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<PAGE>
===============================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C., 20549
-------------------------
FORM 8-K/A
Amendment to Current Report
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
AUGUST 4, 1995
Amendment No. 3
SOUTHERN NATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
Commission file number: 1-10853
NORTH CAROLINA 56-0939887
-------------- ----------
(State of incorporation) (I.R.S. Employer Identification No.)
200 WEST SECOND STREET
WINSTON-SALEM, NORTH CAROLINA 27101
----------------------------- -----
(Address of principal executive offices) (Zip Code)
(910) 773-7200
(Registrant's telephone number, including area code)
-------------------------
This Form 8-K has 10 pages. The sequential numbering of the pages is indicated
in the lower center.
===============================================================================
<PAGE>
ITEM 5. OTHER EVENTS
- --------------------
In response to a request from the Securities and Exchange Commission in a
letter dated July 18, 1995, the undersigned registrant hereby amends the
following items, financial statements, exhibits or other portions of its Current
Report on Form 8-K dated March 14, 1995, as amended on May 15, 1995, and May 22,
1995, as set forth in the pages attached hereto.
Pursuant to Item 7(b) of the registrant's Current Report on Form 8-K dated
March 14, 1995, as amended on May 15, 1995, and May 22, 1995, the registrant
hereby files the following pro forma information pursuant to Item 11-02(b)(1) of
Regulation S-X.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
- -----------------------------------------
b. Pro Forma Financial Information
Pro Forma Statement of Condition as of December 31, 1994
(unaudited)
Pro Forma Statements of Operations for the Years Ended December 31,
1994, 1993 and 1992 (unaudited)
Notes to the Pro Forma Financial Statements (unaudited)
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.
SOUTHERN NATIONAL CORPORATION
Date: August 4, 1995 /s/ SHERRY A. KELLETT
-----------------------------
Sherry A. Kellett
Executive Vice President and
Controller
(Principal Accounting Officer)
<PAGE>
PRO FORMA CONSOLIDATED STATEMENT OF CONDITION
SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK
December 31, 1994
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
BB&T Adjustments Pro Forma
SNC Financial Commerce Incr (Dcr) Combined
---------- ----------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Assets
Cash and due from depository institutions $ 264,664 $ 340,036 $ 33,094 $ -- $ 637,794
Interest-bearing bank balances 962 19,000 -- 1,000 a 20,962
Federal funds sold and securities purchased under
resale agreements or similar arrangements 9,010 4,011 -- -- 13,021
Securities available for sale (at market) 992,016 2,369,371 98,311 -- 3,459,698
Loans held for sale 21,464 -- -- 114,887 a 136,351
Securities held to maturity (market value: $1,889,911) 1,774,202 102,067 89,150 -- 1,965,419
Loans and leases 5,434,878 7,199,569 450,798 (113,494)a 12,971,751
Allowance for losses (70,573) (93,504) (7,657) -- (171,734)
---------- ----------- -------- --------- -----------
Net loans and leases 5,364,305 7,106,065 443,141 (113,494) 12,800,017
---------- ----------- -------- --------- -----------
Premises and equipment, net 165,068 149,240 18,761 -- 333,069
Other assets 164,449 304,540 17,886 1,857 a,b 488,732
---------- ----------- -------- --------- -----------
Total assets $8,756,140 $10,394,330 $700,343 $ 4,250 $19,855,063
========== =========== ======== ========= ===========
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing $ 782,172 $ 941,594 $119,253 $ -- $ 1,843,019
Interest-bearing 5,382,908 6,578,730 509,497 -- 12,471,135
---------- ----------- -------- --------- -----------
Total deposits 6,165,080 7,520,324 628,750 -- 14,314,154
Short-term borrowings 1,654,465 1,234,063 14,000 -- 2,902,528
Accounts payable and other liabilities 106,721 110,828 2,974 10,626 b 231,149
Long-term debt 197,530 706,471 6,754 -- 910,755
---------- ----------- -------- --------- -----------
Total liabilities 8,123,796 9,571,686 652,478 10,626 18,358,586
---------- ----------- -------- --------- -----------
Shareholders' equity:
Preferred stock, $5 par, 5,000,000 shares authorized,
770,000 issued and outstanding in 1994 3,850 -- -- -- 3,850
Common stock, $5 par, 300,000,000 shares authorized,
102,215,032 issued and outstanding in 1994 220,794 91,127 6,874 192,280 c 511,075
Paid-in capital 164,934 282,535 30,410 (192,280)c 285,599
Retained earnings 273,480 495,427 13,448 (6,376)b 775,979
Unearned compensation (2,650) (4,792) -- -- (7,442)
Net unrealized depreciation on securities available for sale (28,064) (41,653) (2,867) -- (72,584)
---------- ----------- -------- --------- -----------
Total shareholders' equity 632,344 822,644 47,865 (6,376) 1,496,477
---------- ----------- -------- --------- -----------
Total liabilities and shareholders' equity $8,756,140 $10,394,330 $700,343 $ 4,250 $19,855,063
========== =========== ======== ========= ===========
</TABLE>
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK
For the Year Ended December 31, 1994
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
BB&T Adjustments Pro Forma
SNC Financial Commerce Incr (Dcr) Combined
---------- ----------- -------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Interest Income
Interest and fees on loans and leases $423,461 $561,564 $35,783 $ 248 a $1,021,056
Interest and dividends on securities 152,471 126,139 13,195 -- 291,805
Interest on temporary investments 2,456 2,396 580 (248)a 5,184
-------- -------- ------- ------- ----------
Total interest income 578,388 690,099 49,558 -- 1,318,045
-------- -------- ------- ------- ----------
Interest Expense
Interest on deposits 191,005 230,917 19,954 -- 441,876
Interest on short-term borrowings 48,938 49,461 77 -- 98,476
Interest on long-term debt 15,728 24,535 664 -- 40,927
-------- -------- ------- ------- ----------
Total interest expense 255,671 304,913 20,695 -- 581,279
-------- -------- ------- ------- ----------
Net Interest Income 322,717 385,186 28,863 -- 736,766
Provision for loan and lease losses 7,246 8,000 2,600 -- 17,846
-------- -------- ------- ------- ----------
Net Interest Income After Provision for
Loan and Lease Losses 315,471 377,186 26,263 -- 718,920
-------- -------- ------- ------- ----------
Noninterest Income
Service charges on deposit accounts 35,222 44,906 3,957 (1,330)d 82,755
Nondeposit fees and commissions 32,004 61,120 3,144 4,008 d 100,276
Securities gains, net 906 2,120 48 -- 3,074
Other income 14,914 22,337 1,644 1,047 d 39,942
-------- -------- ------- ------- ----------
Total noninterest income 83,046 130,483 8,793 3,725 226,047
-------- -------- ------- ------- ----------
Noninterest Expense
Personnel expense 119,023 163,325 11,644 (559)b 293,433
Occupancy and equipment expense 36,143 50,261 4,579 -- 90,983
Federal deposit insurance expense 14,401 16,886 -- 1,410 d 32,697
Other expense 61,662 93,637 8,609 2,315 d 166,223
-------- -------- ------- ------- ----------
Total noninterest expense 231,229 324,109 24,832 3,166 583,336
-------- -------- ------- ------- ----------
Earnings
Income before income taxes 167,288 183,560 10,224 559 361,631
Provision for income taxes 57,644 63,678 3,213 224 b 124,759
-------- -------- ------- ------- ----------
Net Income 109,644 119,882 7,011 335 236,872
Preferred dividend requirements 5,198 -- -- -- 5,198
-------- -------- ------- ------- ----------
Income applicable to common shares $104,446 $119,882 $ 7,011 $ 335 $ 231,674
======== ======== ======= ======= ==========
Per Common Share
Net income:
Primary $ 2.38 $ 3.27 $ 2.48 $ 2.26
======== ======== ======= ==========
Fully diluted $ 2.27 $ 3.27 $ 2.37 $ 2.21
======== ======== ======= ==========
Cash dividends paid per common share $ 0.74 $ 1.12 $ 0.70 $ 0.74
======== ======== ======= ==========
</TABLE>
<PAGE>
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK
For the Year Ended December 31, 1993
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
BB&T Adjustments Pro Forma
SNC Financial Commerce Incr (Dcr) Combined
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Interest Income
Interest and fees on loans and leases $ 405,121 $ 479,212 $ 30,861 $ 376 a $ 915,570
Interest and dividends on securities 139,768 124,271 15,689 - 279,728
Interest on temporary investments 2,421 1,668 697 (376)a 4,410
------------- ------------- ------------- ------------- -------------
Total interest income 547,310 605,151 47,247 - 1,199,708
------------- ------------- ------------- ------------- -------------
Interest Expense
Interest on deposits 195,204 212,668 20,322 - 428,194
Interest on short-term borrowings 18,849 24,733 26 - 43,608
Interest on long-term debt 22,794 10,961 635 - 34,390
------------- ------------- ------------- ------------- -------------
Total interest expense 236,847 248,362 20,983 - 506,192
------------- ------------- ------------- ------------- -------------
Net Interest Income 310,463 356,789 26,264 - 693,516
Provision for loan and lease losses 31,438 19,048 2,825 - 53,311
------------- ------------- ------------- ------------- -------------
Net Interest Income After Provision for
Loan and Lease Losses 279,025 337,741 23,439 - 640,205
------------- ------------- ------------- ------------- -------------
Noninterest Income
Service charges on deposit accounts 36,838 40,764 3,428 (1,360)d 79,670
Nondeposit fees and commissions 22,490 57,963 4,435 6,892 d 91,780
Securities gains, net 13,714 1,720 1,407 - 16,841
Other income 14,630 19,080 1,385 (3,068)d 32,027
------------- ------------- ------------- ------------- -------------
Total noninterest income 87,672 119,527 10,655 2,464 220,318
------------- ------------- ------------- ------------- -------------
Noninterest Expense
Personnel expense 131,681 147,644 10,721 (559)b 289,487
Occupancy and equipment expense 38,153 40,344 4,134 - 91,631
Federal deposit insurance expense 14,074 15,327 - 1,329 d 30,730
Loss on bulk sale of assets 49,147 - - - 49,147
Other expense 103,004 89,259 8,851 1,135 d 202,249
------------- ------------- ------------- ------------- -------------
Total noninterest expense 336,059 301,574 23,706 1,905 663,244
------------- ------------- ------------- ------------- -------------
Earnings
Income before income taxes 30,638 155,694 10,388 559 197,279
Provision for income taxes 22,445 50,682 3,837 224 b 77,188
------------- ------------- ------------- ------------- -------------
Income before cumulative effect of
changes in accounting principles 8,193 105,012 6,551 335 120,091
Less: cumulative effect of changes
in accounting principles, net of
income taxes 27,217 - - 7,046 34,263
------------- ------------- ------------- ------------- -------------
Net (Loss) Income (19,024) 105,012 6,551 (6,711) 85,828
Preferred dividend requirements 5,198 - - - 5,198
------------- ------------- ------------- ------------- -------------
(Loss) Income applicable to common shares $ (24,222) $ 105,012 $ 6,551 $ (6,711) $ 80,630
============= ============= ============= ============= =============
Per Common Share
Net (loss) income:
Primary
Income before cumulative effect $ 0.07 $ 2.95 $ 2.38 $ 1.16
Less: cumulative effect 0.64 - - 0.35
------------- ------------- ------------- -------------
Net (loss) income $ (0.57) $ 2.95 $ 2.38 $ 0.81
============= ============= ============= =============
Fully diluted
Income before cumulative effect $ 0.07 $ 2.91 $ 2.28 $ 1.16
Less: cumulative effect 0.64 - - 0.35
------------- ------------- ------------- -------------
Net (loss) income (0.57) 2.91 2.28 0.81
============= ============= ============= =============
Cash dividends paid per common share $ 0.64 $ 1.02 $ 0.51 $ 0.64
============= ============= ============= =============
</TABLE>
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL CORPORATION AND COMMERCE BANK
For the Year Ended December 31, 1992
(Dollars in thousands, except per share data)
<TABLE>
<CAPTION>
BB&T Adjustments Pro Forma
SNC Financial Commerce Incr (Dcr) Combined
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Interest Income
Interest and fees on loans and leases $ 428,923 $ 454,061 $ 30,175 $ 434 a $ 913,593
Interest and dividends on securities 137,025 135,529 13,689 - 286,243
Interest on temporary investments 5,486 2,026 1,075 (434)a 8,153
------------- ------------- ------------- ------------- -------------
Total interest income 571,434 591,616 44,939 - 1,207,989
------------- ------------- ------------- ------------- -------------
Interest Expense
Interest on deposits 251,172 249,876 21,845 - 522,893
Interest on short-term borrowings 14,964 16,996 19 - 31,979
Interest on long-term debt 25,652 8,711 550 - 34,913
------------- ------------- ------------- ------------- -------------
Total interest expense 291,788 275,583 22,414 - 589,785
------------- ------------- ------------- ------------- -------------
Net Interest Income 279,646 316,033 22,525 - 618,204
Provision for loan and lease losses 25,671 32,975 4,225 - 62,871
------------- ------------- ------------- ------------- -------------
Net Interest Income After Provision for
Loan and Lease Losses 253,975 283,058 18,300 - 555,333
------------- ------------- ------------- ------------- -------------
Noninterest Income
Service charges on deposit accounts 36,455 33,606 3,006 (1,399)d 71,668
Nondeposit fees and commissions 20,454 42,894 3,025 12,763 d 79,136
Securities gains, net 1,972 6,268 1,098 - 9,338
Other income 19,871 12,781 1,081 (8,002)d 25,731
------------- ------------- ------------- ------------- -------------
Total noninterest income 78,752 95,549 8,210 3,362 185,873
------------- ------------- ------------- ------------- -------------
Noninterest Expense
Personnel expense 114,258 123,814 8,926 - 246,998
Occupancy and equipment expense 33,184 40,210 3,730 - 77,124
Federal deposit insurance expense 12,826 13,456 - 1,102 d 27,384
Other expense 73,304 76,653 6,435 2,260 d 158,652
------------- ------------- ------------- ------------- -------------
Total noninterest expense 233,572 254,133 19,091 3,362 510,158
------------- ------------- ------------- ------------- -------------
Earnings
Income before income taxes 99,155 124,474 7,419 - 231,048
Provision for income taxes 39,997 41,853 2,477 - 84,322
------------- ------------- ------------- ------------- -------------
Net Income 59,163 82,621 4,942 - 146,726
Preferred dividend requirements 4,605 - - - 4,605
------------- ------------- ------------- ------------- -------------
Income applicable to common shares $ 54,558 $ 82,621 $ 4,942 $ - $ 142,121
============= ============= ============= ============= =============
Per Common Share
Net income:
Primary $ 1.34 $ 2.53 $ 2.05 $ 1.53
============= ============= ============= =============
Fully diluted $ 1.31 $ 2.43 $ 1.97 $ 1.48
============= ============= ============= =============
Cash dividends paid per common share $ 0.50 $ 0.91 $ 0.26 $ 0.50
============= ============= ============= =============
</TABLE>
<PAGE>
NOTES TO PRO FORMA CONSOLIDATED STATEMENTS OF CONDITION
AND OPERATIONS
SOUTHERN NATIONAL CORPORATION, BB&T FINANCIAL
CORPORATION AND COMMERCE
BANK
a) Adjustments were made to conform the presentation of loans held for sale
which were classified as other assets for Commerce Bank ("Commerce") and not
separately classified for BB&T Financial Corporation ("BB&T"). Commerce also
included temporary investments in other assets, and these were reclassified
to interest-bearing bank balances. Adjustments were also made to the
statements of operations to reclassify the interest income from Commerce's
loans held for sale from interest income on temporary investments to interest
income on loans and leases. The 1994 entries are as follows:
<TABLE>
<S> <C> <C>
Statement of Condition
- ----------------------
Loans held for sale 114,887
Loans and leases 113,494
Other assets 1,393
Interest-bearing bank balances 1,000
Other assets 1,000
Statement of Operations
- ------------------------
Interest on temporary investments 248
Interest and fees on loans and leases 248
</TABLE>
Note: 1993 and 1992 adjustments were of the same nature as the 1994 adjustments
presented above.
b) In consummating the merger of Southern National Corporation ("Southern
National") and BB&T, adjustments were necessary to conform BB&T's
method of accounting for postretirement benefits other than pensions to that
of Southern National. Statement of Financial Accounting Standards No. 106,
"Employers' Accounting for Postretirement Benefits Other than Pensions,"
allowed employers to recognize the transition obligation associated with
implementation at the time of adoption or on a delayed basis over the planned
participants' future service periods. When adopted in 1993, Southern National
and BB&T elected to treat the transition obligation differently. Southern
National recognized the transition obligation at the time of adoption, while
BB&T elected to recognize the transition obligation over the planned
participants' future service periods. To conform the accounting treatment of
BB&T to that of Southern National, a prior period adjustment was made at the
date of merger with an effective date of January 1, 1993. The 1994 entries
are as follows:
<PAGE>
<TABLE>
<S> <C> <C>
Statement of Condition
- ----------------------
Other assets 4,250
Retained earnings 6,376
Accounts payable and
other liabilities 10,626
</TABLE>
The $559,000 decrease in personnel expense in 1994 and 1993 represents the
reduction in amortization of the transition obligation.
Note: 1993 adjustments were of the same nature as the 1994 adjustments
presented or described above.
c) These adjustments reflect the changes in the stock accounts related to the
issuance of shares to consummate the merger with BB&T at the 1.45 exchange
ratio and to consummate the merger with Commerce at the 1.305 exchange ratio.
Commerce shares were subsequently also subject to the 1.45 exchange ratio as
part of BB&T. These entries also reflect the conversion of Commerce's $2.50
par value stock to Southern National's $5.00 par value and the same
conversion in par value of stock for BB&T from their par value of $2.50.
The 1994 entries are as follows:
<TABLE>
<S> <C> <C>
Statement of Condition
- ----------------------
Paid-in capital 173,141
Common stock 173,141
Paid-in capital 19,139
Common stock 19,139
</TABLE>
d) These adjustments were necessary to conform the presentation of Commerce,
Southern National and BB&T for income and expense items which were classified
differently prior to merger. The 1994 entries are as follows:
<TABLE>
<S> <C> <C>
Statement of Operations
- -----------------------
Other expense 3,725
Service charges on deposit accounts 1,106
Other income 4,831
</TABLE>
<PAGE>
To reclassify check purchases and sales from service charges on deposit
accounts to other expense and other income.
<TABLE>
<S> <C> <C>
Service charges on deposit accounts 224
Nondeposit fees and commissions 224
To reclassify ATM income from service charges on deposit accounts to
nondeposit fees and commissions.
<S> <C> <C>
Other income 1,006
Nondeposit fees and commissions 1,006
To reclassify gain on sale of mortgage loans from other income to nondeposit
fees and commissions.
<S> <C> <C>
Other income 2,778
Nondeposit fees and commissions 2,778
To reclassify safe deposit box income from other income to nondeposit fees
and commissions.
<S> <C> <C>
Federal deposit insurance expense 1,410
Other expense 1,410
To reclassify Federal deposit insurance expense to a separate line item from
other expense.
Note: 1993 and 1992 adjustments were of the same nature as the 1994 adjustments
presented above.
</TABLE>
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