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First Union's Mortgage Unit Intact During Restructuring

CHARLOTTE-First Union's $3 billion restructuring has knocked down the bank's third-quarter profit by 12%, but earnings still beat analysts' predictions. The bank will be offering wireless banking next year through a contract with New York-based w-Technologies.

By Robert Anthony | Updated on October 20, 2000

CHARLOTTE-First Union’s third-quarter net fell to $702 million, or 71 cents a share, from $802 million, or 84 cents a share, a year earlier, the bank states.

First Union earnings excluded a net after-tax gain of $150 million related to the restructuring and other charges and gains on the sale of the company’s credit card portfolio and first mortgage servicing portfolio.

Several months ago, First Union said it was planning to sell both the servicing portfolio and the platform of its mortgage company to Wells Fargo, a sale that was part of its $3 billion restructuring. But last month, Wells Fargo decided against buying the bank’s mortgage servicing center located in Raleigh, NC.

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