-----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, NGCU9Sn9njrfrWFn/coUrT9PYfCGnPzzx5o4HTn35rb1yLOnLct6SFyXVKPmiyjC jCDuRWmheL64wkMEeACIBA== 0000950168-99-000146.txt : 19990128 0000950168-99-000146.hdr.sgml : 19990128 ACCESSION NUMBER: 0000950168-99-000146 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990127 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990127 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BB&T CORP 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 SEC ACT: SEC FILE NUMBER: 001-10853 FILM NUMBER: 99513940 BUSINESS ADDRESS: STREET 1: 200 WEST SECOND STREET CITY: WINSTON-SALEM STATE: NC ZIP: 27101 BUSINESS PHONE: 3367332000 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 CORPORATION ================================================================================ UNITED STATES SECURITIES AND EXCAHNGE COMMISSION Washington, D.C. 20549 - -------------------------------------------------------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) Of the Securities Exchange Act of 1934 JANUARY 27, 1999 Date of Report (Date of earliest event recorded) 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 Executive Offices) (Zip Code) (336) 733-2000 (Registrant's Telephone Number, Including Area Code) - -------------------------------------------------------------------------------- This Form 8-K has 38 pages. ================================================================================ Item 5. Other Events The purpose of this Current Report on Form 8-K is to announce that BB&T Corporation ("BB&T") has entered into a definitive agreement to acquire First Citizens Corporation of Newnan, Georgia ("First Citizens") and to file certain analyst presentation materials related to this transaction as Exhibit 99.1. The acquisition of First Citizens (OTC:FSTC) will represent BB&T's first entry into the state of Georgia and move BB&T into the metropolitan Atlanta area, a rapidly growing region with a population of 3.14 million people. Atlanta is the largest metropolitan statistical area in the Southeast and is a major financial center in the Eastern United States. The transaction, approved by the boards of directors of both companies, is expected to be accounted for as a pooling of interests. First Citizens' shareholders will receive 1.0789 BB&T shares for each First Citizens share held. Based on BB&T's January 25, 1999 closing price, First Citizens' shareholders will receive BB&T common stock with an indicated market value of $40.53 per share for each First Citizens' share, which translates to a total indicated market value applicable to the transaction of $125.9 million. First Citizens, with $421 million in assets, operates 13 banking offices and one mortgage loan office in south metro Atlanta. First Citizens operates through its three subsidiaries: First Citizens Bank, Newnan, First Citizens Bank of Fayette County and First Citizens Bank of Clayton County. The corporation also owns mortgage banking and real estate development subsidiaries. Its market area includes Coweta, Fayette, Henry, Clayton and Troup counties. The merger, which is subject to the approval of the First Citizens shareholders and banking regulators, is expected to be completed in the third quarter of 1999. Item 7. Exhibits 99.1 Analyst Presentation Materials SIGNATURE 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. BB&T CORPORATION (Registrant) By: /S/ SHERRY A. KELLETT ------------------------------ Sherry A. Kellett SENIOR EXECUTIVE VICE PRESIDENT AND CONTROLLER (PRINCIPAL ACCOUNTING OFFICER) Date: January 27, 1999. EX-99.1 2 EXHIBIT 99.1 BB&T and First Citizens Corporation Newnan, Georgia Expanding a Great Franchise Analyst Presentation January 27, 1999 Forward-Looking Information BB&T has made forward-looking statements in the accompanying analyst presentation materials that are subject to risks and uncertainties. These statements are based on the beliefs and assumptions of the management of BB&T, and on the information available to management at the time the analyst presentation materials were prepared. In particular, the analyst materials in this report include statements regarding estimated earnings per share of BB&T on a stand alone basis, expected cost savings from the merger, estimated restructuring charges relating to the merger, estimated increases in First Citizens' fee income ratio, the anticipated accretive effect of the merger, and BB&T's anticipated performance in future periods. With respect to estimated cost savings and restructuring charges, BB&T has made assumptions about, among other things, the extent of operational overlap between BB&T and First Citizens, the amount of general and administrative expense consolidation, costs relating to converting First Citizens' bank operations and data processing to BB&T's systems, the size of anticipated reductions in fixed labor costs, the amount of severance expenses, the extent of the charges that may be necessary to align the companies' respective accounting reserve policies, and the cost related to the merger. The realization of cost savings and the amount of restructuring charges are subject to the risk that the foregoing assumptions are inaccurate. Any statements in the accompanying exhibit regarding the anticipated accretive effect of the merger and BB&T's anticipated performance in future periods are subject to risks relating to, among other things, the following possibilities: (1) expected cost savings from this merger or other previously-announced mergers may not be fully realized or realized within the expected time frame; (2) deposit attrition, customer loss or revenue loss following proposed mergers may be greater than expected; (3) competitive pressure among depository and other financial institutions may increase significantly; (4) costs or difficulties related to the integration of the businesses of BB&T and its merger partners, including First Citizens, may be greater than expected; (5) changes in the interest rate environment may reduce margins; (6) general economic or business conditions, either nationally or regionally, may be less favorable than expected, resulting in, among other things, a deterioration in credit quality, or a reduced demand for credit; (7) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which BB&T and First Citizens are engaged; (8) adverse changes may occur in the securities markets; and (9) competitors of BB&T and First Citizens may have greater financial resources and develop products that enable such competitors to compete more successfully than BB&T and First Citizens. BB&T believes these forward-looking statements are reasonable; however, undue reliance should not be placed on such forward-looking statements, which are based on current expectations. Such statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results and shareholder values of BB&T following completion of the merger may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine these results and values are beyond management's ability to control or predict. Outline o Background and transaction terms o Financial data o Rationale and strategic objectives o Investment criteria o Summary BB&T Corporation (BBT) o $36.6 billion bank holding company* o 584 branch locations in NC, SC, VA, MD and the District of Columbia* For Year Ended 12/31/98** -------------- o ROA 1.58% o Cash Basis ROA 1.67% o ROE 20.16% o Cash Basis ROE 23.70% o Efficiency ratio 51.57% *Includes the pending acquisitions of Scott & Stringfellow Financial, Inc. and MainStreet Financial Corporation. **Excludes nonrecurring items First Citizens Corporation (FSTC) o $420.5 million bank and thrift holding company o 13 banking offices in Georgia o 1 mortgage loan production office For 6 Months Ended 9/30/98 ------------- o ROA 1.38% o ROE 13.76% o Efficiency ratio 62.53% Pro Forma Company Profile DECEMBER 31, 1998 o Size: $37.0 billion in assets* $11.7 billion in market capitalization** o Offices NC: 347 SC: 90 VA: 109 DC: 6 MD: 32 GA: 13 ------------ Total: 597 *Includes total assets for Scott & Stringfellow Financial, Inc., MainStreet Financial Corporation, and First Citizens Corporation **Based upon closing share prices on 1/25/99 for BB&T, Scott & Stringfellow Financial Inc., MainStreet Financial Corporation and First Citizens Corporation Terms of the Transaction Terms of the Transaction o Purchase price: $40.53 per share(1) o Aggregate value: $125.9 million(1) (INCLUDING OPTIONS) o Consideration: Fixed exchange ratio of 1.0789 BB&T shares for each First Citizens share o Structure: Tax-free exchange of stock equal to 100% of purchase price o Accounting treatment: Transaction will be accounted for as a pooling-of-interests o Lock-up provision: Stock option agreement (1) Based on January 25, 1999 BB&T closing stock price of $37.56. Pricing o Purchase price $40.53 o Premium / market 35.09% o Price / 9-30-98 stated book 2.91x o Price / LTM EPS 22.9x o BB&T shares issued 3.35 million* *BB&T shares issued based on FSTC shares outstanding adjusted for stock options. Acquisition Comparables* Bank and Thrift Acquisitions Announced since 7/01/98 with DEAL VALUES BETWEEN $75 MILLION AND $150 MILLION - -------------------------------------------------------------------------------------------------------------------------------- Bank/ Total Date Deal Deal Buyer Seller Thrift Assets Announced Value Pr/Bk - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- ($000) ($M) (%) Valley Nat'l Bancorp Ramapo Finl Corp. Bank 327,779 12/18/98 107.5 299.15 First Fin'l Bancorp Sand Ridge Finl Corp Bank 503,894 12/17/98 140.7 330.61 Dime Bancorp Lakeview Financial Thrift 593,856 12/16/98 118.7 195.49 BT Financial Corp First Philson Finl Bank 213,742 12/10/98 80.6 318.81 M&T Bank Corp. FNB Rochester Corp. Bank 567,896 12/09/98 128.8 316.15 Temple-Inland Inc. HF Bancorp Inc. Thrift 1,059,600 11/16/98 122.7 140.90 Centura Banks Inc. First Coastal Bkshs Bank 603,753 10/28/98 124.9 262.11 Western Bancorp PNB Financial Group Bank 267,408 10/06/98 95.7 292.55 Fifth Third Bancorp Enterprise Fedl Bncp Bank 406,893 09/25/98 104.0 283.92 United National Raritan Bancorp Inc. Bank 434,606 09/22/98 97.7 284.98 Commerce Bancorp Prestige Finl Corp. Bank 310,399 09/17/98 75.2 325.65 FBOP Corporation Calumet Bancorp Inc. Bank 491,961 09/09/98 111.6 127.91 F&M Bancorp Monocacy Bancshares Bank 294,425 09/04/98 82.7 327.34 Union Planters Corp. First & Farmrs Bcshs Bank 327,354 08/26/98 76.0 285.70 MAF Bancorp Inc. Westco Bancorp Inc. Thrift 320,295 08/17/98 82.6 152.94 Commercial Federal Midland First Finl Thrift 390,818 08/14/98 83.0 319.23 Hibernia Corporation First Guaranty Bank Bank 234,400 07/30/98 79.5 485.71 Western Bancorp Peninsula Bank - SD Bank 413,019 07/24/98 113.8 433.28 National Penn Bcshs Elverson Natl Bank Bank 286,735 07/22/98 102.3 384.62 First Source Bncp Pulse Bancorp Inc. Thrift 540,008 07/09/98 106.4 221.15 Maximum 1,059,600 140.7 485.7 Minimum 213,742 75.2 127.9 Average 429,442 101.7 289.4 Median 398,856 103.2 295.9 - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- BB&T Corp MainStreet Financial Bank 2,014,648 08/26/98 554.3 325.2 - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------------------------------------------------------- BB&T Corp First Citizens ** 385,582 125.9 291.1 Above/(Below) Comparables 1.7 - --------------------------------------------------------------------------------------------------------------------------------
- ------------------------- Deal Pr/ Deal Pr/ Tg Bk 4-Qtr EPS - ------------------------- - ------------------------- (%) (x) 303.57 30.06 330.61 24.57 291.48 9.95 318.81 29.46 316.15 25.17 163.28 NA 262.11 28.33 292.55 13.87 402.21 34.31 288.42 24.36 325.65 24.62 127.91 11.69 371.60 32.32 311.16 16.78 152.94 17.54 NA NA 485.71 23.48 434.97 29.75 384.62 33.32 221.15 18.18 485.7 34.3 127.9 10.0 304.5 23.8 307.4 24.5 - ------------------------- - ------------------------- - ------------------------- - ------------------------- 346.1 27.4 - ------------------------- - ------------------------- - ------------------------- - ------------------------- 352.3 22.9 47.9 (0.9) - -------------------------
*Source for Acquisition Comparables: SNL Securities. **Based on 9/30/98 data Financial Data Financial Summary FOR YEAR-TO-DATE ENDED: 12/31/98 9/30/98 BB&T(1) FSTC(2) -------- ------- ROA 1.58% 1.38% ROE 20.16 13.76 Net interest margin (FTE) 4.34 4.82 Efficiency ratio 51.57 62.53 Net charge-offs/avg. loans .28 .07 Allowance/nonperf. loans 367.75 85.81 Nonperf. assets/total assets .33 1.18 (1)Excludes nonrecurring items (2)FSTC figures represent 6 month year-to-date financials as their fiscal year ends on March 31. Capital Strength BB&T FSTC (12/31/98) (9/30/98) ---------- --------- Shareholders' equity/total assets 8.0% 10.1% Leverage capital ratio 6.8% 8.5% Total risk-based capital ratio 14.7% 12.6% Rationale for Acquisition o BB&T has an announced strategy to pursue in-market (Carolinas/Virginia/Maryland/Metro DC) and contiguous state (Georgia/West Virginia/Tennessee) acquisitions of high quality banks and thrifts in the $250 million to $10 billion range. The acquisition of First Citizens is consistent with this strategy. o This acquisition is very consistent with past acquisitions which we have successfully executed, i.e. it fits our model. o BB&T and First Citizens share similar cultures. o First Citizens provides BB&T with entry into the high growth Metro Atlanta region Strategic Objectives o The key strategic objectives in this acquisition are: - Entry into the Metro Atlanta region - Grow fee income using BB&T's wider array of fee-based services - Improve efficiency o Cost savings equal to 20% of FSTC's noninterest expenses, fully realized in the year 2000 - Develop additional commercial relationships using BB&T's product offerings Franchise Enhancement o Market extension merger into the Atlanta, Georgia MSA o Establishment of a community bank in Georgia o Provides a presence in an additional major financial center in the south o Gives BB&T a base for future market expansion opportunities in Georgia o Extends BB&T's penetration of the Interstate 85 corridor Grow Fee Income BB&T FSTC (12/31/98) (9/30/98)(1) ---------- ------------ Fee income ratio 28.4% 16.5% Goal to raise FSTC's fee income ratio by leveraging BB&T's sales management system and broader product selection (1)FSTC figures represent 6 month year-to-date financials as their fiscal year ends on March 31. Efficiency Improvement Targeted Annual Cost Savings ---------------------------- $2.8 million or approximately 20% of FSTC's expense base After-Tax One-Time Charges One-time merger-related charges ------------------------------- $2.8 million Branch Locations [Map with location points goes here.] (delta) BB&T Branches (diamond) MainStreet Financial Branches (BB&T Pending Acquisition) (d delta) First Citizens Corp. Branches Market Characteristics METRO ATLANTA [Graphic of Map goes here.] o 1998 unemployment rate - 3.3% (26% below national rate) o With 3.14 million residents, the Metro Atlanta market is the Southeast's largest MSA o 14 Fortune 500 companies are headquartered in Metro Atlanta o Metro Atlanta was rated as the 2nd best City for Business by FORTUNE MAGAZINE o With a projected 267,600 new jobs created between 1995-2000, Metro Atlanta was rated as the Top Metropolitan Area for Job Creation by DRI/MCGRAW HILL o Total employment is projected to expand 29.9% (1993-2005) o Per Capita Income of $25,583; 10.2% above the national average BB&T Investment Criteria o Cash Basis EPS (accretive by year 2) o Internal rate of return (15% or better) o Return on equity and Cash Basis ROE (accretive by year 3) o Return on assets and Cash Basis ROA (accretive by year 3) o Book value per share (accretive by year 5) o Must not cause combined leverage capital ratio to go below 7% Criteria are listed in order of importance. There are sometimes tradeoffs among criteria. Assumptions o BB&T 1999 EPS is based on a First Call estimate of $1.93 and subsequent years are based on 9% income statement and balance sheet growth. o $2.8 million in cost savings (20% of FSTC's expense base). Cost savings will be recognized over 2 years with 25% of total cost savings achieved in 1999 and the remaining 75% in 2000. o Fee income improvement - raise FSTC's fee income ratio from 16.5% for September YTD 1998 to 25% for full-year 2003 by leveraging BB&T's sales management system and expanded product offerings. o FSTC's net interest margin (non-FTE) is maintained annually at 4.58%. o For FSTC, we have assumed income statement and balance sheet growth of 12% annually from 2000 through 2003 and 9% thereafter except for the enhancements cited above. Impact on Earnings Per Share Accretion Accretion (Dilution) Pro Forma (Dilution) Pro Forma Pro Forma Cash Basis Pro Forma EPS Shares EPS Shares --------- ---------- ----------- ---------- 1999* $1.93 $(0.00) $2.05 $(0.00) 2000 2.11 0.00 2.22 0.00 2001 2.30 0.01 2.41 0.01 2002 2.51 0.01 2.62 0.01 2003 2.73 0.01 2.84 0.01 2004 2.98 0.01 3.08 0.01 2005 3.25 0.01 3.34 0.01 2006 3.54 0.02 3.64 0.02 2007 3.86 0.02 3.95 0.02 2008 4.21 0.02 4.30 0.02 2009 4.59 0.02 4.68 0.02 Internal rate of return 15.52% ------ *Excludes nonrecurring items Impact on ROE* Pro Forma Pro Forma Cash Basis ROE(%) Change ROE(%) Change ---------- ------ ----------- ------ 1999** 19.96 (0.09) 24.57 (0.11) 2000 19.31 (0.03) 22.97 (0.03) 2001 18.77 (0.01) 21.69 (0.01) 2002 18.28 (0.01) 20.62 (0.00) 2003 17.86 (0.00) 19.73 0.00 2004 17.48 0.01 18.92 0.01 *The decrease in ROE results from the build up in equity relative to assets. **Excludes nonrecurring items Impact on ROA Pro Forma Pro Forma Cash Basis ROA(%) Change ROA (%) Change ---------- ------ ---------- ------ 1999* 1.53 (.00) 1.64 (.00) 2000 1.53 .00 1.63 .00 2001 1.53 .00 1.62 .00 2002 1.54 .00 1.62 .00 2003 1.54 .00 1.61 .00 2004 1.54 .00 1.59 .00 *Excludes nonrecurring items Impact on Book Value/Leverage Ratio Pro Forma Book Value Per Share Pro Forma -------------------- Accretion Leverage Accretion Stated (Dilution) Ratio (Dilution) ------ --------- --------- ---------- 1999 $ 10.26 $ 0.03 7.18% .02 2000 11.55 0.04 7.61 .02 2001 12.95 0.04 7.99 .02 2002 14.47 0.05 8.33 .02 2003 16.14 0.06 8.64 .02 2004 17.98 0.07 8.93 .02 2005 20.00 0.09 9.19 .02 2006 22.24 0.10 9.44 .02 2007 24.71 0.12 9.69 .02 2008 27.45 0.14 9.92 .03 2009 30.49 0.16 10.16 .03 Summary o The acquisition of First Citizens Corporation is a strong strategic fit: - It helps accomplish our goal of expanding into the Georgia market; more specifically, into the Atlanta MSA - It fits culturally and geographically - This is the type of merger we have consistently successfully executed o Overall Investment Criteria are met: - EPS and Cash Basis EPS accretive in year 2000 - IRR 15.52% - ROA and Cash Basis ROA positive in year 2000 - Book value accretive in year 1999 - Combined leverage ratio remains above 7% - Accelerated dividend growth potential in year 2000 Appendix o Historical Financial Data o Glossary First Citizens Corp - Georgia Financial Summary Six Months March 31, March 31, Ended 1997 1998 Sep. 30, 1998 --------- --------- ------------- Earnings Summary (in thousands) Interest Income (FTE) Interest on loans & leases $ 15,985 $ 24,923 $ 13,687 Interest & dividends on securities 1,177 2,123 1,036 Interest on temporary investments 369 859 1,085 --------- --------- ----------- Total interest income (FTE) 17,532 27,906 15,809 --------- --------- ----------- Interest Expense Interest expense on deposit accounts 7,443 11,899 7,168 Interest on short-term borrowings 212 374 -- Interest on long-term debt 480 703 309 --------- --------- ----------- Total interest expense 8,135 12,975 7,476 --------- --------- ----------- Net interest income (FTE) 9,397 14,931 8,332 Less taxable equivalent adjustment -- -- -- --------- --------- ----------- Net interest income 9,397 14,931 8,332 Provision for loan losses 185 235 140 --------- --------- ----------- Net interest income after provision 9,212 14,696 8,192 --------- --------- ----------- Noninterest Income Service charges on deposit accounts 969 1,494 805 Non-deposit fees and commissions 454 291 133 G/(L) on sale of real estate & securities 1,069 3,377 223 Other operating income 1,144 1,664 707 --------- --------- ----------- Total noninterest income 3,636 6,826 1,868 --------- --------- ----------- Noninterest Expense Personnel 3,273 5,316 3,100 Occupancy & equipment 1,119 1,508 816 FDIC premiums 228 111 64 Other operating expenses 2,238 3,665 2,259 --------- --------- ----------- Total noninterest expense 6,857 10,599 6,239 --------- --------- ----------- Net income before taxes 5,991 10,922 3,821 Income taxes 2,257 3,707 1,213 --------- --------- ----------- Net income before nonrecurring charges 3,734 7,215 2,609 --------- --------- ----------- Nonrecurring charges (1,082) -- -- --------- --------- ----------- Net income $ 2,652 $ 7,215 $ 2,609 ========= ========= =========== Basic EPS $ 1.15 $ 2.62 $ 0.93 Diluted EPS 1.05 2.42 0.88 Diluted EPS before nonrecurring charges 1.48 2.42 0.88 Book value $ 10.92 $ 13.15 $ 13.92 EOP shares 2,728 2,795 2,806 Basic shares 2,310 2,754 2,797 Diluted shares 2,521 2,987 2,973
30 First Citizens Corp - Georgia Financial Summary Six Months March 31, March 31, Ended 1997 1998 Sep. 30 1998 --------- --------- ------------ Average Balance Sheet (in thousands) Assets Loans $ 173,544 $ 262,504 $ 270,065 Securities 19,075 35,523 35,386 Other earning assets 6,947 15,523 40,559 --------- --------- ----------- Total interest-earning assets 199,566 313,550 346,010 --------- --------- ----------- Goodwill & other intangibles 3,056 7,229 6,901 Other assets 13,709 22,283 25,758 --------- --------- ----------- Total assets $ 216,331 $ 343,062 $ 378,669 ========= ========= =========== Net interest margin 4.71% 4.76% 4.82% Securities as a percent of earning assets 10% 11% 10% Liabilities & Shareholders' Equity Interest-bearing deposits: Money Market & NOW $ 41,221 $ 59,706 $ 64,428 Savings 13,462 19,498 21,041 CD's and other time 103,765 165,760 196,747 --------- --------- ----------- Total interest-bearing deposits 158,448 244,964 282,215 Short-term borrowed funds 6,695 3,800 -- Long-term debt 5,308 11,873 7,455 --------- --------- ----------- Total interest-bearing liabilities 170,451 260,637 289,670 Demand deposits 20,420 41,197 46,838 Other liabilities 2,995 7,952 4,251 --------- --------- ----------- Total liabilities 193,866 309,786 340,759 --------- --------- ----------- Preferred equity -- -- -- Common equity 22,465 33,276 37,910 --------- --------- ----------- Total equity 22,465 33,276 37,910 --------- --------- ----------- --------- --------- ----------- Total liabilities & shareholders' equity $ 216,331 $ 343,062 $ 378,669 ========= ========= =========== Other int-liab. as a percent of total assets 6% 5% 2%
31 First Citizens Corp - Georgia Financial Summary Six Months March 31, March 31, Ended 1997 1998 Sep. 30, 1998 ---------- --------- ------------- Ratio Analysis ROA 1.73% 2.10% 1.38% ROCE 16.62% 21.68% 13.76% Efficiency ratio 57.3% 57.7% 62.5% Adj. noninterest income/Adj. revenues 21.5% 18.8% 16.5% Average equity/Average assets 10.4% 9.7% 10.0% Credit Quality (in thousands) Beginning $ 1,371 $ 3,739 $ 3,852 --------- --------- --------- Provision 185 235 140 Acquired allowance 2,325 -- -- Net charge-offs (142) (122) (98) --------- --------- --------- Ending allowance $ 3,739 $ 3,852 $ 3,894 --------- --------- --------- Allowance 1.52% 1.46% 1.43% Charge-off rate 0.08% 0.05% 0.07% Period end loans & leases $ 245,409 $ 263,784 $ 271,671 Period end common equity $ 29,803 $ 36,760 $ 39,064
32 Glossary Return on Assets - recurring earnings for the period as a percentage of average assets for the period. Return on Equity - recurring earnings for the period as a percentage of average common equity for the period. Cash Basis Performance Results and Ratios - These calculations exclude the effect on net income of amortization expense applicable to certain intangible assets. The ratios also exclude the effect of the unamortized balances of these intangibles from assets and equity. Efficiency Ratio - calculated as recurring noninterest expense as a percentage of the sum of recurring net interest income on a fully taxable equivalent basis and recurring noninterest income. Leverage Capital Ratio - Common shareholders' equity excluding unrealized securities gains and losses and certain intangible assets as a percentage of average assets for the most recent quarter less certain intangible assets. Total Risk-Based Capital Ratio - The sum of shareholders' equity, a qualifying portion of subordinated debt and a qualifying portion of the allowance for loan and lease losses as a percentage of risk-weighted assets. Net Charge-Off Ratio - Loan losses net of recoveries as a percentage of average loans and leases. Internal Rate of Return - The interest rate that equates the present value of future returns to the investment outlay. An investment is considered acceptable if its IRR exceeds the required return. The investment is defined as the market value of the stock and/or other consideration to be received by the selling shareholders. Recurring Results or Ratios - earnings excluding charges and expenses principally related to completing mergers and acquisitions. Certain of the ratios discussed above may be annualized if the applicable periods are less than a full year. -----END PRIVACY-ENHANCED MESSAGE-----