<PAGE> 1
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
August 18, 1994
---------------
Date of Report (Date of earliest event reported)
UNION PLANTERS CORPORATION
--------------------------------------------------
(Exact name of registrant as specified in charter)
TENNESSEE 0-10160 62-0859007
- - ------------------------ ------------ -------------------
(State of incorporation) (Commission (I.R.S. Employer
File Number) Identification No.)
UNION PLANTERS ADMINISTRATIVE CENTER
7130 GOODLETT FARMS PARKWAY
MEMPHIS, TENNESSEE 38018
----------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (901) 383-6000
Not Applicable
--------------------------------------------------------------
(Former name or former address, if changed since last report).
<PAGE> 2
ITEM 5. OTHER EVENTS
ACQUISITIONS
Item 7 (b) below presents Union Planters Corporation's (the Corporation)
unaudited pro forma financial statements reflecting certain completed and
pending acquisitions as of and for the six months ended June 30, 1994, and for
the three years ended December 31, 1993.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(b) Pro Forma Financial Information
Index to Unaudited Pro Forma Financial Information
<TABLE>
<CAPTION>
PAGE
--------
<S> <C> <C>
(1) Introduction 2
(2) Unaudited Pro Forma Consolidated Balance Sheets
as of June 30, 1994 3 - 5
(3) Unaudited Pro Forma Consolidated Statements of
Earnings for the Six Months Ended June 30, 1994 6 - 9
(4) Unaudited Pro Forma Consolidated Statements of
Earnings for the Years Ended December 31, 1993,
1992, and 1991 10 - 15
(5) Notes to Unaudited Pro Forma Consolidated
Financial Statements 16
</TABLE>
-2-
<PAGE> 3
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.
Union Planters Corporation
------------------------------------
Registrant
Date: August 19, 1994 /s/ M. Kirk Walters
----------------- ------------------------------------
M. Kirk Walters
Senior Vice President, Treasurer
and Chief Accounting Officer
-3-
<PAGE> 4
UNION PLANTERS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
<PAGE> 5
UNION PLANTERS CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
INTRODUCTION
The following unaudited pro forma consolidated financial statements
present a balance sheet as of June 30, 1994, and statements of earnings for the
six-month period ended June 30, 1994, and for each of the three years ended
December 31, 1993. The pro forma balance sheet presents certain acquisitions
which were completed subsequent to June 30, 1994, as well as pending
acquisitions, the consummation of which is considered by management to be
probable (the probable acquisitions). The statement of earnings for the
six-month period ended June 30, 1994 and for the twelve-month period ended
December 31, 1993, present the pro forma impact of certain acquisitions
completed in 1993 and 1994 and the probable acquisitions assuming that all of
the acquisitions had been completed at January 1, 1993. Acquisitions accounted
for as poolings of interests and completed in 1993 are included in the
Corporation's 1993 results. Pro forma statements of earnings are also presented
for the two years ended December 31, 1992, to reflect the pending acquisitions
of BNF BANCORP, INC. (formerly BANCFIRST Corporation) (BNF), and Grenada
Sunburst System Corporation (GSSC) which are expected to be accounted for as
poolings of interests. Consummation of the BNF and GSSC acquisitions are
considered probable and both meet the test for a significant subsidiary. With
the exception of these two acquisitions, the pro forma impact of the other
probable acquisitions expected to be accounted for as poolings of interests is
not presented because the results of the entities acquired are not considered
significant to consolidated results. The pro forma financial statements should
be read in connection with the Corporation's 1993 Annual Report on Form 10-K
and Quarterly Report on Form 10-Q for the quarters ended March 31, 1994 and
June 30, 1994. Additionally, the Corporation's Current Reports on Form 8-K
dated February 8, 1994, April 14, 1994, May 18, 1994, July 1, 1994, July 26,
1994, and August 17, 1994 contain audited financial statements, unaudited
interim financial statements, and other related information for BNF and GSSC.
Note 1 to these pro forma financial statements identifies (including the
abbreviations for the company names heading the columns of the statements) the
completed and probable acquisitions included herein.
-2-
<PAGE> 6
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
JUNE 30, 1994
(Dollars in thousands)
<TABLE>
<CAPTION>
|---- ACQUISITIONS ----|
UNION PROBABLE PRO FORMA
PLANTERS CONSUMMATED PENDING TOTAL
---------- ------------ ---------- -----------
ASSETS
<S> <C> <C> <C> <C>
Cash and due from banks $ 283,892 $ 6,890 $ 129,908 $ 420,690
Interest-bearing deposits at financial
institutions 10,489 2,235 5,270 17,994
Federal funds sold and securities
purchased under agreements to resell 24,993 15,100 1,130 41,223
Trading account securities, at market 148,204 0 0 148,204
Loans held for resale 6,933 0 32,093 39,026
Investment securities
Available for sale, at fair value 2,331,859 29,535 223,206 2,584,600
Held to maturity, at amortized cost 554,269 23,403 510,045 1,087,717
Loans 3,349,133 140,765 1,926,653 5,416,551
Less: Unearned income (18,308) 0 (8,860) (27,168)
Allowance for losses on loans (85,640) (1,549) (35,256) (122,445)
---------- ------------ ---------- -----------
Net loans 3,245,185 139,216 1,882,537 5,266,938
Premises and equipment 150,185 3,318 59,457 212,960
Accrued interest receivable 58,415 1,131 22,224 81,770
Goodwill and other intangibles 45,193 0 1,274 46,467
Other assets 107,237 1,398 35,844 144,479
---------- ------------ ---------- -----------
Total assets $6,966,854 $ 222,226 $2,902,988 $10,092,068
========== ============ ========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 819,741 $ 5,881 $ 416,913 $ 1,242,535
Certificates of deposit over $100,000 348,293 0 254,974 603,267
Other interest-bearing 4,410,816 176,848 1,905,512 6,493,176
---------- ------------ ---------- -----------
Total deposits 5,578,850 182,729 2,577,399 8,338,978
Short-term borrowings 506,516 316 28,082 534,914
FHLB advances 167,140 9,259 17,000 193,399
Long-term debt 117,049 0 26,636 143,685
Accrued interest, expenses, and taxes 46,694 477 15,921 63,092
Other liabilities 33,696 2,131 12,271 48,098
---------- ------------ ---------- -----------
Total liabilities 6,449,945 194,912 2,677,309 9,322,166
---------- ------------ ---------- -----------
Shareholders' equity
Preferred stock
Convertible 87,298 0 0 87,298
Nonconvertible 17,250 0 0 17,250
Common stock 109,070 7,718 81,242 198,030
Additional paid-in capital 88,851 1,462 2,257 92,570
Net unrealized gain (loss) - available
for sale securities (13,633) 411 (359) (13,581)
Retained earnings 228,073 17,723 142,539 388,335
---------- ------------ ---------- -----------
Total shareholders' equity 516,909 27,314 225,679 769,902
---------- ------------ ---------- -----------
Total liabilities and
shareholders' equity $6,966,854 $ 222,226 $2,902,988 $10,092,068
========== ============ ========== ===========
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-3-
<PAGE> 7
UNION PLANTERS CORPORATION
CONSUMMATED ACQUISITIONS COMBINED BALANCE SHEET
JUNE 30, 1994
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA COMBINED
LBI EBI ADJUSTMENTS TOTAL
---------- ----------- ----------- ----------
ASSETS
<S> <C> <C> <C> <C>
Cash and due from banks $ 4,439 $ 2,451 $ 0 $ 6,890
Interest-bearing deposits at financial
institutions 2,028 207 0 2,235
Federal funds sold and securities
purchased under agreements to resell 13,000 2,100 0 15,100
Trading account securities, at market 0 0 0 0
Loans held for resale 0 0 0 0
Investment securities
Available for sale, at fair value 29,407 128 0 29,535
Held to maturity, at amortized cost 5,328 18,075 0 23,403
Loans 122,813 17,952 0 140,765
Less: Unearned income * * 0 0
Allowance for losses on loans (1,213) (336) 0 (1,549)
---------- ------------ ---------- -----------
Net loans 121,600 17,616 0 139,216
Premises and equipment 2,370 948 0 3,318
Accrued interest receivable 1,131 * 0 1,131
Goodwill and other intangibles 0 0 0 0
Other assets 413 985 0 1,398
---------- ------------ ---------- -----------
Total assets $ 179,716 $ 42,510 $ 0 $ 222,226
========== ============ ========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $ * $ 5,881 $ 0 $ 5,881
Certificates of deposit over $100,000 * * 0 0
Other interest-bearing 147,541 29,307 0 176,848
---------- ------------ ---------- -----------
Total deposits 147,541 35,188 0 182,729
Short-term borrowings 316 0 0 316
FHLB advances 9,259 0 0 9,259
Long-term debt 0 0 0 0
Accrued interest, expenses, and taxes 477 0 0 477
Other liabilities 1,558 573 0 2,131
---------- ------------ ---------- -----------
Total liabilities 159,151 35,761 0 194,912
---------- ------------ ---------- -----------
Shareholders' equity
Preferred stock
Convertible 0 0 0 0
Nonconvertible 0 0 0 0
Common stock 679 1,000 6,039 7,718
Additional paid-in capital 5,501 2,000 (6,039) 1,462
Net unrealized gain (loss)- available
for sale securities 411 0 0 411
Retained earnings 13,974 3,749 0 17,723
---------- ------------ ---------- -----------
Total shareholders' equity 20,565 6,749 0 27,314
---------- ------------ ---------- -----------
Total liabilities and
shareholders' equity $ 179,716 $ 42,510 $ 0 $ 222,226
========== ============ ========== ===========
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-4-
<PAGE> 8
UNION PLANTERS CORPORATION
PROBABLE PENDING ACQUISITIONS COMBINED BALANCE SHEET
JUNE 30, 1994
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA COMBINED
BNF GSSC OBION MSB-ARK ADJUSTMENTS TOTAL
---------- ------------ ---------- ----------- ---------- ----------
ASSETS
<S> <C> <C> <C> <C> <C> <C>
Cash and due from banks $ 3,743 $ 119,705 $ 885 $ 5,575 $ 0 $ 129,908
Interest-bearing deposits at financial
institutions 43 1,143 31 4,053 0 5,270
Federal funds sold and securities 0
purchased under agreements to resell 0 0 375 755 0 1,130
Trading account securities, at market 0 0 0 0 0 0
Loans held for resale 1,130 30,963 0 0 0 32,093
Investment securities 0
Available for sale, at fair value 90,335 127,417 3,721 1,733 0 223,206
Held to maturity, at amortized cost 7,245 461,221 12,319 29,260 0 510,045
Loans 169,330 1,666,436 10,630 80,257 0 1,926,653
Less: Unearned income 0 (8,680) (180) 0 0 (8,860)
Allowance for losses on loans (1,159) (33,132) (213) (752) 0 (35,256)
---------- ------------ ---------- ----------- ---------- ----------
Net loans 168,171 1,624,624 10,237 79,505 0 1,882,537
Premises and equipment 5,021 49,544 143 4,749 0 59,457
Accrued interest receivable 1,937 19,402 885 * 0 22,224
Goodwill and other intangibles 0 0 78 1,196 0 1,274
Other assets 719 32,190 57 2,878 0 35,844
---------- ------------ ---------- ----------- ---------- ----------
Total assets $ 278,344 $ 2,466,209 $ 28,731 $ 129,704 $ 0 $2,902,988
========== ============ ========== =========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $ * $ 397,065 $ 2,466 $ 17,382 $ 0 $ 416,913
Certificates of deposit over $100,000 * 247,129 7,845 * 0 254,974
Other interest-bearing 227,425 1,566,511 14,419 97,157 0 1,905,512
---------- ------------ ---------- ----------- ---------- ----------
Total deposits 227,425 2,210,705 24,730 114,539 0 2,577,399
Short-term borrowings 0 27,585 0 497 0 28,082
FHLB advances 17,000 0 0 0 0 17,000
Long-term debt 0 25,071 0 1,565 0 26,636
Accrued interest, expenses, and taxes 1,750 9,943 122 4,106 0 15,921
Other liabilities 728 9,859 51 1,633 0 12,271
---------- ------------ ---------- ----------- ---------- ----------
Total liabilities 246,903 2,283,163 24,903 122,340 0 2,677,309
---------- ------------ ---------- ----------- ---------- ----------
Shareholders' equity
Preferred stock
Convertible 0 0 0 0 0 0
Nonconvertible 0 0 0 0 0 0
Common stock 18 9,493 200 1,294 70,237 81,242
Additional paid-in capital 11,323 31,842 1,914 951 (43,773) 2,257
Net unrealized gain (loss) - available
for sale securities (355) 0 11 (15) 0 (359)
Retained earnings 20,455 141,711 1,703 5,134 (26,464) 142,539
---------- ------------ ---------- ----------- ---------- ----------
Total shareholders' equity 31,441 183,046 3,828 7,364 0 225,679
---------- ------------ ---------- ----------- ---------- ----------
Total liabilities and
shareholders' equity $ 278,344 $ 2,466,209 $ 28,731 $ 129,704 $ 0 $2,902,988
========== ============ ========== =========== ========== ==========
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-5-
<PAGE> 9
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED PRO FORMA STATEMENT OF EARNINGS
SIX MONTHS ENDED JUNE 30, 1994
(Dollars in thousands)
<TABLE>
<CAPTION>
|-------------- ACQUISTIONS --------------|
UNION CONSUMMATED CONSUMMATED PROBABLE PRO FORMA
PLANTERS PURCHASES POOLING PENDING TOTAL
Interest income ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Interest and fees on loans $ 132,678 $ 1,630 $ 3,455 $ 76,081 $ 213,844
Interest on investment securities
Taxable 57,612 704 552 17,209 76,077
Tax-exempt 13,680 36 378 2,626 16,720
Interest on deposits at financial institutions 218 1 0 149 368
Interest on federal funds sold and securities
purchased under agreements to resell 1,299 (163) 0 297 1,433
Interest on trading account securities 3,978 0 84 0 4,062
Interest on loans held for resale 829 0 0 1,760 2,589
----------- ----------- ----------- ----------- -----------
Total interest income 210,294 2,208 4,469 98,122 315,093
----------- ----------- ----------- ----------- -----------
Interest expense
Interest on deposits 74,595 1,115 1,782 34,530 112,022
Interest on short-term borrowings 5,815 0 0 642 6,457
Interest on FHLB advances and long-term debt 7,659 8 113 1,236 9,016
----------- ----------- ----------- ----------- -----------
Total interest expense 88,069 1,123 1,895 36,408 127,495
----------- ----------- ----------- ----------- -----------
Net interest income 122,225 1,085 2,574 61,714 187,598
Provision for losses on loans - 144 30 1,800 1,974
----------- ----------- ----------- ----------- -----------
Net interest income after provision
for losses on loans 122,225 941 2,544 59,914 185,624
----------- ----------- ----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 15,364 58 137 9,224 24,783
Bank card income 3,944 0 0 0 3,944
Mortgage servicing income 3,323 0 0 0 3,323
Trust service income 3,007 0 0 1,006 4,013
Profits and commissions on trading activities 2,841 0 0 0 2,841
Investment securities gains 101 0 2 163 266
Other income 10,735 7 419 6,093 17,254
----------- ----------- ----------- ----------- -----------
Total noninterest income 39,315 65 558 16,486 56,424
----------- ----------- ----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 49,664 749 943 28,680 80,036
Net occupancy expense 8,595 63 191 4,036 12,885
Equipment expense 8,648 56 79 4,231 13,014
Other expense 43,754 610 1,078 17,005 62,447
----------- ----------- ----------- ----------- -----------
Total noninterest expense 110,661 1,478 2,291 53,952 168,382
----------- ----------- ----------- ----------- -----------
Earnings before income taxes, extraordinary
items, and accounting changes 50,879 (472) 811 22,448 73,666
Applicable income taxes 14,994 4 525 7,109 22,632
----------- ----------- ----------- ----------- -----------
Earnings before extraordinary items
and accounting changes $ 35,885 $ (476)$ 286 $ 15,339 $ 51,034
=========== =========== =========== =========== ===========
Earnings per common share
Primary $ 1.44 $ 1.17
Fully diluted 1.33 1.13
Weighted average shares outstanding
(in thousands)
Primary 21,905 39,697
Fully diluted 26,387 44,179
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-6-
<PAGE> 10
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED PURCHASE ACQUISITIONS COMBINED STATEMENT OF EARNINGS
SIX MONTHS ENDED JUNE 30, 1994
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA PURCHASE
TBI ACB ADJUSTMENTS TOTAL
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 1,384 $ 251 $ (5) $ 1,630
Interest on investment securities
Taxable 581 5 118 704
Tax-exempt 36 0 36
Interest on deposits at financial institutions 1 0 1
Interest on federal funds sold and securities
purchased under agreements to resell 7 6 (176) (163)
Interest on trading account securities 0 0 0
Interest on loans held for resale 0 0 0
----------- ----------- ----------- -----------
Total interest income 2,009 262 (63) 2,208
----------- ----------- ----------- -----------
Interest expense
Interest on deposits 1,043 110 (38) 1,115
Interest on short-term borrowings 0 0 0 0
Interest on FHLB advances and long-term debt 8 0 0 8
----------- ----------- ----------- -----------
Total interest expense 1,051 110 (38) 1,123
----------- ----------- ----------- -----------
Net interest income 958 152 (25) 1,085
Provision for losses on loans 4 140 0 144
----------- ----------- ----------- -----------
Net interest income after provision
for losses on loans 954 12 (25) 941
----------- ----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 39 19 0 58
Bank card income 0 0 0 0
Mortgage servicing income 0 0 0 0
Trust service income 0 0 0 0
Profits and commissions on trading activities 0 0 0 0
Investment securities gains 0 0 0 0
Other income 5 2 0 7
----------- ----------- ----------- -----------
Total noninterest income 44 21 0 65
----------- ----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 690 59 0 749
Net occupancy expense 62 * 1 63
Equipment expense 72 31 (47) 56
Other expense 420 56 134 610
----------- ----------- ----------- -----------
Total noninterest expense 1,244 146 88 1,478
----------- ----------- ----------- -----------
Earnings before income taxes, extraordinary
items, and accounting changes (246) (113) (113) (472)
Applicable income taxes (credit) 48 0 (44) 4
----------- ----------- ----------- -----------
Earnings before extraordinary items
and accounting changes $ (294) $ (113) $ (69) $ (476)
=========== =========== =========== ===========
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-7-
<PAGE> 11
NION PLANTERS CORPORATION AND SUBSIDIARIES
ONSUMMATED POOLING ACQUISITIONS COMBINED STATEMENT OF EARNINGS
IX MONTHS ENDED JUNE 30, 1994
Dollars in thousands)
<TABLE>
<CAPTION>
POOLING
LBI EBI TOTAL
----------- ----------- -----------
<S> <C> <C> <C>
Interest income
Interest and fees on loans $ 2,565 $ 890 $ 3,455
Interest on investment securities
Taxable 520 32 552
Tax-exempt * 378 378
Interest on deposits at financial institutions 0 0 0
Interest on federal funds sold and securities
purchased under agreements to resell 0 0 0
Interest on trading account securities 0 84 84
Interest on loans held for resale 0 0 0
----------- ----------- -----------
Total interest income 3,085 1,384 4,469
----------- ----------- -----------
Interest expense
Interest on deposits 1,309 473 1,782
Interest on short-term borrowings 0 0 0
Interest on FHLB advances and long-term debt 113 0 113
----------- ----------- -----------
Total interest expense 1,422 473 1,895
----------- ----------- -----------
Net interest income 1,663 911 2,574
Provision for losses on loans 30 0 30
----------- ----------- -----------
Net interest income after provision
for losses on loans 1,633 911 2,544
----------- ----------- -----------
Noninterest income
Service charges on deposit accounts * 137 137
Bank card income * 0 0
Mortgage servicing income * 0 0
Trust service income * 0 0
Profits and commissions on trading activities * 0 0
Investment securities gains * 2 2
Other income 399 20 419
----------- ----------- -----------
Total noninterest income 399 159 558
----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 601 342 943
Net occupancy expense 191 * 191
Equipment expense * 79 79
Other expense 841 237 1,078
----------- ----------- -----------
Total noninterest expense 1,633 658 2,291
----------- ----------- -----------
Earnings before income taxes, extraordinary
items, and accounting changes 399 412 811
Applicable income taxes 330 195 525
----------- ----------- -----------
Earnings before extraordinary items
and accounting changes $ 69 $ 217 $ 286
=========== =========== ===========
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-8-
<PAGE> 12
UNION PLANTERS CORPORATION
PROBABLE PENDING ACQUISITIONS COMBINED STATEMENT OF EARNINGS
SIX MONTHS ENDED JUNE 30, 1994
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA
BNF OBION GSSC MSB-ARK ADJUSTMENTS TOTAL
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 6,584 $ 453 $ 66,050 $ 2,994 $ 0 $ 76,081
Interest on investment securities
Taxable 2,848 418 13,269 674 0 17,209
Tax-exempt * 66 2,538 22 0 2,626
Interest on deposits at financial institutions * * 11 138 0 149
Interest on federal funds sold and securities 0
purchased under agreements to resell * 23 263 11 0 297
Interest on trading account securities * * * * 0 0
Interest on loans held for resale * * 1,760 * 0 1,760
----------- ----------- ----------- ----------- ----------- -----------
Total interest income 9,432 960 83,891 3,839 0 98,122
----------- ----------- ----------- ----------- ----------- -----------
Interest expense
Interest on deposits 3,880 409 28,927 1,314 0 34,530
Interest on short-term borrowings 0 * 522 120 0 642
Interest on FHLB advances and long-term debt 455 * 684 97 0 1,236
----------- ----------- ----------- ----------- ----------- -----------
Total interest expense 4,335 409 30,133 1,531 0 36,408
----------- ----------- ----------- ----------- ----------- -----------
Net interest income 5,097 551 53,758 2,308 0 61,714
Provision for losses on loans 0 - 1,775 25 0 1,800
----------- ----------- ----------- ----------- ----------- -----------
Net interest income after provision
for losses on loans 5,097 551 51,983 2,283 0 59,914
----------- ----------- ----------- ----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 295 46 8,594 289 0 9,224
Bank card income 0 0 * 0 0 0
Mortgage servicing income 0 0 * 0 0 0
Trust service income 0 0 996 10 0 1,006
Profits and commissions on trading activities 0 0 0 0 0 0
Investment securities gains (losses) 106 0 (101) 158 0 163
Other income 326 5 5,595 167 0 6,093
----------- ----------- ----------- ----------- ----------- -----------
Total noninterest income 727 51 15,084 624 0 16,486
----------- ----------- ----------- ----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 1,508 182 25,914 1,076 0 28,680
Net occupancy expense 395 26 3,615 * 0 4,036
Equipment expense * * 3,890 341 0 4,231
Other expense 1,361 142 14,676 826 0 17,005
----------- ----------- ----------- ----------- ----------- -----------
Total noninterest expense 3,264 350 48,095 2,243 0 53,952
----------- ----------- ----------- ----------- ----------- -----------
Earnings before income taxes, extraordinary
items, and accounting changes 2,560 252 18,972 664 0 22,448
Applicable income taxes 943 89 5,821 256 0 7,109
----------- ----------- ----------- ----------- ----------- -----------
Earnings before extraordinary items
and accounting changes $ 1,617 $ 163 $ 13,151 $ 408 $ 0 $ 15,339
=========== =========== =========== =========== =========== ===========
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-9-
<PAGE> 13
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED PRO FORMA STATEMENT OF EARNINGS
YEAR ENDING DECEMBER 31, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
|-------------- ACQUISTIONS -----------|
UNION CONSUMMATED CONSUMMATED PROBABLE PRO FORMA
PLANTERS PURCHASES POOLINGS PENDING TOTAL
Interest income ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Interest and fees on loans $ 241,072 $ 10,045 $ 32,738 $ 142,738 $ 426,593
Interest on investment securities
Taxable 116,025 2,848 10,660 37,573 167,106
Tax-exempt 24,448 320 566 5,544 30,878
Interest on deposits at financial institution 1,634 1 207 446 2,288
Interest on federal funds sold and securities
purchased under agreements to resell 4,602 (478) 1,042 564 5,730
Interest on trading account securities 6,194 0 0 0 6,194
Interest on loans held for resale 3,239 0 0 4,096 7,335
------------ ------------ ------------ ------------ ------------
Total interest income 397,214 12,736 45,213 190,961 646,124
------------ ------------ ------------ ------------ ------------
Interest expense
Interest on deposits 146,800 6,273 19,491 70,076 242,640
Interest on short-term borrowings 6,287 0 284 949 7,520
Interest on FHLB advances and long-term debt 11,460 15 118 2,178 13,771
------------ ------------ ------------ ------------ ------------
Total interest expense 164,547 6,288 19,893 73,203 263,931
------------ ------------ ------------ ------------ ------------
Net interest income 232,667 6,448 25,320 117,758 382,193
Provision for losses on loans 9,689 3,128 1,534 6,911 21,262
------------ ------------ ------------ ------------ ------------
Net interest income after provision
for losses on loans 222,978 3,320 23,786 110,847 360,931
------------ ------------ ------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 28,721 578 2,445 18,657 50,401
Profits and commissions on trading activities 8,720 0 51 0 8,771
Investment securities gains 4,581 239 128 (56) 4,892
Other income 44,715 243 1,687 14,931 61,576
------------ ------------ ------------ ------------ ------------
Total noninterest income 86,737 1,060 4,311 33,532 125,640
------------ ------------ ------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 98,920 1,989 10,266 53,740 164,915
Net occupancy expense 15,909 376 2,169 9,103 27,557
Equipment expense 15,735 380 250 7,307 23,672
Other expense 93,916 3,399 9,324 29,884 136,523
------------ ------------ ------------ ------------ ------------
Total noninterest expense 224,480 6,144 22,009 100,034 352,667
------------ ------------ ------------ ------------ ------------
Earnings before income taxes, extraordinary
items, and accounting changes 85,235 (1,764) 6,088 44,345 133,904
Applicable income taxes 23,967 284 2,206 14,134 40,591
------------ ------------ ------------ ------------ ------------
Earnings before extraordinary items
and accounting changes $ 61,268 $ (2,048) $ 3,882 $ 30,211 $ 93,313
============ ============ ============ ============ ============
Earnings per common share
Primary $ 2.69 $ 2.13
Fully diluted 2.49 2.07
Weighted average shares outstanding
(in thousands)
Primary 19,622 39,630
Fully diluted 23,852 44,228
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-10-
<PAGE> 14
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED PURCHASE ACQUISITIONS COMBINED STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
FIRST FARMERS PRO FORMA PURCHASE
ACB TBI FEDERAL FSB UNION FCB ERIN ADJUSTMENTS TOTAL
------ ------ -------- ---- ------- ------ ------- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $1,590 $4,633 $ 1,813 223 $ 973 $ 330 $ 614 $(131) $10,045
Interest on investment securities
Taxable 52 1,652 173 115 264 30 381 181 2,848
Tax-exempt 0 95 0 20 27 3 175 0 320
Interest on deposits at financial institution 0 0 0 0 0 (2) 3 0 1
Interest on federal funds sold and securities
purchased under agreements to resell 50 0 0 15 21 2 33 (599) (478)
Interest on trading account securities 0 0 0 0 0 0 0 0 0
Interest on loans held for resale 0 0 0 0 0 0 0 0 0
------ ------ -------- ---- ------- ------ ------- ------ --------
Total interest income 1,692 6,380 1,986 373 1,285 363 1,206 (549) 12,736
------ ------ -------- ---- ------- ------ ------- ------ --------
Interest expense
Interest on deposits 751 3,358 1,051 159 616 153 455 (270) 6,273
Interest on short-term borrowings 0 0 0 0 0 0 0 0 0
Interest on FHLB advances and long-term debt 15 0 0 0 0 0 0 0 15
------ ------ -------- ---- ------- ------ ------- ------ --------
Total interest expense 751 3,373 1,051 159 616 153 455 (270) 6,288
------ ------ -------- ---- ------- ------ ------- ------ --------
Net interest income 941 3,007 935 214 669 210 751 (279) 6,448
Provision for losses on loans 20 68 2,650 35 334 0 21 0 3,128
------ ------ -------- ---- ------- ------ ------- ------ --------
Net interest income after provision
for losses on loans 921 2,939 (1,715) 179 335 210 730 (279) 3,320
------ ------ -------- ---- ------- ------ ------- ------ --------
Noninterest income
Service charges on deposit accounts 148 125 150 13 60 34 48 0 578
Profits and commissions on trading activities 0 0 0 0 0 0 0 0
Investment securities gains (losses) 308 134 17 (210) 0 (10) 0 239
Other income 67 33 68 26 30 3 16 0 243
------ ------ -------- ---- ------- ------ ------- ------ --------
Total noninterest income 215 466 352 56 (120) 37 54 0 1,060
------ ------ -------- ---- ------- ------ ------- ------ --------
Noninterest expense
Salaries and employee benefits 343 976 * 55 268 171 176 0 1,989
Net occupancy expense 118 201 * 13 40 9 22 (27) 376
Equipment expense * 397 * 14 91 17 * (139) 380
Other expense 330 1,002 806 71 147 288 218 537 3,399
------ ------ -------- ---- ------- ------ ------- ------ --------
Total noninterest expense 791 2,576 806 153 546 485 416 371 6,144
------ ------ -------- ---- ------- ------ ------- ------ --------
Earnings before income taxes, extraordinary
items, and accounting changes 345 829 (2,169) 82 (331) (238) 368 (650) (1,764)
Applicable income taxes (credit) 114 274 160 24 (143) 0 109 (254) 284
------ ------ -------- ---- ------- ------ ------- ------ --------
Earnings before extraordinary items
and accounting changes $ 231 $ 555 $(2,329) $ 58 $ (188) $(238) $ 259 $(396) $(2,048)
====== ====== ======== ==== ======= ====== ======= ====== ========
</TABLE>
*Not available. Combined with other caption
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-11-
<PAGE> 15
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED PURCHASE ACQUISITIONS COMBINED STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
POOLING
MSB FNBS CBI LBI EBI TOTAL
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 9,839 $ 6,207 $ 2,687 $ 10,932 $ 3,073 $ 32,738
Interest on investment securities
Taxable 2,871 5,225 636 1,478 450 10,660
Tax-exempt 439 36 24 * 67 566
Interest on deposits at financial institution 1 111 2 53 40 207
Interest on federal funds sold and securities
purchased under agreements to resell 196 121 60 476 189 1,042
Interest on trading account securities 0 0 0 0 0 0
Interest on loans held for resale 0 0 0 0 0 0
------------ ------------ ------------ ------------ ------------ ------------
Total interest income 13,346 11,700 3,409 12,939 3,819 45,213
------------ ------------ ------------ ------------ ------------ ------------
Interest expense
Interest on deposits 5,887 5,311 1,397 5,982 914 19,491
Interest on short-term borrowings 281 1 2 0 0 284
Interest on FHLB advances and long-term debt 0 0 0 118 0 118
------------ ------------ ------------ ------------ ------------ ------------
Total interest expense 6,168 5,312 1,399 6,100 914 19,893
------------ ------------ ------------ ------------ ------------ ------------
Net interest income 7,178 6,388 2,010 6,839 2,905 25,320
Provision for losses on loans 1,147 0 128 259 0 1,534
------------ ------------ ------------ ------------ ------------ ------------
Net interest income after provision
for losses on loans 6,031 6,388 1,882 6,580 2,905 23,786
------------ ------------ ------------ ------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 938 636 194 382 295 2,445
Profits and commissions on trading activities 0 0 51 0 0 51
Investment securities gains (losses) (185) 287 4 12 10 128
Other income 515 170 131 833 38 1,687
------------ ------------ ------------ ------------ ------------ ------------
Total noninterest income 1,268 1,093 380 1,227 343 4,311
------------ ------------ ------------ ------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 2,882 3,724 688 2,002 970 10,266
Net occupancy expense 1,040 423 127 389 190 2,169
Equipment expense * 250 * * * 250
Other expense 3,068 2,953 414 2,025 864 9,324
------------ ------------ ------------ ------------ ------------ ------------
Total noninterest expense 6,990 7,350 1,229 4,416 2,024 22,009
------------ ------------ ------------ ------------ ------------ ------------
Earnings before income taxes, extraordinary
items, and accounting changes 309 131 1,033 3,391 1,224 6,088
Applicable income taxes (credit) (15) 85 363 1,301 472 2,206
------------ ------------ ------------ ------------ ------------ ------------
Earnings before extraordinary items
and accounting changes $ 324 $ 46 $ 670 $ 2,090 $ 752 $ 3,882
============ ============ ============ ============ ============ ============
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-12-
<PAGE> 16
UNION PLANTERS CORPORATION
PROBABLE PENDING ACQUISITIONS COMBINED STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA PROBABLE
BNF OBION GSSC MSB-ARK ADJUSTMENTS TOTAL
--------- ---------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 13,187 $ 928 $ 122,482 $ 6,141 $ 0 $ 142,738
Interest on investment securities
Taxable 6,574 818 29,036 1,145 0 37,573
Tax-exempt * 128 5,377 39 0 5,544
Interest on deposits at financial institution * * 108 338 0 446
Interest on federal funds sold and securities 0
purchased under agreements to resell * 46 490 28 0 564
Interest on trading account securities * * * * 0 0
Interest on loans held for resale * * 4,096 * 0 4,096
--------- ------------ ------------ ------------ ------------ ------------
Total interest income 19,761 1,920 161,589 7,691 0 190,961
--------- ------------ ------------ ------------ ------------ ------------
Interest expense
Interest on deposits 7,687 799 58,710 2,880 0 70,076
Interest on short-term borrowings 0 0 943 6 0 949
Interest on FHLB advances and long-term debt 898 0 895 385 0 2,178
--------- ------------ ------------ ------------ ------------ ------------
Total interest expense 8,585 799 60,548 3,271 0 73,203
--------- ------------ ------------ ------------ ------------ ------------
Net interest income 11,176 1,121 101,041 4,420 0 117,758
Provision for losses on loans 54 - 6,815 42 0 6,911
--------- ------------ ------------ ------------ ------------ ------------
Net interest income after provision
for losses on loans 11,122 1,121 94,226 4,378 0 110,847
--------- ------------ ------------ ------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 553 53 17,258 793 0 18,657
Profits and commissions on trading activities 0 0 0 0 0 0
Investment securities gains (losses) 151 (2) (237) 32 0 (56)
Other income 475 57 13,814 585 0 14,931
--------- ------------ ------------ ------------ ------------ ------------
Total noninterest income 1,179 108 30,835 1,410 0 33,532
--------- ------------ ------------ ------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 2,730 384 48,733 1,893 0 53,740
Net occupancy expense 1,183 64 7,100 756 0 9,103
Equipment expense * * 7,307 * 0 7,307
Other expense 1,926 244 26,222 1,492 0 29,884
--------- ------------ ------------ ------------ ------------ ------------
Total noninterest expense 5,839 692 89,362 4,141 0 100,034
--------- ------------ ------------ ------------ ------------ ------------
Earnings before income taxes, extraordinary
items, and accounting changes 6,462 537 35,699 1,647 0 44,345
Applicable income taxes 2,366 176 11,087 505 0 14,134
--------- ------------ ------------ ------------ ------------ ------------
Earnings before extraordinary items
and accounting changes $ 4,096 $ 361 $ 24,612 $ 1,142 $ 0 $ 30,211
========= ============ ============ ============ ============ ============
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-13-
<PAGE> 17
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
FOR THE YEAR-ENDED DECEMBER 31, 1992
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA
UPC BNF GSSC TOTAL
Interest income ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Interest and fees on loans $ 198,197 $ 14,028 $ 103,751 $ 315,976
Interest on investment securities
Taxable 106,139 7,221 29,407 142,767
Tax-exempt 16,148 * 6,090 22,238
Interest on deposits at financial institutions 3,999 * 916 4,915
Interest on federal funds sold and securities
purchased under agreements to resell 4,280 0 970 5,250
Interest on trading account securities 6,648 0 0 6,648
Interest on loans held for resale 3,457 * 3,689 7,146
------------ ------------ ------------ ------------
Total interest income 338,868 21,249 144,823 504,940
------------ ------------ ------------ ------------
Interest expense
Interest on deposits 137,605 9,527 61,903 209,035
Interest on short-term borrowings 6,942 0 1,098 8,040
Interest on FHLB advances and long-term debt 4,868 621 66 5,555
------------ ------------ ------------ ------------
Total interest expense 149,415 10,148 63,067 222,630
------------ ------------ ------------ ------------
Net interest income 189,453 11,101 81,756 282,310
Provision for losses on loans 18,557 637 7,988 27,182
------------ ------------ ------------ ------------
Net interest income after provision
for losses on loans 170,896 10,464 73,768 255,128
------------ ------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 20,843 492 14,255 35,590
Profits and commissions from trading activities 10,168 0 0 10,168
Investment securities gains 13,246 117 656 14,019
Other income 40,700 546 10,424 51,670
------------ ------------ ------------ ------------
Total noninterest income 84,957 1,155 25,335 111,447
------------ ------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 74,772 2,473 39,519 116,764
Net occupancy expense 13,136 961 5,892 19,989
Equipment expense 12,225 * 5,961 18,186
Other expense 99,085 2,186 23,254 124,525
------------ ------------ ------------ ------------
Total noninterest expense 199,218 5,620 74,626 279,464
------------ ------------ ------------ ------------
Earnings before income taxes, extraordinary
items, and accounting changes 56,635 5,999 24,477 87,111
Applicable income taxes 15,196 2,415 6,250 23,861
------------ ------------ ------------ ------------
Earnings before extraordinary items
and accounting changes $ 41,439 $ 3,584 $ 18,227 $ 63,250
============ ============ ============ ============
Earnings per common share
Primary $ 2.10 $ 1.77
Fully diluted 2.02 1.75
Weighted average shares outstanding
(in thosands)
Primary 16,765 32,305
Fully diluted 19,609 35,149
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated
financial statements.
-14-
<PAGE> 18
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
FOR THE YEAR-ENDED DECEMBER 31, 1991
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA
UPC BNF GSSC TOTAL
Interest income ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Interest and fees on loans $ 213,222 $ 14,445 $ 114,269 $ 341,936
Interest on investment securities
Taxable 79,253 7,086 35,612 121,951
Tax-exempt 13,354 * 6,620 19,974
Interest on deposits at financial institutions 7,525 * 2,373 9,898
Interest on federal funds sold and securities
purchased under agreements to resell 6,606 0 2,185 8,791
Interest on trading account securities 5,419 0 0 5,419
Interest on loans held for resale 4,671 * 1,479 6,150
------------ ------------ ------------ ------------
Total interest income 330,050 21,531 162,538 514,119
------------ ------------ ------------ ------------
Interest expense
Interest on deposits 160,252 13,043 86,223 259,518
Interest on short-term borrowings 12,809 0 1,574 14,383
Interest on FHLB advances and long-term debt 4,974 30 192 5,196
------------ ------------ ------------ ------------
Total interest expense 178,035 13,073 87,989 279,097
------------ ------------ ------------ ------------
Net interest income 152,015 8,458 74,549 235,022
Provision for losses on loans 24,835 446 8,922 34,203
------------ ------------ ------------ ------------
Net interest income after provision
for losses on loans 127,180 8,012 65,627 200,819
------------ ------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 19,394 474 13,758 33,626
Profits and commissions from trading activities 14,707 0 0 14,707
Investment securities gains (losses) 3,344 47 (767) 2,624
Other income 33,705 410 7,017 41,132
------------ ------------ ------------ ------------
Total noninterest income 71,150 931 20,008 92,089
------------ ------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 69,756 2,197 36,537 108,490
Net occupancy expense 10,556 987 5,871 17,414
Equipment expense 10,627 * 5,450 16,077
Other expense 73,832 1,646 21,016 96,494
------------ ------------ ------------ ------------
Total noninterest expense 164,771 4,830 68,874 238,475
------------ ------------ ------------ ------------
Earnings before income taxes, extraordinary
items, and accounting changes 33,559 4,113 16,761 54,433
Applicable income taxes 6,051 1,487 3,999 11,537
------------ ------------ ------------ ------------
Earnings before extraordinary items $ 27,508 $ 2,626 $ 12,762 $ 42,896
and accounting changes ============ ============ ============ ============
Earnings per common share
Primary $ 1.59 $ 1.30
Fully diluted 1.58 1.30
Weighted average shares outstanding
(in thousands)
Primary 16,632 32,172
Fully diluted 16,986 32,526
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated
financial statements.
-15-
<PAGE> 19
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. CONSUMMATED ACQUISITIONS
The unaudited pro forma consolidated balance sheet and statements of
earnings reflect the consummated and the probable acquisitions listed below.
The unaudited pro forma consolidated balance sheet gives effect to these
transactions at June 30, 1994 as if they had occurred on that date, and the
unaudited pro forma consolidated statements of earnings reflect the impact of
the transactions as if they had occurred January 1, 1993, except for the
acquisitions of BNF BANCORP, INC. (formerly BANCFIRST Corporation) (BNF) and
Grenada Sunburst System Corporation (GSSC) which are presented assuming the
transactions occurred January 1, 1991. The unaudited pro forma consolidated
results shown are not necessarily indicative of future operating results, nor
can there be any assurance that the pending transactions will be consummated.
For the probable acquisitions expected to be accounted for as poolings of
interests, except BNF and GSSC, statements of earnings for periods prior to
1993 are not presented because the transactions are not significant.
-16-
<PAGE> 20
ACQUISITIONS ACCOUNTED FOR AS POOLINGS OF INTERESTS COMPLETED IN 1993 AND
INCLUDED IN THE CORPORATION'S 1993 BALANCE SHEET AND STATEMENTS OF EARNINGS
<TABLE>
<CAPTION>
DATE SHARES TOTAL ASSETS
INSTITUTION ACQUIRED ISSUED AT JANUARY 1, 1993
- - -------------------------- -------- ------ ------------------
(IN MILLIONS)
<S> <C> <C> <C>
Garrett Bancshares Inc. 5/31/93 613,088 $ 173.7
Hogue Holding Company, Inc. 9/1/93 219,274 38.5
Central State Bancorp, Inc. 9/1/93 630,355 107.8
First Financial Services, Inc. 10/1/93 447,906 86.0
--------- -------
Total 1,910,623 $ 406.0
========= =======
</TABLE>
ACQUISITIONS ACCOUNTED FOR AS PURCHASES COMPLETED IN 1993
<TABLE>
<CAPTION>
DATE PURCHASE RESULTING
INSTITUTION ACQUIRED CONSIDERATION PRICE GOODWILL TOTAL ASSETS
- - --------------------- -------- --------------------- --------- ---------- ------------
(DOLLARS IN MILLIONS)
<S> <C> <C> <C> <C> <C>
Bank of East Tennessee 1/1/93 648,786 Shares of $25.3 $7.0 $231
(BOET) in Morristown, TN (a) Series E Preferred Stock
Security Trust Federal 1/1/93 Cash 22.0 3.0 261
Savings and Loan
Association in
Knoxville, TN and
SaveTrust Federal
Savings Bank in
Dyersburg, TN (Security
Trust/SaveTrust)
First Federal Savings 2/26/93 625,000 Shares of NM (b) - (c) 187
Bank of Maryville, TN Common Stock
(Maryville)(b) (Conversion/Acquisition)
First State 3/12/93 Cash and Common Stock 3.9 .4 34
Bancshares, Inc. (FSB), (90,162 Shares)
Parent Company of
First State Bank of
Fayette County in
Somerville, TN
(Somerville)
First Cumberland Bank 3/15/93 Cash .2 - 20
in Madison, TN
Farmers Union Bank in 4/1/93 Cash 9.5 4.2 78
Ripley, TN
(Farmers Union)
Erin Bank & Trust 6/1/93 259,736 Shares of 8.3 2.1 43
Company in Erin, TN Series E Preferred Stock
(Erin)
</TABLE>
(a) The Corporation had previously acquired 17.93% of the common stock of BOET
($3.4 million). On January 1, 1993, the Corporation purchased an
additional 43.93% of the common stock of BOET in exchange for Series E
Preferred Stock ($11.1 million). Effective May 3, 1993, the Corporation
acquired the remaining outstanding common stock of BOET in exchange for
the Corporation's Series E Preferred Stock ($10.8 million).
(b) The Corporation acquired Maryville, a federal mutual savings bank which,
incidental to a conversion/acquisition, converted to a federal stock
charter. All of the stock of Maryville was acquired by the Corporation in
exchange for a capital contribution equalling approximately $14.1 million
derived in part from the proceeds of a public offering of the
Corporation's Common Stock made in connection with the
conversion/acquisition.
(c) The recording of the acquisition of Maryville using the purchase method of
accounting resulted in negative goodwill of approximately $9.4 million,
$8.1 million of which was deducted from noncurrent, nonmonetary assets
(premises and equipment, fair value adjustment of loans, prepaid software
and mortgage servicing rights). The remaining negative goodwill of $1.3
million was recorded in other liabilities and is being amortized over 7
years.
NM - Not meaningful
-17-
<PAGE> 21
ACQUISITIONS ACCOUNTED FOR AS POOLINGS OF INTERESTS COMPLETED SUBSEQUENT TO
DECEMBER 31, 1993 AND THROUGH AUGUST 18, 1994
<TABLE>
<CAPTION>
APPROXIMATE
INSTITUTION DATE ACQUIRED SHARES ISSUED TOTAL ASSETS
- - --------------------------------- ------------- ------------- ------------
(IN MILLIONS)
<S> <C> <C> <C>
Mid-South Bancorp. Inc., Parent 1/1/94 839,542 $ 185
Company of Simpson County Bank
in Franklin, KY; Adairville Banking
Company in Adairville, KY; General
Trust Company in Nashville, TN;
The Peoples Bank of Elk Valley
in Fayetteville, TN; and First
Citizens Bank in Franklin, Columbia
and Mt. Pleasant, TN (MSB) (a)
First National Bancorp of 3/1/94 974,886 170
Shelbyville, Inc., Parent Company
of First National Bank of
Shelbyville in Shelbyville, TN
(FNB) (a)
Clin-Ark Bancshares, Inc., 4/1/94 217,768 50
Parent Company of First National
Bank of Clinton in Clinton, AR (CBI) (a)
Liberty Bancshares, Inc., 7/1/94 1,223,353 181
Parent Company of Liberty
Federal Savings Bank in
Paris, Tennessee (LBI)
Earle Bancshares, Inc., 8/1/94 320,112 43
Parent Company of
First Southern Bank in
Earle, Arkansas (EBI)
--------- -----
Total 3,575,661 $ 629
========= =====
</TABLE>
(a) Included in the Corporation's June 30, 1994 balance sheet and statement of
earnings.
ACQUISITIONS ACCOUNTED FOR AS PURCHASES COMPLETED SUBSEQUENT TO DECEMBER 31,
1993 AND THROUGH AUGUST 18, 1994
<TABLE>
<CAPTION>
DATE PURCHASE RESULTING APPROXIMATE
INSTITUTION ACQUIRED CONSIDERATION PRICE INTANGIBLES TOTAL ASSETS
- - --------------------------------- -------- ------------- -------- ----------- -------------
(IN MILLIONS)
<S> <C> <C> <C> <C> <C>
Anderson County Bank in
Clinton, TN (ACB) 3/1/94 Cash $ 2.5 $ .7 $ 22
Assumption of liabilities and
purchase of assets from the RTC (A) 4/19/94 Cash .4 .4 15
Tennessee Bancorp, Inc., Parent 5/1/94 Cash equal to 13.5 5.9 98
Company of Tennessee National 1.5 times net
Bank in Columbia, Tennessee (TBI) book value at
closing
</TABLE>
(A) Two subsidiaries of the Corporation assumed approximately $14 million of
deposits (including accrued interest) and acquired assets (primarily
loans) from the Resolution Trust Corporation and simultaneously sold
certain loans to a third party. The pro forma impact of this acquisition
is not presented since it was a failed institution.
-18-
<PAGE> 22
PROBABLE ACQUISITIONS AT AUGUST 18, 1994
<TABLE>
<CAPTION>
METHOD OF TOTAL
INSTITUTION CONSIDERATION ACCOUNTING ASSETS
- - --------------------------------- ------------- ---------- ------
(IN MILLIONS)
<S> <C> <C> <C>
BNF BANCORP. INC., Parent Approximately Pooling of $ 278
Company of BANKFIRST, a 2,054,000 shares Interests
federal savings bank in of the Corporation's
Decatur, Alabama (BNF) Common Stock
Grenada Sunburst System Approximately Pooling of 2,466
Corporation, Parent Company of 13,486,000 shares of Interests
Sunburst Bank, Mississippi, in the Corporation's
Grenada; and Sunburst Bank, Common Stock
Louisiana, in Baton Rouge (GSSC)
Mid South Bancshares, Inc., Approximately Pooling of 130
Parent Company of Security Bank 523,000 shares of Interests
in Paragould, Arkansas, and the Corporation's
Farmers and Merchants Bank in Common Stock
Rey, Arkansas (MSB-ARK)
Commercial Bancorp, Inc., Approximately Pooling of 29
Parent Company of The Commercial 185,000 shares of Interests
Bank of Obion, Tennessee (Obion) the Corporation's
Common Stock
</TABLE>
NOTE 2. REORGANIZATION OF UPNB
As of July 1, 1994, the Corporation formed four new regional bank
subsidiaries, Union Planters Bank of East Tennessee, National Association
(Knoxville); Union Planters Bank of Middle Tennessee, National Association
(Nashville); Union Planters Bank of Chattanooga, National Association
(Chattanooga); and Union Planters Bank of Jackson, National Association
(Jackson) (collectively, the Regional Banks). UPC injected equity of $101.7
million into the Regional Banks with a majority of the funds ($98 million)
provided by a dividend from Union Planters National Bank (UPNB). Each of the
Regional Banks purchased from UPNB, at book value, substantially all of the
assets and assumed the liabilities of the UPNB branches located in its region.
While the separation of the branches previously held by UPNB had no material
impact on the consolidated financial condition of UPC, it will promote the
identification of individual branch operations within their local communities.
UPNB continues to operate branches located in Memphis and West Tennessee.
NOTE 3. EARNINGS CONSIDERATIONS RELATED TO PENDING ACQUISITIONS AND
REORGANIZATIONS
In connection with pending acquisitions, particularly the GSSC
acquisition, and possible internal and acquisition-related reorganizations,
management anticipates that possible significant expenses (e.g., elimination of
duplicate facilities, staff reductions, elimination of duplicate functions,
write-off of impaired assets, etc.) may be incurred in the third and fourth
quarters of 1994 upon completion of ongoing financial, due diligence,
-19-
<PAGE> 23
and strategic reviews and assessments of the post-merger operating environment
of the Corporation. It is preliminarily estimated that at least $2 million of
such expense will be incurred in the third quarter and those expenses have not
been considered in the accompanying pro forma financial statements. Any
additional charges which may be incurred in either the third or fourth quarter
as a result of the completion of the studies cannot be estimated at this time.
Additionally, management of the Corporation expects significant future cost
savings from the combined operations of the Corporation and GSSC once that
acquisition is consummated. Preliminary studies indicate that there are
significant savings opportunities and management expects that they will be
realized once the recommendations are implemented; however, the final savings
which may actually be realized cannot be estimated at this time.
NOTE 4. THIRD QUARTER 1994 EARNINGS CONSIDERATION
The Corporation is evaluating its available for sale (AFS) investment
portfolio in light of the rising interest rate environment in the first half of
1994. Selective restructurings of the AFS investment portfolio to increase book
yields are expected in the last half of 1994. It is currently estimated that
the losses recognized would be in a range of $2.5 million to $5 million after
taxes. These losses have already been recognized on the Corporation's balance
sheet by a reduction in shareholders' equity under SFAS No. 115, adopted
January 1, 1994. The higher book yields in the investment portfolio after the
restructurings are expected to increase the Corporation's future earnings, and
any losses are expected to be earned back over a shorter time period than the
original maturity of the securities being sold. The restructurings are expected
to enhance the liquidity and flexibility of the Corporation's balance sheet.
NOTE 5. UNAUDITED PRO FORMA ADJUSTMENTS
The following summarizes the unaudited pro forma adjustments which are
necessary to reflect the transactions described previously as of June 30, 1994,
for the unaudited pro forma consolidated balance sheet and for the six-month
period ended June 30, 1994 and for the three years ended December 31, 1993, for
the unaudited pro forma consolidated statements of earnings. The adjustments
for the probable acquisitions are based on currently available information and
could change significantly upon consummation. Not all purchase accounting
adjustments have been reflected because certain information is not available;
however, the amounts not reflected are not expected to be material.
-20-
<PAGE> 24
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNION PLANTERS CORPORATION AND
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET ADJUSTMENTS
<TABLE>
<CAPTION>
JUNE 30, 1994
DEBIT (CREDIT)
------------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
(11) COMMON STOCK
TO ELIMINATE COMMON STOCK $ 1,679
ISSUANCE OF COMMON STOCK (7,718)
-------
TOTAL (6,039)
(12) ADDITIONAL PAID-IN CAPITAL
TO ELIMINATE SURPLUS 7,501
EXCESS OF TOTAL EQUITY OVER PAR/STATED VALUE OF STOCK ISSUED (1,462)
-------
TOTAL 6,039
-------
$ 0
=======
</TABLE>
-21-
<PAGE> 25
UNION PLANTERS CORPORATION AND SUBSIDIARIES
PROBABLE PENDING ACQUISITIONS
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET ADJUSTMENTS
<TABLE>
<CAPTION>
JUNE 30, 1994
DEBIT (CREDIT)
-----------------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
(1) COMMON STOCK
TO ELIMINATE COMMON STOCK $ 11,005
ISSUANCE OF COMMON STOCK (81,242)
---------
TOTAL (70,237)
(2) ADDITIONAL PAID-IN CAPITAL
TO ELIMINATE SURPLUS 46,030
EXCESS OF TOTAL EQUITY OVER PAR/STATED VALUE OF STOCK ISSUED (2,257)
---------
TOTAL 43,773
(3) RETAINED EARNINGS
TO ELIMINATE RETAINED EARNINGS 146,845
EXCESS OF TOTAL EQUITY OVER PAR/STATED VALUE OF STOCK ISSUED (120,381)
---------
TOTAL 26,464
--------
TOTAL $ 0
========
</TABLE>
-22-
<PAGE> 26
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF EARNINGS ADJUSTMENTS
<TABLE>
<CAPTION>
SIX TWELVE
MONTHS MONTHS
ENDED ENDED
06/30/94 12/31/93
---------- ----------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C>
(1) INTEREST INCOME - INTEREST AND FEES ON LOANS
AMORTIZATION OF THE WRITE-UP OF LOANS TO FAIR MARKET VALUE $ 5 $ 131
(2) INTEREST INCOME - INVESTMENT SECURITIES
ACCRETION OF THE NET WRITE-DOWN OF INVESTMENT SECURITIES
TO FAIR MARKET VALUE (118) (181)
(3) INTEREST INCOME - FEDERAL FUNDS SOLD
REDUCTION OF INTEREST INCOME FROM THE LIQUIDATION OF
SHORT-TERM INVESTMENTS TO FUND THE PURCHASE PRICE 176 599
(4) INTEREST EXPENSE - DEPOSITS
AMORTIZATION OF THE WRITE-UP OF DEPOSITS TO FAIR MARKET VALUE (38) (270)
(5) NET OCCUPANCY EXPENSE
AMORTIZATION OF FAIR VALUE ADJUSTMENT $ 1 $3
ADJUST DEPRECIATION DUE TO WRITE-DOWN OF EQUIPMENT - 30
REVERSAL OF DEPRECIATION DUE TO THE ALLOCATION OF NEGATIVE GOODWILL - (60)
---- -----
TOTAL 1 (27)
(6) EQUIPMENT EXPENSE
ADJUST DEPRECIATION DUE TO THE SALE OF IDLE ASSETS (1) -
ADJUST DEPRECIATION DUE TO WRITE-DOWN OF EQUIPMENT (46) (139)
---- -----
TOTAL (47) (139)
(7) OTHER EXPENSE
GOODWILL AND OTHER INTANGIBLES AMORTIZATION 134 537
(8) APPLICABLE INCOME TAXES
TAX EFFECT OF ABOVE ADJUSTMENTS, ASSUMING A 39% TAX RATE (44) (254)
----- -----
TOTAL $ 69 $ 396
===== =====
</TABLE>
-23-
<PAGE> 27
NOTE 6. UNAUDITED PRO FORMA CAPITAL RATIOS
The following table summarizes the Corporation's unaudited capital ratios
as of June 30, 1994, and the unaudited pro forma capital ratios assuming
consummation of all completed and probable acquisitions as of June 30, 1994.
<TABLE>
<CAPTION>
As Adjusted for the
Actual Acquisitions
-------- -------------------
<S> <C> <C>
Shareholders' Equity
to Assets 7.42% 7.63%
Leverage Ratio 7.18% 7.41%
Tier 1 Capital to
risk-weighted assets* 14.56% 13.85%
Total Capital to
risk-weighted assets* 18.02% 16.50%
</TABLE>
*Based on estimated risk-weighted assets of the acquisitions consummated
subsequent to June 30, 1994, and all pending acquisitions.
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