-----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, EdIAD1FfHw8PakhAHdYuZ+2UjT43aDY5n4KgUtCg4c+63HU1PThsEFsjM1rSdS54 IB8n41Re2KLiyygZg6XcUw== 0000950134-97-004966.txt : 19970630 0000950134-97-004966.hdr.sgml : 19970630 ACCESSION NUMBER: 0000950134-97-004966 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970627 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNITED COMPANIES FINANCIAL CORP CENTRAL INDEX KEY: 0000217416 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 710430414 STATE OF INCORPORATION: LA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07067 FILM NUMBER: 97631214 BUSINESS ADDRESS: STREET 1: 4041 ESSEN LN STREET 2: P O BOX 1591 CITY: BATON ROUGE STATE: LA ZIP: 70809 BUSINESS PHONE: 5049870000 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, 1996 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 (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, 1996 3 Statement of Net Assets Available for Benefits with Supplemental Fund Information - December 31, 1995 4 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1996 5 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1995 6 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1994 7 Notes to Financial Statements 8 Item 27a - Schedule of Assets Held for Investment Purposes - December 31, 1996 12 Item 27d - Schedule of Reportable Transactions - for the year ended December 31, 1996 13 (b) Exhibits: Independent Auditors' Consent 16
1 3 INDEPENDENT AUDITORS' REPORT To the Trustee and Participants of United Companies Financial Corporation Employees' Savings Plan Baton Rouge, Louisiana We have audited the accompanying statements of net assets available for benefits of United Companies Financial Corporation Employees' Savings Plan (the "Plan") as of December 31, 1996 and 1995, and the related statements of changes in net assets available for benefits for each of the three years in the period ended December 31, 1996. 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, 1996 and 1995 and the changes in net assets available for benefits for each of the three years in the period ended December 31, 1996 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 June 24, 1997 2 4 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION December 31, 1996
SUPPLEMENTAL FUND INFORMATION ---------------------------------------------------- Tower UCFC Capital Government Guaranteed Stock Appreciation Securities Interest Combined Fund Fund Account Account ------------- ------------ ------------ ------------ ----------- ASSETS Investments at fair value: UCFC Common Stock; $2 par value................ $ 14,520,282 $ 14,520,282 Equity Mutual Fund.............. 760,785 $ 760,785 Investment in The Principal General Fund Account........ 641,719 $ 641,719 Investment in The Principal Pooled Separate Accounts.... 3,389,819 $ 191,539 Participant loans............... 466,600 ------------- ------------ ------------ ------------ ----------- Total investments........... 19,779,205 14,520,282 760,785 191,539 641,719 Dividends and interest receivable.. 42,793 42,793 ------------- ------------ ------------ ------------ ----------- Total assets................ 19,821,998 14,563,075 760,785 191,539 641,719 ------------- ------------ ------------ ------------ ----------- Net assets available for benefits.. $ 19,821,998 $ 14,563,075 $ 760,785 $ 191,539 $ 641,719 ============= ============ ============ ============ =========== SUPPLEMENTAL FUND INFORMATION --------------------------------------------------------- Stock Medium Emphasis Company Stock Money- Balanced Blend Index 500 market Loan Account Account Account Account Fund ----------- ----------- --------- ----------- ---------- ASSETS Investments at fair value: UCFC Common Stock; $2 par value................ Equity Mutual Fund.............. Investment in The Principal General Fund Account........ Investment in The Principal Pooled Separate Accounts.... $ 887,105 $ 1,125,710 $ 691,862 $ 493,603 Participant loans............... $ 466,600 ----------- ----------- --------- ----------- ---------- Total investments........... 887,105 1,125,710 691,862 493,603 466,600 Dividends and interest receivable.. ----------- ----------- --------- ----------- ---------- Total assets................ 887,105 1,125,710 691,862 493,603 466,600 ----------- ----------- --------- ----------- ---------- Net assets available for benefits.. $ 887,105 $ 1,125,710 $ 691,862 $ 493,603 $ 466,600 =========== =========== ========= =========== ==========
See notes to financial statements. 3 5 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION December 31, 1995
SUPPLEMENTAL FUND INFORMATION ---------------------------------------------------------------- Tower Stock UCFC Capital Government Guaranteed Emphasis Stock Appreciation Securities Interest Balanced Combined Fund Fund Account Account Account ------------- ------------ ------------ ------------- ----------- ----------- ASSETS Investments at fair value: UCFC Common Stock; $2 par value................ $ 15,076,759 $ 15,076,759 Equity Mutual Fund.............. 803,525 $ 803,525 Investment in The Principal General Fund Account........ 546,070 $ 546,070 Money-market Fund............... 1,850 1,850 Investment in The Principal Pooled Separate Accounts.... 2,984,289 $ 215,279 $ 840,681 Participant loans............... 412,222 ------------- ------------ ------------ ------------- ----------- ----------- Total investments........... 19,824,715 15,078,609 803,525 215,279 546,070 840,681 Contributions receivable........... 93,802 68,806 2,130 1,078 3,296 5,012 Dividends and interest receivable.. 28,355 28,355 Other receivables.................. 6,721 ------------- ------------ ------------ ------------- ----------- ----------- Total assets................ 19,953,593 15,175,770 805,655 216,357 549,366 845,693 ------------- ------------ ------------ ------------- ----------- ----------- LIABILITIES Other liabilities.................. 4,179 4,179 ------------- ------------ ------------ ------------- ----------- ----------- Net assets available for benefits.. $ 19,949,414 $ 15,171,591 $ 805,655 $ 216,357 $ 549,366 $ 845,693 ============= ============ ============ ============= =========== =========== SUPPLEMENTAL FUND INFORMATION --------------------------------------------- Medium Company Stock Money- Blend Index 500 market Loan Account Account Account 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.... $ 845,910 $ 519,375 $ 563,044 Participant loans............... $ 412,222 ----------- --------- ----------- ---------- Total investments........... 845,910 519,375 563,044 412,222 Contributions receivable........... 7,587 4,422 1,471 Dividends and interest receivable.. Other receivables.................. 6,721 ----------- --------- ----------- ---------- Total assets................ 853,497 523,797 564,515 418,943 ----------- --------- ----------- ---------- LIABILITIES Other liabilities.................. ----------- --------- ----------- ---------- Net assets available for benefits.. $ 853,497 $ 523,797 $ 564,515 $ 418,943 =========== ========= =========== ==========
See notes to financial statements. 4 6 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION For the year ended December 31, 1996
SUPPLEMENTAL FUND INFORMATION --------------------------------------------------------- Tower UCFC Capital Government Guaranteed Stock Appreciation Securities Interest Combined Fund Fund Account Account ------------ ------------- ------------ ------------- ----------- Net assets available for benefit January 1, 1996.............. $19,949,414 $ 15,171,591 $ 805,655 $ 216,357 $ 549,366 Additions: Interest and dividend income. 404,058 165,331 172,900 36,779 Contributions Employee................. 2,427,897 1,338,405 116,492 66,042 123,088 Employer................. 1,550,212 1,550,212 ----------- ------------ ----------- ------------ ----------- Total................ 3,978,109 2,888,617 116,492 66,042 123,088 Net appreciation of investments............... 918,327 463,963 7,291 ----------- ------------ ----------- ------------ ----------- Total additions....... 5,300,494 3,517,911 289,392 73,333 159,867 ----------- ------------ ----------- ------------ ----------- Deductions: Administrative expenses...... 54,744 48,605 494 994 Distributions to participants............. 5,373,166 4,027,547 277,472 31,965 114,401 ----------- ------------ ----------- ------------ ----------- Total deductions...... 5,427,910 4,076,152 277,472 32,459 115,395 ----------- ------------ ----------- ------------ ----------- Net transfers between funds..... (50,275) (56,790) (65,692) 47,881 ----------- ------------ ----------- ------------ ----------- Net change in net assets available for benefits....... (127,416) (608,516) (44,870) (24,818) 92,353 ----------- ------------ ----------- ------------ ----------- Net assets available for benefit December 31, 1996............ $19,821,998 $ 14,563,075 $ 760,785 $ 191,539 $ 641,719 =========== ============ =========== ============ =========== SUPPLEMENTAL FUND INFORMATION --------------------------------------------------------------- Stock Medium Emphasis Company Stock Money- Balanced Blend Index 500 market Loan Account Account Account Account Fund ----------- ----------- ---------- --------- ---------- Net assets available for benefit January 1, 1996.............. $ 845,693 $ 853,497 $ 523,797 $564,515 $ 418,943 Additions: Interest and dividend income. 29,048 Contributions Employee................. 186,544 324,196 230,110 43,020 Employer................. ----------- ---------- --------- -------- ---------- Total................ 186,544 324,196 230,110 43,020 Net appreciation of investments............... 132,238 167,220 119,836 27,779 ----------- ---------- --------- -------- ---------- Total additions....... 318,782 491,416 349,946 70,799 29,048 ----------- ---------- --------- -------- ---------- Deductions: Administrative expenses...... 1,042 1,321 841 1,447 Distributions to participants............. 237,722 173,720 135,186 286,813 88,340 ---------- ---------- --------- -------- ---------- Total deductions...... 238,764 175,041 136,027 288,260 88,340 ---------- ---------- --------- -------- ---------- Net transfers between funds..... (38,606) (44,162) (45,854) 146,549 106,949 ---------- ---------- --------- -------- ---------- Net change in net assets available for benefits....... 41,412 272,213 168,065 (70,912) 47,657 ---------- ---------- --------- -------- ---------- Net assets available for benefit December 31, 1996............ $ 887,105 $1,125,710 $ 691,862 $493,603 $ 466,600 ========== ========== ========= ======== ==========
See notes to financial statements 5 7 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION For the year ended December 31, 1995
SUPPLEMENTAL FUND INFORMATION ---------------------------------------------------------- Tower UCFC Capital Government Guaranteed Stock Appreciation Securities Interest Combined Fund Fund Account Account ------------ ------------ ------------ ------------- ------------- Net assets available for benefits - January 1, 1995................. $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209 Additions: Interest and dividend income.... 210,633 129,473 23,145 28,508 Contributions Employee.................... 1,856,665 936,352 73,359 52,774 121,550 Employer.................... 1,304,713 1,303,072 1,641 ------------ ----------- ----------- ------------- ------------- Total................... 3,161,378 2,239,424 73,359 52,774 123,191 Net appreciation of investments.................. 8,377,400 7,662,010 157,523 40,326 ------------ ----------- ----------- ------------- ------------- Total additions.......... 11,749,411 10,030,907 254,027 93,100 151,699 ------------ ----------- ----------- ------------- ------------- Deductions: Administrative expenses......... 40,223 29,169 862 768 Distributions to participants................ 3,169,302 2,457,300 67,902 88,162 28,118 ------------ ----------- ----------- ------------- ------------- Total deductions......... 3,209,525 2,486,469 67,902 89,024 28,886 ------------ ----------- ----------- ------------- ------------- Net transfers between funds........ (261,201) (73,699) 40,920 140,344 ------------ ----------- ----------- ------------- ------------- Net change in net assets available for benefits.......... 8,539,886 7,283,237 112,426 44,996 263,157 ------------ ----------- ----------- ------------- ------------- Net assets available for benefits - December 31, 1995............... $ 19,949,414 $15,171,591 $ 805,655 $ 216,357 $ 549,366 ============ =========== =========== ============= ============= SUPPLEMENTAL FUND INFORMATION ----------------------------------------------------------------------- Stock Medium Emphasis Company Stock Money- Balanced Blend Index 500 market Loan Account Account Account Account Fund ----------- ------------- ---------- ----------- ----------- Net assets available for benefits - January 1, 1995................. $ 514,317 $ 570,802 $ 275,677 $ 529,918 $ 479,661 Additions: Interest and dividend income.... 29,507 Contributions Employee.................... 206,513 260,710 159,162 46,245 Employer.................... ----------- ------------ ---------- ----------- ----------- Total................... 206,513 260,710 159,162 46,245 Net appreciation of investments.................. 140,392 200,361 126,410 50,378 ----------- ------------ ---------- ----------- ----------- Total additions.......... 346,905 461,071 285,572 96,623 29,507 ----------- ------------ ---------- ----------- ----------- Deductions: Administrative expenses......... 857 853 828 6,886 Distributions to participants................ 62,823 63,505 68,900 265,581 67,011 ----------- ------------ ---------- ----------- ----------- Total deductions......... 63,680 64,358 69,728 272,467 67,011 ----------- ------------ ---------- ----------- ----------- Net transfers between funds........ 48,151 (114,018) 32,276 210,441 (23,214) Net change in net assets available for benefits.......... 331,376 282,695 248,120 34,597 (60,718) ----------- ------------ ---------- ----------- ----------- Net assets available for benefits - December 31, 1995............... $ 845,693 $ 853,497 $ 523,797 $ 564,515 $ 418,943 =========== ============ ========== =========== ===========
See notes to financial statements. 6 8 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION For the year ended December 31, 1994
SUPPLEMENTAL FUND INFORMATION --------------------------------------------------------- Tower UCFC Capital Government Guaranteed Stock Appreciation Securities Interest Combined Fund Fund Account Account ------------ ------------- ------------- ------------ ------------ Net assets available for benefits - January 1, 1994 $ 13,626,777 $ 10,475,596 $ 942,967 $ 339,135 $ 1,637,454 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 Employer 1,036,172 1,036,172 ------------- ------------- --------- ---------- ----------- Total 2,593,251 1,888,177 67,870 41,504 81,041 Net appreciation (depreciation) of investments (2,562,834) (2,624,519) 27,401 3,174 ------------- ------------- --------- ---------- ----------- Total additions 222,026 (635,898) 101,973 44,678 135,111 ------------- ------------- --------- ---------- ----------- Deductions: Administrative expenses 40,410 38,708 411 426 Distributions to participants 2,398,865 1,518,401 166,377 64,488 8,694 ------------- ------------- --------- ---------- ----------- Total deductions 2,439,275 1,557,109 166,377 64,899 9,120 ------------- ------------- --------- ---------- ----------- Net transfers between funds (394,235) (185,334) (147,553) (1,477,236) ------------- ------------- --------- ---------- ----------- Net change in net assets available for benefits (2,217,249) (2,587,242) (249,738) (167,774) (1,351,245) ------------- ------------- --------- ---------- ----------- Net assets available for benefits - December 31, 1994 $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209 ============= ============= ========= ========== =========== SUPPLEMENTAL FUND INFORMATION --------------------------------------------------------------------- Stock Medium Emphasis Company Stock Money- Balanced Blend Index 500 market Loan Account Account Account Account Fund ----------- ------------- ---------- ----------- ----------- Net assets available for benefits - January 1, 1994 $ 21,201 $ 2,144 $ 572 $ 97,290 $ 110,418 Additions: Interest and dividend income 30,393 Contributions Employee 202,557 159,409 114,639 38,054 Employer -------- ----------- ----------- --------- ----------- Total 202,557 159,409 114,639 38,054 Net appreciation (depreciation) of investments (2,179) 1,083 1,921 30,285 -------- ----------- ----------- --------- ----------- Total additions 200,378 160,492 116,560 68,339 30,393 -------- ----------- ----------- --------- ----------- Deductions: Administrative expenses 534 450 394 (513) Distributions to participants 21,279 3,876 17,684 577,439 20,627 -------- ----------- ----------- --------- ----------- Total deductions 21,813 4,326 18,078 576,926 20,627 -------- ----------- ----------- --------- ----------- Net transfers between funds 314,551 412,492 176,623 941,215 359,477 -------- ----------- ----------- --------- ----------- Net change in net assets available for benefits 493,116 568,658 275,105 432,628 369,243 -------- ----------- ----------- --------- ----------- Net assets available for benefits - December 31, 1994 $514,317 $ 570,802 $ 275,677 $ 529,918 $ 479,661 ======== =========== =========== ========= ===========
See notes to financial statements. 7 9 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the United Companies Financial Corporation Employees' Savings Plan (the "Plan") are prepared on the accrual basis. Investments are reported at fair value. Fair value for investments in the UCFC Stock Fund, the Tower Capital Appreciation Fund, the Government Securities Account, the Guaranteed Interest Account, the Money-market Account, the Stock Emphasis Balanced Account, the Medium Company Blend Account, and the Stock Index 500 Account, 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 complete 1,000 hours of service during the one year waiting period to participate in the Plan. 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. The matching employer contributions are 100% of the participant's contribution deferral and are invested in UCFC stock. 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. 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"). (b) Tower Capital Appreciation Fund -- Contributions to this fund are invested primarily in a professionally managed and diversified portfolio of common stocks of high quality companies. 8 10 (c) Government Securities Account -- 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. (d) Guaranteed Interest Account -- Contributions to this fund are invested in the general account of Principal Mutual Life Insurance Company at a guaranteed interest rate for a specified period of time. (e) Stock Emphasis Balanced Account -- Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, weighted toward equity accounts. (f) Medium Company Blend Account -- Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily in common stocks of medium sized companies that generate long term capital growth. (g) Stock Index 500 Account -- Contributions to this fund are in pooled separate accounts of Principal Mutual Life Insurance Company, invested in the common stock of those companies included in the Standard & Poor's 500 Stock Index. (h) Money-market Account -- Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily in money market instruments. Investment options (c), (e), (f), (g) and (h) are offered through a pooled separate account, The Principal Pooled Separate Accounts, 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, -------------------------------------- 1996 1995 ------------- -------------- Net assets available for benefits per the financial statements........................$ 19,821,998 $ 19,949,414 Accrued dividend income................................... (42,793) (28,355) Accrued fees payable...................................... -- 4,179 ------------ -------------- Net assets available for benefits per Form 5500.......................................$ 19,779,205 $ 19,925,238 ============ =============
9 11 The following is a reconciliation of changes in net assets according to the financial statements to Form 5500:
Year Ended December 31, 1996 ---------------- Changes in net assets per the financial statements...................... $ (127,416) Add: Accrued dividend income, December 31, 1995.............................. 28,355 Less: Accrued dividend income December 31, 1996.............................. (42,793) Accrued fees payable, December 31, 1995.............................. (4,179) ------------- Changes in net assets per Form 5500..................................... $ (146,033) =============
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. 10 12 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, 1996 and 1995:
Investment December 31, 1996 - ---------- ----------------- UCFC Common Stock $ 14,520,282 Medium Company Blend Account $ 1,125,710
Investment December 31, 1995 - ---------- ----------------- UCFC Common Stock $ 15,076,759
11 13 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1996
IDENTITY DESCRIPTION CURRENT OF ISSUE OF INVESTMENT COST VALUE -------------------------- ------------------------------------ --------------- ------------- * United Companies United Companies Financial Corporation Financial Corporation, $2 par value common stock, 545,362.7 shares $ 6,906,849 $ 14,520,282 Hibernia National Bank Tower Capital Appreciation Fund 506,576 760,785 Principal Mutual Guaranteed Interest Account 641,980 641,719 Life Insurance Company Principal Mutual Pooled Separate Accounts 2,668,733 3,389,819 Life Insurance Company Participant Loans Range of Interest Rates From 7% to 12% -- 466,600 --------------- ------------- $ 10,724,138 $ 19,779,205 =============== =============
*Denotes "Exempt related party transaction". 12 14 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1996
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 $ 3,928,558 189 ============= ============== Selling Transactions - -------------------- United Companies United Companies Financial Corporation Financial Corporation $2 par value Common Stock $ 4,904,084 150 $ 3,162,518 ============= ============== ============
13 15 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 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 By: /s/ JESSE O. GRIFFIN --------------------------------- Jesse O. Griffin Sr. Vice President and Controller Date: June 27, 1997 14 16 INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION - ------- ----------- 23 Independent Auditors' Consent
15 EX-23 2 CONSENT OF INDEPENDENT AUDITORS 1 EXHIBIT 23 INDEPENDENT AUDITORS' 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 June 24, 1997, appearing in this Annual Report on Form 11-K of United Companies Financial Corporation Employees' Savings Plan for the year ended December 31, 1996. /s/ DELOITTE & TOUCHE LLP Baton Rouge, Louisiana June 24, 1997 16 -----END PRIVACY-ENHANCED MESSAGE-----