<PAGE>
=========================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________
FORM 8-K/A
Amendment No. 1 to
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
December 26, 1995
_____________
U. S. BANCORP
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
Oregon
(STATE OR OTHER JURISDICTION OF INCORPORATION)
0-3505
(COMMISSION FILE NO.)
93-0571730
(IRS EMPLOYER IDENTIFICATION NO.)
111 S.W. Fifth Avenue
Portland, Oregon 97204
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
Registrant's telephone number, including area code:
(503) 275-6111
=========================================================================
<PAGE>
ITEM 5. OTHER EVENTS.
The merger (the "Merger") of West One Bancorp ("West One") with and
into the registrant pursuant to an Agreement and Plan of Merger dated as of
May 5, 1995, was consummated on December 26, 1995. West One, a registered
bank holding company headquartered in Boise, Idaho, had total assets of $9.2
billion and total deposits of $7.1 billion at September 30, 1995. The Merger
was approved by the shareholders of West One and of the registrant on
October 3, 1995, and final regulatory approval was received on December 11,
1995.
In the Merger, each outstanding share of West One common stock,
other than certain shares held by the registrant or any of its subsidiaries,
was converted into the right to receive 1.47 shares of the registrant's common
stock, with cash paid in lieu of fractional shares based on the average of the
closing sale prices of the registrant's common stock for the five trading days
immediately preceding December 26, 1995, $31.925 per share. Approximately
54.7 million shares of the registrant's common stock will be issued in the
Merger. The consideration paid by the registrant in the Merger was determined
by arm's-length negotiations between the parties.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements.
The following financial statements of West One Bancorp and
Subsidiaries are filed as part of this report:
Consolidated Balance Sheets at December 31, 1994, and 1993.*
Consolidated Statements of Income for the years ended
December 31, 1994, 1993, and 1992.*
Consolidated Statements of Shareholders' Equity for the years
ended December 31, 1994, 1993, and 1992.*
Consolidated Statements of Cash Flows for the years ended
December 31, 1994, 1993, and 1992.*
Notes to Consolidated Financial Statements.*
Report of Independent Accountants.*
Consolidated Balance Sheets at September 30, 1995, and 1994,
and December 31, 1994 (unaudited).
Consolidated Statements of Income for the quarter and for the
nine months ended September 30, 1995, and 1994 (unaudited).
Consolidated Statements of Cash Flows for the nine months
ended September 30, 1995, and 1994 (unaudited).
Notes to Quarterly Consolidated Financial Statements.
__________________________
*Incorporated by reference to Item 7 of the registrant's Current Report on
Form 8-K dated August 30, 1995.
<PAGE>
(b) Pro Forma Financial Information.
The following unaudited pro forma financial information
of U. S. Bancorp and Subsidiaries is filed as part of this
report:
Pro Forma Condensed Balance Sheet dated September 30, 1995.
Pro Forma Condensed Statement of Income for the nine months
ended September 30, 1995.
Pro Forma Condensed Statement of Income for the year ended
December 31, 1994.
Pro Forma Condensed Statement of Income for the year ended
December 31, 1993.
Pro Forma Condensed Statement of Income for the year ended
December 31, 1992.
Notes to Pro Forma Condensed Financial Statements.
(c) Exhibits.
See the accompanying exhibit index.
<PAGE>
CONSOLIDATED BALANCE SHEETS (Unaudited)
WEST ONE BANCORP AND SUBSIDIARIES
- ------------------------------------------------------------------------------
September 30, December 31,
Dollars in thousands 1995 1994 1994
- ------------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 524,887 $ 512,807 $ 632,577
Federal funds sold, securities
purchased under agreements to
resell and other 237,043 61,117 112,516
______________________________________________________________________________
Securities:
Available for sale 1,165,851 1,040,237 1,139,765
Held to maturity 602,386 600,329 581,155
- ------------------------------------------------------------------------------
Total securities 1,768,237 1,640,566 1,720,920
- ------------------------------------------------------------------------------
Loans:
Real estate - mortgage 2,275,204 2,085,354 2,207,247
Real estate - construction 351,265 298,185 319,228
Commercial and agricultural 2,423,344 2,176,550 2,205,459
Consumer 1,238,638 1,123,140 1,172,616
Leases 175,361 156,228 160,873
- ------------------------------------------------------------------------------
Total loans 6,463,812 5,839,457 6,065,423
Allowance for credit losses (83,094) (79,417) (81,757)
- ------------------------------------------------------------------------------
Net loans 6,380,718 5,760,040 5,983,666
- ------------------------------------------------------------------------------
Premises and equipment 123,867 124,992 128,506
Interest receivable 73,311 61,512 66,605
Other assets 136,440 147,066 147,909
- ------------------------------------------------------------------------------
Total assets $9,244,503 $8,308,100 $8,792,699
==============================================================================
LIABILITIES
Deposits:
Noninterest bearing $1,437,361 $1,335,355 $1,397,843
Interest bearing demand 687,129 714,385 749,755
Regular and money market savings 2,030,400 2,063,256 2,086,718
Time certificates under $100,000 1,983,221 1,688,429 1,755,013
Time certificates $100,000 and over 938,869 757,598 821,553
- ------------------------------------------------------------------------------
Total deposits 7,076,980 6,559,023 6,810,882
Federal funds purchased and securities
sold under agreements to repurchase 462,013 458,917 804,161
Other short-term borrowings 526,565 326,794 122,153
Long-term debt 315,887 188,044 253,073
Other liabilities 104,176 90,956 86,661
- ------------------------------------------------------------------------------
Total liabilities 8,485,621 7,623,734 8,076,930
- ------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common stock - $1.00 par value;
75,000,000 shares authorized;
36,922,837, 35,555,744 and
36,745,368 shares issued 36,923 35,556 36,745
Capital surplus 290,191 320,950 327,879
Retained earnings 430,087 333,228 364,041
Unrealized gain (loss) on
securities, net of tax 1,681 (5,368) (12,896)
- ------------------------------------------------------------------------------
Total shareholders' equity 758,882 684,366 715,769
- ------------------------------------------------------------------------------
Total liabilities and
shareholders' equity $9,244,503 $8,308,100 $8,792,699
==============================================================================
The accompanying notes are an integral part of the financial statements.
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
WEST ONE BANCORP AND SUBSIDIARIES
- ----------------------------------------------------------------------------------------------
For the quarter ended For the nine months
Dollars in thousands September 30, ended September 30,
except per share data 1995 1994 1995 1994
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans $149,832 $122,203 $432,891 $341,245
Short-term investments 2,103 586 4,801 2,008
Interest and dividends on securities:
United States Treasury and
Government agencies 13,147 8,662 35,794 22,954
State and municipal bonds 7,995 7,770 23,126 22,484
Mortgage-backed securities 4,298 3,900 12,098 11,280
Other 2,445 2,158 7,024 7,251
- ----------------------------------------------------------------------------------------------
Total interest income 179,820 145,279 515,734 407,222
- ----------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits 66,574 46,970 189,268 126,284
Federal funds purchased and securities
sold under agreements to repurchase 7,951 5,983 24,029 14,856
Other short-term borrowings 5,944 2,810 11,853 7,885
Long-term debt 4,847 2,230 14,575 5,805
- ----------------------------------------------------------------------------------------------
Total interest expense 85,316 57,993 239,725 154,830
- ----------------------------------------------------------------------------------------------
Net interest income 94,504 87,286 276,009 252,392
Provision for credit losses 2,828 3,046 9,298 10,822
- ----------------------------------------------------------------------------------------------
Net interest income after
provision for credit losses 91,676 84,240 266,711 241,570
- ----------------------------------------------------------------------------------------------
NONINTEREST INCOME
Trust fees and commissions 3,685 3,526 11,182 10,872
Service charges on deposit accounts 10,847 10,171 31,286 29,068
Other service charges, fees
and commissions 16,046 12,897 44,873 35,438
Other 6,791 2,128 12,663 10,231
Gain (loss) on sale of securities 111 (327) (37) (812)
- ----------------------------------------------------------------------------------------------
Total noninterest income 37,480 28,395 99,967 84,797
- ----------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Employee compensation and benefits 41,686 36,385 118,430 105,424
Outside services 9,970 8,132 28,639 23,708
Equipment 5,524 5,075 16,626 16,179
Net occupancy 5,577 5,356 16,322 15,101
Insurance and miscellaneous taxes 1,379 4,932 11,556 14,395
Marketing 2,776 2,514 7,919 7,456
Postage and courier 2,738 2,442 8,200 7,187
Supplies 1,745 1,767 5,568 5,425
Telephone 1,902 2,020 5,862 5,616
Other 6,353 5,874 16,783 17,326
- ----------------------------------------------------------------------------------------------
Total noninterest expense 79,650 74,497 235,905 217,817
- ----------------------------------------------------------------------------------------------
Income before taxes 49,506 38,138 130,773 108,550
Provision for income taxes 16,634 11,077 40,885 32,651
- ----------------------------------------------------------------------------------------------
Net income $ 32,872 $ 27,061 $ 89,888 $ 75,899
==============================================================================================
Primary earnings per share $ .90 $ .76 $ 2.44 $ 2.14
Fully diluted earnings per share .88 .72 2.35 2.03
Dividends declared per share .22 .18 .66 .54
==============================================================================================
</TABLE>
The accompanying notes are an integral part of the financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
WEST ONE BANCORP AND SUBSIDIARIES
- ------------------------------------------------------------------------------
For the nine months ended
September 30,
Dollars in thousands 1995 1994
- ------------------------------------------------------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $89,888 $75,899
Adjustments to reconcile net income to net
cash provided by operating activities:
Provision for credit losses 9,298 10,822
Depreciation of premises and equipment 13,230 12,193
Amortization and accretion of premiums and discounts 7,639 8,483
Amortization of intangible and other assets 8,350 8,595
Originations of real estate loans held for sale (228,898) (220,808)
Proceeds from real estate and other loans sold 249,772 248,046
Net gain on sale of real estate and other loans (7,326) (2,740)
Net loss on sale of securities 37 813
Purchase of trading account securities (90,752) (68,271)
Sale of trading account securities 90,624 68,881
Change in assets and liabilities:
Interest receivable (6,706) (10,191)
Other assets (3,377) (5,759)
Other liabilities 18,439 999
- ------------------------------------------------------------------------------
Net cash provided by operating activities 150,218 126,962
- ------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Change in short-term investments,
maturities less than 90 days (124,262) (36,702)
Purchase of securities available for sale (456,928) (481,190)
Maturity of securities available for sale 251,449 263,157
Sale of securities available for sale 197,689 253,218
Purchase of securities held to maturity (51,402) (62,538)
Maturity of securities held to maturity 25,233 25,564
Sale of securities held to maturity 3,894 --
Change in net loans and leases (421,926) (481,977)
Purchase of premises and equipment (8,549) (12,564)
Sale of premises and equipment 158 228
Additions to intangible assets (6,517) (8,984)
Sale of other real estate owned 5,046 6,016
Cash provided by acquisitions 4,342 175,874
- ------------------------------------------------------------------------------
Net cash used by investing activities (581,773) (359,898)
- ------------------------------------------------------------------------------
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
WEST ONE BANCORP AND SUBSIDIARIES
- ------------------------------------------------------------------------------
For the nine months ended
September 30,
Dollars in thousands 1995 1994
- ------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in deposits 261,348 349,340
Change in short-term borrowings,
maturities less than 90 days (139,904) (106,069)
Proceeds from short-term borrowings 229,871 37,324
Payments on short-term borrowings (28,816) (44,912)
Additions to long-term debt 142,556 80,000
Payments on long-term debt (29,864) (8,309)
Proceeds from issuance of common stock 3,375 6,844
Repurchase of common stock (90,897) --
Cash dividends paid (23,804) (18,859)
- ------------------------------------------------------------------------------
Net cash provided by financing activities 323,865 295,359
- ------------------------------------------------------------------------------
Net (decrease) increase in cash and due from banks (107,690) 62,423
Cash and due from banks-January 1 632,577 450,384
- ------------------------------------------------------------------------------
Cash and due from banks-September 30 $524,887 $512,807
==============================================================================
SUPPLEMENTAL INFORMATION:
Interest paid $234,005 $150,981
Income taxes paid 36,340 39,436
NONCASH ACTIVITIES:
Redemption of convertible subordinated debentures 49,883 --
Loans held for sale transferred to the loan portfolio 24,715 22,772
Loan charge-offs 14,617 13,861
Transfer of loans to other real estate owned 2,133 8,256
Tax benefit of stock options exercised 582 829
Dividends declared not paid 8,123 6,400
Acquisitions:
Securities and short-term investments -- 52,199
Net loans -- 41,601
Premises and equipment 250 2,028
Intangible assets 161 11,249
Other assets, net -- 54
Deposits 4,750 276,636
Equity -- 10,369
==============================================================================
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS
West One Bancorp and Subsidiaries
- ------------------------------------------------------------------------------
These statements are unaudited financial statements and should be read in
conjunction with the 1994 Annual Report of West One Bancorp and Subsidiaries
(West One). All adjustments (consisting only of normal recurring accruals and
the acquisitions as discussed below) which are, in the opinion of management,
necessary to present fairly the consolidated financial position, results of
operations and cash flows have been made in the accompanying financial
statements.
MERGER WITH U. S. BANCORP
- ------------------------
On May 5, 1995, U. S. Bancorp entered into an Agreement and Plan of Merger
(the Merger Agreement) with West One Bancorp, an Idaho corporation (West One),
pursuant to which West One will be merged with and into U. S. Bancorp (the
Merger). As a result of the Merger, each outstanding share of West One's
common stock, par value $1.00 per share (West One Common Stock), will be
converted into 1.47 shares of U. S. Bancorp Common Stock, par value $5.00 per
share (U. S. Bancorp Common Stock). The Merger Agreement was approved by the
shareholders of West One Bancorp and U. S. Bancorp on October 3, 1995. The
Merger is subject to approval by certain regulatory agencies and is expected
to be completed by year-end 1995 as a pooling of interests.
As a condition to entering into the Merger Agreement, on May 6, 1995, U. S.
Bancorp and West One entered into (i) a Stock Option Agreement between West
One, as issuer, and U. S. Bancorp, as grantee (the West One Stock Option
Agreement), pursuant to which West One granted to U. S. Bancorp the right upon
the terms and subject to the conditions set forth therein, to purchase up to
19.9% of the outstanding shares of West One Common Stock at a price of $34.00
per share, and (ii) a Stock Option Agreement between U. S. Bancorp, as issuer,
and West One as grantee (the U. S. Bancorp Stock Option Agreement), pursuant
to which U. S. Bancorp granted to West One the right to purchase up to 19.9%
of the outstanding shares of U. S. Bancorp Common Stock at a price of $28.00
per share.
RECLASSIFICATION
- ----------------
Certain reclassifications of 1994 amounts were made to conform with the 1995
presentation, none of which affects previously reported net income.
SALE OF HELD-TO-MATURITY SECURITIES
- -----------------------------------
In the first nine months of 1995, held-to-maturity securities of four issuers
were sold because downgrades in credit quality caused the securities to fall
below West One's investment policy guidelines. The combined amortized cost of
the securities sold was $3.8 million and a net gain of $50 thousand was
realized on the sales.
ACQUISITIONS
- ------------
West One acquired the financial institutions listed below in transactions
accounted for as poolings of interests. The acquisitions were not material to
West One's financial position, results of operations and cash flows and prior
year financial statements have not been restated.
o November 10, 1994, National Security Bank with assets of $132 million in
exchange for 1,101,832 shares of West One Common Stock.
o September 2, 1994, Valley Commercial Bank, a two-branch $64 million bank
headquartered in Clarkston, Washington, in exchange for 404,523 shares of
West One Bancorp common stock.
o January 21, 1994, Idaho State Bank with assets of $50 million in exchange
for 133,332 shares of West One Bancorp common stock.
On April 15, 1994, West One Bancorp acquired ten Far West Federal Savings Bank
branches in Oregon from the Resolution Trust Corporation. The transaction
included the receipt of $160 million in cash, $2 million of premises and
equipment, $11 million of intangible assets and the assumption of $173 million
of deposits and other liabilities. The transaction was accounted for as a
purchase.
OTHER EVENTS
- ------------
During the third quarter of 1995, West One called and redeemed outstanding
7.75% convertible subordinated debentures due 2006 with $77 million of
treasury stock purchased during the second quarter of 1995.
In May 1995, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) No. 122, "Accounting for Mortgage
Servicing Rights" which becomes effective in 1996. During the first quarter
of 1995, West One implemented SFAS No. 114, "Accounting by Creditors for
Impairment of a Loan," SFAS No. 116, "Accounting for Contributions Received
and Contributions Made" and SFAS No. 118, "Accounting by Creditors for
Impairment of a Loan - Income Recognition and Disclosures." None of these
statements have had or is expected to have a material effect on West One's
financial condition, results of operations, cash flows or related disclosures.
<PAGE>
<TABLE>
<CAPTION>
U. S. BANCORP AND SUBSIDIARIES
PRO FORMA CONDENSED BALANCE SHEET
SEPTEMBER 30, 1995
(IN THOUSANDS)
(UNAUDITED)
PRO FORMA PRO FORMA
U. S. BANCORP WEST ONE ADJUSTMENTS COMBINED
------------- ----------- ----------- --------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks............ $ 1,483,046 $ 524,887 $ 2,007,933
Federal funds sold, security
resell agreements and other
short-term investments............ 182,488 236,216 418,704
Trading account securities......... 172,943 827 173,770
Loans held for sale................ 95,910 48,849 144,759
Securities available for sale, at
fair value (amortized cost:
$1,213,117; $1,163,004; $2,376,121) 1,236,836 1,165,851 2,402,687
Securities held to maturity, at
amortized cost (fair value:
$1,175,196; $614,782; $1,789,978) 1,173,697 602,386 1,776,083
Loans and lease financing, net of
unearned income................... 16,114,898 6,414,963 22,529,861
Allowance for credit losses........ (318,261) (83,094) (401,355)
----------- ---------- --------- -----------
Net loans and lease financing...... 15,796,637 6,331,869 - 22,128,506
Other assets....................... 1,459,279 333,618 1,792,897
----------- ---------- --------- -----------
$21,600,836 $9,244,503 $ - $30,845,339
=========== ========== ========= ===========
LIABILITIES
Deposits:
Noninterest-bearing deposits....... $ 4,071,392 $1,437,361 $ 5,508,753
Interest-bearing deposits.......... 11,468,559 5,639,619 17,108,178
----------- ---------- --------- -----------
Total deposits................ 15,539,951 7,076,980 - 22,616,931
Federal funds purchased and
security repurchase agreements.... 1,862,465 627,013 2,489,478
Commercial paper and other short-
term borrowings................... 652,487 361,565 1,014,052
Long-term debt..................... 821,760 315,887 1,137,647
Other liabilities.................. 772,794 104,176 69,400 (D) 946,370
----------- ---------- --------- -----------
Total liabilities............. 19,649,457 8,485,621 69,400 28,204,478
SHAREHOLDERS' EQUITY
Preferred stock.................... 150,000 - 150,000
Common stock....................... 491,694 36,923 234,313 (B) 762,930
Capital surplus.................... 353,008 290,191 (234,313)(B) 408,886
Retained earnings.................. 943,411 430,087 (69,400)(D) 1,304,098
Net unrealized gain on securities
available for sale, net of tax.... 13,266 1,681 14,947
----------- ---------- --------- -----------
Total shareholders' equity......... 1,951,379 758,882 (69,400) 2,640,861
----------- ---------- --------- -----------
$21,600,836 $9,244,503 $ - $30,845,339
=========== ========== ========= ===========
</TABLE>
See Accompanying Notes to Pro Forma Condensed Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
U. S. BANCORP AND SUBSIDIARIES
PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA PRO FORMA
U. S. BANCORP WEST ONE(A) ADJUSTMENTS COMBINED
------------- ----------- ----------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans, lease financing and loans
held for sale, including fees..... $ 1,121,516 $ 456,639 $ $ 1,578,155
Securities......................... 110,612 77,872 188,484
Trading account securities......... 7,089 170 7,259
Interest-bearing deposits and short-
term investments.................. 6,161 4,801 10,962
----------- ---------- --------- -----------
Total interest income......... 1,245,378 539,482 - 1,784,860
----------- ---------- --------- -----------
INTEREST EXPENSE
Deposits........................... 332,265 189,268 521,533
Short-term borrowings.............. 120,885 35,882 156,767
Long-term debt..................... 45,667 14,575 60,242
----------- ---------- --------- -----------
Total interest expense........ 498,817 239,725 - 738,542
----------- ---------- --------- -----------
NET INTEREST INCOME................ 746,561 299,757 - 1,046,318
Provision for credit losses........ 63,421 9,298 72,719
----------- ---------- --------- -----------
Net interest income after
provision for credit losses...... 683,140 290,459 - 973,599
NONINTEREST REVENUES
Service charges on deposit accounts 112,279 31,286 143,565
Bank card revenue, net............. 45,924 10,398 56,322
Trust and investment management.... 38,586 11,182 49,768
Exchange fees...................... 22,707 8,737 31,444
Mortgage banking income, net....... 5,095 10,905 13,433
Other operating revenue............ 82,395 18,666 101,061
Equity investment income........... 3,270 - 3,270
Securities gains (losses).......... 2,307 (37) 2,270
----------- ---------- --------- -----------
Total noninterest revenues.... 312,563 91,137 - 401,133
----------- ---------- --------- -----------
NONINTEREST EXPENSE
Employee compensation and benefits. 312,151 144,745 454,329
Net occupancy expense.............. 47,800 16,322 64,122
Equipment rentals, depreciation,
and maintenance................... 71,100 16,626 87,726
Regulatory agency fees............. 22,598 8,134 30,732
Other operating expense............ 202,290 64,996 267,286
----------- ---------- --------- -----------
Total noninterest expense..... 655,939 250,823 - 904,195
----------- ---------- --------- -----------
Income before income taxes......... 339,764 130,773 - 470,537
Provision for income taxes......... 122,056 40,885 162,941
----------- ---------- --------- -----------
Net income.................... $ 217,708 $ 89,888 $ - $ 307,596
=========== ========== ========= ===========
Average common shares outstanding:
U. S. Bancorp.................... 98,213
West One
Primary........................ 36,779
Fully diluted.................. 38,860
Pro Forma........................ 151,535
<PAGE>
Earnings per common share:
U. S. Bancorp.................... $2.12
West One
Primary........................ $2.44
Fully diluted.................. 2.35
Pro forma earnings per common share $1.96 (C)
</TABLE>
See Accompanying Notes to Pro Forma Condensed Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
U. S. BANCORP AND SUBSIDIARIES
PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1994
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA PRO FORMA
U. S. BANCORP WEST ONE(A) ADJUSTMENTS COMBINED
------------- ----------- ----------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans, lease financing and loans
held for sale, including fees..... $ 1,283,092 $ 498,241 $ $ 1,781,333
Securities......................... 175,150 88,015 263,165
Trading account securities......... 8,931 93 9,024
Interest-bearing deposits and short-
term investments.................. 12,912 2,907 15,819
----------- ---------- --------- -----------
Total interest income......... 1,480,085 589,256 - 2,069,341
----------- ---------- --------- -----------
INTEREST EXPENSE
Deposits........................... 344,194 179,639 523,833
Short-term borrowings.............. 102,997 32,575 135,572
Long-term debt..................... 70,736 9,147 79,883
----------- ---------- --------- -----------
Total interest expense........ 517,927 221,361 - 739,288
----------- ---------- --------- -----------
NET INTEREST INCOME................ 962,158 367,895 - 1,330,053
Provision for credit losses........ 106,868 13,278 120,146
----------- ---------- --------- -----------
Net interest income after
provision for credit losses...... 855,290 354,617 - 1,209,907
NONINTEREST REVENUES
Service charges on deposit accounts 151,990 39,536 191,526
Bank card revenue, net............. 61,172 11,486 72,658
Trust and investment management.... 51,082 14,201 65,283
Exchange fees...................... 31,545 7,502 39,047
Mortgage banking income, net....... 17,308 9,651 26,959
Credit reporting revenue........... 13,204 - 13,204
Other operating revenue............ 80,511 22,630 103,141
Equity investment income (loss).... (5,429) - (5,429)
Securities gains (losses).......... (8,145) (1,067) (9,212)
Gain on sale of operations and loans 62,883 - 62,883
----------- ---------- --------- -----------
Total noninterest revenues.... 456,121 103,939 - 560,060
NONINTEREST EXPENSE
Employee compensation and benefits. 475,323 171,833 647,156
Net occupancy expense.............. 67,121 20,604 87,725
Equipment rentals, depreciation,
and maintenance................... 107,554 21,942 129,496
Regulatory agency fees............. 39,635 14,887 54,522
Restructure charge................. 100,000 - 100,000
Other operating expense............ 305,682 82,189 387,871
----------- ---------- --------- -----------
Total noninterest expense..... 1,095,315 311,455 - 1,406,770
----------- ---------- --------- -----------
Income before income taxes......... 216,096 147,101 - 363,197
Provision for income taxes......... 64,601 43,930 108,531
----------- ---------- --------- -----------
Net income.................... $ 151,495 $ 103,171 $ - $ 254,666
=========== ========== ========= ===========
Average common shares outstanding:
U. S. Bancorp.................... 99,448
West One
Primary........................ 35,812
Fully diluted.................. 38,497
Pro Forma........................ 151,392
<PAGE>
Earnings per common share:
U. S. Bancorp.................... $1.40
West One
Primary........................ $2.88
Fully diluted.................. 2.74
Pro forma earnings per common share $1.60 (C)
</TABLE>
See Accompanying Notes to Pro Forma Condensed Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
U. S. BANCORP AND SUBSIDIARIES
PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1993
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA PRO FORMA
U. S. BANCORP WEST ONE(A) ADJUSTMENTS COMBINED
------------- ----------- ----------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans, lease financing and loans
held for sale, including fees..... $ 1,212,461 $ 429,660 $ $ 1,642,121
Securities......................... 202,560 93,404 295,964
Trading account securities......... 8,607 107 8,714
Interest-bearing deposits and short-
term investments.................. 10,068 1,264 11,332
----------- ---------- --------- -----------
Total interest income......... 1,433,696 524,435 - 1,958,131
----------- ---------- --------- -----------
INTEREST EXPENSE
Deposits........................... 365,791 160,076 525,867
Short-term borrowings.............. 58,934 25,135 84,069
Long-term debt..................... 80,860 8,224 89,084
----------- ---------- --------- -----------
Total interest expense........ 505,585 193,435 - 699,020
----------- ---------- --------- -----------
NET INTEREST INCOME................ 928,111 331,000 - 1,259,111
Provision for credit losses........ 92,851 13,383 106,234
----------- ---------- --------- -----------
Net interest income after
provision for credit losses...... 835,260 317,617 - 1,152,877
NONINTEREST REVENUES
Service charges on deposit accounts 134,668 36,588 171,256
Bank card revenue, net............. 59,122 9,719 68,841
Trust and investment management.... 48,678 13,627 62,305
Exchange fees...................... 28,051 6,383 34,434
Mortgage banking income, net....... 28,786 8,718 37,504
Credit reporting revenue........... 33,984 - 33,984
Other operating revenue............ 99,389 17,652 117,041
Equity investment income........... 33,973 - 33,973
Securities gains (losses).......... 11 495 506
Gain on sale of mortgage loan
servicing rights.................. 55,846 - 55,846
Gain on sale of operations and loans 9,311 - 9,311
----------- ---------- --------- -----------
Total noninterest revenues.... 531,819 93,182 - 625,001
NONINTEREST EXPENSE
Employee compensation and benefits. 495,224 158,684 653,908
Net occupancy expense.............. 65,931 19,571 85,502
Equipment rentals, depreciation,
and maintenance................... 90,237 21,725 111,962
Regulatory agency fees............. 41,335 13,600 54,935
Other operating expense............ 290,103 76,641 366,744
----------- ---------- --------- -----------
Total noninterest expense..... 982,830 290,221 - 1,273,051
----------- ---------- --------- -----------
Income before income taxes......... 384,249 120,578 - 504,827
Provision for income taxes......... 126,300 37,391 163,691
----------- ---------- --------- -----------
Net income.................... $ 257,949 $ 83,187 $ - $ 341,136
=========== ========== ========= ===========
Average common shares outstanding:
U. S. Bancorp.................... 99,327
West One
Primary........................ 33,292
Fully diluted.................. 35,996
Pro Forma........................ 147,518
<PAGE>
Earnings per common share:
U. S. Bancorp.................... $2.47
West One
Primary........................ $2.50
Fully diluted.................. 2.38
Pro forma earnings per common share $2.23 (C)
</TABLE>
See Accompanying Notes to Pro Forma Condensed Financial Statements.
<PAGE>
<TABLE>
<CAPTION>
U. S. BANCORP AND SUBSIDIARIES
PRO FORMA CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1992
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
PRO FORMA PRO FORMA
U. S. BANCORP WEST ONE(A) ADJUSTMENTS COMBINED
------------- ----------- ----------- --------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans, lease financing and loans
held for sale, including fees..... $ 1,302,003 $ 354,699 $ $ 1,656,702
Securities......................... 163,382 87,220 250,602
Trading account securities......... 9,480 136 9,616
Interest-bearing deposits and short-
term investments.................. 16,609 8,142 24,751
----------- ---------- --------- -----------
Total interest income......... 1,491,474 450,197 - 1,941,671
----------- ---------- --------- -----------
INTEREST EXPENSE
Deposits........................... 448,372 160,138 608,510
Short-term borrowings.............. 89,524 24,906 114,430
Long-term debt..................... 93,220 10,046 103,266
----------- ---------- --------- -----------
Total interest expense........ 631,116 195,090 - 826,206
----------- ---------- --------- -----------
NET INTEREST INCOME................ 860,358 255,107 - 1,115,465
Provision for credit losses........ 134,454 14,308 148,762
----------- ---------- --------- -----------
Net interest income after
provision for credit losses...... 725,904 240,799 - 966,703
NONINTEREST REVENUES
Service charges on deposit accounts 120,102 30,882 150,984
Bank card revenue, net............. 50,163 6,994 57,157
Trust and investment management.... 45,738 11,819 57,557
Exchange fees...................... 24,333 4,543 28,876
Mortgage banking income, net....... 57,970 9,748 67,718
Credit reporting revenue........... 33,315 - 33,315
Other operating revenue............ 86,059 13,899 99,958
Equity investment income........... 12,928 - 12,928
Securities gains (losses).......... 438 1,690 2,128
Gain on sale of mortgage loan
servicing rights.................. 7,467 - 7,467
Gain on sale of loans.............. 4,988 - 4,988
----------- ---------- --------- -----------
Total noninterest revenues.... 443,501 79,575 - 523,076
NONINTEREST EXPENSE
Employee compensation and benefits. 436,633 122,672 559,305
Net occupancy expense.............. 55,709 15,255 70,964
Equipment rentals, depreciation,
and maintenance................... 73,703 17,174 90,877
Regulatory agency fees............. 36,095 11,389 47,484
Other operating expense............ 266,643 62,557 329,200
----------- ---------- --------- -----------
Total noninterest expense..... 868,783 229,047 - 1,097,830
----------- ---------- --------- -----------
Income before income taxes......... 300,622 91,327 - 391,949
Provision for income taxes......... 92,548 27,955 120,503
----------- ---------- --------- -----------
Income before cumulative effect
of accounting changes............. $ 208,074 $ 63,372 $ - $ 271,446
=========== ========== ========= ===========
Average common shares outstanding:
U. S. Bancorp.................... 98,650
West One
Primary........................ 30,343
Fully diluted.................. 33,126
Pro Forma........................ 142,609
<PAGE>
Earnings per common share before
cumulative effect of accounting
changes:
U. S. Bancorp.................... $2.05
West One
Primary........................ $2.09
Fully diluted.................. 1.98
Pro forma earnings per common share $1.87 (C)
</TABLE>
See Accompanying Notes to Pro Forma Condensed Financial Statements.
<PAGE>
NOTES TO PRO FORMA CONDENSED FINANCIAL STATEMENTS
(A) Certain reclassifications have been made to the condensed consolidated
statements of income of West One as discussed below in order to present the
operations of both companies on a consistent basis of accounting for purposes
of the pro forma combined statements (amounts in thousands):
Loan fees and direct loan origination costs in excess of deferred amount are
presented gross as components of interest income, mortgage banking income, and
employee compensation and benefits expense, as follows:
NINE MONTHS FOR THE YEAR ENDED
ENDED DECEMBER 31,
SEPTEMBER 30, -------------------------------
1995 1994 1993 1992
------------- ------- ------- --------
Increase in:
Loan fees..................... $23,748 $26,270 $27,110 $16,409
Mortgage banking income, net.. 2,567 3,051 2,688 2,239
Employee compensation and
benefits.................... 26,315 29,321 29,798 18,648
Bank card revenue and expense and mortgage banking income and expense have
been reclassified from other operating revenue and other operating expense to
bank card revenue, net, and mortgage banking income, net, respectively, in
noninterest revenues as follows:
NINE MONTHS FOR THE YEAR ENDED
ENDED DECEMBER 31,
SEPTEMBER 30, -------------------------------
1995 1994 1993 1992
------------- ------- ------- --------
Increase in:
Bank card revenue, net........ $10,398 $11,486 $9,719 $6,994
Mortgage banking income, net.. 8,338 6,600 6,030 7,509
ATM expenses have been reclassified from other expenses to be shown net with
ATM revenue in other operating revenue as follows:
NINE MONTHS FOR THE YEAR ENDED
ENDED DECEMBER 31,
SEPTEMBER 30, -------------------------------
1995 1994 1993 1992
------------- ------- ------- --------
Decrease in other
operating revenue ........... $1,334 $1,359 $1,214 $648
In the restated financial statements of U. S. Bancorp to be filed with its
Annual Report on Form 10-K for the year ended December 31, 1995, there may be
other reclassifications to conform certain West One reporting or accounting
practices to those of U. S. Bancorp.
(B) Pooling adjustments to reflect the exchange of 54,276,570 shares of U. S.
Bancorp Common Stock for 36,922,837 shares of West One Common Stock
outstanding at September 30, 1995.
(C) Pro forma earnings per share are computed by dividing pro forma net
income less preferred dividends by the historical weighted average number of
shares of U. S. Bancorp Common Stock outstanding for each period, adjusted to
give effect to the new shares assumed to be issued at the beginning of each
period presented. Pro forma earnings per share on a fully diluted basis is
not presented as the dilution is not material.
(D) Reflects merger and integration costs of $69.4 million after-tax
recognized during the fourth quarter of 1995 primarily for employee severance,
payments to retain certain employees through scheduled termination dates, and
costs to eliminate redundant computer systems, administrative functions,
premises, and other equipment, as well as professional fees. Although a
substantial majority of such costs were recognized during 1995, as the
integration process continues, additional merger and integration costs are
expected to be recognized during the first half of 1996.
Management plans to reduce the aggregate number of employees by approximately
1,100 upon completion of the Merger integration. The costs are based upon
average costs for similar programs and actual amounts due upon displacement of
certain employees and include severance benefits, outplacement programs, and
health benefits during the severance period.
Management's review of the two companies' computer systems resulted in the
identification of certain hardware and software that will be retired and/or
sold. Management also intends to reduce the number of branches and offices
maintained in accordance with those plans. Furniture and equipment will be
sold or retired. The costs of reducing the number of branches, offices and
related furniture and equipment have been contemplated in the Merger-related
expense estimate.
Investment adviser fees payable upon consummation of the Merger and accountant
and attorney's professional fees directly attributable to the Merger are being
accrued.
In connection with obtaining required regulatory approvals of the Merger,
U. S. Bancorp agreed to divest certain of the combined companies' branches
with deposits totaling $720 million and loans totaling $460 million in 1996.
The effect of such divestitures on financial statement amounts, revenues,
operating expenses and merger and integration costs have not been reflected in
the pro forma combined financial statements, but the financial impact of such
divestitures is not expected to be material to the business, operations or
financial condition of U. S. Bancorp and its subsidiaries, taken as a whole.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
U. S. Bancorp
(Registrant)
By /s/ Steven P. Erwin
Steven P. Erwin
Executive Vice President and
Chief Financial Officer
Dated: February 5, 1996
<PAGE>
INDEX TO EXHIBITS
2 Agreement and Plan of Merger dated as of May 5, 1995,
between the registrant and West One Bancorp. Incorporated
by reference to Exhibit 2 to the registrant's Quarterly
Report on Form 10-Q for the quarter ended March 31, 1995.
23 Consent of Coopers & Lybrand L.L.P. Incorporated by
reference to Exhibit 23 to the registrant's Current Report
on Form 8-K dated August 30, 1995.
