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Previous: MONEY MARKET OBLIGATIONS TRUST /NEW/, N14EL24, 1996-10-10 |
Next: INTERNATIONAL AIRLINE SUPPORT GROUP INC, 10-K/A, 1996-10-10 |
<PAGE>
RULE 424(b)(3)
REGISTRATION NO. 333-6239
SUPPLEMENT DATED SEPTEMBER 17, 1996
TO PROXY STATEMENT-PROSPECTUS OF
COMMUNITY FIRST BANKSHARES, INC.
AND FINANCIAL BANCORP, INC.
DATED AUGUST 15, 1996
As described in the Proxy Statement-Prospectus dated August 15, 1996, under
"Recent Developments Regarding CFB", CFB and Mountain Parks Financial Corp.
("Mountain Parks") of Denver, Colorado, executed a Merger Agreement on June 25,
1996. Under the terms of the agreement, upon the satisfaction of various
conditions, Mountain Parks will be merged into CFB. In the merger, CFB will
exchange 1.275 shares of its Common Stock for each share of Mountain Parks
Common Stock, which is expected to result in the issuance of approximately 5.2
million shares of CFB Common Stock to holders of Mountain Parks Common Stock.
Completion of the merger is subject to regulatory approvals and approval by
shareholders of both companies, as well as certain other conditions, and is
expected to be completed in the fourth quarter of 1996 or the first quarter of
1997.
Attached to this Supplement as Appendix A is Unaudited Pro Forma Condensed
Combined Financial Information, which shows the expected impact of the proposed
acquisition of Mountain Parks on CFB's historical financial position and result
of operations.
Also enclosed for the information of shareholders of Financial Bancorp,
Inc., are (i) the Annual Report to Shareholders of Mountain Parks for the year
ended December 31, 1995, and (ii) the quarterly report of Mountain Parks on Form
10-QSB for the quarter ended June 30, 1996.
<PAGE>
APPENDIX A
PRO FORMA FINANCIAL INFORMATION
Page
----
Unaudited Pro Forma Condensed Combined Financial
Information of Community First Bankshares, Inc.. . . . . . . . . . . A-2
Condensed Pro Forma Combined Balance Sheet - June 30, 1996 . . . . . . . A-3
Condensed Pro Forma Combined Statements of Income - Six Months Ended
June 30, 1996. . . . . . . . . . . . . . . . . . . . . . . . . . . . A-4
Condensed Pro Forma Combined Statements of Income -
Year ended December 31, 1995 . . . . . . . . . . . . . . . . . . . . A-5
Condensed Pro Forma Combined Statements of Income -
Year ended December 31, 1994 . . . . . . . . . . . . . . . . . . . . A-6
Condensed Pro Forma Combined Statements of Income -
Year ended December 31, 1993 . . . . . . . . . . . . . . . . . . . . A-7
A-1
<PAGE>
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
The following unaudited pro forma condensed combined financial statements
and explanatory notes are presented to show the impact on CFB's historical
financial position and results of operations of the Merger and the proposed
acquisition of Mountain Parks. The Merger is reflected in the unaudited pro
forma condensed combined financial information under the pooling of interests
method of accounting. See "The Merger - Accounting Treatment."
The unaudited pro forma condensed combined balance sheet assumes that the
acquisition was consummated on June 30, 1996, and the unaudited pro forma
condensed combined statement of income assumes that the acquisition was
consummated at the beginning of each period. The balance sheet and the
statements of income for certain periods also include the results of operations
of High Plains Bank Corp. ("Kiowa"), the holding company of Kiowa State Bank,
Kiowa, Colorado, which was acquired by Mountain Parks on July 31, 1996.
Mountain Parks acquired 100% of the capital stock of Kiowa for cash
consideration of $7,184,000. Mountain Parks accounted for this transaction as a
purchase. Such financial statements assume that the acquisition of Kiowa by
Mountain Parks was consummated at the beginning of each period for which the
results of Kiowa are presented.
The pro forma information should be read in conjunction with the historical
financial statements (including the related notes thereto) and the financial
data regarding CFB and Mountain Parks incorporated by reference. The pro forma
information is not necessarily indicative of the results of operations or
combined financial position that would have resulted had the acquisitions been
consummated at the beginning of the periods for which an income statement is
presented, nor is it necessarily indicative of the results of operations of
future periods or future combined financial position.
A-2
<PAGE>
CONDENSED PRO FORMA COMBINED BALANCE SHEET
JUNE 30, 1996
(Dollars in thousands)
(Unaudited)
<TABLE>
<CAPTION>
Eliminations and
Adjustments
Community First Mountain Parks ------------------ Pro Forma
Bankshares, Inc. Financial Corp. Kiowa Debit Credit Combined
---------------- --------------- ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
Cash and due from banks $ 81,676 $ 30,909 $ 3,526 $ 7,184(2) $ 108,927
Federal funds sold and securities purchased
under agreement to resell 860 0 7,440 8,300
Interest-bearing deposits 1,461 0 126 1,587
Available-for-sale securities 409,076 90,640 10,315 510,031
Held-to-maturity securities 215,446 8,051 2,458 225,955
Loans 1,541,374 310,055 26,884 1,878,313
Less: Allowance for loan losses (20,621) (3,374) (394) (24,389)
------------ --------- -------- ---------
Net loans 1,520,753 306,681 26,490 1,853,924
Bank premises and equipment 42,891 16,624 2,292 61,807
Other assets 69,065 24,685 565 3,842(2) 98,157
------------ --------- -------- ---------
TOTAL ASSETS $ 2,341,228 $ 477,590 $ 53,212 $2,868,688
------------ --------- -------- ---------
------------ --------- -------- ---------
Deposits $ 1,952,115 $ 370,279 $ 49,489 $2,371,883
Federal funds purchased and securities sold
under agreements to repurchase 68,512 0 0 68,512
Other short-term borrowings 105,593 37,414 0 143,007
Long-term debt 27,586 11,500 300 300(2) 39,086
Other liabilities 23,572 7,012 381 30,965
------------ --------- -------- ----------
TOTAL LIABILITIES 2,177,378 426,205 50,170 2,653,453
Minority interest 1,236 0 0 1,236
Stockholders' equity:
Preferred stock 23,000 0 0 23,000
Common Stock 115 4 0 4(1) 47(1) 162
0(2)
Capital surplus 42,349 23,701 809 23,701(1) 23,658(1) 66,007
809(2)
Retained earnings 98,149 27,680 2,471 2,471(2) 125,829
Treasury stock (999) 0 (238) 238(2) (999)
------------ --------- -------- ----------
TOTAL EQUITY 162,614 51,385 3,042 213,999
------------ --------- -------- --------- --------- ----------
TOTAL LIABILITIES AND EQUITY $ 2,341,228 $ 477,590 $ 53,212 $ 31,127 $ 31,127 $2,868,688
------------ --------- -------- --------- --------- ----------
------------ --------- -------- --------- --------- ----------
</TABLE>
_________________________
(1) Issuance of 4,753,477 shares of CFB Common Stock in exchange for the
3,728,218 outstanding shares of Mountain Parks Common Stock. The
calculation is based on the Exchange Rate of 1.275 shares of CFB Common
Stock for each share of Mountain Parks Common Stock outstanding.
(2) To record the purchase of High Plains Bank Corp. (Kiowa) by Mountain Parks
for a purchase price of $7,184,000 including the recognition of goodwill.
A-3
<PAGE>
CONDENSED PRO FORMA COMBINED STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 1996
(Dollars in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Eliminations and
Adjustments
Community First Mountain Parks ------------------ Pro Forma
Bankshares, Inc. Financial Corp. Kiowa Debit Credit Combined
---------------- --------------- ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
Interest income $ 89,017 $ 20,184 $ 1,944 $ 111,145
Interest expense 39,601 5,921 662 46,184
-------- -------- ------- ---------
Net interest income 49,416 14,263 1,282 64,961
Provision for loan losses 2,115 216 24 2,355
-------- -------- ------- ---------
Net interest income after provision for
loan losses 47,301 14,047 1,258 62,606
Net gains on sales of investment
securities 0 0 0 0
Other noninterest income 9,663 2,954 292 12,909
Noninterest expense 36,099 10,558 967 128(1) 47,752
-------- -------- ------- ---------
Income before income taxes 20,865 6,443 583 27,763
Provision for income taxes 7,057 2,382 168 9,607
-------- -------- ------- ---------
Net income 13,808 4,061 415 18,156
Dividends on preferred stock 805 0 0 805
-------- -------- ------- ---------
Net income applicable to common equity $ 13,003 $ 4,061 $ 415 $ 17,351
-------- -------- ------- ---------
-------- -------- ------- ---------
Earnings per common share:
Primary $1.12 $1.07 $2.89 $1.05
Fully diluted $1.06 $1.07 $2.89 $1.01
Average common shares outstanding:
Primary 11,622,445 3,787,422 143,525 16,451,408
Diluted 13,084,108 3,795,325 143,525 17,923,147
</TABLE>
_________________________________
(1) Amortization of goodwill relative to the acquisition of High Plains Bank
Corp. (Kiowa), by Mountain Parks, to be amortized over fifteen years.
A-4
<PAGE>
CONDENSED PRO FORMA COMBINED STATEMENTS OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1995
(Dollars in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Eliminations and
Adjustments
Community First Mountain Parks ------------------ Pro Forma
Bankshares, Inc. Financial Corp. Kiowa Debit Credit Combined
---------------- --------------- ----- ------ ------ ---------
<S> <C> <C> <C> <C> <C> <C>
Interest income $ 162,093 $ 30,775 $ 3,002 $ 195,870
Interest expense 73,945 8,946 961 83,852
--------- -------- ------ ---------
Net interest income 88,148 21,829 2,041 112,018
Provision for loan losses 2,432 279 0 2,711
--------- -------- ------ ---------
Net interest income after provision for
loan losses 85,716 21,550 2,041 109,307
Net gains on sales of investment
securities 83 (31) 0 52
Other noninterest income 17,708 4,728 424 22,860
Noninterest expense 67,980 14,613 1,607 256(2) 84,456
--------- -------- ------ ---------
Income before income taxes and cumulative
effect of accounting change 35,527 11,634 858 47,763
Provision for income taxes 12,708 4,500 218 17,426
--------- -------- ------ ---------
Net income 22,819 7,134 640 30,337
Dividends on preferred stock 1,610 0 0 1,610
--------- -------- ------ ---------
Net income applicable to common equity $ 21,209 $ 7,134 $ 640 $ 28,727
--------- -------- ------ ---------
--------- -------- ------ ---------
Earnings per common share:
Primary $1.85 $2.24 $4.46 $1.85
Fully diluted $1.75 $2.17(1) $4.46 $1.76(1)
Average common shares outstanding:
Primary 11,483,858 3,183,742 143,575 15,543,129
Diluted 13,029,614 3,330,538 143,575 17,276,050
</TABLE>
___________________________________
(1) Fully diluted earnings per common share reflects an $86,000 increase in net
income attributed to the after tax effect of the interest expense
associated with Mountain Parks Financial Corp. 7.375% convertible
debentures.
(2) Amortization of goodwill relative to the acquisition of High Plains Bank
Corp. (Kiowa), by Mountain Parks, to be amortized over fifteen years.
A-5
<PAGE>
CONDENSED PRO FORMA COMBINED STATEMENTS OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1994
(Dollars in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Eliminations and
Adjustments
Community First Mountain Parks ------------------ Pro Forma
Bankshares, Inc. Financial Corp. Debit Credit Combined
---------------- --------------- ------ ------ ---------
<S> <C> <C> <C> <C> <C>
Interest income $ 123,075 $ 20,162 $ 143,237
Interest expense 49,297 4,171 53,468
--------- -------- ---------
Net interest income 73,778 15,991 89,769
Provision for loan losses 1,839 0 1,839
--------- -------- ---------
Net interest income after provision
for loan losses 71,939 15,991 87,930
Net gains on sales of investment
securities 348 (249) 99
Other noninterest income 15,180 3,713 18,893
Noninterest expense 59,542 10,699 70,241
--------- -------- ---------
Income before income taxes 27,925 8,756 36,681
Provision for income taxes 10,985 2,967 13,952
--------- -------- ---------
Net income 16,940 5,789 22,729
Dividends on preferred stock 1,091 0 1,091
--------- -------- ---------
Net income applicable to common equity $ 15,849 $ 5,789 $ 21,638
--------- -------- ---------
--------- -------- ---------
Earnings per common share:
Primary $1.39 $2.32 $1.48
Fully diluted 1.37 $2.03 $1.42(1)
Average common shares
Primary 11,393,996 2,499,069 14,580,309
Fully diluted 12,332,543 2,983,443 16,136,433
</TABLE>
______________________________
(1) Fully diluted earnings per common share reflects an $261,000 increase in
net income attributed to the after tax effect of the interest expense
associated with Mountain Parks Financial Corp. 7.375% convertible
debentures.
A-6
<PAGE>
CONDENSED PRO FORMA COMBINED STATEMENTS OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1993
(Dollars in thousands, except per share data)
(Unaudited)
<TABLE>
<CAPTION>
Eliminations and
Adjustments
Community First Mountain Parks ------------------ Pro Forma
Bankshares, Inc. Financial Corp. Debit Credit Combined
---------------- --------------- ------ ------ ---------
<S> <C> <C> <C> <C> <C>
Interest income $106,299 $14,847 $121,146
Interest expense 44,084 3,187 47,271
-------- ------- --------
Net interest income 62,215 11,660 73,875
Provision for loan losses 1,798 351 2,149
-------- ------- --------
Net interest income after provision
for loan losses 60,417 11,309 71,726
Net gains on sales of investment
securities 1,312 598 1,910
Other noninterest income 13,093 3,155 16,248
Noninterest expense 51,085 9,769 60,854
-------- ------- --------
Income before income taxes 23,737 5,293 29,030
Provision for income taxes 8,809 1,966 10,775
-------- ------- --------
Income before cumulative effect of accounting
change 14,928 3,327 18,255
Cumulative effect of accounting change 359 0 359
-------- ------- --------
Net income 15,287 3,327 18,614
Dividends on preferred stock 0 0 0
-------- ------- --------
Net income applicable to common equity $ 15,287 $ 3,327 $ 18,614
-------- ------- --------
-------- ------- --------
Earnings per common share:
Primary $1.35 $1.53 $1.32
Fully diluted 1.35 $1.42(1) $1.30(1)
Average common shares
Primary 11,331,408 2,170,335 14,098,585
Fully diluted 11,335,365 2,400,915 14,396,532
</TABLE>
___________________________________
(1) Fully diluted earnings per common share reflects an $79,000 increase in net
income attributed to the after tax effect of the interest expense
associated with Mountain Parks Financial Corp. 7.375% convertible
debentures.
A-7
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