<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
For the Fiscal Year Ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
Commission File Number 1-7067
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
(Full title of the Plan)
4041 ESSEN LANE
BATON ROUGE, LOUISIANA 70809
(Address of the Plan)
UNITED COMPANIES FINANCIAL CORPORATION
(Name of Issuer)
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page Number
-----------
<S> <C>
(a) Financial Statements and Supplemental Schedules:
Independent Auditors' Report 2
Statement of Net Assets Available for Benefits with
Supplemental Fund Information - December 31, 1996 3
Statement of Net Assets Available for Benefits with
Supplemental Fund Information - December 31, 1995 4
Statement of Changes in Net Assets Available for Benefits with
Supplemental Fund Information - for the year ended
December 31, 1996 5
Statement of Changes in Net Assets Available for Benefits with
Supplemental Fund Information - for the year ended
December 31, 1995 6
Statement of Changes in Net Assets Available for Benefits with
Supplemental Fund Information - for the year ended
December 31, 1994 7
Notes to Financial Statements 8
Item 27a - Schedule of Assets Held for Investment Purposes -
December 31, 1996 12
Item 27d - Schedule of Reportable Transactions - for the year
ended December 31, 1996 13
(b) Exhibits:
Independent Auditors' Consent 16
</TABLE>
1
<PAGE> 3
INDEPENDENT AUDITORS' REPORT
To the Trustee and Participants of
United Companies Financial Corporation
Employees' Savings Plan
Baton Rouge, Louisiana
We have audited the accompanying statements of net assets available for
benefits of United Companies Financial Corporation Employees' Savings Plan (the
"Plan") as of December 31, 1996 and 1995, and the related statements of changes
in net assets available for benefits for each of the three years in the period
ended December 31, 1996. These financial statements are the responsibility of
the Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31,
1996 and 1995 and the changes in net assets available for benefits for each of
the three years in the period ended December 31, 1996 in conformity with
generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
Table of Contents are presented for the purpose of additional analysis and are
not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental information by fund in the statements of net assets
available for benefits and the statements of changes in net assets available
for benefits is presented for the purpose of additional analysis rather than to
present the net assets available for benefits and changes in net assets
available for benefits of the individual funds. The supplemental schedules and
supplemental information by fund is the responsibility of the Plan's
management. Such supplemental schedules and supplemental information by fund
have been subjected to the auditing procedures applied in our audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects when considered in relation to the basic financial statements
taken as a whole.
/s/ DELOITTE & TOUCHE LLP
Baton Rouge, Louisiana
June 24, 1997
2
<PAGE> 4
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE
FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
December 31, 1996
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
----------------------------------------------------
Tower
UCFC Capital Government Guaranteed
Stock Appreciation Securities Interest
Combined Fund Fund Account Account
------------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
UCFC Common Stock;
$2 par value................ $ 14,520,282 $ 14,520,282
Equity Mutual Fund.............. 760,785 $ 760,785
Investment in The Principal
General Fund Account........ 641,719 $ 641,719
Investment in The Principal
Pooled Separate Accounts.... 3,389,819 $ 191,539
Participant loans............... 466,600
------------- ------------ ------------ ------------ -----------
Total investments........... 19,779,205 14,520,282 760,785 191,539 641,719
Dividends and interest receivable.. 42,793 42,793
------------- ------------ ------------ ------------ -----------
Total assets................ 19,821,998 14,563,075 760,785 191,539 641,719
------------- ------------ ------------ ------------ -----------
Net assets available for benefits.. $ 19,821,998 $ 14,563,075 $ 760,785 $ 191,539 $ 641,719
============= ============ ============ ============ ===========
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
---------------------------------------------------------
Stock Medium
Emphasis Company Stock Money-
Balanced Blend Index 500 market Loan
Account Account Account Account Fund
----------- ----------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
UCFC Common Stock;
$2 par value................
Equity Mutual Fund..............
Investment in The Principal
General Fund Account........
Investment in The Principal
Pooled Separate Accounts.... $ 887,105 $ 1,125,710 $ 691,862 $ 493,603
Participant loans............... $ 466,600
----------- ----------- --------- ----------- ----------
Total investments........... 887,105 1,125,710 691,862 493,603 466,600
Dividends and interest receivable..
----------- ----------- --------- ----------- ----------
Total assets................ 887,105 1,125,710 691,862 493,603 466,600
----------- ----------- --------- ----------- ----------
Net assets available for benefits.. $ 887,105 $ 1,125,710 $ 691,862 $ 493,603 $ 466,600
=========== =========== ========= =========== ==========
</TABLE>
See notes to financial statements.
3
<PAGE> 5
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE
FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
December 31, 1995
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
----------------------------------------------------------------
Tower Stock
UCFC Capital Government Guaranteed Emphasis
Stock Appreciation Securities Interest Balanced
Combined Fund Fund Account Account Account
------------- ------------ ------------ ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Investments at fair value:
UCFC Common Stock;
$2 par value................ $ 15,076,759 $ 15,076,759
Equity Mutual Fund.............. 803,525 $ 803,525
Investment in The Principal
General Fund Account........ 546,070 $ 546,070
Money-market Fund............... 1,850 1,850
Investment in The Principal
Pooled Separate Accounts.... 2,984,289 $ 215,279 $ 840,681
Participant loans............... 412,222
------------- ------------ ------------ ------------- ----------- -----------
Total investments........... 19,824,715 15,078,609 803,525 215,279 546,070 840,681
Contributions receivable........... 93,802 68,806 2,130 1,078 3,296 5,012
Dividends and interest receivable.. 28,355 28,355
Other receivables.................. 6,721
------------- ------------ ------------ ------------- ----------- -----------
Total assets................ 19,953,593 15,175,770 805,655 216,357 549,366 845,693
------------- ------------ ------------ ------------- ----------- -----------
LIABILITIES
Other liabilities.................. 4,179 4,179
------------- ------------ ------------ ------------- ----------- -----------
Net assets available for benefits.. $ 19,949,414 $ 15,171,591 $ 805,655 $ 216,357 $ 549,366 $ 845,693
============= ============ ============ ============= =========== ===========
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
---------------------------------------------
Medium
Company Stock Money-
Blend Index 500 market Loan
Account Account Account Fund
----------- --------- ----------- ----------
<S> <C> <C> <C> <C>
ASSETS
Investments at fair value:
UCFC Common Stock;
$2 par value................
Equity Mutual Fund..............
Investment in The Principal
General Fund Account........
Money-market Fund...............
Investment in The Principal
Pooled Separate Accounts.... $ 845,910 $ 519,375 $ 563,044
Participant loans............... $ 412,222
----------- --------- ----------- ----------
Total investments........... 845,910 519,375 563,044 412,222
Contributions receivable........... 7,587 4,422 1,471
Dividends and interest receivable..
Other receivables.................. 6,721
----------- --------- ----------- ----------
Total assets................ 853,497 523,797 564,515 418,943
----------- --------- ----------- ----------
LIABILITIES
Other liabilities..................
----------- --------- ----------- ----------
Net assets available for benefits.. $ 853,497 $ 523,797 $ 564,515 $ 418,943
=========== ========= =========== ==========
</TABLE>
See notes to financial statements.
4
<PAGE> 6
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
For the year ended December 31, 1996
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
---------------------------------------------------------
Tower
UCFC Capital Government Guaranteed
Stock Appreciation Securities Interest
Combined Fund Fund Account Account
------------ ------------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Net assets available for benefit
January 1, 1996.............. $19,949,414 $ 15,171,591 $ 805,655 $ 216,357 $ 549,366
Additions:
Interest and dividend income. 404,058 165,331 172,900 36,779
Contributions
Employee................. 2,427,897 1,338,405 116,492 66,042 123,088
Employer................. 1,550,212 1,550,212
----------- ------------ ----------- ------------ -----------
Total................ 3,978,109 2,888,617 116,492 66,042 123,088
Net appreciation
of investments............... 918,327 463,963 7,291
----------- ------------ ----------- ------------ -----------
Total additions....... 5,300,494 3,517,911 289,392 73,333 159,867
----------- ------------ ----------- ------------ -----------
Deductions:
Administrative expenses...... 54,744 48,605 494 994
Distributions to
participants............. 5,373,166 4,027,547 277,472 31,965 114,401
----------- ------------ ----------- ------------ -----------
Total deductions...... 5,427,910 4,076,152 277,472 32,459 115,395
----------- ------------ ----------- ------------ -----------
Net transfers between funds..... (50,275) (56,790) (65,692) 47,881
----------- ------------ ----------- ------------ -----------
Net change in net assets
available for benefits....... (127,416) (608,516) (44,870) (24,818) 92,353
----------- ------------ ----------- ------------ -----------
Net assets available for benefit
December 31, 1996............ $19,821,998 $ 14,563,075 $ 760,785 $ 191,539 $ 641,719
=========== ============ =========== ============ ===========
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
---------------------------------------------------------------
Stock Medium
Emphasis Company Stock Money-
Balanced Blend Index 500 market Loan
Account Account Account Account Fund
----------- ----------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Net assets available for benefit
January 1, 1996.............. $ 845,693 $ 853,497 $ 523,797 $564,515 $ 418,943
Additions:
Interest and dividend income. 29,048
Contributions
Employee................. 186,544 324,196 230,110 43,020
Employer.................
----------- ---------- --------- -------- ----------
Total................ 186,544 324,196 230,110 43,020
Net appreciation
of investments............... 132,238 167,220 119,836 27,779
----------- ---------- --------- -------- ----------
Total additions....... 318,782 491,416 349,946 70,799 29,048
----------- ---------- --------- -------- ----------
Deductions:
Administrative expenses...... 1,042 1,321 841 1,447
Distributions to
participants............. 237,722 173,720 135,186 286,813 88,340
---------- ---------- --------- -------- ----------
Total deductions...... 238,764 175,041 136,027 288,260 88,340
---------- ---------- --------- -------- ----------
Net transfers between funds..... (38,606) (44,162) (45,854) 146,549 106,949
---------- ---------- --------- -------- ----------
Net change in net assets
available for benefits....... 41,412 272,213 168,065 (70,912) 47,657
---------- ---------- --------- -------- ----------
Net assets available for benefit
December 31, 1996............ $ 887,105 $1,125,710 $ 691,862 $493,603 $ 466,600
========== ========== ========= ======== ==========
</TABLE>
See notes to financial statements
5
<PAGE> 7
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
For the year ended December 31, 1995
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
----------------------------------------------------------
Tower
UCFC Capital Government Guaranteed
Stock Appreciation Securities Interest
Combined Fund Fund Account Account
------------ ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits -
January 1, 1995................. $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209
Additions:
Interest and dividend income.... 210,633 129,473 23,145 28,508
Contributions
Employee.................... 1,856,665 936,352 73,359 52,774 121,550
Employer.................... 1,304,713 1,303,072 1,641
------------ ----------- ----------- ------------- -------------
Total................... 3,161,378 2,239,424 73,359 52,774 123,191
Net appreciation
of investments.................. 8,377,400 7,662,010 157,523 40,326
------------ ----------- ----------- ------------- -------------
Total additions.......... 11,749,411 10,030,907 254,027 93,100 151,699
------------ ----------- ----------- ------------- -------------
Deductions:
Administrative expenses......... 40,223 29,169 862 768
Distributions to
participants................ 3,169,302 2,457,300 67,902 88,162 28,118
------------ ----------- ----------- ------------- -------------
Total deductions......... 3,209,525 2,486,469 67,902 89,024 28,886
------------ ----------- ----------- ------------- -------------
Net transfers between funds........ (261,201) (73,699) 40,920 140,344
------------ ----------- ----------- ------------- -------------
Net change in net assets
available for benefits.......... 8,539,886 7,283,237 112,426 44,996 263,157
------------ ----------- ----------- ------------- -------------
Net assets available for benefits -
December 31, 1995............... $ 19,949,414 $15,171,591 $ 805,655 $ 216,357 $ 549,366
============ =========== =========== ============= =============
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
-----------------------------------------------------------------------
Stock Medium
Emphasis Company Stock Money-
Balanced Blend Index 500 market Loan
Account Account Account Account Fund
----------- ------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits -
January 1, 1995................. $ 514,317 $ 570,802 $ 275,677 $ 529,918 $ 479,661
Additions:
Interest and dividend income.... 29,507
Contributions
Employee.................... 206,513 260,710 159,162 46,245
Employer....................
----------- ------------ ---------- ----------- -----------
Total................... 206,513 260,710 159,162 46,245
Net appreciation
of investments.................. 140,392 200,361 126,410 50,378
----------- ------------ ---------- ----------- -----------
Total additions.......... 346,905 461,071 285,572 96,623 29,507
----------- ------------ ---------- ----------- -----------
Deductions:
Administrative expenses......... 857 853 828 6,886
Distributions to
participants................ 62,823 63,505 68,900 265,581 67,011
----------- ------------ ---------- ----------- -----------
Total deductions......... 63,680 64,358 69,728 272,467 67,011
----------- ------------ ---------- ----------- -----------
Net transfers between funds........ 48,151 (114,018) 32,276 210,441 (23,214)
Net change in net assets
available for benefits.......... 331,376 282,695 248,120 34,597 (60,718)
----------- ------------ ---------- ----------- -----------
Net assets available for benefits -
December 31, 1995............... $ 845,693 $ 853,497 $ 523,797 $ 564,515 $ 418,943
=========== ============ ========== =========== ===========
</TABLE>
See notes to financial statements.
6
<PAGE> 8
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS
AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION
For the year ended December 31, 1994
<TABLE>
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
---------------------------------------------------------
Tower
UCFC Capital Government Guaranteed
Stock Appreciation Securities Interest
Combined Fund Fund Account Account
------------ ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits -
January 1, 1994 $ 13,626,777 $ 10,475,596 $ 942,967 $ 339,135 $ 1,637,454
Additions:
Interest and dividend income 191,609 100,444 6,702 54,070
Contributions
Employee 1,557,079 852,005 67,870 41,504 81,041
Employer 1,036,172 1,036,172
------------- ------------- --------- ---------- -----------
Total 2,593,251 1,888,177 67,870 41,504 81,041
Net appreciation (depreciation)
of investments (2,562,834) (2,624,519) 27,401 3,174
------------- ------------- --------- ---------- -----------
Total additions 222,026 (635,898) 101,973 44,678 135,111
------------- ------------- --------- ---------- -----------
Deductions:
Administrative expenses 40,410 38,708 411 426
Distributions to
participants 2,398,865 1,518,401 166,377 64,488 8,694
------------- ------------- --------- ---------- -----------
Total deductions 2,439,275 1,557,109 166,377 64,899 9,120
------------- ------------- --------- ---------- -----------
Net transfers between funds (394,235) (185,334) (147,553) (1,477,236)
------------- ------------- --------- ---------- -----------
Net change in net assets
available for benefits (2,217,249) (2,587,242) (249,738) (167,774) (1,351,245)
------------- ------------- --------- ---------- -----------
Net assets available for benefits -
December 31, 1994 $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209
============= ============= ========= ========== ===========
<CAPTION>
SUPPLEMENTAL FUND INFORMATION
---------------------------------------------------------------------
Stock Medium
Emphasis Company Stock Money-
Balanced Blend Index 500 market Loan
Account Account Account Account Fund
----------- ------------- ---------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net assets available for benefits -
January 1, 1994 $ 21,201 $ 2,144 $ 572 $ 97,290 $ 110,418
Additions:
Interest and dividend income 30,393
Contributions
Employee 202,557 159,409 114,639 38,054
Employer
-------- ----------- ----------- --------- -----------
Total 202,557 159,409 114,639 38,054
Net appreciation (depreciation)
of investments (2,179) 1,083 1,921 30,285
-------- ----------- ----------- --------- -----------
Total additions 200,378 160,492 116,560 68,339 30,393
-------- ----------- ----------- --------- -----------
Deductions:
Administrative expenses 534 450 394 (513)
Distributions to
participants 21,279 3,876 17,684 577,439 20,627
-------- ----------- ----------- --------- -----------
Total deductions 21,813 4,326 18,078 576,926 20,627
-------- ----------- ----------- --------- -----------
Net transfers between funds 314,551 412,492 176,623 941,215 359,477
-------- ----------- ----------- --------- -----------
Net change in net assets
available for benefits 493,116 568,658 275,105 432,628 369,243
-------- ----------- ----------- --------- -----------
Net assets available for benefits -
December 31, 1994 $514,317 $ 570,802 $ 275,677 $ 529,918 $ 479,661
======== =========== =========== ========= ===========
</TABLE>
See notes to financial statements.
7
<PAGE> 9
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the United Companies Financial Corporation
Employees' Savings Plan (the "Plan") are prepared on the accrual basis.
Investments are reported at fair value. Fair value for investments in the UCFC
Stock Fund, the Tower Capital Appreciation Fund, the Government Securities
Account, the Guaranteed Interest Account, the Money-market Account, the Stock
Emphasis Balanced Account, the Medium Company Blend Account, and the Stock
Index 500 Account, is determined by reference to market prices on the valuation
date when available. The guaranteed group annuity contracts and participant
loans are valued at cost, which approximates fair value.
2. ELIGIBILITY, CONTRIBUTIONS AND INVESTMENT PROGRAMS
The following description of the Plan's provisions provides general
information regarding eligibility, contributions and investment programs.
Participants should refer to the Plan document for a more complete description
of the Plan's provisions.
Employees are eligible to participate in the Plan provided they have
completed one year of service and have attained the age of twenty-one prior to
the election date. The employee must complete 1,000 hours of service during the
one year waiting period to participate in the Plan. Participating employees may
revise the direction of their contribution once per each calendar year quarter.
UCFC provides matching contributions of a percentage of the participant's
contribution up to 5% of the participant's salary. Salary for purposes of the
Plan is limited to $150,000 for any Plan year, adjusted for cost of living
increases. The matching employer contributions are 100% of the participant's
contribution deferral and are invested in UCFC stock.
Participants are 100% vested in employee contributions ("elective
deferrals") and earnings thereon. Vesting in the employer contributions and
earnings thereon is based on years of service. Participants generally have no
vesting rights until completion of five (5) years of service with the Company
at which time they will become 100% vested in employer matching contributions.
The non-vested portion of a participant's account will be forfeited upon
distribution of the participant's vested portion or incurring 5 consecutive
one-year breaks in service. Amounts forfeited may be used to reduce the
employer contributions.
Employee contributions are supplemented by the matching employer
contributions, and the employee contributions are invested as directed by the
participant in one or more of the following eight funds:
(a) UCFC Stock Fund -- Contributions to this fund are invested
primarily in $2 par value common stock of United Companies
Financial Corporation ("UCFC").
(b) Tower Capital Appreciation Fund -- Contributions to this fund are
invested primarily in a professionally managed and diversified
portfolio of common stocks of high quality companies.
8
<PAGE> 10
(c) Government Securities Account -- Contributions to this fund are
invested in pooled separate accounts of Principal Mutual Life
Insurance Company, primarily in obligations issued or guaranteed
by the U.S. Government or its agencies.
(d) Guaranteed Interest Account -- Contributions to this fund are
invested in the general account of Principal Mutual Life
Insurance Company at a guaranteed interest rate for a specified
period of time.
(e) Stock Emphasis Balanced Account -- Contributions to this fund are
invested in pooled separate accounts of Principal Mutual Life
Insurance Company, weighted toward equity accounts.
(f) Medium Company Blend Account -- Contributions to this fund are
invested in pooled separate accounts of Principal Mutual Life
Insurance Company, primarily in common stocks of medium sized
companies that generate long term capital growth.
(g) Stock Index 500 Account -- Contributions to this fund are in
pooled separate accounts of Principal Mutual Life Insurance
Company, invested in the common stock of those companies included
in the Standard & Poor's 500 Stock Index.
(h) Money-market Account -- Contributions to this fund are invested
in pooled separate accounts of Principal Mutual Life Insurance
Company, primarily in money market instruments.
Investment options (c), (e), (f), (g) and (h) are offered through a
pooled separate account, The Principal Pooled Separate Accounts, and are
classified as such in the statement of financial condition.
The Plan allows participants to borrow from the Plan up to 50% of each
participant's vested interest in the Plan. Participant loans are considered
another investment option of the Plan and require the approval of the Plan
Administrator. Loan payments, including principal and interest, must be made no
less frequently than quarterly, with level amortization over the term of the
loan. The maximum loan term is 5 years.
3. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits as
reflected in the financial statements to Form 5500:
<TABLE>
<CAPTION>
December 31,
--------------------------------------
1996 1995
------------- --------------
<S> <C> <C>
Net assets available for benefits
per the financial statements........................$ 19,821,998 $ 19,949,414
Accrued dividend income................................... (42,793) (28,355)
Accrued fees payable...................................... -- 4,179
------------ --------------
Net assets available for benefits
per Form 5500.......................................$ 19,779,205 $ 19,925,238
============ =============
</TABLE>
9
<PAGE> 11
The following is a reconciliation of changes in net assets according
to the financial statements to Form 5500:
<TABLE>
<CAPTION>
Year Ended
December 31,
1996
----------------
<S> <C>
Changes in net assets
per the financial statements...................... $ (127,416)
Add: Accrued dividend income,
December 31, 1995.............................. 28,355
Less: Accrued dividend income
December 31, 1996.............................. (42,793)
Accrued fees payable,
December 31, 1995.............................. (4,179)
-------------
Changes in net assets
per Form 5500..................................... $ (146,033)
=============
</TABLE>
4. INCOME TAXES
A determination letter dated August 10, 1988 has been received from the
Internal Revenue Service to the effect that the Plan as currently in effect is
qualified as to form under Section 401(a) of the Code; the trust is exempt from
Federal income tax under Section 501(a) of the Code; and employer contributions
paid to the trust under the Plan will be allowable to the Employer as Federal
income tax deductions subject to the conditions and limitations of Section 404
of the Code. It is intended that the Plan, as modified by the provisions of the
Tax Reform Act of 1986, will continue to meet the requirements of Section
401(a) of the Code. Accordingly, no provisions for Federal income taxes have
been made in the accompanying financial statements.
10
<PAGE> 12
5. OTHER
The following represents investments in excess of 5 percent of the
current value of net assets available for benefits as of December 31, 1996 and
1995:
<TABLE>
<CAPTION>
Investment December 31, 1996
- ---------- -----------------
<S> <C>
UCFC Common Stock $ 14,520,282
Medium Company Blend Account $ 1,125,710
</TABLE>
<TABLE>
<CAPTION>
Investment December 31, 1995
- ---------- -----------------
<S> <C>
UCFC Common Stock $ 15,076,759
</TABLE>
11
<PAGE> 13
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1996
<TABLE>
<CAPTION>
IDENTITY DESCRIPTION CURRENT
OF ISSUE OF INVESTMENT COST VALUE
-------------------------- ------------------------------------ --------------- -------------
<S> <C> <C> <C>
* United Companies United Companies
Financial Corporation Financial Corporation,
$2 par value common stock,
545,362.7 shares $ 6,906,849 $ 14,520,282
Hibernia National Bank Tower Capital Appreciation Fund 506,576 760,785
Principal Mutual Guaranteed Interest Account 641,980 641,719
Life Insurance Company
Principal Mutual Pooled Separate Accounts 2,668,733 3,389,819
Life Insurance Company
Participant Loans Range of Interest Rates
From 7% to 12% -- 466,600
--------------- -------------
$ 10,724,138 $ 19,779,205
=============== =============
</TABLE>
*Denotes "Exempt related party transaction".
12
<PAGE> 14
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Total Price
at
Identity of Description Transaction Number of Net
Party Involved of Asset Date Transactions Gain
- ----------------------------- ------------------------------ ------------- -------------- ------------
<S> <C> <C> <C> <C>
Purchase Transactions
- ---------------------
United Companies United Companies
Financial Corporation Financial Corporation,
$2 par value
common stock $ 3,928,558 189
============= ==============
Selling Transactions
- --------------------
United Companies United Companies
Financial Corporation Financial Corporation
$2 par value
Common Stock $ 4,904,084 150 $ 3,162,518
============= ============== ============
</TABLE>
13
<PAGE> 15
SIGNATURE
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the Plan Administrative Committee of the United Companies Financial
Corporation Employees' Savings Plan have duly caused this annual report to be
signed on its behalf by the undersigned hereunto duly authorized.
UNITED COMPANIES FINANCIAL CORPORATION
EMPLOYEES' SAVINGS PLAN
By: /s/ JESSE O. GRIFFIN
---------------------------------
Jesse O. Griffin
Sr. Vice President and Controller
Date: June 27, 1997
14
<PAGE> 16
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NO. DESCRIPTION
- ------- -----------
<S> <C>
23 Independent Auditors' Consent
</TABLE>
15
<PAGE> 1
EXHIBIT 23
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Registration Statement No.
33-17366 of United Companies Financial Corporation on Form S-8 of our report
dated June 24, 1997, appearing in this Annual Report on Form 11-K of United
Companies Financial Corporation Employees' Savings Plan for the year ended
December 31, 1996.
/s/ DELOITTE & TOUCHE LLP
Baton Rouge, Louisiana
June 24, 1997
16
