_________________________________________________________________
_________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 17, 1997
SOVEREIGN BANCORP, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania 0-16533 23-2453088
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Ident. No.)
1130 Berkshire Boulevard, Wyomissing, Pennsylvania 19610
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (610) 320-8400
N/A
(Former name or former address, if changed since last report.)
_________________________________________________________________
_________________________________________________________________
<PAGE>
Pro forma financial information.
Pro forma financial information showing the effects of the
merger of First State Financial Services, Inc. with and into
Sovereign Bancorp, Inc., which was effective as of
February 18, 1997, and the pending acquisition of Bankers
Corp. is incorporated herein by reference to Exhibit 99.1.
This pro forma data is as of December 31, 1996 except for
First State data which is as of September 30, 1996. Does
not give effect to a $18 million to $20 million after-tax
restructuring charge that Sovereign anticipates that it will
incur in connection with the acquisition of Bankers Corp.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
SOVEREIGN BANCORP, INC.
Dated: March 17, 1997
By/s/ Mark R. McCollom
Mark R. McCollom
Chief Accounting Officer
<PAGE>
EXHIBIT INDEX
Exhibit Number
99.1 Pro forma financial information (unaudited).
<TABLE>
<CAPTION>
Exhibit 99.1
Pro Forma Balance Sheet
At December 31, 1996
Sovereign First State(A) Bankers Adjustments Combined
<S> <C> <C> <C> <C> <C>
Assets
Cash and amounts due from
depository institutions and
interest-earning deposits $ 105,174 $ 15,799 $ 15,957 $ - $ 136,930
Loans held for resale 23,849 9,106 8,916 - 41,871
Investment & mortgage-backed
securities available for sale 484,339 9,466 34,181 - 527,986
Investment & mortgage-backed
securities held-to-maturity 2,431,948 55,667 707,479 - 3,195,094
Loans 6,156,322 493,215 1,663,318 - 8,312,855
Allowance for possible loan
losses (33,809) (12,284) (6,596) - (52,689)
Premises and equipment 53,592 10,171 10,846 - 74,609
Real estate owned 6,589 4,045 4,662 - 15,296
Accrued interest receivable 52,906 3,942 15,181 - 72,029
Goodwill and other intangible assets 111,457 2,149 3,329 - 116,935
Other assets 40,787 19,141 2,511 - 62,439
Total Assets $ 9,433,154 $ 610,417 $ 2,459,784 $ - $12,503,355
=========== ========= =========== ============ ===========
Liabilities
Deposits $ 5,052,441 $ 554,320 $ 1,629,062 - $ 7,235,823
Borrowings
Short-term borrowings 2,764,518 600 614,090 - 3,379,208
Long-term borrowings 1,091,748 5,328 - - 1,097,076
Advance payments by borrowers
for taxes and insurance 23,335 2,614 12,203 - 38,152
Other liabilities 25,297 12,319 11,552 - 49,168
Total liabilities 8,957,339 575,181 2,266,907 - 11,799,427
Total Stockholders' Equity 475,815 35,236 192,877 - 703,928
Total Liabilities and Stockholders'
Equity $ 9,433,154 $ 610,417 $ 2,459,784 $ - $12,503,355
=========== ========= =========== =========== ===========
<FN>
(A) First State data as of 9/30/96.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Pro Forma Income Statement
Year Ended December 31, 1996
Sovereign First State(A) Bankers Adjustments Combined
<S> <C> <C> <C> <C> <C>
Interest income $ 616,250 $ 49,239 $ 153,105 $ - $ 818,594
Interest expense 399,540 24,054 90,879 - 514,473
Net interest income 216,710 25,185 62,226 - 304,121
Provision for possible loan losses 2,516 8,900 3,950 - 15,366
Net interest income after provision 214,194 16,285 58,276 - 288,755
Other income 26,683 17,480 2,141 - 46,304
Other expenses 157,871 41,022 22,591 - 221,484
Income before taxes 83,006 (7,257) 37,826 - 113,575
Income tax provision 31,543 (1,608) 13,501 - 43,436
Net income $ 51,463 $ (5,649) $ 24,325 $ - $ 70,139
=========== ========= ========== =========== ===========
<FN>
(A) First State data as of 9/30/96.
</TABLE>
