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Previous: CARLYLE REAL ESTATE LTD PARTNERSHIP XI, 8-K, 1999-06-25 |
Next: BMC FUND INC, PRE 14A, 1999-06-25 |
<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 18,1999
CITIZENS BANKING CORPORATION
(Exact name of registrant as specified in charter)
Michigan 0-10535 38-2378932
- ----------------------------- ---------------- ---------------------
(State or other jurisdiction) (Commission (IRS Employer
of incorporation) File Number) Identification No.)
328 S. Saginaw Street, Flint, Michigan 48502
--------------------------------------------------------------
(Address of principal executive offices)
Registrants telephone number, including area code (810) 766-7500
N/A
--------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
<PAGE> 2
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its current report on Form 8-K Report
filed on April 27, 1999 as set forth in the pages attached hereto:
Item 7. Financial Statements and Exhibits.
(a) Financial statements of businesses acquired.
The F&M Bancorporation, Inc. ("F&M") Consolidated Balance Sheets -
as of March 31, 1999, December 31, 1998 and December 31, 1997;
Consolidated Statements of Income - for the three month periods
ended March 31, 1999 and 1998 and for each year in the three year
period ended December 31, 1998; Consolidated Statement of Cash
Flow - for the three month periods ended March 31, 1999 and 1998
and for each year in the three year period ended December 31,
1998; and related Notes to Consolidated Financial Statements are
incorporated herein by reference to F&M's Quarterly Reports on
Form 10-Q filed for the three-month periods ended March 31, 1999
and 1998 and F&M's Annual Reports on Form 10-K filed for each year
in the three year period ended December 31, 1998.
(b) Pro forma financial information.
Pro forma financial information, required to be filed pursuant to
Item 7 of Form 8-K filed on April 27, 1999 follow:
2
<PAGE> 3
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
The following unaudited pro forma condensed combined balance sheets as
of March 31, 1999, and the pro forma condensed combined statements of income for
the three-month periods ended March 31, 1999 and 1998, and for each year in the
three year period ended December 31, 1998, give effect to the Merger, accounted
for as a pooling-of-interests. This pro forma information is based on the
historical consolidated financial statements of Citizens and F&M and their
subsidiaries under the assumptions and adjustments set forth in the accompanying
notes to the unaudited pro forma condensed combined financial statements. Pro
forma per share amounts are based on the conversion rate of 1.303 shares of
Citizens Common Stock for each share of F&M Common Stock. The pro forma
condensed combined financial statements, which include results of operations as
if the Merger had been consummated on January 1, 1996, do not reflect Merger
expenses and other special charges expected to be incurred by Citizens and F&M,
or the anticipated cost savings - see note (c) to the pro forma combined
financial statements. As a result, the pro forma combined financial condition
and results of operations of Citizens as of and after the Effective Time of the
Merger may not be indicative of the results that actually would have occurred if
the Merger had been in effect during the periods presented or which may be
attained in the future.
This pro forma information should be read in conjunction with the
historical consolidated financial statements of Citizens and F&M, including
their respective notes thereto, which are incorporated by reference from their
respective Quarterly Reports on Form 10-Q for the three-month periods ended
March 31, 1999 and 1998 and from their Annual Reports on Form 10-K for each year
in the three year period ended December 31, 1998. The pro forma financial
information presented is not necessarily indicative of actual results that would
have occurred had the Merger been consummated on March 31, 1999 or at the
beginning of the year ended December 31, 1996, or that may be obtained in the
future.
3
<PAGE> 4
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEETS
AS OF MARCH 31, 1999
(IN THOUSANDS)
<TABLE>
<CAPTION>
F&M
Citizens Bancorporation Pro Forma Pro Forma
Historical Historical Adjustments Combined
------------- -------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS
Cash and due from banks $ 150,447 $ 59,851 $ -- $ 210,298
Money market investments 18,164 15,862 34,026
Investment securities held to maturity -- 167,936 167,936
Investment securities available-for-sale 647,059 393,560 1,040,619
Loans 3,537,668 1,730,399 5,268,067
Less: Allowance for loan losses (45,325) (23,329) (68,654)
----------- ----------- ----------- -----------
Net loans 3,492,343 1,707,070 -- 5,199,413
Premises and equipment 80,060 51,189 131,249
Cost in excess of net assets acquired
and premium on core deposits, net 53,084 11,080 64,164
Other assets 57,580 39,169 96,749
----------- ----------- ----------- -----------
Total Assets $ 4,498,737 $ 2,445,717 $ -- $ 6,944,454
=========== =========== =========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits $ 597,133 $ 237,616 $ -- $ 834,749
Interest-bearing deposits 3,156,530 1,733,446 4,889,976
----------- ----------- ----------- -----------
Total deposits 3,753,663 1,971,062 -- 5,724,725
Short-term borrowings 133,368 94,200 227,568
Other liabilities 52,041 26,856 78,897
Long-term debt and other borrowings 130,821 111,504 242,325
----------- ----------- ----------- -----------
Total Liabilities 4,069,893 2,203,622 -- 6,273,515
SHAREHOLDERS' EQUITY
Preferred stock -- -- --
Common stock 97,942 14,110 (14,110)(a) 256,908
158,966 (a)
Capital surplus -- 144,856 (144,856)(a) --
Retained earnings 328,030 81,931 409,961
Accumulated other comprehensive income 2,872 1,198 4,070
----------- ----------- ----------- -----------
Total Shareholders' Equity 428,844 242,095 -- 670,939
----------- ----------- ----------- -----------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 4,498,737 $ 2,445,717 $ -- $ 6,944,454
=========== =========== =========== ===========
</TABLE>
See notes to unaudited pro forma condensed combined financial statements.
4
<PAGE> 5
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1999
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
F&M
Citizens Bancorporation Pro Forma
Historical Historical Combined
--------------- --------------- --------------
<S> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 72,460 $ 36,725 $ 109,185
Interest and dividends on investment securities 8,887 7,647 16,534
Money market investments 733 612 1,345
----------- ----------- -----------
Total interest income 82,080 44,984 127,064
----------- ----------- -----------
INTEREST EXPENSE
Deposits 30,182 18,276 48,458
Short-term borrowings 1,101 898 1,999
Long-term debt and other borrowings 1,778 1,318 3,096
----------- ----------- -----------
Total interest expense 33,061 20,492 53,553
----------- ----------- -----------
NET INTEREST INCOME 49,019 24,492 73,511
Provision for loan losses 3,600 462 4,062
----------- ----------- -----------
Net interest income after provision for loan losses 45,419 24,030 69,449
NONINTEREST INCOME 16,204 4,526 20,730
NONINTEREST EXPENSE 40,833 15,760 56,593
----------- ----------- -----------
Income before income taxes 20,790 12,796 33,586
Income taxes 6,367 4,134 10,501
----------- ----------- -----------
NET INCOME $ 14,423 $ 8,662 $ 23,085
=========== =========== ===========
PER COMMON SHARE DATA: (b, d)
NET INCOME:
Basic $ 0.52 $ 0.56 $ 0.48
Diluted $ 0.51 $ 0.56 $ 0.47
AVERAGE COMMON SHARES:
Basic 27,848,228 15,560,008 48,122,918
Diluted 28,400,333 15,589,384 48,713,300
</TABLE>
See notes to unaudited pro forma condensed combined financial statements.
5
<PAGE> 6
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1998
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
F&M
Citizens Bancorporation Pro Forma
Historical Historical Combined
--------------- -------------- -------------
<S> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 75,675 $ 36,635 $ 112,310
Interest and dividends on investment securities 8,778 7,830 16,608
Money market investments 754 657 1,411
----------- ----------- -----------
Total interest income 85,207 45,122 130,329
----------- ----------- -----------
INTEREST EXPENSE
Deposits 32,940 19,877 52,817
Short-term borrowings 1,481 1,052 2,533
Long-term debt and other borrowings 2,010 1,123 3,133
----------- ----------- -----------
Total interest expense 36,431 22,052 58,483
----------- ----------- -----------
NET INTEREST INCOME 48,776 23,070 71,846
Provision for loan losses 3,510 693 4,203
----------- ----------- -----------
Net interest income after provision for loan losses 45,266 22,377 67,643
NONINTEREST INCOME 12,991 3,499 16,490
NONINTEREST EXPENSE 38,692 14,870 53,562
----------- ----------- -----------
Income before income taxes 19,565 11,006 30,571
Income taxes 6,043 3,309 9,352
----------- ----------- -----------
NET INCOME $ 13,522 $ 7,697 $ 21,219
=========== =========== ===========
PER COMMON SHARE DATA: (b, d)
NET INCOME:
Basic $ 0.48 $ 0.49 $ 0.44
Diluted $ 0.47 $ 0.49 $ 0.43
AVERAGE COMMON SHARES:
Basic 28,075,555 15,587,855 48,386,530
Diluted 28,746,955 15,638,708 49,124,192
</TABLE>
See notes to unaudited pro forma condensed combined financial statements.
6
<PAGE> 7
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1998
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
F&M
Citizens Bancorporation Pro Forma
Historical Historical Combined
--------------- -------------- --------------
<S> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 301,138 $ 149,032 $ 450,170
Interest and dividends on investment securities 36,086 30,282 66,368
Money market investments 2,656 3,113 5,769
----------- ----------- -----------
Total interest income 339,880 182,427 522,307
----------- ----------- -----------
INTEREST EXPENSE
Deposits 127,966 78,642 206,608
Short-term borrowings 6,004 3,802 9,806
Long-term debt and other borrowings 8,064 4,795 12,859
----------- ----------- -----------
Total interest expense 142,034 87,239 229,273
----------- ----------- -----------
NET INTEREST INCOME 197,846 95,188 293,034
Provision for loan losses 14,090 2,438 16,528
----------- ----------- -----------
Net interest income after provision for loan losses 183,756 92,750 276,506
NONINTEREST INCOME 56,252 16,824 73,076
NONINTEREST EXPENSE 158,291 61,726 220,017
----------- ----------- -----------
Income before income taxes 81,717 47,848 129,565
Income taxes 24,932 14,351 39,283
----------- ----------- -----------
NET INCOME $ 56,785 $ 33,497 $ 90,282
=========== =========== ===========
PER COMMON SHARE DATA: (b, d)
NET INCOME:
Basic $ 2.02 $ 2.15 $ 1.86
Diluted $ 1.98 $ 2.15 $ 1.84
AVERAGE COMMON SHARES:
Basic 28,127,647 15,578,621 48,426,590
Diluted 28,742,615 15,611,584 49,084,509
</TABLE>
See notes to unaudited pro forma condensed combined financial statements.
7
<PAGE> 8
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1997
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
F&M
Citizens Bancorporation Pro Forma
Historical Historical Combined
-------------- -------------- --------------
<S> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 294,258 $ 132,070 $ 426,328
Interest and dividends on investment securities 40,532 28,753 69,285
Money market investments 1,073 2,022 3,095
----------- ----------- -----------
Total interest income 335,863 162,845 498,708
----------- ----------- -----------
INTEREST EXPENSE
Deposits 129,267 72,155 201,422
Short-term borrowings 8,689 4,534 13,223
Long-term debt and other borrowings 6,059 3,147 9,206
----------- ----------- -----------
Total interest expense 144,015 79,836 223,851
----------- ----------- -----------
NET INTEREST INCOME 191,848 83,009 274,857
Provision for loan losses 15,332 5,179 20,511
----------- ----------- -----------
Net interest income after provision for loan losses 176,516 77,830 254,346
NONINTEREST INCOME 46,694 12,780 59,474
NONINTEREST EXPENSE 177,161 56,571 233,732
----------- ----------- -----------
Income before income taxes 46,049 34,039 80,088
Income taxes 14,541 10,656 25,197
----------- ----------- -----------
NET INCOME $ 31,508 $ 23,383 $ 54,891
=========== =========== ===========
PER COMMON SHARE DATA: (b, d)
NET INCOME:
Basic $ 1.13 $ 1.59 $ 1.17
Diluted $ 1.11 $ 1.58 $ 1.15
AVERAGE COMMON SHARES:
Basic 27,878,990 14,707,409 47,042,744
Diluted 28,419,676 14,760,237 47,652,265
</TABLE>
See notes to unaudited pro forma condensed combined financial statements.
8
<PAGE> 9
UNAUDITED PRO FORMA CONDENSED COMBINED
STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1996
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
F&M
Citizens Bancorporation Pro Forma
Historical Historical Combined
--------------- -------------- --------------
<S> <C> <C> <C>
INTEREST INCOME
Interest and fees on loans $ 265,139 $ 108,778 $ 373,917
Interest and dividends on investment securities 43,431 27,641 71,072
Money market investments 3,766 1,942 5,708
----------- ----------- -----------
Total interest income 312,336 138,361 450,697
----------- ----------- -----------
INTEREST EXPENSE
Deposits 119,185 62,389 181,574
Short-term borrowings 7,959 2,966 10,925
Long-term debt and other borrowings 6,547 1,338 7,885
----------- ----------- -----------
Total interest expense 133,691 66,693 200,384
----------- ----------- -----------
NET INTEREST INCOME 178,645 71,668 250,313
Provision for loan losses 12,126 3,599 15,725
----------- ----------- -----------
Net interest income after provision for loan losses 166,519 68,069 234,588
NONINTEREST INCOME 48,004 10,199 58,203
NONINTEREST EXPENSE 155,056 46,404 201,460
----------- ----------- -----------
Income before income taxes 59,467 31,864 91,331
Income taxes 17,042 9,685 26,727
----------- ----------- -----------
Net income $ 42,425 $ 22,179 $ 64,604
=========== =========== ===========
PER COMMON SHARE DATA: (b, d)
NET INCOME:
Basic $ 1.52 $ 1.61 $ 1.41
Diluted $ 1.50 $ 1.61 $ 1.40
AVERAGE COMMON SHARES:
Basic 27,844,341 13,766,973 45,782,707
Diluted 28,258,591 13,799,981 46,239,966
</TABLE>
See notes to unaudited pro forma condensed combined financial statements.
9
<PAGE> 10
NOTES TO UNAUDITED PRO FORMA
CONDENSED COMBINED FINANCIAL STATEMENTS
(a) Pro Forma Adjustments - Pro forma adjustments to common shares and
capital surplus at March 31, 1999 reflect the combination of Citizens and
F&M, accounted for as a pooling-of-interests, through the exchange of
20,279,575 Citizens Common Shares for all 15,563,757 outstanding shares
of CB Financial Common Stock at an exchange ratio of 1.303 Citizens
Common Shares for each share of F&M Common Stock. Under generally
accepted accounting principles ("GAAP"), the assets and liabilities of
F&M will be combined with those of Citizens at book values. In addition,
the statements of income of F&M will be combined with the statements of
income of Citizens on a retroactive basis to January 1, 1996.
(b) Per Share Data - Pro forma weighted average shares outstanding for the
three-month periods ended March 31, 1999 and 1998, and for each year in
the three year period ended December 31, 1998 reflect the issuance of
1.303 Citizens Common Shares for each share of F&M Common Stock.
(c) Special Charges - The pro forma condensed combined financial statements
do not reflect one-time pre-tax charges of approximately $25 million to
$35 million for Merger transaction costs and other special charges.
Merger transaction costs, expected to range between $6 million and $8
million, consist primarily of investment banking, legal and accounting
fees. Other special charges include severance payments associated
primarily with the consolidation or elimination of various functions and
branches; facilities costs estimated to be incurred as a result of
closing certain branches; systems and operations costs, consisting
primarily of equipment and software write-offs; and other charges,
including the write-down or write-off of various tangible and intangible
assets acquired. The pro forma financial data do not give effect to the
anticipated cost savings in connection with the Merger from the
consolidation of operations and improved efficiencies of Citizens and
F&M.
(d) Subsequent Event - On May 14, 1999, F&M completed the acquisition of CBE,
Inc, the holding company for Community Bank of Elkhorn. CBE, Inc, a. one
bank holding company in Elkhorn, Wisconsin, has approximately $100
million in assets. The transaction was accounted for using the pooling of
interests method of accounting. F&M issued approximately 525,200 shares
of its common stock for all outstanding shares of CBE, Inc. The pro forma
condensed combined financial statements do not reflect this transaction.
10
<PAGE> 11
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CITIZENS BANKING CORPORATION
Date: June 24, 1999 By: /s/ Thomas W. Gallagher
--------------------------------------
Thomas W. Gallagher,
Senior Vice President,
General Counsel and Secretary
11
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