-----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, IUoi1v0GEsxBKOzFd1CVIru0ryOly9QaChkOhQx8G4SvrrtAsh+2F1yBxWFTYjba p/jlBsRoXj6aaEEqTttYzA== 0001051622-98-000059.txt : 19981119 0001051622-98-000059.hdr.sgml : 19981119 ACCESSION NUMBER: 0001051622-98-000059 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19981016 ITEM INFORMATION: FILED AS OF DATE: 19981118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SURETY CAPITAL CORP /DE/ CENTRAL INDEX KEY: 0000784932 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 752065607 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 001-12818 FILM NUMBER: 98754642 BUSINESS ADDRESS: STREET 1: 1845 PRECINCT LINE RD STE 100 CITY: HURST STATE: TX ZIP: 76054 BUSINESS PHONE: 8174982749 MAIL ADDRESS: STREET 1: 1845 PRECINCT LINE RD STE 100 CITY: HURST STATE: TX ZIP: 76054 FORMER COMPANY: FORMER CONFORMED NAME: K CAPITAL INC DATE OF NAME CHANGE: 19870407 8-K/A 1 FORM 8-K/A FORM 8-K/A (Amendment No. 1) Securities and Exchange Commission Washington, D.C. 20549 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): October 16, 1998 Surety Capital Corporation ------------------------------------------------------ (exact name of registrant as specified in its charter) Delaware 33-1983 75-2065607 - --------------- ------------------------ -------------- (State or other (Commission File Number) (IRS Employer jurisdiction of Identification incorporation) Number) 1845 Precinct Line Road, Suite 100, Hurst, Texas 76054 ------------------------------------------------------- (address of principal executive offices) Registrant's telephone number, including area code: (817) 498-2749 Not applicable ------------------------------------------------------------- (Former name or former address, if changed since last report) PAGE Item 7. Financial Statements and Exhibits. (b) Pro Forma Financial Information. The following pro forma financial statements are included with this Form 8-K: Pro Forma Balance Sheet as of September 30, 1998 F-1 Pro Forma Income Statement for the Nine Months F-2 Ended September 30, 1998 and for the Twelve Months Ended December 31, 1997 (c) Exhibits. The following exhibits are furnished in accordance with the provisions of Item 601 of Regulation S-K: 10 Branch Purchase and Assumption Agreement by and between Surety Bank, National Association and Commercial Bank of Texas, National Association, dated July 13, 1998. * * Filed with the Registrant's Current Report on Form 8-K for event dated July 13, 1998. PAGE SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. SURETY CAPITAL CORPORATION DATE: November 18, 1998 /s/ Bobby W. Hackler -------------------- Bobby W. Hackler Chairman of the Board -2- PAGE PRO FORMA BALANCE SHEET as of September 30, 1998
Sale of Surety Lufkin Capital Area Pro Forma Corporation Branches Debits Credits Combined ------------- ------------- ---------- ---------- ------------- (unaudited) (unaudited) (unaudited) Assets: Cash and due from banks $ 9,054,812 $ (1,007,738) $1,702,762(A) $ 9,749,836 Federal funds sold 50,497,554 (44,326,837) 6,170,717 ------------- ------------- ---------- ---------- ------------- Cash and cash equivalents 59,552,366 (45,334,575) 1,702,762 15,920,553 Interest bearing deposits in Financial institutions 94,939 - 94,939 Investment securities 32,170,862 - 32,170,862 Net loans 118,976,740 (10,918,896) 108,057,844 Medical claims receivables, net 680,505 - 680,505 Premises and equipment, net 7,534,164 (603,995) 6,930,169 Accrued interest receivable 1,176,553 (58,861) 1,117,692 Other real estate and Repossessed assets 739,343 - 739,343 Deferred tax asset 1,875,789 - 1,875,789 Other assets 1,849,952 (19,053) 1,830,899 Excess of cost over fair value of net assets acquired, net 9,697,493 (476,099)(A) 9,221,394 ------------- ------------- ---------- ---------- ------------- Total assets $ 234,348,706 $(56,935,380) 1,226,663 $ 178,639,989 ============= ============= ========== ========== ============= Liabilities: Demand deposits $ 37,268,448 $ (5,912,234) $ 31,356,214 Savings, NOW and money markets 61,510,203 (15,646,319) 45,863,884 Time deposits, $100,000 and over 35,004,547 (11,048,099) 23,956,448 Other time deposits 79,589,139 (24,152,086) 55,437,053 ------------- ------------- ---------- ---------- ------------- Total deposits 213,372,337 (56,758,737) 156,613,600 Accrued interest payable and other liabilities 987,243 (176,643) 683,635(A) 1,474,235 Convertible subordinated debt 4,350,000 - 4,350,000 ------------- ------------- ---------- ---------- ------------- Total liabilities 218,709,580 (56,935,380) 683,635 162,437,835 ------------- ------------- ---------- ---------- ------------- Shareholders' equity: Common stock 58,401 - 58,401 Additional paid in capital 17,093,786 - 17,093,786 Retained earnings (1,326,261) - 543,029(A) (783,233) Stock rights issuable 57,902 - 57,902 Treasury stock (375,443) - (172,828) Unrealized gain/(loss) on available-for-sale securities 130,741 - 130,741 ------------- ------------- ---------- ---------- ------------- Total equity 15,639,126 - 543,029 16,202,154 ------------- ------------- ---------- ---------- ------------- Total liabilities and equity $ 234,348,706 $(56,935,380) $1,226,663 $ 178,639,989 ============= ============= ========== ========== =============
(A) To record sale of certain assets and certain liabilities of the branches located in Chester, Kennard, Lufkin and Wells, Texas. The sales price was based on a fixed price of 3% of the qualified deposits, subject to adjustments. The recognition of the sale includes elimination of the goodwill associated with these branches and an accrual for federal income taxes on the gross proceeds. F-1 PAGE PRO FORMA INCOME STATEMENT for the nine months ended September 30, 1998
Sale of Pro Forma Surety Lufkin Adjustments Capital Area ---------------------- Pro Forma Corporation Branches Debits Credits Combined ------------ ------------ --------- --------- ------------- (unaudited) (unaudited) (unaudited) Interest Income: Interest and fees on loans $ 8,619,631 $ (993,077) $ - $ - $ 7,626,554 Medical claims receivable factoring 1,457,520 - 1,457,520 Interest on federal funds sold 1,407,009 (1,012,727) - - 394,282 Interest on securities and interest Bearing deposits 1,628,993 (700,000) - - 928,993 ------------ ------------ --------- --------- ------------- Total interest income 13,113,153 (2,705,804) - - 10,407,349 ------------ ------------ --------- --------- ------------- Interest expense: Interest on deposits 5,336,099 (1,647,093) - - 3,689,006 Interest expense on borrowings 191,949 - - - 191,949 ------------ ------------ --------- --------- ------------- Total interest expense 5,528,048 (1,647,093) - - 3,880,955 ------------ ------------ --------- --------- ------------- Net interest income before provision for credit losses 7,585,105 (1,058,711) - - 6,526,394 Provision for credit losses and medical claims receivables losses 1,638,119 (13,000) - - 1,625,119 ------------ ------------ --------- --------- ------------- Net interest income 5,946,986 (1,045,711) - - 4,901,275 ------------ ------------ --------- --------- ------------- Non interest income 1,953,425 (314,901) - - 1,638,524 ------------ ------------ --------- --------- ------------- Non interest expense: Salaries and employee benefits 4,206,919 (548,072) - - 3,658,847 Occupancy & equipment 1,467,719 (171,346) - - 1,296,373 General & administrative 2,735,872 (229,080) - - 2,506,792 ------------ ------------ --------- --------- ------------- Total noninterest expense 8,410,510 (948,498) - - 7,462,012 ------------ ------------ --------- --------- ------------- Income before income taxes (510,099) (412,114) - - (922,213) Income tax expense: (208,273) (148,361) - - (356,634) ------------ ------------ --------- --------- ------------- Net income $ (301,826) $ (263,753) $ - $ - $ (565,579) ============ ============ ========= ========= ============= Basic earnings (loss) per share of Common stock $ (0.05) $ (0.10) Weighted average shares outstanding 5,758,931 5,758,931 Diluted earnings per share of common stock $ (0.05) $ (0.10) Weighted average shares outstanding and common stock equivalents 5,999,426 5,999,426
F-2 PAGE PRO FORMA INCOME STATEMENT for the twelve months ended December 31, 1997
Sale of Pro Forma Surety Lufkin Adjustments Capital Area ---------------------- Pro Forma Corporation Branches Debits Credits Combined ------------ ------------ --------- --------- ------------- (unaudited) Interest Income: Interest and fees on loans $ 11,119,540 $(1,245,738) $ - $ - $ 9,873,802 Medical claims receivable factoring 1,477,510 - 1,477,510 Interest on federal funds sold 516,340 (500,000) - - 16,340 Interest on securities and interest Bearing deposits 2,319,295 (1,873,351) - - 445,944 ------------ ------------ --------- --------- ------------- Total interest income 15,432,685 (3,619,089) - - 11,813,596 ------------ ------------ --------- --------- ------------- Interest expense: Interest on deposits 5,749,798 (2,121,143) - - 3,628,655 Interest expense on borrowings - - - - - ------------ ------------ --------- --------- ------------- Total interest expense 5,749,798 (2,121,143) - - 3,628,655 ------------ ------------ --------- --------- ------------- Net interest income before provision for credit losses 9,682,887 (1,497,946) - - 8,184,941 Provision for credit losses and medical claims receivables losses 6,384,996 (70,000) - - 6,314,996 ------------ ------------ --------- --------- ------------- Net interest income 3,297,891 (1,427,946) - - 1,869,945 ------------ ------------ --------- --------- ------------- Non interest income 2,538,918 (447,872) - - 2,091,046 ------------ ------------ --------- --------- ------------- Non interest expense: Salaries and employee benefits 4,748,097 (797,823) - - 3,950,274 Occupancy & equipment 1,517,662 (277,921) - - 1,239,741 General & administrative 3,649,136 (266,116) - - 3,383,020 Impairment of long lived assets 1,198,288 - - - 1,198,288 ------------ ------------ --------- --------- ------------- Total noninterest expense 11,113,183 (1,341,860) - - 9,771,323 ------------ ------------ --------- --------- ------------- Income before income taxes (5,276,374) (533,958) - - (5,810,332) Income tax expense: (1,800,070) (192,225) - - (1,992,295) ------------ ------------ --------- --------- ------------- Net income $ (3,476,304) $ (341,733) $ - $ - $ (3,818,037) ============ ============ ========= ========= ============= Basic earnings (loss) per share of Common stock $ (0.60) $ (0.66) Weighted average shares outstanding 5,751,847 5,751,847 Diluted earnings per share of common stock $ (0.60) $ (0.66) Weighted average shares outstanding and common stock equivalents 5,990,815
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