SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Event Reported August 19, 1999
UnionBanCal Corporation
Commission File Number 0-28118
State of Incorporation: California
IRS Employer Identification No.:.94-1234979
350 California Street
San Francisco, California 94104-1476
(415) 765-2969
Item 5. Other Events.
We hereby report the announcement of Mission Excel, a plan to fund significant
new business growth as well as to control costs by streamlining operations,
details of which are more fully disclosed in our press release dated August 16,
1999, a copy of which is included as Exhibit 99.1.
This press release includes forward-looking statements that involve inherent
risks and uncertainties. A number of important factors could cause actual
results, such as increased pre-tax earnings estimates, to differ materially from
those in the forward-looking statements. Those factors include management's
ability to successfully implement Mission Excel, customer acceptance of new or
revised products and services, fluctuations in interest rates, government
regulations, and economic conditions and competition in the geographic and
business areas in which the Corporation conducts its operations. A complete
description of UnionBanCal Corporation, including related risk factors is
discussed in the Corporation's public filings with the Securities and Exchange
Commission, which are available by calling (415) 765-2969 or online at
http://www.sec.gov.
Item 7. Financial Statements, Pro Forma Financial statements and Exhibits
(c) Exhibits
Exhibit No. Description
- ----------- ------------
99.1 Press Release dated August 16, 1999
Signatures
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.
UnionBanCal Corporation
(Registrant)
Date August 19, 1999 By: /s/ David A. Anderson
-----------------------------
David A. Anderson
Senior Vice President and Controller
Exhibit 99.1
SAN FRANCISCO--(BUSINESS WIRE)--Aug. 16, 1999--UnionBanCal Corporation (NYSE:UB
- - news) today announced plans to fund significant new business growth as well as
to control costs by streamlining operations.
These plans will be fully implemented in 18 months and are expected to add $225
million in annualized pre-tax earnings, ensuring that UnionBanCal will
significantly improve its efficiency by the end of next year.
``Mission Excel is a balanced program that funds significant business growth and
technology investments by redeploying resources generated through efficiency
improvements,'' said Takahiro Moriguchi, UnionBanCal President and CEO.
``We began Mission Excel from a position of record revenues and a strong belief
that we currently offer better products and service than our competitors. With
Mission Excel, we will be able to continue offering the best banking experience
in an increasingly competitive industry, while also meeting our efficiency ratio
target.''
Mission Excel will grow several core businesses through improved structure,
focus, technology, staffing, customer services and sales support. For example:
- -- Small business lending: Small business lending has been
reorganized to reduce administrative and sales duplication while
reaffirming the Bank's commitment to serve the market with
convenient offices and highly skilled professional bankers.
Smaller firms will continue to be served in branches, reflecting
the Bank's commitment to "community banking." Larger firms will
continue to deal with their bankers through conveniently located
Business Banking Centers.
- -- Private Banking, Personal Trust, and Priority Banking: These will
be merged into a single business unit more capable of bringing
all the Bank's services to its clients while assuring the proper
service and sales approach to these clients in every branch in
the system.
- -- Branches: Expansion of the Bank's Branch system will continue
with the Fall opening of an office in Disneyland leading the way
and continued expansion of its ATM network with upgrading of
machines.
``UnionBanCal is known for the high level of personal service we provide'' said
Richard Hartnack, UnionBanCal Vice Chairman, ``and Mission Excel will allow us
to continue that strategy. While many companies in our industry are choosing
between providing personal face-to-face service and alternative service
channels, Mission Excel will allow us to provide both so that our customers, not
us, can choose how they are best served.''
Mission Excel will reaffirm UnionBanCal's industry leading service standards
through significant investment in outstanding internet and telephone banking as
well as other customer service improvements. For example:
- -- Internet: Building on its early success in providing a growing
proportion of consumer clients one of the best on-line banking
services in the industry, the Bank is launching a multi-million
dollar effort to enhance consumer offerings and to bring new
functionality to corporate clients.
- -- Branch sales and service: The sales and service experience
offered will be enhanced by a multi-million dollar investment in
product and sales training, completion of roll-out of a platform
automation system and reduction of administrative burdens at the
branch level.
- -- Teleservices: new telephone technology will be installed with
more customer service representatives to serve clients faster.
- -- Asset management: more investment specialists will be added to
meet demand and increase convenience for clients.
``During the past four months, over 300 managers worked with extraordinary
passion and professionalism to analyze over 3000 specific actions that our
employees identified as ways to streamline our operations,'' said Robert Walker,
Vice Chairman.
``They challenged old assumptions and analyzed new ideas so that we can be a
nimble and entrepreneurial company that responds quickly to our customers' needs
and demands. We are now implementing their ideas to improve efficiency and to
fund our new initiatives.''
Mission Excel project teams scrutinized every area of the company and identified
means of increasing efficiency while still maintaining UnionBanCal's trademark
high service levels. For example:
- -- Empowering branch employees with additional authority and
reducing clerical responsibilities so that they can serve
customers more efficiently
- -- Insourcing activities previously undertaken by outside firms
- -- Employing strategic procurement processes and systems that
leverage vendor relationships company wide o Streamlining credit
processes to give customers faster service o Leveraging an
intranet to give employees a faster, easier, less expensive,
method of performing many routine tasks
- -- Consolidating many back office operations in order to capitalize
on UnionBanCal's size, best practices, and previous mergers to
provide customers more consistent service
``The overwhelming majority of our employees will continue in their current or
comparable assignments or will be redeployed to new jobs. For them, Mission
Excel will result in more fulfilling jobs, new tools and greater training to
serve customers better. Job opportunities will be enhanced by working for a more
successful company.''
Walker noted, ``However, as we eliminate redundancies and consolidate functions,
a number of employees throughout the corporation will be impacted. To assist
these employees, we have continued our enhanced severance plan option with
outplacement services to help their transition, and will work diligently to
maximize opportunities in the future as more and better jobs are created.''
UnionBanCal's projected total financial impact (pre-tax) of Mission Excel
implementation of $225 million, or $0.83 per diluted share after tax, will be
comprised of $90 million of additional revenue and $135 million of reduced
expenses.
The Bank will incur a one time restructuring charge of $85 million (pre-tax), or
$0.33 per diluted share after-tax, in the third quarter of this year. This total
is comprised of $70 million in personnel related charges and $15 million in
facilities and other charges. Personnel related charges are based on a
projection of 1,400 terminations, approximately 15% of the Bank's current work
force, over the next 18 months.
Mission Excel was conducted with the assistance of EHS Partners, a Los Angeles
based advisory firm specializing in resource redeployment.
Based in San Francisco, UnionBanCal Corporation is a bank holding company with
assets of $32.4 billion at June 30, 1999. Its primary subsidiary is Union Bank
of California, N.A., the third largest commercial bank in California and among
the 30 largest banks in the United States. Union Bank of California, N.A. has
241 banking offices in California, 6 banking offices in Oregon and Washington
and 18 international facilities.
The following appears in accordance with the Private Securities Litigation
Reform Act:
This press release includes forward-looking statements that involve inherent
risks and uncertainties. A number of important factors could cause actual
results to differ materially from those in the forward-looking statements. Those
factors include fluctuations in interest rates, government regulations, and
economic conditions and competition in the geographic and business areas in
which the Corporation conducts its operations. A complete description of
UnionBanCal Corporation, including related risk factors is discussed in the
Corporation's public filings with the Securities and Exchange Commission, which
are available by calling (415) 765-2969 or online at http://www.sec.gov.
Contact:
UnionBanCal Corporation
Stephen L. Johnson, 415/765-3252 (Public Relations)
John A. Rice, Jr., 415/765-2998 (Investor Relations)
