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June 16, 1998
First Union Corporation Increases Cash Dividend on Common Stock
CHARLOTTE -- For the third time in the past 12 months, the board of directors of First Union Corporation increased the quarterly dividend on its common stock (NYSE: FTU). The new quarterly dividend, effective with the third quarter of 1998, was increased to $0.42 cents per share from the $0.37 rate approved in December 1997 and the $0.32 rate approved in June 1997.
The growth in the dividend, an increase of 31 percent in the past 12 months, reflects First Union's commitment to new financial performance guidelines announced last year to lead the company to the year 2000. These guidelines included a goal to increase the dividend payout ratio to a range of 40-45 percent. As of March 31, 1998, the dividend payout ratio was 39.8 percent.
"This action underscores First Union's confidence in the value added by the CoreStates merger and other initiatives in our company to build continuing strong financial performance," said Edward E. Crutchfield, chairman and chief executive officer. He noted First Union's 20-year record of increased dividends, and added, "We look forward to further enhancing shareholder value in the future."
Including its predecessor, Union National Bank, First Union has paid a dividend every year since 1914 and has increased the dividend at least annually for the past 20 consecutive years.
The common stock dividend is payable on September 15, 1998, to holders of record as of the close of business on August 31, 1998.
First Union Corporation (NYSE:FTU) is the nation's sixth largest bank holding company and a leading provider of financial services to more than 16 million retail and corporate customers. Including CoreStates Financial Corp, First Union had $220 billion in assets and stockholders' equity of $16 billion at March 31, 1998. First Union acquired CoreStates on April 28, 1998.
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