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EXHIBIT 99.1
Union Planters Corporation Press Release
dated January 18, 2001 announcing operating results for
the three and twelve months ended December 31, 2000
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[LOGO]
JANUARY 18, 2001
UNION PLANTERS CORPORATION ANNOUNCES RECORD
CASH OPERATING EARNINGS OF $461.6 MILLION
Memphis, TN -- Union Planters Corporation (NYSE: UPC) today reported
cash operating earnings for the fourth quarter of 2000 of $116.6 million, or
$.86 per diluted share, an increase of 14.7% over the $.75 per diluted share for
the same period in 1999. Cash operating earnings exclude goodwill and other
intangibles amortization and nonoperating items, net of taxes. Net earnings for
the quarter were $103.5 million, or $.76 per diluted share, an increase of 10.1%
compared to $.69 per diluted share for the same period in 1999.
For the full year 2000, cash operating earnings were a record $461.6
million, or $3.38 per diluted share, an increase of 9.7% from the $3.08 per
diluted share reported for 1999. These earnings provided a return on average
assets of 1.36%, a return on average common equity of 16.50%, and a return on
average tangible common equity of 25.26%. Net earnings for 2000 were $409.3
million, or $3.00 per diluted share, an increase of 5.3% over the $2.85 per
diluted share reported for 1999.
"We are pleased to report a record level of earnings per share in
2000," said Jackson W. Moore, Chairman and Chief Executive Officer. "In a year
marked by rising interest rates, competitive pricing for bank deposits, and a
slowing economy, we delivered solid financial performance and made good progress
in several areas. While our net interest margin was down slightly from last
quarter, we expect the recent reduction in interest rates to favorably impact
our margin over the next several quarters. We continue to generate impressive
loan growth while maintaining sound credit
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quality. Our emphasis on noninterest income continues to produce positive
results and our operating efficiency ratio for 2000 continued to show
improvement. We are focused on what is best for our shareholders, employees,
customers, and the communities we serve. Our management team is excited and
enthusiastic about our future."
NET INTEREST INCOME
Net interest income on a fully taxable-equivalent basis for the fourth
quarter of 2000 was $309.8 million, down slightly from the $312.7 million posted
in the third quarter of 2000 and down 6.2% from the fourth quarter of 1999. For
the full year, net interest income was $1.267 billion, down 2.1% from 1999. The
quarterly and full-year declines are attributable to the Company being
liability-sensitive in an economic environment in which the Federal Funds rate
increased from 4.75% in January 1999 to 6.50% at December 31, 2000. These rate
increases are fully embedded in the cost of funds and it is anticipated the 50
basis point rate reduction on January 3, 2001 by the Federal Reserve will have a
favorable impact over the next several quarters.
Average loans (excluding FHA/VA loans) were $22.9 billion for the year
compared to $20.5 billion for 1999. Excluding loan securitizations and sales in
2000 totaling approximately $776 million, average loans increased approximately
12.7% over last year. The key product drivers of this growth continues to be
one-to-four family residential real estate and home equity loans, the total of
which increased 14.1% from December 31, 1999 to $7.0 billion at December 31,
2000. Additionally, commercial, financial and agricultural loans, which are
largely to small and middle market customers, increased 11.5% to $5.4 billion at
December 31, 2000.
Average deposits were $23.2 billion for the year, down from $25.0
billion for last year. Average deposits for the fourth quarter of 2000 were
$23.0 billion. The decline in deposits from last year is due primarily to
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the repricing of higher cost deposits acquired in various acquisitions,
reductions in public deposits, and a very competitive pricing environment.
NONINTEREST INCOME
Noninterest income, net of nonoperating items, for the fourth quarter
of 2000 was $144.6 million, an increase of $22.2 million, or 18.1% from the
fourth quarter of 1999. For the full year, operating noninterest income
increased $53.3 million, or 10.8%.
The strong growth in operating noninterest income for the year came
from several products. The largest increase was the result of a $13.8 million
($6.3 million for the fourth quarter) increase in net revenues from Strategic
Outsourcing, Inc. (SOI), a subsidiary acquired in April 2000 that provides
professional employment organizational services. Other solid product
contributors were service charges on deposit accounts, which increased $12.0
million ($3.5 million for the quarter), bank card income (merchants processing)
which increased $10.2 million ($2.0 million for the quarter), and mortgage
banking revenues which increased $7.2 million ($7.8 million for the quarter).
Operating noninterest income for 2000 increased to 31% of total revenues (net
interest income and noninterest income) compared to 28% for 1999.
EFFICIENCY
Noninterest expense, net of nonoperating items, for the fourth quarter
of 2000 was $275.7 million, down $8.5 million or 3.0% from the fourth quarter of
1999. For the full year, operating noninterest expense was $1.091 billion, up
slightly from $1.082 billion for 1999.
The increase in operating noninterest expense was attributable
primarily to the SOI acquisition, which increased expenses approximately $8.6
million for the year ($3.9 million for the quarter). Goodwill and other
intangibles amortization increased $7.7 million ($41,000 for the quarter) due
primarily to the 1999 acquisitions. Excluding the impact of
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these items, noninterest expenses decreased approximately $12.0 million and $8.0
million, respectively, for the fourth quarter and full year 2000.
The operating efficiency ratio for 2000 was 56.59%, which compared to
57.35% for 1999. For the fourth quarter of 2000, the efficiency ratio was 57.10%
compared to 59.21% for the fourth quarter of 1999.
CREDIT QUALITY
The provision for losses on loans for the fourth quarter of 2000 was
$20.1 million, or .34% of average loans, compared to $19.7 million, or .37% of
average loans, for the same period last year. For the year, the provision for
losses on loans for 2000 was $77.1 million, or .34% of average loans, compared
to $74.0 million, or .36% of average loans for last year. Net charge-offs as a
percentage of average loans were .36% for 2000 (.42% for the quarter), a
decrease from .47% for last year (.68% for the quarter).
Nonperforming assets were $177.9 million, or .75% of loans and
foreclosed properties at December 31, 2000, compared to $167.5 million, or .80%
of loans and foreclosed properties, a year earlier and $176.5 million, or .76%
of loans and foreclosed properties, at September 30, 2000.
The allowance for losses on loans totaled $335.5 million at December
31, 2000, equal to 1.42% of loans and 249% of nonperforming loans.
CAPITAL STRENGTH
Total shareholders' equity was $2.9 billion at December 31, 2000. This
represented 8.41% of period-end assets of $34.7 billion. The leverage ratio was
6.53%.
SHARE PURCHASE PLAN
In February 2000, the Company completed the purchase of 7.1 million
common shares under a share purchase plan approved by the Board of Directors in
August 1999. On February 17, 2000, the Board of Directors
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authorized the purchase of an additional 7.1 million shares. To date, 1,610,000
shares have been purchased.
THE COMPANY
Union Planters Corporation, headquartered in Memphis, Tennessee, is a
multi-state bank holding company with 1,065 ATMs and 847 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 Company'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 regarding the impact of the reduction in interest
rates on the year 2001. 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
FOURTH QUARTER OF 2000, VISIT UNION PLANTERS' WEB SITE AT
http://www.unionplanters.com, ACCESS UNION PLANTERS CURRENT REPORT ON FORM 8-K
DATE JANUARY 18, 2001 WHICH WAS FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION, 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 YEAR ENDED
DECEMBER 31, DECEMBER 31,
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2000 1999 2000 1999
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INCOME STATEMENT AMOUNTS
Net interest income
Actual $ 301,006 $ 321,016 $ 1,231,116 $ 1,256,531
Taxable-equivalent basis 309,825 330,339 1,266,812 1,294,509
Provision for losses on loans 20,121 19,661 77,062 74,045
Noninterest income
Investment securities gains 304 160 381 2,128
Other 145,684 122,498 559,021 510,582
Noninterest expense 276,180 277,117 1,102,840 1,076,364
Earnings before income taxes 150,693 146,896 610,616 618,832
Income taxes 47,186 49,546 201,306 208,834
NET EARNINGS 103,507 97,350 409,310 409,998
NET EARNINGS APPLICABLE TO COMMON SHARES 103,113 96,929 407,703 408,240
OPERATING EARNINGS (1) 102,951 92,841 407,719 395,146
CASH OPERATING EARNINGS (2) 116,640 105,925 461,557 442,728
PER COMMON SHARE DATA
Net earnings
- basic $ .77 $ .69 $ 3.02 $ 2.88
- diluted .76 .69 3.00 2.85
Operating earnings (1)
- basic .76 .66 3.00 2.77
- diluted .76 .65 2.98 2.74
Cash operating earnings (2)
- basic .86 .75 3.40 3.11
- diluted .86 .75 3.38 3.08
Cash dividends .50 .50 2.00 2.00
Book value 21.53 19.90
BALANCES AT END OF PERIOD
Loans, excluding FHA/VA government-insured/guaranteed loans $ 23,673,951 $ 20,927,187
Allowance for losses on loans 335,452 342,300
Nonperforming assets
Nonaccrual loans 133,269 127,766
Restructured loans 1,512 1,878
Foreclosed properties 43,136 37,864
Loans 90 days past due 96,662 92,834
FHA/VA government-insured/guaranteed loans 283,543 519,213
Nonaccrual 3,615 6,613
90 days past due 121,303 240,799
Available for sale investment securities
Amortized cost 6,849,457 7,685,096
Fair value 6,843,670 7,472,455
Unrealized loss, net of taxes (3,841) (134,217)
Total assets 34,720,718 33,280,353
Total deposits 23,113,383 23,372,116
Total shareholders' equity 2,920,054 2,776,109
Total common equity 2,900,363 2,755,234
Tier 1 capital 2,175,573 2,139,735
</TABLE>
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UNION PLANTERS CORPORATION
FINANCIAL HIGHLIGHTS (UNAUDITED)
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
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2000 1999 2000 1999
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Average Balances
Loans, excluding FHA/VA government-
insured/guaranteed loans $ 23,666,425 $ 21,182,056 $ 22,882,031 $ 20,543,632
FHA/VA government-insured/
guaranteed loans 294,982 528,806 334,172 597,944
Investment securities 6,941,450 7,766,424 7,266,351 8,137,587
Earning assets 31,194,550 29,855,930 30,810,866 29,676,273
Total assets 34,200,410 33,140,601 33,882,405 32,902,370
Total deposits 22,988,399 24,057,562 23,212,007 25,027,643
Interest-bearing liabilities 26,721,762 25,305,421 26,405,567 24,927,137
Demand deposits 3,957,042 4,222,365 4,009,843 4,315,708
Shareholders' equity 2,807,805 2,944,349 2,807,672 2,980,664
Common equity 2,787,969 2,922,896 2,787,431 2,958,346
OTHER SUPPLEMENTAL INFORMATION
Net earnings
Return on average assets 1.20% 1.17% 1.21% 1.25%
Return on average common equity 14.71 13.16 14.63 13.80
Cash operating earnings (2)
Return on average assets 1.36 1.27 1.36 1.35
Return on average common equity 16.59 14.32 16.50 14.91
Return on average tangible assets 1.40 1.31 1.40 1.38
Return on average tangible common equity 25.31 21.52 25.26 20.28
Allowance for losses on loans to loans (3) 1.42 1.64
Nonperforming loans to loans (3) .57 .62
Nonperforming assets to loans and
foreclosed properties (3) .75 .80
Net charge-offs of loans $ 25,005 $ 36,082 $ 81,918 $ 96,296
Net charge-offs as a percentage of
average loans (3) .42% .68% .36% .47%
Common shares outstanding (end of
period, in thousands) 134,735 138,487
Weighted average shares outstanding
(in thousands)
Basic 134,675 140,044 135,171 141,854
Diluted 136,163 141,912 136,656 143,983
Yield on earning assets (taxable-equivalent
basis) 8.41% 7.96% 8.32% 7.87%
Rate on interest-bearing liabilities 5.21 4.21 4.91 4.18
Interest rate spread (taxable-equivalent
basis) 3.20 3.75 3.41 3.69
Net interest income as a percentage of
average earning assets (taxable-equivalent
basis) 3.95 4.39 4.11 4.36
Shareholders' equity to total assets 8.41 8.34
Leverage ratio 6.53 6.65
</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
