Union Planters Corporation Reports Record First Quarter 1998 Earnings

Strategic Insights -

Union Planters Corporation, a multi-state bank holding company, has announced its record first quarter 1998 earnings, with net earnings of $74.6 million, a 12.4% increase from the same period in 1997. The company's diluted earnings per common share were $.86 per share, compared to $.79 per share for the same period a year ago. Benjamin W. Rawlins, Jr., Chairman and Chief Executive Officer, attributed the company's success to a good increase in noninterest income while maintaining control over operating expenses and holding the net interest margin steady.

Key Takeaways:

  • Net earnings for the first quarter 1998 were $74.6 million, a 12.4% increase from the same period in 1997.
  • Diluted earnings per common share for the first quarter were $.86 per share, compared to $.79 per share for the same period a year ago.
  • The company's return on average assets was 1.68% and return on average common equity was 17.50% in the first quarter 1998.
  • Net interest income for the quarter was $190.7 million, approximately the same as last year's $193.5 million.
  • Average earning assets remained almost level, with a net interest margin of 4.80% in both periods.
  • The company's allowance for losses on loans was $223.8 million, or 1.95% of loans and 240% of nonperforming loans, at March 31, 1998.
  • Nonperforming assets at quarter end were $115.8 million, or 1.01% of loans and foreclosed properties.
  • Noninterest income increased 15% for the first quarter to $95.7 million, compared to $83.0 million a year ago.

Sources:

  • Business Wire, "Union Planters Corporation Reports Record First Quarter 1998 Earnings" (April 16, 1998)
  • Union Planters Corporation, press release (April 16, 1998)