission.
-O0O-
<PAGE> 5
FOR ADDITIONAL INFORMATION:
FINANCIAL CONTACT
JACK W. PARKER
EXECUTIVE VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
(901) 580-6781
MEDIA CONTACT
BILL ANDREWS
SENIOR VICE PRESIDENT
(901) 580-2892
[TWO PAGE FINANCIAL ATTACHMENT FOLLOWS]
<PAGE> 6
UNION PLANTERS CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1999 1998
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
INCOME STATEMENT AMOUNTS
Net interest income
Actual $ 295,697 $ 303,750
Taxable-equivalent basis 305,143 311,978
Provision for losses on loans 16,279 33,212
Noninterest income
Investment securities gains 11 5,854
Other 126,243 120,905
Noninterest expense 258,239 237,002
Earnings before income taxes 147,433 160,295
Applicable income taxes 50,083 55,834
NET EARNINGS 97,350 104,461
NET EARNINGS APPLICABLE TO COMMON SHARES 96,892 103,828
CASH EARNINGS 107,914 110,003
- ------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA
Net earnings
- basic $ .68 $ .76
- diluted .67 .74
Cash earnings
- basic .76 .80
- diluted .75 .78
Cash dividends .50 .50
Book value 21.19 21.12
- ------------------------------------------------------------------------------------------------
BALANCES AT END OF PERIOD
Loans, excluding FHA/VA government-insured/guaranteed loans $19,887,089 $19,032,843
Allowance for losses on loans 345,011 334,143
Nonperforming assets
Nonaccrual loans 170,785 141,968
Restructured loans 4,195 6,928
Foreclosed properties 28,960 39,098
Loans 90 days past due 50,906 51,561
FHA/VA government-insured/guaranteed loans 617,854 1,228,769
Nonaccrual 8,369 13,606
90 days past due 329,742 438,038
Available for sale investment securities
Amortized cost 8,721,121 6,608,426
Fair value 8,798,432 6,666,235
Unrealized gain, net of taxes 47,463 36,571
Total assets 33,669,182 30,422,171
Total deposits 26,461,681 23,146,922
Total shareholders' equity 3,043,909 2,920,163
Total common equity 3,021,012 2,882,851
Tier 1 capital 2,476,642 2,885,041
- ------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 7
UNION PLANTERS CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
1999 1998
- ------------------------------------------------------------------------------------------
<S> <C> <C>
AVERAGE BALANCES
Loans, excluding FHA/VA government-insured/
guaranteed loans $19,764,932 $19,378,752
FHA/VA government-insured/guaranteed loans 688,883 1,280,381
Investment securities 8,447,535 6,207,641
Earning assets 29,336,591 27,588,514
Total assets 32,350,030 29,940,465
Total deposits 25,287,719 22,968,546
Interest-bearing liabilities 24,427,846 22,998,653
Demand deposits 4,303,509 3,393,327
Shareholders' equity 2,956,833 2,879,383
Common equity 2,933,643 2,832,631
- ------------------------------------------------------------------------------------------
OTHER SUPPLEMENTAL INFORMATION
Return on average assets 1.22% 1.41%
Return on average common equity 13.39 14.87
Return on average tangible assets 1.37 1.50
Return on average tangible common equity 17.84 16.99
Allowance for losses on loans to loans (1) 1.73 1.76
Nonperforming loans to loans (1) .88 .78
Nonperforming assets to loans and
foreclosed properties (1) 1.02 .99
Net charge-offs of loans $ 14,204 $ 26,873
Net charge-offs as a percentage of
average loans .29% .56%
Common shares outstanding (end of
period, in thousands) 142,570 136,480
Weighted average shares outstanding
(in thousands)
Basic 142,259 135,932
Diluted 144,675 141,414
Yield on earning assets (taxable-equivalent
basis) 7.80% 8.56%
Rate on interest-bearing liabilities 4.30 4.77
Interest rate spread (taxable-equivalent
basis) 3.50 3.79
Net interest income as a percentage of
average earning assets (taxable-equivalent
basis) 4.22 4.59
Shareholders' equity to total assets 9.04 9.60
Leverage ratio 7.83 9.71
(1) Excludes FHA/VA government-insured/guaranteed loans
- ------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 1
EXHIBIT 99.2
Unaudited Supplemental First Quarter 1999 Financial Information
<PAGE> 2
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
March 31,
------------------------------ December 31,
1999 1998 1998
------------ ------------ ------------
<S> <C> <C> <C>
Assets (Dollars in thousands)
Cash and due from banks $ 1,168,722 $ 1,082,930 $ 1,271,614
Interest-bearing deposits at financial institutions 51,652 24,692 47,583
Federal funds sold and securities
purchased under agreements to resell 114,790 522,474 94,568
Trading account assets 280,689 164,943 275,992
Loans held for resale 380,413 259,844 441,214
Available for sale investment securities (amortized cost: $8,721,121,
$6,608,426 and $8,208,570, respectively) 8,798,432 6,666,235 8,301,703
Loans 20,538,456 20,298,326 19,611,168
Less: Unearned income (33,513) (36,714) (34,342)
Allowance for losses on loans (345,011) (334,143) (321,476)
------------ ------------ ------------
Net loans 20,159,932 19,927,469 19,255,350
Premises and equipment, net 582,973 535,617 553,251
Accrued interest receivable 290,226 271,452 293,066
FHA/VA claims receivable 139,411 138,959 126,164
Mortgage servicing rights 107,639 99,833 101,466
Goodwill and other intangibles 725,746 220,379 386,994
Other assets 868,557 507,344 542,988
------------ ------------ ------------
Total assets $ 33,669,182 $ 30,422,171 $ 31,691,953
============ ============ ============
Liabilities and shareholders' equity
Deposits
Noninterest-bearing $ 4,664,334 $ 3,536,791 $ 4,194,402
Certificates of deposit of $100,000 and over 2,429,551 2,891,047 2,614,694
Other interest-bearing 19,367,796 16,719,084 18,087,359
------------ ------------ ------------
Total deposits 26,461,681 23,146,922 24,896,455
Short-term borrowings 2,172,498 1,346,964 1,648,039
Short- and medium-term bank notes 105,000 135,000 105,000
Federal Home Loan Bank advances 210,804 1,133,191 279,992
Other long-term debt 969,410 1,040,215 1,053,740
Accrued interest, expenses, and taxes 292,126 278,673 278,237
Other liabilities 413,754 421,043 446,412
------------ ------------ ------------
Total liabilities 30,625,273 27,502,008 28,707,875
------------ ------------ ------------
Commitments and contingent liabilities - - -
Shareholders' equity
Convertible preferred stock 22,897 37,312 23,353
Common stock, $5 par value; 300,000,000 shares authorized;
142,570,077 issued and outstanding, 136,479,980 at
March 31, 1998 and 141,924,958 at December 31, 1998) 712,850 682,400 709,625
Additional paid-in capital 767,396 607,620 691,789
Retained earnings 1,507,437 1,573,405 1,516,712
Unearned compensation (14,134) (17,145) (14,646)
Accumulated other comprehensive income-unrealized gain on
available for sale securities, net 47,463 36,571 57,245
------------ ------------ ------------
Total shareholders' equity 3,043,909 2,920,163 2,984,078
------------ ------------ ------------
Total liabilities and shareholders' equity $ 33,669,182 $ 30,422,171 $ 31,691,953
============ ============ ============
</TABLE>
<PAGE> 3
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31, Variance
--------------------- ---------------------
1999 1998 Dollar Percentage
-------- --------- --------- ----------
(Dollars in thousands, except per share data)
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans $417,771 $463,444 $(45,673) (9.9)%
Interest on investment securities
Taxable 106,580 84,178 22,402 26.6
Tax-exempt 17,460 13,935 3,525 25.3
Interest on deposits at financial
institutions 987 508 479 94.3
Interest on federal funds sold and securities
purchased under agreements to resell 869 6,834 (5,965) (87.3)
Interest on trading account assets 3,595 3,020 575 19.0
Interest on loans held for resale 7,323 2,331 4,992 214.2
-------- -------- --------
Total interest income 554,585 574,250 (19,665) (3.4)
-------- -------- --------
Interest expense
Interest on deposits 213,004 220,251 (7,247) (3.3)
Interest on short-term borrowings 19,254 17,710 1,544 8.7
Interest on long-term debt 26,630 32,539 (5,909) (18.2)
-------- -------- --------
Total interest expense 258,888 270,500 (11,612) (4.3)
-------- -------- --------
Net Interest Income 295,697 303,750 (8,053) (2.7)
Provision for losses on loans 16,279 33,212 (16,933) (51.0)
-------- -------- --------
Net interest income after provision
for losses on loans 279,418 270,538 8,880 3.3
-------- -------- --------
Noninterest Income
Service charges on deposit accounts 38,867 36,872 1,995 5.4
Mortgage banking revenue 27,487 21,645 5,842 27.0
Bank card income 2,960 9,885 (6,925) (70.1)
Factoring commissions 7,028 7,304 (276) (3.8)
Trust service income 6,710 6,281 429 6.8
Profits and commissions from trading
activities 345 1,848 (1,503) (81.3)
Investment securities gains 11 5,854 (5,843) (99.8)
Other income 42,846 37,070 5,776 15.6
-------- -------- --------
Total noninterest income 126,254 126,759 (505) (0.4)
-------- -------- --------
Noninterest expense
Salaries and employee benefits 123,230 113,722 9,508 8.4
Net occupancy expense 20,235 18,236 1,999 11.0
Equipment expense 19,020 17,040 1,980 11.6
Goodwill and other intangible amortization 12,863 5,853 7,010 119.8
Other expense 82,891 82,151 740 0.9
-------- -------- --------
Total noninterest expense 258,239 237,002 21,237 9.0
-------- -------- --------
Earnings before income taxes 147,433 160,295 (12,862) (8.0)
Applicable income taxes 50,083 55,834 (5,751) (10.3)
-------- -------- --------
Net earnings $ 97,350 $104,461 $ (7,111) (6.8)
======== ======== =========
Net earnings applicable to common shares $ 96,892 $103,828 $ (6,936) (6.7)
======== ======== =========
Earnings per common share
Basic $ 0.68 $ 0.76 $ (0.08) (10.4)
Diluted 0.67 0.74 (0.07) (9.5)
Average common shares outstanding
(in thousands)
Basic 142,259 135,932 6,327 4.7
Diluted 144,675 141,414 3,261 2.3
</TABLE>
<PAGE> 4
UNION PLANTERS CORPORATION
Summary of Consolidated Results
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
-------------------------
1999 1998 VARIANCE PERCENTAGE
--------- --------- -------- ----------
<S> <C> <C> <C> <C>
(Dollars in thousands)
Interest income $ 554,585 $ 574,250 $(19,665) -3.4%
Interest expense (258,888) (270,500) 11,612 -4.3%
--------- --------- --------
NET INTEREST INCOME 295,697 303,750 (8,053) -2.7%
PROVISION FOR LOSSES ON LOANS (16,279) (33,212) 16,933 -51.0%
--------- --------- --------
NET INTEREST INCOME AFTER PROVISION FOR LOSSES ON LOANS 279,418 270,538 8,880 3.3%
NONINTEREST INCOME
Service charges on deposit accounts 38,867 36,872 1,995 5.4%
Mortgage banking revenues 27,487 21,645 5,842 27.0%
Bank card income 2,960 9,885 (6,925) -70.1%
Factoring commissions 7,028 7,304 (276) -3.8%
Trust service income 6,710 6,281 429 6.8%
Profits and commissions from trading activities 345 1,848 (1,503) -81.3%
Other income 33,604 30,644 2,960 9.7%
--------- --------- --------
Total noninterest income 117,001 114,479 2,522 2.2%
--------- --------- --------
NONINTEREST EXPENSE
Salaries and employee benefits 123,230 113,722 9,508 8.4%
Net occupancy expense 20,235 18,236 1,999 11.0%
Equipment expense 19,020 17,040 1,980 11.6%
Goodwill and other intangibles amortization 12,863 5,853 7,010 119.8%
Other expense 82,891 77,813 5,078 6.5%
--------- --------- --------
Total noninterest expense 258,239 232,664 25,575 11.0%
--------- --------- --------
EARNINGS BEFORE MERGER-RELATED CHARGES, OTHER
SIGNIFICANT ITEMS, GOODWILL AND OTHER INTANGIBLES
AMORTIZATION, AND INCOME TAXES 138,180 152,353 (14,173) -9.3%
MERGER-RELATED CHARGES, OTHER SIGNIFICANT ITEMS, AND
GOODWILL AND OTHER INTANGIBLES AMORTIZATION
Gain on sale of the credit card portfolio 2,394 - 2,394 100.0%
Gain on securitization and sale of FHA/VA loans 5,317 - 5,317 100.0%
Net gain on sales of branches and other selected assets 1,531 6,426 (4,895) -76.2%
Investment securities gains 11 5,854 (5,843) -99.8%
Merger-related expenses - (4,466) 4,466 -100.0%
Other, net - 128 (128) -100.0%
--------- --------- --------
EARNINGS BEFORE INCOME TAXES 147,433 160,295 (12,862) -8.0%
Applicable income taxes (50,083) (55,834) 5,751 -10.3%
--------- --------- --------
NET EARNINGS $ 97,350 $ 104,461 (7,111) -6.8%
========= ========= ========
NET EARNINGS $ 97,350 $ 104,461 (7,111) -6.8%
MERGER-RELATED CHARGES AND OTHER SIGNIFICANT
ITEMS, NET OF TAXES 5,654 3,131 2,523 80.6%
GOODWILL AND OTHER INTANGIBLES AMORTIZATION,
NET OF TAXES (10,564) (5,542) (5,022) 90.6%
--------- --------- --------
EARNINGS BEFORE MERGER-RELATED CHARGES,
OTHER SIGNIFICANT ITEMS, AND GOODWILL AND
OTHER INTANGIBLES AMORTIZATION, NET OF TAXES $ 102,260 $ 106,872 (4,612) -4.3%
========= ========= ========
</TABLE>
<PAGE> 5
UNION PLANTERS COPORATION
CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND INTEREST RATES
UNAUDITED
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
-------------------------------------------------------------------------------
1999 1998
-------------------------------------------------------------------------------
INTEREST FTE INTEREST FTE
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE BALANCE EXPENSE RATE
------------ --------------------- ------------ --------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS (DOLLARS IN THOUSANDS)
Interest-bearing deposits at
financial institutions $ 120,476 $ 987 3.32 % $ 36,013 $ 508 5.72 %
Federal funds sold and securities
purchased under agreements to resell 75,954 869 4.64 502,534 6,834 5.52
Trading account assets 238,811 3,595 6.11 183,193 3,020 6.69
Investment securities (1) (2)
Taxable securities 7,127,846 106,580 6.06 5,252,084 84,178 6.50
Tax-exempt securities 1,319,689 25,746 7.91 955,557 19,178 8.14
------------ ----------- ------------ -----------
Total investment securities 8,447,535 132,326 6.35 6,207,641 103,356 6.75
Loans, net of unearned income (1), (3), (4) 20,453,815 426,254 8.45 20,659,133 468,760 9.20
------------ ----------- ------------ -----------
TOTAL EARNING ASSETS (1), (2), (3), (4) 29,336,591 564,031 7.80 27,588,514 582,478 8.56
----------- -----------
Cash and due from banks 1,008,050 940,503
Premises and equipment 566,337 536,304
Allowance for losses on loans (342,679) (331,462)
Goodwill and other intangibles 491,474 221,256
Other assets 1,290,257 985,350
------------ ------------
TOTAL ASSETS $ 32,350,030 $ 29,940,465
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Money market accounts $ 3,564,252 33,428 3.80 % $ 3,150,242 29,801 3.84 %
Savings deposits 5,047,427 20,622 1.66 4,252,844 23,863 2.28
Certificates of deposit of
$100,000 and over 2,492,888 33,480 5.45 2,817,107 40,855 5.88
Other time deposits 9,879,643 125,474 5.15 9,355,026 125,732 5.45
Short-term borrowings 1,756,829 19,254 4.44 1,387,180 17,710 5.18
Long-term debt
Federal Home Loan Bank advances 595,347 7,350 5.01 1,139,616 14,180 5.05
Subordinated capital notes 480,702 7,849 6.62 230,686 4,297 7.55
Medium-term bank notes 105,000 1,761 6.80 135,000 2,236 6.72
Trust preferred securities 199,013 4,128 8.41 198,978 4,128 8.41
Other 306,745 5,542 7.33 331,974 7,698 9.40
------------ ----------- ------------ -----------
TOTAL INTEREST-BEARING LIABILITIES 24,427,846 258,888 4.30 22,998,653 270,500 4.77
Noninterest-bearing demand deposits 4,303,509 - 3,393,327
------------ ----------- ------------ -----------
TOTAL SOURCES OF FUNDS 28,731,355 258,888 26,391,980 270,500
----------- -----------
Other liabilities 661,842 669,102
Shareholders' equity
Preferred stock 23,190 46,752
Common equity 2,933,643 2,832,631
------------ ------------
Total shareholders' equity 2,956,833 2,879,383
============ ============
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 32,350,030 $ 29,940,465
============ ============
NET INTEREST INCOME (1) $ 305,143 $ 311,978
=========== ===========
INTEREST RATE SPREAD (1) 3.50 % 3.79%
========== =====
NET INTEREST MARGIN (1) 4.22 % 4.59%
========== =====
TAXABLE-EQUIVALENT ADJUSTMENTS
Loans $ 1,160 $ 2,985
Securities 8,286 5,243
----------- -----------
Total $ 9,446 $ 8,228
--------------------------------------------- =========== ===========
</TABLE>
(1) Taxable-equivalent yields are calculated assuming a 35% Federal income
tax rate.
(2) Yields are calculated on historical cost and exclude the impact of the
unrealized gain (loss) on available for sale securities.
(3) Includes loan fees in both interest income and the calculation of the
yield on loans.
(4) Includes loans on nonaccrual status.
<PAGE> 6
UNION PLANTERS COPORATION
CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND INTEREST RATES
UNAUDITED
<TABLE>
<CAPTION>
THREE MONTHS ENDED
----------------------------------------------------------------------------------
MARCH 31, 1999 DECEMBER 31, 1998
------------------------------------- ------------------------------------
INTEREST FTE INTEREST FTE
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE BALANCE EXPENSE RATE
------------ --------------------- ------------ --------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS (DOLLARS IN THOUSANDS) (DOLLARS IN THOUSANDS)
Interest-bearing deposits at
financial institutions $ 120,476 $ 987 3.32 % $ 41,262 $ 576 5.54 %
Federal funds sold and securities
purchased under agreements to re sell 75,954 869 4.64 198,961 3,425 6.83
Trading account assets 238,811 3,595 6.11 279,869 4,410 6.25
Investment securities (1) and (2)
Taxable securities 7,127,846 106,580 6.06 6,790,231 99,625 5.82
Tax-exempt securities 1,319,689 25,746 7.91 1,241,818 28,602 9.14
------------ ----------- ------------ -----------
Total investment securities 8,447,535 132,326 6.35 8,032,049 128,227 6.33
Loans, net of unearned income (1), (3),
and (4) 20,453,815 426,254 8.45 20,150,872 445,868 8.78
------------ ----------- ------------ -----------
Total earning assets (1), (2),
(3), and (4) 29,336,591 564,031 7.80 28,703,013 582,506 8.05
----------- -----------
Cash and due from banks 1,008,050 1,041,615
Premises and equipment 566,337 549,103
Allowance for losses on loans (342,679) (326,450)
Other assets 1,781,731 1,420,964
------------ ------------
TOTAL ASSETS $ 32,350,030 $ 31,388,245
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Money market accounts $ 3,564,252 33,428 3.80 % $ 3,093,909 30,891 3.96 %
Savings deposits 5,047,427 20,622 1.66 4,962,920 23,929 1.91
Certificates of deposit of
$100,000 and over 2,492,888 33,480 5.45 2,714,815 38,747 5.66
Other time deposits 9,879,643 125,474 5.15 9,904,602 134,341 5.38
Short-term borrowings 1,756,829 19,254 4.44 1,536,558 20,940 5.41
Long-term debt
Federal Home Loan Bank advances 595,347 7,350 5.01 443,888 6,154 5.50
Subordinated capital notes 480,702 7,849 6.62 481,890 7,911 6.51
Medium-term bank notes 105,000 1,761 6.80 105,000 1,761 6.65
Trust preferred securities 199,013 4,128 8.41 199,005 4,128 8.23
Other 306,745 5,542 7.33 373,836 6,992 7.42
----------- ---------- ----------- ----------
Total interest-bearing liabilities 24,427,846 258,888 4.30 23,816,423 275,794 4.59
Noninterest-bearing demand deposits 4,303,509 - 3,854,463 -
------------ ----------- ------------ -----------
Total sources of funds 28,731,355 258,888 27,670,886 275,794
----------- -----------
Other liabilities 661,842 751,619
Shareholders' equity
Preferred stock 23,190 24,268
Common equity 2,933,643 2,941,472
------------ ------------
Total shareholders' equity 2,956,833 2,965,740
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 32,350,030 $ 31,388,245
============ ============
NET INTEREST INCOME (1) $ 305,143 $ 306,712
=========== ===========
INTEREST RATE SPREAD (1) 3.50 % 3.46 %
========== ========
NET INTEREST MARGIN (1) 4.22 % 4.24 %
========== ========
TAXABLE-EQUIVALENT ADJUSTMENTS
Loans $ 1,160 $ 1,656
Securities 8,286 11,116
----------- -----------
Total $ 9,446 $ 12,772
------------------------------------------- =========== ===========
</TABLE>
(1) Taxable-equivalent yields are calculated assuming a 35% Federal income
tax rate.
(2) Yields are calculated on historical cost and exclude the impact of the
unrealized gain (loss) on available for sale securities.
(3) Includes loan fees in both interest income and the calculation of the
yield on loans.
