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UNITED STATES
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 RECORDED)
AUGUST 15, 1997
BB&T CORPORATION
(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER : 1-10853
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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 (Zip Code)
Executive Offices)
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(910) 733-2000
(Registrant's Telephone Number, Including Area Code)
This Form 8-K has 6 pages.
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ITEM 5.
On July 1, 1997, BB&T Corporation completed its acquisition of United
Carolina Bancshares Corporation ("UCB") of Whiteville, North Carolina in a
transaction accounted for as a pooling of interests. Under the terms of the
merger agreement, UCB shareholders received 1.135 shares of BB&T common stock in
exchange for each share of UCB common stock held, which resulted in the issuance
of 27.7 million shares. The purpose of this filing is to report the combined
financial condition and combined results of operations including UCB for the
period ending July 31, 1997 and to report certain prior period balances restated
to include the accounts of UCB.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibit 99.1 Combined Balance Sheets and Statements of Income, including
explanatory notes, including BB&T and UCB for the periods
indicated.
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BB&T CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(INCLUDES THE ACCOUNTS OF UNITED CAROLINA BANCSHARES CORPORATION)
JULY 31, 1997
(UNAUDITED)
(DOLLARS IN THOUSANDS)
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ASSETS
Cash and due from banks...................................................................................... $ 716,120
Interest-bearing deposits with banks......................................................................... 20,920
Federal funds sold and securities purchased under resale agreements or similiar arrangements................. 21,960
Securities available for sale................................................................................ 6,379,115
Securities held to maturity.................................................................................. 111,745
Loans held for sale.......................................................................................... 245,621
Loans and leases, net of unearned income..................................................................... 18,915,325
Allowance for loan and lease losses....................................................................... (253,219)
Loans and leases, net................................................................................... 18,662,106
Premises and equipment, net.................................................................................. 369,426
Other assets................................................................................................. 795,610
Total assets............................................................................................ $27,322,623
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand deposits....................................................................... $ 2,621,462
Savings and interest checking............................................................................. 1,970,281
Money rate savings........................................................................................ 4,603,897
Other time deposits....................................................................................... 10,299,130
Total deposits.......................................................................................... 19,494,770
Short-term borrowed funds.................................................................................... 2,687,099
Long-term debt............................................................................................... 2,678,561
Accounts payable and other liabilities....................................................................... 356,588
Total liabilities....................................................................................... 25,217,018
Shareholders' equity:
Preferred stock........................................................................................... --
Common stock.............................................................................................. 676,646
Additional paid-in capital................................................................................ 69,976
Retained earnings......................................................................................... 1,322,463
Loan to employee stock ownership plan and unvested restricted stock....................................... (1,813)
Net unrealized appreciation on securities available for sale, net of income taxes......................... 38,333
Total shareholders' equity.............................................................................. 2,105,605
Total liabilities and shareholders' equity.............................................................. $27,322,623
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The accompanying notes are an integral part of these consolidated financial
statements.
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BB&T CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(INCLUDES THE OPERATING RESULTS OF UNITED CAROLINA BANCSHARES CORPORATION)
FOR THE MONTH ENDED JULY 31, 1997
(UNAUDITED)
(DOLLARS IN THOUSANDS)
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Interest Income
Interest and fees on loans and leases........................................................................ $ 146,519
Interest and dividends on securities......................................................................... 34,979
Interest on temporary investments............................................................................ 242
Total interest income..................................................................................... 181,740
Interest Expense
Interest on deposits......................................................................................... 63,501
Interest on short-term borrowings............................................................................ 12,189
Interest on long-term debt................................................................................... 13,207
Total interest expense.................................................................................... 88,897
Net interest income............................................................................................ 92,843
Provision for loan and lease losses.......................................................................... 8,001
Noninterest Income
Service charges on deposits.................................................................................. 13,000
Mortgage banking activities.................................................................................. 4,359
Trust revenue................................................................................................ 2,840
Agency insurance commissions................................................................................. 3,500
Other insurance commissions.................................................................................. 943
Other nondeposit fees and commissions........................................................................ 8,911
Securities gains, net........................................................................................ 82
Other income (Note B)........................................................................................ 2,333
Total noninterest income.................................................................................. 35,968
Noninterest Expense
Personnel expense (Note B)................................................................................... 52,521
Occupancy and equipment expense (Note B)..................................................................... 25,544
Federal deposit insurance expense............................................................................ 425
Foreclosed property expense.................................................................................. 282
Amortization expense -- intangible assets.................................................................... 1,922
Other noninterest expense (Note B)........................................................................... 75,467
Total noninterest expense................................................................................. 156,161
Loss before income tax benefit (Note B)...................................................................... (35,351)
Income tax benefit (Note B).................................................................................. (10,586)
Net loss (Note B)......................................................................................... $ (24,765)
Per Common Share
Net loss (Note B):
Primary................................................................................................... $ (0.18)
Fully diluted............................................................................................. $ (0.18)
Weighted average shares outstanding
Primary................................................................................................... 137,762,182
Fully diluted............................................................................................. 137,887,169
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The accompanying notes are an integral part of these consolidated financial
statements.
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BB&T CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
RESTATED TO INCLUDE THE ACCOUNTS OF UNITED CAROLINA BANCSHARES CORPORATION
(UNAUDITED)
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MARCH 31, 1997 JUNE 30, 1997
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(DOLLARS IN THOUSANDS)
ASSETS
Cash and due from banks..................................................................... $ 708,118 $ 848,420
Interest-bearing deposits with banks........................................................ 8,707 11,305
Federal funds sold and securities purchased under resale agreements or similiar
arrangements............................................................................. 88,274 21,362
Securities available for sale............................................................... 6,092,200 6,378,196
Securities held to maturity................................................................. 166,599 154,111
Loans held for sale......................................................................... 273,020 258,216
Loans and leases, net of unearned income.................................................... 18,297,896 18,873,776
Allowance for loan and lease losses...................................................... (242,253) (251,222)
Loans and leases, net.................................................................. 18,055,643 18,622,554
Premises and equipment, net................................................................. 383,621 390,976
Other assets................................................................................ 737,230 786,941
Total assets........................................................................... $ 26,513,412 $ 27,472,081
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing demand deposits...................................................... $ 2,619,058 $ 2,761,412
Savings and interest checking............................................................ 2,061,078 2,021,928
Money rate savings....................................................................... 4,568,388 4,618,570
Other time deposits...................................................................... 10,346,185 10,648,820
Total deposits......................................................................... 19,594,709 20,050,730
Short-term borrowed funds................................................................... 2,197,953 2,324,930
Long-term debt.............................................................................. 2,275,539 2,643,534
Accounts payable and other liabilities...................................................... 340,723 335,140
Total liabilities...................................................................... 24,408,924 25,354,334
Shareholders' equity:
Preferred stock.......................................................................... -- --
Common stock............................................................................. 643,240 636,183
Additional paid-in capital............................................................... 174,996 117,058
Retained earnings........................................................................ 1,294,198 1,347,400
Loan to employee stock ownership plan and unvested restricted stock...................... (1,935) (1,819)
Net unrealized (depreciation) appreciation on securities available for sale, net of
income taxes............................................................................ (6,011) 18,925
Total shareholders' equity............................................................. 2,104,488 2,117,747
Total liabilities and shareholders' equity............................................. $ 26,513,412 $ 27,472,081
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
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BB&T CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
RESTATED TO INCLUDE THE OPERATING RESULTS OF UNITED CAROLINA BANCSHARES
CORPORATION
(UNAUDITED)
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FOR THE
THREE FOR THE SIX
FOR THE THREE MONTHS ENDED MONTHS ENDED
MONTHS ENDED JUNE 30, JUNE 30,
MARCH 31, 1997 1997 1997
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(DOLLARS IN THOUSANDS)
Interest Income
Interest and fees on loans & leases......................................... $ 403,851 $ 429,306 $ 833,157
Interest and dividends on securities........................................ 96,729 102,516 199,245
Interest on temporary investments........................................... 681 856 1,537
Total interest income.................................................... 501,261 532,678 1,033,939
Interest Expense
Interest on deposits........................................................ 179,326 186,643 365,969
Interest on short-term borrowed funds....................................... 27,005 32,532 59,537
Interest on long-term debt.................................................. 30,128 34,912 65,040
Total interest expense................................................... 236,459 254,087 490,546
Net interest income........................................................... 264,802 278,591 543,393
Provision for loan and lease losses......................................... 20,850 25,100 45,950
Noninterest Income
Service charges on deposits................................................. 36,456 37,803 74,259
Mortgage banking activities................................................. 11,752 10,919 22,671
Trust revenue............................................................... 6,858 8,504 15,362
Agency insurance commissions................................................ 11,296 9,205 20,501
Other insurance commissions................................................. 3,557 3,347 6,904
Other nondeposit fees and commissions....................................... 22,636 25,326 47,962
Securities gains (losses), net.............................................. 814 (933 ) (119 )
Other income................................................................ 6,743 7,084 13,827
Total noninterest income................................................. 100,112 101,255 201,367
Noninterest Expense
Personnel expense........................................................... 102,088 101,054 203,142
Occupancy and equipment expense............................................. 31,284 33,164 64,448
Federal deposit insurance expense........................................... 1,237 1,298 2,535
Foreclosed property expense................................................. 771 677 1,448
Amortization expense -- intangible assets................................... 4,353 5,536 9,889
Other noninterest expense................................................... 57,858 63,597 121,455
Total noninterest expense................................................ 197,591 205,326 402,917
Income before income taxes.................................................. 146,473 149,420 295,893
Provision for income taxes.................................................. 49,851 50,760 100,611
Net income............................................................... $ 96,622 $ 98,660 $ 195,282
Per Common Share
Net income:
Primary.................................................................. $ 0.69 $ 0.71 $ 1.40
Fully diluted............................................................ $ 0.69 $ 0.71 $ 1.40
Dividends paid on common shares............................................. $ 0.27 $ 0.27 $ 0.54
Weighted average shares outstanding
Primary.................................................................. 139,203,042 138,810,123 139,081,467
Fully diluted............................................................ 139,203,042 139,100,159 139,394,135
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The accompanying notes are an integral part of these consolidated financial
statements.
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BB&T CORPORATION AND SUBSIDIARIES
NOTES TO COMBINED FINANCIAL STATEMENTS
JULY 31, 1997
A. BASIS OF PRESENTATION
On July 1, 1997, BB&T Corporation ("BB&T") consummated the acquisition
United Carolina Bancshares Corporation ("UCB") in a transaction accounted for as
a pooling of interests. Pursuant to the risk sharing provisions of Accounting
Series Release Nos. 130 and 135 promulgated by the Securities and Exchange
Commission, the operating results for the month of July, 1997, for BB&T
including the results of UCB and its former subsidiaries are provided herein.
In the opinion of management, the accompanying unaudited financial
statements contain all adjustments necessary to present fairly the combined and
restated results of BB&T and UCB. The results of operations for the month of
July were materially adversely affected by the nonrecurring merger-related
charges discussed in Note B and are not indicative of future operating results.
B. NONRECURRING CHARGES
During July, 1997, BB&T recorded nonrecurring merger-related charges and
expenses as follows. (DOLLARS IN THOUSANDS).
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Losses on the disposal of premises and equipment related to the consolidation of branch offices and bank operating
functions........................................................................................................ $31,491
Cost associated with severance pay, termination of employment contracts, early retirement packages and other
employment-related matters....................................................................................... 16,998
Expenses in connection with early termination of lease contracts and other occupancy-related costs................. 11,773
All other costs, including professional fees, printing, mailing, regulatory filing fees, operational charge-offs,
charitable donations, and branch and departmental supplies....................................................... 31,783
Total nonrecurring merger-related charges and expenses............................................................. 92,045
Income tax benefits................................................................................................ 32,388
Nonrecurring merger-related charges and expenses, net of income tax benefits....................................... $59,657
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In addition to the charges described above, it is anticipated that
additional nonrecurring merger-related costs of approximately $13.9 million will
be recorded during the remainder of the third quarter and an additional $6.4
million will be recorded in the fourth quarter of 1997. The third quarter
expenses will be partially offset by the gain on divestiture of deposits
discussed in Note C.
C. DIVESTITURE OF DEPOSITS
In conjunction with the merger of BB&T and UCB, BB&T is required to divest
certain deposits and branch locations to remain in compliance with anti-trust
regulations. It is currently estimated that BB&T will divest approximately
$505.2 million of deposits during August, 1997 and record a gain on the
divestiture of approximately $48.0 million which will serve to partially offset
the nonrecurring merger-related charges and expenses described in Note B.
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