<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM _________________ TO _________________
Commission File number 0-25033
The Banc Corporation
--------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 63-1201350
---------------------------- --------------------------------
(State or Other Jurisdiction (IRS Employer Identification No.)
of Incorporation)
17 North 20th Street, Birmingham, Alabama 35203
-----------------------------------------------
(Address of Principal Executive Offices)
(205) 326-2265
--------------
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding as of March 31, 2000
- -------------------------------- ------------------------------------
Common stock, $.001 par value 14,385,021
<PAGE> 2
PART I. FINANCIAL INFORMATION.
ITEM 1. FINANCIAL STATEMENTS.
THE BANC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
----------- -----------
(UNAUDITED) (NOTE 1)
<S> <C> <C>
ASSETS
Cash and due from banks....................................................... $ 33,557 $ 31,825
Interest bearing deposits in other banks...................................... 2,486 1,862
Federal funds sold............................................................ 3,155 5,843
Short-term commercial paper................................................... -- 14,484
Investment securities available for sale...................................... 65,050 65,439
Investment securities held-to-maturity........................................ 5,445 5,477
Mortgage loans held for sale.................................................. 1,464 2,127
Loans, net of unearned income................................................. 666,476 632,777
Less: Allowance for loan losses............................................... (8,734) (8,065)
Net loans............................................................. 657,742 624,712
Premises and equipment, net................................................... 39,560 37,734
Accrued interest receivable................................................... 6,990 6,286
Stock in FHLB and Federal Reserve Bank........................................ 4,961 3,461
Other assets.................................................................. 27,952 28,177
--------- ---------
TOTAL ASSETS.......................................................... $ 848,362 $ 827,427
========= =========
Liabilities and Stockholders' Equity
Deposits
Noninterest-bearing........................................................ $ 94,496 $ 83,733
Interest-bearing........................................................... 587,321 598,784
--------- ---------
TOTAL DEPOSITS......................................................... 681,817 682,517
Advances from FHLB............................................................ 77,840 62,500
Other borrowed funds.......................................................... 5,333 295
Note payable.................................................................. 8,934 7,104
Accrued expenses and other liabilities........................................ 4,739 6,163
--------- ---------
TOTAL LIABILITIES..................................................... 778,663 758,579
Stockholders' Equity
Preferred stock, par value $.001 per share; authorized 5,000,000 shares;
shares issued -0-........................................................ -- --
Common stock, par value $.001 per share; authorized 25,000,000 shares;
14,385,021 shares issued and outstanding................................ 14 14
Surplus.................................................................... 47,756 47,756
Retained Earnings.......................................................... 24,184 23,283
Accumulated other comprehensive loss....................................... (2,255) (2,205)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY............................................ 69,699 68,848
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY............................ $ 848,362 $ 827,427
========= =========
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE> 3
THE BANC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)
(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
-------------------------
2000 1999
--------- ---------
<S> <C> <C>
INTEREST INCOME
Interest and fees on loans..................................................... $ 15,201 $ 10,385
Interest on investment securities
Taxable...................................................................... 954 1,006
Exempt from Federal income tax............................................... 191 250
Interest on federal funds sold................................................. 202 219
Interest and dividends on other investments.................................... 101 55
--------- ---------
Total interest income....................................................... 16,649 11,915
INTEREST EXPENSE
Interest on deposits........................................................... 7,256 5,324
Interest on advance from FHLB and other borrowed funds......................... 1,028 285
--------- ---------
Total interest expense....................................................... 8,284 5,609
--------- ---------
NET INTEREST INCOME.................................................... 8,365 6,306
Provision for loan losses...................................................... 888 244
--------- ---------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES....................... 7,477 6,062
Noninterest income............................................................. 1,647 1,433
Loss on sale of securities..................................................... -- (20)
--------- ---------
TOTAL NONINTEREST INCOME................................................... 1,647 1,413
--------- ---------
NONINTEREST EXPENSES
Salaries and employee benefits................................................. 3,796 3,223
Occupancy, furniture and equipment expense..................................... 1,440 1,184
Merger related expenses........................................................ -- 69
Other operating expenses....................................................... 2,615 2,019
--------- ---------
TOTAL NONINTEREST EXPENSES................................................. 7,851 6,495
--------- ---------
Income before income taxes............................................. 1,273 980
INCOME TAX EXPENSE............................................................. 371 168
--------- ---------
NET INCOME............................................................. $ 902 $ 812
========= =========
BASIC AND DILUTED NET INCOME PER SHARE......................................... $ 0.06 $ 0.06
========= =========
AVERAGE COMMON SHARES OUTSTANDING.............................................. 14,385 14,253
AVERAGE COMMON SHARES OUTSTANDING, ASSUMING DILUTION........................... 14,388 14,301
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE> 4
THE BANC CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31
-------------------------------
2000 1999
-------- --------
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES .................................. $ 2,033 $ 566
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net increase in interest bearing deposits in other banks ................ (624) (527)
Net decrease in federal funds sold ...................................... 2,688 12,854
Net decrease in short-term investments .................................. 14,499 --
Proceeds from sales of securities available for sale .................... -- 10,393
Proceeds from maturities of investment securities available for sale .... 1,523 11,248
Purchases of investment securities available for sale ................... (1,483) (6,013)
Proceeds from maturities of investment securities held to maturity ...... 30 121
Net increase in loans ................................................... (33,679) (38,589)
Purchases of premises and equipment ..................................... (3,263) (2,290)
Other investing activities .............................................. (1,500) (26)
-------- --------
Net cash used by investing activities ............................ (21,809) (12,829)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in deposit accounts ............................. (700) 12,714
Net increase (decrease) in FHLB advance and other borrowings ............ 20,378 (1,283)
Proceeds from note payable .............................................. 1,830 --
Proceeds from issuance of common stock .................................. -- 1,941
-------- --------
Net cash provided by financing activities ........................ 21,508 13,372
-------- --------
Net increase in cash and due from banks .................................... 1,732 1,109
Cash and due from banks at beginning of period ............................. 31,825 31,307
-------- --------
CASH AND DUE FROM BANKS AT END OF PERIOD ................................... $ 33,557 $ 32,416
======== ========
</TABLE>
See Notes to Condensed Consolidated Financial Statements.
<PAGE> 5
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the instructions for Form 10-Q, and,
therefore, do not include all information and footnotes necessary for a fair
presentation of financial position, results of operations and cash flows in
conformity with generally accepted accounting principles. For a summary of
significant accounting policies that have been consistently followed, see Note
1 to the Consolidated Financial Statements included in Form 10-K for the year
ended December 31, 1999. It is management's opinion that all adjustments,
consisting of only normal and recurring items necessary for a fair
presentation, have been included. Operating results for the three-month period
ended March 31, 2000, are not necessarily indicative of the results that may be
expected for the year ending December 31, 2000.
The statement of financial condition at December 31, 1999, has been derived
from the audited financial statements at that date but does not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements.
Prior period financial information has been restated for business combinations
with C&L Banking Corporation ("C&L") and C&L Bank of Blountstown
("Blountstown"), which were consummated in the second quarter of 1999. These
business combinations were accounted for as poolings of interests.
Additionally, Blountstown was immediately merged into C&L's subsidiary C&L Bank
of Bristol.
NOTE 2 - BUSINESS COMBINATIONS
On June 30, 1999, the Corporation issued 1,289,454 shares of common stock in
exchange for all of the outstanding common stock of C&L, headquartered in
Bristol, Florida. This transaction, accounted for as a pooling of interests,
added approximately $49 million in assets.
On June 30, 1999, the Corporation issued 838,902 shares of common stock in
exchange for all of the outstanding common stock of Blountstown, headquartered
in Blountstown, Florida. This transaction, accounted for as a pooling of
interests, added approximately $56 million in assets.
As explained in Note 1, the Corporation restated prior period financial
information for the C&L and Blountstown transactions, which were closed in the
second quarter of 1999.
<PAGE> 6
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NOTE 2 - BUSINESS COMBINATIONS - CONTINUED
The following table presents financial information as reported by the
Corporation, C&L, Blountstown and on a combined basis for the three months
ended March 31, 1999.
<TABLE>
<S> <C>
Net interest income:
Corporation $ 5,265
C&L 556
Blountstown 485
------------
Combined $ 6,306
============
Net income:
Corporation $ 504
C&L 181
Blountstown 127
------------
Combined $ 812
=============
Net income per equivalent share of Corporation:
Corporation $ .04
C&L .14
Blountstown .15
Combined .06
</TABLE>
On July 13, 1999, the Corporation acquired BankersTrust of Alabama, Inc.
("BankersTrust") in a business combination accounted for as a purchase.
BankersTrust was a one-bank holding company operating in north Alabama. The
total cost of the acquisition was $1,624,000, which exceeded the fair value of
the net assets of BankersTrust by $5,125,000. The excess is being amortized on
a straight-line basis over 15 years. The Corporation's condensed consolidated
financial statements include the results of operations of BankersTrust only
from July 13, 1999, its date of acquisition. The following unaudited summary
information presents the consolidated results of operations of the Corporation
on a pro forma basis, as if BankersTrust had been acquired on January 1, 1999.
The pro forma summary does not necessarily reflect the results of operations
that would have occurred if the acquisition had occurred as of the beginning of
the period presented, or of results that may occur in the future.
<PAGE> 7
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NOTE 2 - BUSINESS COMBINATIONS - CONTINUED
<TABLE>
<CAPTION>
For the Three Months
Ended
March 31, 1999
--------------------
<S> <C>
Interest income $12,651
Interest expense 6,040
-------
Net interest income 6,611
Provision for loan losses 551
Noninterest income 1,532
Noninterest expense 7,034
-------
Income before income taxes 558
Income tax expense 137
-------
Net income $ 421
=======
Basic and diluted net income per share $ 0.03
=======
</TABLE>
NOTE 3 - SEGMENT REPORTING
The Corporation has two reportable segments, the Alabama Region and the Florida
Region. The Alabama Region consists of operations located throughout the state
of Alabama. The Florida Region consists of operations located in the panhandle
region of Florida. The Corporation's reportable segments are managed as
separate business units because they are located in different geographic areas.
Both segments derive revenues from the delivery of financial services. These
services include commercial loans, mortgage loans, consumer loans, deposit
accounts and other financial services.
The Corporation evaluates performance and allocates resources based on profit
or loss from operations. There are no material intersegment sales or transfers.
Net interest revenue is used as the basis for performance evaluation rather
than its components, total interest revenue and total interest expense. The
accounting policies used by each reportable segment are the same as those
discussed in Note 1 to the Consolidated Financial Statements included in the
Form 10-K for the year ended December 31, 1999. All costs have been allocated
to the reportable segments. Therefore, combined amounts agree to the
consolidated totals.
<PAGE> 8
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NOTE 3 - SEGMENT REPORTING - CONTINUED
<TABLE>
<CAPTION>
Alabama Florida
Region Region Combined
---------- -------- ----------
<S> <C> <C> <C>
Three months ended March 31, 2000
Net interest income $ 5,651 $ 2,714 $ 8,365
Provision for loan losses 604 284 888
Noninterest income 1,302 345 1,647
Noninterest expense 6,238 1,613 7,851
Income tax (benefit) expense (35) 406 371
Net income 146 756 902
Total assets 592,974 255,388 848,362
Three months ended March 31, 1999
Net interest income $ 4,610 $ 1,696 $ 6,306
Provision for loan losses 122 122 244
Noninterest income 647 766 1,413
Noninterest expense 4,838 1,657 6,495
Income tax (benefit) expense (65) 233 168
Net income 362 450 812
Total assets 444,589 197,427 642,016
</TABLE>
<PAGE> 9
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED
NOTE 4 - NET INCOME PER SHARE
The following table sets forth the computation of basic and diluted net income
per common share (in thousands, except per share amounts):
<TABLE>
<CAPTION>
Three Months Ended
March 31
---------------------
2000 1999
--------- ---------
<S> <C> <C>
Numerator:
For basic and diluted, net income $ 902 $ 812
========= =========
Denominator:
For basic, weighted average common shares
outstanding 14,385 14,253
Effect of dilutive stock options 3 48
--------- ---------
Average diluted common shares outstanding 14,388 14,301
========= =========
Basic and diluted net income per share $ .06 $ .06
========= =========
</TABLE>
NOTE 5 - COMPREHENSIVE INCOME (LOSS)
Total comprehensive income (loss) was $852,000 and $(508,000) for the
three-month periods ended March 31, 2000 and 1999, respectively. Total
comprehensive income consists of net income and the unrealized gain or loss on
the Corporation's available for sale securities portfolio arising during the
period.
NOTE 6 - INCOME TAXES
The primary difference between the effective tax rate and the federal statutory
rate in 2000 and 1999 is due to the recognition of rehabilitation tax credits
generated from the restoration of the Corporation's headquarters, the John A.
Hand Building.
NOTE 7 - STOCKHOLDERS' EQUITY
During 1999, the Corporation received approximately $2,170,000 in proceeds,
before associated costs of $229,000, from the issuance of common stock, of
which, $636,000 was received from 134,000 shares issued upon the exercise of
stock options. The remaining proceeds were received from the sale of 150,000
shares of common stock issued to satisfy the exercise of the underwriter's
overallotment option in connection with the Corporation's underwritten public
offering, which closed on January 10, 1999.
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
Financial Condition
Total assets of the Corporation were $848.4 million at March 31, 2000, an
increase of $20.9 million from December 31, 1999. At March 31, 2000, total
stockholders' equity was $69.7 million, an increase of $851,000 from December
31, 1999. The increase in total assets was due to the growth of the loan
portfolio, which was funded by the maturity of short-term commercial paper and
an increase in borrowings from the Federal Home Loan Bank ("FHLB") and federal
funds purchased. The increase in stockholders' equity resulted from earnings
for the quarter.
Short-term liquid assets (cash and due from banks, interest-bearing deposits
due, short-term commercial paper and federal funds sold) and investment
securities decreased $15.2 million to $109.7 million at March 31, 2000, from
$124.9 million at December 31, 1999. On March 31, 2000, these assets comprised
12.9% of total assets compared with 15.1% at December 31, 1999.
Loans, net of unearned income, totaled $666.5 million at March 31, 2000, an
increase of $33.7 million from $632.8 million at December 31, 1999. Loans, net
of unearned income, comprised 78.6% of total assets at March 31, 2000, as
compared with 76.5% at December 31, 1999.
Deposits totaled $681.8 million at March 31, 2000, a decrease of $700,000 from
$682.5 million at December 31, 1999. The decrease is primarily in interest
bearing deposits which decreased $11.5 million, while noninterest-bearing
demand deposits increased $10.8 million.
Advances from the Federal Home Loan Bank ("FHLB") and other borrowed funds,
which consist primarily of federal funds purchased, increased $15.3 million and
$5.0 million, respectively, to $77.8 million and $5.3 million at March 31,
2000, from December 31, 1999. These increases in borrowings were used to fund
the growth in the loan portfolio.
Results of Operations
Net income was $902,000 for the three-month period ended March 31, 2000,
compared with $812,000, for the same period in 1999. The increase in net income
was primarily due to an increase in net interest income offset by an increase
in the provision for loan losses and noninterest expenses.
Net interest income increased $2.1 million, or 32.7%, to $8.4 million for the
three-month period ended March 31, 2000 compared to $6.3 million for the first
three months of 1999, primarily due to a higher level of loans funded by the
maturity of short-term commercial paper, increases in borrowings from the FHLB
and federal funds purchased.
Noninterest income increased $234,000, or 16.6%, to $1.6 million for the
three-month period ended March 31, 2000 compared to $1.4 million for the first
three months of 1999, primarily due to enhanced service charge income resulting
from an increase in the volume of deposits, and an increase in earnings related
to the cash surrender value of single premium life insurance policies.
<PAGE> 11
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations-Continued
Results of Operations - Continued
Noninterest expense increased $1.4 million, or 20.9%, to $7.9 million for the
three-month period ended March 31, 2000 compared to $6.5 million for the first
three months of 1999. Salaries and benefits increased $573,000, or 17.8%, to
$3.8 million from $3.2 million for the first three months of 1999. The increase
in salaries and benefits primarily resulted from the acquisition of new banks
and branches, and the addition of personnel in the administrative and
operations area.
All other noninterest expenses increased $783,000, or 23.9%, to $4.1 million,
for the three-month period ended March 31, 2000 compared to $3.3 million for
the first three months of 1999. This increase in other expenses included a
$256,000 increase in occupancy, furniture and equipment expenses, a $142,000
increase in goodwill amortization and $167,000 in foreclosure losses. Occupancy
expenses increased during 2000 as a result of increased depreciation and
maintenance related to the John A. Hand Building and The Bank's operations
center. The increase in goodwill amortization relates to purchase acquisitions
closed in the third and fourth quarters of 1999. The foreclosure losses
represent writedowns, or losses incurred on sales, of properties acquired in
foreclosure from a single commercial account.
Income tax expense was $371,000 for the three-month period ended March 31,
2000, compared to $168,000 for the same period in 1999. The primary difference
in the effective rate and the federal statutory rate (34%) is due to the
recognition of a rehabilitation tax credit generated from the restoration of
the Corporation's headquarters, the John A. Hand Building.
Provision for Loan Losses
The provision for loan losses was $888,000 for the three-month period ended
March 31, 2000 compared to $244,000 for the same period in 1999. The provision
for loan losses represents the amount determined by management necessary to
maintain the allowance for loan losses at a level capable of absorbing inherent
losses in the loan portfolio, plus estimated losses associated with off-balance
sheet credit instruments such as letters of credit and unfunded lines of
credit. The allowance for loan losses at March 31, 2000, totaled $8.7 million,
or 1.31% of total loans, compared to $8.1 million, or 1.27% of total loans at
December 31, 1999. The Corporation prepares an analysis to assess the risk in
the loan portfolio and to determine the adequacy of the allowance for loan
losses. Generally, the Corporation estimates the allowance using factors such
as historical loss experience based on volume and types of loans, volume and
trends in delinquencies and non-accruals, national and local economic
conditions and other pertinent information.
The Corporation manages and controls risk in the loan portfolio through
adherence to credit standards established by the Board of Directors and
implemented by senior management. These standards are set forth in a formal
loan policy, which establishes loan underwriting/approval procedure, sets
limits on credit concentration and enforces regulatory requirements.
Loan portfolio concentration risk is reduced through concentration limits for
borrowers and collateral types and through geographical diversification.
Concentration risk is measured and reported to senior management and the Board
of Directors on a regular basis.
<PAGE> 12
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations-Continued
Provision for Allowance for Loan Losses - continued
A risk rating system is employed whereby each loan is assigned a rating which
corresponds to the perceived credit risk. Risk ratings are subject to
independent review by the Corporation's Loan Review Department, which also
performs ongoing, independent review of the risk management process that
includes underwriting, documentation and collateral control. Regular reports
are made to senior management and the Board of Directors regarding credit
quality as measured by assigned risk ratings and other measures, including, but
not limited to, the level of past due percentages and nonperforming assets.
The loan review function is centralized and independent of the lending
function. Review results are reported to the Audit Committee of the Board of
Directors as well as to the Corporation's independent auditors.
Liquidity
The Corporation's principal sources of funds are deposits, principal and
interest payments on loans, federal funds sold and maturities and sales of
investment securities. In addition to these sources of liquidity, the
Corporation has access to purchased funds from several regional financial
institutions and may borrow from a regional financial institution under a line
of credit, and from the Federal Home Loan Bank under a blanket floating lien on
certain residential real estate loans. While scheduled loan repayments and
maturing investments are relatively predictable, interest rates, general
economic conditions and competition primarily influence deposit flows and early
loan payments. The management of the Corporation places constant emphasis on
the maintenance of adequate liquidity to meet conditions that might reasonably
be expected to occur.
Forward-Looking Statements
Statements contained in this Quarterly Report on Form 10-Q, which are not
historical facts, are forward-looking statements. In addition, the Corporation,
through its senior management, from time to time makes forward-looking public
statements concerning its expected future operations and performance and other
developments. Such forward-looking statements are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Additionally, such forward-looking statements are based on the Corporation's
belief as well as certain assumptions made by, and information currently
available to, the Corporation with respect to its ability to achieve the
operating results it expects relating to the recently-completed acquisitions;
one-time costs associated with the recently-completed acquisitions; the ability
of the Corporation to achieve anticipated cost savings and revenue enhancements
with respect to the acquired operations; the assimilation of the acquired
operations by the Corporation, including installing the Corporation's
centralized policy oversight, credit review and management systems at the
acquired institutions; the absence of material contingencies related to the
acquired operations; the adequacy of the allowance for loan losses; the effect
of legal proceedings on the Corporation's financial condition, results of
operations and liquidity; and market risk disclosures, as well as other
information. The risks and uncertainties that may affect operations,
performance, growth projections and the results of the Corporation's business
include, but are not limited to, fluctuations in the economy, the relative
strength and weakness in the commercial and consumer sector and in the real
estate market, the actions taken by the Federal Reserve Board for the purpose
of managing the economy, interest rate movements, the impact of competitive
products, services and pricing, timely development by the Corporation of
technology enhancements for its products and operating systems, legislation and
similar matters. Although management of
<PAGE> 13
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations-Continued
Forward-Looking Statements - continued
the Corporation believes that the expectations reflected in such
forward-looking statements are reasonable, it can give no assurance that such
expectations will prove to be correct. Prospective investors are cautioned that
any such forward-looking statements are not guaranties of future performance,
and involve risks and uncertainties, and that actual results may differ
materially from those contemplated by such forward-looking statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK.
The information set forth under the caption "Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations-Market
Risk-Interest Sensitivity" included in the Corporation's Annual Report on Form
10-K for the year ended December 31, 1999, is hereby incorporated herein by
reference.
<PAGE> 14
PART II. OTHER INFORMATION.
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
Exhibit 10 - Employment Agreement, dated as of January 1, 2000,
by and between The Banc Corporation and David R. Carter.
Exhibit 27 - Financial Data Schedule (SEC use only).
(b) Reports on Form 8-K:
None.
SIGNATURES
Pursuant with 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.
The Banc Corporation
(Registrant)
Date: May 12, 2000 By: /s/ James A. Taylor, Jr.
---------------------------------------------
James A. Taylor, Jr.
Executive Vice President, General Counsel and
Secretary
Date: May 12, 2000 By: /s/ David R. Carter
---------------------------------------------
David R. Carter
Executive Vice President and Chief Financial
Officer (Principal Accounting Officer)
<PAGE> 1
EXHIBIT 10
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (this "Agreement") is made by and between The
Banc Corporation (the "Company"), and DAVID R. CARTER, an individual resident of
Alabama (the "Executive"), as of the 1st day of January, 2000.
1. Employment. The Company hereby employs the Executive as Chief
Financial Officer and Executive Vice President of the Company and as Chief
Financial Officer and Executive Vice President of The Bank, a wholly owned
subsidiary of the Company, and any other position agreed upon by the parties;
the Company agrees to use its best efforts to cause Executive to be elected as a
member of the Company's Board of Directors; and Executive hereby agrees to serve
the Company (and the Bank) in the foregoing capacities, upon the terms and
conditions set forth herein. The Executive shall have such authority and
responsibilities consistent with his position that may be set forth in the
Company's bylaws or assigned by the Company's Board from time to time. The
Executive shall devote his business time, attention, skill and efforts to the
performance of his duties hereunder. The Executive may devote reasonable periods
of time to serve as a director or advisor to other organizations, to charitable
and community activities and to managing his personal investments, provided that
such activities do not materially interfere with the performance of his duties
hereunder and are not in conflict or competitive with, or adverse to, the
interests of the Company.
2. Term. Unless earlier terminated as provided herein, the
Executive's employment under this Agreement shall be for a term (the "Term") of
three years which term shall be reviewed at least annually by the Company's
Board (or its compensation committee) for extension of the Term for an
additional one-year period.
<PAGE> 2
3. Compensation and Benefits.
(a) Executive shall receive a base salary of $[162,000] per annum.
The base salary shall be paid monthly. The Company's Board (or its compensation
committee) shall review the Executive's salary at least annually and may
increase the Executive's base salary if it determines in its sole discretion
that an increase is appropriate. The Company or The Bank shall also pay to the
Executive Directors' fees for serving on the various Boards of Directors of the
Company, The Bank or any branches of The Bank or any other subsidiaries of the
Company or The Bank. In addition, the Company's Board of Directors shall
annually consider the Executive's performance and determine if a bonus is
appropriate.
(b) The Executive shall participate in all retirement, welfare,
deferred compensation, life and health insurance and other benefit plans or
programs of the Company now or hereafter applicable to the Executive or
applicable generally to employees of the Company or to a class of employees that
includes senior executives of the Company. In any period during the Term that
the Executive is subject to a Disability, and during the 180-day period of
physical or mental infirmity leading up to the Executive's Disability, the
amount of the Executive's compensation provided under this Section 3 shall be
reduced by the sum of the amounts, if any, paid to the Executive for the same
period under any disability benefit or pension plan of the Company or any of its
subsidiaries.
(c) The Company shall provide to the Executive an automobile owned
or leased by the Company of a make and model appropriate to the Executive's
status or, in lieu thereof, shall provide the Executive with an annual allowance
of not less than $15,000 to partially cover the cost of the business use of an
automobile owned or leased by the Executive.
2
<PAGE> 3
(d) The Company shall reimburse the Executive's reasonable
expenses for initiation fees, dues and capital assessments for athletic, country
and dining club memberships currently held by the Executive; provided, however,
that if the Executive during the term of his employment with the Company ceases
his membership in any such clubs and any bonds or other capital payments made by
the Company are repaid to the Executive, the Executive shall pay over such
payments to the Company.
(e) The Company shall reimburse the Executive for travel, seminar
and other expenses related to the Executive's duties which are incurred and
accounted for in accordance with the historic practices of the Company.
(f) Executive shall be entitled to three weeks of paid vacation
per year.
4. Termination.
(a) The Executive's employment under this Agreement may be
terminated prior to the end of the Term only as follows:
(i) upon the death of the Executive;
(ii) by the Company due to the Disability of the Executive
upon delivery of a Notice of Termination to the Executive;
(iii) by the Company for Cause upon delivery of a Notice of
Termination to the Executive; and
(iv) by the Executive for Good Reason upon delivery of a
Notice of Termination to the Company after any occurrence of a Change
in Control or in the event of a Constructive Termination.
3
<PAGE> 4
(b) If the Executive's employment with the Company shall be
terminated during the Term (i) by reason of the Executive's death, or (ii) by
the Company for Disability or Cause, the Company shall pay to the Executive (or
in the case of his death, the Executive's estate) within fifteen days after the
Termination Date a lump sum cash payment equal to the Accrued Compensation and,
if such termination is other than by the Company for Cause, the Pro Rata Bonus.
(c) If the Executive's employment with the Company shall be
terminated by the Company in violation of this Agreement, by the Executive for
Good Reason, or in the event of a Constructive Termination in addition to other
rights and remedies available in law or equity, the Executive shall be entitled
to the following:
(i) the Company shall pay the Executive in cash within
fifteen days of the Termination Date an amount equal to all Accrued
Compensation and the Pro Rata Bonus;
(ii) the Company shall pay to the Executive in cash at the
end of each of the thirty-six consecutive 30-day periods following the
Termination Date an amount equal to one-twelfth of the sum of the Base
Amount (including any increases in base salary) plus the Bonus Amount
(including any increases in bonus amount) plus all benefits provided in
Section 3 and all Director's fees, including retainers, to which the
Executive would be entitled for the same period, or within 30 days, at
the Executive's option, a lump sum equal to the present value of the
payments due under this paragraph (c)(ii); provided, however, that such
lump sum amount shall be reduced to its net present value assuming an
interest rate equal to
4
<PAGE> 5
six percent (6%) and 36 equal monthly payments commencing on the
Termination Date;
(iii) for the period from the Termination Date through the
date that Executive attains the age of 75 (the "Continuation Period"),
the Company shall at its expense continue on behalf of the Executive
and his dependents and beneficiaries the life insurance, disability,
medical, dental and hospitalization benefits provided (x) in the case
of a Change in Control, to the Executive at any time during the 90-day
period prior to the Change in Control or at any time thereafter or (y)
in other instances, to other similarly situated executives who continue
in the employ of the Company during the Continuation Period. The
coverage and benefits (including deductibles and costs) provided in
this Section 4(c)(iii) during the Continuation Period shall be no less
favorable to the Executive and his dependents and beneficiaries than
the most favorable of such coverages and benefits during either of the
periods referred to in clauses (x) and (y) above; provided, however,
the Company's obligation hereunder with respect to the foregoing
benefits shall be limited to the extent that the Executive obtains any
such benefits pursuant to a subsequent employer's benefit plans, in
which case the Company may reduce the coverage of any benefits it is
required to provide the Executive hereunder as long as the aggregate
coverages and benefits of the combined benefit plans are no less
favorable to the Executive than the coverages and benefits required to
be provided hereunder; provided, further, subject to the last sentence
of this Section 4(c), life insurance shall not be continued longer than
three years after the Termination Date, even if
5
<PAGE> 6
the Executive has not obtained such other benefits under another
employer's benefit plan;
(iv) the restrictions on any incentive awards whether now
in effect for, or hereafter granted to, the Executive under any stock
option plan or under any other incentive plan, deferred compensation
plan, agreement or arrangement of the Company or any of its affiliates
shall lapse and such incentive awards shall become 100% accrued and
vested, so that, for example, all stock options and stock appreciation
rights granted to the Executive shall be immediately exercisable and
shall be 100% vested and any deferred compensation payable under any
plan, agreement or arrangement shall accrue in total and be immediately
due and payable in full. The period in which Executive may exercise any
option granted shall be the full term of such option; and
(v) any retirement benefits or rights, whether now in
effect for, or hereafter granted to, the Executive under any retirement
plan or arrangement, shall vest immediately.
This Section 4(c) shall not be interpreted so as to limit any benefits to which
the Executive or his dependents or beneficiaries may be entitled under any of
the Company's employee benefit plans, programs or practices following the
Executive's termination of employment, including, without limitation, retiree
medical and life insurance benefits.
(d) The Executive shall not be required to mitigate the amount of
any payment provided for in this Agreement by seeking other employment or
otherwise, and no such payment shall be
6
<PAGE> 7
offset or reduced by the amount of any compensation or benefits provided to the
Executive in any subsequent employment except as provided in Section 4(c)(iii).
(e) In the event that any payment or benefit (within the meaning
of Section 280 G(b)(2) of the Internal Revenue Code of 1986, as amended (the
"Code")) to the Executive (or for his benefit) paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise in connection
with, or arising out of, his relationship with the Company or a change in
ownership or effective control of the Company or of a substantial portion of its
assets (a "Payment" or "Payments"), would be subject to the excise tax imposed
by Section 4999 of the Code or any interest or penalties are incurred by the
Executive with respect to any such excise or other taxes (such excise tax,
together with any such interest and penalties, are hereinafter collectively
referred to as the "Excise Tax" and any other tax together with any such
interest and penalties are herein referred to as "Other Taxes"), then the
Executive will be entitled to receive an additional payment (a "Gross-Up
Payment") in an amount such that after payment by the Executive of all Excise
Taxes and Other Taxes on the Payments and all Excise Taxes or Other Taxes
imposed upon the Gross-Up Payment, the Executive shall retain that portion of
the Gross-Up Payment equal to the Excise Tax or Other Taxes imposed upon the
Payments.
(f) The severance pay and benefits provided for in this Section 4
shall be in lieu of any other severance or termination pay to which the
Executive may be entitled under any Company severance or termination plan,
program, practice or arrangement, and the Executive's entitlement to any other
compensation or benefits shall be determined in accordance with the Company's
employee benefit plans and other applicable programs, policies and practices
then in effect.
7
<PAGE> 8
5. Trade Secrets. The Executive shall not, at any time, either
during the Term of his employment or after the Termination Date, if such
Termination is for Cause, use or disclose any Trade Secrets of the Company,
except in fulfillment of his duties as the Executive during his employment, for
so long as the pertinent information or data remain Trade Secrets, whether or
not the Trade Secrets are in written or tangible form.
6. Successors; Binding Agreement.
(a) This Agreement shall be binding upon and shall inure to the
benefit of the Company, its Successors and Assigns, and the Company shall
require any Successors and Assigns to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no succession or assignment had taken place.
(b) Neither this Agreement nor any right or interest hereunder
shall be assignable or transferable by the Executive, his beneficiaries or legal
representatives, except by will or by the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal personal representative.
7. Fees and Expenses. The Company shall pay all legal fees and
related expenses incurred by the Executive as they become due as a result of (a)
the Executive's termination of employment and (b) the Executive's seeking to
obtain or enforce any right or benefit provided by this Agreement; provided,
however, that the circumstances set forth in clauses (a) and (b) occurred on or
after a Change in Control.
8. Notice. All notices and other communications provided for in
the Agreement (including the Notice of Termination) shall be in writing and
shall be deemed to have been duly given upon personal delivery or receipt when
sent by certified mail, return receipt requested,
8
<PAGE> 9
postage prepaid, or a nationally recognized overnight courier service that
provides written proof of delivery, addressed to the respective addresses last
given by each party to the other, provided, however, that all notices to the
Company shall be directed to the attention of the Board of Directors with a copy
to the Chief Executive Officer of the Company.
9. Settlement of Claims. The Company's obligation to make the
payments provided for in this Agreement and to otherwise perform its obligations
hereunder shall not be affected by any circumstances, including, without
limitation, any set-off, counterclaim, recoupment, defense or other right which
the Company may have against the Executive or others. The Company may, however,
withhold from any benefits payable under this Agreement all federal, state, city
or other taxes as shall be required pursuant to any law or governmental
regulation or ruling,
10. Modification and Waiver. No provisions of this Agreement may
be modified, waived or discharged unless such waiver, modification or discharge
is agreed to in writing and signed by the Executive and the Company. No waiver
by any party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time.
11. Governing Law. This Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of Delaware
without giving effect to the conflict of laws principles thereof.
12. Severability. The provisions of this Agreement shall be deemed
severable, and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.
9
<PAGE> 10
13. Entire Agreement. This Agreement constitutes the entire
agreement between the parties hereto and supersedes all prior agreements, if
any, understandings and arrangements, oral or written, between the parties
hereto with respect to the subject matter hereof.
14. Headings. The headings of Sections herein are included solely
for convenience of reference and shall not control the meaning or interpretation
of any of the provisions of this Agreement.
15. Counterparts. This Agreement may be executed in one or more
counterparts, each shall be deemed an original but all of which together shall
constitute one and the same instrument.
16. Definitions. For purposes of this Agreement, the following
terms shall have the following meanings:
(a) "Accrued Compensation" shall mean an amount which shall
include all amounts earned or accrued through the Termination Date but not paid
as of the Termination Date including without limitation, (i) base salary, (ii)
deferred compensation accumulated under any plan, arrangement or agreement,
(iii) reimbursement for reasonable and necessary expenses incurred by the
Executive on behalf of the Company prior to the Termination Date, and (iv)
bonuses and incentive compensation, including stock options (other than the Pro
Rata Bonus).
(b) "Base Amount" shall mean the greater of the Executive's annual
base salary (i) at the rate in effect on the Termination Date or (ii) at the
highest rate in effect at any time during the 90-day period prior to a Change in
Control, and shall include all amounts of his base salary that are deferred
under any plans, arrangements or agreements of the Company or any of its
affiliates.
(c) "Bonus Amount" shall mean the greater of (i) the most recent
annual bonus paid or payable to the Executive, or, if greater, the annual bonus
paid or payable for the year ended
10
<PAGE> 11
prior to the fiscal year during which a Change in Control occurred, or (ii) the
average of the annual bonuses paid or payable during the three full fiscal years
ended prior to the Termination Date or, if greater, the three full fiscal years
ended prior to a Change in Control (or, in each case, such lesser period for
which annual bonuses were paid or payable to the Executive).
(d) The termination of the Executive's employment shall be for
"Cause" if it is a result of:
(i) any act that (A) constitutes, on the part of the
Executive, fraud, dishonesty gross malfeasance of duty or (B) is
demonstrably likely to lead to material injury to the Company or
resulted or was intended to result in direct or indirect gain to or
personal enrichment of the Executive; or
(ii) the conviction (from which no appeal may be or is
timely taken) of the Executive of a felony; or
(iii) the suspension or removal of the Executive by federal
or state banking regulatory authorities acting under lawful authority
pursuant to provisions of federal or state law or regulation which may
be in effect from time to time; or
(iv) any past or present action which may have occurred
during or prior to the Executive's employment which resulted or results
in any judgment, consent decrees, or penalties from any court, federal
or state authority or otherwise, or which is required to be disclosed
to any regulatory authority;
provided, however, that in the case of clause (i) above, such conduct shall not
constitute Cause:
(x) unless (A) there shall have been delivered to the
Executive a written notice setting forth with specificity the reasons
that the Board believes the Executive's
11
<PAGE> 12
conduct meets the criteria set forth in clause (i), (B) the Executive
shall have been provided the opportunity to be heard in person by the
Board (with the assistance of the Executive's counsel if the Executive
so desires), and (C) after such hearing, the termination is evidenced
by a resolution adopted in good faith by two-thirds of the members of
the Board (other than the Executive); or
(y) if such conduct (A) was believed by the Executive in
good faith to have been in or not opposed to the interests of the
Company, and (B) was not intended to and did not result in the direct
or indirect gain to or personal enrichment of the Executive.
(e) A "Change in Control" shall mean the occurrence during the
Term of any of the following events:
(i) An acquisition (other than directly from the Company)
of any voting securities of the Company (the "Voting Securities") by
any "Person" (as the term person is used for purposes of Section 13(d)
or 14(d) of the Securities Exchange Act of 1934 (the "1934 Act"))
immediately after which such Person has "Beneficial Ownership" (within
the meaning of Rule 13d-3 promulgated under the 1934 Act) of 20% or
more of the combined voting power of the Company's then outstanding
Voting Securities; provided, however, that in determining whether a
Change in Control has occurred, Voting Securities which are acquired in
a "Non-Control Acquisition" (as hereinafter defined) shall not
constitute an acquisition which would cause a Change in Control. A
"Non-Control Acquisition" shall mean an acquisition by (A) an employee
benefit plan (or a trust forming a part thereof)
12
<PAGE> 13
maintained by (x) the Company or (y) any corporation or other Person of
which a majority of its voting power or its equity securities or equity
interest is owned directly or indirectly by the Company (a
"Subsidiary"), (B) the Company or any 80% owned subsidiary, or (C) any
Person in connection with a "Non-Control Transaction" (as hereinafter
defined);
(ii) The individuals who, as of the date of this
Agreement, are members of the Board (the "Incumbent Board") cease for
any reason to constitute at least two-thirds of the Board; provided,
however, that if the election, or nomination for election by the
Company's stockholders, of any new director was approved by a vote of
at least two-thirds of the Incumbent Board, such new director shall,
for purposes of this Agreement, be considered as a member of the
Incumbent Board; provided, further, that no individual shall be
considered a member of the Incumbent Board if such individual initially
assumed office as a result of either an actual or threatened "Election
Contest" (as described in Rule 14a-11 promulgated under the 1934 Act)
or other actual or threatened solicitation of proxies or consents by or
on behalf of a Person other than the Board (a "Proxy Contest")
including by reason of any agreement intended to avoid or settle any
Election Contest or Proxy Contest; or
(iii) Approval by stockholders of the Company of:
(A) A merger, consolidation or reorganization
involving the Company, unless
13
<PAGE> 14
(1) the stockholders of the Company,
immediately before such merger, consolidation or
reorganization, own, directly or indirectly,
immediately following such merger, consolidation or
reorganization, at least two-thirds of the combined
voting power of the outstanding voting securities of
the corporation resulting from such in substantially
the same proportion as their ownership of the Voting
Securities immediately before such merger,
consolidation or reorganization, and
(2) the individuals who were members of
the Incumbent Board immediately prior to the
execution of the agreement providing for such merger,
consolidation or reorganization constitute at least
two-thirds of the members of the board of directors
of the Surviving Corporation.
(A transaction described in the immediately preceding clause
(1) and (2) shall herein be referred to as a "Non-Control
Transaction.")
(B) A complete liquidation or dissolution of the
Company; or
(C) An agreement for the sale or other
disposition of all or substantially all of the assets of the
Company to any Person.
(iv) Notwithstanding anything contained in this Agreement
to the contrary, if the Executive's employment is terminated prior to a
Change in Control and the Executive reasonably demonstrates that such
termination (A) was at the request of a third party who has indicated
an intention or taken steps reasonably
14
<PAGE> 15
calculated to effect a Change in Control and who effectuates a Change
in Control (a "Third Party") or (B) otherwise occurred in connection
with, or in anticipation of, a Change in Control which actually occurs,
then for all purposes of this Agreement, the date of a Change in
Control with respect to the Executive shall mean the date immediately
prior to the date of such termination of the Executive's employment.
(f) Constructive Termination" shall mean Executive's voluntary
Termination of Service within ninety (90) days following the occurrence of one
or more of the following events, except if such event is approved in writing by
Executive prior to its occurrence:
(i) A material breach of this Agreement by the Company
that is not remedied within thirty (30) business days after receiving
written notification by Executive of such failure; or
(ii) A material reduction in Executive's title or
responsibilities unless replaced with a new title or new
responsibilities of comparable stature or value to the Company within
thirty (30) business days.
(g) "Disability" shall mean a physical or mental infirmity which
impairs the Executive's ability to substantially perform his duties with the
Company for a period of 180 consecutive days, as determined by an independent
physician selected with the approval of both the Company and the Executive which
shall not be unreasonably withheld.
(h) "Effective Date" shall mean the day and year first above
written.
(i) "Good Reason" shall mean the occurrence after a Change in
Control of any of the events or conditions described in subsections (i) through
(viii) hereof:
15
<PAGE> 16
(i) a change in the Executive's status, title, position
or responsibilities (including reporting responsibilities) which, in
the Executive's reasonable judgment, represents an a material adverse
change from his status, office, title, position or responsibilities as
in effect at any time within 90 days preceding the date of a Change in
Control or at any time thereafter; the assignment to the Executive of
any duties or responsibilities which, in the Executive's reasonable
judgment, are inconsistent with his status, office, title, position or
responsibilities as in effect at any time within 90 days preceding the
date of a Change in Control or at any time thereafter; any removal of
the Executive from, or failure to reappoint or reelect him to, any such
status, office, title, position or responsibility; or any other change
in condition or circumstances that in the Executive's reasonable
judgment makes it materially more difficult for the Executive to carry
out the duties and responsibilities of his office that existed at any
time within 90 days preceding the date of a Change in Control or at any
time thereafter;
(ii) a reduction in the Executive's base salary or any
failure to pay the Executive any compensation or benefits to which he
is entitled within five days of the date due;
(iii) the Company's requiring the Executive to be based at
any place outside a 30-mile radius from the executive offices occupied
by the Executive immediately prior to a Change in Control, except for
reasonably required travel on the Company's business which is not
materially greater than such travel requirements prior to the Change in
Control;
16
<PAGE> 17
(iv) the failure by the Company to (A) continue in effect
(without reduction in benefit level and/or reward opportunities) any
material compensation or employee benefit plan in which the Executive
was participating at any time within ninety days preceding the date of
a Change in Control or at any time thereafter, unless such plan is
replaced with a plan that provides substantially equivalent
compensation or benefits to the Executive or (B) provide the Executive
with compensation and benefits, in the aggregate, at least equal (in
terms of benefit levels and/or reward opportunities) to those provided
for under each other employee benefit plan, program and practice in
which the Executive was participating at any time within 90 days
preceding the date of a Change in Control or at any time thereafter;
(v) the insolvency, or the filing by any person or
entity, including the Company, of a petition for bankruptcy of the
Company, or other relief under any other moratorium or similar law,
which petition is not dismissed within 60 days;
(vi) any material breach by the Company of this Agreement;
(vii) any purported termination of the Executive's
employment for Cause by the Company which does not comply with the
terms of this Agreement; or
(viii) the failure of the Company to obtain an agreement,
satisfactory to the Executive, from any Successors and Assigns to
assume and agree to perform this Agreement, required by Section 6(a)
hereof.
Any event or condition described in clause (i) through (viii) above which occurs
prior to a Change in Control but which the Executive reasonably demonstrates (A)
was at the request of a Third Party, or (B) otherwise arose in connection with,
or in anticipation of, a Change in Control which
17
<PAGE> 18
actually occurs, shall constitute Good Reason for purposes of this Agreement,
notwithstanding that it occurred prior to the Change in Control. The Executive's
right to terminate his employment for Good Reason shall not be affected by his
incapacity due to physical or mental illness.
(j) "Notice of Termination" shall mean a written notice of
termination from the Company or the Executive which specifies an effective date
of termination, indicates the specific termination provision in this Agreement
relied upon, and sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment.
(k) "Pro Rata Bonus" shall mean an amount equal to the Bonus
Amount multiplied by a fraction the numerator of which is the number of days in
the applicable year through the Termination Date and the denominator of which is
365.
(l) "Successors and Assigns" shall mean a corporation or other
entity acquiring all or substantially all the assets and business of the Company
(including this Agreement), whether by operation of law or otherwise.
(m) "Termination Date" shall mean, in the case of the Executive's
death, his date of death, and in all other cases, the date specified in the
Notice of Termination.
(n) "Trade Secrets" shall mean any information, including but not
limited to technical or non-technical data, a formula, a pattern, a compilation,
a program, a device, a method, a technique, a drawing, a process, financial
data, financial plans, product plans, information on customers, or a list of
actual or potential customers or suppliers, which: (i) derives economic value,
actual or potential, from not being generally known to, and not being readily
ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use, and (ii) is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.
18
<PAGE> 19
IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed and its seal to be affixed hereunto by its officers thereunto duly
authorized, and the Executive has signed and sealed this Agreement, effective as
of the date first above written.
THE BANC CORPORATION
By: /s/ James A. Taylor
----------------------------
Its: Chairman
------------------------
ATTEST:
/s/ James A. Taylor, Jr.
- -------------------------------------
James A. Taylor, Jr.
--------------------
Corporate Secretary
(CORPORATE SEAL)
EXECUTIVE:
/s/ David R. Carter (L.S.)
----------------------------
David R. Carter
19
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF BANC CORPORATION FOR THE THREE MONTHS ENDED MARCH 31,
2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
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<INT-BEARING-DEPOSITS> 2,486
<FED-FUNDS-SOLD> 3,155
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 65,050
<INVESTMENTS-CARRYING> 5,445
<INVESTMENTS-MARKET> 5,382
<LOANS> 666,476
<ALLOWANCE> 8,734
<TOTAL-ASSETS> 848,362
<DEPOSITS> 681,817
<SHORT-TERM> 5,333
<LIABILITIES-OTHER> 4,739
<LONG-TERM> 77,840
0
0
<COMMON> 14
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<TOTAL-LIABILITIES-AND-EQUITY> 848,362
<INTEREST-LOAN> 15,201
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<INTEREST-TOTAL> 16,649
<INTEREST-DEPOSIT> 7,256
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