Amendment No. 1
FORM 8-K/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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 1, 1997
Lexington B & L Financial Corp.
------------------------------------
(Exact name of registrant as specified in its charter)
Missouri 0-28120 43-1739555
- --------------------------- ----------- -------------------
State or other jurisdiction Commission (I.R.S. Employer
of incorporation File Number Identification No.)
919 Franklin Avenue, Lexington, Missouri 64067
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number (including area code) (816) 259-2247
Not Applicable
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(Former name or former address, if changed since last report)
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Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
On October 1, 1997, Lexington B & L Financial Corp. ("Lexington")
consummated its acquisition of Lafayette Bancshares, Inc. ("Lafayette"). The
unaudited pro forma consolidated financial information set forth herein has
been prepared for purposes of complying with Regulation S-X of the Securities
and Exchange Commission.
(a) Financial Statements of Business Acquired
Lafayette's unaudited Condensed Balance Sheet as of September 30, 1997,
Condensed Statements of Income for the nine months ended September 30, 1997 and
1996 and Condensed Statements of Cash Flows for the nine months ended September
30, 1997 and 1996 are attached hereto as Appendix A.
(b) Pro Forma Financial Information
Unaudited pro forma condensed combined financial statements reflecting
consummation of the acquisition are attached hereto as Appendix B. The
unaudited pro forma condensed combined statement of financial condition as of
September 30, 1997 combines the historical consolidated statements of financial
condition of the Lexington and Lafayette as if the merger had occurred on such
date after giving effect to certain pro forma adjustments described in the
accompanying notes. The unaudited pro forma condensed combined statement of
operations is presented as if the merger had been consummated at the beginning
of the period presented.
The unaudited pro forma condensed combined financial statements and
notes thereto reflect the application of the purchase method of accounting.
The unaudited pro forma condensed combined financial statements included herein
are not necessarily indicative of the future results of operations or the
future financial position of the combined entities or the results of operations
and financial position of the combined entities that would have actually
occurred had the transactions been in effect as of the dates or for the periods
presented.
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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.
LEXINGTON B & L FINANCIAL CORP.
DATE: December 12, 1997 By: /s/ Erwin Oetting, Jr
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Erwin Oetting, Jr.
President
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Appendix A
Item 7(a). Financial Statements of Lafayette Bancshares, Inc.
Condensed Statement of Financial Condition
September 30, 1997
(unaudited)
(In thousands)
ASSETS
Cash $ 1,542
Investments 15,617
Loans 16,152
Goodwill 264
Other 1,062
-------
TOTAL ASSETS $34,637
=======
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits $31,346
Federal Home Loan Bank Advances 340
Notes Payable 588
Other 356
-------
TOTAL LIABILITIES 32,630
Stockholders' Equity 2,007
-------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $34,637
=======
A-1
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Condensed Statement of Operations
Nine Months Ended September 30, 1996 and 1997
(unaudited)
Nine Months Ended September 30,
-------------------------------------
1997 1996
-------------- --------------
(In thousands, except per share data)
Total interest income . . . . . . . . $1,813 $1,750
Total interest expense. . . . . . . . 991 941
------ ------
Net interest income . . . . . . . . . 822 809
Provision for loan losses . . . . . . 198 25
------ ------
Net interest income after
provision for loan losses . . . . . 624 784
Other income. . . . . . . . . . . . . 194 189
Other expense . . . . . . . . . . . . 696 663
------ ------
Income before Federal
income tax . . . . . . . . . . . . . 122 310
Federal income tax. . . . . . . . . . 61 114
------ ------
Net income. . . . . . . . . . . . . . $ 61 $ 196
====== ======
Net income per share, primary . . . . $ 0.05 $ 0.17
====== ======
Weighted average number of shares:
Primary. . . . . . . . . . . . . . . 1,130 1,130
===== =====
A-2
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Condensed Statement of Cash Flows
Nine Months Ended September 30, 1997 and 1996
(unaudited)
Nine Months Ended September 30,
-------------------------------
1997 1996
----------- ----------
(In thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income. . . . . . . . . . . . . . . . . . $ 61 $ 196
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization . . . . . . . 66 67
Amortization of premiums and discounts. . . 27 3
Provision for loan losses . . . . . . . . . 198 25
Adjustment for permanent decline in
market value of securities held in
available-for-sale. . . . . . . . . . . . 11 --
Cash surrender change on life insurance . . 13 --
Changes to assets and liabilities increasing
(decreasing) cash flows:
Accrued interest receivable . . . . . . . (8) 35
Accrued interest payable. . . . . . . . . (2) 15
Other assets. . . . . . . . . . . . . . . (26) 35
Other liabilities . . . . . . . . . . . . (56) 15
------ ------
NET CASH PROVIDED BY OPERATING ACTIVITIES . . 284 391
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturities and sales of
investment securities . . . . . . . . . . 3,208 5,325
Purchase of investment securities . . . . . (3,352) (4,959)
Payment of letter of credit fees. . . . . . -- (8)
Net increases in loans. . . . . . . . . . . (985) (1,098)
Net (increase) decrease in federal
funds sold . . . . . . . . . . . . . . . (1,150) 375
Purchase of premises and equipment. . . . . (48) (75)
Purchase of life insurance contracts. . . . (125) --
------ ------
NET CASH USED IN INVESTING ACTIVITIES . . . . (2,452) (440)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposits. . . . . . . . . . 1,835 495
Advances from FHLB. . . . . . . . . . . . . 300 --
Repayment of FHLB advances. . . . . . . . . (300) --
Repayment of notes payable. . . . . . . . . (95) (95)
Cash dividends. . . . . . . . . . . . . . . (45) (34)
Proceeds from short term borrowings . . . . 125 --
------ ------
NET CASH PROVIDED BY FINANCING ACTIVITIES . . 1,820 366
------ ------
INCREASE (DECREASE) IN CASH. . . (348) 317
Cash at beginning of period . . . . . . . . . 1,890 1,444
------ ------
CASH AT END OF PERIOD . . . . $1,542 $1,761
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Appendix B
Item 7(b). Pro Forma Financial Information
Pro Forma Condensed Combined Statement of Financial Condition
September 30, 1997
(unaudited)
Acquisition
Entries(1)
------------------ Pro Forma
Lexington Lafayette Debit Credit Combined
--------- --------- ----- ------ ---------
(In Thousands)
Assets
Cash. . . . . . . . . $ 6,818 $ 1,542 $ -- $1,235 $ 7,125
Investments . . . . . 4,745 15,617 -- -- 20,362
Loans . . . . . . . . 45,873 16,152 -- -- 62,025
Goodwill. . . . . . . -- 264 807 -- 1,071
Other . . . . . . . . 1,347 1,062 -- 181 2,228
------- ------- ------ ------ -------
Total assets. . . . $58,783 $34,637 $ 807 $1,416 $92,811
======= ======= ====== ====== =======
Liabilities and Stockholders' Equity
Liabilities
Deposits. . . . . . . $42,694 $31,346 $ -- $ -- $74,040
Advances from Federal Home
Loan Bank. . . . . . -- 340 -- -- 340
Notes payable . . . . -- 588 -- -- 588
Other . . . . . . . . 437 356 149 -- 644
------- ------- ------ ------ -------
Total liabilities . 43,131 32,630 149 -- 75,612
Stockholders' Equity. 15,652 2,007 2,007 1,547 17,199
------- ------- ------ ------ -------
Total liabilities
and stockholders'
equity. . . . . . . $58,783 $34,637 $2,156 $1,547 $92,811
======= ======= ====== ====== =======
See accompanying Notes to Pro Forma Condensed Combined Financial Statements.
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Pro Forma Condensed Combined Statement of Operations
Year Ended September 30, 1997
(unaudited)
Pro Forma
Adjustments(2) Pro Forma
--------------
Lexington Lafayette Debit Credit Combined
--------- --------- ----- ------ ---------
(In Thousands, Except Per Share Data)
Interest Income
Interest Income. . . . $4,597 $2,410 68 -- 6,939
Interest Expense . . . 2,298 1,251 -- -- 3,549
------ ------ ----- ---- ------
Net Interest Income . 2,299 1,159 68 -- 3,390
Provision for Loan Losses . 29 206 -- -- 235
------ ------ ----- ---- ------
Net interest income
after provision for
loan losses . . . . . . . 2,270 953 68 -- 3,155
Non-interest Income . . . . 84 244 -- -- 328
Non-interest Expense. . . . 1,218 870 70 -- 2,158
------ ------ ----- ---- ------
Income before income
taxes . . . . . . . . . . 1,136 327 138 -- 1,325
Income taxes. . . . . . . . 390 113 -- 25 478
------ ------ ------ ---- ------
Net income. . . . . . . . $ 746 $ 214 $ 138 $ 25 $ 847
====== ====== ====== ==== ======
Net Income Per Share. . . . $ 0.70 $ 0.19 $ 0.73
====== ====== ======
Average Shares Outstanding. 1,065 1,130 1,161
===== ===== =====
See accompanying Notes to Pro Forma Condensed Combined Financial Statement
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Notes to Pro Forma Condensed Combined Financial Statements
(1) Acquisition entry to pro forma condensed combined statement of
financial condition includes the following:
A. The purchase of minority interest of Lafayette county Bank for
$196,000 cash resulting in $47,000 goodwill.
B. Lexington's purchase of Lafayette reflects the purchase method
of accounting and includes $1,039,000 cash, $1,466,000 cost of
treasury stock (fair market value of $1,547,000 on October 1,
1997, date of closing) and assumption of liabilities, net of
assets acquired consisting of notes payable of $588,000, other
liabilities of $12,000 and other assets of $12,000, resulting
in $1,058,000 of goodwill and$81,000 of additional
paid-in-capital. The purchase price also included $181,000 of
deferred costs Lexington incurred relating to the acquisition.
(2) The pro forma adjustments to combined statement of income include
$68,000 reduction in interest income resulting from cash used in the
acquisition, net of income taxes of $25,000 and amortization of
goodwill on a straight line basis over fifteen years of $70,000. The
goodwill is assumed to not be tax deductible. Lost investment income
was computed at 5.53 percent per annum and a 37 percent assumed income
tax rate.
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