PRESS RELEASES

In the first nine months of 2000, operating earnings were $2.3 billion, or $2.29 per share, before restructuring and other charges of $2.8 billion, or $2.83 per share. After these charges and third quarter gains, the net loss was $507 million in the first nine months of 2000, or 54 cents per share. In the first nine months of 1999, operating earnings were $2.6 billion, or $2.74, before restructuring and other charges of 27 cents per share. The first nine months of 1999 included 20 cents of nonrecurring gains. Net income for the first nine months of 1999 was $2.4 billion, or $2.47 per share.

Based on operating earnings, First Union's return on average stockholders' equity (ROE) was 17.88 percent year-to-date 2000 and the return on average assets (ROA) was 1.20 percent. On the same basis, ROE in the first nine months of 1999 was 22.25 percent and ROA was 1.56 percent.

"Third quarter financial results were in line with our expectations, with continuing good performance in Capital Management and the General Bank, offset by a decline in Capital Markets. The decline in Capital Markets was primarily due to an anticipated reduction in principal investing gains," said Ken Thompson, president and CEO of First Union. "Strong mutual fund sales, CAP Account openings and steady growth in both deposit balances and loans highlighted third quarter results. We also turned the corner on service quality issues of 18 months ago as evidenced by marked improvement in service quality, lower customer attrition rates and improved customer acquisition. With the sale of the credit card and mortgage servicing portfolios, we're on track with the strategic repositioning of our company. Today, we are intently focused on becoming a more customer-centric organization and feel confident that our strategies will produce positive, long-term results."

On an operating basis, fee and other income as a percentage of total revenue, excluding securities transactions, was 47 percent in the third quarter of 2000 and 44 percent in the third quarter of 1999. Fee and other income, excluding securities transactions, increased 9 percent to $1.7 billion in the third quarter of 2000 compared with $1.5 billion in the third quarter of 1999. These results reflect the impact of the purchase accounting acquisition of EVEREN Capital Corporation, which was completed in the fourth quarter of 1999.

Capital Management, which encompasses asset and wealth management activities, generated a 49 percent increase in fee and other income to $779 million compared with $524 million in the third quarter of 1999. The increase in Capital Management fee and other income was led by retail brokerage income, largely reflecting EVEREN results, and income from fiduciary and asset management businesses. Capital Management fee income excluding the EVEREN results was up 16 percent over last year, led by strong growth in mutual funds, CAP and brokerage. Assets under management increased to $173 billion from $166 billion at year-end 1999. These assets include mutual fund assets of $85 billion at September 30, 2000, compared with $80 billion at year-end 1999. CAP Account assets increased to $61 billion from $56 billion in the same period. In the third quarter of 2000, the number of registered representatives increased to more than 7,300, representing the nation's sixth largest brokerage sales force.

Revenues from Capital Markets, which encompasses investment banking and corporate banking activities, decreased 9 percent to $695 million in the third quarter of 2000 compared with $767 million in the third quarter of 1999, primarily due to a decline in principal investing gains. Principal investing gains, as expected, decreased from $176 million in the third quarter of 1999 to $37 million in the third quarter this year. Excluding principal investing gains, Capital Markets revenues were up 11 percent, largely reflecting improved trading results. Only modest principal investing gains are anticipated in the rest of 2000.

The General Bank, which encompasses First Union's commercial, small business and consumer lending and deposit activities, experienced growth in deposit balances and in consumer and commercial loans. In addition, overall customer satisfaction scores as measured by Gallup improved for the sixth consecutive quarter.

In First Union's e-commerce business, enrollments for Internet services have grown by approximately 100,000 a month this year, reaching 2.1 million enrollments at September 30, 2000, including 52,000 online brokerage enrollments and 65,000 online wholesale enrollments. First Union's Spanish language website was launched in the quarter, as was the online shopping marketplace, ShopFirst.com, both located on the company's website at firstunion.com.

Divestitures Update

The sale of the $35 billion residential mortgage servicing portfolio and $5.7 billion credit card portfolio were completed by quarter-end. Consummation of the sale of 84 nonstrategic branch office locations is expected in the fourth quarter of 2000 and first quarter of 2001. The sale of $13 billion of securities was complete by mid-October.

In addition, First Union's reverse repurchase agreements and trading account assets decreased $4.5 billion in the third quarter of 2000, primarily as a result of the restructuring and streamlining of First Union's fixed income sales and trading business.

Restructuring and Other Charges and Gains

The restructuring and other charges/gains in the third quarter of 2000 resulted in a pre-tax gain of $238 million (or $150 million after-tax), or 15 cents per share. This includes charges of $770 million, offset by $1.0 billion in gains from the sale of the credit card and residential mortgage servicing portfolios. The restructuring charges include $28 million in additional charges related to the company's strategic repositioning announced in the second quarter of 2000 and $24 million of merger-related charges in connection with systems integration related to the EVEREN acquisition. Also included are $718 million of other charges, composed of $449 million in losses on the sale of securities, $120 million in losses on commercial loans moved in the third quarter to assets held for sale, $60 million of incremental loan loss provision and $89 million of other charges, principally personnel related. The gains on the sales of the branches and the other charges related to the strategic repositioning are anticipated to be recognized as an offset to the restructuring charges over the rest of this year and in the first half of 2001.

Net Charge-offs, Loan Loss Provision and Nonperforming Assets

Net charge-offs of $142 million were 0.46 percent of average net loans on an annualized basis, in the third quarter of 2000 compared with $175 million, or 0.55 percent, in the third quarter of 1999.

The loan loss provision in the third quarter of 2000, including the $60 million incremental provision discussed above, was $202 million compared with $175 million in the third quarter of 1999. The allowance to net loans ratio increased to 1.39 percent compared with 1.34 percent in the third quarter of 1999, and reflected the characteristics of First Union's portfolio in view of the credit quality environment.

In addition, First Union moved $719 million of commercial loans to assets held for sale, resulting in the $120 million writedown included in restructuring and other charges, as discussed above.

Nonperforming assets at September 30, 2000, were $951 million, or 0.77 percent of net loans and foreclosed properties, compared with $1.0 billion, or 0.79 percent, at September 30, 1999. Included in other assets were nonperforming assets with a net book value of $349 million.

First Union (NYSE:FTU), with $247 billion in assets and stockholders' equity of $15 billion at September 30, 2000, is a leading provider of financial services to 15 million retail and corporate customers throughout the East Coast and the nation. The company operates full-service banking offices in 11 East Coast states and Washington, D.C., and full-service brokerage offices in 45 states. Online banking products and services can be accessed through www.firstunion.com.

This news release contains various forward-looking statements. A discussion of various factors that could cause First Union's actual results to differ materially from those expressed in such forward-looking statements is included in First Union's 2000 filings with the SEC.

Earnings Conference Call

First Union CEO Ken Thompson will review First Union's third quarter results at 10 a.m. on Thursday, October 19, in a teleconference and live audio webcast.

Webcast Instructions: To gain access to the webcast, which will be "listen-only," go to www.ftuinvestor.com and click on the link First Union Third Quarter Earnings Webcast. In order to listen to the webcast, you will need to download Real Player Basic 8, in advance of the event. A replay of the webcast also will be archived on the website beginning at 1 p.m. October 19.

Teleconference Instructions: The telephone number to participate in the teleconference is 888-677-1826 for U.S. callers (or 712-257-0446 for international callers) on October 19. You will be asked to tell the answering coordinator your name and the name of your firm. Mention the conference Access Code: 33345.

A continuous telephone replay will be available beginning at noon on Thursday, October 19, and continuing through noon on Monday, October 23. The replay telephone number is 402-530-7747.