UNITED STATES
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
NOVEMBER 30, 1995
Date of Report (Date of earliest reported event)
FIRST COMMERCIAL CORPORATION
(Exact name of registrant as specified in its charter)
ARKANSAS 0 - 9676 71-0540166
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) file number) Identification Number)
400 WEST CAPITOL AVENUE, LITTLE ROCK, ARKANSAS 72201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (501)371-7000
<PAGE>
Item 5. OTHER EVENTS
------------
On November 30, 1995, Registrant acquired FDH Bancshares, Inc. ("FDH") and
West-Ark Bancshares, Inc. ("West-Ark"). The FDH transaction was accounted for
as a purchase, and the West-Ark transaction was accounted for as a pooling-of-
interests. Registrant committed to the shareholders of FDH and West-Ark to
file, subsequent to closing of the acquisitions, a Registration Statement on
Form s-# to register for resale the shares of common stock of Registrant
received by the shareholders in connection with those acquisitions.
Registrant has prepared pro forma financial information reflecting the
above-described transactions and is filing such information as Exhibit 99 to
this Current Report on Form 8-K so that Registrant may incorporate such
information into the selling shareholder Registration Statement by reference to
this Report.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS
---------------------------------
(c) Exhibits
99 Pro forma Financial Information
Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRST COMMERCIAL CORPORATION
/s/ J. Lynn Wright
By: -------------------------------
J. Lynn Wright
Chief Financial Officer
Date: December 13, 1995
2
<PAGE>
Index to Exhibits
Exhibit Number Exhibit
---------------- --------------------------------------------
99 Pro forma Financial Information
3
EXHIBIT 99
FIRST COMMERCIAL CORPORATION
PRO FORMA COMBINED FINANCIAL INFORMATION
(UNAUDITED)
The following unaudited pro forma combined balance sheets as of September
30, 1995, and unaudited pro forma statements of income for the three years
ended December 31, 1994, and for the nine month period ended September 30,
1995, give effect to the following transactions.
As reported in the Current Report on Form 8-K dated November 30, 1995,
pursuant to a Plan and Agreement of Merger dated June 21, 1995, as amended
September 22, 1995, First Commercial Corporation ("FCC") acquired all the
outstanding shares of capital stock of FDH Bancshares, Inc. ("FDH") and its
wholly owned subsidiaries, including four banks in Arkansas and one in
Louisiana. FCC issued 1,260,949 shares of its common stock for all outstanding
shares of common stock of FDH. FDH headquartered in Little Rock, Arkansas,
owns banks in Little Rock, El Dorado, Arkadelphia and Fordyce under the name of
Citizens First Bank. Springhill Bank and Trust in Springhill, Louisiana, is
FDH's only holding outside the state of Arkansas. This transaction was
accounted for using the purchase method of accounting and the related purchase
accounting adjustments applicable to the fair values of the assets acquired and
liabilities assumed have not yet been determined and therefore are not
reflected in this unaudited pro forma combined financial information. Any
adjustments to reflect assets acquired and liabilities assumed at fair value
will be made prior to November 30, 1995. FCC does not expect there to be any
material adjustments.
On November 30, 1995, FCC acquired all the outstanding stock of West-Ark
Bancshares, Inc., Clarksville, Arkansas, parent company of Arkansas State Bank
of Clarksville, in exchange for 644,024 shares of FCC common stock. This
transaction was accounted for using the pooling-of-interests method of
accounting.
For balance sheet purposes the assumed consummation date of the above
transactions is September 30, 1995. For income statement purposes the assumed
consummation date for the transaction accounted for using the purchase method
is January 1, 1994, and the assumed consummation date for the transaction
accounted for under the pooling-of-interest method is January 1, 1992.
The following unaudited pro forma financial information is not necessarily
indicative of the results of operation of FCC if the acquisitions had occurred
on January 1, 1994, and January 1, 1992.
4
<PAGE>
<TABLE>
<CAPTION>
PRO FORMA COMBINED STATEMENT OF INCOME
For the Nine Months Ended September 30, 1995
(Unaudited)
(Dollars in thousands, except per share data)
Completed Business Combinations
------------------------------------
FDH West-Ark
First Commercial Bancshares, Inc. Bancshares, Inc.
Corporation (A) (Purchase) (B) (Pooling) (C) Pro forma (D)
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Interest income..................... $ 225,807 $ 20,246 $ 8,217 $ 254,270
Interest expense.................... 95,368 10,800 4,498 110,666
--------------- --------------- --------------- ---------------
Net interest income................. 130,439 9,446 3,719 143,604
Provision for possible loan and
lease losses...................... 1,565 206 175 1,946
Net interest income after provision
for possible loan and lease losses 128,874 9,240 3,544 141,658
Other operating income.............. 48,566 2,256 823 51,645
Other operating expenses............ 116,839 8,751 2,763 129,105
--------------- --------------- --------------- ---------------
Income before income taxes.......... 60,601 2,745 1,604 64,198
Income tax expense.................. 20,580 752 381 21,713
--------------- --------------- --------------- ---------------
Net income.......................... $ 40,021 $ 1,993 $ 1,223 $ 42,485
=============== =============== =============== ===============
Preferred stock dividend............ -- -- -- --
--------------- --------------- --------------- ---------------
Income applicable to common shares.. $ 40,021 $ 1,993 $ 1,223 $ 42,485
=============== =============== =============== ===============
Average common shares outstanding
during period (E)................. 25,435,071 1,000 279,000 27,473,392
Net income per common share......... $1.57 $1,993.00 $4.38 $1.55
See accompanying notes to pro forma combined statement of income.
</TABLE>
5
<PAGE>
NOTES TO PRO FORMA COMBINED STATEMENT OF INCOME
For the Nine Months Ended September 30, 1995
(Unaudited)
(Dollars in thousands)
(A) Represents historical income statement of First Commercial Corporation.
(B) Represents historical income statement of FDH Bancshares, Inc., as if
this purchase transaction had occurred on or prior to January 1, 1995.
(C) Represents historical income statement of West-Ark Bancshares, Inc., as
if this pooling transaction had occurred on or prior to January 1, 1995.
(D) Pro forma combined income reflects an adjustment of $752 in other
expenses for amortization of goodwill in connection with the FDH
Bancshares, Inc., purchase.
(E) Average shares outstanding for First Commercial Corporation and Pro
forma combined have been restated to reflect the 7% stock dividend
declared November 21, 1995, payable on January 2, 1996 to stockholders
of record December 14, 1995. Pro forma combined shares have also been
adjusted for the FDH Bancshares, Inc. and West-Ark Bancshares, Inc.,
acquisitions.
6
<PAGE>
<TABLE>
<CAPTION>
PRO FORMA COMBINED STATEMENT OF INCOME
For the Year Ended December 31, 1994
(Unaudited)
(Dollars in thousands, except per share data)
Completed Business Combinations
------------------------------------
FDH West-Ark
First Commercial Bancshares, Inc. Bancshares, Inc.
Corporation (A) (Purchase) (B) (Pooling) (C) Pro forma (D)
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Interest income..................... $ 257,751 $ 20,026 $ 8,208 $ 285,985
Interest expense.................... 98,306 8,830 3,614 110,750
--------------- --------------- --------------- ---------------
Net interest income................. 159,445 11,196 4,594 175,235
Provision for possible loan and
lease losses...................... (3,092) 207 200 (2,685)
Net interest income after provision
for possible loan and lease losses 162,537 10,989 4,394 177,920
Other operating income.............. 68,652 1,937 886 71,475
Other operating expenses............ 156,875 9,241 3,148 170,266
--------------- --------------- --------------- ---------------
Income before income taxes.......... 74,314 3,685 2,132 79,129
Income tax expense.................. 24,006 1,059 567 25,632
--------------- --------------- --------------- ---------------
Net income.......................... $ 50,308 $ 2,626 $ 1,565 $ 53,497
=============== =============== =============== ===============
Preferred stock dividend............ 129 -- -- 129
--------------- --------------- --------------- ---------------
Income applicable to common shares.. $ 50,179 $ 2,626 $ 1,565 $ 53,368
=============== =============== =============== ===============
Average common shares outstanding
during period (E)................. 25,609,337 1,000 279,000 27,647,658
Net income per common share......... $1.96 $2,626.00 $5.61 $1.93
See accompanying notes to pro forma combined statement of income.
</TABLE>
7
<PAGE>
NOTES TO PRO FORMA COMBINED STATEMENT OF INCOME
For the Year Ended December 31, 1994
(Unaudited)
(Dollars in thousands)
(A) Represents historical income statement of First Commercial Corporation.
(B) Represents historical income statement of FDH Bancshares, Inc., as if
this purchase transaction had occurred on or prior to January 1, 1995.
(C) Represents historical income statement of West-Ark Bancshares, Inc., as
if this pooling transaction had occurred on or prior to January 1, 1995.
(D) Pro forma combined income reflects an adjustment of $1,002 in other
expenses for amortization of goodwill in connection with the FDH
Bancshares, Inc., purchase.
(E) Average shares outstanding for First Commercial Corporation and Pro
forma combined have been restated to reflect the 7% stock dividend
declared November 21, 1995, payable on January 2, 1996 to stockholders
of record December 14, 1995. Pro forma combined shares have also been
adjusted for the FDH Bancshares, Inc., and West-Ark Bancshares, Inc.,
acquisitions.
8
<PAGE>
<TABLE>
<CAPTION>
PRO FORMA COMBINED STATEMENT OF INCOME
For the Year Ended December 31, 1993
(Unaudited)
(Dollars in thousands, except per share data)
Completed Business
Combination
-------------------
West-Ark
First Commercial Bancshares, Inc.
Corporation (A) (Pooling) (B) Pro forma
----------------- ------------------- -----------------
<S> <C> <C> <C>
Interest income..................... $ 234,995 $ 7,774 $ 242,769
Interest expense.................... 90,421 3,245 93,666
--------------- --------------- ---------------
Net interest income................. 144,574 4,529 149,103
Provision for possible loan and
lease losses...................... 4,416 270 4,686
Net interest income after provision
for possible loan and lease losses 140,158 4,259 144,417
Other operating income.............. 58,957 858 59,815
Other operating expenses............ 135,191 2,960 138,151
--------------- --------------- ---------------
Income before income taxes.......... 63,924 2,157 66,081
Income tax expense.................. 17,959 630 18,589
--------------- --------------- ---------------
Net income.......................... $ 45,965 $ 1,527 $ 47,492
=============== =============== ===============
Preferred stock dividend............ 1,210 -- 1,210
--------------- --------------- ---------------
Income applicable to common shares.. $ 44,755 $ 1,527 $ 46,282
=============== =============== ===============
Average common shares outstanding
during period (C)................. 25,715,732 279,000 26,404,838
Net income per common share......... $1.74 $5.47 $1.75
See accompanying notes to pro forma combined statement of income.
</TABLE>
9
<PAGE>
NOTES TO PRO FORMA COMBINED STATEMENT OF INCOME
For the Year Ended December 31, 1993
(Unaudited)
(Dollars in thousands)
(A) Represents historical income statement of First Commercial Corporation.
(B) Represents historical income statement of West-Ark Bancshares, Inc., as
if this pooling transaction had occurred on or prior to January 1, 1995.
(C) Average shares outstanding for First Commercial Corporation and Pro
forma combined have been restated to reflect the 7% stock dividend
declared November 21, 1995, payable on January 2, 1996 to stockholders
of record December 14, 1995. Pro forma combined shares have also been
adjusted for the West-Ark Bancshares, Inc., acquisition.
10
<PAGE>
<TABLE>
<CAPTION>
PRO FORMA COMBINED STATEMENT OF INCOME
For the Year Ended December 31, 1992
(Unaudited)
(Dollars in thousands, except per share data)
Completed Business
Combination
-------------------
West-Ark
First Commercial Bancshares, Inc.
Corporation (A) (Pooling) (B) Pro forma
----------------- ------------------- -----------------
<S> <C> <C> <C>
Interest income..................... $ 232,098 $ 8,044 $ 240,142
Interest expense.................... 98,690 3,810 102,500
--------------- --------------- ---------------
Net interest income................. 133,408 4,234 137,642
Provision for possible loan and
lease losses...................... 8,941 305 9,246
Net interest income after provision
for possible loan and lease losses 124,467 3,929 128,396
Other operating income.............. 51,182 1,040 52,222
Other operating expenses............ 118,882 2,807 121,689
--------------- --------------- ---------------
Income before income taxes.......... 56,767 2,162 58,929
Income tax expense.................. 16,800 711 17,511
--------------- --------------- ---------------
Net income.......................... $ 39,967 $ 1,451 $ 41,418
=============== =============== ===============
Preferred stock dividend............ 1,210 -- 1,210
--------------- --------------- ---------------
Income applicable to common shares.. $ 38,757 $ 1,451 $ 40,208
=============== =============== ===============
Average common shares outstanding
during period (C)................. 25,580,251 279,000 26,269,357
Net income per common share......... $1.52 $5.20 $1.53
See accompanying notes to pro forma combined statement of income.
</TABLE>
11
<PAGE>
NOTES TO PRO FORMA COMBINED STATEMENT OF INCOME
For the Year Ended December 31, 1992
(Unaudited)
(Dollars in thousands)
(A) Represents historical income statement of First Commercial Corporation.
(B) Represents historical income statement of West-Ark Bancshares, Inc., as
if this pooling transaction had occurred on or prior to January 1, 1995.
(C) Average shares outstanding for First Commercial Corporation and Pro
forma combined have been restated to reflect the 7% stock dividend
declared November 21, 1995, payable on January 2, 1996 to stockholders
of record December 14, 1995. Pro forma combined shares have also been
adjusted for the West-Ark Bancshares, Inc., acquisition.
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<PAGE>
<TABLE>
<CAPTION>
PRO FORMA COMBINED BALANCE SHEET
September 30, 1995
(Unaudited)
(Dollars in thousands) Completed Business Combinations
-------------------------------
FDH West-Ark
First Bancshares, Bancshares,
Commercial Inc. Inc. Pro forma
Corp.(A) (Purchase)(B) (Pooling)(C) Adjustment Pro forma
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash and due from banks........... $ 298,083 $ 13,746 $ 3,559 $ 315,388
Investment securities............. 1,171,115 122,680 41,619 1,335,414
Trading account securities........ 320 -- -- 320
Short-term investments............ 76,460 13,320 1,750 91,530
Loans, net........................ 2,740,712 209,820 98,702 3,049,234
Premises and equipment, net....... 89,946 11,747 3,408 105,101
Other assets...................... 186,193 10,959 2,505 15,031 (D) 214,688
25,556 (D)
(25,556)(E)
----------- ----------- ----------- -----------
$ 4,562,829 $ 382,272 $ 151,543 $ 5,111,675
=========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Non-interest bearing.............. $ 826,860 $ 42,535 $ 9,529 $ 878,924
Interest bearing.................. 3,048,367 288,624 132,093 3,469,084
----------- ----------- ----------- -----------
Total deposits.................. 3,875,227 331,159 141,622 4,348,008
Short-term borrowings............. 255,163 6,231 -- 261,394
Other liabilities................. 46,201 2,905 1,267 50,373
Long-term debt.................... 11,471 16,215 75 27,761
Minority interest in subsidiary... -- 206 -- 206
----------- ----------- ----------- -----------
Total liabilities............... 4,188,062 356,716 142,964 4,687,742
Stockholders' equity
Common stock.................... 71,458 1 279 3,546 (D) 76,936
(1)(E)
1,653 (F)
Capital surplus................. 109,493 15,290 2,033 35,026 (D) 144,899
(15,290)(E)
(1,653)(F)
Retained earnings............... 195,851 10,707 6,337 (10,707)(E) 202,188
Unrealized losses on securities. (20) (442) (70) 442 (E) (90)
Treasury stock.................. (2,015) -- -- 2,015 (D) --
----------- ----------- ----------- -----------
Total stockholders' equity...... 374,767 25,556 8,579 423,933
----------- ----------- ----------- -----------
$ 4,562,829 $ 382,272 $ 151,543 $ 5,111,675
=========== =========== =========== ===========
See accompanying notes to pro forma combined balance sheet.
</TABLE>
13
<PAGE>
NOTES TO PRO FORMA COMBINED BALANCE SHEET
September 30, 1995
(Unaudited)
(A) Represents historical balance sheet of First Commercial Corporation.
(B) Represents historical balance sheet of FDH Bancshares, Inc., as if
this purchase transaction had occurred on or prior to September 30,
1995.
(C) Represents historical balance sheet of West-Ark Bancshares, Inc., as
if this pooling transaction had occurred on or prior to September 30,
1995.
(D) This entry reflects the recording of the estimated goodwill and the
effect on equity from the FDH Bancshares, Inc., acquisition. Purchase
accounting adjustments applicable to the fair value of the assets
acquired and liabilities assumed have not yet been determined and
therefore are not reflected in this unaudited pro forma combined
financial information. Any adjustments to reflect assets acquired and
liabilities assumed at fair value will be made prior to November 30,
1995. First Commercial Corporation does not expect there to be any
material adjustments.
(E) This entry reflects the elimination of the equity of FDH Bancshares,
Inc.
(F) This entry reflects the actual amount of First Commercial Corporation
common stock to be outstanding after the acquisition of FDH Bancshares,
Inc., and West-Ark Bancshares, Inc.
14
