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<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
December 8, 1995 (December 8, 1995)
-----------------------------------------
Date of Report (Date of earliest event reported)
UNION PLANTERS CORPORATION
--------------------------------------------------
(Exact name of registrant as specified in charter)
TENNESSEE 1-10160 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
Item 7 (b) below presents unaudited pro forma financial statements of
Union Planters Corporation (the Corporation) reflecting certain pending and
probable acquisitions as of and for the nine months ended September 30, 1995,
and for the three years ended December 31, 1994.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL STATEMENTS, AND EXHIBITS
(b) Pro Forma Financial Information
<TABLE>
<CAPTION>
Index to Unaudited Pro Forma Financial Information Page
--------
<S> <C> <C>
(1) Introduction 1
(2) Unaudited Pro Forma Consolidated Balance Sheet
as of September 30, 1995 2
(3) Unaudited Pro Forma Consolidated Statement of Earnings
for the Nine Months Ended September 30, 1995 3
(4) Unaudited Pro Forma Consolidated Statements of Earnings
for the Years Ended December 31, 1994, 1993, and 1992 4 - 6
(5) Notes to Unaudited Pro Forma Consolidated Financial Statements 7
</TABLE>
-1-
<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: December 8, 1995 /s/ M. Kirk Walters
--------------------- ---------------------------------
M. Kirk Walters
Senior Vice President, Treasurer,
and Chief Accounting Officer
-2-
<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 September 30, 1995, and statements of earnings
for the nine months ended September 30, 1995, and for each of the three years
ended December 31, 1994. The pro forma balance sheet includes on a pro forma
basis the impact of certain pending acquisitions described in Note 1, the
consummations of which are considered by management to be probable. The
statements of earnings for the nine months ended September 30, 1995 and for the
year ended December 31, 1994, present the pro forma impact of certain
acquisitions completed in 1995, and the pending acquisitions considered
probable of consummation assuming that all of the acquisitions had been
completed at January 1, 1994, in each case as described in Note 1. Pro forma
statements of earnings are also presented for the two years ended December 31,
1993, to reflect only the pending acquisition of Capital Bancorporation, Inc.
(Capital) which would constitute a significant subsidiary and is expected to be
accounted for as a pooling of interests. With the exception of the Capital
acquisition, the pro forma impact of the other completed and probable
acquisitions are not presented individually because these entities are not
considered to be significant in the aggregate to the Corporation's consolidated
financial condition or results of operations. The pro forma financial
statements should be read in conjunction with the audited financial statements
and the notes thereto included in Exhibit 13 to the Corporation's 1994 Annual
Report on Form 10-K and the corresponding unaudited financial statements
included in the Corporation's Quarterly Reports on Form 10-Q dated March 31,
1995, June 30, 1995, and September 30, 1995. Additionally, the Corporation's
Current Reports on Form 8-K dated June 20, 1995, August 21, 1995, and November
16, 1995 include respectively: (i) the definitive Agreement and Plan of
Reorganization dated as of June 20, 1995, as amended June 22, 1995, pursuant to
which the Capital acquisition would be effected; (ii) Capital's audited
consolidated financial statements as of December 31, 1994 and 1993 and for the
three years ended December 31, 1994, and Capital's unaudited consolidated
financial statements for the three and six months ended June 30, 1995 and 1994;
and (iii) Capital's unaudited consolidated financial statements for the three
and nine months ended September 30, 1995.
-1-
<PAGE> 6
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1995
(Dollars in thousands)
<TABLE>
<CAPTION>
UNION OTHER
CAPITAL PLANTERS PROBABLE
UNION PRO FORMA AND PENDING PRO FORMA
PLANTERS CAPITAL ADJUSTMENTS CAPITAL ACQUISITIONS TOTAL
---------- ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 464,960 $ 25,224 $ 0 $ 490,184 $ 19,331 $ 509,515
Interest-bearing deposits at financial
institutions 12,639 9,355 0 21,994 767 22,761
Federal funds sold and securities
purchased under agreements to resell 198,873 79,400 0 278,273 820 279,093
Trading account securities 141,798 0 0 141,798 0 141,798
Loans held for resale 65,818 0 0 65,818 0 65,818
Investment securities
Available for sale, at fair value 2,423,224 14,068 98,640 2,535,932 125,769 2,661,701
Held to maturity, at amortized cost 0 98,640 (98,640) 0 0 0
Loans 6,273,070 851,405 0 7,124,475 312,738 7,437,213
Less: Unearned income (30,706) (1,740) 0 (32,446) (1,206) (33,652)
Allowance for losses on loans (120,087) (13,907) 0 (133,994) (2,467) (136,461)
---------- ------------ ----------- ----------- ----------- -----------
Net loans 6,122,277 835,758 0 6,958,035 309,065 7,267,100
Premises and equipment 202,240 27,917 0 230,157 16,531 246,688
Accrued interest receivable 98,967 8,060 0 107,027 3,487 110,514
Goodwill and other intangibles 51,637 10,907 0 62,544 14,791 77,335
Other assets 121,251 6,893 0 128,144 5,033 133,177
---------- ------------ ----------- ----------- ----------- -----------
Total assets $9,903,684 $ 1,116,222 $ 0 $11,019,906 $ 495,594 $11,515,500
========== ============ =========== =========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $1,251,797 $ 103,087 $ 0 $ 1,354,884 $ 68,378 $ 1,423,262
Certificates of deposit of $100,000
and over 609,861 120,712 0 730,573 49,949 780,522
Other interest-bearing 6,479,031 754,840 0 7,233,871 325,545 7,559,416
---------- ------------ ----------- ----------- ----------- -----------
Total deposits 8,340,689 978,639 0 9,319,328 443,872 9,763,200
Short-term borrowings 141,409 23,302 0 164,711 6,618 171,329
FHLB advances 291,706 5,607 0 297,313 6,000 303,313
Long-term debt 116,893 20,404 0 137,297 13,000 150,297
Accrued interest, expenses, and taxes 80,324 0 0 80,324 4,838 85,162
Other liabilities 57,483 7,968 0 65,451 1,138 66,589
---------- ------------ ----------- ----------- ----------- -----------
Total liabilities 9,028,504 1,035,920 0 10,064,424 475,466 10,539,890
---------- ------------ ----------- ----------- ----------- -----------
Shareholders' equity
Preferred stock
Convertible 91,810 0 0 91,810 6,329 98,139
Nonconvertible 0 13,800 0 13,800 0 13,800
Common stock 206,493 309 20,067 226,869 2,201 229,070
Additional paid-in capital 87,649 36,262 (20,067) 103,844 4,667 108,511
Net unrealized gain (loss) on available
for sale securities 16,642 (63) 0 16,579 (143) 16,436
Retained earnings 472,586 29,994 0 502,580 7,074 509,654
---------- ------------ ----------- ----------- ----------- -----------
Total shareholders' equity 875,180 80,302 0 955,482 20,128 975,610
---------- ------------ ----------- ----------- ----------- -----------
Total liabilities and
shareholders' equity $9,903,684 $ 1,116,222 $ 0 $11,019,906 $ 495,594 $11,515,500
========== ============ =========== =========== =========== ===========
<CAPTION>
RETIREMENT
OF DEBT
AND
PREFERRED
STOCK PRO FORMA
OF CAPITAL CONSOLIDATED
---------- -----------
<S> <C> <C>
ASSETS
Cash and due from banks $ 0 $ 509,515
Interest-bearing deposits at financial
institutions 0 22,761
Federal funds sold and securities
purchased under agreements to resell (34,000) 245,093
Trading account securities 0 141,798
Loans held for resale 0 65,818
Investment securities
Available for sale, at fair value 0 2,661,701
Held to maturity, at amortized cost 0 0
Loans 0 7,437,213
Less: Unearned income 0 (33,652)
Allowance for losses on loans 0 (136,461)
---------- -----------
Net loans 0 7,267,100
Premises and equipment 0 246,688
Accrued interest receivable 0 110,514
Goodwill and other intangibles 0 77,335
Other assets 0 133,177
---------- -----------
Total assets $ (34,000) $11,481,500
========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing $ 0 $ 1,423,262
Certificates of deposit of $100,000
and over 0 780,522
Other interest-bearing 0 7,559,416
---------- -----------
Total deposits 0 9,763,200
Short-term borrowings 0 171,329
FHLB advances 0 303,313
Long-term debt (20,404) 129,893
Accrued interest, expenses, and taxes 0 85,162
Other liabilities 0 66,589
---------- -----------
Total liabilities (20,404) 10,519,486
---------- -----------
Shareholders' equity
Preferred stock
Convertible 0 98,139
Nonconvertible (13,800) 0
Common stock 60 229,130
Additional paid-in capital 144 108,655
Net unrealized gain (loss) on available
for sale securities 0 16,436
Retained earnings 0 509,654
---------- -----------
Total shareholders' equity (13,596) 962,014
---------- -----------
Total liabilities and
shareholders' equity $ (34,000) $11,481,500
========== ===========
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-2-
<PAGE> 7
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
OTHER
CONSUMMATED
UNION AND
PLANTERS PROBABLE
UNION AND PENDING PRO FORMA
PLANTERS CAPITAL CAPITAL ACQUISITIONS TOTAL
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 417,752 $ 54,024 $ 471,776 $ 26,456 $ 498,232
Interest on investment securities
Taxable 99,364 4,535 103,899 7,221 111,120
Tax-exempt 23,457 382 23,839 171 24,010
Interest on deposits at financial institutions 1,272 88 1,360 113 1,473
Interest on federal funds sold and securities
purchased under agreements to resell 4,613 2,246 6,859 82 6,941
Interest on trading account securities 9,931 0 9,931 0 9,931
Interest on loans held for resale 2,367 218 2,585 0 2,585
------------ ------------ ------------ ------------ ------------
Total interest income 558,756 61,493 620,249 34,043 654,292
------------ ------------ ------------ ------------ ------------
Interest expense
Interest on deposits 226,146 29,916 256,062 14,793 270,855
Interest on short-term borrowings 8,848 1,026 9,874 111 9,985
Interest on FHLB advances and long-term debt 19,797 1,093 20,890 1,805 22,695
------------ ------------ ------------ ------------ ------------
Total interest expense 254,791 32,035 286,826 16,709 303,535
------------ ------------ ------------ ------------ ------------
Net interest income 303,965 29,458 333,423 17,334 350,757
Provision for losses on loans 8,530 1,289 9,819 1,592 11,411
------------ ------------ ------------ ------------ ------------
Net interest income after provision
for losses on loans 295,435 28,169 323,604 15,742 339,346
------------ ------------ ------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 51,782 2,813 54,595 2,013 56,608
Bank card income 13,972 650 14,622 0 14,622
Mortgage servicing income 6,826 480 7,306 0 7,306
Trust service income 5,864 115 5,979 0 5,979
Profits and commissions from trading activities 8,003 810 8,813 0 8,813
Investment securities gains (losses) 156 0 156 (31) 125
Other income 23,157 1,858 25,015 1,855 26,870
------------ ------------ ------------ ------------ ------------
Total noninterest income 109,760 6,726 116,486 3,837 120,323
------------ ------------ ------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 118,931 11,519 130,450 8,504 138,954
Net occupancy expense 18,682 1,966 20,648 2,203 22,851
Equipment expense 21,367 1,758 23,125 0 23,125
Other expense 96,720 7,337 104,057 6,970 111,027
------------ ------------ ------------ ------------ ------------
Total noninterest expense 255,700 22,580 278,280 17,677 295,957
------------ ------------ ------------ ------------ ------------
Earnings (loss) before income taxes 149,495 12,315 161,810 1,902 163,712
Applicable income taxes (benefit) 46,960 4,728 51,688 1,675 53,363
------------ ------------ ------------ ------------ ------------
Net earnings (loss) $ 102,535 $ 7,587 $ 110,122 $ 227 $ 110,349
============ ============ ============ ============ ============
Earnings per common share
Primary $ 2.37 $ 2.32
Fully diluted 2.25 2.21
Weighted average shares outstanding
(in thousands)
Primary 41,054 44,683
Fully diluted 45,625 49,439
<CAPTION>
RETIREMENT
OF DEBT
AND
PREFERRED
STOCK PRO FORMA
OF CAPITAL CONSOLIDATED
-------------- ------------
<S> <C> <C>
Interest income
Interest and fees on loans $ 0 $ 498,232
Interest on investment securities
Taxable 0 111,120
Tax-exempt 0 24,010
Interest on deposits at financial institutions 0 1,473
Interest on federal funds sold and securities
purchased under agreements to resell (1,469) 5,472
Interest on trading account securities 0 9,931
Interest on loans held for resale 0 2,585
------------- -----------
Total interest income (1,469) 652,823
------------- -----------
Interest expense
Interest on deposits 0 270,855
Interest on short-term borrowings 0 9,985
Interest on FHLB advances and long-term debt (1,093) 21,602
------------- -----------
Total interest expense (1,093) 302,442
------------- -----------
Net interest income (376) 350,381
Provision for losses on loans 0 11,411
------------- -----------
Net interest income after provision
for losses on loans (376) 338,970
------------- -----------
Noninterest income
Service charges on deposit accounts 0 56,608
Bank card income 0 14,622
Mortgage servicing income 0 7,306
Trust service income 0 5,979
Profits and commissions from trading activities 0 8,813
Investment securities gains (losses) 0 125
Other income 0 26,870
------------- -----------
Total noninterest income 0 120,323
------------- -----------
Noninterest expense
Salaries and employee benefits 0 138,954
Net occupancy expense 0 22,851
Equipment expense 0 23,125
Other expense 0 111,027
------------- -----------
Total noninterest expense 0 295,957
------------- -----------
Earnings (loss) before income taxes (376) 163,336
Applicable income taxes (benefit) (147) 53,216
------------- -----------
Net earnings (loss) $ (229) $ 110,120
============= ===========
Earnings per common share
Primary $ 2.27
Fully diluted 2.16
Weighted average shares outstanding
(in thousands)
Primary 45,308
Fully diluted 50,517
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-3-
<PAGE> 8
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
OTHER
CONSUMMATED
UNION AND
PLANTERS PROBABLE
UNION AND PENDING PRO FORMA
PLANTERS CAPITAL CAPITAL ACQUISITIONS TOTAL
------------ ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Interest income
Interest and fees on loans $ 460,617 $ 56,415 $ 517,032 $ 36,913 $ 553,945
Interest on investment securities
Taxable 156,429 5,583 162,012 10,369 172,381
Tax-exempt 32,406 593 32,999 495 33,494
Interest on deposits at financial institutions 718 16 734 180 914
Interest on federal funds sold and securities
purchased under agreements to resell 3,637 835 4,472 140 4,612
Interest on trading account securities 9,143 0 9,143 0 9,143
Interest on loans held for resale 1,107 466 1,573 0 1,573
------------ ------------ ------------ ------------ ------------
Total interest income 664,057 63,908 727,965 48,097 776,062
------------ ------------ ------------ ------------ ------------
Interest expense
Interest on deposits 235,815 26,757 262,572 18,405 280,977
Interest on short-term borrowings 20,082 1,218 21,300 86 21,386
Interest on FHLB advances and long-term debt 19,882 1,097 20,979 2,536 23,515
------------ ------------ ------------ ------------ ------------
Total interest expense 275,779 29,072 304,851 21,027 325,878
------------ ------------ ------------ ------------ ------------
Net interest income 388,278 34,836 423,114 27,070 450,184
Provision for losses on loans 3,636 1,258 4,894 1,602 6,496
------------ ------------ ------------ ------------ ------------
Net interest income after provision
for losses on loans 384,642 33,578 418,220 25,468 443,688
------------ ------------ ------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 52,590 2,961 55,551 3,930 59,481
Bank card income 10,192 761 10,953 0 10,953
Mortgage servicing income 9,095 526 9,621 0 9,621
Trust service income 7,889 101 7,990 0 7,990
Profits and commissions from trading activities 5,537 1,102 6,639 0 6,639
Investment securities gains (losses) (20,298) 0 (20,298) 163 (20,135)
Other income 28,557 1,792 30,349 3,707 34,056
------------ ------------ ------------ ------------ ------------
Total noninterest income 93,562 7,243 100,805 7,800 108,605
------------ ------------ ------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 160,862 14,356 175,218 12,980 188,198
Net occupancy expense 25,750 2,291 28,041 4,644 32,685
Equipment expense 26,451 2,247 28,698 540 29,238
Other expense 185,772 9,968 195,740 11,176 206,916
------------ ------------ ------------ ------------ ------------
Total noninterest expense 398,835 28,862 427,697 29,340 457,037
------------ ------------ ------------ ------------ ------------
Earnings (loss) before income taxes 79,369 11,959 91,328 3,928 95,256
Applicable income taxes (benefit) 20,761 4,706 25,467 2,362 27,829
------------ ------------ ------------ ------------ ------------
Net earnings (loss) $ 58,608 $ 7,253 $ 65,861 $ 1,566 $ 67,427
============ ============ ============ ============ ============
Earnings per common share
Primary $ 1.25 $ 1.28
Fully diluted 1.25 1.28
Weighted average shares outstanding
(in thousands)
Primary 40,055 43,741
Fully diluted 40,397 44,083
<CAPTION>
RETIREMENT
OF DEBT
AND
PREFERRED
STOCK PRO FORMA
OF CAPITAL CONSOLIDATED
------------ -------------
<S> <C> <C>
Interest income
Interest and fees on loans $ 0 $ 553,945
Interest on investment securities
Taxable 0 172,381
Tax-exempt 0 33,494
Interest on deposits at financial institutions 0 914
Interest on federal funds sold and securities
purchased under agreements to resell (1,411) 3,201
Interest on trading account securities 0 9,143
Interest on loans held for resale 0 1,573
------------ -------------
Total interest income (1,411) 774,651
------------ -------------
Interest expense
Interest on deposits 0 280,977
Interest on short-term borrowings 0 21,386
Interest on FHLB advances and long-term debt (1,097) 22,418
------------ -------------
Total interest expense (1,097) 324,781
------------ -------------
Net interest income (314) 449,870
Provision for losses on loans 0 6,496
------------ -------------
Net interest income after provision
for losses on loans (314) 443,374
------------ -------------
Noninterest income
Service charges on deposit accounts 0 59,481
Bank card income 0 10,953
Mortgage servicing income 0 9,621
Trust service income 0 7,990
Profits and commissions from trading activities 0 6,639
Investment securities gains (losses) 0 (20,135)
Other income 0 34,056
------------ -------------
Total noninterest income 0 108,605
------------ -------------
Noninterest expense
Salaries and employee benefits 0 188,198
Net occupancy expense 0 32,685
Equipment expense 0 29,238
Other expense 0 206,916
------------ -------------
Total noninterest expense 0 457,037
------------ -------------
Earnings (loss) before income taxes (314) 94,942
Applicable income taxes (benefit) (122) 27,707
------------ -------------
Net earnings (loss) $ (192) $ 67,235
============ =============
Earnings per common share
Primary $ 1.26
Fully diluted 1.26
Weighted average shares outstanding
(in thousands)
Primary 44,529
Fully diluted 44,871
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-4-
<PAGE> 9
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1993
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
UNION PRO FORMA
PLANTERS CAPITAL CONSOLIDATED
------------ ------------ ------------
<S> <C> <C> <C>
Interest income
Interest and fees on loans $ 375,567 $ 50,400 $ 425,967
Interest on investment securities
Taxable 151,538 5,865 157,403
Tax-exempt 29,825 682 30,507
Interest on deposits at financial institutions 1,742 120 1,862
Interest on federal funds sold and securities
purchased under agreements to resell 5,092 1,083 6,175
Interest on trading account securities 6,194 0 6,194
Interest on loans held for resale 7,432 6 7,438
------------ ------------ ------------
Total interest income 577,390 58,156 635,546
------------ ------------ ------------
Interest expense
Interest on deposits 213,197 24,822 238,019
Interest on short-term borrowings 7,230 973 8,203
Interest on FHLB advances and long-term debt 13,253 1,038 14,291
------------ ------------ ------------
Total interest expense 233,680 26,833 260,513
------------ ------------ ------------
Net interest income 343,710 31,323 375,033
Provision for losses on loans 16,558 1,392 17,950
------------ ------------ ------------
Net interest income after provision
for losses on loans 327,152 29,931 357,083
------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 46,532 2,958 49,490
Bank card income 9,749 644 10,393
Mortgage servicing income 9,239 356 9,595
Trust service income 7,566 77 7,643
Profits and commissions from trading activities 11,577 2,210 13,787
Investment securities gains 4,495 11 4,506
Other income 30,767 1,381 32,148
------------ ------------ ------------
Total noninterest income 119,925 7,637 127,562
------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 150,383 13,328 163,711
Net occupancy expense 23,356 2,037 25,393
Equipment expense 23,986 2,003 25,989
Other expense 121,956 9,401 131,357
------------ ------------ ------------
Total noninterest expense 319,681 26,769 346,450
------------ ------------ ------------
Earnings before income taxes, extraordinary
items, and accounting changes 127,396 10,799 138,195
Applicable income taxes 37,420 3,748 41,168
------------ ------------ ------------
Earnings before extraordinary items
and accounting changes $ 89,976 $ 7,051 $ 97,027
============ ============ ============
Earnings per common share
Primary $ 2.31 $ 2.24
Fully diluted 2.23 2.18
Weighted average shares outstanding
(in thosands)
Primary 35,311 38,914
Fully diluted 39,541 43,144
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-5-
<PAGE> 10
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1992
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
UNION PRO FORMA
PLANTERS CAPITAL CONSOLIDATED
------------ ------------ ------------
<S> <C> <C> <C>
Interest income
Interest and fees on loans $ 314,814 $ 44,134 $ 358,948
Interest on investment securities
Taxable 142,663 4,640 147,303
Tax-exempt 22,238 608 22,846
Interest on deposits at financial institutions 4,915 70 4,985
Interest on federal funds sold and securities
purchased under agreements to resell 5,250 979 6,229
Interest on trading account securities 6,648 0 6,648
Interest on loans held for resale 7,250 0 7,250
------------ ------------ ------------
Total interest income 503,778 50,431 554,209
------------ ------------ ------------
Interest expense
Interest on deposits 209,035 25,035 234,070
Interest on short-term borrowings 8,040 1,046 9,086
Interest on FHLB advances and long-term debt 5,555 287 5,842
------------ ------------ ------------
Total interest expense 222,630 26,368 248,998
------------ ------------ ------------
Net interest income 281,148 24,063 305,211
Provision for losses on loans 27,182 1,889 29,071
------------ ------------ ------------
Net interest income after provision
for losses on loans 253,966 22,174 276,140
------------ ------------ ------------
Noninterest income
Service charges on deposit accounts 35,590 2,160 37,750
Bank card income 8,632 155 8,787
Mortgage servicing income 9,400 353 9,753
Trust service income 6,871 50 6,921
Profits and commissions from trading activities 12,252 1,165 13,417
Investment securities gains (losses) 14,019 0 14,019
Other income 25,845 1,033 26,878
------------ ------------ ------------
Total noninterest income 112,609 4,916 117,525
------------ ------------ ------------
Noninterest expense
Salaries and employee benefits 116,764 9,005 125,769
Net occupancy expense 19,401 1,392 20,793
Equipment expense 18,836 1,495 20,331
Other expense 124,463 6,309 130,772
------------ ------------ ------------
Total noninterest expense 279,464 18,201 297,665
------------ ------------ ------------
Earnings before income taxes 87,111 8,889 96,000
Applicable income taxes 23,861 3,187 27,048
------------ ------------ ------------
Net earnings $ 63,250 $ 5,702 $ 68,952
============ ============ ============
Earnings per common share
Primary $ 1.79 $ 1.75
Fully diluted 1.77 1.73
Weighted average shares outstanding
(in thousands)
Primary 31,910 35,463
Fully diluted 34,754 38,307
</TABLE>
See the accompanying notes to the unaudited pro forma consolidated financial
statements.
-6-
<PAGE> 11
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1. CONSUMMATED AND PENDING ACQUISITIONS
The unaudited pro forma consolidated balance sheet and statements of
earnings reflect all consummated acquisitions and those pending acquisitions,
consummation of which management deems probable, which are listed below. The
unaudited pro forma consolidated balance sheet gives effect to the pending
transactions at September 30, 1995 as if they had been consummated on that date
and the unaudited pro forma consolidated statements of earnings reflect the
impact of the consummated and pending transactions as if they had been
consummated January 1, 1994, with the exception of the acquisition of Capital
which is presented assuming the transaction had been consummated January 1,
1992. In addition to the Corporation's completed acquisitions of FSB and
Planters, Capital acquired Home Federal Savings and Loan Association (Home
Federal) on June 30, 1995. The pro forma impact of that acquisition is also
presented in the statement of earnings assuming consummation January 1, 1994.
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.
UNION PLANTERS CORPORATION ACQUISITION COMPLETED JULY 1, 1995 AND ACCOUNTED FOR
AS A PURCHASE
<TABLE>
<CAPTION>
PURCHASE RESULTING APPROXIMATE
INSTITUTION ACQUIRED CONSIDERATION PRICE INTANGIBLES TOTAL ASSETS
------------------- ---------- --------------- ----- ----------- --------------
(Dollars in millions)
<S> <C> <C> <C> <C> <C>
First State Bancorporation, Inc., 7/1/95 388,497 Shares $13.5 $6.5 $110
Parent Company of First Exchange of Series E
Bank in Tiptonville, Tennessee (FSB) Preferred Stock
</TABLE>
Union Planters Corporation Acquisition Completed September 1, 1995 and
Accounted for as a Pooling of Interests
<TABLE>
<CAPTION>
APPROXIMATE
INSTITUTION SHARES ISSUED TOTAL ASSETS
-------------------- --------------- ----------------
(Dollars in millions)
<S> <C> <C>
Planters Bank & Trust Co. 348,029 Shares $60
in Forrest City, Arkansas of UPC Common Stock
(Planters)
</TABLE>
This acquisition is included in the Corporation's September 30, 1995
consolidated financial statements effective January 1, 1995. Because of
immateriality, prior year historical amounts will not be restated for this
acquisition. The pro forma consolidated statement of earnings includes this
acquisition on a pro forma basis as of January 1, 1994.
-7-
<PAGE> 12
Union Planters Corporation Probable Pending Acquisitions at November 30, 1995
<TABLE>
<CAPTION>
ANTICIPATED
METHOD OF APPROXIMATE
INSTITUTION CONSIDERATION ACCOUNTING TOTAL ASSETS
-------------------- --------------- ------------ --------------
(Dollars in millions)
<S> <C> <C> <C>
Capital Bancorporation, Inc., Approximately 4,192,376 Pooling of $1,116
Cape Girardeau, Missouri, shares of Common Stock (1) Interests
Parent Company of:
Capital Bank of Cape Girardeau County;
Capital Bank of Columbia;
Capital Bank of Southwest Missouri;
Capital Bank & Trust;
Capital Bank of Sikeston;
Capital Bank of Perryville, N.A.;
Maryland Avenue Bancorporation, Inc.;
Century State Bancshares, Inc.; and
Capital Bank, a Federal Savings Bank
(Jonesboro, Arkansas) - (Capital)
Eastern National Bank in Miami, Florida $4.5 million in Purchase 263
cash, up to
317,459 Shares
of Series E
Preferred Stock and
UPC notes in principal
amount $14.5 million
Valley Federal Savings Bank in Approxiately 480,000 Pooling of 126
Sheffield, Alabama shares of Common Stock Interests
First Bancshares of Eastern Arkansas, Cash (approximately) Purchase 59
Inc., West Memphis, Arkansas, and its $10.6 million)
subsidiary First National Bank of
West Memphis
First Bancshares of North Eastern Cash (approximately Purchase 58
Arkansas, Inc., Osceola, Arkansas, and $9.3 million) ------
its subsidiary First National Bank
of Osceola
Total $1,622
======
</TABLE>
- --------------------
(1) Estimated maximum number of shares to be issued in the acquisition
Acquisition Consummated by Capital Bancorporation, Inc. as of June 30, 1995 and
Accounted for as a Purchase
<TABLE>
<CAPTION>
RESULTING APPROXIMATE
INSTITUTION CONSIDERATION INTANGIBLES TOTAL ASSETS
------------------- --------------- ------------- ---------------
(Dollars in millions)
<S> <C> <C> <C>
Home Federal Savings and Loan Association $6.9 million in $3.2 $82
(Home Federal), a federally chartered cash
stock savings association in
Jonesboro, Arkansas (name changed to
Capital Bank, a Federal Savings Bank,
at acquisition)
</TABLE>
-8-
<PAGE> 13
NOTE 3. UNAUDITED PRO FORMA ADJUSTMENTS
The following summarizes the unaudited pro forma adjustments which are
necessary to reflect the transactions described previously. The adjustments for
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 deemed to be material.
-9-
<PAGE> 14
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET ADJUSTMENTS
CAPITAL
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995
DEBIT (CREDIT)
----------------------
(Dollars in thousands)
<S> <C> <C> <C>
(1) INVESTMENT SECURITIES AVAILABLE FOR SALE
TO TRANSFER HELD TO MATURITY SECURITIES TO AVAILABLE FOR SALE $ 98,640
(2) INVESTMENT SECURITIES HELD TO MATURITY
TO TRANSFER HELD TO MATURITY SECURITIES TO AVAILABLE FOR SALE (98,640)
(3) COMMON STOCK
TO ELIMINATE COMMON STOCK OF CAPITAL $ 309
ISSUANCE OF COMMON STOCK OF UNION PLANTERS CORPORATION (20,376)
--------
TOTAL (20,067)
(4) ADDITIONAL PAID-IN CAPITAL
TO ELIMINATE SURPLUS OF CAPITAL 36,262
EXCESS OF TOTAL EQUITY OVER PAR/STATED VALUE OF ISSUED STOCK
OF UNION PLANTERS CORPORATION (16,195)
--------
TOTAL 20,067
-------
TOTAL $ 0
=======
</TABLE>
-10-
<PAGE> 15
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET ADJUSTMENTS
RETIREMENT OF DEBT AND PREFERRED STOCK OF CAPITAL
<TABLE>
<CAPTION>
SEPTEMBER 30, 1995
DEBIT (CREDIT)
-----------------------
(Dollars in thousands)
<S> <C> <C> <C>
(1) FEDERAL FUNDS SOLD
CASH PAID TO RETIRE LONG-TERM DEBT ($20,200)
CASH PAID TO RETIRE PREFERRED STOCK (13,800)
--------
TOTAL ($34,000)
(2) LONG-TERM DEBT
RETIREMENT OF LONG-TERM DEBT $ 20,200
CONVERT CONVERTIBLE DEBT TO COMMON STOCK 204
--------
TOTAL 20,404
(3) NONCONVERTIBLE PREFERRED STOCK
RETIREMENT OF PREFERRED STOCK 13,800
(4) COMMON STOCK
DEBT CONVERTED TO COMMON STOCK OF CAPITAL (1)
TO ELIMINATE COMMON STOCK OF CAPITAL 1
ISSUANCE OF COMMON STOCK OF UNION PLANTERS CORPORATION (60)
--------
TOTAL (60)
(5) ADDITIONAL PAID-IN CAPITAL
EXCESS OVER PAR OF DEBT CONVERTED TO COMMON STOCK OF CAPITAL (203)
TO ELIMINATE SURPLUS OF CAPITAL 203
EXCESS OF TOTAL EQUITY OVER PAR/STATED VALUE OF ISSUED STOCK
OF UNION PLANTERS CORPORATION (144)
--------
(144)
-------
TOTAL $ 0
=======
</TABLE>
-11-
<PAGE> 16
UNION PLANTERS CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS ADJUSTMENTS
RETIREMENT OF DEBT AND PREFERRED STOCK OF CAPITAL
<TABLE>
<CAPTION>
NINE TWELVE
MONTHS MONTHS
ENDED ENDED
09/30/95 12/31/94
-------- --------
(Dollars in thousands)
<S> <C> <C>
(1) INTEREST INCOME - FEDERAL FUNDS SOLD
REDUCTION OF INTEREST INCOME DUE TO CASH PAID TO:
RETIRE LONG-TERM DEBT $ 873 $ 838
RETIRE NONCONVERTIBLE PREFERRED STOCK 596 573
------ ------
TOTAL 1,469 1,411
(2) INTEREST EXPENSE - LONG-TERM DEBT
REDUCTION OF INTEREST EXPENSE DUE TO RETIREMENT OF LONG-TERM DEBT (1,093) (1,097)
(3) APPLICABLE INCOME TAXES
TAX EFFECT OF ABOVE ADJUSTMENTS,
ASSSUMING A 39% TAX RATE (147) (122)
------ ------
TOTAL $ 229 $ 192
====== ======
</TABLE>
-12-
<PAGE> 17
NOTE 4. EARNINGS CONSIDERATIONS RELATED TO PENDING ACQUISITIONS
Note 1 to the unaudited pro forma consolidated financial statements
presents the Corporation's pending acquisitions which management deems probable
of consummation. It is expected that the Corporation or the institutions to be
acquired will incur charges related to such acquisitions and to the
assimilation of those institutions into the UPC organization. Anticipated
charges would arise from matters such as, but not limited to, legal and
accounting fees, financial advisory fees, consulting fees, payment of
contractual benefits triggered by a change of control, early retirement and
involuntary separation and related benefits, postretirement and postemployment
benefit expenses related to employees of entities which were acquired in a
transaction accounted for as a pooling of interests and who were given credit
for prior service, costs associated with elimination of duplicate facilities
and branch closures, data processing charges, cancellation of vendor contracts,
the potential for additional provisions for loan losses and similar costs which
normally arise from the consolidation of operational activities.
Aggregate charges expected to arise from the pending acquisitions have
been preliminarily estimated to be between $8 million to $10 million after
taxes. To the extent that any of these charges should be contingent upon
consummation of a particular transaction, those charges would be recognized in
the period in which such transaction closes. This range of potential charges is
based on currently available information as well as preliminary estimates and
is subject to change. The range is provided as a preliminary estimate of the
significant charges which may in the aggregate be required and should be viewed
accordingly. These charges are not reflected in the pro forma financial
statements.
NOTE 5. SUBSEQUENT EVENT
On November 7, 1995, the Corporation issued in an underwritten public
offering $100 million of 6 3/4% Subordinated Notes due 2005 (the Notes) at
99.408. Interest on the Notes is payable in arrears semiannually on May 1 and
November 1. The Notes are not redeemable prior to maturity and will mature on
November 1, 2005. The Notes are subordinated to all present and future "senior
indebtedness" of the Corporation (as defined in the Indenture under which they
were issued) and payment may be accelerated only in the case of certain events
involving bankruptcy, insolvency, or reorganization of the Corporation. The
Notes qualify as Tier 2 capital under existing risk-based capital guidelines.
This transaction is not included in the pro forma financial statements.
-13-
<PAGE> 18
NOTE 6. UNAUDITED PRO FORMA CAPITAL RATIOS
The following table summarizes the Corporation's unaudited capital ratios
as of September 30, 1995 and the unaudited pro forma capital ratios assuming
consummation of all completed and probable acquisitions as of September 30,
1995.
<TABLE>
<CAPTION>
AS ADJUSTED FOR THE
ACTUAL ACQUISITIONS
------------ --------------------
<S> <C> <C>
Sharesholders' Equity
to Assets 8.84% 8.38%
Leverage Ratio 8.29 7.69
Tier 1 Capital to
Risk-Weighted Assets* 13.27 11.89
Total Capital to
Risk-Weighted Assets* 15.74 14.17
</TABLE>
- --------------------
*Based on estimated risk-weighted assets of all pending acquisitions.
-14-
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