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): February 13, 1998
(February 2, 1998)
FIRST BANKS AMERICA, INC.
-------------------------
(Exact name of registrant as specified in its charter)
Delaware
--------
(State or other jurisdiction of incorporation)
0-8937 75-1604965
------ ----------
(Commissioner File Number) (IRS Employer Identification No.)
135 N. Meramec, Clayton, Missouri 63105
---------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 854-4600
Not Applicable
--------------
(Former name or former address, if changed since last report)
<PAGE>
Item 2. Acquisition or Disposition of Assets
Pursuant to the Agreement and Plan of Merger (Agreement), on February 2,
1998, First Banks America, Inc. (FBA) and First Commercial Bancorp, Inc. (FCB)
were merged. Under the terms of the Agreement, FCB was merged into FBA, and
FCB's wholly owned subsidiary, First Commercial Bank, was merged into First Bank
of California, an indirect subsidiary bank of FBA. The FCB shareholders will
receive .8888 shares of FBA common stock for each share of FCB common stock that
they hold. In total, FCB shareholders will receive approximately 752,000 shares
of FBA common stock. Cash will be paid in lieu of issuing any fractional shares.
The transaction also provides for First Banks, Inc. (First Banks) to receive
804,000 shares of FBA common stock in exchange for $10.0 million of FBA's note
payable to First Banks and for the exchange of FCB convertible debentures of
$6.5 million, which are owned by First Banks, for comparable debentures of FBA.
FCB has six banking offices located in Sacramento, Roseville (2), San
Francisco, Concord and Campbell, California. At December 31, 1997, FCB had total
assets of $191.6 million, and net income of $764,000 for the year then ended.
First Banks owns a majority interest in both FBA and FCB. Consistent with
the accounting treatment for companies under common control, the merger will be
accounted for by FBA as follows:
(1) First Banks' interest in FCB will be accounted for by FBA at First
Banks' historical cost. First Banks' historical cost basis in FCB
was determined under the purchase method of accounting, effective
upon First Banks' acquisition of First Commercial on August 23,
1995. Accordingly, the consolidated financial statements of First
Banks include the financial, position and results of operations
for the periods subsequent to the acquisition date, and the assets
acquired and liabilities assumed were recorded at fair value at
the acquisition date.
Effective with the merger, because the two entities are under the
common control of First Banks, the consolidated financial
statements of FBA will be restated to reflect First Banks'
interest in the financial condition and results of operations of
FCB for the periods subsequent to August 23, 1995.
(2) The amount attributable to the interests of the minority
shareholders in the fair value of the net assets of FCB will be
accounted for by FBA under the purchase method of accounting
Therefore, such amount will be reflected by FBA at fair value, as
determined by the market value of FBA common stock exchanged for
that minority interest pursuant to the Agreement.
<PAGE>
Item 7. Financial Statements and Exhibits
(a) Financial Statements of Business Acquired
Pursuant to the requirements of Article 3 of Regulation S-X, the
following consolidated financial statements for First Commercial Bancorp, Inc.
have been incorporated herein by reference as noted:
1. Audited Consolidated Financial Statements as of and for the years
ended December 31, 1996 and 1995 incorporated herein by reference
to First Commercial Bancorp, Inc.'s report on Form 10-K
Commission File No. 0-9477) for the year ended December 31, 1996.
In addition, the registrant has included herewith the following unaudited
financial information for First Commercial Bancorp, Inc.:
1. Consolidated Balance Sheets as of December 31, 1997 (unaudited)
and December 31, 1996 - filed herewith.
2. Consolidated Statements of Operations for the years ended December
31, 1997 (unaudited), 1996 and 1995 - filed herewith.
3. Consolidated Statements of Changes in Stockholders' Equity for the
years ended December 31, 1997 (unaudited), 1996 and 1995 - filed
herewith.
4. Consolidated Statements of Cash Flows for the years ended December
31, 1997 (unaudited), 1996 and 1995 - filed herewith.
(b) Pro Forma Financial Information
1. Pro Forma Combined Condensed Balance Sheet as of September 30,
1997(unaudited) - incorporated herein by reference to Amendment
No. 2 to the Registration Statement on Form S-4 of FBA
(Registration No. 333-38103). The pro forma financial information
appears on pages 81 through 86 of the Amendment.
2. Pro Forma Consolidated Condensed Statements of Income for the
years ended September 30, 1997 (unaudited) and 1996. -
incorporated herein by reference to Amendment No. 2 to the
Registration Statement on Form S-4 of FBA (Registration No.
333-38103). The pro forma financial information appears on pages
81 through 86 of the Amendment.
3. Notes to Pro Forma Combined Condensed Financial Statements -
incorporated herein by reference to Amendment No. 2 to the
Registration Statement on Form S-4 of FBA (Registration No.
333-38103). The pro forma financial information appears on pages
81 through 86 of the Amendment.
(c) Exhibits
The following exhibits are incorporated herein by reference:
Exhibit No. Exhibit
2 Agreement and Plan of Merger dated October 3, 1997 between FBA
and First Commercial Bancorp, Inc. - incorporated herein by
reference to Exhibit 2(c) of FBA's report on Form 10-Q for the
quarter ended September 30, 1997.
<PAGE>
Item 7(a)
Financial Statements of Business Acquired
<PAGE>
<TABLE>
<CAPTION>
FIRST COMMERCIAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(dollars expressed in thousands, except per share data)
December 31,
1997 1996
(unaudited)
ASSETS
------
Cash and cash equivalents:
<S> <C> <C>
Cash and due from banks........................................................... $ 8,720 9,410
Federal funds sold................................................................ -- 11,500
----------- ---------
Total cash and cash equivalents............................................ 8,720 20,910
----------- ---------
Investment securities-available for sale at fair value................................ 64,390 38,229
Loans:
Commercial and financial......................................................... 40,672 32,756
Real estate construction and development......................................... 26,853 13,807
Real estate mortgage............................................................. 46,233 39,103
Consumer and installment......................................................... 5,100 9,244
----------- ---------
Total loans............................................................... 118,858 94,910
Unearned discount................................................................ (840) (413)
Allowance for possible loan losses............................................... (4,692) (4,597)
----------- ---------
Net loans................................................................. 113,326 89,900
----------- ---------
Bank premises and equipment, net..................................................... 2,018 1,894
Accrued interest receivable.......................................................... 1,856 1,197
Other real estate.................................................................... 220 192
Other assets......................................................................... 1,113 711
----------- ---------
Total assets.............................................................. $ 191,643 153,033
=========== =========
LIABILITIES
-----------
Deposits:
Demand:
Non-interest-bearing.......................................................... 30,997 24,026
Interest-bearing.............................................................. 16,188 33,617
Savings.......................................................................... 56,850 13,381
Time deposits:
Time deposits of $100 or more................................................. 14,095 9,284
Other time deposits........................................................... 54,455 55,828
------------ ---------
Total deposits............................................................ 172,585 136,136
Other borrowings ................................................................ 880 705
Accrued interest payable............................................................. 1,939 1,098
Accrued and other liabilities........................................................ 2,082 2,264
Notes payable........................................................................ 400 --
12% convertible debentures........................................................... 6,500 6,500
------------ ---------
Total liabilities......................................................... 184,386 146,703
------------ ---------
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value, 5,000,000 shares
authorized; no shares issued and outstanding..................................... -- --
Common stock, $1.25 par value, 10,000,000
shares authorized; 845,779 and 846,127 shares
issued and outstanding at December 31, 1997
and 1996, respectively........................................................... 1,058 1,058
Capital surplus...................................................................... 5,265 5,272
Retained earnings since elimination of
accumulated deficit of $30,881, effective
December 31, 1996................................................................ 764 --
Net fair value adjustment for securities available for sale.......................... 170 --
----------- ---------
Total stockholders' equity................................................ 7,257 6,330
----------- ---------
Total liabilities and stockholders' equity................................ $ 191,643 153,033
=========== =========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIRST COMMERCIAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars expressed in thousands, except per share data)
Years ended December 31,
------------------------
1997 1996 1995
---- ---- ----
(unaudited)
Interest income:
<S> <C> <C> <C>
Interest and fees on loans..................................... $ 10,234 8,643 9,734
Investment securities.......................................... 2,797 2,738 1,981
Federal funds sold and other................................... 603 555 2,035
---------- --------- --------
Total interest income..................................... 13,634 11,936 13,750
---------- --------- --------
Interest expense:
Deposits:
Interest-bearing demand...................................... 224 885 1,082
Savings...................................................... 1,397 349 481
Time deposits of $100 or more................................ 513 599 1,054
Other time deposits.......................................... 3,268 2,802 3,366
Other borrowings............................................... 919 905 153
---------- --------- ---------
Total interest expense.................................... 6,321 5,540 6,136
---------- --------- ---------
Net interest income....................................... 7,313 6,396 7,614
Provision for possible loan losses................................. -- 1,155 3,885
---------- --------- --------
Net interest income after provision
for possible loan losses.............................. 7,313 5,241 3,729
---------- --------- ---------
Noninterest income:
Service charges on deposit accounts
and customer service fees.................................... 607 751 801
Other income ................................................. 116 986 527
---------- --------- ---------
Total noninterest income.................................. 723 1,737 1,328
---------- --------- ---------
Noninterest expense:
Salaries and employee benefits................................. 2,007 2,177 4,117
Occupancy, net of rental income................................ 726 881 1,603
Furniture and equipment........................................ 344 390 581
Federal Deposit Insurance Corporation
premiums..................................................... 17 337 629
Postage, printing and supplies................................. 150 477 297
Legal, examination and professional fees....................... 1,236 1,501 1,164
Data processing................................................ 369 401 145
Communications................................................. 152 202 210
(Gain) loss on sale of other real estate,
net of expenses.............................................. (47) 1,002 2,631
Other......................................................... 931 712 1,212
---------- --------- ---------
Total noninterest expense................................. 5,885 8,080 12,589
---------- --------- ---------
Income (loss) before provision (benefit)
for income taxes...................................... 2,151 (1,102) (7,532)
Provision (benefit) for income taxes............................... 1,387 (532) (101)
---------- --------- ---------
Net income (loss) available to common
stockholders.......................................... $ 764 (570) (7,431)
========== ========= =========
Net earnings (loss) per common share:
Basic........................................................ $ .90 (.77) (40.69)
========== ========= =========
Diluted...................................................... $ .90 (.77) (40.69)
========== ========= =========
Weighted average common shares outstanding......................... 845,779 738,260 182,608
========== ========= ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIRST COMMERCIAL BANCORP, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For the three years ended December 31, 1997
(dollars expressed in thousands, except per share data)
Net fair
value
adjustment for Total
Retained securities stock-
Common Capital earnings Treasury available holders'
stock surplus (deficit) stock for sale equity
----- ------- --------- ----- -------- ------
Balance,
<S> <C> <C> <C> <C> <C> <C>
January 1, 1995................... $ 48 28,495 (22,880) (709) (599) 4,355
Net loss.............................. -- -- (7,431) -- -- (7,431)
Retirement of treasury
stock............................. (1) (708) -- 709 -- --
Net fair value adjustment
for securities available
for sale.......................... -- -- -- -- 541 541
Issuance of common stock
pursuant to stock
purchase agreement................ 650 5,464 -- -- -- 6,114
--------- -------- --------- ------ --------- --------
Balance,
December 31, 1995.................. 697 33,251 (30,311) -- (58) 3,579
Net loss ............................ -- -- (570) -- -- (570)
Net fair value adjust-
ment for securities
available for sale................ -- -- -- -- 104 104
Proceeds received from
sale of 288,720 shares
of common stock................... 361 2,856 -- -- -- 3,217
Effect of quasi-
reorganization,
effective
December 31, 1996................. -- (30,835) 30,881 -- (46) --
--------- ------- -------- ------ --------- --------
Balance,
December 31, 1996................. 1,058 5,272 -- -- -- 6,330
Net income............................ -- -- 764 -- -- 764
Net fair value adjust-
ment for securities
available for sale................ -- -- -- -- 170 170
Redemption of fractional
shares resulting from
reverse stock split.............. -- (7) -- -- -- (7)
---------- ------- ----------- ------ --------- --------
Balance,
December 31, 1997
(unaudited).................... $ 1,058 5,265 764 -- 170 7,257
======== ========== =========== ====== ========= ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FIRST COMMERCIAL BANCORP, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows
(dollars expressed in thousands)
Years ended December 31,
1997 1996 1995
---- ---- ----
(unaudited)
Cash flows from operating activities:
<S> <C> <C> <C>
Net income (loss).................................................. $ 764 (570) (7,431)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization.................................. 359 148 899
Provision for possible loan losses............................. -- 1,155 3,885
Write-down of other real estate................................ 30 99 1,141
Loss (gain) on disposal of other real estate................... (129) 4 (149)
Provision (benefit) for income taxes........................... 1,387 (532) (6,081)
Payments of income taxes....................................... (1,132) -- --
Valuation allowance for deferred taxes......................... -- -- 6,081
(Increase) decrease in accrued interest
receivable and other assets.................................. (1,315) 232 521
Increase (decrease) in accrued interest payable................ 841 611 275
Other operating activities, net................................ (99) 1,876 1,602
--------- --------- -------
Net cash provided by operating activities.................... 706 3,023 743
--------- --------- -------
Cash flows from investing activities:
Net decrease in interest-bearing deposits with
other financial institutions..................................... -- -- 299
Proceeds from maturities of investment securities.................. 36,557 86,884 2,168
Proceeds from the sales of investment securities................... -- -- 1,062
Purchases of investment securities................................. (62,604) (50,643) (59,451)
Recoveries of loans previously charged-off......................... 1,006 1,047 363
Net (increase) decrease in loans................................... (24,841) (24,574) 46,013
Purchases of bank premises and equipment........................... (335) (49) (156)
Net decrease in lease financing.................................... -- 991 47
Proceeds from sales of other real estate........................... 480 2,297 4,522
Other investing activities, net.................................... -- (23) --
---------- --------- --------
Net cash provided by (used in)
investing activities..................................... (49,737) 15,930 (5,133)
--------- ------ --------
Cash flows from financing activities:
Net increase (decrease) in demand and
savings deposits................................................. 33,009 (12,846) (49,980)
Net increase (decrease) in time deposits........................... 3,439 (7,182) (10,827)
Increase in notes payable.......................................... 400 -- --
Redemption of fractional shares of
common stock resulting from
reverse stock split.............................................. (7) -- --
Payment from sales of deposits, net................................ -- -- (14,541)
Proceeds from the issuance of common stock......................... -- 3,217 6,114
Proceeds from the issuance of convertible
debentures ..................................................... -- -- 6,133
---------- ----------- ---------
Net cash provided by (used in)
financing activities..................................... 36,841 (16,811) (63,101)
-------- ---------- ---------
Net increase (decrease) in cash and
cash equivalents......................................... (12,190) 2,142 (67,491)
Cash and cash equivalents at beginning of year......................... 20,910 18,768 86,259
-------- --------- ----------
Cash and cash equivalents at end of year............................... $ 8,720 20,910 18,768
======== ========= ==========
Supplemental disclosures of cash flow information:
Cash paid during the year for interest............................. $ 5,479 4,929 5,861
======== ========= ==========
Supplemental schedule of noncash investing and financing activities:
Exchange of common stock for dividends
payable.................................................. $ -- 643 --
Loans transferred to other real estate....................... $ 409 1,099 1,672
======== ========= ==========
</TABLE>
<PAGE>
INDEPENDENT AUDITORS' CONSENT
The Board of Directors
First Commercial Bancorp, Inc.:
We consent to the inclusion of our report dated March 7, 1997, with respect to
the consolidated balance sheets of First Commercial Bancorp, Inc. and subsidiary
as of December 31, 1996 and 1995, and the related consolidated statements of
operations, changes in stockholders' equity, and cash flows for each of the
years then ended, which report is incorporated by reference in the Form 8-K of
First Banks America, Inc. dated February 13, 1998.
/s/KPMG Peat Marwick LLP
St. Louis, Missouri
February 13, 1998
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Dated: February 13, 1998
FIRST BANKS AMERICA, INC.
By: /s/Allen H. Blake
---------------------
Allen H. Blake
Chief Financial Officer
and Secretary
