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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
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) September 11, 1997
------------------
United Bankshares, Inc.
-----------------------
(Exact name of registrant as specified in its charter)
West Virginia 0-13322 55-0641179
------------- ------- ----------
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File No.) Identification No.)
300 United Center
500 Virginia Street, East
Charleston, West Virginia 25301
------------------------- -----
(Address of principal executive offices) Zip Code
(304) 424-8761
--------------
(Registrant's telephone number, including area code)
Not Applicable
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(Former name or address, if changed since last report)
<PAGE>
Item 5. Other Events
------------
After the close of business on September 10, 1997, United Bankshares, Inc.
("United"), a West Virginia corporation, and George Mason Bankshares, Inc.
("George Mason"), a Virginia corporation, entered into an Agreement and Plan of
Merger (the "Agreement") which sets forth the terms and conditions under which
George Mason would merge with and into United (the "Merger") for a tax-free
merger of the two companies.
The Agreement provides that upon consummation of the Merger, each
outstanding share of common stock of George Mason, par value $1.11 per share,
(other than any shares held by United other than in a fiduciary capacity or in
satisfaction of a debt previously contracted) shall, by virtue of the Merger and
without any action on the part of the holder thereof, be converted into the
right to receive 0.85 share of United common stock, par value $2.50 per share,
plus the right to receive cash in lieu of any fractional share without interest.
In connection with the Merger Agreement, United and George Mason entered
into a Stock Option Agreement, dated as of September 11, 1997, (the "Option
Agreement"). Pursuant to the Option Agreement, George Mason granted United an
option (the "Option") to purchase, subject to adjustments in certain
circumstances, up to 1,018,000 fully paid and non-assessable shares of George
Mason common stock at a price per share of $32.375. Under certain circumstances,
United could elect to sell the Option, and any shares previously purchased
thereunder, back to George Mason at a price generally reflecting the price
offered or paid by a third-party acquirer for other shares of George Mason.
Alternatively, under certain circumstances, United could surrender the Option
for a cash payment from George Mason of $9,000,000.
In connection with the execution of the Agreement, United Bank ("UB"), a
wholly-owned subsidiary of United, and George Mason Bank ("GMB"), a wholly-owned
subsidiary of George Mason, will enter into an Agreement and Plan of Merger (the
"Bank Agreement"). The Bank Agreement will set forth the terms and conditions,
including the Merger, pursuant to which UB would merge with GMB (the "Bank
Merger").
Consummation of the Merger is subject to approval of the shareholders of
United and George Mason and the receipt of all required regulatory approvals, as
well as other customary conditions.
The Agreement permits George Mason to continue to pay its regular quarterly
dividends of $0.14 per share of George Mason common stock prior to the
consummation of the Merger, but otherwise prohibits the payment of dividends on
George Mason common stock. Pursuant to the Agreement, George Mason will adjust
the record and payment dates of its regular quarterly dividends to coincide with
the record and payment dates for United's regular quarterly dividends. The
record dates for United's regular quarterly dividends occur in mid-September,
mid-December, mid-March and mid-June, and the respective payment dates occur in
the first few days of the succeeding month.
The Agreement contains a provision that United must pay George Mason
$9,000,000 in the event that certain events occur prior to a termination of the
Agreement in accordance with its terms.
2
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
------------------------------------------------------------------
(a) Not Applicable.
(b) Pro Forma Financial Information
-------------------------------
<TABLE>
<CAPTION>
Page No.
--------
<S> <C>
(1) Unaudited Pro Forma Condensed Financial Statements of United
Bankshares, Inc. and George Mason Bankshares, Inc.
Pro Forma Condensed Consolidated Balance Sheets as of
June 30, 1997..........................................................6
Pro Forma Condensed Consolidated Balance Sheets as of
December 31, 1996......................................................7
Pro Forma Condensed Consolidated Balance Sheets as of
December 31, 1995......................................................8
Pro Forma Condensed Consolidated Statements of Income for the
Six Months Ended June 30, 1997.........................................9
Pro Forma Condensed Consolidated Statements of Income for the
Year Ended December 31, 1996..........................................10
Pro Forma Condensed Consolidated Statements of Income for the
Year Ended December 31, 1995..........................................11
Pro Forma Condensed Consolidated Statements of Income for the
Year Ended December 31, 1994..........................................12
Notes to Unaudited Pro Forma Condensed Consolidated Financial
Statements ...........................................................13
</TABLE>
(c) Not Applicable
3
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
UNITED BANKSHARES, INC.
Date November 7, 1997 By /s/ Steven E. Wilson
------------------- -------------------------------
Steven E. Wilson
Its Executive Vice President,
Secretary and Chief Financial
Officer
4
<PAGE>
Unaudited Pro Forma Condensed Financial Statements
(As of June 30, 1997, and December 31, 1996 and 1995
and for the Six Months Ended June 30, 1997, and the
Years Ended December 31, 1996, 1995 and 1994)
5
<PAGE>
PRO FORMA CONDENSED BALANCE SHEET (UNAUDITED)
UNITED BANKSHARES, INC. AND SUBSIDIARIES
June 30, 1997
(in thousands)
<TABLE>
<CAPTION>
As Reported United &
-------------------------- George Mason
George Pro Forma Pro Forma
United Mason Adjustments Consolidated
----------- ----------- ----------- ------------
<S> <C>
ASSETS
Cash and due from bank $ 86,805 $ 42,637 $ $ 129,442
Interest-bearing deposits with other banks 358 358
Federal funds sold 62,300 62,300
Investment securities 383,774 358,240 742,014
Loans (net of unearned income) 1,840,686 484,602 2,325,288
Less: allowance for loan losses (22,249) (5,657) (27,906)
----------- ----------- ----------- -----------
Net loans 1,818,437 478,945 2,297,382
Bank premises and equipment 33,294 9,862 43,156
Other assets 50,115 11,309 61,424
----------- ----------- ----------- -----------
Total Assets $ 2,372,783 $ 963,293 $ 0 $ 3,336,076
=========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits $ 249,144 $ 141,006 $ $ 390,150
Interest-bearing deposits 1,621,351 624,047 2,245,398
----------- ----------- ----------- -----------
Total deposits 1,870,495 765,053 2,635,548
Short-term borrowings 114,646 120,201 234,847
Federal Home Loan Bank borrowings 90,249 3,500 93,749
Other liabilities 32,957 7,035 39,992
----------- ----------- ----------- -----------
Total Liabilities 2,108,347 895,789 3,004,136
Stockholders' equity:
Common stock 38,238 5,640 5,157 (1) 49,035
Surplus 41,302 39,226 (14,201)(1) 66,327
Retained earnings 193,812 23,496 217,308
Net unrealized holding gain on AFS securities 1,647 (858) 789
Treasury stock (10,563) 9,044 (1) (1,519)
----------- ----------- ----------- -----------
Total Stockholders' Equity 264,436 67,504 0 331,940
----------- ----------- ----------- -----------
Total Liabilities and
Stockholders' Equity $ 2,372,783 $ 963,293 $ 0 $ 3,336,076
=========== =========== =========== ===========
</TABLE>
6
<PAGE>
PRO FORMA CONDENSED BALANCE SHEET (UNAUDITED)
UNITED BANKSHARES, INC. AND SUBSIDIARIES
December 31, 1996
(in thousands)
<TABLE>
<CAPTION>
As Reported United &
--------------------------- George Mason
George Pro Forma Pro Forma
United Mason Adjustments Consolidated
----------- ----------- ----------- ------------
<S> <C>
ASSETS
Cash and due from bank $ 86,328 $ 41,158 $ $ 127,486
Interest-bearing deposits with other banks 195 195
Federal funds sold 2,997 23,800 26,797
Investment securities 332,331 345,433 677,764
Loans (net of unearned income) 1,847,605 446,596 2,294,201
Less: allowance for loan losses (22,283) (5,659) (27,942)
----------- ----------- ---------- -----------
Net loans 1,825,322 440,937 2,266,259
Bank premises and equipment 33,550 10,019 43,569
Other assets 46,154 11,123 57,277
----------- ----------- ---------- -----------
Total Assets $ 2,326,877 $ 872,470 $ 0 $ 3,199,347
=========== =========== ========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits $ 261,048 $ 132,415 $ $ 393,463
Interest-bearing deposits 1,566,506 561,179 2,127,685
----------- ----------- ---------- -----------
Total deposits 1,827,554 693,594 2,521,148
Short-term borrowings 75,582 101,898 177,480
Federal Home Loan Bank borrowings 132,631 4,000 136,631
Other liabilities 32,596 8,634 41,230
----------- ----------- ---------- -----------
Total Liabilities 2,068,363 808,126 2,876,489
Stockholders' equity:
Common stock 38,238 5,581 5,104 (1) 48,923
Surplus 41,438 38,472 (9,383)(1) 70,527
Retained earnings 183,539 21,094 204,633
Net unrealized holding gain on AFS securities 954 (803) 151
Treasury stock (5,655) 4,279 (1) (1,376)
----------- ----------- ---------- -----------
Total Stockholders' Equity 258,514 64,344 0 322,858
----------- ----------- ---------- -----------
Total Liabilities and
Stockholders' Equity $ 2,326,877 $ 872,470 $ 0 $ 3,199,347
=========== =========== ========== ===========
</TABLE>
7
<PAGE>
PRO FORMA CONDENSED BALANCE SHEET (UNAUDITED)
UNITED BANKSHARES, INC. AND SUBSIDIARIES
December 31, 1995
(in thousands)
<TABLE>
<CAPTION>
As Reported United &
--------------------------- George Mason
George Pro Forma Pro Forma
United Mason Adjustments Consolidated
----------- ----------- ----------- ------------
<S> <C>
ASSETS
Cash and due from bank $ 85,864 $ 34,639 $ $ 120,503
Interest-bearing deposits with other banks 13,113 13,113
Federal funds sold 15,000 15,000
Investment securities 321,019 261,934 582,953
Loans (net of unearned income) 1,732,986 355,040 2,088,026
Less: allowance for loan losses (22,545) (5,529) (28,074)
----------- ----------- ---------- -----------
Net loans 1,710,441 349,511 2,059,952
Bank premises and equipment 34,766 9,841 44,607
Other assets 45,027 8,671 53,698
----------- ----------- ---------- -----------
Total Assets $ 2,210,230 $ 679,596 $ 0 $ 2,889,826
=========== =========== ========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Demand deposits $ 252,627 $ 116,699 $ $ 369,326
Interest-bearing deposits 1,521,972 437,765 1,959,737
----------- ----------- ---------- -----------
Total deposits 1,774,599 554,464 2,329,063
Short-term borrowings 82,167 55,747 137,914
Federal Home Loan Bank borrowings 75,497 5,000 80,497
Other liabilities 28,733 6,458 35,191
----------- ----------- ---------- -----------
Total Liabilities 1,960,996 621,669 2,582,665
Stockholders' equity:
Common stock 38,238 5,278 4,826 (1) 48,342
Surplus 41,861 35,523 (7,142)(1) 70,242
Retained earnings 171,256 16,416 187,672
Net unrealized holding gain on AFS securities 1,409 752 2,161
Treasury stock (3,530) (42) 2,316(1) (1,256)
----------- ----------- ---------- -----------
Total Stockholders' Equity 249,234 57,927 0 307,161
----------- ----------- ---------- -----------
Total Liabilities and
Stockholders' Equity $ 2,210,230 $ 679,596 $ 0 $ 2,889,826
=========== =========== ========== ===========
</TABLE>
8
<PAGE>
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
UNITED BANKSHARES, INC. AND SUBSIDIARIES
For the Six Months Ended June 30, 1997
(Dollars in thousands, except per share)
<TABLE>
<CAPTION>
As Reported United &
-------------------------- George Mason
George Pro Forma Pro Forma
United Mason Adjustments Consolidated
----------- ----------- ----------- ------------
<S> <C>
Interest income $ 89,645 $ 30,603 $ $ 120,248
Interest expense 39,106 15,387 54,493
----------- ----------- ----------- -----------
Net interest income 50,539 15,216 65,755
Provision for possible loan losses 1,150 12 1,162
----------- ----------- ----------- -----------
Net interest income after provision
for loan losses 49,389 15,204 64,593
Other income 8,284 7,320 15,604
Other expenses 27,169 16,953 44,122
----------- ----------- ----------- -----------
Income before income taxes 30,504 5,571 36,075
Income taxes 10,336 1,749 12,085
----------- ----------- ----------- -----------
Net income $ 20,168 $ 3,822 $ $ 23,990
=========== =========== =========== ===========
Earnings per common share: $1.33 $0.73 $1.22
--------------------------
Average outstanding shares 15,125,204 5,214,000 19,615,546
</TABLE>
9
<PAGE>
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
UNITED BANKSHARES, INC. AND SUBSIDIARIES
For the Year Ended December 31, 1996
(Dollars in thousands, except per share)
<TABLE>
<CAPTION>
As Reported United &
-------------------------- George Mason
George Pro Forma Pro Forma
United Mason Adjustments Consolidated
----------- ----------- ----------- ------------
<S> <C>
Interest income $ 172,358 $ 53,727 $ $ 226,085
Interest expense 73,185 26,264 99,449
----------- ----------- ---------- -----------
Net interest income 99,173 27,463 126,636
Provision for possible loan losses 2,610 181 2,791
----------- ----------- ---------- -----------
Net interest income after provision
for loan losses 96,563 27,282 123,845
Other income 14,189 14,852 29,041
Other expenses 63,549 32,179 95,728
----------- ----------- ---------- -----------
Income before income taxes 47,203 9,955 57,158
Income taxes 16,691 3,072 19,763
----------- ----------- ---------- -----------
Net income $ 30,512 $ 6,883 $ $ 37,395
=========== =========== ========== ===========
Earnings per common share: $2.00 $1.34 $1.90
--------------------------
Average outstanding shares 15,253,356 5,137,000 19,659,642
</TABLE>
10
<PAGE>
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
UNITED BANKSHARES, INC. AND SUBSIDIARIES
For the Year Ended December 31, 1995
(Dollars in thousands, except per share)
<TABLE>
<CAPTION>
As Reported United &
------------------------- George Mason
George Pro Forma Pro Forma
United Mason Adjustments Consolidated
----------- ----------- ----------- ------------
<S> <C>
Interest income $ 165,815 $ 44,119 $ $ 209,934
Interest expense 70,167 19,949 90,116
----------- ----------- ---------- -----------
Net interest income 95,648 24,170 119,818
Provision for possible loan losses 2,320 18 2,338
----------- ----------- ---------- -----------
Net interest income after provision
for loan losses 93,328 24,152 117,480
Other income 14,752 10,359 25,111
Other expenses 57,481 26,124 83,605
----------- ----------- ---------- -----------
Income before income taxes 50,599 8,387 58,986
Income taxes 17,782 2,095 19,877
----------- ----------- ---------- -----------
Net income $ 32,817 $ 6,292 $ $ 39,109
=========== =========== ========== ===========
Earnings per common share: $2.18 $1.28 $2.02
--------------------------
Average outstanding shares 15,067,286 4,922,000 19,404,700
</TABLE>
11
<PAGE>
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
UNITED BANKSHARES, INC. AND SUBSIDIARIES
For the Year Ended December 31, 1994
(Dollars in thousands, except per share)
<TABLE>
<CAPTION>
As Reported United &
------------------------- George Mason
George Pro Forma Pro Forma
United Mason Adjustments Consolidated
----------- ----------- ----------- ------------
<S> <C>
Interest income $ 147,637 $ 33,659 $ $ 181,296
Interest expense 55,672 11,627 67,299
----------- ----------- ---------- -----------
Net interest income 91,965 22,032 113,997
Provision for possible loan losses 2,202 167 2,369
----------- ----------- ---------- -----------
Net interest income after provision
for loan losses 89,763 21,865 111,628
Other income 12,238 5,390 17,628
Other expenses 55,908 20,453 76,361
----------- ----------- ---------- -----------
Income before income taxes 46,093 6,802 52,895
Income taxes 15,709 1,830 17,539
----------- ----------- ---------- -----------
Net income $ 30,384 $4,972 $ $ 35,356
=========== =========== ========== ===========
Earnings per common share: $2.01 $1.04 $1.82
--------------------------
Average outstanding shares 15,131,766 4,794,000 19,383,437
</TABLE>
12
<PAGE>
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
UNITED BANKSHARES, INC. AND SUBSIDIARIES
Notes to Pro Forma Condensed Balance Sheets
- -------------------------------------------
1) The stockholders' equity accounts have been adjusted to reflect the
issuance of 0.85 share of United common stock, $2.50 par value for each of
the outstanding shares of George Mason common stock. Treasury stock has
been adjusted for the reissuance of all but 50 thousand shares at each
respective date which are presumed to be retained for United's incentive
stock option programs and other employee benefit plans.
NOTE: The effect of United's acquisition of First Patriot Bankshares
Corporation, Reston, Virginia on August 1, 1997, has not been
reflected in the accompanying unaudited pro forma condensed
consolidated financial statements. If the effect had been included in
the accompanying unaudited pro forma condensed consolidated financial
statements, the results would not be materially different than those
presented herein.
13
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