<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------
FORM 10-K/A
-----------------------
AMENDMENT #1 TO ANNUAL REPORT PURSUANT TO SECTION 13 OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR COMMISSION FILE NO. 1-11792
ENDED DECEMBER 31, 1996
MERCANTILE BANCORPORATION INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
MISSOURI 43-0951744
(STATE OF INCORPORATION) (IRS EMPLOYER
IDENTIFICATION NO.)
P.O. BOX 524 63166-0524
ST. LOUIS, MISSOURI (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 314-425-2525
SECURITIES REGISTERED PURSUANT NAME OF EXCHANGE ON WHICH REGISTERED:
TO SECTION 12(b) OF THE ACT:
(1) COMMON STOCK ($0.01 PAR VALUE) (1) NEW YORK STOCK EXCHANGE
(2) PREFERRED STOCK PURCHASE RIGHTS (2) NEW YORK STOCK EXCHANGE
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED
ALL REPORTS REQUIRED TO BE FILED BY SECTION 13 OF THE SECURITIES
EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS, AND (2) HAS
BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.
YES X NO
----- -----
INDICATE BY CHECK MARK IF DISCLOSURE OF DELINQUENT FILERS
PURSUANT TO ITEM 405 OF REGULATION S-K IS NOT CONTAINED HEREIN,
AND WILL NOT BE CONTAINED, TO THE BEST OF REGISTRANT'S KNOWLEDGE,
IN DEFINITIVE PROXY OR INFORMATION STATEMENTS INCORPORATED BY
REFERENCE IN PART III OF THIS FORM 10-K. [X]
STATE THE AGGREGATE MARKET VALUE OF THE VOTING STOCK HELD BY
NON-AFFILIATES OF THE REGISTRANT AS OF JANUARY 31, 1997:
COMMON STOCK, $5.00 PAR VALUE, $2,566,265,226
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE
REGISTRANT'S CLASSES OF COMMON STOCK, AS OF JANUARY 31, 1997:
COMMON STOCK $5.00 PAR VALUE, 60,757,050 SHARES OUTSTANDING
DOCUMENT INCORPORATED BY REFERENCE
AS PROVIDED HEREIN, PORTIONS OF THE DOCUMENT BELOW ARE INCORPORATED BY
REFERENCE:
<TABLE>
<CAPTION>
DOCUMENT PART--FORM 10-K
-------- ---------------
<S> <C>
REGISTRANT'S PROXY STATEMENT FOR THE 1997 ANNUAL MEETING OF SHAREHOLDERS. III
</TABLE>
<PAGE> 2
The "Exhibit Index" as previously filed with the Form 10-K is hereby amended
by inserting the following entries:
No. 23-1 Consent of KPMG Peat Marwick LLP (relating to report dated
June 20, 1997, Mercantile Bancorporation Inc. Horizon
Investment and Savings Plan and Trust Financial Statements.)
No. 99 Report of the Independent Auditors KPMG Peat Marwick LLP dated
June 20, 1997; Statements of Assets Available for Plan
Benefits of Mercantile Bancorporation Inc. Horizon Investment
and Savings Plan and Trust as of December 31, 1996 and 1995;
Statements of Changes in Assets Available For Plan Benefits
for the years then ended; and the Notes and Schedules thereto.
The Exhibit Index, as amended, follows, and new Exhibits 23-1 and 99 are filed
herewith.
2
<PAGE> 3
<TABLE>
EXHIBIT INDEX
<CAPTION>
Exhibit No. Description
- ---------- -----------
<C> <S>
No. 3-1 Restated Articles of Incorporation of the Registrant, as
amended and currently in effect, filed as Exhibit 3(i) to
Registrant's Quarterly Report on Form 10-Q for the quarter
ended June 30, 1994, are incorporated herein by reference.
No. 3-2 By-Laws of the Registrant, as amended and currently in effect,
filed as Exhibit 3.2 to Amendment No. 2 to Registrant's
Registration Statement No. 333-17757, are incorporated herein
by reference.
No. 4-1 Form of Indenture Regarding Subordinated Securities between the
Registrant and The First National Bank of Chicago as Trustee,
filed on March 31, 1992, as Exhibit 4.1 to Registrant's Report
on Form 8-K dated September 24, 1992, is incorporated herein by
reference.
No. 4-2 Form of Indenture Regarding Floating Rate Junior Subordinated
Definable Interest Debentures due 2027 between the Registrant
and the Chase Manhattan Bank, as Trustee.
No. 4-3 Form of First Supplemental Indenture Regarding Floating Rate
Junior Subordinated Definable Interest Debentures Due 2027
between the Registrant and the Chase Manhattan Bank, as
Trustee.
No. 4-4 Rights Agreement dated as of May 23, 1988, between Registrant
and Mercantile Bank National Association, as Rights Agent
(including as exhibits thereto the form of Certificate of
Designation, Preferences and Rights of Series A Junior
Participating Preferred Stock and the form of Rights
Certificate) filed as Exhibits 1 and 2 to Registrant's
Registration Statement on Form 8-A, dated May 24, 1988, is
incorporated herein by reference.
No. 10-1 The Mercantile Bancorporation Inc. 1987 Stock Option Plan, as
amended, filed as Exhibit 10-3 to Registrant's Report on Form
10-K for the year ended December 31, 1989 (Commission File No.
1-11792), is incorporated herein by reference.
No. 10-2 The Mercantile Bancorporation Inc. Executive Incentive
Compensation Plan, filed as Appendix C to Registrant's
definitive Proxy Statement for the 1994 Annual Meeting of
Shareholders, is incorporated herein by reference.
No. 10-3 The Mercantile Bancorporation Inc. Employee Stock Purchase
Plan, filed as Exhibit 10-7 to Registrant's Report on Form 10-K
for the year ended December 31, 1989 (Commission File No.
1-11792), is incorporated herein by reference.
No. 10-4 The Mercantile Bancorporation Inc. 1991 Employee Incentive
Plan, filed as Exhibit 10-7 to Registrant's Report on Form 10-K
for the year ended December 31, 1990 (Commission File No.
1-11792), is incorporated herein by reference.
No. 10-5 Amendment Number One to the Mercantile Bancorporation Inc. 1991
Employee Incentive Plan, filed as Exhibit 10-6 to Registrant's
Report on Form 10-K for the year ended December 31, 1994, is
incorporated herein by reference.
3
<PAGE> 4
<CAPTION>
Exhibit No. Description
- ---------- -----------
<C> <S>
No. 10-6 The Mercantile Bancorporation Inc. 1994 Stock Incentive Plan,
filed as Appendix B to Registrant's definitive Proxy Statement
for the 1994 Annual Meeting of Shareholders, is incorporated
herein by reference.
No. 10-7 The Mercantile Bancorporation Inc. 1994 Stock Incentive Plan
for Non-Employee Directors, filed as Appendix E to Registrant's
definitive Proxy Statement for the 1994 Annual Meeting of
Shareholders, is incorporated herein by reference.
No. 10-8 The Mercantile Bancorporation Inc. Voluntary Deferred
Compensation Plan, filed as Appendix D to Registrant's
definitive Proxy Statement for the 1994 Annual Meeting of
Shareholders, is incorporated herein by reference.
No. 10-9 Form of Employment Agreement for Thomas H. Jacobsen, as
amended, filed as Exhibit 10-8 to Registrant's Report on Form
10-K for the year ended December 31, 1989 (Commission File No.
1-11792), is incorporated herein by reference.
No. 10-10 Form of Change of Control Employment Agreement for John W.
McClure, W. Randolph Adams, John Q. Arnold and Certain Other
Executive Officers, filed as Exhibit 10-10 to Registrant's
Report on Form 10-K for the year ended December 31, 1989
Commission File No. 1-11792), is incorporated herein by
reference.
No. 10-11 Agreement and Plan of Reorganization dated August 4, 1995, by
and between Mercantile Bancorporation Inc. and Hawkeye
Bancorporation, filed as Exhibit 2.1 to Registrant's
Registration Statement No. 33-63609, is incorporated herein by
reference.
No. 10-12 Mercantile Bancorporation Inc. Supplemental Retirement Plan,
filed as Exhibit 10-12 to Registrant's Report on Form 10-K for
the year ended December 31, 1992, is incorporated herein by
reference.
No. 10-13 Agreement and Plan of Reorganization dated October 27, 1996,
and between Mercantile Bancorporation Inc., Ameribanc, Inc. and
Mark Twain Bancshares, Inc., filed as Exhibit 2.1 to
Registrant's Report on Form 8-K filed on November 6, 1996, is
incorporated herein by reference.
No. 10-14 Amendment to Agreement and Plan of Reorganization, dated
January 24, 1997, by and among Registrant, Ameribanc, Inc. and
Mark Twain Bancshares, Inc., filed as Exhibit 10-16 to
Amendment No. 2 to Registrant's Registration Statement No.
33-17757, is incorporated herein by reference.
No. 10-15 Stock Option Agreement, dated October 27, 1996, by and between
Mercantile Bancorporation Inc., as grantee, and Mark Twain
Bancshares, Inc., as issuer, filed as Exhibit 2.2 to
Registrant's Report on Form 8-K filed on November 6, 1996, is
incorporated herein by reference.
No. 10-16 Agreement and Plan of Reorganization, dated December 22, 1996,
by and between Mercantile Bancorporation Inc. and Roosevelt
Financial Group, Inc., filed as Exhibit 2.1 to Registrant's
Report on Form 8-K filed on December 30, 1996, is incorporated
herein by reference.
4
<PAGE> 5
<CAPTION>
Exhibit No. Description
- ---------- -----------
<C> <S>
No. 10-17 Stock Option Agreement, dated December 22, 1996, by and between
Mercantile Bancorporation Inc., as grantee, and Roosevelt
Financial Group, Inc., as issuer, filed as Exhibit 2.1 to
Registrant's Report on Form 8-K filed on December 30, 1996, is
incorporated herein by reference.
No. 21 Subsidiaries of the Registrant as of January 31, 1997.
No. 23 Consent of KPMG Peat Marwick LLP.
No. 23-1 Consent of KPMG Peat Marwick LLP (relating to report dated June
20, 1997, Mercantile Bancorporation Inc. Horizon Investment and
Savings Plan and Trust Financial Statements.)
No. 24 Power of Attorney (on signature page).
No. 27 Financial Data Schedule.
No. 99 Report of the Independent Auditors KPMG Peat Marwick LLP dated
June 20, 1997; Statements of Assets Available for Plan Benefits
of the Mercantile Bancorporation Inc. Horizon Investment and
Savings Plan and Trust at December 31, 1996 and 1995;
Statements of Changes in Assets Available for Plan Benefits for
the years then ended; and the Notes and Schedules thereto.
</TABLE>
5
<PAGE> 6
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this amendment to be signed on its behalf by
the undersigned, thereunto duly authorized.
MERCANTILE BANCORPORATION INC.
(Registrant)
Date: June 27, 1997 By: /s/JOHN Q. ARNOLD
-----------------------------
John Q. Arnold
Senior Executive Vice President
and Chief Financial Officer
6
<PAGE> 7
10-K/A
<TABLE>
EXHIBIT INDEX
-------------
<CAPTION>
Exhibit No. Description
- ---------- -----------
<C> <S>
No. 23-1 Consent of KPMG Peat Marwick LLP (relating to report dated June
20, 1997, Mercantile Bancorporation Inc. Horizon Investment and
Savings Plan and Trust Financial Statements.)
No. 99 Report of the Independent Auditors KPMG Peat Marwick LLP dated
June 20, 1997; Statements of Assets Available for Plan Benefits
of the Mercantile Bancorporation Inc. Horizon Investment and
Savings Plan and Trust as of December 31, 1996 and 1995;
Statements of Changes in Assets Available for Plan Benefits for
the years then ended; and the Notes and Schedules thereto.
7
</TABLE>
<PAGE> 1
EXHIBIT 23-1
Consent of Experts
<PAGE> 2
INDEPENDENT AUDITORS' CONSENT
The Board of Directors
Mercantile Bancorporation Inc.:
Plan Administrator
Mercantile Bancorporation Inc.
Horizon Investment and Savings Plan and Trust:
We consent to incorporation by reference in the Registration Statement (No.
33-35139) on Form S-8 of Mercantile Bancorporation Inc. related to the
Mercantile Bancorporation Inc. Horizon Investment and Savings Plan and Trust
of our report dated June 20, 1997, relating to the statements of assets
available for plan benefits of the Mercantile Bancorporation Inc. Horizon
Investment and Savings Plan and Trust as of December 31, 1996 and 1995, and
the related statements of changes in assets available for plan benefits for
the years then ended, which report appears in the 1996 Annual Report on Form
10-K/A, of Mercantile Bancorporation Inc.
s/ KPMG PEAT MARWICK LLP
St. Louis, Missouri
June 27, 1997
<PAGE> 1
EXHIBIT 99
Report of Independent Auditors
<PAGE> 2
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS
PLAN AND TRUST
Financial Statements and Schedules
December 31, 1996 and 1995
(With Independent Auditors' Report Thereon)
<PAGE> 3
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
<TABLE>
TABLE OF CONTENTS
==============================================================================================
<CAPTION>
Page(s)
-------
<S> <C>
Table of Contents:
Independent Auditors' Report 1
Financial Statements:
Statement of Assets Available for Plan Benefits, December 31, 1996 2
Statement of Assets Available for Plan Benefits, December 31, 1995 3
Statement of Changes in Assets Available for Plan Benefits,
Year ended December 31, 1996 4
Statement of Changes in Assets Available for Plan Benefits,
Year ended December 31, 1995 5
Notes to Financial Statements, December 31, 1996 and 1995 6-11
<CAPTION>
Schedule
--------
<S> <C> <C>
Item 27a:
Schedule of Assets Held for Investment Purposes, December 31, 1996 1 12
Schedule of Assets Held for Investment Purposes Which
Were Both Acquired and Disposed of Within the Plan Year <F*>
Item 27b - Schedule of Loans or Fixed Income Obligations <F*>
Item 27c - Schedule of Leases in Default or Classified as Uncollectible <F*>
Item 27d - Schedule of Reportable Transactions, Year ended
December 31, 1996 2 13
Item 27e - Schedule of Nonexempt Transactions <F*>
<FN>
<F*> There were no assets held for investment purposes which were both
acquired and disposed of within the plan year ended December 31,
1996 which require separate disclosure, no nonexempt transactions
with parties-in-interest during the year ended December 31,
1995, and no loans, fixed income obligations, or leases in default
or classified as uncollectible at December 31, 1996.
</TABLE>
Definitions:
Plan - Mercantile Bancorporation Inc. Horizon Investment and
Savings Plan and Trust
Plan Administrator - Mercantile Employee Benefits Committee
Trustee - Mercantile Bank N.A.
ERISA - Employee Retirement Income Security Act of 1974
Mercantile - Mercantile Bancorporation Inc.
<PAGE> 4
Independent Auditors' Report
Mercantile Employee Benefits Committee
Mercantile Bancorporation Inc.
Horizon Investment and Savings Plan and Trust:
We have audited the statements of assets available for plan benefits of the
Mercantile Bancorporation Inc. Horizon Investment and Savings Plan and Trust
as of December 31, 1996 and 1995, and the related statements of changes in
assets available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's administrator. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by the Plan's administrator, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets available for plan benefits as of December
31, 1996 and 1995, and the changes in assets available for plan benefits for
the years then ended in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information included
in Schedules 1 and 2 is presented for the purpose of additional analysis and
is not a required part of the basic financial statements but is supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The fund information in the statement of assets available for plan
benefits and the statement of changes in assets available for plan benefits is
presented for purposes of additional analysis rather than to present the
assets available for plan benefits and the changes in assets available for
plan benefits of each fund. The supplemental schedules and fund information
have been subjected to the auditing procedures applied in the audits of the
basic financial statements and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
s/ KPMG PEAT MARWICK LLP
June 20, 1997
1
<PAGE> 5
<TABLE>
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Statement of Assets Available for Plan Benefits
December 31, 1996
<CAPTION>
==============================================================================================================================
Participant-directed funds
----------------------------------------------------------------------------------
Growth Government Nonpar-
and and Money Small Cap Mercantile Inter- ticipant-
Balanced Income Corporate Market Equity Stock national directed
Fund Fund Bond Fund Fund Fund Fund Fund funds Total
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total
noninterest-
bearing cash $ 7 - - - - - - 8,653 8,660
Receivables:
Employer
contributions - - - - - 5,090,806 - - 5,090,806
Income 158 308 39,984 40,265 162 1,018,403 97 3,108 1,102,485
- ------------------------------------------------------------------------------------------------------------------------------
Total
receivables 158 308 39,984 40,265 162 6,109,209 97 3,108 6,193,291
- ------------------------------------------------------------------------------------------------------------------------------
Investments
at fair value:
Interest-
bearing cash
(including money
market funds) 133,084 272,113 47,883 9,877,783 143,631 911,244 72,156 909,624 12,367,518
Certificates
of deposit - - - 33,517 - - - - 33,517
Value of
interest in
registered
investment
companies 23,679,586 36,710,411 7,953,756 - 9,900,814 - 3,934,068 - 82,178,635
Common stock - - - - - 127,846,585 - - 127,846,585
Loans to
participants - - - - - - - 7,005,709 7,005,709
Other - - - - - - - 13,489 13,489
- ------------------------------------------------------------------------------------------------------------------------------
Total
investments 23,812,670 36,982,524 8,001,639 9,911,300 10,044,445 128,757,829 4,006,224 7,928,822 229,445,453
- ------------------------------------------------------------------------------------------------------------------------------
Assets
available for
plan benefits $23,812,835 36,982,832 8,041,623 9,951,565 10,044,607 134,867,038 4,006,321 7,940,583 235,647,404
==============================================================================================================================
See accompanying notes to financial statements.
</TABLE>
2
<PAGE> 6
<TABLE>
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Statement of Assets Available for Plan Benefits
December 31, 1995
<CAPTION>
=============================================================================================================================
Participant-directed funds
---------------------------------------------------------------------------------
Growth Government Nonpar-
and and Money Emerging Mercantile Inter- ticipant-
Balanced Income Corporate Market Growth Stock national directed
Fund Fund Bond Fund Fund Fund Fund Fund funds Total
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Total noninterest-
bearing cash $ 500 416 332 - 416 - - 20,908 22,572
Receivables:
Employer
contributions - - - - - 4,674,885 - - 4,674,885
Income 233 298 40,588 41,958 117 602,171 56 926 686,347
- -----------------------------------------------------------------------------------------------------------------------------
Total
receivables 233 298 40,588 41,958 117 5,277,056 56 926 5,361,232
- -----------------------------------------------------------------------------------------------------------------------------
Investments at
fair value:
Interest-bearing
cash (including
money market
funds) 49,792 117,142 27,861 8,526,761 58,363 858,759 25,584 242,354 9,906,616
Certificates of
deposit - - - 116,031 - - - - 116,031
Value of interest
in registered
investment
companies 17,809,662 24,444,078 5,934,925 - 6,145,390 - 1,561,088 - 55,895,143
Common stock - - - - - 83,677,634 - 1,656 83,679,290
Loans to
participants - - - - - - - 4,776,924 4,776,924
Other - - - - - - - 13,489 13,489
- -----------------------------------------------------------------------------------------------------------------------------
Total
investments 17,859,454 24,561,220 5,962,786 8,642,792 6,203,753 84,536,393 1,586,672 5,034,423 154,387,493
- -----------------------------------------------------------------------------------------------------------------------------
Assets
available for
plan benefits $17,860,187 24,561,934 6,003,706 8,684,750 6,204,286 89,813,449 1,586,728 5,056,257 159,771,297
=============================================================================================================================
See accompanying notes to financial statements.
</TABLE>
3
<PAGE> 7
<TABLE>
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Statement of Changes in Assets Available for Plan Benefits
Year ended December 31, 1996
<CAPTION>
================================================================================================================================
Participant-directed funds
----------------------------------------------------------------------------------
Growth Government Nonpar-
and and Money Small Cap Mercantile Inter- ticipant-
Balanced Income Corporate Market Equity Stock national directed
Fund Fund Bond Fund Fund Fund Fund Fund funds Total
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions
from:
Employer $ - - - - - 10,313,669 - - 10,313,669
Participants 1,593,743 3,214,338 648,110 1,021,747 1,873,718 2,973,250 921,583 - 12,246,489
- ---------------------------------------------------------------------------------------------------------------------------------
Total
contributions 1,593,743 3,214,338 648,110 1,021,747 1,873,718 13,286,919 921,583 - 22,560,158
- ---------------------------------------------------------------------------------------------------------------------------------
Earnings on
investments:
Interest:
Interest-
bearing cash
(including
money market
funds) 1,653 2,765 1,014 468,645 1,430 33,317 1,005 117,095 626,924
Certificates
of deposit - - - 3,487 - - - - 3,487
Loans to
participants - - - - - - - 542,902 542,902
- ---------------------------------------------------------------------------------------------------------------------------------
Total interest 1,653 2,765 1,014 472,132 1,430 33,317 1,005 659,997 1,173,313
- ---------------------------------------------------------------------------------------------------------------------------------
Common stock
dividends - - - - - 3,643,305 - - 3,643,305
Net appreciation
in fair value
of investments - - - 2,028 - 13,869,035 - 2 13,871,065
Net investment
gain from
registered
investment
companies 2,437,164 5,454,325 147,586 - 837,400 - 284,540 - 9,161,015
Other income 1,142 768 185 288 201 10,481 70 107,342 120,477
- ---------------------------------------------------------------------------------------------------------------------------------
Total additions 4,033,702 8,672,196 796,895 1,496,195 2,712,749 30,843,057 1,207,198 767,341 50,529,333
- ---------------------------------------------------------------------------------------------------------------------------------
Deductions:
Administrative
expenses 15,932 22,104 5,421 7,979 5,792 73,083 1,745 16,907 148,963
Benefit payments
to participants
or beneficiaries 1,063,229 1,437,697 511,676 3,058,860 516,888 10,449,445 195,983 326,539 17,560,317
- ---------------------------------------------------------------------------------------------------------------------------------
Total deductions 1,079,161 1,459,801 517,097 3,066,839 522,680 10,522,528 197,728 343,446 17,709,280
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
assets available
for plan
benefits prior
to transfers 2,954,541 7,212,395 279,798 (1,570,644) 2,190,069 20,320,529 1,009,470 423,895 32,820,053
Transfers to
the Plan 3,466,527 5,313,946 1,866,808 3,261,876 1,862,255 26,235,601 999,296 49,745 43,056,054
Interfund
transfers, net (468,420) (105,443) (108,689) (424,417) (212,003) (1,502,541) 410,827 2,410,686 -
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in
assets available
for plan benefits 5,952,648 12,420,898 2,037,917 1,266,815 3,840,321 45,053,589 2,419,593 2,884,326 75,876,107
Assets available
for plan benefits:
Beginning of
year 17,860,187 24,561,934 6,003,706 8,684,750 6,204,286 89,813,449 1,586,728 5,056,257 159,771,297
- ---------------------------------------------------------------------------------------------------------------------------------
End of year $23,812,835 36,982,832 8,041,623 9,951,565 10,044,607 134,867,038 4,006,321 7,940,583 235,647,404
=================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
4
<PAGE> 8
<TABLE>
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Statement of Changes in Assets Available for Plan Benefits
Year ended December 31, 1995
<CAPTION>
==============================================================================================================================
Participant-directed funds
---------------------------------------------------------------------------------
Growth Government Nonpar-
and and Money Emerging Mercantile Inter- ticipant-
Balanced Income Corporate Market Growth Stock national directed
Fund Fund Bond Fund Fund Fund Fund Fund funds Total
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Contributions
from:
Employer $ - - - - - 9,027,516 - - 9,027,516
Participants 1,324,342 2,185,608 484,992 635,686 1,618,040 2,360,093 737,611 (514) 9,345,858
- ------------------------------------------------------------------------------------------------------------------------------
Total
contributions 1,324,342 2,185,608 484,992 635,686 1,618,040 11,387,609 737,611 (514) 18,373,374
- -------------------------------------------------------------------------------------------------------------------------------
Earnings on
investments:
Interest:
Interest-
bearing cash
(including
money market
funds) 2,714 2,997 1,321 433,619 1,817 34,341 879 31,485 509,173
Certificates
of deposit - - - 12,311 - - - - 12,311
Loans to
participants - - - - - - - 460,630 460,630
-----------------------------------------------------------------------------------------------------------------------------
Total interest 2,714 2,997 1,321 445,930 1,817 34,341 879 492,115 982,114
- ------------------------------------------------------------------------------------------------------------------------------
Common stock
dividends - - - - - 2,053,330 - 10 2,053,340
Net appreciation
in fair value
of investments - - - 1,139 - 20,574,093 - 136,706 20,711,938
Net investment
gain from pooled
separate
accounts - - - - - - - 6,119 6,119
Net investment
gain from
registered
investment
companies 3,651,526 6,088,745 845,429 - 750,271 - 126,088 - 11,462,059
Other income 1,779 (455) 105 771 2,945 33,990 60 - 39,195
- -------------------------------------------------------------------------------------------------------------------------------
Total additions 4,980,361 8,276,895 1,331,847 1,083,526 2,373,073 34,083,363 864,638 634,436 53,628,139
- ------------------------------------------------------------------------------------------------------------------------------
Deductions:
Administrative
expenses 21,528 28,323 7,430 12,820 7,320 107,282 1,525 6,870 193,098
Benefit
payments to
participants or
beneficiaries 979,674 1,089,260 280,219 2,525,415 220,556 6,156,865 32,333 306,631 11,590,953
- ------------------------------------------------------------------------------------------------------------------------------
Total deductions 1,001,202 1,117,583 287,649 2,538,235 227,876 6,264,147 33,858 313,501 11,784,051
- ------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
assets available
for plan benefits
prior to transfers 3,979,159 7,159,312 1,044,198 (1,454,709) 2,145,197 27,819,216 830,780 320,935 41,844,088
Transfers to
the Plan 391,022 460,163 282,448 1,452,149 61,200 15,397,956 19,540 45,152 18,109,630
Interfund
transfers, net (2,579,772) (1,591,737) (545,609) (358,329) 370,486 2,849,298 736,408 1,119,255 -
- --------------------------------------------------------------------------------------------------------------------------------
Net increase
(decrease) in
assets
available for
plan benefits 1,790,409 6,027,738 781,037 (360,889) 2,576,883 46,066,470 1,586,728 1,485,342 59,953,718
Assets available
for plan benefits:
Beginning of year 16,069,778 18,534,196 5,222,669 9,045,639 3,627,403 43,746,979 - 3,570,915 99,817,579
- -------------------------------------------------------------------------------------------------------------------------------
End of year $17,860,187 24,561,934 6,003,706 8,684,750 6,204,286 89,813,449 1,586,728 5,056,257 159,771,297
================================================================================================================================
See accompanying notes to financial statements.
</TABLE>
5
<PAGE> 9
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Notes to Financial Statements
December 31, 1996 and 1995
================================================================================
(1) Description of the Plan
The following description of the Plan provides only general information.
Interested parties should refer to the plan agreement for a more
complete description of the Plan's provisions.
General
The Plan, which was adopted in 1969, is a defined contribution plan
which covers all employees of Mercantile Bancorporation Inc. and
subsidiaries (Mercantile) who have completed one year of eligible
service. The Plan is subject to the provisions of ERISA and structured
to incorporate the provisions available under Section 401(k) of the
Internal Revenue Code, which allows member and sponsor contributions to
be excluded from federal and state income taxation within certain
prescribed limits. The Plan Administrator, appointed by the Board of
Directors, manages and directs the operation of the Plan.
Contributions
Participants may contribute 1% to 15% of their annual compensation
(subject to federal limits) and may elect to have their contribution
invested in the following separate investment funds within the Plan:
* Balanced Fund, which invests in the Arch Balanced Portfolio. The
Arch Balanced Portfolio is a mutual fund that invests in fixed-
income securities and equity securities.
* Growth and Income Fund, which invests in the Arch Growth and
Income Equity Portfolio. The Arch Growth and Income Equity
Portfolio is a mutual fund that primarily invests in broadly
diversified equity securities.
* Government and Corporate Bond Fund, which invests in the Arch
Government and Corporate Bond Portfolio. The Arch Government and
Corporate Bond Portfolio is a mutual fund that primarily invests
in debt obligations with maturity dates of one year or more.
* Money Market Fund, which invests in the Arch Money Market
Portfolio Trust Shares. The Arch Money Market Portfolio Trust
Shares is a mutual fund that primarily invests in fixed income
obligations with maturity dates of less than one year.
* Small Cap Equity Fund (formerly Emerging Growth Fund), which
invests in the Arch Small Cap Equity Portfolio (formerly the Arch
Emerging Growth Portfolio). The Arch Small Cap Equity Portfolio
is a mutual fund that invests in common stocks of emerging or
established small-to-medium-sized companies.
* Mercantile Stock Fund, which invests in the common stock of
Mercantile Bancorporation Inc.
* International Fund, which invests in the Arch International Equity
Portfolio. The Arch International Equity Portfolio is a mutual
fund that invests in a diversified portfolio of international
stocks.
Mercantile's contribution has both a matching and incentive component.
As a matching component, Mercantile contributes 50% of a participant's
contribution up to a maximum employer contribution equal to 3% of a
participant's salary. Mercantile's incentive contribution is based on a
formula using a return-on-assets ratio. Incentive contributions cannot
exceed 6% of the total
(Continued)
6
<PAGE> 10
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Notes to Financial Statements
================================================================================
compensation paid to participants during a plan year. Both the matching
and the incentive contributions are invested in the Mercantile Stock Fund.
Participant Accounts
Each participant account is credited with the participant's contribution
and an allocation of employer contributions and Plan earnings net of
administrative expenses. Allocations are based on participant
compensation or account balances, as defined. The benefit to which a
participant is entitled is the benefit that can be provided from the
participant's account.
Nonparticipant-directed Funds
Included in nonparticipant-directed funds are a Loan Fund, Insurance
Fund, several temporary funds, and Suspense Fund. The Loan Fund allows
participating employees to borrow money, within specified limits, in the
form of interest-bearing promissory notes from the Plan to be repaid
over a period not to exceed five years for general loans or 10 years for
mortgage loans. The Insurance Fund relates only to certain employees
who were merged into the Plan via acquisition activity. The Insurance
Fund provides for the payment of a participant's life insurance premiums
via pre-tax contributions. The temporary funds represent suspense funds
utilized to capture and distribute transfers from plans merged into the
Plan in the current year. Participant withdrawals are paid from the
Suspense Fund, which receives cash from the various funds as payments
are approved.
Vesting
Participants are fully vested in their account balances, including both
employer match and incentive contributions.
Benefit Payments
Upon termination of employment, participants may elect to be paid the
balance of their account, either immediately or upon retirement, in a
lump sum or installments in accordance with plan provisions over a
period not to exceed 10 years.
(2) Summary of Significant Accounting Policies
Basis of Accounting
The accompanying financial statements have been prepared on an accrual
basis, with the exception of benefits which are recorded when paid, and
present the assets available for plan benefits and changes in those
assets. The Plan Administrator is required to make estimates and
assumptions that affect the reported amounts in the financial statements
and disclosure of contingent assets and liabilities. Actual results
could differ from those estimates.
Valuation of Investments
The Plan's investments are stated at fair value. Securities traded on a
national securities exchange, including Mercantile Bancorporation Inc.
common stock, are valued at the last reported sales price on the last
business day of the plan year.
Interest in registered investment companies represents units of
participation in Arch mutual funds. Interest-bearing cash represents
units of participation in the Arch Money Market Portfolio Trust Shares.
Units of Arch mutual funds and Arch Money Market Portfolio Shares are
valued at quoted
(Continued)
7
<PAGE> 11
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Notes to Financial Statements
================================================================================
market prices which represent the net asset value of shares held by the
Plan as provided by BYSIS Fund Services, the administrator of the Arch
Funds, Inc.
Loans to participants are valued at cost which approximates fair value.
Investment Transactions
Investment transactions are accounted for on the trade date (date the
order to buy or sell is executed). The realized gains or losses on
investments are determined principally using the average cost of the
individual security issue as a basis. Average cost is based on the
market value of the security at the beginning of the year and the
acquisition cost of any purchases made during the year.
Interest income is recorded on the accrual basis. Dividends are
recorded on the ex-dividend date. Uninvested moneys within each fund
are temporarily invested in the Arch Money Market Portfolio or the MTC
Master Money Market Trust.
Costs of Plan Administration
Fees and expenses incurred by the Trustee and the Plan's management in
the administration of the Plan are paid by Mercantile and from plan
assets. Expenses solely attributable to the investment of plan funds
shall be paid by plan assets.
Reclassification
Certain reclassifications of 1995 information have been made to conform
with 1996 presentation.
(3) Investments
Except for contracts held by an insurance company, the Plan's
investments are maintained in a trust fund managed by the Trustee on
behalf of the Plan. The following table presents the fair value of
investments at December 31, 1996 and 1995. Investments that represent
5% or more of the Plan's assets are separately identified:
<TABLE>
<CAPTION>
====================================================================================================================
1996 1995
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investments at fair value as determined by
quoted market price:
Interest in registered investment companies:
Arch Money Market Portfolio Trust Shares $ 10,568,413 9,906,616
Arch Balanced Portfolio 23,679,586 17,809,661
Arch Growth and Income Equity Portfolio 36,710,411 24,444,078
Other 23,587,743 13,641,404
Common stocks:
Mercantile Bancorporation Inc., 2,488,498 and
1,819,079 shares, respectively 127,846,585 83,677,634
Other - 1,656
- --------------------------------------------------------------------------------------------------------------------
222,392,738 149,481,049
Investments at estimated fair value 7,052,715 4,906,444
- --------------------------------------------------------------------------------------------------------------------
$229,445,453 154,387,493
====================================================================================================================
</TABLE>
(Continued)
8
<PAGE> 12
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Notes to Financial Statements
================================================================================
During 1996 and 1995, the Plan's investments, exclusive of investments
in registered investment companies, appreciated in fair value as
follows:
<TABLE>
<CAPTION>
====================================================================================================================
1996 1995
-------------------------- --------------------------
Realized Unrealized Realized Unrealized
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investments at fair value as determined
by quoted market price -
common stocks $173,587 13,695,448 821,356 19,889,443
Investments at estimated fair value -
certificates of deposit 914 1,116 1,139 -
- --------------------------------------------------------------------------------------------------------------------
$174,501 13,696,564 822,495 19,889,443
====================================================================================================================
</TABLE>
(4) Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of assets available for plan benefits
per the financial statements to Form 5500:
<TABLE>
<CAPTION>
====================================================================================================================
1996 1995
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Assets available for plan benefits per
the financial statements $235,647,404 159,771,297
Amounts allocated to withdrawing participants (2,688,173) (196,790)
- --------------------------------------------------------------------------------------------------------------------
Assets available for plan benefits per the Form 5500 $232,959,231 159,574,507
====================================================================================================================
</TABLE>
The following is a reconciliation of benefits paid to participants per
the financial statements to Form 5500:
<TABLE>
<CAPTION>
====================================================================================================================
1996 1995
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Benefits paid to participants per
the financial statements $17,560,317 11,590,953
Add amounts allocated to withdrawing
participants at December 31, 1996 2,688,173 196,790
Less amounts allocated to withdrawing
participants at December 31, 1995 (196,790) (1,553,578)
- --------------------------------------------------------------------------------------------------------------------
Benefits paid to participants per the Form 5500 $20,051,700 10,234,165
====================================================================================================================
</TABLE>
(Continued)
9
<PAGE> 13
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Notes to Financial Statements
================================================================================
Amounts allocated to withdrawing participants are recorded on the Form
5500 for benefit claims that have been processed and approved for
payment prior to December 31 but not yet paid as of that date.
(5) Transfers to the Plan
During 1996 and 1995, the following plans merged into the Plan. The
mergers were related to Mercantile's corporate acquisitions:
<TABLE>
<CAPTION>
====================================================================================================================
Effective Total
date plan assets
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
1996 plan mergers:
TCBankshares, Inc. 401(k) Profit Sharing Plan January 1, 1996 $ 2,251,672
First Federal Savings Bank of Iowa Retirement
Savings Plan January 1, 1996 4,881,151
Southwest Bancshares, Inc. 401(k) Plan January 1, 1996 651,083
Security Bank of Conway Profit Sharing Plan March 1, 1996 355,763
Hawkeye Bank Corporation Employees Stock
Ownership Plan and Hawkeye Bank
Corporation Employees Stock Ownership Plan July 1, 1996 31,545,745
First National Bank of Sterling Rock Falls
Savings and Retirement Plan July 1, 1996 2,213,741
Metro Savings Bank F.S.B. Profit Sharing Plan
and Metro Savings Bank F.S.B. Employee
Stock Ownership Plan July 1, 1996 1,156,899
- --------------------------------------------------------------------------------------------------------------------
$43,056,054
====================================================================================================================
1995 plan mergers:
Wedge Group of Community Banks 401(k) Plan July 1, 1995 1,682,112
Central Mortgage Bancshares, Inc. Employee
Stock Ownership Plan July 1, 1995 16,427,518
- --------------------------------------------------------------------------------------------------------------------
$18,109,630
====================================================================================================================
</TABLE>
(6) Related Party Transactions
On various dates during 1996, the Plan purchased and sold shares of
Mercantile Bancorporation Inc. common stock at fair market value for
investment in the Plan's Mercantile Stock Fund.
Certain Plan investments are shares of mutual funds managed by
Mercantile Bank N.A. Mercantile Bank N.A. is the trustee of the Plan
and, therefore, these transactions qualify as party-in-interest
transactions. Mercantile Bank N.A., the trustee of the Plan, is a
wholly owned subsidiary of Mercantile Bancorporation Inc.
(Continued)
10
<PAGE> 14
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Notes to Financial Statements
================================================================================
(7) Income Tax Status
The Internal Revenue Service has determined and informed Mercantile by a
letter dated August 7, 1996, that the Plan and related trust are
designed in accordance with applicable sections of the Internal Revenue
Code.
(8) Plan Termination
While Mercantile has not expressed any intent to terminate the Plan or
discontinue contributions, it may do so at any time, subject to the
provisions set forth in ERISA.
(9) Subsequent Events (Unaudited)
In August 1996, Peoples State Bank merged with Mercantile. In
conjunction with the merger, the Peoples State Bank Employee Savings and
Profit Sharing Plan (Peoples Plan) merged into the Plan effective
January 1, 1997. The fair value of the Peoples Plan's assets was
approximately $1,067,000 at December 31, 1996.
In November 1996, First Financial Corporation of America merged with
Mercantile. In connection with the merger, the FNB Profit Sharing Trust
(First Financial Plan) merged into the Plan effective January 1, 1997.
The fair value of the First Financial Plan's assets was approximately
$1,719,000 at December 31, 1996.
In November 1996, Today's Bancorp, Inc. merged with Mercantile. In
connection with the merger, the Today's Bancorp, Inc. Employees Stock
Ownership Plan (Today's Plan) merged into the Plan effective March 1,
1997. The fair value of the Today's Plan's assets was approximately
$3,810,000 at February 28, 1997.
In March 1997, Regional Bancshares, Inc. merged with Mercantile. In
connection with the merger, the Bank of Alton 401(k) Plan (Regional
Plan) will be merged into the Plan effective July 1, 1997. The fair
value of the Regional Plan's assets was approximately $11,311,000 at
April 30, 1997.
In April 1997, Mark Twain Bancshares, Inc. merged with Mercantile. In
connection with the merger, the Mark Twain Savings Challenge Plan (Mark
Twain Plan) will be merged into the Plan effective July 1, 1997. The
fair value of the Mark Twain Plan's assets was approximately $39,903,000
at May 31, 1997.
11
<PAGE> 15
Schedule 1
----------
<TABLE>
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Item 27a - Schedule of Assets Held for Investment Purposes
December 31, 1996
<CAPTION>
=======================================================================================================================
Shares or Current
units Cost value
- -----------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Cash equivalents:
10,568,413<F*> Arch Money Market Portfolio Trust
Shares $ 10,568,413 10,568,413
1,799,105<F*> MTC Master Money Market Trust
Shares 1,799,105 1,799,105
33,517 Certificates of deposit 32,401 33,517
- -----------------------------------------------------------------------------------------------------------------------
12,399,919 12,401,035
- -----------------------------------------------------------------------------------------------------------------------
Registered investment companies:
337,110<F*> Arch International Equity Portfolio 3,641,828 3,934,068
790,169<F*> Arch Small Cap Equity Portfolio 9,583,606 9,900,814
782,080<F*> Arch Government and Corporate Bond
Portfolio 8,002,624 7,953,756
2,043,105<F*> Arch Balanced Portfolio 21,653,266 23,679,586
2,172,214<F*> Arch Growth and Income Equity 31,853,810 36,710,411
Portfolio
- -----------------------------------------------------------------------------------------------------------------------
74,735,134 82,178,635
- -----------------------------------------------------------------------------------------------------------------------
2,488,498<F*> Mercantile Bancorporation Inc.
Common Stock 63,045,252 127,846,585
7,005,709 Loans to participants - general purpose
and residential loans (interest rates
range from 10% to 10.5%) 7,005,709 7,005,709
150,024 Equitable Life Insurance 7,370 13,489
- -----------------------------------------------------------------------------------------------------------------------
Total assets held for
investment purposes $157,193,384 229,445,453
=======================================================================================================================
<FN>
<F*> Represents party-in-interest transactions allowable under ERISA regulations.
See accompanying independent auditors' report.
</TABLE>
12
<PAGE> 16
Schedule 2
----------
<TABLE>
MERCANTILE BANCORPORATION INC.
HORIZON INVESTMENT AND SAVINGS PLAN AND TRUST
Item 27d - Schedule of Reportable Transactions
Year ended December 31, 1996
<CAPTION>
================================================================================================================================
Expenses
incurred
Identity of Purchase Selling Lease with
party involved Description of asset price price rental transaction
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Arch Money Market <F*> Purchases of the Arch Money
Portfolio Trust Market Portfolio Trust Shares $73,526,485 - - -
Shares
Arch Money Market <F*> Sales of the Arch Money
Portfolio Trust Market Portfolio Trust Shares - 73,332,690 - -
Shares
MTC Master Money <F*> Purchases of the MTC
Market Account Master Money Market Account 5,941,913 - - -
MTC Master Money <F*> Purchases of the MTC
Market Account Master Money Market Account - 5,688,383 - -
Mercantile Bancorpora- <F*> Purchases of Mercantile
tion Inc. Bancorporation Inc. common stock 11,951,822 - - 11,024
Arch Balanced Portfolio <F*> Purchases of the Arch Balanced
Portfolio shares 6,604,852 - - -
Arch Balanced Portfolio <F*> Sales of the Arch Balanced
Portfolio shares - 1,192,000 - -
Arch Small Capital Equity <F*> Purchases of Arch Small Cap
Portfolio Equity Portfolio Shares 4,109,006 - - -
Arch Small Capital Equity <F*> Sales of Arch Small Cap
Portfolio Equity Portfolio Shares - 588,000 - -
Arch Government and <F*> Purchases of the Arch Government
Corporate Bond and Corporate Bond Portfolio shares 3,133,187 - - -
Portfolio
Arch Government and <F*> Sales of the Arch Government
Corporate Bond and Corporate Bond Portfolio shares - 836,398 - -
Portfolio
Arch International Equity <F*> Purchases of Arch International
Portfolio shares Equity Portfolio shares 2,322,214 - - -
Arch International Equity <F*> Sales of Arch International
Portfolio shares Equity Portfolio shares - 128,000 - -
Arch Growth and Income <F*> Purchases of Arch Growth
Equity Portfolio and Income Equity Portfolio shares 11,372,942 - - -
Arch Growth and Income <F*> Sales of Arch Growth
Equity Portfolio and Income Equity Portfolio shares - 1,239,000 - -
====================================================================================================================================
<CAPTION>
================================================================================================================================
Current value
Cost of asset on
Identity of of transaction Net gain
party involved Description of asset assets date or (loss)
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Arch Money Market <F*> Purchases of the Arch Money
Portfolio Trust Market Portfolio Trust Shares 73,526,485 73,526,485 -
Shares
Arch Money Market <F*> Sales of the Arch Money
Portfolio Trust Market Portfolio Trust Shares 73,332,690 73,332,690 -
Shares
MTC Master Money <F*> Purchases of the MTC
Market Account Master Money Market Account 5,941,913 5,941,913 -
MTC Master Money <F*> Purchases of the MTC
Market Account Master Money Market Account 5,688,383 5,688,383 -
Mercantile Bancorpora- <F*> Purchases of Mercantile
tion Inc. Bancorporation Inc. common stock 11,951,822 11,951,822 -
Arch Balanced Portfolio <F*> Purchases of the Arch Balanced
Portfolio shares 6,604,852 6,604,852 -
Arch Balanced Portfolio <F*> Sales of the Arch Balanced
Portfolio shares 1,156,862 1,192,000 35,138
Arch Small Capital Equity <F*> Purchases of Arch Small Cap
Portfolio Equity Portfolio Shares 4,109,006 4,109,006 -
Arch Small Capital Equity <F*> Sales of Arch Small Cap
Portfolio Equity Portfolio Shares 563,833 588,000 24,167
Arch Government and <F*> Purchases of the Arch Government
Corporate Bond and Corporate Bond Portfolio shares 3,133,187 3,133,187 -
Portfolio
Arch Government and <F*> Sales of the Arch Government
Corporate Bond and Corporate Bond Portfolio shares 875,678 836,398 (39,280)
Portfolio
Arch International Equity <F*> Purchases of Arch International
Portfolio shares Equity Portfolio shares 2,322,214 2,322,214 -
Arch International Equity <F*> Sales of Arch International
Portfolio shares Equity Portfolio shares 121,919 128,000 6,081
Arch Growth and Income <F*> Purchases of Arch Growth
Equity Portfolio and Income Equity Portfolio shares 11,372,942 11,372,942 -
Arch Growth and Income <F*> Sales of Arch Growth
Equity Portfolio and Income Equity Portfolio shares 1,142,611 1,239,000 96,389
=================================================================================================================================
<FN>
<F*> Represents party-in-interest transaction allowable under ERISA regulations.
See Accompanying independent auditors' report.
</TABLE>
13
