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Previous: UNION PACIFIC CORP, 8-K, 1999-10-21 |
Next: UNITED TECHNOLOGIES CORP /DE/, SC 14D1, 1999-10-21 |
<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
October 21, 1999 (October 21, 1999)
--------------------------------------------------
Date of Report (Date of earliest event reported)
UNION PLANTERS CORPORATION
--------------------------------------------------
(Exact name of registrant as specified in charter)
<TABLE>
<CAPTION>
<S> <C> <C>
TENNESSEE 1-10160 62-0859007
------------------------- ---------------- ---------------------
(State of incorporation) (Commission (IRS Employer
File Number) Identification No.)
</TABLE>
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
EARNINGS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 1999
On October 21, 1999, Union Planters Corporation announced operating
results for the three and nine months ended September 30, 1999. 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 October 21,
1999, announcing operating results for the three and nine
months ended September 30, 1999
99.2 Unaudited Supplemental Third 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: October 21, 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 October 21, 1999, announcing operating results for
the three and nine months ended September 30, 1999
<PAGE> 2
OCTOBER 21, 1999
UNION PLANTERS CORPORATION ANNOUNCES RECORD QUARTERLY NET EARNINGS
CASH OPERATING EARNINGS PER SHARE UP 28%
Memphis, TN -- Union Planters Corporation (NYSE: UPC) announced record
third quarter 1999 net earnings of $109.5 million compared to $14.2 million for
the third quarter of 1998. Diluted earnings per share were $.76 compared to $.10
for the same period in 1998. Results for the prior year were reduced by
merger-related charges. Net earnings for the current quarter represented returns
on average assets and average common equity of 1.31% and 14.43%, respectively.
Cash operating earnings were $125.0 million, or $.86 per diluted share,
for the third quarter of 1999 compared to $95.5 million, or $.67 per diluted
share, for the third quarter of 1998. This represents an increase of 28% on a
per share basis. Cash operating earnings for the third quarter of 1999
represented returns on average assets and average common equity of 1.50% and
16.48%, respectively. On an average tangible assets and average tangible common
equity basis, cash operating earnings represented returns of 1.54% and 24.00%
respectively.
Benjamin W. Rawlins, Jr., Chairman and Chief Executive Officer said.
"We are pleased to report another consecutive quarter of higher operating
earnings. We are beginning to see the reward for our efforts in integrating
recent acquisitions and repositioning the organization through training and
technology to offer a broad list of financial products and services."
For the nine months ended September 30, 1999, net earnings were $312.6
million compared to $198.0 million for the same period in 1998. Diluted earnings
per common share for the nine months ended September 30, 1999 were $2.16
compared to $1.39 for the same period in 1998. Cash
<PAGE> 3
operating earnings for the nine months ended September 30, 1999 were $334.1
million, or $2.31 per diluted common share, which compared to $297.8 million, or
$2.09 per diluted common share for the same period in 1998.
During the third quarter of 1999, the Corporation's lead bank completed
the previously announced acquisition of Republic Banking Corporation of Florida,
the parent company of Republic National Bank of Miami. "The Republic acquisition
gives us the third largest deposit market share in the Miami MSA. Florida is now
Union Planters' second largest presence behind Tennessee," said Ben Rawlins.
Net interest income for the third quarter of 1999 was $328.2 million,
an increase of $25.5 million over the same period in 1998 and up $16.6 million
from the second quarter of 1999. The net interest margin for the third quarter
of 1999 was 4.49% compared to 4.31% and 4.35%, respectively, for the third
quarter of 1998 and second quarter of 1999. Average loans, excluding FHA/VA
loans, increased 5.5% for the third quarter of 1999 compared to the same period
a year ago.
The provision for losses on loans for the third quarter of 1999 was
$20.4 million, down $30.9 million from the same period in 1998 and up $2.6
million from the second quarter of 1999. The decrease year over year is
attributable primarily to the sale of the credit card portfolio in the fourth
quarter of 1998 and to lower provisions by recently acquired institutions. Net
charge-offs for the third quarter of 1999 were $23.8 million, or .45% of average
loans. This compares to $69.3 million, or 1.39% of average loans, for the same
period in 1998 and $22.2 million, or .44% of average loans, for the second
quarter of 1999.
At September 30, 1999, the allowance for losses on loans was $358.7
million, or 1.72% of loans and 240% of nonperforming loans. Nonperforming assets
and loans 90 days or more past due at September 30,
<PAGE> 4
1999 were $262.8 million, or 1.26% of loans and foreclosed properties. This
compares to $240.0 million, or 1.23% of loans and foreclosed properties, at
September 30, 1998 and $252.5 million, or 1.28% of loans and foreclosed
properties, at June 30, 1999.
Noninterest income, excluding investment securities gains and losses,
for the third quarter of 1999 was $124.3 million which compares to $123.1
million for the same period in 1998 and $137.5 million for the second quarter of
1999. Noninterest income for the second quarter of 1999 included gains
aggregating $9.7 million related primarily to the sale of certain ARM loans, the
sale of the Corporation's corporate trust business, and branch sales.
Noninterest expense was $266.0 million for the third quarter of 1999
which compares to $343.8 million for the same period in 1998 and $275.0 million
for the second quarter of 1999. The third quarter of 1998 included significant
merger-related charges. "We are pleased with the trend in our efficiency ratio
which improved to 54.4% in the third quarter from 58.5% in the second quarter,"
said Ben Rawlins.
Union Planters Corporation ended the quarter with total assets of $33.2
billion, total loans of $21.4 billion, and total deposits of $24.4 billion.
Shareholders' equity at September 30, 1999 was $3.0 billion and the
shareholders' equity to total assets and leverage ratios were 8.90% and 7.03%,
respectively.
On August 9, 1999, the Corporation's Board of Directors authorized the
repurchase of up to 5% of the Corporation's common stock or approximately 7.1
million shares. The purchases are expected to take place over 18 to 24 months in
either open market or in privately negotiated transactions. To date, the
Corporation has repurchased 1.7 million shares.
<PAGE> 5
Union Planters Corporation, headquartered in Memphis, Tennessee, is a
multi-state bank holding company with 1,002 ATMs and 881 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. The Corporation's Common
Stock is traded on the New York Stock Exchange under the symbol UPC and is
included in the S & P 500 Index.
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-
FOR ADDITIONAL INFORMATION, INCLUDING SUPPLEMENTAL THIRD QUARTER FINANCIAL
INFORMATION, VISIT UNION PLANTERS' WEB SITE AT http://www.unionplanters.com OR
CONTACT:
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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999 1998
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME STATEMENT AMOUNTS
Net interest income
Actual $ 328,229 $ 302,717 $ 935,515 $ 913,293
Taxable-equivalent basis 337,832 310,356 964,170 937,822
Provision for losses on loans 20,365 51,222 54,384 127,472
Noninterest income
Investment securities gains (losses) (1,224) 1,635 1,968 (15,095)
Other 124,306 123,148 388,084 386,062
Noninterest expense 265,999 343,836 799,247 837,957
Earnings before income taxes 164,947 32,442 471,936 318,831
Applicable income taxes 55,413 18,292 159,288 120,816
NET EARNINGS 109,534 14,150 312,648 198,015
NET EARNINGS APPLICABLE TO COMMON SHARES 109,101 13,647 311,311 196,411
CASH EARNINGS (1) 123,475 21,199 347,146 216,904
CASH OPERATING EARNINGS (2) 124,982 95,525 334,066 297,833
- -------------------------------------------------------------------------------------------------------------------------------
PER COMMON SHARE DATA
Net earnings
- basic $ .77 $ .10 $ 2.19 $ 1.42
- diluted .76 .10 2.16 1.39
Cash earnings (1)
- basic .86 .15 2.43 1.56
- diluted .85 .15 2.40 1.53
Cash operating earnings (2)
- basic .87 .68 2.34 2.14
- diluted .86 .67 2.31 2.09
Cash dividends .50 .50 1.50 1.50
Book value 20.67 21.34
- -------------------------------------------------------------------------------------------------------------------------------
BALANCES AT END OF PERIOD
Loans, excluding FHA/VA government-insured/guaranteed loans $ 20,827,516 $ 19,554,503
Allowance for losses on loans 358,721 361,005
Nonperforming assets
Nonaccrual loans 147,273 148,246
Restructured loans 2,147 6,414
Foreclosed properties 33,185 27,843
Loans 90 days past due 80,205 57,515
FHA/VA government-insured/guaranteed loans 538,398 762,998
Nonaccrual 7,750 9,309
90 days past due 261,681 348,954
Available for sale investment securities
Amortized cost 7,966,492 8,057,815
Fair value 7,845,191 8,194,225
Unrealized gain (loss), net of taxes (76,789) 84,935
Total assets 33,154,492 31,618,600
Total deposits 24,391,453 24,211,099
Total shareholders' equity 2,951,929 3,032,536
Total common equity 2,930,211 3,008,035
Tier 1 capital 2,260,447 2,794,096
</TABLE>
<PAGE> 7
UNION PLANTERS CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999 1998
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AVERAGE BALANCES
Loans, excluding FHA/VA government-
insured/guaranteed loans $20,899,579 $19,805,247 $ 20,328,484 $ 19,590,548
FHA/VA government-insured/
guaranteed loans 568,222 781,268 621,243 1,025,467
Investment securities 7,988,093 7,441,364 8,262,668 6,942,574
Earning assets 29,867,142 28,566,359 29,615,730 28,167,981
Total assets 33,118,981 30,883,821 32,822,086 30,527,327
Total deposits 25,069,745 23,500,639 25,354,556 23,264,035
Interest-bearing liabilities 25,144,226 23,678,710 24,799,657 23,403,821
Demand deposits 4,262,360 3,530,530 4,347,165 3,507,533
Shareholders' equity 3,020,983 2,964,162 2,992,902 2,920,230
Common equity 2,999,038 2,937,597 2,970,293 2,885,850
- ---------------------------------------------------------------------------------------------------------------------
OTHER SUPPLEMENTAL INFORMATION
Net earnings
Return on average assets 1.31% .18% 1.27% .87%
Return on average common equity 14.43 1.84 14.01 9.10
Cash operating earnings (2)
Return on average assets 1.50 1.23 1.36 1.30
Return on average common equity 16.48 12.83 14.98 13.72
Return on average tangible assets 1.54 1.24 1.39 1.32
Return on average tangible common equity 24.00 14.22 19.75 15.04
Allowance for losses on loans to loans (3) 1.72 1.85
Nonperforming loans to loans (3) .72 .79
Nonperforming assets to loans and
foreclosed properties (3) .88 .93
Net charge-offs of loans $ 23,845 $ 69,285 $ 60,214 $ 105,654
Net charge-offs as a percentage of
average loans (3) .45% 1.39% .40% .72%
Common shares outstanding (end of
period, in thousands) 141,782 140,978
Weighted average shares outstanding
(in thousands)
Basic 142,557 140,739 142,464 138,267
Diluted 144,570 142,406 144,680 142,714
Yield on earning assets (taxable-equivalent
basis) 7.94% 8.21% 7.84% 8.40%
Rate on interest-bearing liabilities 4.10 4.71 4.17 4.75
Interest rate spread (taxable-equivalent
basis) 3.84 3.50 3.67 3.65
Net interest income as a percentage of
average earning assets (taxable-equivalent
basis) 4.49 4.31 4.35 4.45
Shareholders' equity to total assets 8.90 9.59
Leverage ratio 7.03 9.16
</TABLE>
(1) Earnings before goodwill and other intangibles amortization, net of taxes.
(2) Earnings before goodwill and other intangibles amortization,
merger-related charges and other significant items, net of taxes.
(3) Excludes FHA/VA government-insured/guaranteed loans
<PAGE> 1
EXHIBIT 99.2
Unaudited Supplemental Third Quarter 1999 Financial Information
<PAGE> 2
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
<TABLE>
<CAPTION>
September 30, Variance
---------------------------- ------------------------
1999 1998 Dollar Percentage
------------ ------------ ----------- ----------
<S> <C> <C> <C> <C>
Assets (Dollars in thousands)
Cash and due from banks $ 1,008,345 $ 985,383 $ 22,962 2.3 %
Interest-bearing deposits at financial institutions 41,983 26,356 15,627 59.3
Federal funds sold and securities
purchased under agreements to resell 84,222 190,432 (106,210) (55.8)
Trading account assets 225,510 255,583 (30,073) (11.8)
Loans held for resale 305,784 202,833 102,951 50.8
Available for sale investment securities (amortized cost: $7,966,492,
and $8,057,815, respectively) 7,845,191 8,194,225 (349,034) (4.3)
Loans 21,398,942 20,354,926 1,044,016 5.1
Less: Unearned income (33,028) (37,425) 4,397 11.7
Allowance for losses on loans (358,721) (361,005) 2,284 0.6
------------ ------------ -----------
Net loans 21,007,193 19,956,496 1,050,697 5.3
Premises and equipment 648,090 549,207 98,883 18.0
Accrued interest receivable 298,429 281,412 17,017 6.0
FHA/VA claims receivable 137,066 143,154 (6,088) (4.3)
Mortgage servicing rights 120,223 104,307 15,916 15.3
Goodwill and other intangibles 973,399 366,817 606,582 165.4
Other assets 459,057 362,395 96,662 26.7
------------ ------------ -----------
Total assets $ 33,154,492 $ 31,618,600 $ 1,535,892 4.9
============ ============ ===========
Liabilities and shareholders' equity
Deposits
Noninterest-bearing $ 4,181,748 $ 3,426,372 $ 755,376 22.0
Certificates of deposit of $100,000 and over 2,190,474 2,869,220 (678,746) (23.7)
Other interest-bearing 18,019,231 17,915,507 103,724 0.6
------------ ------------ -----------
Total deposits 24,391,453 24,211,099 180,354 0.7
Short-term borrowings 4,046,075 1,855,949 2,190,126 118.0
Short and medium-term bank notes 75,000 105,000 (30,000) (28.6)
Federal Home Loan Bank advances 203,402 617,638 (414,236) (67.1)
Other long-term debt 854,539 1,056,528 (201,989) (19.1)
Accrued interest, expenses, and taxes 232,180 277,916 (45,736) (16.5)
Other liabilities 399,914 461,934 (62,020) (13.4)
------------ ------------ -----------
Total liabilities 30,202,563 28,586,064 1,616,499 5.7
------------ ------------ -----------
Commitments and contingent liabilities -- -- -- --
Shareholders' equity
Convertible preferred stock 21,718 24,501 (2,783) (11.4)
Common stock, $5 par value; 300,000,000 shares authorized;
141,781,749 and 140,977,582 issued and outstanding,
respectively 708,909 704,888 4,021 0.6
Additional paid-in capital 770,642 678,319 92,323 13.6
Retained earnings 1,540,317 1,555,443 (15,126) (1.0)
Unearned compensation (12,868) (15,550) 2,682 17.2
Accumulated other comprehensive income-unrealized gain (loss) on
available for sale securities, net (76,789) 84,935 (161,724) NM
------------ ------------ -----------
Total shareholders' equity 2,951,929 3,032,536 (80,607) (2.7)
------------ ------------ -----------
Total liabilities and shareholders' equity $ 33,154,492 $ 31,618,600 $ 1,535,892 4.9
============ ============ ===========
</TABLE>
<PAGE> 3
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30, VARIANCE
------------------------ -------------------------
1999 1998 DOLLAR PERCENTAGE
--------- -------- --------- ----------
<S> <C> <C> <C> <C>
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
INTEREST INCOME
Interest and fees on loans $ 454,656 $460,363 $ (5,707) (1.2)%
Interest on investment securities
Taxable 105,720 94,671 11,049 11.7
Tax-exempt 17,481 16,785 696 4.1
Interest on deposits at financial institutions 879 204 675 330.9
Interest on federal funds sold and securities
purchased under agreements to resell 1,104 3,730 (2,626) (70.4)
Interest on trading account assets 3,834 3,964 (130) (3.3)
Interest on loans held for resale 4,528 3,975 553 13.9
--------- -------- ---------
Total interest income 588,202 583,692 4,510 0.8
--------- -------- ---------
INTEREST EXPENSE
Interest on deposits 200,210 225,716 (25,506) (11.3)
Interest on short-term borrowings 39,315 20,362 18,953 93.1
Interest on long-term debt 20,448 34,897 (14,449) (41.4)
--------- -------- ---------
Total interest expense 259,973 280,975 (21,002) (7.5)
--------- -------- ---------
NET INTEREST INCOME 328,229 302,717 25,512 8.4
PROVISION FOR LOSSES ON LOANS 20,365 51,222 (30,857) (60.2)
--------- -------- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOSSES ON LOANS 307,864 251,495 56,369 22.4
--------- -------- ---------
NONINTEREST INCOME
Service charges on deposit accounts 44,273 40,126 4,147 10.3
Mortgage banking revenue 23,506 23,763 (257) (1.1)
Bank card income 7,906 10,706 (2,800) (26.2)
Factoring commissions 7,583 8,108 (525) (6.5)
Trust service income 4,241 6,565 (2,324) (35.4)
Profits and commissions from trading activities 1,094 1,222 (128) (10.5)
Investment securities gains (losses) (1,224) 1,635 (2,859) NM
Other income 35,703 32,658 3,045 9.3
--------- -------- ---------
Total noninterest income 123,082 124,783 (1,701) (1.4)
--------- -------- ---------
NONINTEREST EXPENSE
Salaries and employee benefits 123,369 117,626 5,743 4.9
Net occupancy expense 23,550 19,173 4,377 22.8
Equipment expense 20,024 18,708 1,316 7.0
Goodwill and other intangible amortization 15,040 7,622 7,418 97.3
Other expense 84,016 180,707 (96,691) (53.5)
--------- -------- ---------
Total noninterest expense 265,999 343,836 (77,837) (22.6)
--------- -------- ---------
EARNINGS BEFORE INCOME TAXES 164,947 32,442 132,505 408.4
Applicable income taxes 55,413 18,292 37,121 202.9
--------- -------- ---------
NET EARNINGS $ 109,534 $ 14,150 $ 95,384 674.1
========= ======== =========
NET EARNINGS APPLICABLE TO COMMON SHARES $ 109,101 $ 13,647 $ 95,454 699.5
========= ======== =========
EARNINGS PER COMMON SHARE
Basic $ 0.77 $ 0.10 $ 0.67 665.3
Diluted 0.76 0.10 0.66 657.8
AVERAGE COMMON SHARES OUTSTANDING (IN THOUSANDS)
Basic 142,557 140,739 1,818 1.3
Diluted 144,570 142,406 2,164 1.5
</TABLE>
<PAGE> 4
UNION PLANTERS CORPORATION
SUMMARY OF CONSOLIDATED RESULTS
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
SEPTEMBER 30,
-------------------------
1999 1998 VARIANCE PERCENTAGE
--------- --------- --------- ----------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Interest income $ 588,202 $ 583,692 $ 4,510 0.8 %
Interest expense (259,973) (280,975) 21,002 (7.5)
--------- --------- ---------
NET INTEREST INCOME 328,229 302,717 25,512 8.4
PROVISION FOR LOSSES ON LOANS (20,365) (51,222) 30,857 (60.2)
--------- --------- ---------
NET INTEREST INCOME AFTER PROVISION FOR LOSSES ON LOANS 307,864 251,495 56,369 22.4
NONINTEREST INCOME
Service charges on deposit accounts 44,273 40,126 4,147 10.3
Mortgage banking revenue 23,506 23,763 (257) (1.1)
Bank card income 7,906 10,706 (2,800) (26.2)
Factoring commissions 7,583 8,108 (525) (6.5)
Trust service income 4,241 6,565 (2,324) (35.4)
Profits and commissions from trading activities 1,094 1,222 (128) (10.5)
Other income 34,720 32,661 2,059 6.3
--------- --------- ---------
Total noninterest income 123,323 123,151 172 0.1
--------- --------- ---------
NONINTEREST EXPENSE
Salaries and employee benefits 123,369 117,626 5,743 4.9
Net occupancy expense 23,550 19,173 4,377 22.8
Equipment expense 20,024 18,708 1,316 7.0
Goodwill and other intangibles amortization 15,040 7,622 7,418 97.3
Other expense 83,756 87,676 (3,920) (4.5)
--------- --------- ---------
Total noninterest expense 265,739 250,805 14,934 6.0
--------- --------- ---------
EARNINGS BEFORE MERGER-RELATED CHARGES, OTHER
SIGNIFICANT ITEMS, AND INCOME TAXES 165,448 123,841 41,607 33.6
MERGER-RELATED CHARGES AND OTHER SIGNIFICANT ITEMS
Net gain on sales of branches and other selected assets 983 (3) 986 NM
Investment securities gains (losses) (1,224) 1,635 (2,859) NM
Merger-related expenses -- (85,336) 85,336 NM
Charter consolidation and other charges related to
ongoing integration of operations -- (7,360) 7,360 NM
Other, net (260) (335) 75 (22.4)
--------- --------- ---------
EARNINGS BEFORE INCOME TAXES 164,947 32,442 132,505 408.4
Applicable income taxes (55,413) (18,292) (37,121) 202.9
--------- --------- ---------
NET EARNINGS $ 109,534 $ 14,150 $ 95,384 674.1 %
========= ========= =========
NET EARNINGS $ 109,534 $ 14,150 $ 95,384 674.1 %
MERGER-RELATED CHARGES AND OTHER SIGNIFICANT
ITEMS, NET OF TAXES 1,507 74,326 (72,819) (98.0)
GOODWILL AND OTHER INTANGIBLES AMORTIZATION,
NET OF TAXES 13,941 7,049 6,892 97.8
--------- --------- ---------
EARNINGS BEFORE MERGER-RELATED CHARGES,
OTHER SIGNIFICANT ITEMS, AND GOODWILL AND
OTHER INTANGIBLES AMORTIZATION, NET OF TAXES $ 124,982 $ 95,525 $ 29,457 30.8 %
========= ========= =========
</TABLE>
<PAGE> 5
UNION PLANTERS CORPORATION
CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND INTEREST RATES
<TABLE>
<CAPTION>
THREE MONTHS ENDED SEPTEMBER 30,
-----------------------------------------------------------------------
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 $ 85,019 $ 879 4.10 % $ 28,518 $ 204 2.84 %
Federal funds sold and securities
purchased under agreements to resell 94,312 1,104 4.64 259,734 3,730 5.70
Trading account assets 231,917 3,834 6.56 250,228 3,964 6.28
Investment securities (1) (2)
Taxable securities 6,666,613 105,720 6.29 6,246,353 94,671 6.01
Tax-exempt securities 1,321,480 25,691 7.71 1,195,011 23,155 7.69
------------ ---------- ------------ -----------
Total investment securities 7,988,093 131,411 6.53 7,441,364 117,826 6.28
Loans, net of unearned income (1), (3), (4) 21,467,801 460,577 8.51 20,586,515 465,607 8.97
------------ ---------- ------------ -----------
TOTAL EARNING ASSETS (1), (2), (3), (4) 29,867,142 597,805 7.94 28,566,359 591,331 8.21
---------- -----------
Cash and due from banks 965,325 867,529
Premises and equipment 624,552 547,072
Allowance for losses on loans (361,829) (347,948)
Goodwill and other intangibles 940,256 286,679
Other assets 1,083,535 964,130
------------ ------------
TOTAL ASSETS $ 33,118,981 $ 30,883,821
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Money market accounts $ 4,502,475 31,514 2.78 % $ 3,132,536 31,012 3.93 %
Savings deposits 4,618,517 24,348 2.09 4,500,687 24,220 2.14
Certificates of deposit of
$100,000 and over 2,251,806 28,781 5.07 2,849,249 42,677 5.94
Other time deposits 9,434,587 115,567 4.86 9,487,637 127,807 5.34
Short-term borrowings
Federal funds purchased and securities sold under
agreements to repurchase 2,040,452 24,261 4.72 1,542,373 19,630 5.05
Other 1,126,624 15,054 5.30 69,411 732 4.18
Long-term debt
Federal Home Loan Bank advances 204,522 2,682 5.20 933,519 12,703 5.40
Subordinated capital notes 477,066 7,783 6.47 478,433 7,722 6.40
Medium-term bank notes 91,304 1,537 6.68 121,304 2,020 6.61
Trust preferred securities 199,031 4,128 8.23 198,996 4,128 8.23
Other 197,842 4,318 8.66 364,565 8,324 9.06
------------ ---------- ------------ -----------
TOTAL INTEREST-BEARING LIABILITIES 25,144,226 259,973 4.10 23,678,710 280,975 4.71
Noninterest-bearing demand deposits 4,262,360 3,530,530
------------ ---------- ------------ -----------
TOTAL SOURCES OF FUNDS 29,406,586 259,973 27,209,240 280,975
---------- -----------
Other liabilities 691,412 710,419
Shareholders' equity
Preferred stock 21,945 26,565
Common equity 2,999,038 2,937,597
------------ ------------
Total shareholders' equity 3,020,983 2,964,162
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 33,118,981 $ 30,883,821
============ ============
NET INTEREST INCOME (1) $ 337,832 $ 310,356
========== ===========
INTEREST RATE SPREAD (1) 3.84 % 3.50 %
==== ====
NET INTEREST MARGIN (1) 4.49 % 4.31 %
==== ====
TAXABLE-EQUIVALENT ADJUSTMENTS
Loans $ 1,393 $ 1,269
Securities 8,210 6,370
========== ===========
Total $ 9,603 $ 7,639
========== ===========
</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 CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30, VARIANCE
------------------------------ -----------------------------
1999 1998 DOLLAR PERCENTAGE
------------ ------------ ------------ ----------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 1,300,762 $ 1,388,301 $ (87,539) (6.3)%
Interest on investment securities
Taxable 319,818 274,309 45,509 16.6
Tax-exempt 52,574 45,709 6,865 15.0
Interest on deposits at financial institutions 2,316 1,231 1,085 88.1
Interest on federal funds sold and securities
purchased under agreements to resell 2,936 15,398 (12,462) (80.9)
Interest on trading account assets 11,363 9,787 1,576 16.1
Interest on loans held for resale 18,319 9,912 8,407 84.8
------------ ------------ -----------
Total interest income 1,708,088 1,744,647 (36,559) (2.1)
------------ ------------ -----------
INTEREST EXPENSE
Interest on deposits 619,510 668,154 (48,644) (7.3)
Interest on short-term borrowings 84,657 58,475 26,182 44.8
Interest on long-term debt 68,406 104,725 (36,319) (34.7)
------------ ------------ -----------
Total interest expense 772,573 831,354 (58,781) (7.1)
------------ ------------ -----------
NET INTEREST INCOME 935,515 913,293 22,222 2.4
PROVISION FOR LOSSES ON LOANS 54,384 127,472 (73,088) (57.3)
------------ ------------ -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOSSES ON LOANS 881,131 785,821 95,310 12.1
------------ ------------ -----------
NONINTEREST INCOME
Service charges on deposit accounts 125,663 115,636 10,027 8.7
Mortgage banking revenue 75,208 67,032 8,176 12.2
Bank card income 18,949 31,124 (12,175) (39.1)
Factoring commissions 22,014 22,849 (835) (3.7)
Trust service income 17,955 19,296 (1,341) (6.9)
Profits and commissions from trading activities 2,958 4,653 (1,695) (36.4)
Investment securities gains (losses) 1,968 (15,095) 17,063 NM
Other income 125,337 125,472 (135) (0.1)
------------ ------------ -----------
Total noninterest income 390,052 370,967 19,085 5.1
------------ ------------ -----------
NONINTEREST EXPENSE
Salaries and employee benefits 376,470 347,893 28,577 8.2
Net occupancy expense 65,461 55,698 9,763 17.5
Equipment expense 59,262 53,135 6,127 11.5
Goodwill and other intangibles amortization 40,188 20,084 20,104 100.1
Other expense 257,866 361,147 (103,281) (28.6)
------------ ------------ -----------
Total noninterest expense 799,247 837,957 (38,710) (4.6)
------------ ------------ -----------
EARNINGS BEFORE INCOME TAXES 471,936 318,831 153,105 48.0
Applicable income taxes 159,288 120,816 38,472 31.8
------------ ------------ -----------
NET EARNINGS $ 312,648 $ 198,015 $ 114,633 57.9
============ ============ ===========
NET EARNINGS APPLICABLE TO COMMON SHARES $ 311,311 $ 196,411 $ 114,900 58.5
============ ============ ===========
EARNINGS PER COMMON SHARE
Basic $ 2.19 $ 1.42 $ 0.76 53.8
Diluted 2.16 1.39 0.77 55.1
AVERAGE COMMON SHARES OUTSTANDING (IN THOUSANDS)
Basic 142,464 138,267 4,197 3.0
Diluted 144,680 142,714 1,966 1.4
</TABLE>
<PAGE> 7
UNION PLANTERS CORPORATION
SUMMARY OF CONSOLIDATED RESULTS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
-----------------------------
1999 1998 VARIANCE PERCENTAGE
----------- ----------- ----------- ----------
(Dollars in thousands)
<S> <C> <C> <C> <C>
Interest income $ 1,708,088 $ 1,744,647 $ (36,559) (2.1)%
Interest expense (772,573) (831,354) 58,781 (7.1)
----------- ----------- -----------
NET INTEREST INCOME 935,515 913,293 22,222 2.4
PROVISION FOR LOSSES ON LOANS (54,384) (127,472) 73,088 (57.3)
----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOSSES ON LOANS 881,131 785,821 95,310 12.1
NONINTEREST INCOME
Service charges on deposit accounts 125,663 115,636 10,027 8.7
Mortgage banking revenue 75,208 67,032 8,176 12.2
Bank card income 18,949 31,124 (12,175) (39.1)
Factoring commissions 22,014 22,849 (835) (3.7)
Trust service income 17,955 19,296 (1,341) (6.9)
Profits and commissions from trading activities 2,958 4,653 (1,695) (36.4)
Other income 105,377 97,675 7,702 7.9
----------- ----------- -----------
Total noninterest income 368,124 358,265 9,859 2.8
----------- ----------- -----------
NONINTEREST EXPENSE
Salaries and employee benefits 376,470 347,893 28,577 8.2
Net occupancy expense 65,461 55,698 9,763 17.5
Equipment expense 59,262 53,135 6,127 11.5
Goodwill and other intangibles amortization 40,188 20,084 20,104 100.1
Other expense 257,345 251,090 6,255 2.5
----------- ----------- -----------
Total noninterest expense 798,726 727,900 70,826 9.7
----------- ----------- -----------
EARNINGS BEFORE MERGER-RELATED CHARGES, OTHER
SIGNIFICANT ITEMS, AND INCOME TAXES 450,529 416,186 34,343 8.3
MERGER-RELATED CHARGES AND OTHER SIGNIFICANT ITEMS
Gain on sale of the credit card portfolio 3,268 -- 3,268 NM
Gain on securitization and sale of FHA/VA loans 5,317 19,605 (14,288) (72.9)
Gain on sale of ARM loans 5,041 -- 5,041 NM
Gain on sale of corporate trust business 2,417 -- 2,417 NM
Net gain on sales of branches and other selected assets 3,917 8,187 (4,270) (52.2)
Investment securities gains (losses) 1,968 (15,095) 17,063 NM
Merger-related expenses -- (103,671) 103,671 NM
Charter consolidation and other charges related to
ongoing integration of operations -- (8,055) 8,055 NM
Other, net (521) 1,674 (2,195) NM
----------- ----------- -----------
EARNINGS BEFORE INCOME TAXES 471,936 318,831 153,105 48.0
Applicable income taxes (159,288) (120,816) (38,472) 31.8
=========== =========== ===========
NET EARNINGS $ 312,648 $ 198,015 $ 114,633 57.9 %
=========== =========== ===========
NET EARNINGS $ 312,648 $ 198,015 $ 114,633 57.9 %
MERGER-RELATED CHARGES AND OTHER SIGNIFICANT
ITEMS, NET OF TAXES (13,080) 80,929 (94,009) NM
GOODWILL AND OTHER INTANGIBLES AMORTIZATION,
NET OF TAXES 34,498 18,889 15,609 82.6
----------- ----------- -----------
EARNINGS BEFORE MERGER-RELATED CHARGES,
OTHER SIGNIFICANT ITEMS, AND GOODWILL AND
OTHER INTANGIBLES AMORTIZATION, NET OF TAXES $ 334,066 $ 297,833 $ 36,233 12.2 %
=========== =========== ===========
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------------------------------------------
1999 1998
-------------------------------------------------------------------
INTEREST FTE INTEREST FTE
AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/
BALANCE EXPENSE RATE BALANCE EXPENSE RATE
------------ ----------------- ------------ -----------------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Interest-bearing deposits at
financial institutions $ 78,904 $ 2,316 3.92 % $ 34,403 $ 1,231 4.78 %
Federal funds sold and securities
purchased under agreements to resell 82,131 2,936 4.78 370,991 15,398 5.55
Trading account assets 242,300 11,363 6.27 203,998 9,787 6.41
Investment securities (1) (2)
Taxable securities 6,941,227 319,818 6.16 5,870,966 274,309 6.25
Tax-exempt securities 1,321,441 77,428 7.83 1,071,608 65,751 8.20
---------- --------- ------------ ----------
Total investment securities 8,262,668 397,246 6.43 6,942,574 340,060 6.55
Loans, net of unearned income (1), (3), (4) 20,949,727 1,322,882 8.44 20,616,015 1,402,700 9.10
---------- --------- ------------ ----------
TOTAL EARNING ASSETS (1), (2), (3), (4) 29,615,730 1,736,743 7.84 28,167,981 1,769,176 8.40
--------- ----------
Cash and due from banks 1,018,114 921,559
Premises and equipment 591,106 542,312
Allowance for losses on loans (351,376) (336,950)
Goodwill and other intangibles 718,163 252,443
Other assets 1,230,349 979,982
------------ ------------
TOTAL ASSETS $ 32,822,086 $ 30,527,327
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Money market accounts $ 4,133,379 94,241 3.05 % $ 3,139,526 91,190 3.88 %
Savings deposits 4,818,180 70,413 1.95 4,377,164 72,132 2.20
Certificates of deposit of
$100,000 and over 2,342,882 92,277 5.27 2,842,473 124,668 5.86
Other time deposits 9,712,950 362,579 4.99 9,397,339 380,164 5.41
Short-term borrowings
Federal funds purchased and securities sold under
agreements to repurchase 1,951,404 66,002 4.52 1,433,903 54,571 5.09
Other 474,220 18,655 5.26 75,832 3,904 6.88
Long-term debt
Federal Home Loan Bank advances 335,014 12,633 5.04 1,063,988 41,521 5.22
Subordinated capital notes 479,200 23,337 6.51 398,862 20,338 6.82
Medium-term bank notes 100,385 5,060 6.74 130,384 6,492 6.66
Trust preferred securities 199,022 12,383 8.32 198,987 12,384 8.32
Other 253,021 14,993 7.92 345,363 23,990 9.29
------------ ---------- ------------ ----------
TOTAL INTEREST-BEARING LIABILITIES 24,799,657 772,573 4.17 23,403,821 831,354 4.75
Noninterest-bearing demand deposits 4,347,165 -- 3,507,533 --
------------ ---------- ------------ ----------
TOTAL SOURCES OF FUNDS 29,146,822 772,573 26,911,354 831,354
---------- ----------
Other liabilities 682,362 695,743
Shareholders' equity
Preferred stock 22,609 34,380
Common equity 2,970,293 2,885,850
------------ ------------
Total shareholders' equity 2,992,902 2,920,230
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 32,822,086 $ 30,527,327
============ ============
NET INTEREST INCOME (1) $ 964,170 $ 937,822
========== ==========
INTEREST RATE SPREAD (1) 3.67 % 3.65 %
==== ====
NET INTEREST MARGIN (1) 4.35 % 4.45 %
==== ====
TAXABLE-EQUIVALENT ADJUSTMENTS
Loans $ 3,801 $ 4,487
Securities 24,854 20,042
---------- ----------
Total $ 28,655 $ 24,529
========== ==========
</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.
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