-----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, NdZx6BLcSXQwkaSpxQaQamNZwXfGuqojbrpNpuvoae++jSOiUUjg1Bn2yAJNuo2k I5ag/azZHR64unFXiDCMwQ== 0000950134-98-005503.txt : 19980626 0000950134-98-005503.hdr.sgml : 19980626 ACCESSION NUMBER: 0000950134-98-005503 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980625 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: SEC FILE NUMBER: 001-07067 FILM NUMBER: 98654254 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 For the Fiscal Year Ended December 31, 1997 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, 1997 3 Statement of Net Assets Available for Benefits with Supplemental Fund Information - December 31, 1996 4 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1997 5 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1996 6 Statement of Changes in Net Assets Available for Benefits with Supplemental Fund Information - for the year ended December 31, 1995 7 Notes to Financial Statements 8 Item 27a - Schedule of Assets Held for Investment Purposes - December 31, 1997 11 Item 27b - Schedule of Loans or Fixed Income Obligations - December 31, 1997 12 Item 27d - Schedule of Reportable Transactions - for the year ended December 31, 1997 13 Signature 14 (b) Exhibits: Index to Exhibits 15
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, 1997 and 1996, and the related statements of changes in net assets available for benefits for each of the three years in the period ended December 31, 1997. 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, 1997 and 1996 and the changes in net assets available for benefits for each of the three years in the period ended December 31, 1997 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 22, 1998 2 4 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS WITH SUPPLEMENTAL FUND INFORMATION December 31, 1997
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................ $ 9,566,312 $ 9,566,312 Equity Mutual Fund.............. 1,048,450 $ 1,048,450 Investment in The Principal General Fund Account........ 608,485 $ 608,485 Investment in The Principal Pooled Separate Accounts.... 4,799,755 $ 180,372 $ 1,098,704 Participant loans............... 530,036 ------------ ----------- ------------- ----------- ------------ ----------- Total investments........... 16,553,038 9,566,312 1,048,450 180,372 608,485 1,098,704 Contributions receivable........... 389,014 314,193 8,318 5,934 9,196 Dividends and interest receivable.. 48,650 48,650 Other receivables.................. 7,614 ------------ ----------- ------------- ----------- ------------ ----------- Total assets................ 16,998,316 9,929,155 1,056,768 180,372 614,419 1,107,900 ------------ ----------- ------------- ----------- ------------ ----------- Net assets available for benefits.. $ 16,998,316 $ 9,929,155 $ 1,056,768 $ 180,372 $ 614,419 $ 1,107,900 ============ =========== ============= =========== ============ =========== SUPPLEMENTAL FUND INFORMATION ---------------------------------------------------------------------------------------------- Medium Small Company Stock Money- Company Internat'l Real Blend Index 500 market Value Stock Estate Loan Account Account 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.... $ 1,594,072 $ 1,412,914 $ 375,865 $ 57,311 $ 71,901 $ 8,616 Participant loans............... $ 530,036 ------------ ----------- ----------- ------------ ----------- ----------- ------------ Total investments........... 1,594,072 1,412,914 375,865 57,311 71,901 8,616 530,036 Contributions receivable........... 16,473 20,766 3,692 4,449 5,180 813 Dividends and interest receivable.. Other receivables.................. 7,614 ------------ ----------- ----------- ------------ ----------- ----------- ------------ Total assets................ 1,610,545 1,433,680 379,557 61,760 77,081 9,429 537,650 ------------ ----------- ----------- ------------ ----------- ----------- ------------ Net assets available for benefits.. $ 1,610,545 $ 1,433,680 $ 379,557 $ 61,760 $ 77,081 $ 9,429 $ 537,650 ============ =========== =========== ============ =========== =========== ============
3 5 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 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................ $ 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 $ 887,105 Participant loans............... 466,600 ------------ ----------- ------------- ----------- ------------ ----------- Total investments........... 19,779,205 14,520,282 760,785 191,539 641,719 887,105 Dividends and interest receivable.. 42,793 42,793 ------------ ----------- ------------- ----------- ------------ ----------- Total assets................ 19,821,998 14,563,075 760,785 191,539 641,719 887,105 ------------ ----------- ------------- ----------- ------------ ----------- Net assets available for benefits.. $ 19,821,998 $14,563,075 $ 760,785 $ 191,539 $ 641,719 $ 887,105 ============ =========== ============= =========== ============ =========== 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........ Investment in The Principal Pooled Separate Accounts.... $ 1,125,710 $ 691,862 $ 493,603 Participant loans............... $ 466,600 ------------ ----------- ----------- ------------ Total investments........... 1,125,710 691,862 493,603 466,600 Dividends and interest receivable.. ------------ ----------- ----------- ------------ Total assets................ 1,125,710 691,862 493,603 466,600 ------------ ----------- ----------- ------------ Net assets available for benefits.. $ 1,125,710 $ 691,862 $ 493,603 $ 466,600 ============ =========== =========== ============
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, 1997
SUPPLEMENTAL FUND INFORMATION ----------------------------------------------------------------------- Tower Stock UCFC Capital Government Guaranteed Emphasis Stock Appreciation Securities Interest Balanced Combined Fund Fund Account Account Account ------------ ------------- ------------ ------------- ----------- ----------- Net assets available for benefits - January 1, 1997................. $ 19,821,998 $ 14,563,075 $ 760,785 $ 191,539 $ 641,719 $ 887,105 Additions: Interest and dividend income.... 373,428 185,854 114,862 39,277 Contributions Employee.................... 3,251,457 1,475,930 201,602 31,821 141,981 237,637 Employer.................... 1,785,165 1,785,165 ------------ ------------- ------------ ------------- ----------- ----------- Total.................... 5,036,622 3,261,095 201,602 31,821 141,981 237,637 ------------ ------------- ------------ ------------- ----------- ----------- Total additions.......... 5,410,050 3,446,949 316,464 31,821 181,258 237,637 ------------ ------------- ------------ ------------- ----------- ----------- Deductions: Net depreciation (appreciation) of investments.............. 5,598,180 6,496,657 (100,478) (19,429) (163,944) Administrative expenses......... 35,034 26,040 2,973 1,212 1,155 Distributions to participants... 2,600,518 1,433,231 117,601 23,847 204,325 153,673 ------------ ------------- ------------ ------------- ----------- ----------- Total deductions......... 8,233,732 7,955,928 17,123 7,391 205,537 (9,116) ------------ ------------- ------------ ------------- ----------- ----------- Net transfers between funds........ (124,941) (3,358) (35,597) (3,021) (25,958) ------------ ------------- ------------ ------------- ----------- ----------- Net change in net assets available for benefits.......... (2,823,682) (4,633,920) 295,983 (11,167) (27,300) 220,795 ------------ ------------- ------------ ------------- ----------- ----------- Net assets available for benefits - December 31, 1997............... $ 16,998,316 $ 9,929,155 $ 1,056,768 $ 180,372 $ 614,419 $ 1,107,900 ============ ============= ============ ============= =========== =========== SUPPLEMENTAL FUND INFORMATION -------------------------------------------------------------------------------------------- Medium Small Company Stock Money- Company Internat'l Real Blend Index 500 market Value Stock Estate Loan Account Account Account Account Account Account Fund ----------- ------------ ---------- ------------ ------------ ---------- ----------- Net assets available for benefits - January 1, 1997................. $ 1,125,710 $ 691,862 $ 493,603 $ 466,600 Additions: 33,435 Interest and dividend income.... Contributions Employee.................... 469,519 514,426 63,056 $ 52,669 $ 56,149 $ 6,667 Employer.................... ----------- ------------ ---------- ------------ ------------ ---------- ----------- Total.................... 469,519 514,426 63,056 52,669 56,149 6,667 ----------- ------------ ---------- ------------ ------------ ---------- ----------- Total additions.......... 469,519 514,426 63,056 52,669 56,149 6,667 33,435 ----------- ------------ ---------- ------------ ------------ ---------- ----------- Deductions: Net depreciation (appreciation) of investments.............. (320,706) (274,391) (21,257) 355 1,615 (242) Administrative expenses......... 1,461 1,172 948 29 44 Distributions to participants... 268,049 104,870 209,046 10 5 85,861 ----------- ------------ ---------- ------------ ------------ ---------- ----------- Total deductions......... (51,196) (168,349) 188,737 394 1,664 (242) 85,861 ----------- ------------ ---------- ------------ ------------ ---------- ----------- Net transfers between funds........ (35,880) 59,043 11,635 9,485 22,596 2,520 123,476 ----------- ------------ ---------- ------------ ------------ ---------- ----------- Net change in net assets available for benefits.......... 484,835 741,818 (114,046) 61,760 77,081 9,429 71,050 ----------- ------------ ---------- ------------ ------------ ---------- ----------- Net assets available for benefits - December 31, 1997............... $ 1,610,545 $ 1,433,680 $ 379,557 $ 61,760 $ 77,081 $ 9,429 $ 537,650 =========== ============ ========== ============ ============ ========== ===========
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, 1996
SUPPLEMENTAL FUND INFORMATION ---------------------------------------------------------------------- Tower Stock UCFC Capital Government Guaranteed Emphasis Stock Appreciation Securities Interest Balanced Combined Fund Fund Account Account Account ------------ ------------ ----------- ------------ ----------- ---------- Net assets available for benefits - January 1, 1996................. $ 19,949,414 $ 15,171,591 $ 805,655 $ 216,357 $ 549,366 $ 845,693 Additions: Interest and dividend income.... 404,058 165,331 172,900 36,779 Contributions Employee.................... 2,427,897 1,338,405 116,492 66,042 123,088 186,544 Employer.................... 1,550,212 1,550,212 ------------ ------------ ----------- ------------ ----------- ---------- Total.................... 3,978,109 2,888,617 116,492 66,042 123,088 186,544 Net appreciation of investments.................. 918,327 463,963 7,291 132,238 ------------ ------------ ----------- ------------ ----------- ---------- Total additions.......... 5,300,494 3,517,911 289,392 73,333 159,867 318,782 ------------ ------------ ----------- ------------ ----------- ---------- Deductions: Administrative expenses......... 54,744 48,605 494 994 1,042 Distributions to participants................ 5,373,166 4,027,547 277,472 31,965 114,401 237,722 ------------ ------------ ----------- ------------ ----------- ---------- Total deductions......... 5,427,910 4,076,152 277,472 32,459 115,395 238,764 ------------ ------------ ----------- ------------ ----------- ---------- Net transfers between funds........ (50,275) (56,790) (65,692) 47,881 (38,606) ------------ ------------ ----------- ------------ ----------- ---------- Net change in net assets available for benefits.......... (127,416) (608,516) (44,870) (24,818) 92,353 41,412 ------------ ------------ ----------- ------------ ----------- ---------- Net assets available for benefits - December 31, 1996............... $ 19,821,998 $ 14,563,075 $ 760,785 $ 191,539 $ 641,719 $ 887,105 ============ ============ =========== ============ =========== ========== SUPPLEMENTAL FUND INFORMATION --------------------------------------------------- Medium Company Stock Money- Blend Index 500 market Loan Account Account Account Fund ----------- --------- --------- ---------- Net assets available for benefits - January 1, 1996................. $ 853,497 $ 523,797 $ 564,515 $ 418,943 Additions: Interest and dividend income.... 29,048 Contributions Employee.................... 324,196 230,110 43,020 Employer.................... ----------- --------- --------- ---------- Total.................... 324,196 230,110 43,020 Net appreciation of investments.................. 167,220 119,836 27,779 ----------- --------- --------- ---------- Total additions.......... 491,416 349,946 70,799 29,048 ----------- --------- --------- ---------- Deductions: Administrative expenses......... 1,321 841 1,447 Distributions to participants................ 173,720 135,186 286,813 88,340 ----------- --------- --------- ---------- Total deductions......... 175,041 136,027 288,260 88,340 ----------- --------- --------- ---------- Net transfers between funds........ (44,162) (45,854) 146,549 106,949 ----------- --------- --------- ---------- Net change in net assets available for benefits.......... 272,213 168,065 (70,912) 47,657 ----------- --------- --------- ---------- Net assets available for benefits - December 31, 1996............... $ 1,125,710 $ 691,862 $ 493,603 $ 466,600 =========== ========= ========= ==========
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, 1995
SUPPLEMENTAL FUND INFORMATION -------------------------------------------------------------------------- Tower Stock UCFC Capital Government Guaranteed Emphasis Stock Appreciation Securities Interest Balanced Combined Fund Fund Account Account Account ------------ ------------ ----------- ------------- ------------- ----------- Net assets available for benefits - January 1, 1995................. $ 11,409,528 $ 7,888,354 $ 693,229 $ 171,361 $ 286,209 $ 514,317 Additions: Interest and dividend income.... 210,633 129,473 23,145 28,508 Contributions Employee.................... 1,856,665 936,352 73,359 52,774 121,550 206,513 Employer.................... 1,304,713 1,303,072 1,641 ------------ ------------ ----------- ------------- ------------- ----------- Total.................... 3,161,378 2,239,424 73,359 52,774 123,191 206,513 Net appreciation of investments.................. 8,377,400 7,662,010 157,523 40,326 140,392 ------------ ------------ ----------- ------------- ------------- ----------- Total additions.......... 11,749,411 10,030,907 254,027 93,100 151,699 346,905 ------------ ------------ ----------- ------------- ------------- ----------- Deductions: Administrative expenses......... 40,223 29,169 862 768 857 Distributions to participants................ 3,169,302 2,457,300 67,902 88,162 28,118 62,823 ------------ ------------ ----------- ------------- ------------- ----------- Total deductions......... 3,209,525 2,486,469 67,902 89,024 28,886 63,680 ------------ ------------ ----------- ------------- ------------- ----------- Net transfers between funds........ (261,201) (73,699) 40,920 140,344 48,151 ------------ ------------ ----------- ------------- ------------- ----------- Net change in net assets available for benefits.......... 8,539,886 7,283,237 112,426 44,996 263,157 331,376 ------------ ------------ ----------- ------------- ------------- ----------- Net assets available for benefits - December 31, 1995............... $ 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 ------------ ---------- ----------- ----------- Net assets available for benefits - January 1, 1995................. $ 570,802 $ 275,677 $ 529,918 $ 479,661 Additions: Interest and dividend income.... 29,507 Contributions Employee.................... 260,710 159,162 46,245 Employer.................... ------------ ---------- ----------- ----------- Total.................... 260,710 159,162 46,245 Net appreciation of investments.................. 200,361 126,410 50,378 ------------ ---------- ----------- ----------- Total additions.......... 461,071 285,572 96,623 29,507 ------------ ---------- ----------- ----------- Deductions: Administrative expenses......... 853 828 6,886 Distributions to participants................ 63,505 68,900 265,581 67,011 ------------ ---------- ----------- ----------- Total deductions......... 64,358 69,728 272,467 67,011 ------------ ---------- ----------- ----------- Net transfers between funds........ (114,018) 32,276 210,441 (23,214) ------------ ---------- ----------- ----------- Net change in net assets available for benefits.......... 282,695 248,120 34,597 (60,718) ------------ ---------- ----------- ----------- Net assets available for benefits - December 31, 1995............... $ 853,497 $ 523,797 $ 564,515 $ 418,943 ============ ========== =========== ===========
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 by reference to market prices on the valuation date when available, with the exception of participant loans which 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. Effective July 1, 1998, employees are eligible to participate in the Plan provided they have completed six months of service and have attained the age of twenty-one prior to the election date. For the years ended December 31, 1997, 1996 and 1995, United Companies Financial Corporation ("UCFC") provided matching contributions of 100% 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 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 or pay administrative expenses. 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 eleven funds: (a) UCFC Stock Fund -- Contributions to this fund are invested primarily in $2 par value common stock of United Companies Financial Corporation. (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. (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. Effective July 1, 1997, contributions and transfers into the Government Securities Account were not accepted. (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 are anticipated to generate long term capital growth. 8 10 (g) Stock Index 500 Account -- Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily 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. (i) Small Company Value Account -- Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily in common stocks of small companies that are evaluated as being under valued at the time of purchase. (j) International Stock Account -- Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily in common stocks of corporations located outside the United States, and occasionally in preferred stocks or convertible bonds of these corporations. Account assets may also be invested in U.S. or non-U.S. securities other than stocks or retained in cash. (k) Real Estate Account -- Contributions to this fund are invested in pooled separate accounts of Principal Mutual Life Insurance Company, primarily in owned commercial property. Effective July 1, 1998, contributions and transfers into the Real Estate Account will not be accepted. Investment options (c), (e), (f), (g), (h), (i), (j) and (k) are offered through a pooled separate account, The Principal Pooled Separate Accounts, and are classified as such in the statement of net assets available for benefits. Effective July 1, 1998, the following four investment options will be added to the Plan: Vanguard Bond Index Total Bond Market Fund, Vanguard Windsor II, Principal Large Company Growth Account and T. Rowe Price Mid-Cap Growth Fund. The Plan allows participants to borrow from the Plan in amounts 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, ----------------------------------------- 1997 1996 -------------- --------------- Net assets available for benefits per the financial statements........................ $ 16,998,316 $ 19,821,998 Accrued dividend income................................... (48,650) (42,793) -------------- --------------- Net assets available for benefits per Form 5500....................................... $ 16,949,666 $ 19,779,205 ============== ===============
The following is a reconciliation of changes in net assets according to the financial statements to Form 5500:
Year Ended December 31, 1997 ---------------- Changes in net assets per the financial statements...................... $ (2,823,682) Add: Accrued dividend income, December 31, 1996.............................. 42,793 Less: Accrued dividend income December 31, 1997.............................. (48,650) --------------- Changes in net assets per Form 5500..................................... $ (2,829,539) ===============
9 11 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. 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, 1997 and 1996:
December 31, Investment 1997 - ---------- ------------------ UCFC Common Stock $ 9,566,312 Medium Company Blend Account $ 1,594,072 Stock Index 500 Account $ 1,412,914 Stock Emphasis Balanced Account $ 1,098,704 Tower Capital Appreciation Fund $ 1,048,450
December 31, Investment 1996 - ---------- ------------------ UCFC Common Stock $ 14,520,282 Medium Company Blend Account $ 1,125,710
10 12 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES DECEMBER 31, 1997
IDENTITY DESCRIPTION CURRENT OF ISSUE OF INVESTMENT COST VALUE ------------------------ -------------------------------- --------------- --------------- * United Companies United Companies Financial Corporation Financial Corporation, $2 par value common stock, 617,181.4 shares $ 11,180,210 $ 9,566,312 Hibernia National Bank Tower Capital Appreciation Fund 846,258 1,048,450 Principal Mutual Guaranteed Interest Account 608,515 608,485 Life Insurance Company Principal Mutual Pooled Separate Accounts 3,507,259 4,799,755 Life Insurance Company Participant Loans Range of Interest Rates From 6.5% to 12.0% 0 530,036 --------------- --------------- $ 16,142,242 $ 16,553,038 =============== ===============
*Denotes "Exempt related party transaction". 11 13 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN ITEM 27b - SCHEDULE OF LOANS OR FIXED INCOME OBLIGATIONS DECEMBER 31, 1997
Description of Loan Amount Received Amount - --------------------------------------------- During 1997 Unpaid Overdue Loan Maturity Interest Collateral ------------------- Balance ---------------------- Date Date Rate Amount Principal Interest at 12/31/97 Principal Interest - -------- -------- ------ ---------- --------- -------- ----------- ---------- ---------- 12/31/95 5/11/97 9.75% $ 1,200 0 0 $ 407 $ 407 $ 7 7/31/95 5/11/97 10.00% $ 1,000 0 0 $ 894 $ 894 $ 87
12 14 UNITED COMPANIES FINANCIAL CORPORATION EMPLOYEES' SAVINGS PLAN ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1997
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 $ 4,082,510 165 ============= ============== Hibernia National Bank Tower Capital Appreciation Fund $ 1,256,317 78 ============= ============== Selling Transactions - -------------------- United Companies United Companies Financial Corporation Financial Corporation $2 par value Common Stock $ 2,535,152 145 $ 1,122,076 ============= ============== ============ Hibernia National Bank Tower Capital Appreciation Fund $ 1,081,065 47 $ 164,430 ============= ============== ============
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 Director of Accounting Services Date: June 22, 1998 14 16 INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION - --------------------------------- 23 Independent Auditors' Consent
EX-23 2 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS 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 22, 1998, appearing in this Annual Report on Form 11-K of United Companies Financial Corporation Employees' Savings Plan for the year ended December 31, 1997. /s/ DELOITTE & TOUCHE LLP Baton Rouge, Louisiana June 22, 1998 -----END PRIVACY-ENHANCED MESSAGE-----