EX-99.2 3 l30306aexv99w2.htm EX-99.2 Ex-99.2
 

Exhibit 99.2
PRO FORMA FINANCIAL INFORMATION
First Citizens Banc Corp and Futura Banc Corporation
Unaudited Pro Forma Condensed Combined Consolidated Financial Statements
     The following Unaudited Pro Forma Condensed Combined Consolidated Statement of Financial Condition combines the historical Consolidated Statement of Financial Condition of First Citizens and subsidiaries and the historical Consolidated Statement of Financial Condition of Futura and subsidiaries giving effect to the consummation of the merger on September 30, 2007, using the purchase method of accounting and giving effect to the related pro forma adjustments described in the accompanying Notes to the Unaudited Pro Forma Condensed Combined Consolidated Financial Statements.
     The following Unaudited Pro Forma Condensed Combined Consolidated Balance Sheet for the nine months ended September 30, 2007 and Statements of Income for the nine months ended September 30, 2007 and the year ended December 31, 2006 combine the historical Consolidated Statements of Income of First Citizens and subsidiaries and Futura giving effect to the merger as if the merger had become effective at the beginning of the period presented, using the purchase method of accounting and giving effect to the related pro forma adjustments described in the accompanying Notes to the Unaudited Pro Forma Condensed Combined Consolidated Financial Data.
     Although pro forma financial information is not a measure of performance calculated in accordance with accounting principles generally accepted in the United States of America, First Citizens and Futura believe that pro forma financial information is important because it gives effect to the merger as if the merger had become effective at the beginning of the period presented. The manner in which First Citizens and Futura calculate pro forma financial information may differ from similarly titled measures reported by other companies.
     The unaudited pro forma condensed combined consolidated financial statements included herein are presented for informational purposes only. This information includes various estimates and may not necessarily be indicative of the financial position or results of operations that would have occurred if the merger had been consummated on the date or at the beginning of the period indicated or which may be obtained in the future. The unaudited pro forma condensed combined consolidated financial statements and accompanying notes should be read in conjunction with and are qualified in their entirety by reference to the historical financial statements and related notes thereto of First Citizens and subsidiaries and Futura and subsidiaries appearing elsewhere herein.
     These pro forma financial statements do not include the effects of any potential cost savings that management believes will result from operating the Futura banking business as branches and combining certain operations functions. It also does not necessarily reflect what the historical results of the combined company would have been had the companies been combined during these periods.

 

 

First Citizens Banc Corp and Futura Banc Corporation
Pro Forma Condensed Combined Consolidated Balance Sheet
(Unaudited)
At September 30, 2007 (In thousands except per share data)
                                         
                    Pro Forma              
                    Adjustments              
    First Citizens     Futura     Increase /     Footnote     Pro Forma  
    Historical     Historical     (Decrease)     Reference     Combined  
Assets
                                        
Cash and due from banks
   $ 14,682     $ 6,357     $ 677       $ 21,716  
Federal funds sold
     —       10,362       (10,362 )     (1)     —  
Securities available for sale
     104,604       30,868       —       (9)     135,472  
Other Investments
     11,147       3,412       —               14,559  
Loans, net
     582,816       211,968       (6,315 )     (2)(3)     788,469  
Premises and equipment
     11,581       9,477       1,323       (4)     22,381  
Goodwill
     26,093       165       39,502       (5)     65,760  
Other identified intangible assets
     2,809       —       6,185       (6)     8,994  
Bank owned life insurance
     10,748       —       —                  
Accrued interest and other assets
     12,083       3,044       —               15,127  
 
                                
Total Assets
   $ 776,563     $ 275,653     $ 31,010             $ 1,083,226  
 
                                
 
                                        
Liabilities
                                        
Deposits
   $ 551,650     $ 229,263     $ 881       (7)   $ 781,794  
Securities sold under repurchase agreements
     23,025       —                 23,025  
FHLB borrowings
     86,095       14,542       (10,362 )     (1)     90,275  
Other borrowings
     28,001       4,648       17,427       (8)(9)     50,076  
Accrued expenses and other liabilities
     10,904       2,221       2,108       (10)     15,233  
 
                                
Total Liabilities
     699,675       250,674       10,054               960,403  
 
                                        
Shareholders’ Equity
                                        
Common Stock
     68,429       20,044       25,891       (11)     114,364  
Retained earnings
     27,258       5,125       (5,125 )     (11)     27,258  
Treasury stock
     (16,842 )     (271 )     271       (11)     (16,842 )
Accumulated other comprehensive income
     (1,957 )     81       (81 )     (11)     (1,957 )
 
                                
Total Shareholders’ Equity
     76,888       24,979       20,956               122,823  
 
                                
 
                                        
Total Liabilities and Shareholders’ Equity
   $ 776,563     $ 275,653     $ 31,010             $ 1,083,226  
 
                                

 

 

First Citizens Banc Corp and Futura Banc Corporation
Pro Forma Condensed Combined Consolidated Statement of Income
(Unaudited)
For the nine months ended September 30, 2007 (In thousands except per share data)
                                         
                    Pro Forma              
                    Adjustments              
    Historical     Historical     Increase /     Footnote     Pro Forma  
    FCBC     FBC     (Decrease)     Reference     Combined  
Interest income
   $ 36,658     $ 14,151     $ 1       (2)(12)   $ 50,810  
Interest expense
     14,918       6,202       1,557       (7)(8)     22,677  
 
                                
Net interest income
     21,740       7,949       (1,556 )       28,133  
Provision for loan losses
     1,154       618       —               1,772  
 
                                
Net interest income after provision
     20,586       7,331       (1,556 )             26,361  
Non-interest income
     5,448       1,791       —               7,239  
Non-interest expense
     19,413       7,249       564       (4)(6)(9)     27,226  
 
                                
Income (loss) before income taxes
     6,621       1,873       (2,120 )             6,374  
Provision for income taxes (benefit)
     1,924       423       (742 )     (13)     1,605  
 
                                
Net Income (loss)
   $ 4,697     $ 1,450     $ (1,378 )           $ 4,769  
 
                                        
Earnings Per Share:
                                        
Basic
   $ 0.87     $ 0.55                          
Diluted
   $ 0.87     $ 0.55                          
 
                                        
Pro Forma Earnings Per Share
                                        
Basic
                             (14)   $ 0.62  
Diluted
                             (14)   $ 0.62  

 

 

First Citizens Banc Corp and Futura Banc Corporation
Pro Forma Condensed Combined Consolidated Statement of Income
(Unaudited)
For the year ended December 31, 2006 (In thousands except per share data)
                                         
                    Pro Forma              
                    Adjustments              
    Historical     Historical     Increase /     Footnote     Pro Forma  
    FCBC     FBC     (Decrease)     Reference     Combined  
Interest income
   $ 45,876     $ 18,132     $ 1       (2)(12)   $ 64,009  
Interest expense
     15,615       6,820       2,076       (7)(8)     24,511  
 
                                
Net interest income
     30,261       11,312       (2,075 )             39,498  
Provision for loan losses
     1,128       —       —               1,128  
 
                                
Net interest income after provision
     29,133       11,312       (2,075 )             38,370  
Non-interest income
     6,670       3,101                       9,771  
Non-interest expense
     26,977       10,253       752       (4)(6)(9)     37,982  
 
                                
Income (loss) before income taxes
     8,826       4,160       (2,827 )             10,159  
Provision for income taxes (benefit)
     2,666       1,260       (989 )     (13)     2,937  
 
                                
Net Income (loss)
   $ 6,160     $ 2,900     $ (1,838 )           $ 7,222  
 
                                        
Earnings Per Share:
                                        
Basic
   $ 1.12     $ 1.09                          
Diluted
   $ 1.12     $ 1.07                          
 
                                        
Pro Forma Earnings Per Share
                                        
Basic
                             (15)   $ 0.92  
Diluted
                             (15)   $ 0.92  
Notes:
(1) To reflect the planned use of FBC’s overnight funds sold to reduce FCBC’s overnight funds purchased.
(2) Represents the estimated fair market value adjustment related to the loan portfolio and is assumed to amortize into interest income on a level yield basis over the estimated period to maturity or repricing of the portfolio, which averages 7 1/2 years.
(3) Represents the estimated fair value adjustments related to loans for which FCBC’s plans for resolution and disposition of collateral differ from FBC’s current work-out plans.
(4) Represents the estimated fair market value adjustment related to the office properties and is assumed to amortize on a straight line basis over the estimated life of 39 years.
(5) Represents the estimate of the excess of the total direct acquisition costs over the estimated fair value of the net assets acquired.
(6) Represents the establishment of the estimated core deposit intangible related to the proposed acquisition by Citizens in the amount of $6,185, which is assumed to amortize into non-interest expense on an accelerated basis over 10 years.
(7) Represents the estimated fair market value adjustment related to deposits and is assumed to amortize into interest expense on a level yield basis over the estimated remaining maturity of the deposits which averages 11 months for certificates of deposits and 12 months for IRAs.

 

 

(8) Represents estimated amount FCBC will borrow to pay the cash portion to FBC shareholders. The borrowing is expected to be variable at 3 month LIBOR plus 1.25%.
(9) Represents the estimated fair market value adjustment related to subordinated debentures and is assumed to amortize over the remaining life to the call date (3 years).
(10) Represents accrual of certain estimated acquisition costs of $648 and deferred taxes related to estimated purchase accounting adjustments.
(11) Represents the elimination of FBC equity on a historical basis and the issuance of an estimated shares of First Citizens based on an exchange multiple of 1.1726.
(12) Represents amortization of fair value adjustment related to investment securities on a level yield basis over their estimated remaining lives which average 36 months.
(13) Represents the income tax effect of the estimated purchase accounting adjustments using an effective tax rate of 35%.
(14) Basic and diluted pro forma earnings per share for the nine months ended September 30, 2007 have been computed based on 7,732,917 weighted average shares outstanding.
(15) Basic and diluted pro forma earnings per share for the year ended December 31, 2006 have been computed based on 7,864,308 weighted average shares outstanding.