-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, jzH7GyZICmB/aNcMH+v9ELx0U6epBUI8f0E7+jxPtztFhs39XCmzmY/T+NChbwVO F1/jku8Jgc2CHcOJRRRODQ== 0000950134-95-001589.txt : 199507140000950134-95-001589.hdr.sgml : 19950714 ACCESSION NUMBER: 0000950134-95-001589 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950713 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED COMPANIES FINANCIAL CORP CENTRAL INDEX KEY: 0000217416 STANDARD INDUSTRIAL CLASSIFICATION: MORTGAGE BANKERS & LOAN CORRESPONDENTS [6162] IRS NUMBER: 710430414 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-17459 FILM NUMBER: 95553693 BUSINESS ADDRESS: STREET 1: 4041 ESSEN LN STREET 2: P O BOX 1591 CITY: BATON ROUGE STATE: LA ZIP: 70809 BUSINESS PHONE: 5049246007 11-K 1 FORM 11-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 11-K (Mark One) [ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED] For the Fiscal Year Ended December 31, 1994 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED] Commission File Number 1-7067 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST (Full title of the Plan) 4041 ESSEN LANE BATON ROUGE, LOUISIANA 70809 (Address of the Plan) UNITED COMPANIES FINANCIAL CORPORATION (Name of Issuer) 2 TABLE OF CONTENTS
Page Number ----------- (a) Financial Statements and Supplemental Schedules: Independent Auditors' Report 2 Statement of Net Assets Available for Benefits with Supplemental Fund Information - December 31, 1994 3 Statement of Net Assets Available for Benefits with Supplemental Fund Information - December 31, 1993 4 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1994 5 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1993 6 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1992 7 Notes to Financial Statements 8 Item 27a - Schedule of Assets Held for Investment Purposes - December 31, 1994 13 Item 27d - Schedule of Reportable Transactions - for the year ended December 31, 1994 14 (b) Exhibits: Consent of Deloitte & Touche LLP 16
1 3 INDEPENDENT AUDITORS' REPORT To the Trustee and Participants of United Companies Financial Corporation Employees' Savings Plan and Trust Baton Rouge, Louisiana We have audited the accompanying statements of net assets available for benefits of United Companies Financial Corporation Employees' Savings Plan and Trust (the "Plan"), as of December 31, 1994 and 1993, and the related statements of changes in net assets available for benefits for each of the three years in the period ended December 31, 1994. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 1994 and 1993, and the changes in net assets available for benefits for each of the three years in the period ended December 31, 1994 in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules listed in the Table of Contents are presented for the purpose of additional analysis and are not a required part of the basic financial statements but are supplementary information required by the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental information by fund in the statements of net assets available for benefits and the statements of changes in net assets available for benefits is presented for the purpose of additional analysis rather than to present the net assets available for benefits and changes in net assets available for benefits of the individual funds. The supplemental schedules and supplemental information by fund is the responsibility of the Plan's management. Such supplemental schedules and supplemental information by fund have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. /s/ DELOITTE & TOUCHE LLP Baton Rouge, Louisiana July 12, 1995 2 4 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION December 31, 1994
SUPPLEMENTAL FUND INFORMATION ----------------------------------------------------------------- Stock UCFC Government Emphasis Stock Equity Income Guaranteed Balance Combined Fund Fund Fund Fund Fund ---------- ---------- ---------- ---------- ---------- ---------- ASSETS Investments at fair value: UCFC Common Stock; $2 par value $ 7,573,116 $ 7,573,116 Equity Mutual Fund 690,986 $ 690,986 Investment in The Principal General Fund Account 283,159 $ 283,159 Money-market Fund 40,159 40,159 Investment in The Principal Pooled Separate Accounts 2,240,024 195,329 $ 170,147 $ 508,738 Participant loans 473,368 ------------ ----------- ----------- ------------- ----------- ----------- Total investments 11,300,812 7,808,604 690,986 170,147 283,159 508,738 Contributions receivable 78,983 56,310 2,243 1,214 3,050 5,579 Dividends and interest receivable 25,388 25,388 Other receivables 6,293 ------------ ----------- ----------- ------------- ----------- ----------- Total assets 11,411,476 7,890,302 693,229 171,361 286,209 514,317 ------------ ----------- ----------- ------------- ----------- ----------- LIABILITIES Other liabilities 1,948 1,948 ------------ ----------- ----------- ------------- ----------- ----------- Net assets available for benefits $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209 $ 514,317 ============ =========== =========== ============= =========== =========== SUPPLEMENTAL FUND INFORMATION --------------------------------------------------- Growth Stock Money- Stock Index market Loan Fund Fund Fund Fund ---------- ---------- ---------- ---------- ASSETS Investments at fair value: UCFC Common Stock; $2 par value Equity Mutual Fund Investment in The Principal General Fund Account Money-market Fund Investment in The Principal Pooled Separate Accounts $ 564,452 $ 272,087 $ 529,271 Participant loans $ 473,368 ---------- ---------- ---------- ---------- Total investments 564,452 272,087 529,271 473,368 Contributions receivable 6,350 3,590 647 Dividends and interest receivable Other receivables 6,293 ---------- ---------- ---------- ---------- Total assets 570,802 275,677 529,918 479,661 ---------- ---------- ---------- ---------- LIABILITIES Other liabilities ---------- ---------- ---------- ---------- Net assets available for benefits $ 570,802 $ 275,677 $ 529,918 $ 479,661 ========== ========== ========== ==========
See notes to financial statements. 3 5 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION December 31, 1993
SUPPLEMENTAL FUND INFORMATION ----------------------------------------------------------------- Stock UCFC Government Emphasis Stock Equity Income Guaranteed Balance Combined Fund Fund Fund Fund Fund ------------ ------------ ---------- ----------- ------------ --------- ASSETS Investments at fair value: UCFC Common Stock; $2 par value $10,428,040 $ 10,428,040 Equity Mutual Fund 925,454 $ 925,454 Government Income Mutual Fund 323,149 $ 323,149 Guaranteed Group Annuity Contracts 1,635,567 $ 1,635,567 Investment in The Principal General Fund Account 3,635 3,635 Money-market Fund 41,740 13,425 3,944 Investment in The Principal Pooled Separate Accounts 103,059 12,451 $ 21,201 Participant loans 112,179 ------------ ------------ ---------- ----------- ------------ --------- Total investments 13,572,823 10,428,040 938,879 339,544 1,639,202 21,201 Cash 7,085 8,914 (310) (1,519) Contributions receivable 40,637 26,312 6,307 1,775 Dividends receivable 25,379 25,379 ------------ ------------ ---------- ----------- ------------ --------- Total assets 13,645,924 10,488,645 944,876 339,800 1,639,202 21,201 ------------ ------------ ---------- ----------- ------------ --------- LIABILITIES Other liabilities 19,147 13,049 1,909 665 1,748 ------------ ------------ ---------- ----------- ------------ --------- Net assets available for benefits $ 13,626,777 $ 10,475,596 $ 942,967 $ 339,135 $ 1,637,454 $ 21,201 ============ ============ ========== =========== ============ ========= SUPPLEMENTAL FUND INFORMATION ----------------------------------------------------- Growth Stock Money- Stock Index market Loan Fund Fund Fund Fund ----------- --------- ---------- ------------- ASSETS Investments at fair value: UCFC Common Stock; $2 par value Equity Mutual Fund Government Income Mutual Fund Guaranteed Group Annuity Contracts Investment in The Principal General Fund Account Money-market Fund $ 24,371 Investment in The Principal Pooled Separate Accounts $ 2,144 $ 572 66,691 Participant loans $ 112,179 ----------- --------- ---------- ------------- Total investments 2,144 572 91,062 112,179 Cash Contributions receivable 6,243 Dividends receivable ----------- --------- ---------- ------------- Total assets 2,144 572 97,305 112,179 ----------- --------- ---------- ------------- LIABILITIES Other liabilities 15 1,761 ----------- --------- ---------- ------------- Net assets available for benefits $ 2,144 $ 572 $ 97,290 $ 110,418 =========== ========= ========== =============
See notes to financial statements. 4 6 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION For the year ended December 31, 1994
SUPPLEMENTAL FUND INFORMATION --------------------------------------------------------------------- Stock UCFC Government Emphasis Stock Equity Income Guaranteed Balance Combined Fund Fund Fund Fund Fund -------------- -------------- ---------- ----------- ------------ --------- Net assets available for benefits - January 1, 1994 $ 13,626,777 $ 10,475,596 $ 942,967 $ 339,135 $ 1,637,454 $ 21,201 Additions: Interest and dividend income 191,609 100,444 6,702 54,070 Contributions Employee 1,557,079 852,005 67,870 41,504 81,041 202,557 Employer 1,036,172 1,036,172 ------------- ------------- ---------- ----------- ------------ -------- Total 2,593,251 1,888,177 67,870 41,504 81,041 202,557 Net appreciation (depreciation) of investments (2,562,834) (2,624,519) 27,401 3,174 (2,179) ------------- ------------- ---------- ----------- ------------ -------- Total additions 222,026 (635,898) 101,973 44,678 135,111 200,378 ------------- ------------- ---------- ----------- ------------ -------- Deductions: Administrative expenses 40,410 38,708 411 426 534 Distributions to participants 2,398,865 1,518,401 166,377 64,488 8,694 21,279 ------------- ------------- ---------- ----------- ------------ -------- Total deductions 2,439,275 1,557,109 166,377 64,899 9,120 21,813 ------------- ------------- ---------- ----------- ------------ -------- Net transfers between funds - (394,235) (185,334) (147,553) (1,477,236) 314,551 ------------- ------------- ---------- ----------- ------------ -------- Income and changes in net assets available for benefits (2,217,249) (2,587,242) (249,738) (167,774) (1,351,245) 493,116 ------------- ------------- ---------- ----------- ------------ -------- Net assets available for benefits - December 31, 1994 $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209 $ 514,317 ============= ============ ========= ========== =========== ========= SUPPLEMENTAL FUND INFORMATION ----------------------------------------------------- Growth Stock Money- Stock Index market Loan Fund Fund Fund Fund ---------- ----------- --------- ----------- Net assets available for benefits - January 1, 1994 $ 2,144 $ 572 $ 97,290 $ 110,418 Additions: Interest and dividend income 30,393 Contributions Employee 159,409 114,639 38,054 Employer ---------- ----------- --------- ----------- Total 159,409 114,639 38,054 - Net appreciation (depreciation) of investments 1,083 1,921 30,285 ---------- ----------- --------- ----------- Total additions 160,492 116,560 68,339 30,393 ---------- ----------- --------- ----------- Deductions: Administrative expenses 450 394 (513) Distributions to participants 3,876 17,684 577,439 20,627 ---------- ----------- --------- ----------- Total deductions 4,326 18,078 576,926 20,627 ---------- ----------- --------- ----------- Net transfers between funds 412,492 176,623 941,215 359,477 ---------- ----------- --------- ----------- Income and changes in net assets available for benefits 568,658 275,105 432,628 369,243 ---------- ----------- --------- ----------- Net assets available for benefits - December 31, 1994 $ 570,802 $ 275,677 $ 529,918 $ 479,661 ========== =========== ========== ==========
See notes to financial statements. 5 7 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION For the year ended December 31, 1993
SUPPLEMENTAL FUND INFORMATION ------------------------------------------------------------------- Stock UCFC Government Emphasis Stock Equity Income Guaranteed Balanced Combined Fund Fund Fund Fund Fund ------------- ------------ ---------- ---------- ----------- --------- Net assets available for benefits - January 1, 1993 $ 4,617,261 $ 2,536,564 $ 554,237 $ 147,326 $ 1,202,963 Additions: Interest and dividend income 212,074 97,877 19,454 16,642 65,438 Contributions Employee 1,031,768 491,765 187,917 69,996 208,199 $ 21,155 Employer 367,580 367,908 (328) ------------- ------------ ---------- ---------- ----------- --------- Total 1,399,348 859,673 187,917 69,996 207,871 21,155 Reimbursement of administrative expenses 997 577 122 29 268 1 Net appreciation (depreciation) of investments 8,662,788 8,596,721 66,474 (726) 45 ------------- ------------ ---------- ---------- ----------- --------- Total additions 10,275,207 9,554,848 273,967 85,941 273,577 21,201 ------------- ------------ ---------- ---------- ----------- --------- Deductions: Administrative expenses 104,914 58,284 12,591 6,105 19,937 Distributions to participants 1,160,777 800,301 82,961 30,044 227,616 ------------- ------------ ---------- ---------- ----------- --------- Total deductions 1,265,691 858,585 95,552 36,149 247,553 - ------------- ------------ ---------- ---------- ----------- --------- Net transfers between funds - (757,231) 210,315 142,017 408,467 ------------- ------------ ---------- ---------- ----------- --------- Income and changes in net assets available for benefits 9,009,516 7,939,032 388,730 191,809 434,491 21,201 ------------- ------------ ---------- ---------- ----------- --------- Net assets available for benefits - December 31, 1993 $ 13,626,777 $ 10,475,596 $ 942,967 $ 339,135 $ 1,637,454 $ 21,201 ============= ============= ========== ========== =========== ========= SUPPLEMENTAL FUND INFORMATION ----------------------------------------------------- Growth Stock Money- Stock Index market Loan Fund Fund Fund Fund ---------- ----------- ---------- ----------- Net assets available for benefits January 1, 1993 $ 6,763 $ 169,408 Additions: Interest and dividend income 1,317 11,346 Contributions Employee $ 2,122 $ 572 50,042 Employer ---------- ----------- ---------- ----------- Total 2,122 572 50,042 - Reimbursement of administrative expenses Net appreciation (depreciation) of investments 22 252 ---------- ----------- ---------- ----------- Total additions 2,144 572 51,611 11,346 ---------- ----------- ---------- ----------- Deductions: Administrative expenses 2,011 5,986 Distributions to participants 874 18,981 ---------- ----------- ---------- ----------- Total deductions - - 2,885 24,967 ---------- ----------- ---------- ----------- Net transfers between funds 41,801 (45,369) ---------- ----------- ---------- ----------- Income and changes in net assets available for benefit 2,144 572 90,527 (58,990) ---------- ----------- ---------- ----------- Net assets available for benefits December 31, 1993 $ 2,144 $ 572 $ 97,290 $ 110,418 ========== =========== ========== ===========
See notes to financial statements. 6 8 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION For the year ended December 31, 1992
SUPPLEMENTAL FUND INFORMATION -------------------------------------------------------------------------------- UCFC Government Money- Stock Equity Income Guaranteed market Loan Combined Fund Fund Fund Fund Fund Fund ----------- ----------- ---------- ---------- ------------ ---------- ---------- Net assets available for benefits - January 1, 1992 $4,288,289 $2,766,479 $439,774 $ 67,987 $ 938,093 $ 75,956 Additions: Interest and dividend income 192,791 85,989 7,629 6,756 80,616 $ 54 11,747 Contributions Employee 1,071,534 664,855 148,948 33,125 219,683 4,923 Employer 285,166 262,570 7,978 1,636 12,982 ---------- ---------- -------- --------- ---------- --------- -------- Total 1,356,700 927,425 156,926 34,761 232,665 4,923 - Net depreciation of investments (458,604) (450,608) (3,553) (4,387) (56) ---------- ---------- -------- --------- ---------- --------- -------- Total additions 1,090,887 562,806 161,002 37,130 313,225 4,977 11,747 ---------- ---------- -------- --------- ---------- --------- -------- Deductions: Administrative expenses 59,161 36,422 5,638 1,122 15,027 17 935 Distributions to participants 702,754 427,867 96,463 7,961 156,522 13,941 ---------- ---------- -------- --------- ---------- --------- -------- Total deductions 761,915 464,289 102,101 9,083 171,549 17 14,876 ---------- ---------- -------- --------- ---------- --------- -------- Net transfers between funds - (328,432) 55,562 51,292 123,194 1,803 96,581 ---------- ---------- -------- --------- ---------- --------- -------- Income and changes in net assets available for benefits 328,972 (229,915) 114,463 79,339 264,870 6,763 93,452 ---------- ---------- -------- --------- ---------- --------- -------- Net assets available for benefits- December 31, 1992 $4,617,261 $2,536,564 $554,237 $ 147,326 $1,202,963 $ 6,763 $169,408 ========== ========== ======== ========= ========== ========= ========
See notes to financial statements. 7 9 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the United Companies Financial Corporation Employees' Savings Plan and Trust (the "Plan") are prepared on the accrual basis. Investments are reported at fair value. Fair value for investments in the UCFC Stock Fund, the Equity Fund, the Government Income Fund, the Guaranteed Fund, the Money-market Fund, the Stock Emphasis Balanced Fund, the Growth Stock Fund, and the Stock Index Fund, is determined by reference to market prices on the valuation date when available. The guaranteed group annuity contracts and participant loans are valued at cost, which approximates fair value. 2. ELIGIBILITY, CONTRIBUTIONS AND INVESTMENT PROGRAMS The following description of the Plan's provisions provides general information regarding eligibility, contributions and investment programs. Participants should refer to the Plan document for a more complete description of the Plan's provisions. Employees are eligible to participate in the Plan provided they have completed one year of service and have attained the age of twenty-one prior to the election date. The employee must be a full-time employee (working at least 30 hours a week) and complete 1,000 hours of service during the one year waiting period. Participating employees may revise the direction of their contribution once per each calendar year quarter. UCFC provides matching contributions of a percentage of the participant's contribution up to 5% of the participant's salary. Salary for purposes of the Plan is limited to $150,000 for any Plan year, adjusted for cost of living increases. From July 1, 1992 to December 31, 1993, the matching employer contributions were 50% of the participant's contribution deferral and were invested in UCFC stock. Beginning January 1, 1994, the matching employer contributions are 100% of the participant's contribution deferral. Participants are 100% vested in employee contributions ("elective deferrals") and earnings thereon. Vesting in the employer contributions and earnings thereon is based on years of service. Participants generally have no vesting rights until completion of five (5) years of service with the Company at which time they will become 100% vested in employer matching contributions. The non-vested portion of a participant's account will be forfeited upon distribution of the participant's vested portion or incurring 5 consecutive one-year breaks in service. Amounts forfeited may be used to reduce the employer contributions in the following Plan year. 8 10 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS (Continued) Employee contributions are supplemented by the matching employer contributions, and the employee contributions are invested as directed by the participant in one or more of the following eight funds: (a) UCFC Stock Fund - Contributions to this fund are invested primarily in $2 par value common stock of United Companies Financial Corporation ("UCFC"). The number of participating employees in this fund was 1,384 and 743 at December 31, 1994 and 1993, respectively. (b) Equity Fund - Contributions to this fund are invested primarily in a professionally managed and diversified portfolio of common stocks of high quality companies. The number of employees participating in this fund was 265 and 219 at December 31, 1994 and 1993, respectively. (c) Government Income Fund - Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily in obligations issued or guaranteed by the U.S. Government or its agencies. The number of participating employees in this fund was 187 and 153 at December 31, 1994 and 1993, respectively. (d) Guaranteed Fund - Contributions to this fund are invested in the general account of Principal Mutual Life Insurance Company, primarily with an insurance company at a guaranteed interest rate for a specified period of time. The number of participating employees in this fund was 297 and 259 at December 31, 1994 and 1993, respectively. (e) Stock Emphasis Balanced Fund - Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, weighted toward equity accounts. The number of participating employees in this fund was 269 and 4 at December 31, 1994 and 1993, respectively. (f) Growth Stock Fund - Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily in common stocks of large established companies whose earnings are expected to grow at above average rates. The number of participating employees in this fund was 226 and 2 at December 31, 1994 and 1993, respectively. (g) Stock Index Fund - Contributions to this fund are in pooled separate accounts of Principal Mutual Life Insurance Company, invested in the common stock of 9 11 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS (Continued) those companies included in the Standard & Poor's 500 Stock Index. The number of participating employees in this fund was 188 and 1 at December 31, 1994 and 1993, respectively. (h) Money-market Fund - Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily in money market instruments. The number of participating employees in this fund was 338 and 167 at December 31, 1994 and 1993, respectively. Investment options (c), (e), (f), (g) and (h) are offered through a pooled separate account, The Principal Pooled Separate Account, and are classified as such in the statement of financial condition. The Plan allows participants to borrow from the Plan up to 50% of each participant's vested interest in the Plan. Participant loans are considered another investment option of the Plan and require the approval of the Plan Administrator. Loan payments, including principal and interest, must be made no less frequently than quarterly, with level amortization over the term of the loan. The maximum loan term is 5 years. 3. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 The following is a reconciliation of net assets available for benefits as reflected in the financial statements to Form 5500:
December 31, ------------------------------------------- 1994 1993 ------------------- ------------------- Net assets available for benefits per the financial statements $ 11,409,528 $ 13,626,777 Accrued dividend income (25,388) (25,379) Accrued fees payable 1,948 19,147 Other - (3,062) ------------------- ------------------- Net assets available for benefits per Form 5500 $ 11,386,088 $ 13,617,483 =================== ===================
10 12 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS (Continued) The following is a reconciliation of changes in net assets according to the financial statements to Form 5500:
Year Ended December 31, 1994 -------------------- Changes in net assets per the financial statements $ (2,217,249) Add: Accrued dividend income, December 31, 1993 25,379 payable Accrued fees payable, 1,948 December 31, 1994 Other, December 31, 1993 3,062 Less: Accrued dividend and interest income December 31, 1994 (25,388) Accrued fees payable, December 31, 1993 (19,147) ------------------- Changes in net assets per Form 5500 $ (2,231,395) ===================
4. INCOME TAXES A determination letter dated August 10, 1988 has been received from the Internal Revenue Service to the effect that the Plan as currently in effect is qualified as to form under Section 401(a) of the Code; the trust is exempt from Federal income tax under Section 501(a) of the Code; and employer contributions paid to the trust under the Plan will be allowable to the Employer as Federal income tax deductions subject to the conditions and limitations of Section 404 of the Code. It is intended that the Plan, as modified by the provisions of the Tax Reform Act of 1986, will continue to meet the requirements of Section 401(a) of the Code. Accordingly, no provisions for Federal income taxes have been made in the accompanying financial statements. 11 13 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST NOTES TO FINANCIAL STATEMENTS (Continued) 5. OTHER The following represents investments in excess of 5 percent of the current value of net assets available for benefits as of December 31, 1994 and 1993:
Investment December 31, 1994 - -------------------------------------------------------- ----------------- UCFC Common Stock $ 7,573,116 Tower Capital Appreciation Mutual Fund $ 690,986
December 31, 1993 ----------------- UCFC Common Stock $ 10,428,040 CIGNA Guaranteed Group Annuity Contracts $ 1,635,567 Tower Capital Appreciation Mutual Fund $ 925,454
12 14 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1994
IDENTITY DESCRIPTION CURRENT OF ISSUE OF INVESTMENT COST VALUE -------------------------- ---------------------------------- --------------- --------------- * United Companies United Companies Financial Corporation Financial Corporation, $2 par value common stock, 279,193.2 shares $ 3,245,494 $ 7,573,116 Hibernia National Bank Tower Capital Appreciation Mutual Fund 670,280 690,986 Principal Mutual Guaranteed Account Life Insurance Company 283,159 283,159 Principal Mutual Pooled Separate Accounts 2,222,400 2,240,024 Life Insurance Company Dreyfuss Investments Government Cash Management Fund 40,159 40,159 Participant Loans Range of Interest Rates From 7.0% to 12.0% - 473,368 --------------- --------------- $ 6,461,492 $ 11,300,812 =============== ===============
*Denotes "Exempt related party transaction". 13 15 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1994
Total Price at Identity of Description Transaction Number of Net Party Involved of Asset Date Transactions Gain - --------------------- ---------------------- -------------- ------------- ------------ Purchase Transactions - --------------------- United Companies United Companies Financial Corporation Financial Corporation, $2 par value common stock $ 2,721,431 149 ============== ============= Principal Mutual Pooled Separate Life Insurance Accounts Company $ 3,156,420 93 ============== ============= Selling Transactions - -------------------- United Companies United Companies Financial Corporation Financial Corporation $2 par value Common Stock $ 2,828,858 137 $ 681,641 ============== ============= ============== Principal Mutual Pooled Separate Life Insurance Accounts Company $ 2,723,470 72 $ 12,003 ============== ============= ==============
14 16 SIGNATURE The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Plan Administrative Committee of the United Companies Financial Corporation Employees' Savings Plan and Trust have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized. UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN AND TRUST By: /s/ JESSE O. GRIFFIN ------------------------------------- Jesse O. Griffin Sr. Vice President and Controller Date: July 12, 1995 15 17 INDEX TO EXHIBITS EXHIBIT NO. DESCRIPTION - ------- ----------- 23 Independent Auditor's Consent EX-23 2 AUDITOR'S CONSENT 1 EXHIBIT 23 INDEPENDENT AUDITOR'S CONSENT We consent to the incorporation by reference in Registration Statement No. 33-17366 of United Companies Financial Corporation on Form S-8 of our report dated July 12, 1995, appearing in this Annual Report on Form 11-K of United Companies Financial Corporation Employees' Savings Plan and Trust for the year ended December 31, 1994. /s/ DELOITTE & TOUCHE LLP Baton Rouge, Louisiana July 12, 1995 16 -----END PRIVACY-ENHANCED MESSAGE-----