United Companies reports record earnings for year-ended 1994.BATON ROUGE Baton Rouge (băt`ən r  zh) [Fr.,=red stick], city (1990 pop. 219,531), state capital and seat of East Baton Rouge parish, SE La. , La.--(BUSINESS WIRE)--Feb. 3, 1995--United Companies
Financial Corporation (NASDAQ NASDAQin full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :UCFC UCFC United Community Funds and Councils of America ) today reported record results for the year ended Dec. 31, 1994. Net income was $49.5 million (or $3.48 per share) for the year -- more than four times the previous company record of $11.6 million earned in 1993 -- and 1994 return on equity was 32.1%. "During 1994, United Companies eclipsed nearly every existing company record for profitability, revenues, sales and production, and in doing so completed the best year in the 48-year history of our organization," said J. Terrell Terrell (tĕr`əl), city (1990 pop. 12,490), Kaufman co., N Tex.; inc. 1883. In a farm area, cattle and horses are raised and there are nurseries; peaches, cotton, and wheat are grown. Brown, President & Chief Executive Officer of United Companies. Fourth quarter net income was $5.9 million (or $0.41 per share), which included a net loss (after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. ) of $5.2 million (or $0.36 per share) in the Company's title insurance subsidiary. "Excluding the title division, we earned $54.6 million (or $3.83 per share) for the year, and $11.0 million (or $0.77 per share) for the quarter," said Brown. "Despite the most dramatic rise in interest rates in years, we continued to demonstrate our ability to grow our lending and annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. businesses." Lending Operations: United Companies produced $908.8 million in home equity loans in 1994, a 68% increase over the record of $539.9 million set in 1993. This rise in production was achieved even while implementing a series of pricing increases during the past year in an effort to offset the unprecedented rise in bond rates. United Companies topped off the year by setting a new monthly loan production record of $95.7 million in December December: see month. , 1994 -- including $15.0 million in loans through its new bulk purchase asset acquisition program. This compares to $61.7 million in loan volume for December of 1993. The rise in total 1994 production reflects a more than 32% increase in "same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of ," along with the aggressive expansion of UCFC's retail, wholesale and financial institution distribution systems. United Companies Lending, the retail division, now operates 142 branches in 39 states coast-to-coast coast-to-coast adj. Reaching, airing, or traveling from one coast to another, especially across a nation or continent: a coast-to-coast flight; coast-to-coast sports coverage on TV. , having expanded from 116 offices in 23 states in 1993, and outlets in only 17 southeastern states in 1992. Unicor Mortgage, the wholesale operation begun in mid- mid- pref. Middle: midbrain. 1992, now provides loans through more than 1,100 brokers and correspondents in 31 states, compared to 320 brokers in 16 states the prior year. Ginger ginger, common name for members of the Zingiberaceae, a family of tropical and subtropical perennial herbs, chiefly of Indomalaysia. The aromatic oils of many are used in making condiments, perfumes, and medicines, especially stimulants and preparations to ease Mae, a new division established in early 1994 to provide loans directly through banks, thrifts and credit unions, now serves 117 financial institutions in 15 states after only one year in business. Growth was also seen in loan servicing Loan servicing is the process by which a mortgage bank or subservicing firm collects the timely payment of interest and principal from borrowers. The level of service varies depending on the type loan and the terms negotiated between the firm and the investor seeking their services. and sales. The total portfolio of loans serviced by United Companies cleared the $2 billion mark for the first time. Loan sales into the secondary market approached $1 billion for 1994 -- the highest level in company history. Home equity credit quality and loan performance also improved. Delinquencies has a percentage of loans serviced declined in 1994 -- continuing a four-year trend in which delinquencies have been reduced nearly two percentage points. The percent of non-performing assets and charge-offs were also reduced on a year-to-year basis, while average credit losses were once again well below 1%. Meanwhile, pre-payments on UCFC's home-equity loans Home-Equity Loan A consumer loan secured by a second mortgage, allowing home owners to borrow against their equity in the home. The loan is based on the difference between the homeowner's equity and the home's current market value. continued to remain relatively stable, in contrast to the fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. pre-payment rates in the conventional mortgage market. Insurance Operations: Record production was also achieved by United Companies Life Insurance, which markets primarily annuities through more than 350 independent agencies and financial institutions in 47 states. Annuity sales were a record $249.7 million, a 20% increase over $207.7 million in deposits collected in 1993. Finally, in the title insurance division the results reflect estimated losses primarily resulting from claims due to agency escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. shortages and the posting of an increase in the loss reserve provision. Most of these items came to light subsequent to year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. . Management is currently in the process of reviewing appropriate strategic alternatives for the future of the title insurance division. United Companies, founded in 1946, is a $2 billion diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services group of companies active nationwide in the mortgage lending and insurance industries. A publicly owned Publicly owned can refer to:
The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under the symbol "UCFC." -0-
Three Months Ended Year
(Dollars in thousands, December 31 December 31
except per share amounts) 1994 1993 1994 1993
Mortgage Lending: Revenues $ 44,794 $ 38,419 $177,601 $120,639 Operating income before taxes $ 17,069 $ 17,785 $ 81,155 $ 46,295 Life Insurance/Annuities: Revenues $ 34,990 $ 35,582 $138,129 $140,179 Operating income before taxes $ 1,873 $ 2,177 $ 5,886 $ 2,635 Title Insurance: Revenues $ 13,044 $ 10,222 $ 45,546 $ 25,107 Operating income (loss) before taxes $ (7,947) $ 520 $ (7,751) $ 1,311 Consolidated: Revenues $ 92,584 $ 83,527 $359,780 $284,811 Operating income before taxes $ 9,253 $ 18,780 $ 76,323 $ 44,372 Net income $ 5,872 $ 12,387 $ 49,534 $ 11,575 Per share (primary) $ 0.41 $ 0.93 $ 3.48 $ 1.01 Per share (fully diluted) $ 0.41 $ 0.93 $ 3.48 $ 0.98 Return on equity 32.1% 9.3%
United Companies Financial Corporation
Selected Operating Data
(Dollars in Thousands)
For the Three Months Ended For the Year Ended
December 31 December 31
1994 1993 +/(-) 1994 1993 +/(-)
Mortgage Lending/ Production Home equity loan production $ 252,079 $ 181,613 39% $ 908,821 $ 539,868 68% Number of home equity loans produced 6,243 4,297 45% 22,052 13,857 59% Average home equity loan production amount $ 40 $ 42 (5%) $ 41 $ 39 5% Mortgage Lending/ Home Equity Loan Sales: Public securi- tizations of loans sold $ 254,854 $ 154,994 64% $ 957,647 $ 541,942 77% Loans sold to third parties $ 254,854 $ 165,017 54% $ 977,653 $ 462,873 111% Gain on loans sold (%) 8.3% 12.8% (35%) 8.99% 12.8% (30%) Gain on loans sold ($ amount) $ 21,186 $ 21,140 0% $ 86,735 $ 59,220 46% Gross interest spread retained on loans sold 4.10% 6.17% (34%) 4.49% 6.06% (26%) Mortgage lending/ servicing: Total loan portfolio serviced (at period end)/a $2,032,405 $1,568,781 30% Home equity loan portfolio serviced (at period end)/a $1,683,698 $1,125,139 50% Home equity loans 30+ days past due (at period end)/a 7.67% 8.26% (7%) Loan servicing income $ 4,996 $ 3,030 65% $ 19,892 $ 15,568 28% Insurance lending/ annuities: Annuity premiums $ 62,765 $ 43,504 44% $ 249,737 $ 207,682 20% Annuity reserves (at period end) $1,425,973 $1,294,983 10% Insurance lending/ life insurance investments: Investment revenues $ 31,705 $ 31,119 2% $ 126,378 $ 121,303 4% Average net interest margin 2.53% 2.46% 3% 2.73% 2.20% 24% Insurance lending/ title insurance: Title insurance premiums $ 12,686 $ 9,946 (28%) $ 44,667 $ 24,435 83%
(a) Includes $13.8 million subserviced by others in which UCLC
is master servicer.
CONTACT: United Companies Financial Corporation, Baton Rouge Louis Louis, titular duke of Burgundy Louis, 1682–1712, titular duke of Burgundy; grandson of King Louis XIV of France. He became heir to the throne on the death (1711) of his father, Louis the Great Dauphin. J. Resweber, 1-800-234-UCFC, ext. 2385 |
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