-----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, NfzGq9oz44/iIO86BBlux2JWoAKZO3qrgb17MuDmqe8h3lgJKjH3TwHhd6jrCdJd zIkQSoeS9YKjhLnTuGqtHA== 0000912057-96-022449.txt : 19961011 0000912057-96-022449.hdr.sgml : 19961011 ACCESSION NUMBER: 0000912057-96-022449 CONFORMED SUBMISSION TYPE: 424B3 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19961010 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMMUNITY FIRST BANKSHARES INC CENTRAL INDEX KEY: 0000857593 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 460391436 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 424B3 SEC ACT: 1933 Act SEC FILE NUMBER: 333-06239 FILM NUMBER: 96641578 BUSINESS ADDRESS: STREET 1: 520 MAIN AVENUE CITY: FARGO STATE: ND ZIP: 58124-0001 BUSINESS PHONE: 7012985600 MAIL ADDRESS: STREET 1: 520 MAIN AVENUE CITY: FARGO STATE: ND ZIP: 58124-0001 424B3 1 SUPPLEMENT 424(B)(3) RULE 424(b)(3) REGISTRATION NO. 333-6239 SUPPLEMENT DATED SEPTEMBER 17, 1996 TO PROXY STATEMENT-PROSPECTUS OF COMMUNITY FIRST BANKSHARES, INC. AND FINANCIAL BANCORP, INC. DATED AUGUST 15, 1996 As described in the Proxy Statement-Prospectus dated August 15, 1996, under "Recent Developments Regarding CFB", CFB and Mountain Parks Financial Corp. ("Mountain Parks") of Denver, Colorado, executed a Merger Agreement on June 25, 1996. Under the terms of the agreement, upon the satisfaction of various conditions, Mountain Parks will be merged into CFB. In the merger, CFB will exchange 1.275 shares of its Common Stock for each share of Mountain Parks Common Stock, which is expected to result in the issuance of approximately 5.2 million shares of CFB Common Stock to holders of Mountain Parks Common Stock. Completion of the merger is subject to regulatory approvals and approval by shareholders of both companies, as well as certain other conditions, and is expected to be completed in the fourth quarter of 1996 or the first quarter of 1997. Attached to this Supplement as Appendix A is Unaudited Pro Forma Condensed Combined Financial Information, which shows the expected impact of the proposed acquisition of Mountain Parks on CFB's historical financial position and result of operations. Also enclosed for the information of shareholders of Financial Bancorp, Inc., are (i) the Annual Report to Shareholders of Mountain Parks for the year ended December 31, 1995, and (ii) the quarterly report of Mountain Parks on Form 10-QSB for the quarter ended June 30, 1996. APPENDIX A PRO FORMA FINANCIAL INFORMATION Page ---- Unaudited Pro Forma Condensed Combined Financial Information of Community First Bankshares, Inc.. . . . . . . . . . . A-2 Condensed Pro Forma Combined Balance Sheet - June 30, 1996 . . . . . . . A-3 Condensed Pro Forma Combined Statements of Income - Six Months Ended June 30, 1996. . . . . . . . . . . . . . . . . . . . . . . . . . . . A-4 Condensed Pro Forma Combined Statements of Income - Year ended December 31, 1995 . . . . . . . . . . . . . . . . . . . . A-5 Condensed Pro Forma Combined Statements of Income - Year ended December 31, 1994 . . . . . . . . . . . . . . . . . . . . A-6 Condensed Pro Forma Combined Statements of Income - Year ended December 31, 1993 . . . . . . . . . . . . . . . . . . . . A-7 A-1 UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION The following unaudited pro forma condensed combined financial statements and explanatory notes are presented to show the impact on CFB's historical financial position and results of operations of the Merger and the proposed acquisition of Mountain Parks. The Merger is reflected in the unaudited pro forma condensed combined financial information under the pooling of interests method of accounting. See "The Merger - Accounting Treatment." The unaudited pro forma condensed combined balance sheet assumes that the acquisition was consummated on June 30, 1996, and the unaudited pro forma condensed combined statement of income assumes that the acquisition was consummated at the beginning of each period. The balance sheet and the statements of income for certain periods also include the results of operations of High Plains Bank Corp. ("Kiowa"), the holding company of Kiowa State Bank, Kiowa, Colorado, which was acquired by Mountain Parks on July 31, 1996. Mountain Parks acquired 100% of the capital stock of Kiowa for cash consideration of $7,184,000. Mountain Parks accounted for this transaction as a purchase. Such financial statements assume that the acquisition of Kiowa by Mountain Parks was consummated at the beginning of each period for which the results of Kiowa are presented. The pro forma information should be read in conjunction with the historical financial statements (including the related notes thereto) and the financial data regarding CFB and Mountain Parks incorporated by reference. The pro forma information is not necessarily indicative of the results of operations or combined financial position that would have resulted had the acquisitions been consummated at the beginning of the periods for which an income statement is presented, nor is it necessarily indicative of the results of operations of future periods or future combined financial position. A-2 CONDENSED PRO FORMA COMBINED BALANCE SHEET JUNE 30, 1996 (Dollars in thousands) (Unaudited)
Eliminations and Adjustments Community First Mountain Parks ------------------ Pro Forma Bankshares, Inc. Financial Corp. Kiowa Debit Credit Combined ---------------- --------------- ----- ------ ------ --------- Cash and due from banks $ 81,676 $ 30,909 $ 3,526 $ 7,184(2) $ 108,927 Federal funds sold and securities purchased under agreement to resell 860 0 7,440 8,300 Interest-bearing deposits 1,461 0 126 1,587 Available-for-sale securities 409,076 90,640 10,315 510,031 Held-to-maturity securities 215,446 8,051 2,458 225,955 Loans 1,541,374 310,055 26,884 1,878,313 Less: Allowance for loan losses (20,621) (3,374) (394) (24,389) ------------ --------- -------- --------- Net loans 1,520,753 306,681 26,490 1,853,924 Bank premises and equipment 42,891 16,624 2,292 61,807 Other assets 69,065 24,685 565 3,842(2) 98,157 ------------ --------- -------- --------- TOTAL ASSETS $ 2,341,228 $ 477,590 $ 53,212 $2,868,688 ------------ --------- -------- --------- ------------ --------- -------- --------- Deposits $ 1,952,115 $ 370,279 $ 49,489 $2,371,883 Federal funds purchased and securities sold under agreements to repurchase 68,512 0 0 68,512 Other short-term borrowings 105,593 37,414 0 143,007 Long-term debt 27,586 11,500 300 300(2) 39,086 Other liabilities 23,572 7,012 381 30,965 ------------ --------- -------- ---------- TOTAL LIABILITIES 2,177,378 426,205 50,170 2,653,453 Minority interest 1,236 0 0 1,236 Stockholders' equity: Preferred stock 23,000 0 0 23,000 Common Stock 115 4 0 4(1) 47(1) 162 0(2) Capital surplus 42,349 23,701 809 23,701(1) 23,658(1) 66,007 809(2) Retained earnings 98,149 27,680 2,471 2,471(2) 125,829 Treasury stock (999) 0 (238) 238(2) (999) ------------ --------- -------- ---------- TOTAL EQUITY 162,614 51,385 3,042 213,999 ------------ --------- -------- --------- --------- ---------- TOTAL LIABILITIES AND EQUITY $ 2,341,228 $ 477,590 $ 53,212 $ 31,127 $ 31,127 $2,868,688 ------------ --------- -------- --------- --------- ---------- ------------ --------- -------- --------- --------- ----------
_________________________ (1) Issuance of 4,753,477 shares of CFB Common Stock in exchange for the 3,728,218 outstanding shares of Mountain Parks Common Stock. The calculation is based on the Exchange Rate of 1.275 shares of CFB Common Stock for each share of Mountain Parks Common Stock outstanding. (2) To record the purchase of High Plains Bank Corp. (Kiowa) by Mountain Parks for a purchase price of $7,184,000 including the recognition of goodwill. A-3 CONDENSED PRO FORMA COMBINED STATEMENTS OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1996 (Dollars in thousands, except per share data) (Unaudited)
Eliminations and Adjustments Community First Mountain Parks ------------------ Pro Forma Bankshares, Inc. Financial Corp. Kiowa Debit Credit Combined ---------------- --------------- ----- ------ ------ --------- Interest income $ 89,017 $ 20,184 $ 1,944 $ 111,145 Interest expense 39,601 5,921 662 46,184 -------- -------- ------- --------- Net interest income 49,416 14,263 1,282 64,961 Provision for loan losses 2,115 216 24 2,355 -------- -------- ------- --------- Net interest income after provision for loan losses 47,301 14,047 1,258 62,606 Net gains on sales of investment securities 0 0 0 0 Other noninterest income 9,663 2,954 292 12,909 Noninterest expense 36,099 10,558 967 128(1) 47,752 -------- -------- ------- --------- Income before income taxes 20,865 6,443 583 27,763 Provision for income taxes 7,057 2,382 168 9,607 -------- -------- ------- --------- Net income 13,808 4,061 415 18,156 Dividends on preferred stock 805 0 0 805 -------- -------- ------- --------- Net income applicable to common equity $ 13,003 $ 4,061 $ 415 $ 17,351 -------- -------- ------- --------- -------- -------- ------- --------- Earnings per common share: Primary $1.12 $1.07 $2.89 $1.05 Fully diluted $1.06 $1.07 $2.89 $1.01 Average common shares outstanding: Primary 11,622,445 3,787,422 143,525 16,451,408 Diluted 13,084,108 3,795,325 143,525 17,923,147
_________________________________ (1) Amortization of goodwill relative to the acquisition of High Plains Bank Corp. (Kiowa), by Mountain Parks, to be amortized over fifteen years. A-4 CONDENSED PRO FORMA COMBINED STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1995 (Dollars in thousands, except per share data) (Unaudited)
Eliminations and Adjustments Community First Mountain Parks ------------------ Pro Forma Bankshares, Inc. Financial Corp. Kiowa Debit Credit Combined ---------------- --------------- ----- ------ ------ --------- Interest income $ 162,093 $ 30,775 $ 3,002 $ 195,870 Interest expense 73,945 8,946 961 83,852 --------- -------- ------ --------- Net interest income 88,148 21,829 2,041 112,018 Provision for loan losses 2,432 279 0 2,711 --------- -------- ------ --------- Net interest income after provision for loan losses 85,716 21,550 2,041 109,307 Net gains on sales of investment securities 83 (31) 0 52 Other noninterest income 17,708 4,728 424 22,860 Noninterest expense 67,980 14,613 1,607 256(2) 84,456 --------- -------- ------ --------- Income before income taxes and cumulative effect of accounting change 35,527 11,634 858 47,763 Provision for income taxes 12,708 4,500 218 17,426 --------- -------- ------ --------- Net income 22,819 7,134 640 30,337 Dividends on preferred stock 1,610 0 0 1,610 --------- -------- ------ --------- Net income applicable to common equity $ 21,209 $ 7,134 $ 640 $ 28,727 --------- -------- ------ --------- --------- -------- ------ --------- Earnings per common share: Primary $1.85 $2.24 $4.46 $1.85 Fully diluted $1.75 $2.17(1) $4.46 $1.76(1) Average common shares outstanding: Primary 11,483,858 3,183,742 143,575 15,543,129 Diluted 13,029,614 3,330,538 143,575 17,276,050
___________________________________ (1) Fully diluted earnings per common share reflects an $86,000 increase in net income attributed to the after tax effect of the interest expense associated with Mountain Parks Financial Corp. 7.375% convertible debentures. (2) Amortization of goodwill relative to the acquisition of High Plains Bank Corp. (Kiowa), by Mountain Parks, to be amortized over fifteen years. A-5 CONDENSED PRO FORMA COMBINED STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1994 (Dollars in thousands, except per share data) (Unaudited)
Eliminations and Adjustments Community First Mountain Parks ------------------ Pro Forma Bankshares, Inc. Financial Corp. Debit Credit Combined ---------------- --------------- ------ ------ --------- Interest income $ 123,075 $ 20,162 $ 143,237 Interest expense 49,297 4,171 53,468 --------- -------- --------- Net interest income 73,778 15,991 89,769 Provision for loan losses 1,839 0 1,839 --------- -------- --------- Net interest income after provision for loan losses 71,939 15,991 87,930 Net gains on sales of investment securities 348 (249) 99 Other noninterest income 15,180 3,713 18,893 Noninterest expense 59,542 10,699 70,241 --------- -------- --------- Income before income taxes 27,925 8,756 36,681 Provision for income taxes 10,985 2,967 13,952 --------- -------- --------- Net income 16,940 5,789 22,729 Dividends on preferred stock 1,091 0 1,091 --------- -------- --------- Net income applicable to common equity $ 15,849 $ 5,789 $ 21,638 --------- -------- --------- --------- -------- --------- Earnings per common share: Primary $1.39 $2.32 $1.48 Fully diluted 1.37 $2.03 $1.42(1) Average common shares Primary 11,393,996 2,499,069 14,580,309 Fully diluted 12,332,543 2,983,443 16,136,433
______________________________ (1) Fully diluted earnings per common share reflects an $261,000 increase in net income attributed to the after tax effect of the interest expense associated with Mountain Parks Financial Corp. 7.375% convertible debentures. A-6 CONDENSED PRO FORMA COMBINED STATEMENTS OF INCOME FOR THE YEAR ENDED DECEMBER 31, 1993 (Dollars in thousands, except per share data) (Unaudited)
Eliminations and Adjustments Community First Mountain Parks ------------------ Pro Forma Bankshares, Inc. Financial Corp. Debit Credit Combined ---------------- --------------- ------ ------ --------- Interest income $106,299 $14,847 $121,146 Interest expense 44,084 3,187 47,271 -------- ------- -------- Net interest income 62,215 11,660 73,875 Provision for loan losses 1,798 351 2,149 -------- ------- -------- Net interest income after provision for loan losses 60,417 11,309 71,726 Net gains on sales of investment securities 1,312 598 1,910 Other noninterest income 13,093 3,155 16,248 Noninterest expense 51,085 9,769 60,854 -------- ------- -------- Income before income taxes 23,737 5,293 29,030 Provision for income taxes 8,809 1,966 10,775 -------- ------- -------- Income before cumulative effect of accounting change 14,928 3,327 18,255 Cumulative effect of accounting change 359 0 359 -------- ------- -------- Net income 15,287 3,327 18,614 Dividends on preferred stock 0 0 0 -------- ------- -------- Net income applicable to common equity $ 15,287 $ 3,327 $ 18,614 -------- ------- -------- -------- ------- -------- Earnings per common share: Primary $1.35 $1.53 $1.32 Fully diluted 1.35 $1.42(1) $1.30(1) Average common shares Primary 11,331,408 2,170,335 14,098,585 Fully diluted 11,335,365 2,400,915 14,396,532
___________________________________ (1) Fully diluted earnings per common share reflects an $79,000 increase in net income attributed to the after tax effect of the interest expense associated with Mountain Parks Financial Corp. 7.375% convertible debentures. A-7 -----END PRIVACY-ENHANCED MESSAGE-----