-----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, BkX2ZpJQGBohnl+wRpFQeXNzsqRucH3Z2lJx60MAsmtuiWQmMM6+0bZMzcNdt8HM xolP3k2R1+XdpMkib4rY6g== 0000950168-01-500085.txt : 20010421 0000950168-01-500085.hdr.sgml : 20010421 ACCESSION NUMBER: 0000950168-01-500085 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20010418 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20010419 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WACHOVIA CORP/ NC CENTRAL INDEX KEY: 0000774203 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 561473727 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09021 FILM NUMBER: 1606877 BUSINESS ADDRESS: STREET 1: 100 N MAIN ST STREET 2: P O BOX 3099 CITY: WINSTON SALEM STATE: NC ZIP: 27101 BUSINESS PHONE: 3367705000 MAIL ADDRESS: STREET 1: 100 NORTH MAIN ST STREET 2: P O BOX 3099 CITY: WINSTON SALEM STATE: NC ZIP: 27101 FORMER COMPANY: FORMER CONFORMED NAME: FIRST WACHOVIA CORP DATE OF NAME CHANGE: 19910603 8-K 1 form8k_52799.txt WACHOVIA 8-K APRIL 19 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 Report (Date of earliest event reported): April 18, 2001 WACHOVIA CORPORATION (Exact name of registrant as specified in its charter) NORTH CAROLINA No. 1-9021 No. 56-1473727 (State or other jurisdiction of (Commission File Number) (IRS Employer incorporation) Identification No.) 100 North Main Street, Winston-Salem, NC 27101 191 Peachtree Street NE, Atlanta, GA 30303 (Address of principal executive offices) Registrant's telephone number, including area code: Winston-Salem 336-770-5000 Atlanta 404-332-5000 Not applicable. (Former name or former address, if changed since last report) Items 1 - 4. Not Applicable. Item 5. Other Events On April 18, 2001, Wachovia Corporation issued a press release concerning its earnings and results for the first quarter of 2001. Item 6. Not Applicable. Item 7. Exhibits. 99.1 Press Release, dated April 18, 2001, issued by Wachovia Corporation. 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. WACHOVIA CORPORATION By: /s/ Robert S. McCoy, Jr. ------------------------ Name: Robert S. McCoy, Jr. Title: Vice Chairman and Chief Financial Officer Date: April 18, 2001 EX-99.1 2 ex99-1_52799.txt PRESS RELEASE Earnings Announcement [WACHOVIA logo appears here] - -------------------------------------------------------------------------------- Wachovia Corporation Atlanta, GA 30383 Winston-Salem, NC 27150 For Additional Information: Robert S. McCoy, Jr. Vice Chairman and Chief Financial Officer, 336-732-5926 Marsha L. Smunt Investor Relations, 336-732-5788 April 18, 2001 Wachovia Releases First Quarter Financial Results Operating Earnings Per Share of $1.22 Wachovia Corporation's (NYSE: WB) first quarter operating earnings were $1.22 per diluted share compared with $1.30 per diluted share a year earlier. Operating net income, which excludes nonrecurring charges, was $252.5 million compared with $264.5 million for the first quarter of 2000. Revenues rose from the first quarter of 2000 despite the slowing economy. Expenses remained substantially unchanged from a year ago and were down excluding acquisitions. Nonperforming loans declined 18 percent during the period. "We are pleased to report steady earnings in a period of slowing economic conditions," said L.M. Baker Jr., chairman and chief executive officer. "The decrease in nonperforming loans reflects aggressive steps taken to manage credit risk. Expense control initiatives have been successful and will have ongoing benefit to future earnings." Wachovia Corporation (WB) First Quarter ------------- Financial Summary * 2001 2000 ------------------- ---- ----- Operating net income ($ millions) $252.5 $264.5 Operating earnings per diluted share $1.22 $1.30 Total revenue ($ millions) ** $1,130.1 $1,099.6 Return on equity 15.69% 18.60% Return on assets 1.37% 1.56% * excludes nonrecurring charges ** includes taxable equivalent net interest income and other operating revenue Reported net income was $242.1 million or $1.17 per diluted share for the first quarter compared with $244.7 million or $1.20 per diluted share a year ago. Included in first quarter 2001 reported pretax earnings were $13.2 million for the final restructuring charge associated with Wachovia's resource realignment project. First quarter 2000 reported pretax earnings included $28.2 million in nonrecurring charges. -Continued- Total revenues, excluding securities gains, rose $30.5 million from the first quarter of 2000 and were up $24.8 million from the fourth quarter. The net yield on interest earning assets was 3.93 percent as compared with 4.20 percent in the first quarter of 2000 and 3.94 percent in the fourth quarter. Net interest income was up from both periods of 2000 despite the decline in the net yield. Average loans rose $5.1 billion or 10.1 percent from the first quarter of 2000, with good growth in commercial and residential real estate and in other retail loans. Growth occurred in most categories of other operating revenue except investment fees, due to softer market conditions, and credit card income. The provision for loan losses was $121.5 million for the first quarter compared with $73.7 million a year ago and $117.5 million for the prior quarter. At March 31, 2001, the allowance for loan losses represented 1.50 percent of outstanding loans, compared with 1.17 percent a year earlier and 1.50 percent at the end of 2000. Nonperforming loans were down $90 million from December 31, 2000, to $410 million at March 31, 2001. As expected, net loan losses at $118.7 million for the first quarter were above the $73.3 million reported a year ago and the $94.4 million reported in the fourth quarter. As a percentage of average loans outstanding, net loan losses were .85 percent for the first quarter 2001 compared with .58 percent a year earlier and .70 percent in the fourth quarter. Operating expense, excluding nonrecurring charges, increased 1.4 percent from the first quarter of 2000. Adjusting for acquisitions, operating expense decreased approximately 2 percent compared with first quarter 2000. The decrease for the quarter primarily reflects lower incentive compensation and management's ongoing efforts to control costs. On Monday, Wachovia announced a definitive agreement for a proposed merger of equals with First Union Corporation. The transaction is expected to close in the third quarter. The combined company will be the largest financial holding company in the Southeast/East Coast region and the fourth largest nationwide. Earlier this month, Wachovia announced an agreement to sell its consumer credit card business after carefully considering several strategic alternatives. The transaction is expected to close in the second quarter, subject to regulatory approval. Wachovia will hold a conference call to discuss these results on April 18, 2001, at 9:30 a.m. (Eastern Time). The call will be available via the Internet at www.wachovia.com/investor/conference.asp or by calling 913-981-5592. Replays of the conference call will be available from 12:30 p.m. April 18 until midnight April 22 at the same Internet address or by phone (719-457-0820, access code 797962). This news release contains forward-looking statements regarding Wachovia Corporation. All forward-looking statements involve risk and uncertainty and actual results could differ materially from the anticipated results or other expectations expressed in the forward-looking statements. A discussion of factors that could cause actual results to differ materially from those expressed in the forward-looking statements is included in Wachovia's filings with the Securities and Exchange Commission. Additional information can be found in the Investor Relations section of Wachovia's Web site at www.wachovia.com/investor WACHOVIA CORPORATION AND SUBSIDIARIES FINANCIAL SUMMARY Three Months Ended March 31 ----------------------------------------- Percent 2001 2000 Variance ------------ ----------- -------- SUMMARY OF OPERATIONS (thousands, except per share data) Interest income - taxable equivalent $ 1,358,859 $ 1,254,658 8.3 Interest expense 720,355 625,861 15.1 ----------- ----------- Net interest income - taxable equivalent 638,504 628,797 1.5 Taxable equivalent adjustment 8,663 9,301 (6.9) ----------- ----------- Net interest income 629,841 619,496 1.7 Provision for loan losses 121,500 73,666 64.9 ----------- ----------- Net interest income after provision for loan losses 508,341 545,830 (6.9) Other operating revenue 491,586 470,799 4.4 Securities gains (losses) 9,076 167 ----------- ----------- Total other income 500,662 470,966 6.3 Personnel expense 334,673 343,881 (2.7) Merger-related charges - 8,158 Litigation settlement charge - 20,000 Restructuring charge 13,152 - Other expense 283,897 265,939 6.8 ----------- ----------- Total other expense 631,722 637,978 (1.0) Income before income taxes 377,281 378,818 (0.4) Applicable income taxes 135,189 134,111 0.8 ----------- ----------- Net income $ 242,092 $ 244,707 (1.1) =========== =========== Net income per common share: Basic $ 1.17 $ 1.21 (3.3) Diluted $ 1.17 $ 1.20 (2.5) Cash dividends paid per common share $ .60 $ .54 11.1 Average basic shares outstanding 206,061 202,464 1.8 Average diluted shares outstanding 207,569 204,213 1.6 PERFORMANCE RATIOS (averages) Annualized net yield on interest-earning assets 3.93 % 4.20 % Annualized return on assets 1.31 1.44 Annualized return on shareholders' equity 15.04 17.21 Overhead ratio 55.90 58.02 OPERATING PERFORMANCE (1) Net income $ 252,541 $ 264,510 (4.5) Net income per diluted common share $ 1.22 $ 1.30 (6.2) Annualized return on assets 1.37 % 1.56 % Annualized return on shareholders' equity 15.69 18.60 Overhead ratio 54.74 55.46 CASH-BASIS FINANCIAL INFORMATION (1), (2) Net income $ 272,826 $ 281,589 (3.1) Net income per diluted common share $ 1.31 $ 1.38 (5.1) Annualized return on assets 1.51 % 1.69 % Annualized return on shareholders' equity 20.94 24.27 Overhead ratio 52.52 53.57 (1) Excludes the effects of merger-related, litigation settlement and restructuring charges (2) Excludes the effects of purchase accounting-related intangibles - -------------------------------------------------------------------------------- WACHOVIA CORPORATION AND SUBSIDIARIES FINANCIAL SUMMARY Three Months Ended March 31 ----------------------------------------- Percent 2001 2000 Variance ------------ ----------- -------- SELECTED AVERAGE BALANCES (millions) Total assets $ 73,800 $ 67,755 8.9 Loans - net of unearned income 55,659 50,550 10.1 Loans (managed) (2) 59,109 53,435 10.6 Securities 8,987 8,395 7.1 Other interest-earning assets 1,224 1,245 (1.7) Total interest-earning assets 65,870 60,190 9.4 Interest-bearing deposits 35,727 34,873 2.4 Short-term borrowed funds 10,196 8,920 14.3 Long-term debt 10,721 8,081 32.7 Total interest-bearing liabilities 56,644 51,874 9.2 Noninterest-bearing deposits 8,264 8,319 (0.7) Total deposits 43,991 43,192 1.8 Shareholders' equity 6,439 5,688 13.2 CREDIT QUALITY DATA (thousands) Nonperforming assets $436,964 $ 246,107 77.6 Nonperforming loans 410,064 226,176 81.3 Loans past due 90 days or more and still accruing 158,623 126,318 25.6 Net loan losses 118,717 73,325 61.9 Net loan losses (managed) (2) 166,288 107,611 54.5 Net loan losses excluding credit cards 60,938 20,571 196.2 Allowance for loan losses 851,082 595,655 42.9 Nonperforming assets to total loans and foreclosed property .77 % .48 % Annualized net loan losses to average loans .85 .58 Annualized net loan losses to average loans (managed) (2) 1.13 .81 Annualized net loan losses to average loans excluding credit cards .48 .18 Allowance for loans losses to total loans 1.50 1.17 Allowance for loan losses times nonperforming loans 2.08 x 2.63x SELECTED FINANCIAL DATA AT PERIOD-END (millions, except per share data) Total assets $ 75,606 $ 68,817 9.9 Interest-earning assets 67,467 61,137 10.4 Loans - net of unearned income 56,703 51,125 10.9 Loans (managed) (2) 59,977 54,521 10.0 Deposits 45,617 43,716 4.3 Shareholders' equity 6,865 5,846 17.4 Shareholders' equity to total assets 9.08 % 8.50 % Risk-based capital ratios: Tier I capital 7.8 (1) 7.4 Total capital 11.8 (1) 11.2 Per share: Book value $ 32.64 $ 28.88 13.0 Common stock closing price (NYSE) $ 60.25 $ 67.56 (10.8) Common shares outstanding (thousands) 210,335 202,456 (1) Estimated (2) Includes securitized credit card receivables -----END PRIVACY-ENHANCED MESSAGE-----