Union Planters Corporation Announces Record First Quarter Cash Operating Earnings of $.87 Per Share.Business Editors MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--April 19, 2001 Union Planters Planters is an American snack food company under Kraft Foods manufacturing, best known for its nuts and the Mr. Peanut icon that symbolizes them. Started by Italian immigrants Amedeo Obici and Mario Peruzzi in Wilkes-Barre, Pennsylvania, in 1906, it was incorporated in 1908 Corporation (NYSE NYSE See: New York Stock Exchange :UPC (Universal Product Code) The standard bar code printed on retail merchandise, which is administered by GS1 US, Brussels, Belgium and Lawrenceville, NJ (www.gs1.org). ) today reported cash operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before for the first quarter of 2001 of $120.3 million, or $.87 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, an increase of 4.8% over the $.83 per diluted share for the same period in 2000. Cash operating earnings exclude goodwill and other intangibles amortization and nonoperating items, net of taxes. These earnings provided a return on average assets of 1.39%, a return on average common equity of 16.44%, and a return on average tangible common equity of 24.38%. Net earnings for the first quarter 2001 were $106.4 million, or $.77 per diluted share, an increase of 5.5% compared to $.73 per diluted share for the same period in 2000. Net earnings represented a return on average assets of 1.23% and a return on average common equity of 14.54%. The results for the first quarter of 2001 include the acquisition of Jefferson Savings Bancorp, Inc., the parent company of Jefferson Heritage Bank, a federal savings bank Noun 1. federal savings bank - a federally chartered savings bank FSB savings bank - a thrift institution in the northeastern United States; since deregulation in the 1980s they offer services competitive with many commercial banks . Jefferson is headquartered in Ballwin, Missouri Ballwin is a city in St. Louis County, Missouri, United States. The population was 30,264 as of 2006[1]. It was named by Money Magazine in 2005 as 64th on the list of the 100 best cities in America. and has locations in Missouri Missouri, state, United States Missouri (mĭz  r`ē, –ə), one of the midwestern states of the United States. and Texas. The
acquisition was completed on February 12, 2001 and accounted for as a
purchase."We are pleased to report a solid first quarter," said Jackson Jackson. 1 City (1990 pop. 37,446), seat of Jackson co., S Mich., on the Grand River; inc. 1857. It is an industrial and commercial center in a farm region. W. Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. , Chairman and Chief Executive Officer. "We are especially pleased with the quality and sources of our earnings this quarter. We continue to focus on the basics, increasing noninterest income as a percentage of total revenue, improving our operating performance, and keeping our credit quality strong. Our net interest margin was up from last quarter due to the recent decline in interest rates, and we expect this trend to continue. We made impressive strides in the growth of our noninterest income and our operating efficiency ratio for the quarter continued to improve. Given the current economic environment, industry nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. are increasing. We are impacted primarily in the residential mortgage portfolio. We have historically experienced very low losses relative to nonperforming assets and we expect this trend to continue." Net Interest Income Net interest income on a fully taxable-equivalent basis was $320.3 million for the first quarter of 2001, an increase of $10.5 million or 3.4% over the $309.8 million reported for the prior quarter, and down slightly from the $323.9 million recorded in the same quarter of last year. The increase compared to prior quarter is attributable to continued growth in loan production, improved pricing of loan products and an overall decline in interest rates. The interest-rate spread and net interest margin for the first quarter of 2001 improved to 3.34% and 4.05%, respectively, from the 3.20% and 3.95%, respectively, reported for the fourth quarter of 2000. Average loans (excluding FHA/VA loans) were $24.9 billion for the first quarter of 2001 compared to $21.5 billion for the same period in 2000 and compared to $23.7 billion for the fourth quarter of 2000. Net of loan divestitures and the Jefferson acquisition, average loans increased during the first quarter by 12.7% compared to the same quarter last year. This increase was driven by 22.2% growth in residential real estate loans and 11.8% growth in commercial, financial and agricultural loans. Consistent with current economic conditions, a slight decline in commercial and consumer loan growth was experienced in the first quarter of 2001 compared to the prior quarter. This was offset, however, by the continued increase in production of residential mortgage loans. Average deposits were $23.1 billion for the first quarter of 2001 compared to $23.0 billion for the fourth quarter of 2000 and $23.3 billion for the same quarter last year. The decline in total deposits has stabilized sta·bi·lize v. sta·bi·lized, sta·bi·liz·ing, sta·bi·liz·es v.tr. 1. To make stable or steadfast. 2. but the environment continues to be very competitive, which will require continual, close monitoring of the overall deposit pricing strategy. Noninterest Income Growth in noninterest income continues to be a priority. Noninterest income was $164.9 million for the first quarter of 2001, an increase of $18.9 million, or 13.0%, from the prior quarter and an increase of $37.3 million, or 29.3%, from the same quarter last year. The strong growth in noninterest income is attributable to successful efforts in several areas. A more consistent administration of competitive pricing and collections on all account relationships across the entire franchise resulted in a 27.1%, or $11.4 million, increase in customer fee income in the first quarter of 2001, compared to the same quarter in 2000. In addition, the lower interest-rate environment and the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of home mortgage loans resulted in double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" growth in mortgage banking revenues in the first quarter. Bank card income, primarily merchant servicing income, trust fees, factoring commissions and income from an investment in a broker dealer operation also showed good growth compared to the first quarter of 2000. Strategic Outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. Inc. (SOI (Silicon On Insulator) A chip architecture that increases transistor switching speed by reducing capacitance (build-up of electrical charges in the transistor's elements), and thus reducing the discharge time. The power requirement is also reduced in some designs. ), which was acquired in April 2000, accounted for $6.0 million of the increase in noninterest income over the same quarter last year. Noninterest income as a percent of total revenue increased to 34.7% in the first quarter of 2001, compared to 28.8% in the same quarter last year. Efficiency The efficiency ratio for the first quarter of 2001 was 56.31%, compared to 57.1% for the fourth quarter of 2000 and 56.68% for the same quarter in 2000. Noninterest expense for the first quarter of 2001 was $289.7 million, compared to $276.2 million in the prior quarter, and $271.7 million in the same quarter last year. The Jefferson and SOI acquisitions accounted for $7.8 million of the increase in noninterest expense over the first quarter of 2000. The lower interest-rate environment resulted in increased amortization of mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights as well as a valuation adjustment, which increased noninterest expense by $5.7 million over the same quarter last year. Increases in goodwill and other intangibles amortization related primarily to the Jefferson and SOI acquisitions. Credit Quality As expected, nonperforming assets increased to $232.3 million, or .95% of loans and foreclosed properties at March 31, 2001, compared to $177.9 million, or .75%, respectively, at December 31, 2000 and $172.4 million, or .79%, as of March 31, 2000. The Jefferson acquisition accounted for 25% of the increase, while the majority of the remaining increase was within the residential mortgage portfolio. Given the current economy, nonperforming assets are expected to continue to trend upward over the next few quarters. However, the risk of losses will be mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by the diversity of the loan portfolio and the conservative underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. practices across the banking franchise. The provision for losses on loans for the first quarter of 2001 was $25.3 million, or .41% of average loans, compared to $20.1 million, or .34% of average loans, for the fourth quarter 2000 and compared to $17.3 million, or .32% of average loans, for the first quarter last year. Net charge-offs as a percentage of average loans were .37% for the first quarter of 2001, a decrease from the .42% reported in fourth quarter 2000, and an increase from .26% over the same quarter in 2000. The allowance for losses on loans totaled $342.1 million at March 31, 2001, equal to 1.41% of loans and 195% of nonperforming loans. Capital Strength Total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. was $3.1 billion at March 31, 2001. This represented 8.72% of period-end assets of $35.4 billion. The leverage ratio was 6.61%. Share Purchase Plan In February 2000, the Board of Directors approved a plan to purchase 7.1 million shares of common stock, of which 1,610,000 shares have been purchased to date. In addition, management announced its intent to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. the shares issued in the Jefferson acquisition. As of March 31, 2001, 2,191,000 shares of the 4,371,000 shares issued had been repurchased. The Company Union Planters Corporation, headquartered in Memphis, Tennessee For the ancient Egyptian capital, see . Memphis is a city in the southwest corner of Tennessee, and the county seat of Shelby County. Memphis rises above the Mississippi River on the 4th Chickasaw Bluff just below the mouth of the Wolf River. , is a multi-state bank holding company with 1,068 ATMs and 835 banking offices in Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , Arkansas Arkansas, river, United States Arkansas (ärkăn`zəs, är`kənsô'), river, c.1,450 mi (2,330 km) long, rising in the Rocky Mts., central Colo. , Florida, Illinois Illinois, river, United States Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway. , Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). , Iowa, Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. , Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , Mississippi, Missouri, Tennessee, and Texas. At
December 31, 2000, Union Planters Corporation was the 27th largest bank
holding company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. based on total assets. The
Company's common stock is traded on the New York Stock Exchange New York Stock Exchange (NYSE)World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol UPC and is included in the S & P 500 Index. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc management's expectations regarding the impact of the reduction in interest rates on the net interest margin and expected trends in nonperforming assets and the related risk of losses. These statements are deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such statements are based on management's current expectations and the current economic environment. Union Planters' actual strategies and results in future periods may differ materially from those currently expected due to various risks and uncertainties. A discussion of factors affecting business and prospects is contained in Union Planters' filings with the Securities and Exchange Commission, specifically "Risk Factors" in the 2000 Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and "Cautionary Statement Regarding Forward-Looking Information" in Union Planters' 2000 Annual Report to Shareholders. Union Planters undertakes no obligation to update any forward-looking statements to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date on which the forward-looking statement is made or to reflect the occurrence of unanticipated events. For additional information, including Supplemental Financial Information for the first quarter of 2001, visit Union Planters' web site at http://www.unionplanters.com, access Union Planters Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. date April 19, 2001 which was filed with the Securities and Exchange Commission, or contact: Bobby L. Doxey, Senior Executive Vice President and Chief Financial Officer, 901/580-4565 (Two Page Financial Attachment Follows)
Union Planters Corporation
Financial Highlights (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
March 31,
2001 2000
------------------
Income statement amounts
Net interest income
Actual $311,026 $314,750
Taxable-equivalent basis 320,292 323,872
Provision for losses on loans 25,300 17,303
Noninterest income
Investment securities gains 25 --
Other 164,889 127,569
Noninterest expense 289,672 271,705
Earnings before income taxes 160,968 153,311
Income taxes 54,601 51,974
Net earnings 106,367 101,337
Net earnings applicable to common shares 105,981 100,925
Operating earnings (1) 106,352 101,337
Cash operating earnings (2) 120,272 114,659
Per common share data
Net earnings
- basic $ .78 $ .74
- diluted .77 .73
Operating earnings (1)
- basic .78 .74
- diluted .77 .73
Cash operating earnings (2)
- basic .88 .84
- diluted .87 .83
Cash dividends .50 .50
Book value 22.39 19.77
Balances at end of period
Loans, excluding FHA/VA
government-insured/guaranteed loans $ 24,294,794 $ 21,730,479
Allowance for losses on loans 342,138 345,821
Nonperforming assets
Nonaccrual loans 174,027 130,483
Restructured loans 1,401 1,811
Foreclosed properties 56,835 40,098
Loans 90 days past due 109,705 81,738
FHA/VA government-insured/guaranteed loans 303,177 479,255
Nonaccrual 3,216 5,767
90 days past due 129,776 216,185
Available for sale investment securities
Amortized cost 6,432,965 7,572,300
Fair value 6,523,197 7,341,647
Unrealized gain (loss), net of
taxes 56,881 (145,837)
Total assets 35,423,470 33,350,510
Total deposits 23,605,227 23,370,070
Total shareholders' equity 3,088,107 2,698,580
Total common equity 3,068,662 2,678,038
Tier 1 capital 2,255,613 2,093,134
Union Planters Corporation
Financial Highlights (Unaudited)
(Dollars in thousands, except per share data)
Three Months Ended
March 31,
2001 2000
-------------------
Average balances
Loans, excluding FHA/VA
government-insured/guaranteed loans $24,904,776 $21,531,467
FHA/VA government-insured/guaranteed
loans 290,423 499,234
Investment securities 6,633,985 7,645,215
Earning assets 32,103,877 30,048,208
Total assets 35,103,823 33,252,814
Total deposits 23,114,141 23,286,293
Interest-bearing liabilities 27,546,058 25,781,245
Demand deposits 3,890,023 4,027,414
Shareholders' equity 2,976,605 2,841,875
Common equity 2,957,073 2,821,109
Other supplemental information
Net earnings
Return on average assets 1.23% 1.23%
Return on average common equity 14.54 14.39
Cash operating earnings (2)
Return on average assets 1.39 1.39
Return on average common equity 16.44 16.29
Return on average tangible assets 1.43 1.43
Return on average tangible common equity 24.38 24.77
Allowance for losses on loans to loans (3) 1.41 1.59
Nonperforming loans to loans (3) .72 .61
Nonperforming assets to loans and
foreclosed properties (3) .95 .79
Net charge-offs of loans $ 22,600 $ 13,782
Net charge-offs as a percentage of
average loans (3) .37% .26%
Common shares outstanding (end of
period, in thousands) 137,051 135,487
Weighted average shares outstanding
(in thousands)
Basic 136,600 136,546
Diluted 138,179 138,073
Yield on earning assets (taxable-equivalent
basis) 8.31% 8.17%
Rate on interest-bearing liabilities 4.97 4.47
Interest rate spread (taxable-equivalent
basis) 3.34 3.70
Net interest income as a percentage of
average earning assets (taxable-equivalent
basis) 4.05 4.34
Shareholders' equity to total assets 8.72 8.09
Leverage ratio 6.61 6.48
(1) Earnings before nonoperating items, net of taxes
(2) Earnings before goodwill and other intangibles amortization
and nonoperating items, net of taxes
(3) Excludes FHA/VA government-insured/guaranteed loans.
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