Exhibit 99.1
[WACHOVIA LOGO]
News Announcement
Wachovia Corporation
Atlanta, GA 30383
Winston-Salem, NC 27150
For Additional Information:
Robert S. McCoy, Jr.
Chief Financial Officer, 336-732-5926
Marsha L. Smunt
Investor Relations, 336-732-5788
April 9, 2001
Bank One to Purchase Wachovia's $8 Billion
Consumer Credit Card Portfolio
CHICAGO AND WINSTON- SALEM, N.C. - Bank One Corporation (NYSE:
ONE) has entered into a definitive agreement to purchase Wachovia
Corporation's (NYSE: WB) $8 billion portfolio of consumer credit card
receivables, the companies announced today. The portfolio includes
2.8 million customer accounts. Terms were not announced.
The companies also entered into a long-term agent bank
relationship under which Wachovia will offer its branded credit cards
to retail customers, with servicing provided by First USA, Bank One's
credit card subsidiary. First USA, the largest issuer of Visa credit
cards, is a leader in partnership and agent bank marketing with 1,900
marketing partners, including many financial institutions.
The transaction meets the strategic goals of both companies.
Bank One expects the transaction to be immediately accretive to
earnings and that its capital ratios will remain strong. Bank One
also expects that the transaction, when completely integrated, will
add $100 million per year to Bank One's aftertax earnings, assuming
current economic conditions.
"The purchase of this high-quality portfolio - in terms of both
customers and credit - signals that we are growing our credit card
business again and are dedicated to be one of the winners in this
consolidating industry," said James Dimon, Bank One's chairman and
chief executive officer. "We also are pleased to be partnering with
highly respected Wachovia.
"We have strengthened our First USA management team, and our
customer service, operational quality and customer satisfaction are
strong," he said. "As a result, we can leverage our current
infrastructure to serve the combined 55 million cardholders well -
and more efficiently - while offering Wachovia customers additional
card products and choices."
(more)
-2-
Wachovia announced in February that it was exploring strategic
alternatives for its credit card business. The company told investors
in March that if a sale were to occur options for use of proceeds
could include internal reinvestment, strategic acquisitions and share
repurchases. Wachovia now expects to report a pretax gain of
approximately $1.4 billion upon consummation of the transaction.
"We concluded that selling the portfolio will provide the best
opportunity to maximize returns to shareholders. This course of
action enables Wachovia to reinvest in areas more in line with our
relationship strategy," said L.M. Baker Jr., Wachovia chairman and
chief executive officer. "Based on Wachovia's extensive due
diligence, we are confident that First USA will continue Wachovia's
tradition of excellent customer service."
The transaction is expected to close in the second quarter and
is subject to regulatory approval. Over the next several weeks, First
USA will be reviewing its needs with respect to Wachovia Bank Card
Services facilities and employees.
Adding the Wachovia portfolio to Bank One's credit card
receivables at December 31, 2000, will result in a pro forma
portfolio of about $75 billion. Bank One Corporation, the parent of
First USA, has assets of more than $265 billion, making it the
nation's fifth-largest bank holding company.
Wachovia Corporation, with dual headquarters in Atlanta and
Winston-Salem, N.C., is a leading financial holding company serving
regional, national and international markets. As of December 31,
2000, Wachovia had assets of $74 billion. Wachovia Bank, N.A., the
principal subsidiary, has more than 650 offices and 1,350 ATMs
primarily in Florida, Georgia, North Carolina, South Carolina and
Virginia. Wachovia Bank Card Services, the credit card subsidiary, is
headquartered in Atlanta.
###
This news release contains forward-looking statements regarding
Wachovia Corporation and Bank One Corporation. All forward-looking
statements involve risk and uncertainty, and actual results could
differ materially from the anticipated results or other expectations
expressed in the forward-looking statements. A discussion of factors
that could cause actual results to differ materially from those
expressed in the forward-looking statements is included in
Wachovia's filings with the Securities and Exchange Commission and
Bank One's Form 10-K for the year ended December 31, 2000.
Bank One Conference Call and Webcast
Bank One and First USA executives will host a conference call
discussing today's announcement at 10 a.m. Eastern today. To
participate, phone 800-967-7141 (domestic) or 719-457-2630
(international); the access code is 616289. The conference call will
be available on the Internet at www.bankone.com. The conference call
audio will also be Webcast at this location. A playback of this
conference call will be available after 12:30 p.m. Eastern today
through Friday, April 20, by calling 888-203-1112 (domestic) or
719-457-0820 (international); the access code is 616289.