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EXHIBIT 99.1
Union Planters Corporation Press Release
dated July 20, 2000 announcing operating results for
the three and six months ended June 30, 2000
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JULY 20, 2000
UNION PLANTERS ANNOUNCES EARNINGS
Memphis, TN -- Union Planters Corporation (NYSE: UPC) today announced
earnings for the quarter and six months ending June 30, 2000.
Cash operating earnings were $113.8 million, or $.84 per diluted share,
a 12% increase over the $.75 reported for the same period of last year,
providing a return on average assets of 1.35% and a return on average common
equity of 16.30%. For the six-month period cash operating earnings were $228.4
million, or $1.67 per diluted share, a 14% increase over the $1.47 reported for
the same period last year. For both periods in 2000, the return on average
tangible common equity was 24.8%.
Net earnings for the second quarter of 2000 were $102.9 million, or
$.76 per diluted share, a 4% increase over the $.73 earned for the same period
in 1999. This represented a return on average assets of 1.22% and a return on
average common equity of 14.73%. Net earnings for the first half of 2000 were
$204.2 million, or $1.49 per diluted share, up 6% from the $1.40 reported for
the same period in 1999.
Benjamin W. Rawlins, Jr., Chairman and Chief Executive Officer, said
"We are pleased with the 11% growth in average loans from the second quarter of
last year but the current rate environment remains very difficult. The solid
growth in loans resulted in a 17% increase in interest income from loans, but
increased deposit and funding costs resulting from the six Federal Funds rate
increases since mid 1999, essentially offset the growth in interest income.
Credit quality, always a source of concern in a rising rate environment, remains
sound. On an operating basis, noninterest income was up year-to-year even in a
very
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difficult mortgage market and, excluding the impact of acquisitions, noninterest
expenses continued to decrease. We are pleased with the solid performance for
the quarter, and believe that we will benefit substantially when monetary policy
results in a more normal rate environment."
Net interest income of $311.4 million for the second quarter of 2000
was essentially flat from the second quarter of 1999. The net interest margin
for the second quarter was 4.19% compared to 4.35% for the second quarter last
year. The net interest margin was positively affected by the growth of average
earning assets (primarily an 11% growth in loans, excluding FHA/VA loans) which
was offset by higher funding costs. Net interest income was $314.7 million for
the first quarter of 2000.
The provision for losses on loans for the second quarter of 2000 was
$19.7 million, or .35% of average loans. This compares to $17.7 million and
$17.3 million, respectively, for the second quarter of 1999 and first quarter of
2000.
At June 30, 2000 the allowance for losses on loans was $345.9 million,
or 1.51% of loans and 267% of nonperforming loans. Nonperforming assets at June
30, 2000 declined to $169.4 million, or .74% of loans and foreclosed properties
compared to $226.7 million, or 1.15% of loans and foreclosed properties at June
30, 1999, and $172.4 million, or .79% of loans and foreclosed properties, at
March 31, 2000. Net charge-offs as a percentage of average loans were .35% for
the second quarter of 2000, a decrease from .44% for the second quarter of 1999
and an increase from .26% for the first quarter of 2000.
Excluding the impact of the items discussed below for both years,
noninterest income increased $4.5 million in the second quarter of 2000 to
$133.7 million. This compares to $129.2 million for the same period
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last year. The increase is attributable primarily to service charges on deposit
accounts, ATM transaction fees, and bank card income (merchant servicing).
Compared to the first quarter of 2000, noninterest income increased $6.1 million
primarily due to increases in service charges on deposit accounts, mortgage
banking revenues, and bank card income (merchant servicing).
The second quarter of 2000 included $4.8 million ($2.4 million after
tax) related to the reversion of excess assets of a pension plan of an acquired
entity. The second quarter of 1999 included gains, aggregating $11.5 million
($7.0 million after tax), from the sale of certain ARM loans, investment
securities, the sale of Union Planters' corporate trust business, and the sale
of the remaining portion of the credit card portfolio.
Noninterest expenses were $275.9 million for the second quarter of 2000
compared to $275.0 million for the second quarter of 1999. Excluding the impact
of purchase acquisitions, noninterest expenses declined in the second quarter of
2000 primarily due to decreases in personnel related expenses, occupancy and
equipment expenses, stationery and supplies, and other miscellaneous expenses.
Compared to the first quarter of 2000, noninterest expenses increased $4.2
million, or 2%. The increase was primarily due to an increase in advertising and
promotion expenses.
Union Planters Corporation ended the quarter with total assets of $34.2
billion, total loans of $23.3 billion, and total deposits of $23.3 billion.
Shareholders' equity was $2.7 billion and the shareholders' equity to total
assets and leverage ratios were 7.88% and 6.29%, respectively.
The Company completed in February 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
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purchase of an additional 7.1 million shares. To date, 1,609,000 shares have
been purchased.
Union Planters Corporation, headquartered in Memphis, Tennessee, is a
multi-state bank holding company with 1,061 ATMs and 866 banking offices in
Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana,
Mississippi, Missouri, Tennessee, and Texas. Union Planters Corporation was the
27th largest bank holding company in the United States based on total assets at
December 31, 1999. 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.
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FOR ADDITIONAL INFORMATION, INCLUDING SUPPLEMENTAL FINANCIAL INFORMATION FOR THE
SECOND 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
INCOME STATEMENT AMOUNTS
Net interest income
Actual $ 311,352 $ 311,589 $ 626,102 $ 607,286
Taxable-equivalent basis 320,388 321,195 644,259 626,338
Provision for losses on loans 19,699 17,740 37,002 34,019
Noninterest income
Investment securities gains 77 3,181 77 3,192
Other 138,423 137,535 265,992 263,778
Noninterest expense 275,885 275,009 547,590 533,248
Earnings before income taxes 154,268 159,556 307,579 306,989
Income taxes 51,383 53,792 103,357 103,875
NET EARNINGS 102,885 105,764 204,222 203,114
NET EARNINGS APPLICABLE TO COMMON SHARES 102,483 105,318 203,408 202,210
OPERATING EARNINGS(1) 100,392 98,888 201,729 191,520
CASH OPERATING EARNINGS(2) 113,782 108,881 228,441 212,077
PER COMMON SHARE DATA
Net earnings
- basic $ .76 $ .74 $ 1.50 $ 1.42
- diluted .76 .73 1.49 1.40
Operating earnings(1)
- basic .74 .69 1.48 1.34
- diluted .74 .68 1.47 1.32
Cash operating earnings(2)
- basic .84 .76 1.68 1.48
- diluted .84 .75 1.67 1.47
Cash dividends .50 .50 1.00 1.00
Book value 19.88 20.68
BALANCES AT END OF PERIOD
Loans, excluding FHA/VA government-insured/guaranteed loans $ 22,880,375 $ 19,633,066
Allowance for losses on loans 345,858 340,586
Nonperforming assets
Nonaccrual loans 127,685 196,749
Restructured loans 1,680 1,655
Foreclosed properties 40,081 28,266
Loans 90 days past due 78,843 25,858
FHA/VA government-insured/guaranteed loans 447,815 598,046
Nonaccrual 4,408 7,391
90 days past due 166,231 306,238
Available for sale investment securities
Amortized cost 7,192,127 8,035,376
Fair value 6,954,593 7,939,035
Unrealized loss, net of taxes (150,354) (61,571)
Total assets 34,226,813 32,260,172
Total deposits 23,290,355 24,807,641
Total shareholders' equity 2,698,670 2,973,072
Total common equity 2,678,687 2,950,938
Tier 1 capital 2,067,614 2,515,225
</TABLE>
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UNION PLANTERS CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
AVERAGE BALANCES
Loans, excluding FHA/VA government-
insured/guaranteed loans $ 22,595,309 $ 20,308,473 $ 22,063,388 $ 20,038,204
FHA/VA government-insured/
guaranteed loans 463,535 607,950 481,385 648,193
Investment securities 7,392,264 8,357,425 7,518,739 8,402,231
Earning assets 30,759,224 29,637,625 30,403,716 29,487,940
Total assets 33,863,383 32,988,798 33,558,099 32,671,179
Total deposits 23,206,956 25,708,599 23,246,626 25,499,322
Interest-bearing liabilities 26,361,429 24,819,027 26,071,338 24,624,517
Demand deposits 4,058,827 4,476,077 4,043,121 4,390,270
Shareholders' equity 2,817,883 3,000,107 2,829,879 2,978,629
Common equity 2,797,485 2,977,401 2,809,297 2,955,682
OTHER SUPPLEMENTAL INFORMATION
Net earnings
Return on average assets 1.22% 1.29% 1.22% 1.25%
Return on average common equity 14.73 14.19 14.56 13.80
Cash operating earnings(2)
Return on average assets 1.35 1.32 1.37 1.31
Return on average common equity 16.30 14.61 16.29 14.41
Return on average tangible assets 1.39 1.35 1.41 1.33
Return on average tangible common equity 24.85 19.25 24.81 18.12
Allowance for losses on loans to loans(3) 1.51 1.73
Nonperforming loans to loans(3) .57 1.01
Nonperforming assets to loans and
foreclosed properties(3) .74 1.15
Net charge-offs of loans $ 19,662 $ 22,165 $ 33,444 $ 36,369
Net charge-offs as a percentage of
average loans(3) .35% .44% .30% .37%
Common shares outstanding (end of
period, in thousands) 134,732 142,713
Weighted average shares outstanding
(in thousands)
Basic 134,794 142,574 135,670 142,417
Diluted 136,268 144,798 137,170 144,737
Yield on earning assets (taxable-equivalent
basis) 8.31% 7.78% 8.24% 7.79%
Rate on interest-bearing liabilities 4.81 4.10 4.64 4.20
Interest rate spread (taxable-equivalent
basis) 3.50 3.68 3.60 3.59
Net interest income as a percentage of
average earning assets (taxable-equivalent
basis) 4.19 4.35 4.26 4.28
Shareholders' equity to total assets 7.88 9.22
Leverage ratio 6.29 7.79
</TABLE>
(1) Earnings before other significant items, net of taxes
(2) Earnings before goodwill and other intangibles amortization, and other
significant items, net of taxes
(3) Excludes FHA/VA government-insured/guaranteed loans
