-----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, Nh8P7Dlfcc08+/ciAyK7dXaANBPFdzy8HQ2v/6YqFaIEz8NQVUOAaLgs+FYdJoWP nysQ09BHxecl7xKDmPCRcg== 0000950168-97-002559.txt : 19970912 0000950168-97-002559.hdr.sgml : 19970912 ACCESSION NUMBER: 0000950168-97-002559 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970815 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19970815 DATE AS OF CHANGE: 19970908 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: BB&T CORP CENTRAL INDEX KEY: 0000092230 STANDARD INDUSTRIAL CLASSIFICATION: 6021 IRS NUMBER: 560939887 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-10853 FILM NUMBER: 97672833 BUSINESS ADDRESS: STREET 1: 200 WEST SECOND STREET CITY: WINSTON-SALEM STATE: NC ZIP: 27101 BUSINESS PHONE: 9107332000 MAIL ADDRESS: STREET 1: 200 WEST SECOND STREET CITY: WINSTON-SALEM STATE: NC ZIP: 27101 FORMER COMPANY: FORMER CONFORMED NAME: SOUTHERN NATIONAL CORP /NC/ DATE OF NAME CHANGE: 19920703 8-K 1 BB&T 8-K 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 RECORDED) AUGUST 15, 1997 BB&T 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 (Zip Code) Executive Offices)
(910) 733-2000 (Registrant's Telephone Number, Including Area Code) This Form 8-K has 6 pages. ITEM 5. On July 1, 1997, BB&T Corporation completed its acquisition of United Carolina Bancshares Corporation ("UCB") of Whiteville, North Carolina in a transaction accounted for as a pooling of interests. Under the terms of the merger agreement, UCB shareholders received 1.135 shares of BB&T common stock in exchange for each share of UCB common stock held, which resulted in the issuance of 27.7 million shares. The purpose of this filing is to report the combined financial condition and combined results of operations including UCB for the period ending July 31, 1997 and to report certain prior period balances restated to include the accounts of UCB. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS Exhibit 99.1 Combined Balance Sheets and Statements of Income, including explanatory notes, including BB&T and UCB for the periods indicated. 1 BB&T CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (INCLUDES THE ACCOUNTS OF UNITED CAROLINA BANCSHARES CORPORATION) JULY 31, 1997 (UNAUDITED) (DOLLARS IN THOUSANDS) ASSETS Cash and due from banks...................................................................................... $ 716,120 Interest-bearing deposits with banks......................................................................... 20,920 Federal funds sold and securities purchased under resale agreements or similiar arrangements................. 21,960 Securities available for sale................................................................................ 6,379,115 Securities held to maturity.................................................................................. 111,745 Loans held for sale.......................................................................................... 245,621 Loans and leases, net of unearned income..................................................................... 18,915,325 Allowance for loan and lease losses....................................................................... (253,219) Loans and leases, net................................................................................... 18,662,106 Premises and equipment, net.................................................................................. 369,426 Other assets................................................................................................. 795,610 Total assets............................................................................................ $27,322,623 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand deposits....................................................................... $ 2,621,462 Savings and interest checking............................................................................. 1,970,281 Money rate savings........................................................................................ 4,603,897 Other time deposits....................................................................................... 10,299,130 Total deposits.......................................................................................... 19,494,770 Short-term borrowed funds.................................................................................... 2,687,099 Long-term debt............................................................................................... 2,678,561 Accounts payable and other liabilities....................................................................... 356,588 Total liabilities....................................................................................... 25,217,018 Shareholders' equity: Preferred stock........................................................................................... -- Common stock.............................................................................................. 676,646 Additional paid-in capital................................................................................ 69,976 Retained earnings......................................................................................... 1,322,463 Loan to employee stock ownership plan and unvested restricted stock....................................... (1,813) Net unrealized appreciation on securities available for sale, net of income taxes......................... 38,333 Total shareholders' equity.............................................................................. 2,105,605 Total liabilities and shareholders' equity.............................................................. $27,322,623
The accompanying notes are an integral part of these consolidated financial statements. 2 BB&T CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF INCOME (INCLUDES THE OPERATING RESULTS OF UNITED CAROLINA BANCSHARES CORPORATION) FOR THE MONTH ENDED JULY 31, 1997 (UNAUDITED) (DOLLARS IN THOUSANDS) Interest Income Interest and fees on loans and leases........................................................................ $ 146,519 Interest and dividends on securities......................................................................... 34,979 Interest on temporary investments............................................................................ 242 Total interest income..................................................................................... 181,740 Interest Expense Interest on deposits......................................................................................... 63,501 Interest on short-term borrowings............................................................................ 12,189 Interest on long-term debt................................................................................... 13,207 Total interest expense.................................................................................... 88,897 Net interest income............................................................................................ 92,843 Provision for loan and lease losses.......................................................................... 8,001 Noninterest Income Service charges on deposits.................................................................................. 13,000 Mortgage banking activities.................................................................................. 4,359 Trust revenue................................................................................................ 2,840 Agency insurance commissions................................................................................. 3,500 Other insurance commissions.................................................................................. 943 Other nondeposit fees and commissions........................................................................ 8,911 Securities gains, net........................................................................................ 82 Other income (Note B)........................................................................................ 2,333 Total noninterest income.................................................................................. 35,968 Noninterest Expense Personnel expense (Note B)................................................................................... 52,521 Occupancy and equipment expense (Note B)..................................................................... 25,544 Federal deposit insurance expense............................................................................ 425 Foreclosed property expense.................................................................................. 282 Amortization expense -- intangible assets.................................................................... 1,922 Other noninterest expense (Note B)........................................................................... 75,467 Total noninterest expense................................................................................. 156,161 Loss before income tax benefit (Note B)...................................................................... (35,351) Income tax benefit (Note B).................................................................................. (10,586) Net loss (Note B)......................................................................................... $ (24,765) Per Common Share Net loss (Note B): Primary................................................................................................... $ (0.18) Fully diluted............................................................................................. $ (0.18) Weighted average shares outstanding Primary................................................................................................... 137,762,182 Fully diluted............................................................................................. 137,887,169
The accompanying notes are an integral part of these consolidated financial statements. 3 BB&T CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS RESTATED TO INCLUDE THE ACCOUNTS OF UNITED CAROLINA BANCSHARES CORPORATION (UNAUDITED)
MARCH 31, 1997 JUNE 30, 1997 (DOLLARS IN THOUSANDS) ASSETS Cash and due from banks..................................................................... $ 708,118 $ 848,420 Interest-bearing deposits with banks........................................................ 8,707 11,305 Federal funds sold and securities purchased under resale agreements or similiar arrangements............................................................................. 88,274 21,362 Securities available for sale............................................................... 6,092,200 6,378,196 Securities held to maturity................................................................. 166,599 154,111 Loans held for sale......................................................................... 273,020 258,216 Loans and leases, net of unearned income.................................................... 18,297,896 18,873,776 Allowance for loan and lease losses...................................................... (242,253) (251,222) Loans and leases, net.................................................................. 18,055,643 18,622,554 Premises and equipment, net................................................................. 383,621 390,976 Other assets................................................................................ 737,230 786,941 Total assets........................................................................... $ 26,513,412 $ 27,472,081 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Noninterest-bearing demand deposits...................................................... $ 2,619,058 $ 2,761,412 Savings and interest checking............................................................ 2,061,078 2,021,928 Money rate savings....................................................................... 4,568,388 4,618,570 Other time deposits...................................................................... 10,346,185 10,648,820 Total deposits......................................................................... 19,594,709 20,050,730 Short-term borrowed funds................................................................... 2,197,953 2,324,930 Long-term debt.............................................................................. 2,275,539 2,643,534 Accounts payable and other liabilities...................................................... 340,723 335,140 Total liabilities...................................................................... 24,408,924 25,354,334 Shareholders' equity: Preferred stock.......................................................................... -- -- Common stock............................................................................. 643,240 636,183 Additional paid-in capital............................................................... 174,996 117,058 Retained earnings........................................................................ 1,294,198 1,347,400 Loan to employee stock ownership plan and unvested restricted stock...................... (1,935) (1,819) Net unrealized (depreciation) appreciation on securities available for sale, net of income taxes............................................................................ (6,011) 18,925 Total shareholders' equity............................................................. 2,104,488 2,117,747 Total liabilities and shareholders' equity............................................. $ 26,513,412 $ 27,472,081
The accompanying notes are an integral part of these consolidated financial statements. 4 BB&T CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME RESTATED TO INCLUDE THE OPERATING RESULTS OF UNITED CAROLINA BANCSHARES CORPORATION (UNAUDITED)
FOR THE THREE FOR THE SIX FOR THE THREE MONTHS ENDED MONTHS ENDED MONTHS ENDED JUNE 30, JUNE 30, MARCH 31, 1997 1997 1997 (DOLLARS IN THOUSANDS) Interest Income Interest and fees on loans & leases......................................... $ 403,851 $ 429,306 $ 833,157 Interest and dividends on securities........................................ 96,729 102,516 199,245 Interest on temporary investments........................................... 681 856 1,537 Total interest income.................................................... 501,261 532,678 1,033,939 Interest Expense Interest on deposits........................................................ 179,326 186,643 365,969 Interest on short-term borrowed funds....................................... 27,005 32,532 59,537 Interest on long-term debt.................................................. 30,128 34,912 65,040 Total interest expense................................................... 236,459 254,087 490,546 Net interest income........................................................... 264,802 278,591 543,393 Provision for loan and lease losses......................................... 20,850 25,100 45,950 Noninterest Income Service charges on deposits................................................. 36,456 37,803 74,259 Mortgage banking activities................................................. 11,752 10,919 22,671 Trust revenue............................................................... 6,858 8,504 15,362 Agency insurance commissions................................................ 11,296 9,205 20,501 Other insurance commissions................................................. 3,557 3,347 6,904 Other nondeposit fees and commissions....................................... 22,636 25,326 47,962 Securities gains (losses), net.............................................. 814 (933 ) (119 ) Other income................................................................ 6,743 7,084 13,827 Total noninterest income................................................. 100,112 101,255 201,367 Noninterest Expense Personnel expense........................................................... 102,088 101,054 203,142 Occupancy and equipment expense............................................. 31,284 33,164 64,448 Federal deposit insurance expense........................................... 1,237 1,298 2,535 Foreclosed property expense................................................. 771 677 1,448 Amortization expense -- intangible assets................................... 4,353 5,536 9,889 Other noninterest expense................................................... 57,858 63,597 121,455 Total noninterest expense................................................ 197,591 205,326 402,917 Income before income taxes.................................................. 146,473 149,420 295,893 Provision for income taxes.................................................. 49,851 50,760 100,611 Net income............................................................... $ 96,622 $ 98,660 $ 195,282 Per Common Share Net income: Primary.................................................................. $ 0.69 $ 0.71 $ 1.40 Fully diluted............................................................ $ 0.69 $ 0.71 $ 1.40 Dividends paid on common shares............................................. $ 0.27 $ 0.27 $ 0.54 Weighted average shares outstanding Primary.................................................................. 139,203,042 138,810,123 139,081,467 Fully diluted............................................................ 139,203,042 139,100,159 139,394,135
The accompanying notes are an integral part of these consolidated financial statements. 5 BB&T CORPORATION AND SUBSIDIARIES NOTES TO COMBINED FINANCIAL STATEMENTS JULY 31, 1997 A. BASIS OF PRESENTATION On July 1, 1997, BB&T Corporation ("BB&T") consummated the acquisition United Carolina Bancshares Corporation ("UCB") in a transaction accounted for as a pooling of interests. Pursuant to the risk sharing provisions of Accounting Series Release Nos. 130 and 135 promulgated by the Securities and Exchange Commission, the operating results for the month of July, 1997, for BB&T including the results of UCB and its former subsidiaries are provided herein. In the opinion of management, the accompanying unaudited financial statements contain all adjustments necessary to present fairly the combined and restated results of BB&T and UCB. The results of operations for the month of July were materially adversely affected by the nonrecurring merger-related charges discussed in Note B and are not indicative of future operating results. B. NONRECURRING CHARGES During July, 1997, BB&T recorded nonrecurring merger-related charges and expenses as follows. (DOLLARS IN THOUSANDS). Losses on the disposal of premises and equipment related to the consolidation of branch offices and bank operating functions........................................................................................................ $31,491 Cost associated with severance pay, termination of employment contracts, early retirement packages and other employment-related matters....................................................................................... 16,998 Expenses in connection with early termination of lease contracts and other occupancy-related costs................. 11,773 All other costs, including professional fees, printing, mailing, regulatory filing fees, operational charge-offs, charitable donations, and branch and departmental supplies....................................................... 31,783 Total nonrecurring merger-related charges and expenses............................................................. 92,045 Income tax benefits................................................................................................ 32,388 Nonrecurring merger-related charges and expenses, net of income tax benefits....................................... $59,657
In addition to the charges described above, it is anticipated that additional nonrecurring merger-related costs of approximately $13.9 million will be recorded during the remainder of the third quarter and an additional $6.4 million will be recorded in the fourth quarter of 1997. The third quarter expenses will be partially offset by the gain on divestiture of deposits discussed in Note C. C. DIVESTITURE OF DEPOSITS In conjunction with the merger of BB&T and UCB, BB&T is required to divest certain deposits and branch locations to remain in compliance with anti-trust regulations. It is currently estimated that BB&T will divest approximately $505.2 million of deposits during August, 1997 and record a gain on the divestiture of approximately $48.0 million which will serve to partially offset the nonrecurring merger-related charges and expenses described in Note B. 6 -----END PRIVACY-ENHANCED MESSAGE-----