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Previous: MARKWEST HYDROCARBON INC, SC 13G, 1999-02-12 |
Next: JANUS AMERICAN GROUP INC, SC 13G/A, 1999-02-12 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------------
FORM 8-K/A
AMENDMENT NO. 1
TO FORM 8-K FILED DECEMBER 15, 1998
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934
Date of report (Date of earliest event reported): November 30, 1998
Appalachian Bancshares, Inc.
--------------------------------------------------
(Exact name of Registrant as Specified in Charter)
<TABLE>
<S> <C> <C>
Georgia 000-21383 58-2242407
- ------------------------------------ ------------------------------ ------------------------------
(State or other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
829 Industrial Blvd., Ellijay, Georgia 30540
- ------------------------------------------------------------------- ----------------------
(Address of Principal Executive Offices) (Zip Code)
</TABLE>
706/276-8000
----------------------------------------------------
(Registrant's telephone number, including area code)
Not applicable
-------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(B) PRO FORMA FINANCIAL INFORMATION.
The unaudited pro forma financial information relating to the
acquisition of First National Bank of Union County by Appalachian Bancshares,
Inc. is included herein.
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
APPALACHIAN BANCSHARES, INC.
Date: February 11, 1999 /s/ Kent W. Sanford
--------------------------------------------
Kent W. Sanford
Executive Vice President
(Principal financial officer)
<PAGE> 4
PRO FORMA STATEMENT OF CONDITION - CONSOLIDATED
APPALACHIAN BANCSHARES, INC.
SEPTEMBER 30, 1998
The following unaudited pro forma consolidated statement of condition sets
forth the historical September 30, 1998 assets, liabilities and
stockholders' equity of Appalachian Bancshares, Inc. ("ABI") and First
National Bank of Union County ("FNB") and the Pro Forma consolidated
balances assuming consummation of the acquisition as of September 30, 1998.
The acquisition is recorded using the purchase method of accounting for
assets acquired and liabilities assumed.
<TABLE>
<CAPTION>
ABI Pro Forma
Consolidated FNB Consolidated
Balance Balance Balance
Sheet Sheet Adjustments(6) Sheet
----- ----- -------------- -----
(In Thousands)
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks 4,015 6,657 (1) 2,863 13,801
(2) 2,600
(3) 3,696
(4) (6,100)
(5) 70
Investment securities 24,176 4,143 28,319
Federal funds sold 7,257 5,900 13,157
Loans, net 93,413 26,814 (3) (3,696) 116,531
Premises and equipment, net 1,966 1,939 3,905
Intangibles
Organizational cost (5 yr amort.) 0
Goodwill (15 yr amort.) (4) 2,105 2,105
Other assets 2,117 1,377 3,494
------- ------ ------ -------
Total Assets 132,944 46,830 1,538 181,312
======= ====== ====== =======
LIABILITIES AND EQUITY
Total deposits 113,887 42,194 156,081
Long-term debt 6,599 0 (2) 2,600 9,199
Other borrowed funds 3,809 0 3,809
Other liabilities 742 615 1,357
Common stock of ABI 5,988 (1) 716 6,704
Common stock of FNB 938 (4) (938) 0
Capital surplus of ABI 202 (1) 2,147 2,349
Capital surplus of FNB 1,062 (4) (1,062) 0
Retained earnings of ABI 2,025 (5) 70 2,095
Retained earnings of FNB 1,995 (4) (1,995) 0
Treasury stock (428) (428)
Accumulated comprehensive income 120 26 146
------- ------ ------- -------
Total Liabilities and Equity 132,944 46,830 1,538 181,312
======= ====== ======= =======
</TABLE>
See notes to Pro Forma Consolidated Statement of Condition
<PAGE> 5
NOTES TO PRO FORMA CONSOLIDATED STATEMENT OF CONDITION
APPALACHIAN BANCSHARES, INC.
SEPTEMBER 30, 1998
(1) Issuance of 143,168 shares of Common Stock at $20 per share in a
private placement to maintain adequate capital and generate funds to
effectuate the purchase of FNB.
(2) Borrowings of $2,600,000 to effectuate the purchase of FNB.
(3) Adjustment to FNB amounts for loans retained by seller.
(4) Purchase of all the outstanding stock of FNB for a total price of
$6,100,000. Excess over book value treated as goodwill.
(5) Payment of estimated acquisition costs of $70,000.
(6) No purchase accounting adjustments have been reflected in this pro
forma statement of condition. Any purchase accounting adjustments which
might arise as of the date of the merger are not expected to be
material.
<PAGE> 6
PRO FORMA STATEMENT OF INCOME - CONSOLIDATED
APPALACHIAN BANCSHARES, INC.
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
The following unaudited pro forma consolidated statement of income sets
forth the historical income and expenses of Appalachian Bancshares,
Inc. ("ABI") and First National Bank of Union County ("FNB") for the
nine months ended September 30, 1998 and the pro forma consolidated
balances assuming consummation of the acquisition as of September 30,
1998.
<TABLE>
<CAPTION>
ABI Pro Forma
Consolidated FNB Consolidated
Statement Statement Statement
of of of
Income Income Adjustments(5) Income
------ ------ -------------- ------
(In thousands except per share data)
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans 6,765 2,313 9,078
Interest on investment securities 1,037 234 1,271
Interest on federal funds sold 151 189 340
Interest on deposits in banks 0 106 106
--------- ----- ---------
Total Interest Income 7,953 2,842 10,795
--------- ----- ---------
INTEREST EXPENSE
Interest on deposits 4,241 1,468 5,709
Interest on short-term borrowings 137 8
Interest on long-term borrowings 288 0 (1) 137 425
--------- ----- ---------
Total Interest Expense 4,666 1,476 6,134
--------- ----- ---------
NET INTEREST INCOME 3,287 1,366 4,661
PROVISION FOR LOAN LOSSES 240 31 271
--------- ----- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,047 1,335 4,390
NONINTEREST INCOME
Service charges on deposits 166 130 296
Investment security gains 16 3 19
Other 195 125 320
--------- ----- ---------
Total Noninterest Income 377 258 635
--------- ----- ---------
NONINTEREST EXPENSE
Salaries and employee benefits 1,038 579 1,617
Occupancy and equipment expense 234 180 414
Other 913 624 (2) 70 1,607
--------- ----- ---------
Total Noninterest Expense 2,185 1,383 3,638
--------- ----- ---------
INCOME BEFORE INCOME TAXES 1,239 210 1,387
PROVISION FOR INCOME TAXES 400 50 (3) (55) 395
--------- ----- ---------
NET INCOME 839 160 992
========= ===== =========
EARNINGS PER SHARE
(Pro Forma column amounts adjusted to reflect
the issuance of 143,168 Common Shares to effect
the acquisition)
Basic Earnings Per Common Share 0.73 0.77
Basic Weighted Average Shares Outstanding 1,150,050 (4) 1,293,218
Earnings Per Common Share Assuming Dilution 0.70 0.74
Weighted Average Shares Outstanding Assuming Dilution 1,194,275 (4) 1,337,443
</TABLE>
See notes to Pro Forma Consolidated Statement of Income
<PAGE> 7
NOTES TO PRO FORMA CONSOLIDATED STATEMENT OF INCOME
APPALACHIAN BANCSHARES, INC.
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
(1) Estimated interest expense for nine months on borrowings of $2,600,000
to effectuate the purchase of FNB.
(2) Payment of estimated acquisition costs of $70,000.
(3) Estimated tax benefit related to interest expense on additional
borrowings.
(4) Average shares outstanding increased by 143,168 to reflect additional
Common Shares sold to effectuate the acquisition.
(5) Any purchase accounting adjustments which might arise as of the date of
the merger are not expected to be material.
<PAGE> 8
PRO FORMA STATEMENT OF INCOME - CONSOLIDATED
APPALACHIAN BANCSHARES, INC.
For The Year Ended December 31, 1997
The following unaudited pro forma consolidated statement of income sets
forth the historical income and expenses of Applachian Bancshares, Inc.
("ABI") and First National Bank of Union County ("FNB") for the year ended
December 31, 1997 and the pro forma consolidated balances assuming
consummation of the acquisition as of December 31, 1997.
<TABLE>
<CAPTION>
ABI Pro Forma
Consolidated FNB Consolidated
Statement Statement Statement
of of of
Income Income Adjustments(5) Income
------ ------ -------------- ------
(In thousands except per share data)
<S> <C> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans 7,652 3,637 11,289
Interest on investment securities 1,331 434 1,765
Interest on federal funds sold 160 88 248
Interest on deposits in banks 0 1 1
------- ----- ---------
Total Interest Income 9,143 4,160 13,303
------- ----- ---------
INTEREST EXPENSE
Interest on deposits 4,911 2,000 6,911
Interest on short-term borrowings 201 2 203
Interest on long-term borrowings 150 0 (1) 182 332
------- ----- ---------
Total Interest Expense 5,262 2,002 7,446
------- ----- ---------
NET INTEREST INCOME 3,881 2,158 5,857
PROVISION FOR LOAN LOSSES 480 953 1,433
------- ----- ---------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,401 1,205 4,424
NONINTEREST INCOME
Service charges on deposits 197 233 430
Investment security gains 6 0 6
Other 182 128 310
------- ----- ---------
Total Noninterest Income 385 361 746
------- ----- ---------
NONINTEREST EXPENSE
Salaries and employee benefits 1,154 796 1,950
Occupancy and equipment expense 248 271 519
Investment security losses 6 0
Other 977 787 (2) 70 1,834
------- ----- ---------
Total Noninterest Expense 2,385 1,854 4,303
------- ----- ---------
INCOME BEFORE INCOME TAXES 1,401 (288) 867
PROVISION FOR INCOME TAXES 383 (149)(3) (73) 161
------- ----- ---------
NET INCOME 1,018 (139) 706
======= ===== =========
EARNINGS PER SHARE
(Pro Forma column amounts adjusted to reflect the issuance of
143,168 Common Shares to effect the acquisition)
Basic Earnings Per Common Share 0.88 0.54
Basic Weighted Average Shares Outstanding 1,154,990 (4) 1,298,158
Earnings Per Common Share Assuming Dilution 0.87 0.54
Weighted Average Shares Outstanding Assuming Dilution 1,162,206 (4) 1,305,374
</TABLE>
See notes to Pro Forma Consolidated Statement of Income
<PAGE> 9
NOTES TO PRO FORMA CONSOLIDATED STATEMENT OF INCOME
APPALACHIAN BANCSHARES, INC.
FOR THE YEAR ENDED DECEMBER 31, 1997
(1) Estimated interest expense on borrowings of $2,600,000 to effectuate
the purchase of FNB.
(2) Payment of estimated acquisition costs of $70,000.
(3) Estimated tax benefit related to interest expense on additional
borrowings.
(4) Average shares outstanding increased by 143,168 to reflect additional
Common Shares sold to effectuate the acquisition.
(5) Any purchase accounting adjustments which might arise as of the date of
the merger are not expected to be material.
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