-----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, B5oWS4HYdtr+wHJASKTyBpQbc3jv0A2r5BJH7XW0cchCJhT2gQsy43s+E9E70G+v o/e9i6RhtsIW2VHotDcSkg== 0000950152-96-004390.txt : 19960830 0000950152-96-004390.hdr.sgml : 19960830 ACCESSION NUMBER: 0000950152-96-004390 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960814 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19960829 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANCFIRST OHIO CORP CENTRAL INDEX KEY: 0000868572 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 311294136 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-18840 FILM NUMBER: 96623374 BUSINESS ADDRESS: STREET 1: 422 MAIN ST CITY: ZANESVILLE STATE: OH ZIP: 43702 BUSINESS PHONE: 6144528444 MAIL ADDRESS: STREET 1: 422 MAIN STREET CITY: ZANESVILLE STATE: OH ZIP: 43701 FORMER COMPANY: FORMER CONFORMED NAME: BANCFIRST CORP /OH/ DATE OF NAME CHANGE: 19600201 8-K 1 BANCFIRST OHIO CORP 8-K 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 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): August 14, 1996 BANCFIRST OHIO CORP. (Exact name of registrant as specified in its charter) Ohio 0-18840 31-1294136 (State or other (Commission (IRS Employer jurisdiction of File Number) Identification No.) incorporation) 422 Main Street, P.O. Box 4658 Zanesville, Ohio 43702 (Address of principal executive offices, with zip code) Registrant's telephone number, including area code: (614) 452-8444 1 2 ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. On August 14, 1996, the Company purchased all of the issued and outstanding stock of County Savings Bank ("County") pursuant to a Stock Purchase Agreement with First Financial Group, Inc. ("FFG") dated March 27, 1996. The aggregate purchase price of approximately $47.8 million, was paid in cash. The purchase price included an aggregate of $3.0 million paid to certain shareholders of FFG pursuant to non-competition agreements entered into with the Company. The Company funded the acquisition from (i) the net proceeds of approximately $25.9 million from its recent sale of 1,000,000 shares of its common stock, (ii) proceeds from a $15,000,000 loan from LaSalle National Bank (the "Loan"), and (iii) approximately $6.7 million from the Company's existing cash. The Loan is in the form of a seven-year term loan, expiring September 1, 2003, with annual interest payable at a floating rate equal to LIBOR plus 1.35%. The Company is required to make quarterly interest payments beginning 90 days from the date of funding of the Loan, and will be required to make annual principal payments beginning 18 months from funding, based upon a 10-year amortization. The terms of the sale, including the purchase price and form of consideration was the result of arms'-length negotiations between the parties. Prior to this transaction, there has been no material relationship between County and the Company, its affiliates, any officer or director of the Company or any of their affiliates. In connection with the acquisition, the Company acquired all of the equipment and other physical property of County, consisting of equipment and physical property used in County's banking business. The Company intends to continue to use the assets acquired in this transaction in the manner utilized by County prior to the acquisition. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (a) Financial Statements of businesses acquired Filed as a part of the registration statement on Form S-3, registration number 333-6707. (b) Pro forma financial information Attached hereto as Appendix A. (c) Exhibits. 2.1 Stock Purchase Agreement by and between the Company and First Financial Group, Inc. Dated March 27, 1996 (incorporated by reference to Exhibit 2.1 to the Company's Form 8-K filed March 28, 1996). 2 3 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 on this 29th day of August, 1996. BANCFIRST OHIO CORP. By: /s/ Gary N. Fields --------------------------------- Gary N. Fields, President 3 4 APPENDIX A BANCFIRST OHIO CORP. UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS The following unaudited Pro Forma Consolidated Financial Statements of the Company include the historical Consolidated Financial Statements of the Company and County and give effect to the transactions and events described in the Notes to the Pro Forma Consolidated Financial Statements as if the transactions and events referred to therein were initiated at the beginning of 1995 in the case of the unaudited Pro Forma Consolidated Statements of Income and as of June 30, 1996, in the case of the unaudited Pro Forma Consolidated Balance Sheet. The unaudited Pro Forma Consolidated Financial Statements give effect to the following transactions and events: (i) the sale and issuance of 1,000,000 shares of Common Stock in the Offering, (ii) borrowings of $15.0 million under the Loan, and (iii) the aggregate amount of cash to be paid to FFG and its shareholders as a result of the Acquisition. The Acquisition will be accounted for as a purchase and County's assets and liabilities will be restated at their fair values and identifiable intangible assets will be recorded. The excess of the purchase price over the assets acquired and liabilities assumed will be recorded as goodwill. The unaudited Pro Forma Consolidated Financial Statements do not give effect to any revenue enhancements or operating efficiencies that management believes may result from the Acquisition. Management believes the assumptions used provide a reasonable basis on which to present the unaudited Pro Forma Consolidated Financial Statements. This information should be read in conjunction with the historical Consolidated Financial Statements and notes thereto of both the Company and County included elsewhere in this Prospectus. The Pro Forma Consolidated Financial Statements are not necessarily indicative of the Company's results of operations or financial position had the transactions above been consummated on the dates assumed and do not project the Company's results of operations or the Company's financial position for any future date or period. 5 BANCFIRST OHIO CORP. UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 1996 -------------------------------------------------------- BANCFIRST COUNTY PRO FORMA PRO FORMA HISTORICAL HISTORICAL ADJUSTMENTS CONSOLIDATED ---------- ---------- ----------- ------------ (IN THOUSANDS) ASSETS: Cash and due from banks.............. $ 19,317 $ 2,839 $ (7,403)(4)(5) $ 14,753 Federal funds sold................... 326 -- -- 326 Securities held to maturity, at amortized cost (approximate fair value of $8,583 and $45,535 for the Company and County, respectively)...................... 8,542 46,367 (1,383)(3) 53,526 Securities available-for-sale, at fair value......................... 160,502 66,097 -- 226,599 ---------- -------- --------- ---------- Total investment securities........ 169,044 112,464 (1,383) 280,125 ---------- -------- --------- ---------- Loans, net of unearned income........ 282,943 400,965 1,186 (3) 685,094 Allowance for possible loan losses... (3,544) (2,143) -- (5,687) ---------- -------- --------- ---------- Net loans.......................... 279,399 398,822 1,186 679,407 ---------- -------- --------- ---------- Premises and equipment, net.......... 4,612 1,966 1,290 (3) 7,868 Accrued interest receivable.......... 3,397 3,180 -- 6,577 Other assets......................... 4,187 2,473 -- 6,660 Noncompete agreement................. -- -- 3,000 (5) 3,000 Core deposit intangibles............. -- -- 3,400 (3) 3,400 Goodwill............................. -- -- 6,927 (4) 6,927 ---------- -------- --------- ---------- Total assets.................... $ 480,282 $521,744 $ 7,017 $1,009,043 ========= ======== ========= ========== LIABILITIES AND SHAREHOLDERS' EQUITY: Liabilities: Deposits: Non-interest-bearing deposits...... $ 42,171 $ 8,572 $ -- $ 50,743 Interest-bearing deposits.......... 316,568 344,123 523 (3) 661,214 ---------- -------- --------- ---------- Total deposits.................. 358,739 352,695 523 711,957 Short-term borrowings................ 1,199 131,217 -- 132,416 Long-term borrowings................. 66,525 -- 15,000 (1) 81,525 Accrued interest payable............. 1,547 374 -- 1,921 Other liabilities.................... 1,780 2,350 (78) 4,852 -- -- 800 (3) -- ---------- -------- --------- ---------- Total liabilities............... 429,790 486,636 16,245 932,671 ---------- -------- --------- ---------- Shareholders' equity: Common stock....................... 30,340 600 9,400 (2)(4) 40,340 Capital in excess of par value..... 6,922 -- 15,880 (2)(4) 22,802 Retained earnings.................. 14,943 34,560 (34,560)(4) 14,943 Unrealized holdings gains(losses) on securities available-for-sale, net....... (580) (52) 52 (4) (580) Treasury stock..................... (1,133) -- -- (1,133) ---------- -------- --------- ---------- Total shareholders' equity...... 50,492 35,108 (9,228) 76,372 ---------- -------- --------- ---------- Total liabilities and shareholders' equity.......... $ 480,282 $521,744 $ 7,017 $1,009,043 ========== ======== ========= ==========
6 BANCFIRST OHIO CORP. UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME SUMMARY
SIX MONTHS ENDED YEAR ENDED JUNE 30, 1996 DECEMBER 31, 1995 ------------- ------------------ (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income: Interest and fees on loans............................... $ 27,320 $ 49,791 Interest and dividends on securities: Taxable............................................... 9,106 19,697 Tax exempt............................................ 659 1,148 Other interest income...................................... 118 216 -------------- ----------------- Total interest income................................. 37,203 70,852 -------------- ----------------- Interest expense: Time deposits over $100.................................. 1,500 2,498 Other deposits........................................... 14,578 26,855 FHLB advances............................................ 3,821 8,466 Other borrowings......................................... 1,314 2,757 -------------- ----------------- Total interest expense................................ 21,213 40,576 -------------- ----------------- Net interest income................................... 15,990 30,276 Provision for possible loan losses......................... 798 1,217 -------------- ----------------- Net interest income after provision for loan losses........ 15,192 29,059 -------------- ----------------- Non-interest income: Trust and custodian fees................................. 726 1,259 Customer service fees.................................... 1,168 2,302 Investment securities gains.............................. 299 298 Gain on sale of loans.................................... 1,109 1,432 Other.................................................... 574 1,363 -------------- ----------------- Total non-interest income............................. 3,876 6,654 -------------- ----------------- Non-interest expenses: Salaries and employee benefits........................... 6,384 12,322 Net occupancy expense.................................... 940 1,884 Other.................................................... 5,014 9,865 -------------- ----------------- Total non-interest expenses................................ 12,338 24,071 -------------- ----------------- Income before income taxes............................... 6,730 11,642 Provision for federal income taxes......................... 2,133 3,184 -------------- ----------------- Net income............................................ $ 4,597 $ 8,458 ============== ================= Net income per share....................................... $ 1.16 $ 2.13 Weighted average shares outstanding........................ 3,972,883 3,973,694
7 BANCFIRST OHIO CORP. UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 1996 ------------------------------------------------------- BANCFIRST COUNTY PRO FORMA PRO FORMA HISTORICAL HISTORICAL ADJUSTMENTS CONSOLIDATED ---------- ---------- ----------- ------------ (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income: Interest and fees on loans.............. $ 12,363 $ 15,076 $ (119)(1) $ 27,320 Interest and dividends on securities: Taxable.............................. 4,966 4,054 86 (1) 9,106 Tax exempt........................... 659 -- -- 659 Other interest income..................... 118 -- -- 118 ---------- ---------- ----------- ------------ Total interest income................ 18,106 19,130 (33) 37,203 ---------- ---------- ----------- ------------ Interest expense: Time deposits over $100................. 1,500 -- -- 1,500 Other deposits.......................... 5,259 9,449 (130)(1) 14,578 FHLB advances........................... 1,694 2,127 3,821 Other borrowings........................ 403 395 516 (2) 1,314 ---------- ---------- ----------- ------------ Total interest expense............... 8,856 11,971 386 21,213 ---------- ---------- ----------- ------------ Net interest income.................. 9,250 7,159 (419) 15,990 Provision for possible loan losses........ 610 188 -- 798 ---------- ---------- ----------- ------------ Net interest income after provision for loan losses............................. 8,640 6,971 (419) 15,192 ---------- ---------- ----------- ------------ Non-interest income: Trust and custodian fees................ 726 -- -- 726 Customer service fees................... 843 325 -- 1,168 Investment securities gains/losses...... 3 296 -- 299 Gain on sale of loans................... 1,046 63 -- 1,109 Other................................... 384 190 -- 574 ---------- ---------- ----------- ------------ Total non-interest income............ 3,002 874 -- 3,876 Non-interest expenses: Salaries and employee benefits.......... 3,743 2,641 -- 6,384 Net occupancy expense................... 387 527 26 (1) 940 Other................................... 2,750 1,573 391 (1) 5,014 300 (3) ---------- ---------- ----------- ------------ Total non-interest expenses............... 6,880 4,741 717 12,338 ---------- ---------- ----------- ------------ Income before income taxes.............. 4,762 3,104 (1,136) 6,730 Provision for federal income taxes........ 1,355 1,031 (253)(4) 2,133 ---------- ---------- ----------- ------------ Net income........................... $ 3,407 $ 2,073 $ (883) $ 4,597 ========= ========= =========== =========== Net income per share...................... $ 1.15 $ 1.16 Weighted average shares outstanding....... 2,972,883 1,000,000 3,972,883
8 BANCFIRST OHIO CORP. UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1995 ------------------------------------------------------- BANCFIRST COUNTY PRO FORMA PRO FORMA HISTORICAL HISTORICAL ADJUSTMENTS CONSOLIDATED ---------- ---------- ----------- ------------ (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Interest income: Interest and fees on loans.............. $ 23,088 $ 26,940 $ (237)(1) $ 49,791 Interest and dividends on securities: Taxable.............................. 9,611 9,913 173 (1) 19,697 Tax exempt........................... 1,148 -- -- 1,148 Other interest income................... 216 -- -- 216 ---------- ---------- ----------- ------------ Total interest income................ 34,063 36,853 (64) 70,852 ---------- ---------- ----------- ------------ Interest expense: Time deposits over $100................. 2,498 -- -- 2,498 Other deposits.......................... 9,927 17,190 (262)(1) 26,855 FHLB advances........................... 3,765 4,701 8,466 Other borrowings........................ 167 1,555 1,035 (2) 2,757 ---------- ---------- ----------- ------------ Total interest expense............... 16,357 23,446 773 40,576 ---------- ---------- ----------- ------------ Net interest income.................. 17,706 13,407 (837) 30,276 Provision for possible loan losses........ 967 250 -- 1,217 ---------- ---------- ----------- ------------ Net interest income after provision for loan losses............................. 16,739 13,157 (837) 29,059 ---------- ---------- ----------- ------------ Non-interest income: Trust and custodian fees................ 1,259 -- -- 1,259 Customer service fees................... 1,714 588 -- 2,302 Investment securities gains/losses...... 136 162 -- 298 Gain on sale of loans................... 1,310 122 -- 1,432 Other................................... 565 798 -- 1,363 ---------- ---------- ----------- ------------ Total non-interest income............ 4,984 1,670 -- 6,654 Non-interest expenses: Salaries and employee benefits.......... 6,866 5,456 -- 12,322 Net occupancy expense................... 752 1,080 52 (1) 1,884 Other................................... 5,187 3,295 783 (1) 9,865 600 (3) ---------- ---------- ----------- ------------ Total non-interest expenses............... 12,805 9,831 1,435 24,071 ---------- ---------- ----------- ------------ Income before income taxes.............. 8,918 4,996 (2,272) 11,642 Provision for federal income taxes........ 2,706 984 (506)(4) 3,184 ---------- ---------- ----------- ------------ Net income........................... $ 6,212 $ 4,012 $ (1,766) $ 8,458 ========= ========= =========== =========== Net income per share...................... $ 2.09 $ 2.13 Weighted average shares outstanding....... 2,973,694 1,000,000 3,973,694
9 BANCFIRST OHIO CORPORATION - -------------------------------------------------------------------------------- NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) BASIS OF PRESENTATION The following pro forma adjustments are based on available information and certain estimates and assumptions. Therefore, it is likely that the actual adjustments will differ from the pro forma adjustments. The Company believes that such assumptions provide a reasonable basis for presenting all of the significant effects of the following transactions and that the pro forma adjustments give appropriate effect to those assumptions and are properly applied in the unaudited pro forma consolidated financial statements. ADJUSTMENTS TO PRO FORMA CONSOLIDATED BALANCE SHEET (1) Represents long-term borrowings of $15,000 under a loan agreement to be entered into with LaSalle National Bank to fund a portion of the proposed Acquisition. (2) Represents the issuance and sale of 1,000,000 shares of Common Stock in the Offering, at an offering price of $28.00. (3) Represents the impact of the purchase accounting adjustments as follows:
DEBIT CREDIT ------ ------ Core deposit intangibles......................................... $3,400 Bank premises and equipment, net................................. 1,290 Loans............................................................ 1,186 Securities held-to-maturity.................................... $1,383 OPEB obligation................................................ 800 Other liabilities.............................................. 78 Interest-bearing deposits...................................... 523
Deferred taxes have been provided on the difference between the tax basis and the new book basis of assets acquired and liabilities assumed at the statutory federal rate of 34% and recorded as other liabilities. (4) Represents the proposed Acquisition for a purchase price of $44,775, subject to adjustment by the amount by which County's shareholder's equity is greater than or less than $35,000 at the date of closing. The pro forma consolidated balance sheet reflects an upward adjustment of $108 to the purchase price based upon County's shareholder's equity at June 30, 1996. Approximately $400 of direct acquisition costs to be paid in cash are capitalized. The proposed Acquisition will be funded by the net proceeds from the Offering, $15,000 of long-term borrowings and utilization of approximately $7,403 of existing Company assets. Purchase price............................................................ $44,775 Capitalized acquisition costs............................................. 400 ------- Total acquisition costs......................................... 45,175 County's shareholder's equity at June 30, 1996........................... 35,108 Shareholder's equity at June 30, 1996 above agreed upon capital level at closing................................................................. 108 ------- Excess value over book value.............................................. $10,175 ======= Adjustments to reflect fair value: Securities.............................................................. $(1,383) Loans................................................................... 1,186 Bank premises and equipment............................................. 1,290
10 BANCFIRST OHIO CORPORATION - -------------------------------------------------------------------------------- NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS -- CONTINUED (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Core deposit asset...................................................... 3,400 Interest-bearing deposits............................................... (523) OPEB obligation......................................................... (800) Other liabilities....................................................... 78 ------- Total fair value adjustments.................................... $ 3,248 ------- Total goodwill............................................................ $ 6,927 =======
(5) Represents payment of approximately $3,000 to shareholders of FFG pursuant to non-competition agreements. ADJUSTMENTS TO PRO FORMA CONSOLIDATED STATEMENTS OF INCOME (1) Represents the amortization of the purchase accounting adjustments over the following periods: Amortization for the purchase accounting adjustment is as follows:
AMORTIZATION AMORTIZATION PERIOD METHOD ------------ ------------- Bank premises and equipment, net......................... 25 years Straight-line Loans.................................................... 5 years Straight-line Securities held-to-maturity.............................. 8 years Level yield Core deposit intangibles................................. 15 years Accelerated Goodwill................................................. 25 years Straight-line Interest-bearing deposits................................ 2 years Straight-line
(2) Represents interest expense on $15,000 of long-term borrowings. (3) Represents amortization of the non-competition agreements on a straight-line basis over five years. (4) Represents estimated income tax effects of the pro forma adjustments at an effective tax rate of 34%. -----END PRIVACY-ENHANCED MESSAGE-----