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EXHIBIT 99.1
Union Planters Corporation Press Release
dated October 19, 2000 announcing operating results for
the three and nine months ended September 30, 2000
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OCTOBER 19, 2000
UNION PLANTERS ANNOUNCES THIRD QUARTER CASH OPERATING
EARNINGS OF $116.5 MILLION, OR $.86 PER DILUTED SHARE
Memphis, TN -- Union Planters Corporation (NYSE: UPC) today announced
earnings for the third quarter and nine months ended September 30, 2000.
Cash operating earnings, which exclude the amortization of intangibles
and nonoperating items, were $116.5 million, or $.86 per diluted share,
essentially unchanged on a per share basis from cash operating earnings a year
earlier. These earnings provided a return on average assets of 1.35% and a
return on average common equity of 16.83%.
For the first nine months of 2000, Union Planters' cash operating
earnings were $344.9 million, or $2.52 per diluted share, up 8% from the $2.33
reported for the same period last year. These earnings provided a return on
average assets and average common equity of 1.36% and 16.47%, respectively.
Net earnings for the third quarter of 2000 were $101.6 million, or $.75
per diluted share, compared to $.76 earned for the same period in 1999. This
represented a return on average assets of 1.18% and a return on average common
equity of 14.67%. Net earnings for the nine months ended September 30, 2000 were
$305.8 million, or $2.24 per diluted share, an increase of 4% from the $2.16
reported for the same period in 2000.
"We had a number of very positive factors this quarter, especially in
the growth of our residential real estate loans" said Jackson W. Moore, Chairman
and Chief Executive Officer. "Our net interest margin, which represents
approximately 70% of our total revenues, continues to be squeezed by the high
cost of funding, however we continued to grow our
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operating earnings by focusing on the fundamentals. In addition to good loan
growth, we had strong growth in noninterest income, we have maintained sound
credit quality, and our operating expenses continue to decline. We are convinced
that we will be positioned to benefit favorably once our economy returns to a
more normal interest rate environment."
NET INTEREST INCOME
Fully taxable-equivalent net interest income declined $25.1 million to
$312.7 million for the third quarter of 2000. The Company experienced strong
average loan growth (12% excluding FHA/VA) from the third quarter of 1999;
however, the impact of higher funding costs continued to compress the net
interest margin. The net interest margin was 3.98% for the third quarter of 2000
compared to 4.49% for the same period last year and 4.19% for the second quarter
of 2000. Net interest income was $320.4 million for the second quarter of 2000.
Average loans (excluding FHA/VA) were $23.4 billion for the quarter,
primarily reflecting a 14% increase in residential real estate loans. This
growth is net of a decrease of approximately $294 million related to the
securitization and sale of residential real estate loans and the sale of
asset-based loans of a subsidiary during the quarter. Average deposits were
$23.4 billion for the quarter, down from $25.1 billion for the same period last
year and up from $23.2 billion for the second quarter of 2000. The decline in
deposits from last year is due to the repricing of higher cost deposits acquired
in various acquisitions. This decline has leveled off and the Company has
experienced a slight growth in average deposits during the third quarter.
NONINTEREST INCOME
Noninterest income increased to $147.3 million for the third quarter of
2000 reflecting a $24.3 million, or 20%, increase from the same period last
year. Noninterest income increased $17.6 million, or
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14%, net of nonoperating gains of $5.5 million ($3.3 million after tax) related
to the sale and securitization of loans in the third quarter of 2000 and net of
investment securities losses of $1.2 million ($.7 million after tax) for the
third quarter of 1999.
The increase in operating noninterest income is attributable primarily
to a $6.0 million increase in net revenues from Strategic Outsourcing, Inc.
(SOI), a subsidiary that provides professional employment organizational
services, and a $4.6 million increase in mortgage banking revenues. Other
noninterest income categories increasing for the quarter were service charges on
deposit accounts, trust service income, and bankcard income (merchant
servicing).
Operating noninterest income increased $8.2 million compared to the
second quarter of 2000. The increase is attributable to a $4.5 million increase
in revenues from SOI, a $3.2 million increase in mortgage banking revenues, and
a $2.8 million increase in service charges on deposit accounts.
EFFICIENCY
Noninterest expense was $279.1 million for the third quarter of 2000,
an increase of $13.1 million from the same period last year. Net of a
nonoperating charge of $11.5 million ($4.8 million after tax) related to the
settlement of executive contract obligations, noninterest expense increased $1.9
million, or .7%, from the same period last year. The increase was attributable
primarily to the SOI acquisition, which increased third quarter expenses
approximately $4.0 million. Partially offsetting the increase was a decrease in
salaries and employee benefits expense of $3.5 million, excluding the impact of
SOI.
Compared to the second quarter of 2000, noninterest expense decreased
$8.3 million. The decrease was attributable to decreases in
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salaries and employee benefit expenses and advertising and promotion expenses.
The operating efficiency ratio for the third quarter of 2000 was
55.31%, which compared to 54.25% for the same period last year and compared to
57.27% for the second quarter of 2000.
CREDIT QUALITY
The provision for losses on loans for the third quarter of 2000 was
$19.9 million, or .34% of average loans, compared to $20.4 million and $19.7
million for the third quarter of 1999 and second quarter of 2000, respectively.
Net charge-offs as a percentage of average loans were .40% for the third quarter
of 2000, a decrease from .45% for the third quarter of 1999 and an increase from
.35% for the second quarter of 2000.
Nonperforming assets were $176.5 million, or .76% of loans and
foreclosed properties, compared to $182.6 million, or .88% of loans and
foreclosed properties, a year earlier and $169.4 million, or .74% of loans and
foreclosed properties, at June 30, 2000.
The allowance for losses on loans totaled $340.5 million at September
30, 2000, equal to 1.47% of loans and 252% of
nonperforming loans.
CAPITAL STRENGTH
Total shareholders' equity was $2.8 billion at September 2000. This
represented 8.17% of period-end assets of $34.3 billion. The leverage ratio was
6.36%.
SHARE PURCHASE PLAN
In February the Company completed the purchase of 7.1 million shares
under a share purchase plan approved by the Board of Directors in August 1999.
On February 17, 2000, the Board of Directors authorized the purchase of an
additional 7.1 million shares. To date, 1,610,000 shares have been purchased.
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THE COMPANY
Union Planters Corporation, headquartered in Memphis, Tennessee, is a
multi-state bank holding company with 1,056 ATMs and 863 banking offices in
Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana,
Mississippi, Missouri, Tennessee, and Texas. At June 30, 2000 Union Planters
Corporation was the 27th largest bank holding company in the United States based
on total assets. 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.
This press release contains forward looking statements relating to
management's expectations for the year 2000. 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 business and prospects is contained in Union Planters' filings
with the Securities and Exchange Commission, specifically "Risk Factors" in the
1999 Annual Report on Form 10-K and "Cautionary Statement Regarding
Forward-Looking Information" in Union Planters' 1999 Annual Report to
Shareholders.
-O0O-
FOR ADDITIONAL INFORMATION, INCLUDING SUPPLEMENTAL FINANCIAL INFORMATION FOR THE
THIRD QUARTER OF 2000, VISIT UNION PLANTERS' WEB SITE AT
http://www.unionplanters.com OR CONTACT:
BOBBY L. DOXEY
SENIOR EXECUTIVE VICE PRESIDENT
AND CHIEF FINANCIAL OFFICER
(901) 580-4565
[TWO PAGE FINANCIAL ATTACHMENT FOLLOWS]
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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,
2000 1999 2000 1999
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INCOME STATEMENT AMOUNTS
Net interest income
Actual $ 304,008 $ 328,229 $ 930,110 $ 935,515
Taxable-equivalent basis 312,728 337,832 956,987 964,170
Provision for losses on loans 19,939 20,365 56,941 54,384
Noninterest income
Investment securities gains (losses) -- (1,224) 77 1,968
Other 147,345 124,306 413,337 388,084
Noninterest expense 279,070 265,999 826,660 799,247
Earnings before income taxes 152,344 164,947 459,923 471,936
Income taxes 50,763 55,413 154,120 159,288
NET EARNINGS 101,581 109,534 305,803 312,648
NET EARNINGS APPLICABLE TO COMMON SHARES 101,182 109,101 304,590 311,311
OPERATING EARNINGS (1) 103,039 110,441 304,768 301,961
CASH OPERATING EARNINGS (2) 116,476 124,382 344,917 336,459
PER COMMON SHARE DATA
Net earnings
- basic $ .75 $ .77 $ 2.25 $ 2.19
- diluted .75 .76 2.24 2.16
Operating earnings (1)
- basic .76 .77 2.24 2.11
- diluted .76 .76 2.23 2.09
Cash operating earnings (2)
- basic .86 .87 2.54 2.35
- diluted .86 .86 2.52 2.33
Cash dividends .50 .50 1.50 1.50
Book value 20.61 20.67
BALANCES AT END OF PERIOD
Loans, excluding FHA/VA government-insured/guaranteed loans $ 23,143,009 $ 20,827,516
Allowance for losses on loans 340,453 358,721
Nonperforming assets
Nonaccrual loans 133,434 147,273
Restructured loans 1,524 2,147
Foreclosed properties 41,574 33,185
Loans 90 days past due 91,511 80,205
FHA/VA government-insured/guaranteed loans 306,421 538,398
Nonaccrual 4,212 7,750
90 days past due 145,365 261,681
Available for sale investment securities
Amortized cost 7,062,938 7,966,492
Fair value 6,920,432 7,845,191
Unrealized loss, net of taxes (90,321) (76,789)
Total assets 34,262,589 33,154,492
Total deposits 23,083,674 24,391,453
Total shareholders' equity 2,797,546 2,951,929
Total common equity 2,777,604 2,930,211
Tier 1 capital 2,120,373 2,260,447
</TABLE>
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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,
2000 1999 2000 1999
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AVERAGE BALANCES
Loans, excluding FHA/VA government-
insured/guaranteed loans $ 23,422,144 $ 20,899,579 $ 22,519,613 $ 20,328,484
FHA/VA government-insured/
guaranteed loans 377,118 568,222 446,375 621,243
Investment securities 7,091,965 7,988,093 7,375,443 8,262,668
Earning assets 31,232,634 29,867,142 30,682,039 29,615,730
Total assets 34,205,963 33,118,981 33,775,630 32,822,086
Total deposits 23,367,132 25,069,745 23,287,088 25,354,556
Interest-bearing liabilities 26,750,564 25,144,226 26,299,399 24,799,657
Demand deposits 3,996,811 4,262,360 4,027,572 4,347,165
Shareholders' equity 2,763,610 3,020,983 2,807,628 2,992,902
Common equity 2,743,638 2,999,038 2,787,251 2,970,293
OTHER SUPPLEMENTAL INFORMATION
Net earnings
Return on average assets 1.18% 1.31% 1.21% 1.27%
Return on average common equity 14.67 14.43 14.60 14.01
Cash operating earnings (2)
Return on average assets 1.35 1.49 1.36 1.37
Return on average common equity 16.83 16.40 16.47 15.08
Return on average tangible assets 1.39 1.53 1.40 1.40
Return on average tangible common equity 26.15 23.89 25.25 19.89
Allowance for losses on loans to loans (3) 1.47 1.72
Nonperforming loans to loans (3) .58 .72
Nonperforming assets to loans and
foreclosed properties (3) .76 .88
Net charge-offs of loans $ 23,469 $ 23,845 $ 56,913 $ 60,214
Net charge-offs as a percentage of
average loans (3) .40% .45% .34% .40%
Common shares outstanding (end of
period, in thousands) 134,757 141,782
Weighted average shares outstanding
(in thousands)
Basic 134,678 142,557 135,337 142,464
Diluted 136,130 144,570 136,821 144,680
Yield on earning assets (taxable-equivalent
basis) 8.38% 7.94% 8.29% 7.84%
Rate on interest-bearing liabilities 5.13 4.10 4.81 4.17
Interest rate spread (taxable-equivalent
basis) 3.25 3.84 3.48 3.67
Net interest income as a percentage of
average earning assets (taxable-equivalent
basis) 3.98 4.49 4.17 4.35
Shareholders' equity to total assets 8.17 8.90
Leverage ratio 6.36 7.03
</TABLE>
(1) Earnings before nonoperating items, net of taxes
(2) Earnings before goodwill and other intangibles amortization, and
nonoperating items, net of taxes
(3) Excludes FHA/VA government-insured/guaranteed loans
