-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, bQ/81vvfTVkQJwDV87a5fotxZw+G9zhwHljYleZE6kbfIoMoo6qTJg7v72uP0o7f fAAIDvyGSx3eKzySorVvyg== 0000928385-95-000265.txt : 19950807 0000928385-95-000265.hdr.sgml : 19950807 ACCESSION NUMBER: 0000928385-95-000265 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950804 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950804 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN NATIONAL CORP /NC/ CENTRAL INDEX KEY: 0000092230 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 560939887 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-10853 FILM NUMBER: 95559089 BUSINESS ADDRESS: STREET 1: 500 N CHESTNUT ST CITY: LUMBERTON STATE: NC ZIP: 28358 BUSINESS PHONE: 9196712000 MAIL ADDRESS: STREET 1: 500 NORTH CHESTNUT STREET CITY: LUMBERTON STATE: NC ZIP: 28358 8-K/A 1 FORM 8-K/A =============================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C., 20549 ------------------------- FORM 8-K/A Amendment to 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 4, 1995 Amendment No. 3 SOUTHERN NATIONAL CORPORATION (Exact name of registrant as specified in its charter) Commission file number: 1-10853 NORTH CAROLINA 56-0939887 -------------- ---------- (State of incorporation) (I.R.S. Employer Identification No.) 200 WEST SECOND STREET WINSTON-SALEM, NORTH CAROLINA 27101 ----------------------------- ----- (Address of principal executive offices) (Zip Code) (910) 773-7200 (Registrant's telephone number, including area code) ------------------------- This Form 8-K has 10 pages. The sequential numbering of the pages is indicated in the lower center. =============================================================================== ITEM 5. OTHER EVENTS - -------------------- In response to a request from the Securities and Exchange Commission in a letter dated July 18, 1995, the undersigned registrant hereby amends the following items, financial statements, exhibits or other portions of its Current Report on Form 8-K dated March 14, 1995, as amended on May 15, 1995, and May 22, 1995, as set forth in the pages attached hereto. Pursuant to Item 7(b) of the registrant's Current Report on Form 8-K dated March 14, 1995, as amended on May 15, 1995, and May 22, 1995, the registrant hereby files the following pro forma information pursuant to Item 11-02(b)(1) of Regulation S-X. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS - ----------------------------------------- b. Pro Forma Financial Information Pro Forma Statement of Condition as of December 31, 1994 (unaudited) Pro Forma Statements of Operations for the Years Ended December 31, 1994, 1993 and 1992 (unaudited) Notes to the Pro Forma Financial Statements (unaudited) Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned thereunto duly authorized. SOUTHERN NATIONAL CORPORATION Date: August 4, 1995 /s/ SHERRY A. KELLETT ----------------------------- Sherry A. Kellett Executive Vice President and Controller (Principal Accounting Officer) PRO FORMA CONSOLIDATED STATEMENT OF CONDITION SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK December 31, 1994 (Dollars in thousands, except per share data)
BB&T Adjustments Pro Forma SNC Financial Commerce Incr (Dcr) Combined ---------- ----------- -------- ----------- ----------- Assets Cash and due from depository institutions $ 264,664 $ 340,036 $ 33,094 $ -- $ 637,794 Interest-bearing bank balances 962 19,000 -- 1,000 a 20,962 Federal funds sold and securities purchased under resale agreements or similar arrangements 9,010 4,011 -- -- 13,021 Securities available for sale (at market) 992,016 2,369,371 98,311 -- 3,459,698 Loans held for sale 21,464 -- -- 114,887 a 136,351 Securities held to maturity (market value: $1,889,911) 1,774,202 102,067 89,150 -- 1,965,419 Loans and leases 5,434,878 7,199,569 450,798 (113,494)a 12,971,751 Allowance for losses (70,573) (93,504) (7,657) -- (171,734) ---------- ----------- -------- --------- ----------- Net loans and leases 5,364,305 7,106,065 443,141 (113,494) 12,800,017 ---------- ----------- -------- --------- ----------- Premises and equipment, net 165,068 149,240 18,761 -- 333,069 Other assets 164,449 304,540 17,886 1,857 a,b 488,732 ---------- ----------- -------- --------- ----------- Total assets $8,756,140 $10,394,330 $700,343 $ 4,250 $19,855,063 ========== =========== ======== ========= =========== Liabilities and Shareholders' Equity Deposits: Noninterest-bearing $ 782,172 $ 941,594 $119,253 $ -- $ 1,843,019 Interest-bearing 5,382,908 6,578,730 509,497 -- 12,471,135 ---------- ----------- -------- --------- ----------- Total deposits 6,165,080 7,520,324 628,750 -- 14,314,154 Short-term borrowings 1,654,465 1,234,063 14,000 -- 2,902,528 Accounts payable and other liabilities 106,721 110,828 2,974 10,626 b 231,149 Long-term debt 197,530 706,471 6,754 -- 910,755 ---------- ----------- -------- --------- ----------- Total liabilities 8,123,796 9,571,686 652,478 10,626 18,358,586 ---------- ----------- -------- --------- ----------- Shareholders' equity: Preferred stock, $5 par, 5,000,000 shares authorized, 770,000 issued and outstanding in 1994 3,850 -- -- -- 3,850 Common stock, $5 par, 300,000,000 shares authorized, 102,215,032 issued and outstanding in 1994 220,794 91,127 6,874 192,280 c 511,075 Paid-in capital 164,934 282,535 30,410 (192,280)c 285,599 Retained earnings 273,480 495,427 13,448 (6,376)b 775,979 Unearned compensation (2,650) (4,792) -- -- (7,442) Net unrealized depreciation on securities available for sale (28,064) (41,653) (2,867) -- (72,584) ---------- ----------- -------- --------- ----------- Total shareholders' equity 632,344 822,644 47,865 (6,376) 1,496,477 ---------- ----------- -------- --------- ----------- Total liabilities and shareholders' equity $8,756,140 $10,394,330 $700,343 $ 4,250 $19,855,063 ========== =========== ======== ========= ===========
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK For the Year Ended December 31, 1994 (Dollars in thousands, except per share data)
BB&T Adjustments Pro Forma SNC Financial Commerce Incr (Dcr) Combined ---------- ----------- -------- ----------- ----------- Interest Income Interest and fees on loans and leases $423,461 $561,564 $35,783 $ 248 a $1,021,056 Interest and dividends on securities 152,471 126,139 13,195 -- 291,805 Interest on temporary investments 2,456 2,396 580 (248)a 5,184 -------- -------- ------- ------- ---------- Total interest income 578,388 690,099 49,558 -- 1,318,045 -------- -------- ------- ------- ---------- Interest Expense Interest on deposits 191,005 230,917 19,954 -- 441,876 Interest on short-term borrowings 48,938 49,461 77 -- 98,476 Interest on long-term debt 15,728 24,535 664 -- 40,927 -------- -------- ------- ------- ---------- Total interest expense 255,671 304,913 20,695 -- 581,279 -------- -------- ------- ------- ---------- Net Interest Income 322,717 385,186 28,863 -- 736,766 Provision for loan and lease losses 7,246 8,000 2,600 -- 17,846 -------- -------- ------- ------- ---------- Net Interest Income After Provision for Loan and Lease Losses 315,471 377,186 26,263 -- 718,920 -------- -------- ------- ------- ---------- Noninterest Income Service charges on deposit accounts 35,222 44,906 3,957 (1,330)d 82,755 Nondeposit fees and commissions 32,004 61,120 3,144 4,008 d 100,276 Securities gains, net 906 2,120 48 -- 3,074 Other income 14,914 22,337 1,644 1,047 d 39,942 -------- -------- ------- ------- ---------- Total noninterest income 83,046 130,483 8,793 3,725 226,047 -------- -------- ------- ------- ---------- Noninterest Expense Personnel expense 119,023 163,325 11,644 (559)b 293,433 Occupancy and equipment expense 36,143 50,261 4,579 -- 90,983 Federal deposit insurance expense 14,401 16,886 -- 1,410 d 32,697 Other expense 61,662 93,637 8,609 2,315 d 166,223 -------- -------- ------- ------- ---------- Total noninterest expense 231,229 324,109 24,832 3,166 583,336 -------- -------- ------- ------- ---------- Earnings Income before income taxes 167,288 183,560 10,224 559 361,631 Provision for income taxes 57,644 63,678 3,213 224 b 124,759 -------- -------- ------- ------- ---------- Net Income 109,644 119,882 7,011 335 236,872 Preferred dividend requirements 5,198 -- -- -- 5,198 -------- -------- ------- ------- ---------- Income applicable to common shares $104,446 $119,882 $ 7,011 $ 335 $ 231,674 ======== ======== ======= ======= ========== Per Common Share Net income: Primary $ 2.38 $ 3.27 $ 2.48 $ 2.26 ======== ======== ======= ========== Fully diluted $ 2.27 $ 3.27 $ 2.37 $ 2.21 ======== ======== ======= ========== Cash dividends paid per common share $ 0.74 $ 1.12 $ 0.70 $ 0.74 ======== ======== ======= ==========
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK For the Year Ended December 31, 1993 (Dollars in thousands, except per share data)
BB&T Adjustments Pro Forma SNC Financial Commerce Incr (Dcr) Combined ------------- ------------- ------------- ------------- ------------- Interest Income Interest and fees on loans and leases $ 405,121 $ 479,212 $ 30,861 $ 376 a $ 915,570 Interest and dividends on securities 139,768 124,271 15,689 - 279,728 Interest on temporary investments 2,421 1,668 697 (376)a 4,410 ------------- ------------- ------------- ------------- ------------- Total interest income 547,310 605,151 47,247 - 1,199,708 ------------- ------------- ------------- ------------- ------------- Interest Expense Interest on deposits 195,204 212,668 20,322 - 428,194 Interest on short-term borrowings 18,849 24,733 26 - 43,608 Interest on long-term debt 22,794 10,961 635 - 34,390 ------------- ------------- ------------- ------------- ------------- Total interest expense 236,847 248,362 20,983 - 506,192 ------------- ------------- ------------- ------------- ------------- Net Interest Income 310,463 356,789 26,264 - 693,516 Provision for loan and lease losses 31,438 19,048 2,825 - 53,311 ------------- ------------- ------------- ------------- ------------- Net Interest Income After Provision for Loan and Lease Losses 279,025 337,741 23,439 - 640,205 ------------- ------------- ------------- ------------- ------------- Noninterest Income Service charges on deposit accounts 36,838 40,764 3,428 (1,360)d 79,670 Nondeposit fees and commissions 22,490 57,963 4,435 6,892 d 91,780 Securities gains, net 13,714 1,720 1,407 - 16,841 Other income 14,630 19,080 1,385 (3,068)d 32,027 ------------- ------------- ------------- ------------- ------------- Total noninterest income 87,672 119,527 10,655 2,464 220,318 ------------- ------------- ------------- ------------- ------------- Noninterest Expense Personnel expense 131,681 147,644 10,721 (559)b 289,487 Occupancy and equipment expense 38,153 40,344 4,134 - 91,631 Federal deposit insurance expense 14,074 15,327 - 1,329 d 30,730 Loss on bulk sale of assets 49,147 - - - 49,147 Other expense 103,004 89,259 8,851 1,135 d 202,249 ------------- ------------- ------------- ------------- ------------- Total noninterest expense 336,059 301,574 23,706 1,905 663,244 ------------- ------------- ------------- ------------- ------------- Earnings Income before income taxes 30,638 155,694 10,388 559 197,279 Provision for income taxes 22,445 50,682 3,837 224 b 77,188 ------------- ------------- ------------- ------------- ------------- Income before cumulative effect of changes in accounting principles 8,193 105,012 6,551 335 120,091 Less: cumulative effect of changes in accounting principles, net of income taxes 27,217 - - 7,046 34,263 ------------- ------------- ------------- ------------- ------------- Net (Loss) Income (19,024) 105,012 6,551 (6,711) 85,828 Preferred dividend requirements 5,198 - - - 5,198 ------------- ------------- ------------- ------------- ------------- (Loss) Income applicable to common shares $ (24,222) $ 105,012 $ 6,551 $ (6,711) $ 80,630 ============= ============= ============= ============= ============= Per Common Share Net (loss) income: Primary Income before cumulative effect $ 0.07 $ 2.95 $ 2.38 $ 1.16 Less: cumulative effect 0.64 - - 0.35 ------------- ------------- ------------- ------------- Net (loss) income $ (0.57) $ 2.95 $ 2.38 $ 0.81 ============= ============= ============= ============= Fully diluted Income before cumulative effect $ 0.07 $ 2.91 $ 2.28 $ 1.16 Less: cumulative effect 0.64 - - 0.35 ------------- ------------- ------------- ------------- Net (loss) income (0.57) 2.91 2.28 0.81 ============= ============= ============= ============= Cash dividends paid per common share $ 0.64 $ 1.02 $ 0.51 $ 0.64 ============= ============= ============= =============
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK For the Year Ended December 31, 1992 (Dollars in thousands, except per share data)
BB&T Adjustments Pro Forma SNC Financial Commerce Incr (Dcr) Combined ------------- ------------- ------------- ------------- ------------- Interest Income Interest and fees on loans and leases $ 428,923 $ 454,061 $ 30,175 $ 434 a $ 913,593 Interest and dividends on securities 137,025 135,529 13,689 - 286,243 Interest on temporary investments 5,486 2,026 1,075 (434)a 8,153 ------------- ------------- ------------- ------------- ------------- Total interest income 571,434 591,616 44,939 - 1,207,989 ------------- ------------- ------------- ------------- ------------- Interest Expense Interest on deposits 251,172 249,876 21,845 - 522,893 Interest on short-term borrowings 14,964 16,996 19 - 31,979 Interest on long-term debt 25,652 8,711 550 - 34,913 ------------- ------------- ------------- ------------- ------------- Total interest expense 291,788 275,583 22,414 - 589,785 ------------- ------------- ------------- ------------- ------------- Net Interest Income 279,646 316,033 22,525 - 618,204 Provision for loan and lease losses 25,671 32,975 4,225 - 62,871 ------------- ------------- ------------- ------------- ------------- Net Interest Income After Provision for Loan and Lease Losses 253,975 283,058 18,300 - 555,333 ------------- ------------- ------------- ------------- ------------- Noninterest Income Service charges on deposit accounts 36,455 33,606 3,006 (1,399)d 71,668 Nondeposit fees and commissions 20,454 42,894 3,025 12,763 d 79,136 Securities gains, net 1,972 6,268 1,098 - 9,338 Other income 19,871 12,781 1,081 (8,002)d 25,731 ------------- ------------- ------------- ------------- ------------- Total noninterest income 78,752 95,549 8,210 3,362 185,873 ------------- ------------- ------------- ------------- ------------- Noninterest Expense Personnel expense 114,258 123,814 8,926 - 246,998 Occupancy and equipment expense 33,184 40,210 3,730 - 77,124 Federal deposit insurance expense 12,826 13,456 - 1,102 d 27,384 Other expense 73,304 76,653 6,435 2,260 d 158,652 ------------- ------------- ------------- ------------- ------------- Total noninterest expense 233,572 254,133 19,091 3,362 510,158 ------------- ------------- ------------- ------------- ------------- Earnings Income before income taxes 99,155 124,474 7,419 - 231,048 Provision for income taxes 39,997 41,853 2,477 - 84,322 ------------- ------------- ------------- ------------- ------------- Net Income 59,163 82,621 4,942 - 146,726 Preferred dividend requirements 4,605 - - - 4,605 ------------- ------------- ------------- ------------- ------------- Income applicable to common shares $ 54,558 $ 82,621 $ 4,942 $ - $ 142,121 ============= ============= ============= ============= ============= Per Common Share Net income: Primary $ 1.34 $ 2.53 $ 2.05 $ 1.53 ============= ============= ============= ============= Fully diluted $ 1.31 $ 2.43 $ 1.97 $ 1.48 ============= ============= ============= ============= Cash dividends paid per common share $ 0.50 $ 0.91 $ 0.26 $ 0.50 ============= ============= ============= =============
NOTES TO PRO FORMA CONSOLIDATED STATEMENTS OF CONDITION AND OPERATIONS SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK a) Adjustments were made to conform the presentation of loans held for sale which were classified as other assets for Commerce Bank ("Commerce") and not separately classified for BB&T Financial Corporation ("BB&T"). Commerce also included temporary investments in other assets, and these were reclassified to interest-bearing bank balances. Adjustments were also made to the statements of operations to reclassify the interest income from Commerce's loans held for sale from interest income on temporary investments to interest income on loans and leases. The 1994 entries are as follows: Statement of Condition - ---------------------- Loans held for sale 114,887 Loans and leases 113,494 Other assets 1,393 Interest-bearing bank balances 1,000 Other assets 1,000 Statement of Operations - ------------------------ Interest on temporary investments 248 Interest and fees on loans and leases 248
Note: 1993 and 1992 adjustments were of the same nature as the 1994 adjustments presented above. b) In consummating the merger of Southern National Corporation ("Southern National") and BB&T, adjustments were necessary to conform BB&T's method of accounting for postretirement benefits other than pensions to that of Southern National. Statement of Financial Accounting Standards No. 106, "Employers' Accounting for Postretirement Benefits Other than Pensions," allowed employers to recognize the transition obligation associated with implementation at the time of adoption or on a delayed basis over the planned participants' future service periods. When adopted in 1993, Southern National and BB&T elected to treat the transition obligation differently. Southern National recognized the transition obligation at the time of adoption, while BB&T elected to recognize the transition obligation over the planned participants' future service periods. To conform the accounting treatment of BB&T to that of Southern National, a prior period adjustment was made at the date of merger with an effective date of January 1, 1993. The 1994 entries are as follows: Statement of Condition - ---------------------- Other assets 4,250 Retained earnings 6,376 Accounts payable and other liabilities 10,626
The $559,000 decrease in personnel expense in 1994 and 1993 represents the reduction in amortization of the transition obligation. Note: 1993 adjustments were of the same nature as the 1994 adjustments presented or described above. c) These adjustments reflect the changes in the stock accounts related to the issuance of shares to consummate the merger with BB&T at the 1.45 exchange ratio and to consummate the merger with Commerce at the 1.305 exchange ratio. Commerce shares were subsequently also subject to the 1.45 exchange ratio as part of BB&T. These entries also reflect the conversion of Commerce's $2.50 par value stock to Southern National's $5.00 par value and the same conversion in par value of stock for BB&T from their par value of $2.50. The 1994 entries are as follows: Statement of Condition - ---------------------- Paid-in capital 173,141 Common stock 173,141 Paid-in capital 19,139 Common stock 19,139
d) These adjustments were necessary to conform the presentation of Commerce, Southern National and BB&T for income and expense items which were classified differently prior to merger. The 1994 entries are as follows: Statement of Operations - ----------------------- Other expense 3,725 Service charges on deposit accounts 1,106 Other income 4,831
To reclassify check purchases and sales from service charges on deposit accounts to other expense and other income. Service charges on deposit accounts 224 Nondeposit fees and commissions 224 To reclassify ATM income from service charges on deposit accounts to nondeposit fees and commissions. Other income 1,006 Nondeposit fees and commissions 1,006 To reclassify gain on sale of mortgage loans from other income to nondeposit fees and commissions. Other income 2,778 Nondeposit fees and commissions 2,778 To reclassify safe deposit box income from other income to nondeposit fees and commissions. Federal deposit insurance expense 1,410 Other expense 1,410 To reclassify Federal deposit insurance expense to a separate line item from other expense. Note: 1993 and 1992 adjustments were of the same nature as the 1994 adjustments presented above.
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