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<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_________________________
FORM 8-K/A
(Amendment No. 1)
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 15, 1999
-----------------------------
NBC Capital Corporation
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Mississippi 0-12885 64-0694755
- --------------------------------------------------------------------------------
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
NBC Plaza, Starkville, Mississippi 39759
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (662) 343-1341
-------------------------
Not applicable
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
-1-
<PAGE>
INFORMATION TO BE INCLUDED IN THE REPORT
NBC Capital Corporation (the "Registrant") is filing this Amendment No. 1
to its Current Report on Form 8-K filed with the Securities and Exchange
Commission on September 15, 1999 (the "Original Report") for the purpose of
filing the financial statements of the business acquired and the pro forma
financial information that were omitted from the Original Report as permitted by
Items 7(a)(4) and 7(b)(2) of Form 8-K.
Item 7. Financial Statements, Pro Forma Financial Information
(a) Financial Statements of the business acquired.
FFBS BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEET
JUNE 30, 1999
(Dollars in Thousands, Except Per Share Amounts)
ASSETS
Cash $ 2,822
Interest-bearing deposits 25,400
---------
Total cash and cash equivalents 28,222
Securities 31,041
Federal Home Loan Bank stock 900
Loans receivable 94,323
Accrued interest receivable 1,023
Premises and equipment 1,824
Other assets 204
---------
Total Assets $ 157,537
=========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 123,610
Accrued interest payable on deposits 947
Borrowed funds 8,350
Accrued expenses and other liabilities 520
---------
Total liabilities 133,427
---------
Stockholders' Equity:
Cumulative preferred stock - $.01 par value, 500,000 shares
authorized, shares issued and outstanding - none
-2-
<PAGE>
FFBS BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED BALANCE SHEET
JUNE 30, 1999
(Dollars in Thousands, Except Per Share Amounts)
(cont.)
Common stock - par value $.01 per share, 2,000,000 shares
authorized; 1,582,271 issued and outstanding 16
Additional paid-in capital 15,794
Retained earnings 9,036
Unearned compensation (79)
Accumulated other comprehensive income (290)
Loan receivable from ESOP (367)
--------
Total stockholders' equity 24,110
--------
Total Liabilities and Stockholder's Equity $157,537
========
The accompanying notes are an integral part of this statement.
-3-
<PAGE>
FFBS BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED JUNE 30, 1999
(Dollars in Thousands, Except Per Share Amounts)
INTEREST INCOME
Interest and fees on loans $ 8,182
Interest on mortgage-backed and related securities 793
Interest on investment securities 715
FHLB stock dividends 49
Interest on deposits due from banks 1,247
---------
10,986
INTEREST EXPENSE
Interest on deposits 5,911
Interest on borrowed funds 483
6,394
---------
Net interest income 4,592
Provision for loan losses -
---------
Net interest income after provision for loan losses 4,592
NONINTEREST INCOME
Loan fees 217
NOW account fees 310
Other 228
---------
755
---------
NONINTEREST EXPENSE
Compensation and benefits 1,881
Occupancy expense 140
Furniture and equipment expense 73
Deposit insurance premiums 70
Data processing 196
Other 804
---------
3,164
---------
Income before income taxes 2,183
Provision for income taxes 741
---------
Net Income $ 1,442
=========
Net income per share:
Basic $ .95
Diluted .93
The accompanying notes are an integral part of this statement.
-4-
<PAGE>
FFBS BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
YEAR ENDED JUNE 30, 1999
(Dollars in Thousands, Except Per Share Amounts)
<TABLE>
<CAPTION>
Accumulated
Other Loan
Compre- Additional Unearned Compre- Receivable
hensive Common Paid-in Retained Compen- sive From
Treasury Income Stock Capital Earnings sation Income ESOP
---------- ------- ---------- ---------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at July 1, 1998 $ 16 $ 15,457 $ 8,485 $ (132) $ (19) $ (551)
Comprehensive income:
Net income for the year
ended June 30, 1999 $ 1,442 - - 1,442 - - -
Net change in unrealized gain (loss)
on available-for-sale securities,
net of tax (271) - - - - (271) -
---------
Total comprehensive income $ 1,171
=========
Cash dividends, $.60 per share - - (891) - - -
Amortization of unearned
compensation - - - 53 - -
Stock options exercised - - 64 - - - -
Reduction of ESOP loan - - - - - - 184
Excess of fair market value of
allocated ESOP shares over cost - 273 - - - -
------ --------- --------- ------- ----------- ----------
Balance at June 30, 1999 $ 16 $ 15,794 $ 9,036 $ (79) $ (290) $ (367)
====== ========= ========= ======= =========== ==========
<CAPTION>
Treasury
Stock Total
-------- --------
<S> <C> <C>
Balance at July 1, 1998 $ (2) $23,254
Comprehensive income:
Net income for the year
ended June 30, 1999 - 1,442
Net change in unrealized gain (loss)
on available-for-sale securities,
net of tax - (271)
Total comprehensive income
Cash dividends, $.60 per share - (891)
Amortization of unearned
compensation - 53
Stock options exercised 2 66
Reduction of ESOP loan - 184
Excess of fair market value of
allocated ESOP shares over cost - 273
-------- -------
Balance at June 30, 1999 $ - $24,110
======== =======
</TABLE>
The accompanying notes are an integral part of this statement.
-5-
<PAGE>
FFBS BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1999
(Dollars in Thousands)
<TABLE>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,442
Adjustments to reconcile net earnings to net cash:
Depreciation 115
Amortization and accretion, net 97
Provision for loan losses -
FHLB stock dividends (49)
Deferred income taxes (benefit) (86)
Decrease in accrued interest receivable 257
Increase in other assets (123)
Increase in accrued interest payable on deposits 55
Increase in accrued expenses and other liabilities 20
Amortization of unearned compensation 53
Excess of fair market value of allocated ESOP
shares over cost 273
----------
Net cash provided by operating activities 2,054
----------
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in loans 4,385
Purchases of investment securities (5,552)
Proceeds from maturities and calls of investment securities 13,125
Sale of foreclosed real estate properties 210
Additions of properties and equipment (33)
Principal repayments of MBS and related securities 7,307
Purchase of MBS and related securities (12,944)
Repayment of ESOP loan 184
----------
Net cash provided by investing activities 6,682
----------
CASH FLOWS FROM FINANCING ACTIVITIES
Exercise of stock options $ 66
Increase in deposits 9,072
Net decrease in FHLB borrowings (2,611)
Payment of dividends on common stock (1,362)
----------
Net cash provided by financing activities 5,165
----------
</TABLE>
-6-
<PAGE>
FFBS BANCORP, INC. AND SUBSIDIARY
UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 1999
(Dollars in Thousands)
(cont.)
<TABLE>
<S> <C>
Net increase in cash and cash equivalents 13,901
Cash and cash equivalents at beginning of period 14,321
-----------
Cash and cash equivalents at end of period $ 28,222
===========
Supplemental Disclosure of Cash Flow Information:
Cash paid during the year for:
Interest $ 6,339
Income taxes 843
</TABLE>
The accompanying notes are an integral part of this statement.
-7-
<PAGE>
FFBS BANCORP, INC. AND SUBSIDIARY
Notes To The June 30, 1999 Unaudited Consolidated Financial Statements
NOTE A - BASIS OF PRESENTATION
The accompanying Unaudited Consolidated Financial Statements of FFBS
Bancorp, Inc. ("FFBS") reflect all adjustments which are, in the opinion of
management, necessary to a fair statement of the results for the interim periods
presented. The statements should be read in conjunction with the summary of
accounting policies and notes to financial statements included in FFBS's
financial statements for the year ended June 30, 1998. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been omitted in
accordance with the rules of the Securities and Exchange Commission.
NOTE B - ACCOUNTING POLICIES
FFBS adopted Financial Accounting Standards Board Statement No. 130,
"Reporting Comprehensive Income" as of July 1, 1998. Comprehensive income is
defined as the change in equity from transactions or other events and
circumstances from non-owner sources and includes net earnings.
Reference is also made to the accounting policies of FFBS described in the
notes to the consolidated financial statements for the year ended June 30, 1998.
FFBS has consistently followed those policies in preparing this report.
NOTE C - PROPOSED MERGER
On February 3, 1999, FFBS executed an Agreement and Plan of Merger with the
NBC Capital Corporation ("NBC"). Consummation of the merger is dependent upon
the approval of the shareholders and various regulatory agencies.
-8-
<PAGE>
(b) Pro Forma Financial Information
The following tables contain Unaudited Pro Forma Condensed Consolidated
Financial Statements, including a balance sheet as of June 30, 1999, and
statements of income for the three and six months ended June 30, 1999 and 1998,
and the years ended December 31, 1998, 1997, and 1996. These statements present
on a pro forma basis historical results for NBC and FFBS as though the merger
between NBC and FFBS had been consummated as of January 1, 1996.
The pro forma condensed consolidated financial statements and per share
information for the years ended December 31, 1998, 1997, and 1996, include
historical operating results of FFBS on a calendar year basis rather than on a
June 30, fiscal year basis as originally reported. Such calendar year financial
results and per share data for FFBS have not been audited.
The Unaudited Pro Forma Condensed Consolidated Financial Statements should
be read in conjunction with the consolidated historical financial statements of
NBC and FFBS. Pro forma results are not necessarily indicative of future
operating results.
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Balance Sheet
June 30, 1999
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp Adjustments Combined
--------- --------- ----------- --------
(In Thousands)
<S> <C> <C> <C> <C>
ASSETS:
Cash and balances due from banks $ 25,908 $ 2,822 $ 367 (2) $ 29,097
Interest-bearing deposits 15,987 25,400 41,387
Federal funds sold and securities purchased
under agreements to resell 8,926 - 8,926
Securities:
Held-to-maturity 30,396 - 30,396
Available-for-sale 176,609 31,941 208,550
-------- -------- --------
Total securities 207,005 31,941 238,946
Loans, net of unearned interest 504,363 94,780 599,143
Allowance for loan losses (9,763) (457) (785) (4) (11,005)
-------- -------- --------
Net loans 494,600 94,323 588,138
Premises and equipment, net 15,249 1,824 17,073
Intangible assets 3,352 - 3,352
Other 24,896 1,227 895 (4) 27,018
-------- -------- --------
$795,923 $157,537 $953,937
======== ======== ========
</TABLE>
-9-
<PAGE>
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Balance Sheet
June 30, 1999
(cont.)
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp Adjustments Combined
--------- --------- ----------- --------
(In Thousands)
<S> <C> <C> <C> <C>
LIABILITIES:
Noninterest-bearing deposits $ 79,786 $ 3,848 $ 83,634
Interest-bearing deposits 574,715 119,762 694,477
-------- -------- --------
Total deposits 654,501 123,610 778,111
Federal funds purchased and securities
sold under agreements to repurchase 12,758 - 12,758
Other borrowed funds 27,561 8,350 35,911
Other liabilities 10,540 1,467 2,197 (4) 14,204
-------- -------- --------
Total liabilities 705,360 133,427 840,984
-------- -------- --------
STOCKHOLDERS' EQUITY:
NBC common stock - $1 par value 5,665 - 1,386 (1) 7,051
FFBS common stock - $.01 par value - 16 (16) (1) -
Surplus and retained earnings 85,699 24,830 (1,370) (1) 106,626
(79) (3)
(367) (2)
(2,087) (4)
Unearned compensation (79) 79 (3) -
Loan receivable - ESOP (367) 367 (2) -
Accumulated other comprehensive income (801) (290) (1,091)
-------- -------- --------
90,563 24,110 112,586
-------- -------- --------
$795,923 $157,537 $953,570
======== ======== ========
</TABLE>
See Notes to Pro Forma Condensed Financial Information.
-10-
<PAGE>
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Statement of Income
Six Months Ended June 30, 1999
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp Adjustments Combined
--------- --------- ----------- --------
(In Thousands, Except Per Share Amounts)
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 21,672 $ 3,961 $ 25,633
Interest and dividends on securities 5,445 678 6,123
Other interest income 553 773 1,326
-------- -------- --------
Total interest income 27,670 5,412 33,082
-------- -------- --------
Interest expense:
Interest on deposits 11,363 2,935 14,298
Interest on borrowed funds 779 218 997
-------- -------- --------
Total interest expense 12,142 3,153 15,295
-------- -------- --------
Net interest income 15,528 2,259 17,787
Provision for loan losses 630 - 630
-------- -------- --------
Net interest income after provision for
loan losses 14,898 2,259 17,157
Noninterest income 4,473 364 4,837
Noninterest expense 12,280 1,681 13,961
-------- -------- --------
Net income before income taxes 7,091 942 8,033
Income tax expense 1,579 294 1,873
-------- -------- --------
Net income $ 5,512 $ 648 $ 6,160
======== ======== ========
Net income per share:
Basic $ .97 $ .43 $ .88
Diluted .97 .42 .88
Weighted-average common shares outstanding:
Basic 5,665 1,521 6,997
Diluted 5,665 1,554 7,026
</TABLE>
See Notes to Pro Forma Condensed Financial Information.
-11-
<PAGE>
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Statement of Income
Six Months Ended June 30, 1998
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp Adjustments Combined
--------- --------- ----------- --------
(In Thousands, Except Per Share Amounts)
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 22,182 $ 4,176 $ 26,358
Interest and dividends on securities 6,078 921 6,999
Other interest income 517 262 779
-------- -------- --------
Total interest income 28,777 5,359 34,136
Interest expense:
Interest on deposits 12,479 2,748 15,227
Interest on borrowed funds 951 241 1,192
-------- -------- --------
Total interest expense 13,430 2,989 16,419
-------- -------- --------
Net interest income 15,347 2,370 17,717
Provision for loan losses 675 - 675
-------- -------- --------
Net interest income after provision for
loan losses 14,672 2,370 17,042
Noninterest income 4,266 362 4,628
Noninterest expense 11,954 1,561 13,515
-------- -------- --------
Net income before income taxes 6,984 1,171 8,155
Income tax expense 1,671 455 2,126
-------- -------- --------
Net income $ 5,313 $ 716 $ 6,029
======== ======== ========
Net income per share:
Basic $ .94 $ .48 $ .86
Diluted .94 .47 .86
Weighted-average common shares outstanding:
Basic 5,665 1,492 6,972
Diluted 5,665 1,530 7,005
</TABLE>
See Notes to Pro Forma Condensed Financial Information.
-12-
<PAGE>
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Statement of Income
Three Months Ended June 30, 1999
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp Adjustments Combined
--------- --------- ----------- --------
(In Thousands, Except Per Share Amounts)
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 10,925 $ 1,947 $ 12,872
Interest and dividends on securities 2,762 441 3,203
Other interest income 237 313 550
-------- -------- --------
Total interest income 13,924 2,701 16,625
Interest expense:
Interest on deposits 5,654 1,458 7,112
Interest on borrowed funds 404 109 513
-------- -------- --------
Total interest expense 6,058 1,567 7,625
-------- -------- --------
Net interest income 7,866 1,134 9,000
Provision for loan losses 315 - 315
-------- -------- --------
Net interest income after provision for
loan losses 7,551 1,134 8,685
Noninterest income 2,308 171 2,479
Noninterest expense 6,159 865 7,024
-------- -------- --------
Net income before income taxes 3,700 440 4,140
Income tax expense 951 86 1,037
-------- -------- --------
Net income $ 2,749 $ 354 $ 3,103
======== ======== ========
Net income per share:
Basic $ .49 $ .23 $ .44
Diluted .49 .23 .44
Weighted-average common shares outstanding:
Basic 5,665 1,521 6,997
Diluted 5,665 1,554 7,024
</TABLE>
See Notes to Pro Forma Condensed Financial Information.
-13-
<PAGE>
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Statement of Income
Three Months Ended June 30, 1998
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp Adjustments Combined
--------- --------- ----------- --------
(In Thousands, Except Per Share Amounts)
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 11,211 $ 2,099 $ 13,310
Interest and dividends on securities 3,094 503 3,597
Other interest income 151 131 282
-------- -------- --------
Total interest income 14,456 2,733 17,189
Interest expense:
Interest on deposits 6,305 1,400 7,705
Interest on borrowed funds 483 147 630
-------- -------- --------
Total interest expense 6,788 1,547 8,335
-------- -------- --------
Net interest income 7,668 1,186 8,854
Provision for loan losses 352 - 352
-------- -------- --------
Net interest income after provision for
loan losses 7,316 1,186 8,502
Noninterest income 2,153 194 2,347
Noninterest expense 5,950 867 6,817
-------- -------- --------
Net income before income taxes 3,519 513 4,032
Income tax expense 801 227 1,028
-------- -------- --------
Net income $ 2,718 $ 286 $ 3,004
======== ======== ========
Net income per share:
Basic $ .48 $ .19 $ .43
Diluted .48 .19 .43
Weighted-average common shares outstanding:
Basic 5,665 1,490 6,970
Diluted 5,665 1,529 7,004
</TABLE>
See Notes to Pro Forma Condensed Financial Information.
-14-
<PAGE>
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Statement of Income
Year Ended December 31, 1998
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp Adjustments Combined
------------ ----------- ----------- -----------
(In Thousands, Except Per Share Amounts)
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 44,558 $ 8,397 $ 52,955
Interest and dividends on securities 11,616 1,800 13,416
Other interest income 1,217 736 1,953
------------ ----------- -----------
Total interest income 57,391 10,933 68,324
------------ ----------- -----------
Interest expense:
Interest on deposits 24,692 5,723 30,415
Interest on borrowed funds 1,822 507 2,329
------------ ----------- -----------
Total interest expense 26,514 6,230 32,744
------------ ----------- -----------
Net interest income 30,877 4,703 35,580
Provision for loan losses 3,187 - 3,187
------------ ----------- -----------
Net interest income after provision for
loan losses 27,690 4,703 32,393
Noninterest income 8,838 752 9,590
Noninterest expense 26,056 3,045 29,101
------------ ----------- -----------
Net income before income taxes 10,472 2,410 12,882
Income tax expense 1,978 902 2,880
------------ ----------- -----------
Net income $ 8,494 $ 1,508 $ 10,002
============ =========== ===========
Net income per share:
Basic $ 1.50 $ 1.00 $ 1.43
Diluted 1.50 .98 1.42
Weighted-average common shares outstanding:
Basic 5,665 1,509 6,987
Diluted 5,665 1,539 7,013
</TABLE>
See Notes to Pro Forma Condensed Financial Information.
-15-
<PAGE>
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Statement of Income
Year Ended December 31, 1997
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp Adjustments Combined
------------ ----------- ----------- -----------
(In Thousands, Except Per Share Amounts)
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 43,792 $ 7,891 $ 51,683
Interest and dividends on securities 12,055 1,710 13,765
Other interest income 981 276 1,257
------------ ----------- -----------
Total interest income 56,828 9,877 66,705
------------ ----------- -----------
Interest expense:
Interest on deposits 23,822 5,060 28,882
Interest on borrowed funds 1,877 118 1,995
------------ ----------- -----------
Total interest expense 25,699 5,178 30,877
------------ ----------- -----------
Net interest income 31,129 4,699 35,828
Provision for loan losses 1,477 5 1,482
------------ ----------- -----------
Net interest income after provision for
loan losses 29,652 4,694 34,346
Noninterest income 7,777 636 8,413
Noninterest expense 23,768 2,483 26,251
------------ ----------- -----------
Net income before income taxes 13,661 2,847 16,508
Income tax expense 3,743 1,083 4,826
------------ ----------- -----------
Net income $ 9,918 $ 1,764 $ 11,682
============ =========== ===========
Net income per share:
Basic $ 1.75 $ 1.20 $ 1.68
Diluted 1.75 1.15 1.67
Weighted-average common shares outstanding:
Basic 5,665 1,481 6,962
Diluted 5,665 1,534 7,008
</TABLE>
See Notes to Pro Forma Condensed Financial Information.
-16-
<PAGE>
NBC CAPITAL CORPORATION
Unaudited Pro Forma Condensed Statement of Income
Year Ended December 31, 1996
<TABLE>
<CAPTION>
NBC
Capital FFBS Pro Forma Pro Forma
Corp. Bancorp. Adjustments Combined
------------ ----------- ----------- ----------
(In Thousands, Except Per Share Amounts)
<S> <C> <C> <C> <C>
Interest income:
Interest and fees on loans $ 39,747 $ 7,225 $ 46,972
Interest and dividends on securities 12,440 1,636 14,076
Other interest income 478 309 787
------------ ----------- -----------
Total interest income 52,665 9,170 61,835
------------ ----------- -----------
Interest expense:
Interest on deposits 22,052 4,631 26,683
Interest on borrowed funds 1,040 - 1,040
------------ ----------- -----------
Total interest expense 23,092 4,631 27,723
------------ ----------- -----------
Net interest income 29,573 4,539 34,112
Provision for loan losses 1,677 - 1,677
------------ ----------- -----------
Net interest income after provision for
loan losses 27,896 4,539 32,435
Noninterest income 7,327 635 7,962
Noninterest expense 22,662 3,189 25,851
------------ ----------- -----------
Net income before income taxes 12,561 1,985 14,546
Income tax expense 3,141 588 3,729
------------ ----------- -----------
Net income $ 9,420 $ 1,397 $ 10,817
============ =========== ===========
Net income per share:
Basic $ 1.66 $ .94 $ 1.55
Diluted 1.66 .91 1.54
Weighted-average common shares outstanding:
Basic 5,665 1,486 6,966
Diluted 5,665 1,535 7,009
</TABLE>
See Notes to Pro Forma Condensed Financial Information.
-17-
<PAGE>
NBC CAPITAL CORPORATION
Notes to the June 30, 1999, Unaudited Pro Forma Condensed Financial Information
GENERAL
The Unaudited NBC and FFBS Pro Forma Condensed Financial Information is
based upon the following adjustments, reflecting the consummation of the merger
of NBC and FFBS, assuming the two companies had been combined for the period
presented using the pooling-of-interests method of accounting. Actual amounts
may differ from those reflected in the Unaudited Pro Forma Condensed Financial
Information.
NOTE 1
NBC will exchange .8758 of a share of NBC common stock for each share of
FFBS common stock outstanding immediately prior to the effective time of the
merger.
Shares of FFBS common stock at June 30, 1999 1,582,271
Exchange ratio .8758
Shares of NBC common stock to be issued based upon FFBS shares
outstanding at June 30, 1999 1,385,753
The following adjusting entry was made to the Unaudited Pro Forma Condensed
Balance Sheet to reflect this transaction (in thousands):
Debit Credit
----- ------
Common stock - FFBS $ 16
Surplus and retained earnings 1,370
Common stock - NBC $ 1,386
NOTE 2
At June 30, 1999, FFBS had a $366,858 loan balance related to the
internally leveraged FFBS Employee Stock Ownership Plan (the "FFBS ESOP"). The
debt is to be paid off by the sale of stock immediately prior to the merger. All
additional shares remaining in the FFBS ESOP will be allocated to employees'
individual accounts. NBC will incur a one-time charged related to the allocation
of the remaining shares of approximately $465,000.
-18-
<PAGE>
The following adjusting entry was made to the Unaudited Pro Forma
Condensed Balance Sheet (in thousands):
Debit Credit
----- ------
Cash $ 367
Loan receivable from ESOP $ 367
Surplus 465
Retained earnings 465
NOTE 3
Upon consummation of the merger, 7,935 shares of FFBS unvested restricted
stock grants will vest immediately under the FFBS Recognition and Retention Plan
(RRP). This accelerated vesting will result in a one-time charge to income upon
consummation of the merger, which is reflected in the Unaudited Pro Forma
Condensed Balance Sheet as a reduction of retained earnings. The following entry
was made to the Unaudited Balance Sheet to reflect this transaction (in
thousands):
Debit Credit
----- ------
Retained earnings $ 79
Unearned compensation $ 79
NOTE 4
NBC anticipates one-time merger and related charges of $3.0 million ($2.1
million, net of tax) in connection with the merger, excluding the expenses
related to the FFBS ESOP and FFBS RRP transactions. These expenses consist of
financial advisor fees, legal fees, employee-related expenses, and restructuring
charges, as well as an adjustment to the FFBS allowance for loan losses. The
impact of these charges, net of tax, has been reflected in the Unaudited Pro
Forma Condensed Balance Sheet as of June 30, 1999, but has not been reflected in
the Unaudited Pro Forma Condensed Statements of Income. The following entry was
made to the Unaudited Pro Forma Condensed Balance Sheet (in thousands):
Debit Credit
Other asset $ 895
Retained earnings 2,087
Allowance for loan losses $ 785
Other liabilities 2,197
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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 hereunto duly authorized.
NBC CAPITAL CORPORATION
Date: October 14, 1999 By: /s/ Richard T. Haston
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Richard T. Haston
Executive Vice-President, Chief
Financial Officer and Treasurer
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