-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LEeijdhCiBUsyNyC4xRbd9D6EKIfM5hvROUq7JxFcPxwy7sBUhC6929258l1VHt2 XZ4ZFfCs2xujcPEz8eqTZA== 0000950144-99-008891.txt : 19990716 0000950144-99-008891.hdr.sgml : 19990716 ACCESSION NUMBER: 0000950144-99-008891 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990715 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990715 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNION PLANTERS CORP CENTRAL INDEX KEY: 0000100893 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 620859007 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10160 FILM NUMBER: 99665275 BUSINESS ADDRESS: STREET 1: UNION PLANTERS ADMINSTRATIVE CENTER STREET 2: 7130 GOODLETT FARMS PARKWAY CITY: MEMPHIS STATE: TN ZIP: 38018 BUSINESS PHONE: 9015806000 MAIL ADDRESS: STREET 1: 7130 GOODLETT FARMS PKWY STREET 2: UNION PLANTERS ADMINISTRATIVE CENTER CITY: MEMPHIS STATE: TN ZIP: 38018 8-K 1 UNION PLANTERS CORPORATION 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 July 15, 1999 (July 15, 1999) ------------------------------------------------------ Date of Report (Date of earliest event reported) UNION PLANTERS CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in charter) TENNESSEE 1-10160 62-0859007 - ------------------------ --------------- ------------------------ (State of incorporation) (Commission (IRS Employer File Number) Identification No.) UNION PLANTERS ADMINISTRATIVE CENTER 7130 GOODLETT FARMS PARKWAY MEMPHIS, TENNESSEE 38018 ---------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: (901) 580-6000 --------------------- Not Applicable ------------------------------------------------------------------- (Former name or former address, if changed since last report) 2 ITEM 5. OTHER EVENTS EARNINGS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 1999 On July 15, 1999, Union Planters Corporation announced operating results for the three and six months ended June 30, 1999. A copy of the Corporation's press release announcing the results is attached as Exhibit 99.1 and is incorporated by reference herein. Additionally, the Corporation provided supplemental financial information for analysts and other interested investors which is attached as Exhibit 99.2 and is incorporated by reference herein. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS, AND EXHIBITS C. Exhibits 99.1 Union Planters Corporation Press Release dated July 15, 1999, announcing operating results for the three and six months ended June 30, 1999 99.2 Unaudited Supplemental Second Quarter 1999 Financial Information 2 3 SIGNATURE 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. Union Planters Corporation ------------------------------------- Registrant Date: July 15, 1999 /s/ M. Kirk Walters ---------------------------- ------------------------------------- M. Kirk Walters Senior Vice President, Treasurer, and Chief Accounting Officer 3 EX-99.1 2 PRESS RELEASE DATED JULY 15,1999 1 EXHIBIT 99.1 Union Planters Corporation Press Release dated July 15, 1999, announcing operating results for the three and six months ended June 30, 1999 2 July 15, 1999 UNION PLANTERS CORPORATION ANNOUNCES RECORD QUARTERLY NET EARNINGS Memphis, TN -- Union Planters Corporation (NYSE: UPC) announced record second quarter 1999 net earnings of $105.8 million, an increase of 33.2% compared to $79.4 million for the second quarter of 1998. Diluted earnings per share for the second quarter of 1999 were $.73 compared to $.56 for the same period in 1998. Second quarter results represented returns on average assets and average common equity of 1.29% and 14.19%, respectively, compared to 1.04% and 10.97%, respectively, for the same period in 1998. Cash earnings (net earnings adjusted for the after-tax impact of amortization of goodwill and other intangibles) were $115.8 million, or $.80 per diluted share, for the second quarter of 1999 compared to $85.7 million, or $.60 per diluted share, for the second quarter of 1998. Cash earnings for the second quarter of 1999 represented returns on average tangible assets and average tangible common equity of 1.44% and 20.47%, respectively, compared to 1.13% and 12.96%, respectively, for the same period in 1998. For the six months ended June 30, 1999, net earnings were $203.1 million compared to $183.9 million for the same period in 1998. Diluted earnings per common share for the first six months of 1999 were $1.40 compared to $1.30 for the first six months of 1998. Cash earnings for the six months ended June 30, 1999 were $223.7 million, or $1.55 per diluted common share, which compares to $195.7 million, or $1.38 per diluted common share for the same period in 1998. Benjamin W. Rawlins, Jr., Chairman and Chief Executive Officer said, "We our pleased with the solid second quarter results and their 3 improvement over the first quarter of 1999. The integration of recent acquisitions and the implementation of a number of operational changes are continuing and are expected to be substantially completed by the end of the third quarter of 1999. We expect continued improvement in operating results in both the third and fourth quarters of 1999." Net interest income for the second quarter of 1999 was $311.6 million, an increase of $4.8 million over the same period in 1998 and up $15.9 million from the first quarter of 1999. The net interest margin for the second quarter of 1999 was 4.35% compared to 4.47% and 4.22%, respectively, for the second quarter of 1998 and first quarter of 1999. Average loans, excluding FHA/VA loans, increased 3.7% for the second quarter of 1999 compared to the same period in 1998. The provision for losses on loans for the second quarter of 1999 was $17.7 million, down $25.3 million from the same period in 1998. The decrease is attributable primarily to the sale of the credit card portfolio in the fourth quarter of 1998 which reduced the quarterly provision approximately $12.5 million and to lower provisions by acquired institutions. Net charge-offs for the second quarter of 1999 were $22.2 million, or .44% of average loans. This compares to $46.3 million, or .95% for the same period in 1998 and $14.2 million, or .29% of average loans for the first quarter of 1999. At June 30, 1999, the allowance for losses on loans was $340.6 million, or 1.73% of loans and 172% of nonperforming loans. Nonperforming assets at June 30, 1999 were $226.7 million, or 1.15% of loans and foreclosed properties. This compares to $203.9 million, or 1.02% of loans and foreclosed properties at March 31, 1999. Noninterest income for the second quarter of 1999 was $140.7 million which compares to $119.4 million for the same period in 1998 and $126.3 million for the first quarter of 1999. Second quarter 1999 4 noninterest income included a $5.0 million gain related to the sale of $296 million of adjustable-rate residential mortgage loans, $3.2 million of investment securities gains, and a $2.4 million gain on the sale of the Corporation's corporate trust business. Noninterest income for the second quarter of 1998 included a gain on the securitization and sale of FHA/VA loans of $19.6 million and investment securities losses of $22.6 million. Annuity sales income, insurance commissions, service charges on deposit accounts, and mortgage banking revenues increased in the aggregate $12.8 million for the second quarter of 1999 compared to the same period in 1998. Partially offsetting these increases was a decrease in bank card income due to the sale of the credit card portfolio. Noninterest expenses increased $17.9 million to $275.0 million for the second quarter of 1999 compared to the same period in 1998 and increased $16.8 million compared to the first quarter of 1999. The increase relates primarily to noninterest expenses of acquired entities, primarily salaries and employee benefits expense and amortization of goodwill and other intangibles. Partially offsetting these increases was a $13.9 million decline in merger-related expenses in the second quarter of 1999 compared to the same period in 1998. Union Planters Corporation ended the quarter with total assets of $32.3 billion, total loans of $20.2 billion, and total deposits of $24.8 billion. Shareholders' equity at June 30, 1999 was $3.0 billion and the shareholders' equity to total assets and leverage ratios were 9.22% and 7.79%, respectively. Union Planters Corporation, headquartered in Memphis, Tennessee, is a multi-state bank holding company with 1,084 ATMs and 860 banking offices in Alabama, Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, Tennessee, and Texas. 5 Union Planters is one of the 30 largest bank holding companies in the United States. 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. To the extent that statements in this report relate to the plans, objectives, or future performance of Union Planters, 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 Union Planters' business and prospects is contained in the Corporation's periodic filings with the Securities and Exchange Commission. -O0O- FOR ADDITIONAL INFORMATION: FINANCIAL CONTACT JACK W. PARKER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER (901) 580-6781 MEDIA CONTACT BILL ANDREWS SENIOR VICE PRESIDENT (901) 580-2892 [TWO PAGE FINANCIAL ATTACHMENT FOLLOWS] 6 UNION PLANTERS CORPORATION FINANCIAL HIGHLIGHTS (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 1999 1998 1999 1998 - ----------------------------------------------------------------------------------------------------------------------------------- INCOME STATEMENT AMOUNTS Net interest income Actual $ 311,589 $ 306,826 $ 607,286 $ 610,576 Taxable-equivalent basis 321,196 315,488 626,338 627,466 Provision for losses on loans 17,740 43,038 34,019 76,250 Noninterest income Investment securities gains (losses) 3,181 (22,584) 3,192 (16,730) Other 137,535 142,009 263,778 262,914 Noninterest expense 275,009 257,119 533,248 494,121 Earnings before income taxes 159,556 126,094 306,989 286,389 Applicable income taxes 53,792 46,690 103,875 102,524 NET EARNINGS 105,764 79,404 203,114 183,865 NET EARNINGS APPLICABLE TO COMMON SHARES 105,318 78,936 202,210 182,764 CASH EARNINGS 115,757 85,702 223,671 195,705 - ----------------------------------------------------------------------------------------------------------------------------------- PER COMMON SHARE DATA Net earnings - basic $ .74 $ .57 $ 1.42 $ 1.33 - diluted .73 .56 1.40 1.30 Cash earnings - basic .81 .62 1.56 1.42 - diluted .80 .60 1.55 1.38 Cash dividends .50 .50 1.00 1.00 Book value 20.68 21.36 - ----------------------------------------------------------------------------------------------------------------------------------- BALANCES AT END OF PERIOD Loans, excluding FHA/VA government-insured/guaranteed loans $ 19,633,066 $ 19,389,002 Allowance for losses on loans 340,586 337,602 Nonperforming assets Nonaccrual loans 196,749 141,618 Restructured loans 1,655 8,375 Foreclosed properties 28,266 35,101 Loans 90 days past due 25,858 50,044 FHA/VA government-insured/guaranteed loans 598,046 811,705 Nonaccrual 7,391 10,830 90 days past due 306,238 414,276 Available for sale investment securities Amortized cost 8,035,376 7,542,679 Fair value 7,939,035 7,610,153 Unrealized gain (loss), net of taxes (61,571) 42,750 Total assets 32,260,172 31,042,246 Total deposits 24,807,641 23,260,221 Total shareholders' equity 2,973,072 3,008,320 Total common equity 2,950,938 2,980,588 Tier 1 capital 2,515,225 2,927,001 - -----------------------------------------------------------------------------------------------------------------------------------
7 UNION PLANTERS CORPORATION FINANCIAL HIGHLIGHTS (UNAUDITED) (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, 1999 1998 1999 1998 - -------------------------------------------------------------------------------------------------------------------- AVERAGE BALANCES Loans, excluding FHA/VA government- insured/guaranteed loans $20,308,473 $19,582,958 $20,038,204 $19,481,419 FHA/VA government-insured/ guaranteed loans 607,950 1,020,237 648,193 1,149,590 Investment securities 8,357,425 7,165,161 8,402,231 6,689,047 Earning assets 29,637,625 28,338,325 29,487,940 27,965,491 Total assets 32,988,798 30,747,329 32,671,179 30,346,126 Total deposits 25,708,599 23,317,068 25,499,322 23,143,770 Interest-bearing liabilities 24,819,027 23,526,625 24,624,517 23,264,097 Demand deposits 4,476,077 3,597,234 4,390,270 3,495,844 Shareholders' equity 3,000,107 2,916,215 2,978,629 2,897,901 Common equity 2,977,401 2,886,170 2,955,682 2,859,549 - -------------------------------------------------------------------------------------------------------------------- OTHER SUPPLEMENTAL INFORMATION Return on average assets 1.29% 1.04% 1.25% 1.22% Return on average common equity 14.19 10.97 13.80 12.89 Return on average tangible assets 1.44 1.13 1.41 1.31 Return on average tangible common equity 20.47 12.96 19.11 14.95 Allowance for losses on loans to loans (1) 1.73 1.74 Nonperforming loans to loans (1) 1.01 .77 Nonperforming assets to loans and foreclosed properties (1) 1.15 .95 Net charge-offs of loans $ 22,165 $ 46,312 $ 36,369 $ 73,185 Net charge-offs as a percentage of average loans (1) .44% .95% .37% .76% Common shares outstanding (end of period, in thousands) 142,713 139,568 Weighted average shares outstanding (in thousands) Basic 142,574 138,077 142,417 137,011 Diluted 144,798 142,525 144,737 141,973 Yield on earning assets (taxable-equivalent basis) 7.78% 8.43% 7.79% 8.49% Rate on interest-bearing liabilities 4.10 4.77 4.20 4.77 Interest rate spread (taxable-equivalent basis) 3.68 3.66 3.59 3.72 Net interest income as a percentage of average earning assets (taxable-equivalent basis) 4.35 4.47 4.28 4.52 Shareholders' equity to total assets 9.22 9.69 Leverage ratio 7.79 9.60
(1) Excludes FHA/VA government-insured/guaranteed loans EX-99.2 3 UNAUDITED 2ND QUARTER 1999 FINANCIAL INFORMATION 1 EXHIBIT 99.2 Unaudited Supplemental Second Quarter 1999 Financial Information 2 UNION PLANTERS CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (UNAUDITED)
JUNE 30, VARIANCE -------------------------- ----------------------- 1999 1998 DOLLAR PERCENTAGE ------------ ------------ ----------- ---------- (DOLLARS IN THOUSANDS) ASSETS Cash and due from banks $ 1,140,966 $ 1,154,531 $ (13,565) (1.2)% Interest-bearing deposits at financial institutions 49,808 28,010 21,798 77.8 Federal funds sold and securities purchased under agreements to resell 120,762 179,882 (59,120) (32.9) Trading account assets 282,199 237,049 45,150 19.0 Loans held for resale 403,520 205,378 198,142 96.5 Available for sale investment securities (amortized cost: $8,035,376, and $7,542,679, respectively) 7,939,035 7,610,153 328,882 4.3 Loans 20,263,128 20,238,547 24,581 0.1 Less: Unearned income (32,016) (37,840) 5,824 15.4 Allowance for losses on loans (340,586) (337,602) (2,984) (0.9) ------------ ------------ ----------- Net loans 19,890,526 19,863,105 27,421 0.1 Premises and equipment 584,717 543,101 41,616 7.7 Accrued interest receivable 281,752 275,634 6,118 2.2 FHA/VA claims receivable 137,337 132,735 4,602 3.5 Mortgage servicing rights 115,033 103,352 11,681 11.3 Goodwill and other intangibles 725,046 260,754 464,292 178.1 Other assets 589,471 448,562 140,909 31.4 ------------ ------------ ----------- Total assets $ 32,260,172 $ 31,042,246 $ 1,217,926 3.9 ============ ============ =========== Liabilities and shareholders' equity Deposits Noninterest-bearing $ 4,236,678 $ 3,673,019 $ 563,659 15.3 Certificates of deposit of $100,000 and over 2,120,692 2,888,454 (767,762) (26.6) Other interest-bearing 18,450,271 16,698,748 1,751,523 10.5 ------------ ------------ ----------- Total deposits 24,807,641 23,260,221 1,547,420 6.7 Short-term borrowings 2,596,517 1,901,443 695,074 36.6 Short and medium-term bank notes 105,000 135,000 (30,000) (22.2) Federal Home Loan Bank advances 208,463 1,085,394 (876,931) (80.8) Other long-term debt 894,798 1,036,028 (141,230) (13.6) Accrued interest, expenses, and taxes 247,195 236,460 10,735 4.5 Other liabilities 427,486 379,380 48,106 12.7 ------------ ------------ ----------- Total liabilities 29,287,100 28,033,926 1,253,174 4.5 ------------ ------------ ----------- Commitments and contingent liabilities -- -- -- -- Shareholders' equity Convertible preferred stock 22,134 27,732 (5,598) (20.2) Common stock, $5 par value; 300,000,000 shares authorized; 142,712,856 and 139,567,809 issued and outstanding, respectively 713,564 697,839 15,725 2.3 Additional paid-in capital 770,932 661,456 109,476 16.6 Retained earnings 1,541,608 1,595,089 (53,481) (3.4) Unearned compensation (13,595) (16,546) 2,951 17.8 Accumulated other comprehensive income-unrealized gain (loss) on available for sale securities, net (61,571) 42,750 (104,321) NM ------------ ------------ ----------- Total shareholders' equity 2,973,072 3,008,320 (35,248) (1.2) ------------ ------------ ----------- Total liabilities and shareholders' equity $ 32,260,172 $ 31,042,246 $ 1,217,926 3.9 ============ ============ ===========
3 UNION PLANTERS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)
THREE MONTHS ENDED JUNE 30, VARIANCE ----------------------- ------------------------- 1999 1998 DOLLAR PERCENTAGE -------- --------- -------- ---------- (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) INTEREST INCOME Interest and fees on loans $428,335 $ 464,494 $(36,159) (7.8)% Interest on investment securities Taxable 107,518 95,460 12,058 12.6 Tax-exempt 17,633 14,989 2,644 17.6 Interest on deposits at financial institutions 450 519 (69) (13.3) Interest on federal funds sold and securities purchased under agreements to resell 963 4,834 (3,871) (80.1) Interest on trading account assets 3,934 2,803 1,131 40.3 Interest on loans held for resale 6,468 3,606 2,862 79.4 -------- --------- -------- Total interest income 565,301 586,705 (21,404) (3.6) -------- --------- -------- INTEREST EXPENSE Interest on deposits 206,296 222,187 (15,891) (7.2) Interest on short-term borrowings 26,088 20,403 5,685 27.9 Interest on long-term debt 21,328 37,289 (15,961) (42.8) -------- --------- -------- Total interest expense 253,712 279,879 (26,167) (9.3) -------- --------- -------- NET INTEREST INCOME 311,589 306,826 4,763 1.6 PROVISION FOR LOSSES ON LOANS 17,740 43,038 (25,298) (58.8) -------- --------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOSSES ON LOANS 293,849 263,788 30,061 11.4 -------- --------- -------- NONINTEREST INCOME Service charges on deposit accounts 42,523 38,638 3,885 10.1 Mortgage banking revenue 24,215 21,624 2,591 12.0 Bank card income 8,083 10,533 (2,450) (23.3) Factoring commissions 7,403 7,437 (34) (0.5) Trust service income 7,004 6,450 554 8.6 Profits and commissions from trading activities 1,519 1,583 (64) (4.0) Investment securities gains (losses) 3,181 (22,584) 25,765 NM Other income 46,788 55,744 (8,956) (16.1) -------- --------- -------- Total noninterest income 140,716 119,425 21,291 17.8 -------- --------- -------- NONINTEREST EXPENSE Salaries and employee benefits 129,871 116,545 13,326 11.4 Net occupancy expense 21,676 18,289 3,387 18.5 Equipment expense 20,218 17,387 2,831 16.3 Goodwill and other intangible amortization 12,285 6,609 5,676 85.9 Other expense 90,959 98,289 (7,330) (7.5) -------- --------- -------- Total noninterest expense 275,009 257,119 17,890 7.0 -------- --------- -------- EARNINGS BEFORE INCOME TAXES 159,556 126,094 33,462 26.5 Applicable income taxes 53,792 46,690 7,102 15.2 -------- --------- -------- NET EARNINGS $105,764 $ 79,404 $ 26,360 33.2 ======== ========= ======== NET EARNINGS APPLICABLE TO COMMON SHARES $105,318 $ 78,936 $ 26,382 33.4 ======== ========= ======== EARNINGS PER COMMON SHARE Basic $ 0.74 $ 0.57 $ 0.17 29.6 Diluted 0.73 0.56 0.17 30.4 AVERAGE COMMON SHARES OUTSTANDING (IN THOUSANDS) Basic 142,574 138,077 4,497 3.3 Diluted 144,798 142,525 2,273 1.6
4 UNION PLANTERS CORPORATION SUMMARY OF CONSOLIDATED RESULTS (UNAUDITED)
THREE MONTHS ENDED JUNE 30, ------------------------- 1999 1998 VARIANCE PERCENTAGE --------- --------- --------- ---------- (DOLLARS IN THOUSANDS) Interest income $ 565,301 $ 586,705 $(21,404) (3.6)% Interest expense (253,712) (279,879) 26,167 (9.3) --------- --------- -------- NET INTEREST INCOME 311,589 306,826 4,763 1.6 PROVISION FOR LOSSES ON LOANS (17,740) (43,038) 25,298 (58.8) --------- --------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOSSES ON LOANS 293,849 263,788 30,061 11.4 NONINTEREST INCOME Service charges on deposit accounts 42,523 38,638 3,885 10.1 Mortgage banking revenue 24,215 21,624 2,591 12.0 Bank card income 8,083 10,533 (2,450) (23.3) Factoring commissions 7,403 7,437 (34) (0.5) Trust service income 7,004 6,450 554 8.6 Profits and commissions from trading activities 1,519 1,583 (64) (4.0) Other income 37,053 34,370 2,683 7.8 --------- --------- -------- Total noninterest income 127,800 120,635 7,165 5.9 --------- --------- -------- NONINTEREST EXPENSE Salaries and employee benefits 129,871 116,545 13,326 11.4 Net occupancy expense 21,676 18,289 3,387 18.5 Equipment expense 20,218 17,387 2,831 16.3 Goodwill and other intangibles amortization 12,285 6,609 5,676 85.9 Other expense 90,698 85,601 5,097 6.0 --------- --------- -------- Total noninterest expense 274,748 244,431 30,317 12.4 --------- --------- -------- EARNINGS BEFORE MERGER-RELATED CHARGES, OTHER SIGNIFICANT ITEMS, AND INCOME TAXES 146,901 139,992 6,909 4.9 MERGER-RELATED CHARGES AND OTHER SIGNIFICANT ITEMS Gain on sale of the credit card portfolio 874 -- 874 NM Gain on securitization and sale of FHA/VA loans -- 19,605 (19,605) NM Gain on sale of ARM loans 5,041 -- 5,041 NM Gain on sale of corporate trust business 2,417 -- 2,417 NM Net gain on sales of branches and other selected assets 1,403 1,764 (361) (20.5) Investment securities gains (losses) 3,181 (22,584) 25,765 NM Merger-related expenses -- (13,869) 13,869 NM Charter consolidation and other charges related to ongoing integration of operations -- (695) 695 NM Other, net (261) 1,881 (2,142) NM --------- --------- -------- EARNINGS BEFORE INCOME TAXES 159,556 126,094 33,462 26.5 Applicable income taxes (53,792) (46,690) (7,102) 15.2 --------- --------- -------- NET EARNINGS $ 105,764 $ 79,404 $ 26,360 33.2% ========= ========= ======== NET EARNINGS $ 105,764 $ 79,404 $ 26,360 33.2% MERGER-RELATED CHARGES AND OTHER SIGNIFICANT ITEMS, NET OF TAXES (7,733) 9,734 (17,467) NM GOODWILL AND OTHER INTANGIBLES AMORTIZATION, NET OF TAXES 9,993 6,298 3,695 58.7 --------- --------- -------- EARNINGS BEFORE MERGER-RELATED CHARGES, OTHER SIGNIFICANT ITEMS, AND GOODWILL AND OTHER INTANGIBLES AMORTIZATION, NET OF TAXES $ 108,024 $ 95,436 $ 12,588 13.2% ========= ========= ========
5 UNION PLANTERS CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF EARNINGS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, VARIANCE ------------------------------ ---------------------- 1999 1998 DOLLAR PERCENTAGE ----------- ----------- --------- ---------- (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) INTEREST INCOME Interest and fees on loans $ 846,106 $ 927,938 $ (81,832) (8.8)% Interest on investment securities Taxable 214,098 179,638 34,460 19.2 Tax-exempt 35,093 28,924 6,169 21.3 Interest on deposits at financial institutions 1,437 1,027 410 39.9 Interest on federal funds sold and securities purchased under agreements to resell 1,832 11,668 (9,836) (84.3) Interest on trading account assets 7,529 5,823 1,706 29.3 Interest on loans held for resale 13,791 5,937 7,854 132.3 ----------- ----------- --------- Total interest income 1,119,886 1,160,955 (41,069) (3.5) ----------- ----------- --------- INTEREST EXPENSE Interest on deposits 419,300 442,438 (23,138) (5.2) Interest on short-term borrowings 45,342 38,113 7,229 19.0 Interest on long-term debt 47,958 69,828 (21,870) (31.3) ----------- ----------- --------- Total interest expense 512,600 550,379 (37,779) (6.9) ----------- ----------- --------- NET INTEREST INCOME 607,286 610,576 (3,290) (0.5) Provision for losses on loans 34,019 76,250 (42,231) (55.4) ----------- ----------- --------- NET INTEREST INCOME AFTER PROVISION FOR LOSSES ON LOANS 573,267 534,326 38,941 7.3 ----------- ----------- --------- NONINTEREST INCOME Service charges on deposit accounts 81,390 75,510 5,880 7.8 Mortgage banking revenue 51,702 43,269 8,433 19.5 Bank card income 11,043 20,418 (9,375) (45.9) Factoring commissions 14,431 14,741 (310) (2.1) Trust service income 13,714 12,731 983 7.7 Profits and commissions from trading activities 1,864 3,431 (1,567) (45.7) Investment securities gains (losses) 3,192 (16,730) 19,922 NM Other income 89,634 92,814 (3,180) (3.4) ----------- ----------- --------- Total noninterest income 266,970 246,184 20,786 8.4 ----------- ----------- --------- NONINTEREST EXPENSE Salaries and employee benefits 253,101 230,267 22,834 9.9 Net occupancy expense 41,911 36,525 5,386 14.7 Equipment expense 39,238 34,427 4,811 14.0 Goodwill and other intangibles amortization 25,148 12,462 12,686 101.8 Other expense 173,850 180,440 (6,590) (3.7) ----------- ----------- --------- Total noninterest expense 533,248 494,121 39,127 7.9 ----------- ----------- --------- EARNINGS BEFORE INCOME TAXES 306,989 286,389 20,600 7.2 Applicable income taxes 103,875 102,524 1,351 1.3 ----------- ----------- --------- NET EARNINGS $ 203,114 $ 183,865 $ 19,249 10.5 =========== =========== ========= NET EARNINGS APPLICABLE TO COMMON SHARES $ 202,210 $ 182,764 $ 19,446 10.6 ============ =========== ========= EARNINGS PER COMMON SHARE Basic $ 1.42 $ 1.33 $ 0.09 6.8 Diluted 1.40 1.30 0.10 8.0 AVERAGE COMMON SHARES OUTSTANDING (IN THOUSANDS) Basic 142,417 137,011 5,406 3.9 Diluted 144,737 141,973 2,764 1.9
6 UNION PLANTERS CORPORATION SUMMARY OF CONSOLIDATED RESULTS (UNAUDITED)
SIX MONTHS ENDED JUNE 30, --------------------------- 1999 1998 VARIANCE PERCENTAGE ----------- ----------- -------- ---------- (DOLLARS IN THOUSANDS) Interest income $ 1,119,886 $ 1,160,955 $(41,069) (3.5)% Interest expense (512,600) (550,379) 37,779 (6.9) ----------- ----------- -------- NET INTEREST INCOME 607,286 610,576 (3,290) (0.5) PROVISION FOR LOSSES ON LOANS (34,019) (76,250) 42,231 (55.4) ----------- ----------- -------- NET INTEREST INCOME AFTER PROVISION FOR LOSSES ON LOANS 573,267 534,326 38,941 7.3 NONINTEREST INCOME Service charges on deposit accounts 81,390 75,510 5,880 7.8 Mortgage banking revenue 51,702 43,269 8,433 19.5 Bank card income 11,043 20,418 (9,375) (45.9) Factoring commissions 14,431 14,741 (310) (2.1) Trust service income 13,714 12,731 983 7.7 Profits and commissions from trading activities 1,864 3,431 (1,567) (45.7) Other income 70,657 65,014 5,643 8.7 ----------- ----------- -------- Total noninterest income 244,801 235,114 9,687 4.1 ----------- ----------- -------- NONINTEREST EXPENSE Salaries and employee benefits 253,101 230,267 22,834 9.9 Net occupancy expense 41,911 36,525 5,386 14.7 Equipment expense 39,238 34,427 4,811 14.0 Goodwill and other intangibles amortization 25,148 12,462 12,686 101.8 Other expense 173,589 163,414 10,175 6.2 ----------- ----------- -------- Total noninterest expense 532,987 477,095 55,892 11.7 ----------- ----------- -------- EARNINGS BEFORE MERGER-RELATED CHARGES, OTHER SIGNIFICANT ITEMS, AND INCOME TAXES 285,081 292,345 (7,264) (2.5) MERGER-RELATED CHARGES AND OTHER SIGNIFICANT ITEMS Gain on sale of the credit card portfolio 3,268 -- 3,268 NM Gain on securitization and sale of FHA/VA loans 5,317 19,605 (14,288) (72.9) Gain on sale of ARM loans 5,041 -- 5,041 NM Gain on sale of corporate trust business 2,417 -- 2,417 NM Net gain on sales of branches and other selected assets 2,934 8,190 (5,256) (64.2) Investment securities gains (losses) 3,192 (16,730) 19,922 NM Merger-related expenses -- (18,335) 18,335 NM Charter consolidation and other charges related to ongoing integration of operations -- (695) 695 NM Other, net (261) 2,009 (2,270) NM ----------- ----------- -------- EARNINGS BEFORE INCOME TAXES 306,989 286,389 20,600 7.2 Applicable income taxes (103,875) (102,524) (1,351) 1.3 ----------- ----------- -------- NET EARNINGS $ 203,114 $ 183,865 $ 19,249 10.5 % =========== =========== ======== NET EARNINGS $ 203,114 $ 183,865 $ 19,249 10.5 % MERGER-RELATED CHARGES AND OTHER SIGNIFICANT ITEMS, NET OF TAXES (13,387) 6,603 (19,990) NM GOODWILL AND OTHER INTANGIBLES AMORTIZATION, NET OF TAXES 20,557 11,840 8,717 73.6 ----------- ----------- -------- EARNINGS BEFORE MERGER-RELATED CHARGES, OTHER SIGNIFICANT ITEMS, AND GOODWILL AND OTHER INTANGIBLES AMORTIZATION, NET OF TAXES $ 210,284 $ 202,308 $ 7,976 3.9 % =========== =========== ========
7 UNION PLANTERS CORPORATION CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND INTEREST RATES
THREE MONTHS ENDED JUNE 30, ---------------------------------------------------------------------- 1999 1998 ---------------------------------------------------------------------- INTEREST FTE INTEREST FTE AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/ BALANCE EXPENSE RATE BALANCE EXPENSE RATE ------------ ---------- ------ ------------ ----------- ------- (DOLLARS IN THOUSANDS) ASSETS Interest-bearing deposits at financial institutions $ 31,606 $ 450 5.71% $ 38,760 $ 519 5.37% Federal funds sold and securities purchased under agreements to resell 75,924 963 5.09 353,374 4,834 5.49 Trading account assets 256,247 3,934 6.16 177,835 2,803 6.32 Investment securities (1)(2) Taxable securities 7,020,196 107,518 6.14 6,103,535 95,460 6.27 Tax-exempt securities 1,337,229 25,991 7.80 1,061,626 20,561 7.77 ------------ ---------- ------------ ----------- Total investment securities 8,357,425 133,509 6.41 7,165,161 116,021 6.49 Loans, net of unearned income (1),(3),(4) 20,916,423 436,052 8.36 20,603,195 471,190 9.17 ------------ ---------- ------------ ----------- TOTAL EARNING ASSETS (1),(2),(3),(4) 29,637,625 574,908 7.78 28,338,325 595,367 8.43 ---------- ----------- Cash and due from banks 1,081,436 957,447 Premises and equipment 581,790 543,441 Allowance for losses on loans (349,409) (331,259) Goodwill and other intangibles 717,830 248,674 Other assets 1,319,526 990,701 ------------ ------------ TOTAL ASSETS $ 32,988,798 $ 30,747,329 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Money market accounts $ 4,323,100 29,299 2.72% $ 3,135,995 30,377 3.89% Savings deposits 4,793,308 25,443 2.13 4,375,238 24,049 2.20 Certificates of deposit of $100,000 and over 2,286,601 30,016 5.27 2,860,706 41,136 5.77 Other time deposits 9,829,513 121,538 4.96 9,347,895 126,625 5.43 Short-term borrowings Federal funds purchased and securities sold under agreements to repurchase 2,056,357 22,615 4.41 1,460,259 18,590 5.11 Other 281,114 3,473 4.96 67,516 1,813 10.77 Long-term debt Federal Home Loan Bank advances 209,468 2,600 4.98 1,121,094 14,638 5.24 Subordinated capital notes 479,874 7,704 6.44 484,744 8,319 6.88 Medium-term bank notes 105,000 1,761 6.73 135,000 2,236 6.64 Trust preferred securities 199,022 4,128 8.32 198,987 4,128 8.32 Other 255,670 5,135 8.06 339,191 7,968 9.42 ------------ ---------- ------------ ----------- TOTAL INTEREST-BEARING LIABILITIES 24,819,027 253,712 4.10 23,526,625 279,879 4.77 Noninterest-bearing demand deposits 4,476,077 3,597,234 ------------ ---------- ------------ ----------- TOTAL SOURCES OF FUNDS 29,295,104 253,712 27,123,859 279,879 ---------- ----------- Other liabilities 693,587 707,255 Shareholders' equity Preferred stock 22,706 30,045 Common equity 2,977,401 2,886,170 ------------ ------------ Total shareholders' equity 3,000,107 2,916,215 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 32,988,798 $ 30,747,329 ============ ============ NET INTEREST INCOME (1) $ 321,196 $ 315,488 ========== =========== INTEREST RATE SPREAD (1) 3.68% 3.66% ==== ==== NET INTEREST MARGIN (1) 4.35% 4.47% ==== ==== TAXABLE-EQUIVALENT ADJUSTMENTS Loans $ 1,249 $ 3,090 Securities 8,358 5,572 ---------- ----------- Total $ 9,607 $ 8,662 ========== ===========
- ---------- (1) Taxable-equivalent yields are calculated assuming a 35% Federal income tax rate. (2) Yields are calculated on historical cost and exclude the impact of the unrealized gain (loss) on available for sale securities. (3) Includes loan fees in both interest income and the calculation of the yield on loans. (4) Includes loans on nonaccrual status. 8 UNION PLANTERS CORPORATION CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND INTEREST RATES
THREE MONTHS ENDED ------------------------------------------------------------------------------- JUNE 30, 1999 MARCH 31, 1999 -------------------------------------- -------------------------------------- INTEREST FTE INTEREST FTE AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/ BALANCE EXPENSE RATE BALANCE EXPENSE RATE ----------- ----------- ------ ------------ --------- ------ ASSETS (DOLLARS IN THOUSANDS) (DOLLARS IN THOUSANDS) Interest-bearing deposits at financial institutions $ 31,606 $ 450 5.71 % $ 120,476 $ 987 3.32% Federal funds sold and securities purchased under agreements to resell 75,924 963 5.09 75,954 869 4.64 Trading account assets 256,247 3,934 6.16 238,811 3,595 6.11 Investment securities (1) and (2) Taxable securities 7,020,196 107,518 6.14 7,127,846 106,580 6.06 Tax-exempt securities 1,337,229 25,991 7.80 1,319,689 25,746 7.91 ----------- ----------- ------------ --------- Total investment securities 8,357,425 133,509 6.41 8,447,535 132,326 6.35 Loans, net of unearned income (1), (3), and (4) 20,916,423 436,052 8.36 20,453,815 426,254 8.45 ----------- ----------- ------------ --------- Total earning assets (1), (2), (3), and (4) 29,637,625 574,908 7.78 29,336,591 564,031 7.80 ----------- --------- Cash and due from banks 1,081,436 1,008,050 Premises and equipment 581,790 566,337 Allowance for losses on loans (349,409) (342,679) Goodwill and other intangibles 717,830 491,474 Other assets 1,319,526 1,290,257 ------------ ------------ TOTAL ASSETS $ 32,988,798 $ 32,350,030 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Money market accounts $ 4,323,100 29,299 2.72% $ 3,564,252 33,428 3.80% Savings deposits 4,793,308 25,443 2.13 5,047,427 20,622 1.66 Certificates of deposit of $100,000 and over 2,286,601 30,016 5.27 2,492,888 33,480 5.45 Other time deposits 9,829,513 121,538 4.96 9,879,643 125,474 5.15 Short-term borrowings Federal funds purchased and securities sold under agreements to repurchase 2,056,357 22,615 4.41 1,754,258 19,137 4.42 Other 281,114 3,473 4.96 2,571 117 18.46 Long-term debt Federal Home Loan Bank advances 209,468 2,600 4.98 595,347 7,350 5.01 Subordinated capital notes 479,874 7,704 6.44 480,702 7,849 6.62 Medium-term bank notes 105,000 1,761 6.73 105,000 1,761 6.80 Trust preferred securities 199,022 4,128 8.32 199,013 4,128 8.41 Other 255,670 5,135 8.06 306,745 5,542 7.33 ------------ ----------- ------------ --------- Total interest-bearing liabilities 24,819,027 253,712 4.10 24,427,846 258,888 4.30 Noninterest-bearing demand deposits 4,476,077 -- 4,303,509 -- ------------ ----------- ------------ --------- Total sources of funds 29,295,104 253,712 28,731,355 258,888 ----------- --------- Other liabilities 693,587 661,842 Shareholders' equity Preferred stock 22,706 23,190 Common equity 2,977,401 2,933,643 ------------ ------------ Total shareholders' equity 3,000,107 2,956,833 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 32,988,798 $ 32,350,030 ============ ============ NET INTEREST INCOME (1) $ 321,196 $ 305,143 =========== ========= INTEREST RATE SPREAD (1) 3.68% 3.50% ==== ===== NET INTEREST MARGIN (1) 4.35% 4.22% ==== ===== TAXABLE-EQUIVALENT ADJUSTMENTS Loans $ 1,249 $ 1,160 Securities 8,358 8,286 ----------- --------- Total $ 9,607 $ 9,446 =========== =========
(1) Taxable-equivalent yields are calculated assuming a 35% Federal income tax rate. (2) Yields are calculated on historical cost and exclude the impact of the unrealized gain (loss) on available for sale securities. (3) Includes loan fees in both interest income and the calculation of the yield on loans. (4) Includes loans on nonaccrual status. 9 UNION PLANTERS CORPORATION CONSOLIDATED DAILY AVERAGE BALANCE SHEET AND INTEREST RATES
SIX MONTHS ENDED JUNE 30, ----------------------------------------------------------------------------- 1999 1998 ----------------------------------- ------------------------------------- INTEREST FTE INTEREST FTE AVERAGE INCOME/ YIELD/ AVERAGE INCOME/ YIELD/ BALANCE EXPENSE RATE BALANCE EXPENSE RATE ------------ ---------- ------ ------------ ----------- ------ ASSETS (DOLLARS IN THOUSANDS) Interest-bearing deposits at financial institutions $ 75,796 $ 1,437 3.82% $ 37,394 $ 1,027 5.54% Federal funds sold and securities purchased under agreements to resell 75,939 1,832 4.86 427,542 11,668 5.50 Trading account assets 247,577 7,529 6.13 180,499 5,823 6.51 Investment securities (1) (2) Taxable securities 7,073,724 214,098 6.10 5,680,162 179,638 6.38 Tax-exempt securities 1,328,507 51,737 7.85 1,008,885 39,739 7.94 ------------ ---------- ------------ ----------- Total investment securities 8,402,231 265,835 6.38 6,689,047 219,377 6.61 Loans, net of unearned income (1), (3), (4) 20,686,397 862,305 8.41 20,631,009 939,950 9.19 ------------ ---------- ------------ ----------- TOTAL EARNING ASSETS (1), (2), (3), (4) 29,487,940 1,138,938 7.79 27,965,491 1,177,845 8.49 ---------- ----------- Cash and due from banks 1,044,945 949,022 Premises and equipment 574,106 539,892 Allowance for losses on loans (346,063) (331,360) Goodwill and other intangibles 605,277 235,042 Other assets 1,304,974 988,039 ------------ ------------ TOTAL ASSETS $ 32,671,179 $ 30,346,126 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Money market accounts $ 3,945,773 62,727 3.21% $ 3,143,079 60,178 3.86% Savings deposits 4,919,665 46,065 1.89 4,314,379 47,912 2.24 Certificates of deposit of $100,000 and over 2,389,174 63,496 5.36 2,839,027 81,991 5.82 Other time deposits 9,854,440 247,012 5.05 9,351,441 252,357 5.44 Short-term borrowings Federal funds purchased and securities sold under agreements to repurchase 1,906,142 41,741 4.42 1,378,770 34,941 5.11 Other 142,612 3,601 5.09 79,096 3,172 8.09 Long-term debt Federal Home Loan Bank advances 401,341 9,951 5.00 1,130,303 28,818 5.14 Subordinated capital notes 480,285 15,554 6.53 358,417 12,616 7.10 Medium-term bank notes 105,000 3,523 6.77 135,000 4,472 6.68 Trust preferred securities 199,018 8,255 8.36 198,983 8,256 8.37 Other 281,067 10,675 7.66 335,602 15,666 9.41 ------------ ---------- ------------ ----------- TOTAL INTEREST-BEARING LIABILITIES 24,624,517 512,600 4.20 23,264,097 550,379 4.77 Noninterest-bearing demand deposits 4,390,270 -- 3,495,844 ------------ ---------- ------------ ----------- TOTAL SOURCES OF FUNDS 29,014,787 512,600 26,759,941 550,379 ---------- ----------- Other liabilities 677,763 688,284 Shareholders' equity Preferred stock 22,947 38,352 Common equity 2,955,682 2,859,549 ------------ ------------ Total shareholders' equity 2,978,629 2,897,901 ------------ ------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 32,671,179 $ 30,346,126 ============ ============ NET INTEREST INCOME (1) $ 626,338 $ 627,466 ========== =========== INTEREST RATE SPREAD (1) 3.59% 3.72% ==== ==== NET INTEREST MARGIN (1) 4.28% 4.52% ==== ==== TAXABLE-EQUIVALENT ADJUSTMENTS Loans $ 2,408 $ 6,075 Securities 16,644 10,815 ---------- ----------- Total $ 19,052 $ 16,890 ========== ===========
(1) Taxable-equivalent yields are calculated assuming a 35% Federal income tax rate. (2) Yields are calculated on historical cost and exclude the impact of the unrealized gain (loss) on available for sale securities. (3) Includes loan fees in both interest income and the calculation of the yield on loans. (4) Includes loans on nonaccrual status. -----END PRIVACY-ENHANCED MESSAGE-----