-----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, SIUNKWSfqwNIYdpMOXPlRtqXvJCaJRTnd6TAuLy5672Vb8tHUBqZdnMltvE+nNTL YGLi1OwBzED7eIPh7K6CNw== 0000950123-01-504670.txt : 20010726 0000950123-01-504670.hdr.sgml : 20010726 ACCESSION NUMBER: 0000950123-01-504670 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20010511 ITEM INFORMATION: FILED AS OF DATE: 20010725 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMUNITY BANK SYSTEM INC CENTRAL INDEX KEY: 0000723188 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 161213679 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-13695 FILM NUMBER: 1689148 BUSINESS ADDRESS: STREET 1: 5790 WIDEWATERS PKWY CITY: DEWITT STATE: NY ZIP: 13214 BUSINESS PHONE: 8007242262 MAIL ADDRESS: STREET 1: 5790 WIDEWATERS PARKWAY CITY: DEWITT STATE: NY ZIP: 13214 8-K/A 1 y51696e8-ka.txt COMMUNITY BANK SYSTEM, INC. 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 AMENDMENT NO. 1 TO FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): May 11, 2001 COMMUNITY BANK SYSTEM, INC. (Exact name of registrant as specified in its charter) Delaware 0-11716 16-1213679 (State or Other Jurisdiction (Commission File Number) (I.R.S. Employer of Incorporation) Identification No.) 5790 Widewaters Parkway, DeWitt, New York 13214 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (800) 724-2262 (Former name or former address, if changed since last report) 2 On May 29, 2001, Community Bank System, Inc. (the "Registrant") filed a Current Report on Form 8-K (the "Form 8-K") with the Securities and Exchange Commission to report the consummation of a merger (the "Merger") between the Registrant and First Liberty Bank Corp. ("First Liberty"). This Amendment No. 1 to the Form 8-K is being filed to include, or incorporate herein by reference, certain historical financial statements of First Liberty and pro forma financial information of the combined entity. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (a) Financial Statements of First Liberty. The audited financial statements of First Liberty for the years ended December 31, 1998, 1999 and 2000 are incorporated herein by reference to First Liberty's Annual Report on Form 10-K (Commission File No. 0-13312) for the year ended December 31, 2000 filed with the Securities and Exchange Commission (the "SEC"). (b) Pro Forma Financial Information. The unaudited pro forma financial information of the combined entity for the years ended December 31, 1998, 1999 and 2000 and for the three months ended March 31, 2000 and 2001 set forth on Exhibit 99.1 hereto is incorporated herein by reference. (c) Exhibits.
Exhibit No. Description ----------- ----------- 23.1 Consent of KPMG LLP 99.1 Pro Forma Financial Information
3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. COMMUNITY BANK SYSTEM, INC. By: /s/ Sanford A. Belden -------------------------------------------- Name: Sanford A. Belden Title: President and Chief Executive Officer Date: July 25, 2001 EX-23.1 2 y51696ex23-1.txt CONSENT OF KPMG 1 EXHIBIT 23.1 CONSENT OF INDEPENDENT AUDITORS The Board of Directors Community Bank System, Inc. We consent to incorporation by reference in the Amendment No. 1 to the Current Report on Form 8-K of Community Bank System, Inc. of our audit report dated January 29, 2001, relating to the consolidated balance sheets of First Liberty Bank Corp. and subsidiaries as of December 31, 2000 and 1999, and the related consolidated statements of operations, changes in shareholders' equity, and cash flows for each of the years in the three-year period ended December 31, 2000, which report appears in the December 31, 2000 Annual Report on Form 10-K of First Liberty Bank Corp. /s/ KPMG LLP Philadelphia, Pennsylvania July 25, 2001 EX-99.1 3 y51696ex99-1.txt PRO FORMA FINANCIAL INFORMATION 1 EXHIBIT 99.1 UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS The following unaudited pro forma condensed combined financial statements present the condensed financial position of Community Bank System, Inc. (the "Registrant") and First Liberty Bank Corp. ("First Liberty") as of March 31, 2001, assuming that a merger between the Registrant and First Liberty (the "Merger") had occurred as of March 31, 2001 and giving effect to the Merger by combining the results of operations of the Registrant and First Liberty for the years ended December 31, 2000, 1999, and 1998, and the three months ended March 31, 2001 and March 30, 2000. Pro forma earnings per share and weighted average common shares are based on an exchange ratio of 0.56. The unaudited pro forma condensed combined financial statements were prepared giving effect to the Merger on the pooling of interest accounting method. All adjustment necessary to arrive at a fair presentation of the combined financial condition and results of operations of the Registrant and First Liberty, in the opinion of the management of the Registrant, have been included and are of a normal recurring nature. The data presented below does not reflect possible adjustments for expenses related to the Merger, or any potential cost savings or revenue enhancements resulting from the Merger. Accordingly, the financial condition and results of operations of the Registrant as of the effective date of the Merger and thereafter may be materially different from those reflected in the pro forma information below. The unaudited pro forma condensed combined financial statements should be read in conjunction with the historical financial statements and notes thereto of the Registrant and First Liberty as set forth in their respective Annual Reports on Form 10-K for the year ended December 31, 2000 and the Quarterly Report on Form 10-Q of the Registrant for the quarter ended March 31, 2001. The unaudited pro forma condensed combined financial statements are presented for informational purposes only. These statements are not necessarily indicative of the combined financial position and results of operations that would have occurred if the Merger had been consummated on March 31, 2001 or at the beginning of the period or of that which may be attained in the future. HISTORICAL AND PRO FORMA BALANCE SHEET
At March 31, 2001 -------------------------------------------------------------------- Historical ----------------------------- Community Bank First Liberty Pro Forma Pro Forma System, Inc. Bank Corp. Adjustments Total ASSETS Cash, cash equivalents and due from banks $ 65,690 $ 44,523 $ 110,213 Federal funds sold -- -- -- Time deposits with other banks 339 -- 339 Investment securities 938,700 153,004 1,091,704 Loans, net of unearned discount 1,151,957 420,725 1,572,682 Less: Reserve for possible loan losses (15,401) (5,516) (20,917) Premises and equipment 28,793 13,758 42,551 Intangible assets 66,529 4,190 70,719 Other real estate 1,210 266 1,476 Other assets 40,584 12,747 53,331 -------------------------------------------------------------------- $ 2,278,401 $ 643,697 $ 0 $ 2,922,098 ==================================================================== LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest bearing $ 262,597 $ 56,744 $ 319,341 Interest bearing 1,337,388 458,115 1,795,503 -------------------------------------------------------------------- Total deposits 1,599,985 514,859 0 2,114,844 Federal funds purchased 28,000 28,000 Term borrowings 413,100 60,438 473,538 Company obligated mandatorily redeemable preferred securities of subsidiary Community Capital Trust 1 holding solely junior subordinated debentures of the company 29,826 0 29,826 Subordinated Debentures Accrued interest and other liabilities 35,556 3,927 39,483 -------------------------------------------------------------------- Total liabilities 2,106,467 579,224 0 2,685,691 Shareholders' equity Common stock 7,979 2,009 1,557 11,545 Surplus 41,845 6,121 (1,753) 46,213 Undivided profits 110,659 56,155 0 166,814 Accumulated other comprehensive income 11,665 384 12,049 Treasury stock (60,820 shares) -- (196) 196 -- Shares issued under employee stock plan - unearned (214) 0 (214) -------------------------------------------------------------------- Total shareholder's equity 171,934 64,473 0 236,407 -------------------------------------------------------------------- Total liabilities and shareholder's equity $ 2,278,401 $ 643,697 $ 0 $ 2,922,098 ====================================================================
2 HISTORICAL AND PRO FORMA STATEMENT OF INCOME
Three Months Ended March 31, 2001 ------------------------------------------------- Historical --------------------------------- Community Bank First Liberty Pro Forma System, Inc. Bank Corp. Total Interest and fees on loans $25,365 $ 7,896 $33,261 Interest on investments and federal funds sold 13,895 2,741 16,636 ------------------------------------------------- Total interest income 39,260 10,637 49,897 Interest on deposits 14,409 5,152 19,561 Interest on federal funds purchased and term borrowings 5,635 876 6,511 Interest on mandatorily redeemable capital securities of subsidiary 733 0 733 Interest on subordinated debentures ------------------------------------------------- Total interest expense 20,777 6,028 26,805 Net interest income 18,483 4,609 23,092 Provision for loan losses 1,236 90 1,326 ------------------------------------------------- Net interest income after provision for loan losses 17,247 4,519 21,766 Other income 5,413 718 6,131 Salaries and benefits 8,141 1,981 10,122 Occupancy Expense 2,268 368 2,636 Amortization of intangible assets 1,364 95 1,459 Other Expense 4,517 1,225 5,742 ------------------------------------------------- Total Expenses 16,290 3,669 19,959 Income before income tax 6,370 1,568 7,938 Income tax 1,911 274 2,185 ------------------------------------------------- Net income $ 4,459 $ 1,294 $ 5,753 ================================================= Earnings per share - Basic $ 0.58 $ 0.20 $ 0.51 Earnings per share - Diluted $ 0.57 $ 0.20 $ 0.50
3 HISTORICAL AND PRO FORMA STATEMENT OF INCOME
Three Months Ended March 31, 2000 ---------------------------------------------------- Historical ---------------------------------- Community Bank First Liberty Pro Forma System, Inc. Bank Corp. Total Interest and fees on loans $22,656 $ 8,229 $30,885 Interest on investments and federal funds sold 11,915 2,786 14,701 ---------------------------------------------------- Total interest income 34,571 11,015 45,586 Interest on deposits 11,171 4,701 15,872 Interest on federal funds purchased and term borrowings 4,847 1,387 6,234 Interest on mandatorily redeemable capital securities of subsidiary 733 -- 733 Interest on subordinated debentures ---------------------------------------------------- Total interest expense 16,751 6,088 22,839 Net interest income 17,820 4,927 22,747 Provision for loan losses 1,209 180 1,389 ---------------------------------------------------- Net interest income after provision for loan losses 16,611 4,747 21,358 Other income 3,930 519 4,449 Salaries and benefits 6,819 1,977 8,796 Occupancy Expense 1,945 650 2,595 Amortization of intangible assets 1,110 27 1,137 Other Expense 3,488 864 4,352 ---------------------------------------------------- Total Expenses 13,362 3,518 16,880 Income before income tax 7,179 1,748 8,927 Income tax 2,154 381 2,535 ---------------------------------------------------- Net income $ 5,025 $ 1,367 $ 6,392 ==================================================== Earnings per share - Basic $ 0.71 $ 0.21 $ 0.60 Earnings per share - Diluted $ 0.70 $ 0.21 $ 0.59
4 HISTORICAL AND PRO FORMA STATEMENT OF INCOME
Twelve Months Ended December 31, 2000 ---------------------------------------------------- Historical ---------------------------------- Community Bank First Liberty Pro Forma System, Inc. Bank Corp. Total Interest and fees on loans $ 96,525 $ 33,554 $130,079 Interest on investments and federal funds sold 48,696 10,661 59,357 ---------------------------------------------------- Total interest income 145,221 44,215 189,436 Interest on deposits 50,204 19,716 69,920 Interest on federal funds purchased and term borrowings 20,876 5,412 26,288 Interest on mandatorily redeemable capital securities of subsidiary 2,932 -- 2,932 Interest on subordinated debentures ---------------------------------------------------- Total interest expense 74,012 25,128 99,140 Net interest income 71,209 19,087 90,296 Provision for loan losses 7,182 540 7,722 ---------------------------------------------------- Net interest income after provision for loan losses 64,027 18,547 82,574 Other income 20,989 2,131 23,120 Salaries and benefits 28,835 7,742 36,577 Occupancy Expense 7,636 2,671 10,307 Amortization of intangible assets 4,670 221 4,891 Other Expense 14,848 4,169 19,017 ---------------------------------------------------- Total Expenses 55,989 14,803 70,792 Income before income tax 29,027 5,875 34,902 Income tax 8,708 1,295 10,003 ---------------------------------------------------- Net income $ 20,319 $ 4,580 $ 24,899 ==================================================== Earnings per share - Basic $ 2.88 $ 0.72 $ 2.34 Earnings per share - Diluted $ 2.85 $ 0.72 $ 2.32
5 HISTORICAL AND PRO FORMA STATEMENT OF INCOME
Twelve Months Ended December 31, 1999 ---------------------------------------------------- Historical ---------------------------------- Community Bank First Liberty Pro Forma System, Inc. Bank Corp. Total Interest and fees on loans $ 84,853 $ 30,727 $115,580 Interest on investments and federal funds sold 39,035 11,832 50,867 ---------------------------------------------------- Total interest income 123,888 42,559 166,447 Interest on deposits 42,774 19,128 61,902 Interest on federal funds purchased and term borrowings 10,241 3,415 13,656 Interest on mandatorily redeemable capital securities of subsidiary 2,932 -- 2,932 Interest on subordinated debentures ---------------------------------------------------- Total interest expense 55,947 22,543 78,490 Net interest income 67,941 20,016 87,957 Provision for loan losses 5,136 720 5,856 ---------------------------------------------------- Net interest income after provision for loan losses 62,805 19,296 82,101 Other income 15,486 2,244 17,730 Salaries and benefits 26,388 7,212 33,600 Occupancy Expense 7,384 2,462 9,846 Amortization of intangible assets 4,615 108 4,723 Other Expense 14,346 4,210 18,556 ---------------------------------------------------- Total Expenses 52,733 13,992 66,725 Income before income tax 25,558 7,548 33,106 Income tax 7,923 1,521 9,444 ---------------------------------------------------- Net income $ 17,635 $ 6,027 $ 23,662 ==================================================== Earnings per share - Basic $ 2.45 $ 0.95 $ 2.20 Earnings per share - Diluted $ 2.42 $ 0.94 $ 2.18
6 HISTORICAL AND PRO FORMA STATEMENT OF INCOME
Twelve Months Ended December 31, 1998 ------------------------------------------------------ Historical ---------------------------------- Community Bank First Liberty Pro Forma System, Inc. Bank Corp. Total Interest and fees on loans $ 82,778 $ 30,305 $113,083 Interest on investments and federal funds sold 40,160 12,060 52,220 ------------------------------------------------------ Total interest income 122,938 42,365 165,303 Interest on deposits 49,668 19,834 69,502 Interest on federal funds purchased and term borrowings 5,943 2,839 8,782 Interest on mandatorily redeemable capital securities of subsidiary 2,932 -- 2,932 Interest on subordinated debentures ------------------------------------------------------ Total interest expense 58,543 22,673 81,216 Net interest income 64,395 19,692 84,087 Provision for loan losses 5,123 540 5,663 ------------------------------------------------------ Net interest income after provision for loan losses 59,272 19,152 78,424 Other income 17,040 1,778 18,818 Salaries and benefits 25,750 7,080 32,830 Occupancy Expense 7,586 2,426 10,012 Amortization of intangible assets 4,640 108 4,748 Other Expense 13,900 5,745 19,645 ------------------------------------------------------ Total Expenses 51,876 15,359 67,235 Income before income tax 24,436 5,571 30,007 Income taxes 8,902 1,570 10,472 ------------------------------------------------------ 15,534 4,001 19,535 Cumulative effect of change in accounting principal, net of taxes 194 194 ------------------------------------------------------ Net income $ 15,728 $ 4,001 $ 19,729 ====================================================== Earnings per share - Basic $ 2.08 $ 0.63 $ 1.78 Earnings per share - Diluted $ 2.05 $ 0.63 $ 1.75
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