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<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
January 11, 1994
Date of Report (Date of earliest event reported)
UNION PLANTERS CORPORATION
(Exact name of registrant as specified in charter)
TENNESSEE 0-6919 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
Since December 31, 1992, the Corporation has consummated twelve
acquisitions of other financial institutions through January 1, 1994.
Additionally, the Corporation currently has pending agreements to acquire six
financial institutions which are considered probable. These pending
acquisitions are expected to be completed during the first half of 1994 and are
subject to regulatory and shareholder approval. There can be no assurance that
these approvals will be obtained, that requisite conditions precedent to
closing any of the transactions will be satisfied, or that any of the
transactions will be consummated.
Item 7 (b) below presents the pro forma impact of the acquisitions as of
September 30, 1993 and for the nine months ended September 30, 1993 and for the
twelve months ended December 31, 1992.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS
AND EXHIBITS
(b) Pro Forma Financial Information
Index to Unaudited Pro Forma Financial Information
PAGE
--------
(1) Introduction 1
(2) Unaudited Pro Forma Consolidated Balance
Sheet as of September 30, 1993 2 thru 4
(3) Unaudited Pro Forma Consolidated Statement
of Earnings for the Nine Months Ended
September 30, 1993 5 thru 8
(4) Unaudited Pro Forma Consolidated Statement
of Earnings for the Year Ended December 31,
1992 9 thru 14
(5) Notes to Unaudited Pro Forma Consolidated
Financial Statements 15
-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: January 11, 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 presents unaudited consolidated statements of earnings for
the nine months ended September 30, 1993 and for the twelve months ended
December 31, 1992, and an unaudited consolidated balance sheet as of September
30, 1993. The pro forma financial statements are presented assuming the
completed and probable acquisitions listed in Note 1 (identifies the
abbreviations for the company names above the columns of the statements) were
consummated at the beginning of the earliest period, January 1, 1992. The pro
forma financial statements should be read in connection with Union Planters
Corporation's (the Corporation) Annual Report on Form 10-K for the year ended
December 31, 1992 and its Quarterly Reports on Form 10-Q dated March 31, June
30, and September 30, 1993. Additionally, the pro forma statements should be
read in connection with the Corporation's Current Reports on Form 8-K dated
September 27 and October 14, 1993 and January 10, 1994, which contain the 1992
audited financial statements and September 30, 1993 interim financial
statements for certain of the consummated and probable acquisitions.
-1-
<PAGE> 6
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
|---- ACQUISITIONS/----|
SALE OF BRANCHES
UNION PRO FORMA
PLANTERS CONSUMMATED PROBABLE TOTAL
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 251,679 $ 9,033 $ 276 $ 260,988
Interest-bearing deposits at financial
institutions 35,456 1,485 3,415 40,356
Federal funds sold and securities
purchased under agreements to resell 136,487 7,331 19,475 163,293
Trading account securities, at market 126,308 0 0 126,308
Loans held for resale 48,818 0 3,661 52,479
Securities held for sale 458,187 0 (26,189) 431,998
Securities held for investment 2,072,178 75,979 168,698 2,316,855
Loans, net of unearned income 2,762,660 164,561 310,730 3,237,951
Allowance for losses on loans (81,298) (3,996) (5,702) (90,996)
----------- ----------- ----------- -----------
Net loans 2,681,362 160,565 305,028 3,146,955
Premises and equipment 130,541 6,124 8,965 145,630
Goodwill and other intangibles 42,628 373 5,556 48,557
Mortgage servicing rights 4,149 0 0 4,149
Other real estate 5,010 749 1,028 6,787
Other assets 146,774 7,426 10,020 164,220
----------- ----------- ----------- -----------
Total assets $ 6,139,577 $ 269,065 $ 499,933 $ 6,908,575
========== ========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 749,073 $ 27,418 $ 26,856 $ 803,347
Interest-bearing 4,432,348 206,823 424,243 5,063,414
----------- ----------- ----------- -----------
Total deposits 5,181,421 234,241 451,099 5,866,761
Short-term borrowings
Federal funds purchased and
securities sold under agreements
to repurchase 184,780 25 0 184,805
Other 6,441 701 0 7,142
Federal Home Loan Bank advances 149,257 4,249 600 154,106
Long-term debt
Subordinated debentures and notes 74,292 0 0 74,292
Other 3,275 4,874 0 8,149
Other liabilities 80,687 3,315 5,149 89,151
----------- ----------- ----------- -----------
Total liabilities 5,680,153 247,405 456,848 6,384,406
----------- ----------- ----------- -----------
Shareholders' equity
Preferred stock 104,548 0 0 104,548
Common stock 95,751 6,430 14,288 116,469
Additional paid-in capital 83,368 (490) 906 83,784
Retained earnings 175,757 15,720 27,891 219,368
----------- ----------- ----------- -----------
Total shareholders' equity 459,424 21,660 43,085 524,169
----------- ----------- ----------- -----------
Total liabilities and
shareholders' equity $ 6,139,577 $ 269,065 $ 499,933 $ 6,908,575
========== ========== ========== ==========
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated
financial statements.
2
<PAGE> 7
UNION PLANTERS CORPORATION
CONSUMMATED ACQUISITIONS COMBINED BALANCE SHEETS
SEPTEMBER 30, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA COMBINED
FFS MSB ADJUSTMENTS TOTAL
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 2,831 $ 6,202 $ 0 $ 9,033
Interest-bearing deposits at financial
institutions 1,485 0 0 1,485
Federal funds sold and securities
purchased under agreements to resell 1,905 5,426 0 7,331
Trading account securities, at market 0 0 0 0
Loans held for resale 0 0 0 0
Securities held for sale 0 0 0 0
Securities held for investment 26,474 49,505 0 75,979
Loans, net of unearned income 49,582 114,979 0 164,561
Allowance for losses on loans (2,099) (1,897) 0 (3,996)
----------- ----------- ----------- -----------
Net loans 47,483 113,082 0 160,565
Premises and equipment 1,747 4,377 0 6,124
Goodwill and other intangibles 0 373 0 373
Mortgage servicing rights 0 0 0 0
Other real estate 40 709 0 749
Other assets 3,000 4,426 0 7,426
----------- ----------- ----------- -----------
Total assets $ 84,965 $ 184,100 $ 0 $ 269,065
========== ========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 7,817 $ 19,601 $ 0 $ 27,418
Interest-bearing 62,477 144,346 0 206,823
----------- ----------- ----------- -----------
Total deposits 70,294 163,947 0 234,241
Short-term borrowings
Federal funds purchased and
securities sold under agreements
to repurchase 0 25 0 25
Other 0 701 0 701
Federal Home Loan Bank Advances 4,249 0 0 4,249
Long-term debt
Subordinated debentures and notes 0 0 0 0
Other 0 4,874 0 4,874
Other liabilities 1,364 1,951 0 3,315
----------- ----------- ----------- -----------
Total liabilities 75,907 171,498 0 247,405
----------- ----------- ----------- -----------
Shareholders' equity
Preferred stock 0 0 0 0
Common stock 224 880 5,326 6,430
Additional paid-in capital 3,756 1,080 (5,326) (490)
Retained earnings 5,078 10,642 0 15,720
----------- ----------- ----------- -----------
Total shareholders' equity 9,058 12,602 0 21,660
----------- ----------- ----------- -----------
Total liabilities and
shareholders' equity $ 84,965 $ 184,100 $ 0 $ 269,065
========== ========== ========== ==========
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated
financial statements.
3
<PAGE> 8
UNION PLANTERS CORPORATION
PROBABLE ACQUISITIONS/SALE OF BRANCHES COMBINED BALANCE SHEETS
SEPTEMBER 30, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
SALES OF PRO FORMA COMBINED
FNBS TBI ACB CBI EBI LBI BRANCHES ADJUSTMENTS TOTAL
-------- -------- ------- ------- -------- -------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 4,600 $ 3,296 $ 1,057 $ 1,687 $ 1,973 $ 3,671 $ 0 $ (16,008) $ 276
Interest-bearing deposits at
financial institutions 1,279 0 0 0 989 1,147 0 0 3,415
Federal funds sold and securities
purchased under agreements to resell 2,450 0 2,025 425 4,000 10,575 0 0 19,475
Trading account securities, at market 0 0 0 0 0 0 0 0 0
Loans held for resale 0 0 0 0 0 3,661 0 0 3,661
Securities held for sale 0 0 0 0 0 6,750 (32,939) 0 (26,189)
Securities held for investment 89,825 32,402 809 13,963 9,506 21,172 0 1,021 168,698
Loans, net of unearned income 67,036 52,468 16,240 32,624 20,800 122,563 (1,001) 0 310,730
Allowance for losses on loans (2,889) 0 (466) (359) (318) (1,170) 0 (500) (5,702)
-------- -------- ------- ------- -------- -------- -------- ----------- -----------
Net loans 64,147 52,468 15,774 32,265 20,482 121,393 (1,001) (500) 305,028
Premises and equipment 2,314 3,015 259 894 991 2,269 (343) (434) 8,965
Goodwill and other intangibles 0 0 0 0 0 0 (446) 6,002 5,556
Mortgage servicing rights 0 0 0 0 0 0 0 0 0
Other real estate 67 0 334 0 253 374 0 0 1,028
Other assets 4,514 2,015 248 599 685 2,795 (51) (785) 10,020
-------- -------- ------- ------- -------- -------- -------- ----------- -----------
Total assets $169,196 $ 93,196 $20,506 $49,833 $ 38,879 $173,807 $(34,780) $ (10,704) $ 499,933
======== ======== ======= ======= ======== ======== ======== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 15,128 $ 3,933 $ 2,283 $ 4,471 $ 4,939 $ * $ (3,898) $ 0 $ 26,856
Interest-bearing 138,793 79,133 16,561 41,011 27,270 152,109 (30,634) 0 424,243
-------- -------- ------- ------- -------- -------- -------- ----------- -----------
Total deposits 153,921 83,066 18,844 45,482 32,209 152,109 (34,532) 0 451,099
Short-term borrowings
Federal funds purchased and
securities sold under
agreements to repurchase 0 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0 0
Federal Home Loan Bank advances 0 600 0 0 0 0 0 0 600
Long-term debt
Subordinated debentures and notes 0 0 0 0 0 0 0 0 0
Other 0 0 0 0 0 0 0 0 0
Other liabilities 1,622 513 111 328 443 2,166 (248) 214 5,149
-------- -------- ------- ------- -------- -------- -------- ----------- -----------
Total liabilities 155,543 84,179 18,955 45,810 32,652 154,275 (34,780) 214 456,848
-------- -------- ------- ------- -------- -------- -------- ----------- -----------
Shareholders' equity
Preferred stock 0 0 0 0 0 0 0 0 0
Common stock 1,300 540 105 54 990 634 0 10,665 14,288
Additional paid-in capital 4,240 4,428 3,373 1,307 1,980 4,689 0 (19,111) 906
Retained earnings 8,113 4,049 (1,927) 2,662 3,257 14,209 0 (2,472) 27,891
-------- -------- ------- ------- -------- -------- -------- ----------- -----------
Total shareholders' equity 13,653 9,017 1,551 4,023 6,227 19,532 0 (10,918) 43,085
-------- -------- ------- ------- -------- -------- -------- ----------- -----------
Total liabilities and
shareholders' equity $169,196 $ 93,196 $20,506 $49,833 $ 38,879 $173,807 $(34,780) $ (10,704) $ 499,933
======== ======== ======= ======= ======== ======== ======== =========== ===========
</TABLE>
* - Not available; combined with another caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
4
<PAGE> 9
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED PRO FORMA STATEMENT OF EARNINGS
NINE MONTHS ENDED SEPTEMBER 30,1993
(Dollars in thousands)
<TABLE>
<CAPTION>
|----------- ACQUISITIONS -----------|
UNION CONSUMMATED CONSUMMATED PRO FORMA
PLANTERS PURCHASES POOLINGS PROBABLE TOTAL
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 178,967 $ 3,953 $ 10,319 $ 20,855 $ 214,094
Investment securities
Taxable 88,773 800 3,242 6,964 99,780
Tax-exempt 17,396 225 585 92 18,298
Deposits at financial institutions 1,223 (91) 81 179 1,392
Federal funds sold and securities
purchased under agreements to resell 2,866 71 219 323 3,479
Trading account securities 4,837 0 0 0 4,837
Loans held for resale 2,588 0 0 0 2,588
----------- ----------- ----------- ----------- -----------
Total interest income 296,650 4,958 14,446 28,413 344,467
----------- ----------- ----------- ----------- -----------
Interest expense
Deposits 110,090 2,308 6,145 13,377 131,920
Short-term borrowings 4,699 0 19 29 4,747
Long-term debt 7,859 0 339 0 8,198
----------- ----------- ----------- ----------- -----------
Total interest expense 122,648 2,308 6,503 13,406 144,865
----------- ----------- ----------- ----------- -----------
Net interest income 174,002 2,650 7,943 15,007 199,602
Provision for losses on loans 8,944 3,040 533 751 13,268
----------- ----------- ----------- ----------- -----------
Net interest income after provision
for losses on loans 165,058 (390) 7,410 14,256 186,334
----------- ----------- ----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 20,965 305 1,175 1,411 23,856
Profits and commissions from trading activities 6,728 0 0 0 6,728
Securities gains (losses) 3,874 (69) 71 576 4,452
Other income 32,176 143 271 1,240 33,830
----------- ----------- ----------- ----------- -----------
Total noninterest income 63,743 379 1,517 3,227 68,866
----------- ----------- ----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 73,303 670 3,204 5,541 82,718
Net occupancy expense 11,714 24 960 1,066 13,764
Equipment expense 11,721 122 * 439 12,282
Other expense 70,699 1,638 2,416 4,883 79,636
----------- ----------- ----------- ----------- -----------
Total noninterest expense 167,437 2,454 6,580 11,929 188,400
----------- ----------- ----------- ----------- -----------
Earnings before income taxes and
extraordinary items 61,364 (2,465) 2,347 5,554 66,800
Applicable income taxes 17,009 125 656 1,999 19,789
----------- ----------- ----------- ----------- -----------
Earnings before extraordinary items $ 44,355 $ (2,590) $ 1,691 $ 3,555 $ 47,011
=========== =========== =========== =========== ===========
Earnings per common share
Primary $ 1.99 $ 1.71
Fully diluted 1.85 1.63
Weighted average shares outstanding
(in thousands)
Primary 19,118 23,542
Fully diluted 23,264 27,970
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
5
<PAGE> 10
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS COMBINED STATEMENTS OF EARNINGS
NINE MONTHS ENDED SEPTEMBER 30, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
|---------------------CONSUMMATED PURCHASES---------------|
TOTAL
FIRST FIRST FARMERS PRO FORMA CONSUMMATED
FEDERAL STATE UNION FCB ERIN ADJUSTMENTS PURCHASES
----------- -------- ----------- --------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 1,813 $ 223 $ 973 $ 330 $ 614 $ 0 $ 3,953
Investment securities
Taxable 173 115 264 30 381 (163) 800
Tax-exempt 0 20 27 3 175 0 225
Deposits at financial institutions 0 0 0 (2) 3 (92) (91)
Federal funds sold and securities
purchased under agreements to resell 0 15 21 2 33 0 71
Trading account securities 0 0 0 0 0 0 0
Loans held for resale 0 0 0 0 0 0 0
----------- -------- ----------- --------- ----------- ----------- -----------
Total interest income 1,986 373 1,285 363 1,206 (255) 4,958
----------- -------- ----------- --------- ----------- ----------- -----------
Interest expense
Deposits 1,051 159 616 153 455 (126) 2,308
Short-term borrowings 0 0 0 0 0 0 0
Long-term debt 0 0 0 0 0 0 0
----------- -------- ----------- --------- ----------- ----------- -----------
Total interest expense 1,051 159 616 153 455 (126) 2,308
----------- -------- ----------- --------- ----------- ----------- -----------
Net interest income 935 214 669 210 751 (129) 2,650
Provision for losses on loans 2,650 35 334 0 21 0 3,040
----------- -------- ----------- --------- ----------- ----------- -----------
Net interest income after provision
for losses on loans (1,715) 179 335 210 730 (129) (390)
----------- -------- ----------- --------- ----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 150 13 60 34 48 0 305
Broker/dealer profits and commissions 0 0 0 0 0 0 0
Securities gains (losses) 134 17 (210) 0 (10) 0 (69)
Other income 68 26 30 3 16 0 143
----------- -------- ----------- --------- ----------- ----------- -----------
Total noninterest income 352 56 (120) 37 54 0 379
----------- -------- ----------- --------- ----------- ----------- -----------
Noninterest expense
Salaries and employee benefits * 55 268 171 176 0 670
Net occupancy expense * 13 40 9 22 (60) 24
Equipment expense * 14 91 17 * 0 122
Other expense 806 71 147 288 218 108 1,638
----------- -------- ----------- --------- ----------- ----------- -----------
Total noninterest expense 806 153 546 485 416 48 2,454
----------- -------- ----------- --------- ----------- ----------- -----------
Earnings before income taxes and
extraordinary items (2,169) 82 (331) (238) 368 (177) (2,465)
Applicable income taxes (credit) 160 24 (143) 0 109 (25) 125
----------- -------- ----------- --------- ----------- ----------- -----------
Earnings before extraordinary items $ (2,329) $ 58 $ (188) $ (238) $ 259 $ (152) $ (2,590)
=========== ======== =========== ========= =========== =========== ===========
</TABLE>
* Not available. Combined with other captions.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
6
<PAGE> 11
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS COMBINED STATEMENTS OF EARNINGS
NINE MONTHS ENDED SEPTEMBER 30, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
TOTAL
CONSUMMATED
FFS MSB POOLINGS
----------- ----------- -----------
<S> <C> <C> <C>
Interest income
Interest and fees on loans $ 3,028 $ 7,291 $ 10,319
Investment securities
Taxable 996 2,246 3,242
Tax-exempt 225 360 585
Deposits at financial institutions 80 1 81
Federal funds sold and securities
purchased under agreements to resell 86 133 219
Trading account securities 0 0 0
Loans held for resale 0 0 0
----------- ----------- -----------
Total interest income 4,415 10,031 14,446
----------- ----------- -----------
Interest expense
Deposits 1,705 4,440 6,145
Short-term borrowings 0 19 19
Long-term debt 152 187 339
----------- ----------- -----------
Total interest expense 1,857 4,646 6,503
----------- ----------- -----------
Net interest income 2,558 5,385 7,943
Provision for losses on loans 35 498 533
----------- ----------- -----------
Net interest income after provision
for losses on loans 2,523 4,887 7,410
----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 219 956 1,175
Broker/dealer profits and commissions 0 0 0
Securities gains (losses) 65 6 71
Other income 66 205 271
----------- ----------- -----------
Total noninterest income 350 1,167 1,517
----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 1,047 2,157 3,204
Net occupancy expense 289 671 960
Equipment expense * * *
Other expense 434 1,982 2,416
----------- ----------- -----------
Total noninterest expense 1,770 4,810 6,580
----------- ----------- -----------
Earnings before income taxes and
extraordinary items 1,103 1,244 2,347
Applicable income taxes (credit) 359 297 656
----------- ----------- -----------
Earnings before extraordinary items $ 744 $ 947 $ 1,691
=========== =========== ===========
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
7
<PAGE> 12
UNION PLANTERS CORPORATION
PROBABLE ACQUISITIONS COMBINED STATEMENTS OF EARNINGS
NINE MONTHS ENDED SEPTEMBER 30, 1993
(Dollars in thousands)
<TABLE>
<CAPTION>
PRO FORMA
FNBS TBI ACB CBI EBI LBI ADJUSTMENTS TOTAL
--------- --------- --------- --------- --------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 4,747 $ 3,530 $ 1,178 $ 1,994 $ 1,592 $ 7,814 $ 0 $ 20,855
Investment securities:
Taxable 3,967 1,315 43 471 321 1,147 (300) 6,964
Tax-exempt 29 0 0 17 46 * 0 92
Deposits at financial institutions 85 20 0 2 29 381 (338) 179
Federal funds sold and securities
purchased under agreements to resell 91 0 41 50 141 0 0 323
Trading account securities 0 0 0 0 0 0 0 0
Loans held for resale 0 0 0 0 0 0 0 0
--------- --------- --------- --------- --------- --------- --------- --------
Total interest income 8,919 4,865 1,262 2,534 2,129 9,342 (638) 28,413
--------- --------- --------- --------- --------- --------- --------- --------
Interest expense
Deposits 3,996 2,556 528 1,045 684 4,568 0 13,377
Short-term borrowings 0 10 0 0 0 19 0 29
Long-term debt 0 0 0 0 0 0 0 0
--------- --------- --------- --------- --------- --------- --------- --------
Total interest expense 3,996 2,566 528 1,045 684 4,587 0 13,406
--------- --------- --------- --------- --------- --------- --------- --------
Net interest income 4,923 2,299 734 1,489 1,445 4,755 (638) 15,007
Provision for losses on loans 0 57 9 50 0 135 500 751
--------- --------- --------- --------- --------- --------- --------- --------
Net interest income after provision
for losses on loans 4,923 2,242 725 1,439 1,445 4,620 (1,138) 14,256
--------- --------- --------- --------- --------- --------- --------- --------
Noninterest income
Service charges on deposit accounts 488 94 115 217 217 280 0 1,411
Broker/dealer profits and commissions 0 0 0 0 0 0 0 0
Securities gains (losses) 256 308 0 4 8 0 0 576
Other income 133 26 50 61 18 975 (23) 1,240
--------- --------- --------- --------- --------- --------- --------- --------
Total noninterest income 877 428 165 282 243 1,255 (23) 3,227
--------- --------- --------- --------- --------- --------- --------- --------
Noninterest expense
Salaries and employee benefits 2,038 727 237 415 665 1,459 0 5,541
Net occupancy expense 298 152 107 102 124 289 (6) 1,066
Equipment expense 171 171 0 97 * * 0 439
Other expense 1,402 854 263 353 342 1,435 234 4,883
--------- --------- --------- --------- --------- --------- --------- --------
Total noninterest expense 3,909 1,904 607 967 1,131 3,183 228 11,929
--------- --------- --------- --------- --------- --------- --------- --------
Earnings before income taxes and
extraordinary items 1,891 766 283 754 557 2,692 (1,389) 5,554
Applicable income taxes (credit) 710 293 89 208 238 985 (524) 1,999
--------- --------- --------- --------- --------- --------- --------- --------
Earnings before extraordinary items $ 1,181 $ 473 $ 194 $ 546 $ 319 $ 1,707 $ (865) $ 3,555
========= ========= ========= ========= ========= ========= ========= ========
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
8
<PAGE> 13
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED CONSOLIDATED PRO FORMA STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1992
(Dollars in thousands)
<TABLE>
<CAPTION>
|----------- ACQUISITIONS -----------|
UNION CONSUMMATED CONSUMMATED PRO FORMA
PLANTERS PURCHASES POOLINGS PROBABLE TOTAL
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 199,881 $ 59,256 $ 30,503 $ 31,366 $ 321,006
Investment securities
Taxable 106,139 23,600 10,146 9,789 149,674
Tax-exempt 16,148 783 1,192 143 18,266
Deposits at financial institutions 3,999 (484) 836 (399) 3,952
Federal funds sold and securities
purchased under agreements to resell 4,280 1,021 853 953 7,107
Trading account securities 6,648 0 0 0 6,648
Loans held for resale 3,457 0 0 0 3,457
----------- ----------- ----------- ----------- -----------
Total interest income 340,552 84,176 43,530 41,852 510,110
----------- ----------- ----------- ----------- -----------
Interest expense
Deposits 137,605 43,633 19,078 21,586 221,902
Short-term borrowings 6,942 0 17 5 6,964
Long-term debt 4,868 1,401 668 41 6,978
----------- ----------- ----------- ----------- -----------
Total interest expense 149,415 45,034 19,763 21,632 235,844
----------- ----------- ----------- ----------- -----------
Net interest income 191,137 39,142 23,767 20,220 274,266
Provision for losses on loans 18,557 17,085 4,043 910 40,595
----------- ----------- ----------- ----------- -----------
Net interest income after provision
for losses on loans 172,580 22,057 19,724 19,310 233,671
----------- ----------- ----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 20,843 3,241 1,809 1,794 27,687
Profits and commissions from
trading activities 10,168 0 0 0 10,168
Securities gains (losses) 13,246 1,773 117 448 15,584
Other income 39,016 8,659 2,607 1,588 51,870
----------- ----------- ----------- ----------- -----------
Total noninterest income 83,273 13,673 4,533 3,830 105,309
----------- ----------- ----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 74,772 18,804 9,697 7,165 110,438
Net occupancy expense 13,136 3,635 1,675 1,435 19,881
Equipment expense 12,225 3,140 391 424 16,180
Other expense 99,085 18,946 7,559 6,089 131,679
----------- ----------- ----------- ----------- -----------
Total noninterest expense 199,218 44,525 19,322 15,113 278,178
----------- ----------- ----------- ----------- -----------
Earnings before income taxes and
extraordinary items 56,635 (8,795) 4,935 8,027 60,802
Applicable income taxes (credit) 15,196 86 1,317 2,718 19,317
----------- ----------- ----------- ----------- -----------
Earnings before extraordinary items $ 41,439 $ (8,881) $ 3,618 $ 5,309 $ 41,485
=========== ========== =========== =========== ===========
Earnings per common share
Primary $ 2.10 $ 1.44
Fully diluted 2.02 1.44 **
Weighted average shares outstanding
(in thousands)
Primary 16,765 23,143
Fully diluted 19,609 27,250
</TABLE>
* Not available. Combined with other caption. ** Antidilutive
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
9
<PAGE> 14
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS COMBINED STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1992
(Dollars in thousands)
<TABLE>
<CAPTION>
1992 1993 CONSUMMATED
PURCHASES PURCHASES PURCHASES
----------- ----------- -----------
<S> <C> <C> <C>
Interest income
Interest and fees on loans $ 17,193 $ 42,063 $ 59,256
Investment securities
Taxable 7,113 16,487 23,600
Tax-exempt 187 596 783
Deposits at financial institutions (857) 373 (484)
Federal funds sold and securities
purchased under agreements to resell 486 535 1,021
Trading account securities 0 0 0
Loans held for resale 0 0 0
----------- ----------- -----------
Total interest income 24,122 60,054 84,176
----------- ----------- -----------
Interest expense
Deposits 13,122 30,511 43,633
Short-term borrowings 0 0 0
Long-term debt 1,149 252 1,401
----------- ----------- -----------
Total interest expense 14,271 30,763 45,034
----------- ----------- -----------
Net interest income 9,851 29,291 39,142
Provision for losses on loans 13,329 3,756 17,085
----------- ----------- -----------
Net interest income after provision
for losses on loans (3,478) 25,535 22,057
----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 779 2,462 3,241
Profits and commissions from
trading activities 0 0 0
Securities gains (losses) 742 1,031 1,773
Other income 1,391 7,268 8,659
----------- ----------- -----------
Total noninterest income 2,912 10,761 13,673
----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 5,972 12,832 18,804
Net occupancy expense 272 3,363 3,635
Equipment expense 863 2,277 3,140
Other expense 8,346 10,600 18,946
----------- ----------- -----------
Total noninterest expense 15,453 29,072 44,525
----------- ----------- -----------
Earnings before income taxes and
extraordinary items (16,019) 7,224 (8,795)
Applicable income taxes (credit) (2,007) 2,093 86
----------- ----------- -----------
Earnings before extraordinary items $ (14,012) $ 5,131 $ (8,881)
=========== =========== ============
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
10
<PAGE> 15
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS COMBINED STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1992
(Dollars in thousands)
<TABLE>
<CAPTION>
|----------------------- 1992 PURCHASES ----------------------|
PRO FORMA
SBI FIDELITY BOC ADJUSTMENTS TOTAL
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 2,281 $ 12,116 $ 2,817 $ (21) $ 17,193
Investment securities
Taxable 794 4,024 2,775 (480) 7,113
Tax-exempt 187 0 0 0 187
Deposits at financial institutions 18 84 0 (959) (857)
Federal funds sold and securities
purchased under agreements to resell 83 270 133 0 486
Trading account securities 0 0 0 0 0
Loans held for resale 0 0 0 0 0
----------- ----------- ----------- ----------- -----------
Total interest income 3,363 16,494 5,725 (1,460) 24,122
----------- ----------- ----------- ----------- -----------
Interest expense
Deposits 1,509 9,473 2,595 (455) 13,122
Short-term borrowings 0 * 0 0 0
Long-term debt 72 1,077 0 0 1,149
----------- ----------- ----------- ----------- -----------
Total interest expense 1,581 10,550 2,595 (455) 14,271
----------- ----------- ----------- ----------- -----------
Net interest income 1,782 5,944 3,130 (1,005) 9,851
Provision for losses on loans 279 12,750 300 0 13,329
----------- ----------- ----------- ----------- -----------
Net interest income after provision
for losses on loans 1,503 (6,806) 2,830 (1,005) (3,478)
----------- ----------- ----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 244 216 319 0 779
Profits and commissions from
trading activities 0 0 0 0 0
Securities gains (losses) 184 558 0 0 742
Other income (3) 1,124 270 0 1,391
----------- ----------- ----------- ----------- -----------
Total noninterest income 425 1,898 589 0 2,912
----------- ----------- ----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 630 4,073 1,269 0 5,972
Net occupancy expense * 414 131 (273) 272
Equipment expense 169 559 135 0 863
Other expense 524 6,727 1,072 23 8,346
----------- ----------- ----------- ----------- -----------
Total noninterest expense 1,323 11,773 2,607 (250) 15,453
----------- ----------- ----------- ----------- -----------
Earnings before income taxes and
extraordinary items 605 (16,681) 812 (755) (16,019)
Applicable income taxes (credit) 150 (1,958) 313 (512) (2,007)
----------- ----------- ----------- ----------- -----------
Earnings before extraordinary items $ 455 $ (14,723) $ 499 $ (243) $ (14,012)
=========== =========== ========== =========== ===========
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
11
<PAGE> 16
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS COMBINED STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1992
(Dollars in thousands)
<TABLE>
<CAPTION>
|--------------------------------- 1993 PURCHASES------------------------------|
SECURITY
TRUST/ FIRST FIRST FARMERS
SAVETRUST BOET FEDERAL STATE UNION FCB ERIN ADJUSTMENTS TOTAL
--------- ------- ------- ------- -------- ------ ----- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 11,139 $ 12,166 $11,100 $ 1,497 $ 4,129 $ 1,892 $ 1,492 $ (1,352) $ 42,063
Investment securities
Taxable 7,908 4,098 2,403 853 1,046 299 1,105 (1,225) 16,487
Tax-exempt 0 0 0 53 96 23 424 0 596
Deposits at financial institutions 339 82 274 0 5 1 8 (336) 373
Federal funds sold and securities
purchased under agreements to resell 121 185 0 50 71 47 61 0 535
Trading account securities 0 0 0 0 0 0 0 0 0
Loans held for resale 0 0 0 0 0 0 0 0 0
-------- ------- ------ ------- ------- ------ ------ ------ ---------
Total interest income 19,507 16,531 13,777 2,453 5,347 2,262 3,090 (2,913) 60,054
-------- -------- ------ ------- ------- ------- ------ ------ ---------
Interest expense
Deposits 12,443 6,373 8,465 1,151 2,586 1,181 1,235 (2,923) 30,511
Short-term borrowings 0 0 0 0 0 0 0 0 0
Long-term debt 0 12 136 6 95 3 0 0 252
-------- ------- ------ ------- ------- ------ ------ ------ ---------
Total interest expense 12,443 6,385 8,601 1,157 2,681 1,184 1,235 (2,923) 30,763
-------- ------- ------ ------- ------- ------- ------ ------ ---------
Net interest income 7,064 10,146 5,176 1,296 2,666 1,078 1,855 10 29,291
Provision for losses on loans 584 2,105 55 106 296 538 72 0 3,756
-------- ------- ------ ------- ------- ------- ------- ------ ---------
Net interest income after provision
for losses on loans 6,480 8,041 5,121 1,190 2,370 540 1,783 10 25,535
-------- ------- ------ ------- ------- ------- ------ ------ ---------
Noninterest income
Service charges on deposit accounts 0 1,658 233 99 221 143 108 0 2,462
Profits and commissions from
trading activities 0 0 0 0 0 0 0 0 0
Securities gains (losses) 515 465 0 21 5 0 25 0 1,031
Other income 2,078 3,899 937 40 133 137 44 0 7,268
-------- -------- ------ ------- ------- ------- ------- ------ ---------
Total noninterest income 2,593 6,022 1,170 160 359 280 177 0 10,761
-------- -------- ------ ------- ------- ------- ------- ------ ---------
Noninterest expense
Salaries and employee benefits 2,893 5,680 1,740 319 898 707 595 0 12,832
Net occupancy expense 1,447 1,377 565 * * 0 * (26) 3,363
Equipment expense * 1,591 * 142 337 114 93 0 2,277
Other expense 2,203 3,843 1,641 322 751 722 361 757 10,600
-------- -------- ------ ------- ------- ------- ------- ------ ---------
Total noninterest expense 6,543 12,491 3,946 783 1,986 1,543 1,049 731 29,072
-------- -------- ------ ------- ------- ------- ------- ------ ---------
Earnings before income taxes and
extraordinary items 2,530 1,572 2,345 567 743 (723) 911 (721) 7,224
Applicable income taxes (credit) 205 450 728 203 237 0 253 17 2,093
-------- -------- ------ ------- ------ ------- ------- ------ ---------
Earnings before extraordinary items $ 2,325 $ 1,122 $1,617 $ 364 $ 506 $ (723) 658 (738) $ 5,131
======== ======== ====== ====== ====== ======= ======= ====== =========
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated
financial statements.
12
<PAGE> 17
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS COMBINED STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1992
(Dollars in thousands)
<TABLE>
<CAPTION>
|------------------------ 1993 POOLINGS ----------------------|
GBI HHC CSB FFS MSB TOTAL
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 10,412 $ 1,746 $ 5,567 $ 4,284 $ 8,494 $ 30,503
Investment securities
Taxable 3,196 763 1,583 1,425 3,179 10,146
Tax-exempt 43 41 368 284 456 1,192
Deposits at financial institutions 64 0 661 106 5 836
Federal funds sold and securities
purchased under agreements to resell 174 91 176 123 289 853
Trading account securities 0 0 0 0 0 0
Loans held for resale 0 0 0 0 0 0
----------- ----------- ----------- ----------- ----------- -----------
Total interest income 13,889 2,641 8,355 6,222 12,423 43,530
----------- ----------- ----------- ----------- ----------- -----------
Interest expense
Deposits 5,601 1,212 3,435 2,639 6,191 19,078
Short-term borrowings 0 0 0 0 17 17
Long-term debt 336 0 26 92 214 668
----------- ----------- ----------- ----------- ----------- -----------
Total interest expense 5,937 1,212 3,461 2,731 6,422 19,763
----------- ----------- ----------- ----------- ----------- -----------
Net interest income 7,952 1,429 4,894 3,491 6,001 23,767
Provision for losses on loans 2,930 0 0 497 616 4,043
----------- ----------- ----------- ----------- ----------- -----------
Net interest income after provision
for losses on loans 5,022 1,429 4,894 2,994 5,385 19,724
----------- ----------- ----------- ----------- ----------- -----------
Noninterest income
Service charges on deposit accounts 1,031 172 298 308 * 1,809
Profits and commissions from
trading activities 0 0 0 0 0 0
Securities gains (losses) 16 0 3 46 52 117
Other income 269 24 564 250 1,500 2,607
----------- ----------- ----------- ----------- ----------- -----------
Total noninterest income 1,316 196 865 604 1,552 4,533
----------- ----------- ----------- ----------- ----------- -----------
Noninterest expense
Salaries and employee benefits 3,468 658 1,465 1,485 2,621 9,697
Net occupancy expense 484 35 81 311 764 1,675
Equipment expense 333 58 * * * 391
Other expense 2,461 233 1,625 983 2,257 7,559
----------- ----------- ----------- ----------- ----------- -----------
Total noninterest expense 6,746 984 3,171 2,779 5,642 19,322
----------- ----------- ----------- ----------- ----------- -----------
Earnings before income taxes and
extraordinary items (408) 641 2,588 819 1,295 4,935
Applicable income taxes (credit) (152) 196 880 239 154 1,317
----------- ----------- ----------- ----------- ----------- -----------
Earnings before extraordinary items $ (256) $ 445 $ 1,708 $ 580 $ 1,141 $ 3,618
=========== =========== =========== =========== =========== ===========
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
13
<PAGE> 18
UNION PLANTERS CORPORATION
PROBABLE ACQUISITIONS COMBINED STATEMENT OF EARNINGS
YEAR ENDED DECEMBER 31, 1992
(Dollars in thousands)
<TABLE>
<CAPTION>
FNBS TBI LBI EBI CBI ACB ADJUSTMENTS TOTAL
----- ------ ------- ------- ------ ---- ----------- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 7,651 $ 5,768 $ 11,391 $ 2,438 $ 2,701 $ 1,417 $ 0 $ 31,366
Investment securities:
Taxable 4,750 1,975 2,152 389 784 160 (421) 9,789
Tax-exempt 48 0 * 95 * * 0 143
Deposits at financial institutions 0 43 37 53 109 0 (641) (399)
Federal funds sold and securities
purchased under agreements to resell 377 0 377 144 32 23 0 953
Trading account securities 0 0 0 0 0 0 0 0
Loans held for resale 0 0 0 0 0 0 0 0
------ ------- -------- ------- ------- ------ ------ -------
Total interest income 12,826 7,786 13,957 3,119 3,626 1,60 (1,062) 41,852
------ ------- -------- ------- ------- ----- ------ -------
Interest expense
Deposits 6,378 4,378 7,394 1,035 1,661 740 0 21,586
Short-term borrowings 0 3 0 0 2 0 0 5
Long-term debt 7 0 34 0 0 0 0 41
------ ------- -------- ------- ------- ------ -------- --------
Total interest expense 6,385 4,381 7,428 1,035 1,663 740 0 21,632
------- ------- -------- ------- ------- ------ -------- --------
Net interest income 6,441 3,405 6,529 2,084 1,963 860 (1,062) 20,220
Provision for losses on loans 382 84 174 0 77 193 0 910
------- ------- -------- ------- ------- ----- ------ --------
Net interest income after provision
for losses on loans 6,059 3,321 6,355 2,084 1,886 667 (1,062) 19,310
------- ------- -------- ------- ------- ----- ------ -------
Noninterest income
Service charges on deposit accounts 730 144 322 284 176 138 0 1,794
Profits and commissions from
trading activities 0 0 0 0 0 0 0 0
Securities gains (losses) 364 85 (9) (99) 76 31 0 448
Other income 276 99 836 28 194 170 (15) 1,588
------- ------- ------- ------- ------- ----- ------ -------
Total noninterest income 1,370 328 1,149 213 446 339 (15) 3,830
------- ------- ------- ------- ------- ----- ------ -------
Noninterest expense
Salaries and employee benefits 2,786 839 1,884 758 606 292 0 7,165
Net occupancy expense 379 229 389 173 127 146 (8) 1,435
Equipment expense 231 193 * * * * 0 424
Other expense 1,740 1,096 1,878 388 413 264 310 6,089
------- ------- ------- ------- ------- ----- ------ -------
Total noninterest expense 5,136 2,357 4,151 1,319 1,146 702 302 15,113
------- ------- -------- ------- ------- ----- ------ -------
Earnings (loss) before income taxes and
extraordinary items 2,293 1,292 3,353 978 1,186 304 (1,379) 8,027
Applicable income taxes (credit) 745 475 1,198 222 480 103 (505) 2,718
------- ------- -------- ------- ------- ----- ------ -------
Earnings before extraordinary items $ 1,548 $ 817 $ 2,155 $ 756 $ 706 201 (874) 5,309
======= ======= ======== ======= ======= ===== ======= =======
</TABLE>
* Not available. Combined with other caption.
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
14
<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 probable acquisitions listed below. The
unaudited pro forma balance sheet gives effect to these transactions at
September 30, 1993, 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, 1992. The unaudited pro forma
consolidated results shown are not necessarily indicative of future operating
results, nor can there be any assurance that the transactions will be
consummated. For the transactions accounted for as poolings of interests,
statements of earnings for periods prior to 1992 are not presented because the
transactions are not material to the consolidated results.
-15-
<PAGE> 20
COMPLETED ACQUISITIONS
<TABLE>
<CAPTION>
Date Purchase Resulting
Institution Acquired Consideration Price Goodwill Total Assets
- --------------------- -------- --------------------- -------- ---------- ------------
(Dollars in millions)
<S> <C> <C> <C> <C> <C>
Bank of East 01/01/93 Series E Preferred Stock $25.3 $7.0 $231
Tennessee (BOET) in
Morristown, TN (a)
Security Trust Federal 01/01/93 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 02/26/93 Common Stock NM (b) - (c) 187
Bank of Maryville, (Conversion/Acquisition)
TN (Maryville)
First State 03/12/93 Cash and Common Stock 3.9 .4 34
Bancshares, Inc. (FSB),
Parent Company of
First State Bank of
Fayette County in
Somerville,
TN (Somerville)
First Cumberland Bank 03/15/93 Cash .2 - 20
in Madison, TN
Farmers Union Bank in 04/01/93 Cash 9.5 4.2 78
Ripley, Tennessee
(Farmers Union)
Garrett Bancshares, 05/31/93 Common Stock Note (d) - 169
Inc., Parent Company
of the Bank of
Goodlettsville in
Goodlettsville,
TN (GBI)
Erin Bank & Trust 06/01/93 Series E Preferred Stock 8.3 2.1 43
Company in Erin,
TN (Erin)
Hogue Holding Company, 09/01/93 Common Stock Note (e) - 39
Inc., Parent Company
for the Bank of Weiner
in Weiner, AR
(HHC)
Central State Bancorp, 09/01/93 Common Stock Note (f) - 111
Inc. Parent Company for
Central State Bank in
Lexington, TN
(CSB)
First Financial Services, 10/01/93 Common Stock Note (g) - 86
Inc., Parent Company
for First State Bank in
Brownsville, TN
(FFS)
</TABLE>
-16-
<PAGE> 21
<TABLE>
<CAPTION>
Date Purchase Resulting
Institution Acquired Consideration Price Goodwill Total Assets
- --------------------- -------- --------------------- -------- ---------- ------------
(Dollars in millions)
<S> <C> <C> <C> <C> <C>
Mid-South Bancorp, Inc., 01/01/94 Common Stock Note (h) - 184
Parent Company of Simpson
County Bank in Franklin,
Kentucky; Adairville
Banking Company in
Adairville, Kentucky;
General Trust Company in
Nashville, Tennessee; The
Peoples Bank of Elk Valley
in Fayetteville, Tennessee;
and First Citizens Bank in
Franklin, Columbia and
Mt. Pleasant, Tennessee (MBI)
</TABLE>
(a) The Corporation had previously acquired 17.93% of the common stock of
BOET ($3.4 million), and on January 1, 1993 purchased an additional
43.93% of the common stock of BOET in exchange for 331,741 shares of
the Corporation's Series E Preferred Stock ($11.1 million). Effective
May 3, 1993, the Corporation acquired the remaining outstanding common
stock of BOET for 317,045 shares of the Corporation's Series E
Preferred Stock ($10.8 million).
(b) The Corporation acquired Maryville, a mutual savings bank, which
pursuant to a conversion/acquisition converted to a federal stock
charter, all of the stock of which was acquired by the Corporation in
exchange for a capital contribution equalling approximately $14.1
million derived in part from the proceeds of an 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 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.
(d) The Corporation issued 613,088 shares of its Common Stock in this
transaction which was accounted for as a pooling of interests.
(e) The Corporation issued 219,274 shares of its Common Stock in this
transaction which was accounted for as a pooling of interests.
(f) The Corporation issued 630,355 shares of its Common Stock in this
transaction which was accounted for as a pooling of interests.
(g) The Corporation issued 447,906 shares of its Common Stock in this
transaction which was accounted for as a pooling of interests.
(h) The Corporation issued 839,855 shares of its Common Stock in this
transaction which was accounted for as pooling of interests.
NM - Not meaningful
PROBABLE ACQUISITIONS
The probable acquisitions are as follows:
<TABLE>
<CAPTION>
Method of Total
Institution Consideration Accounting Assets
- --------------------------------- ------------- ---------- ------
(In millions)
<S> <C> <C> <C>
Tennessee Bancorp, Inc., Parent Cash equal to Purchase 92
Company of Tennessee National 1.5 times net
Bank in Columbia, Tennessee (TBI) book value at
closing
First National Bancorp. of Common Stock - Pooling of 164
Shelbyville Inc., Parent Company approximately interests
of First National Bank of 910,000 shares
Shelbyville in Shelbyville,
Tennessee (FNB)
Clin-Ark Bankshares, Inc., Common Stock - Pooling of 48
Parent Company of First National approximately interests
Bank of Clinton in Clinton, 227,768 shares
Arkansas (CBI)
</TABLE>
-17-
<PAGE> 22
<TABLE>
<CAPTION>
Institution Consideration Accounting Assets
- --------------------------------- ------------- ---------- ------
(In millions)
<S> <C> <C> <C>
Andersen County Bank in Cash equal to Purchase 19
Clinton, Tennessee (ACB) 1.6 times book
value at closing
Liberty Bancshares, Inc., Approximately Pooling of 170
Parent Company of Liberty 635,000 shares Interests
Federal Savings Bank in of the Corporation's
Paris, Tennessee (LBI) Common Stock
Earle Bancshares, Inc., Approximately Pooling of 40
Parent Company of 365,000 shares Interests
First Southern Bank in of the Corporation's
Earle, Arkansas (EBI) Common Stock
</TABLE>
TRANSACTIONS CONSUMMATED IN PRIOR YEARS
The following acquisitions were consummated in 1992 and the pro forma
impact of these transactions are presented in the pro forma financial
statements for 1992.
<TABLE>
<CAPTION>
Date Purchase Resulting
Institution Acquired Consideration Price Goodwill Total Assets
- --------------------- -------- --------------------- -------- ---------- ------------
(Dollars in millions)
<S> <C> <C> <C> <C> <C>
Fidelity Bancshares, 03/30/92 Cash $77.4 $ - $822
Inc.
Southeastern 07/01/92 Series D Preferred 5.2 1.1 77
Bancshares, Inc., Stock
Bank of Commerce 11/01/92 Cash 9.9 2.1 89
</TABLE>
The Corporation through Union Planters National Bank (UPNB) on March 27,
1992 assumed approximately $585 million in insured deposits/liabilities
(including accrued interest) of the former Metropolitan Federal Savings and
Loan Association. The purchase and assumption transaction was facilitated
through the Resolution Trust Corporation (RTC) which declared UPNB as the
successful bidder. UPNB also acquired approximately $82 million in assets and
received cash from the RTC totaling approximately $487 million. Pro forma
results for this transaction are not presented because Metropolitan Federal was
a failed financial institution.
-18-
<PAGE> 23
SALES OF KENTUCKY BRANCHES OF SECURITY TRUST
The Corporation has entered into definitive agreements to sell six
Kentucky branches of Security Trust. The sales involve approximately $105
million of deposits, approximately $3 million of loans and approximately $1
million of premises and equipment. It is also expected that the transactions
will result in a reduction of Security Trust's goodwill and purchased mortgage
servicing rights. The sale of four of the branches has been completed (three
in Paducah and one in Clinton, Kentucky).
NOTE 6. UNAUDITED PRO FORMA ADJUSTMENTS
The following summarizes the unaudited pro forma adjustments which are
necessary to reflect the transactions described previously as of September 30,
1993 for the unaudited pro forma consolidated balance sheet and as of January
1, 1992 in the unaudited pro forma consolidated statement of earnings. These
adjustments for probable acquisitions are based on currently available
information and could change significantly upon consummation of the
transactions. Not all purchase accounting adjustments are reflected because
certain information is not available; however, the amounts are not considered
material.
-19-
<PAGE> 24
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET ADJUSTMENTS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1993
DEBIT (CREDIT)
--------------------------------------
(DOLLARS IN THOUSANDS)
<S> <C> <C>
(1) COMMON STOCK
TO ELIMINATE COMMON STOCK $ 1,113
ISSUANCE OF COMMON STOCK (6,439)
---------
TOTAL
(5,326)
(2) ADDITIONAL PAID-IN CAPITAL
TO ELIMINATE ADDITIONAL PAID-IN CAPITAL 4,836
EXCESS OF FAIR VALUE OVER PAR/STATED VALUE OF STOCK ISSUED 490
---------
TOTAL 5,326
---------
TOTAL $0
=========
</TABLE>
20
<PAGE> 25
UNION PLANTERS CORPORATION AND SUBSIDIARIES
PROBABLE ACQUISITIONS
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET ADJUSTMENTS
<TABLE>
<CAPTION>
SEPTEMBER 30, 1993
DEBIT (CREDIT)
---------------------------
(Dollars in thousands)
<S> <C> <C>
(1) CASH AND DUE FROM BANKS
PURCHASE PRICE $ (16,008)
(2) INVESTMENT SECURITIES - HELD FOR INVESTMENT
FAIR VALUE ADJUSTMENT 1,021
(3) ALLOWANCE FOR LOSSES ON LOANS
ADDITIONAL LOAN LOSS PROVISION (500)
(4) PREMISES AND EQUIPMENT
WRITE-OFF CAPITALIZED HARDWARE/SOFTWARE COSTS (434)
(5) GOODWILL AND OTHER INTANGIBLES
GOODWILL AND OTHER INTANGIBLES RESULTING FROM ACQUISITIONS 6,002
(6) OTHER ASSETS
MISCELLANEOUS ADJUSTMENTS (785)
(7) OTHER LIABILITIES
MISCELLANEOUS ADJUSTMENTS (214)
(8) COMMON STOCK
TO ELIMINATE COMMON STOCK $3,623
ISSUANCE OF COMMON STOCK (14,288)
-------
TOTAL (10,665)
(9) ADDITIONAL PAID-IN CAPITAL
TO ELIMINATE ADDITIONAL PAID-IN CAPITAL 20,016
EXCESS OF FAIR VALUE OVER PAR/STATED VALUE OF STOCK ISSUED (905)
-------
TOTAL 19,111
(10)RETAINED EARNINGS
ADDITIONAL LOAN LOSS PROVISION 350
TO ELIMINATE RETAINED EARNINGS 2,122
-------
TOTAL 2,472
-------
TOTAL $0
=======
</TABLE>
21
<PAGE> 26
UNION PLANTERS CORPORATION AND SUBSIDIARIES
CONSUMMATED ACQUISITIONS
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF EARNINGS ADJUSTMENTS
<TABLE>
<CAPTION>
DEBIT (CREDIT)
-------------------------------------
NINE TWELVE
MONTHS MONTHS
ENDED ENDED
9/30/93 12/31/92
--------- ----------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C>
(1) INTEREST INCOME - INTEREST AND FEES ON LOANS
AMORTIZATION OF THE WRITEUP OF LOANS TO FAIR MARKET VALUE $ 0 $ 1,373
(2) INTEREST INCOME - INVESTMENT SECURITIES
NET AMORTIZATION OF THE NET WRITE-UP OF INVESTMENT SECURITIES
TO FAIR MARKET VALUE 163 1,705
(3) INTEREST INCOME - DEPOSITS AT OTHER FINANCIAL INSTITUTIONS
REDUCTION OF INTEREST INCOME FROM THE LIQUIDATION OF
SHORT-TERM INVESTMENTS TO FUND THE PURCHASE PRICE 92 1,295
(4) INTEREST EXPENSE - DEPOSITS
AMORTIZATION OF THE WRITE-UP OF DEPOSITS TO FAIR MARKET VALUE (126) (3,378)
(5) NET OCCUPANCY EXPENSE
AMORTIZATION OF FAIR VALUE ADJUSTMENT $ $ 324
REVERSAL OF DEPRECIATION DUE TO THE ALLOCATION OF NEGATIVE GOODWILL (60) (623)
------- -------
TOTAL (60) (299)
(6) OTHER EXPENSE
GOODWILL AND OTHER INTANGIBLES AMORTIZATION 108 780
(7) APPLICABLE INCOME TAXES
TAX EFFECT OF ADJUSTMENTS, EXCLUDING THE AMORTIZATION OF
GOODWILL, ASSUMING A 39% RATE (25) (495)
------- -------
TOTAL $ 152 $ 981
======= =======
</TABLE>
22
<PAGE> 27
UNION PLANTERS CORPORATION AND SUBSIDIARIES
PROBABLE ACQUISITIONS
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF EARNINGS ADJUSTMENTS
<TABLE>
<CAPTION>
DEBIT (CREDIT)
-------------------------------------
NINE TWELVE
MONTHS MONTHS
ENDED ENDED
9/30/93 12/31/92
--------- ----------
(DOLLARS IN THOUSANDS)
<S> <C> <C> <C> <C>
(1) INTEREST INCOME - INVESTMENT SECURITIES
AMORTIZATION OF THE NET WRITE-UP OF INVESTMENT SECURITIES
TO FAIR MARKET VALUE $ 300 $ 421
(2) INTEREST INCOME - DEPOSITS AT OTHER FINANCIAL INSTITUTIONS
REDUCTION OF INTEREST INCOME FROM THE LIQUIDATION OF
SHORT-TERM INVESTMENTS TO FUND THE PURCHASE PRICE 338 641
(3) PROVISION FOR LOSSES ON LOANS 500 -
ADDITIONAL PROVISION
(4) OTHER INCOME 23 15
ADJUST UNEARNED CREDIT LIFE INSURANCE
(5) NET OCCUPANCY
ADJUST DEPRECIATION DUE TO THE SALE OF IDLE ASSETS (6) (8)
(6) OTHER EXPENSE
GOODWILL AND OTHER INTANGIBLES AMORTIZATION $ 300 $ 398
REVERSE AMORTIZATION OF EXISTING OTHER INTANGIBLES (66) (88)
------ ------
TOTAL 234 310
(7) APPLICABLE INCOME TAXES
TAX EFFECT OF ABOVE ADJUSTMENTS, EXCLUDING THE AMORTIZATION OF
GOODWILL, USING A 39% RATE (524) (505)
------ ------
TOTAL $ 865 $ 874
====== ======
</TABLE>
23
<PAGE> 28
NOTE 7. UNAUDITED PRO FORMA CAPITAL RATIOS
The following table summarizes the Corporation's unaudited capital ratios
as of September 30, 1993 and the unaudited pro forma capital ratios assuming
consummation of all the acquisitions as of September 30, 1993.
<TABLE>
<CAPTION>
As Adjusted for the
Actual Acquisitions
-------- -------------------
<S> <C> <C>
Shareholders' Equity
to Assets 7.48% 7.59%
Leverage Ratio 6.91% 7.07%
Tier 1 Capital to
risk-weighted assets* 14.51%* 14.29%**
Total Capital to
risk-weighted assets* 16.86%* 16.51%**
</TABLE>
*Based on 1992 guidelines
**Based on estimated risk-weighted assets of the pending
acquisitions
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