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Previous: GT GLOBAL FLOATING RATE FUND INC, N-2, 1997-10-06 |
Next: HARBOR FLORIDA BANCORP INC, S-1, 1997-10-06 |
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
Date of Report (Date of earliest event reported):
August 18, 1997
Fidelity Bankshares, Inc.
- -----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-29040 65-0717085
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(State or other (Commission File No.) (I.R.S. Employer
jurisdiction of Identification No.)
incorporation)
Registrant's telephone number, including area code:
(561) 659-6600
Not Applicable
(Former name or former address, if changed since last report)
<PAGE>
Item 2. Acquisition or Disposition of Assets.
On August 18, 1997, Fidelity Bankshares, Inc. (the
"Registrant"), and its wholly owned stock savings bank
subsidiary, Fidelity Federal Savings Bank of Florida ("Fidelity")
entered into an Agreement and Plan of Merger (the "Agreement")
with BankBoynton, a Federal Savings Bank ("BankBoynton"), which
provides, among other things, for the (i) acquisition of
BankBoynton by Fidelity, and (ii) the payment of $9.00 per share
for each share of BankBoynton Common Stock issued and outstanding
(the "Acquisition"). It is expected that the total purchase
price will be approximately $9.0 million. Under the Agreement
Fidelity will receive a fee of $150,000, should the Agreement be
terminated under certain circumstances.
On August 22, 1997, the Registrant filed a Current Report on
Form 8-K for the purpose of reporting the entering into of the
Agreement by the Registrant. This amendment is being filed to
include pro forma financial information not previously available.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
The financial statements and pro forma information required
to be filed by this Item are included as Exhibit 99 hereto.
The following Exhibits are filed as part of this report:
Exhibit 99 Pro Forma Financial Information
<PAGE>
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.
FIDELITY BANKSHARES, INC.
DATE: October 2, 1997 By: /s/ Richard A. Aldred
------------------------------
Executive Vice President and
Principal Financial Officer
<PAGE>
EXHIBIT 99
PRO FORMA FINANCIAL INFORMATION
<PAGE>
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
- -----------------------------------------------------------------
GENERAL
On August 18, 1997, Fidelity Bankshares, Inc. ("Company")
and its wholly-owned subsidiary, Fidelity Federal Savings Bank of
Florida ("Bank") announced that it had reached a definitive
agreement to acquire BankBoynton. The agreement to acquire
BankBoynton is structured on a purchase accounting basis and
provides that the company will acquire all the outstanding common
stock of BankBoynton for $9.00 per share in cash, for a total
purchase price of approximately $5.6 million.
BASIS OF PRESENTATION OF UNAUDITED PRO FORMA STATEMENTS
The basis of presentation is that of a purchase accounting
acquisition using, for balance sheet purposes, the Company's and
BankBoynton's June 30, 1997, balance sheets. It has been
assumed, for purposes of presentation, that the cost basis of
BankBoynton's assets and liabilities approximate their market
value and, accordingly, the entire excess of the purchase price
over BankBoynton's book value has been treated as goodwill.
For purposes of income statement presentation, the income
statements of the Company and BankBoynton, for the year ended
December 31, 1996 and six months ended June 30, 1997 have been
combined. There are three adjustments to the combined financial
statements. The first adjustment reflects expected borrowing
expenses to finance the acquisition of $364,000 and $182,000 for
the year ended December 31, 1996 and six months ended June 30,
1997, respectively. The second adjustment presents estimated
amortization of goodwill of $124,000 and $62,000 for the same
periods. Income taxes reflect the addition of such expenses,
assuming the goodwill will not be tax deductible.
During the year ended December 31, 1996, the Company
incurred a special assessment of $3.6 million in Federal deposit
insurance premiums as its share of the SAIF recapitalization.
Similarly, BankBoynton incurred a one-time charge of $284,000.
The combined financial statements do not reflect that the
Company expects to close all of BankBoynton's offices and
transfer their accounts to existing Fidelity offices nearby.
<PAGE>
FIDELITY BANKSHARES, INC. AND BANKBOYNTON, A FEDERAL SAVINGS BANK
PROFORMA BALANCE SHEETS
JUNE 30, 1997
(Unaudited)
<TABLE>
Proforma
Fidelity Consolidated
Bankshares, Inc. BankBoynton Adjustments (Unaudited)
(In Thousands)
<S> <C> <C> <C> <C>
ASSETS
CASH AND CASH EQUIVALENTS:
Cash and amounts due from depository institutions $ 17,741 $ 1,985 $ $ 19,726
Interest-bearing deposits 20,801 - 20,801
--------- --------- --------- ----------
Total cash and cash equivalents 38,542 1,985 - 40,527
ASSETS AVAILABLE FOR SALE (At Fair Value):
Government and agency securities 13,050 - 13,050
Mortgage-backed securities 172,153 - 172,153
--------- --------- --------- ----------
Total assets available for sale 185,203 - - 172,153
SECURITIES HELD TO MATURITY - 1,207 1,207
LOANS RECEIVABLE, Net 735,699 53,281 788,980
OFFICE PROPERTIES AND EQUIPMENT, Net 19,016 35 19,051
FEDERAL HOME LOAN BANK STOCK, At cost,
which approximates market 6,659 524 7,183
REAL ESTATE OWNED, Net 546 80 626
ACCRUED INTEREST RECEIVABLE 5,491 339 5,830
OTHER ASSETS 8,133 180 1,859 10,172
--------- --------- --------- ----------
TOTAL ASSETS $ 999,289 $ 57,631 $ 1,859 $1,058,779
--------- --------- --------- ----------
--------- --------- --------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
DEPOSITS $ 779,558 $ 46,290 $ 825,848
REPURCHASE AGREEMENTS 2,736 - 2,736
ADVANCES FROM FEDERAL HOME LOAN BANK 111,304 6,300 5,600 123,204
ESOP LOAN 942 - 942
ADVANCES BY BORROWERS FOR TAXES AND INSURANCE 9,139 811 9,950
DRAFTS PAYABLE 3,315 376 3,691
OTHER LIABILITIES 7,567 113 7,680
DEFERRED INCOME TAXES 1,049 - 1,049
--------- --------- --------- ----------
TOTAL LIABILITIES 915,610 53,890 5,600 975,100
--------- --------- --------- ----------
STOCKHOLDERS' EQUITY
PREFERRED STOCK - - -
COMMON STOCK 677 2,345 (2,345) 677
ADDITIONAL PAID IN CAPITAL 37,717 976 (976) 37,717
RETAINED EARNINGS - substantially restricted 45,641 420 (420) 45,641
COMMON STOCK PURCHASED BY EMPLOYEE
STOCK OWNERSHIP PLAN (1,151) - (1,151)
NET UNREALIZED INCREASE IN FAIR VALUE OF
ASSETS AVAILABLE FOR SALE (Net of applicable
income taxes) 795 - 795
--------- --------- --------- ----------
TOTAL STOCKHOLDERS' EQUITY 83,679 3,741 (3,741) 83,679
--------- --------- --------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 999,289 $ 57,631 $ 1,859 $1,058,779
--------- --------- --------- ----------
--------- --------- --------- ----------
</TABLE>
<PAGE>
FIDELITY BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
- -----------------------------------------------------------------
<TABLE>
Unaudited
For the Six Months Ended
June 30, 1997
Fidelity Proforma
Bankshares, Inc. BankBoynton Adjustments Consolidated
(In Thousands)
<S> <C> <C> <C> <C>
Interest income:
Loans $ 27,541 $ 2,235 $ 29,776
Investment securities 351 77 428
Other investments 954 37 991
Mortgage-backed securities 4,868 - 4,868
--------- --------- --------- ---------
Total interest income 33,714 2,349 - 36,063
--------- --------- --------- ---------
Interest expense:
Deposits 15,892 1,135 17,027
Borrowings 2,974 113 182 3,269
--------- --------- --------- ---------
Total interest expense 18,866 1,248 182 20,296
--------- --------- --------- ---------
Net interest income 14,848 1,101 (182) 15,767
Provision for loan losses 72 50 122
--------- --------- --------- ---------
Net interest income after provision for loan losses 14,776 1,051 (182) 15,645
--------- --------- --------- ---------
Other income:
Servicing income and other fees 1,663 133 1,796
Gain on sale of securities 12 - 12
Miscellaneous 230 (62) 168
--------- --------- --------- ---------
Total other income 1,905 71 - 1,976
--------- --------- --------- ---------
Operating expense:
Employee compensation and benefits 6,816 361 7,177
Occupancy and equipment 2,385 195 2,580
Loss (gain) on real estate owned 51 (35) 16
Marketing 348 - 348
Federal deposit insurance premium 221 17 238
Other 2,187 217 62 2,466
--------- --------- --------- ---------
Total operating expense 12,008 755 62 12,825
--------- --------- --------- ---------
Income before taxes 4,673 367 (244) 4,796
--------- --------- --------- ---------
Income taxes 1,974 94 (73) 1,995
--------- --------- --------- ---------
Net income $ 2,699 $ 273 $ (171) $ 2,801
--------- --------- --------- ---------
--------- --------- --------- ---------
Earnings per share:
Primary $ 0.40 $ 0.41
--------- ---------
--------- ---------
Full Diluted $ 0.40 $ 0.41
--------- ---------
--------- ---------
Dividends declared per share of common stock $ 0.40 $ 0.40
--------- ---------
--------- ---------
</TABLE>
<PAGE>
FIDELITY BANKSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
- -----------------------------------------------------------------
<TABLE>
Unaudited
For the Six Months Ended
December 31, 1996
Fidelity Proforma
Bankshares, Inc. BankBoynton Adjustments Consolidated
(In Thousands)
<S> <C> <C> <C> <C>
Interest income:
Loans $ 47,997 $ 4,291 $ 52,288
Investment securities 804 90 894
Other investments 1,490 103 1,593
Mortgage-backed securities 9,949 - 9,949
--------- --------- --------- ---------
Total interest income 60,240 4,484 - 64,724
--------- --------- --------- ---------
Interest expense:
Deposits 26,239 2,276 28,515
Borrowings 5,892 111 364 6,367
--------- --------- --------- ---------
Total interest expense 32,131 2,387 364 34,882
--------- --------- --------- ---------
Net interest income 28,109 2,097 (364) 29,842
Provision for loan losses 164 337 501
--------- --------- --------- ---------
Net interest income after provision for loan losses 27,945 1,760 (364) 29,341
--------- --------- --------- ---------
Other income:
Servicing income and other fees 3,201 300 3,501
Gain on sale of securities 1,215 9 1,224
Miscellaneous 460 33 493
--------- --------- --------- ---------
Total other income 4,876 342 - 5,218
--------- --------- --------- ---------
Operating expense:
Employee compensation and benefits 12,776 779 13,555
Occupancy and equipment 4,648 451 5,099
Loss (gain) on real estate owned (69) 18 (51)
Marketing 604 3 607
Federal deposit insurance premium 4,958 414 5,372
Other 3,792 447 124 4,363
--------- --------- --------- ---------
Total operating expense 26,709 2,112 124 28,945
--------- --------- --------- ---------
Income (loss) before taxes 6,112 (10) (488) 5,614
--------- --------- --------- ---------
Income taxes 2,562 45 (146) 2,461
--------- --------- --------- ---------
Net income (loss) $ 3,550 $ (55) $ (342) $ 3,153
--------- --------- --------- ---------
Earnings per share:
Primary $ 0.53 $ 0.47
--------- ---------
--------- ---------
Full Diluted $ 0.53 $ 0.47
--------- ---------
--------- ---------
Dividends declared per share of common stock $ 0.70 $ 0.70
--------- ---------
--------- ---------
</TABLE>
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