Exhibit 99.2
Jefferson Bancshares, Inc.
Consolidated Proforma Statements of Condition
Jefferson Bancshares 9/30/2008 | + | State of Franklin Bancshares 9/30/2008 | + | Market Value Adjustments | + | Pro Forma Co. | + | Merger Adjustments | = | 9/30/2008 Pro Forma | ||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||
Cash and Securities | 17,135 | 77,599 | (7,500 | ) | (1 | ) | 70,099 | (12,913 | ) | (7 | ) | 74,321 | ||||||||||||||||||
Gross Loans | 288,762 | 224,113 | 844 | (2 | ) | 224,957 | 513,719 | |||||||||||||||||||||||
Loan Loss Reserves | (1,958 | ) | (1,579 | ) | (1,579 | ) | (1,000 | ) | (8 | ) | (4,537 | ) | ||||||||||||||||||
Net Loans | 286,804 | 222,534 | 844 | 223,378 | 510,182 | |||||||||||||||||||||||||
Premises and Equipment | 15,138 | 10,839 | (939 | ) | (3 | ) | 9,900 | 25,038 | ||||||||||||||||||||||
Goodwill | — | — | — | — | 27,795 | (9 | ) | 27,795 | ||||||||||||||||||||||
Core Deposit Intangibles | — | — | — | — | 3,421 | (10 | ) | 3,421 | ||||||||||||||||||||||
Other Assets | 11,269 | 10,439 | 10,439 | 3,679 | (11 | ) | 25,387 | |||||||||||||||||||||||
Total Assets | 330,346 | 321,411 | (7,595 | ) | 313,816 | 20,982 | 666,144 | |||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||
Deposits | 217,897 | 259,970 | 1,225 | (4 | ) | 261,195 | 479,092 | |||||||||||||||||||||||
Borrowings | 38,000 | 56,063 | — | 56,063 | — | 94,063 | ||||||||||||||||||||||||
Other Liabilities | 1,353 | 4,184 | — | 4,184 | — | 5,537 | ||||||||||||||||||||||||
Trust Preferred | — | 10,000 | (3,165 | ) | (5 | ) | 6,835 | 6,835 | ||||||||||||||||||||||
Total Liabilities | 257,250 | 330,217 | (1,940 | ) | 328,277 | — | 585,527 | |||||||||||||||||||||||
Total Equity | 73,096 | (8,806 | ) | (5,655 | ) | (6 | ) | (14,461 | ) | 20,982 | (12 | ) | 79,617 | |||||||||||||||||
Total Liability and Stockholders Equity | 330,346 | 321,411 | (7,595 | ) | 313,816 | 20,982 | 665,144 | |||||||||||||||||||||||
(1) | Mark-to-market of securities portfolio |
(2) | Fair value adjustment to loans |
(3) | Fair value adjustment to property |
(4) | Fair value adjustment to deposits |
(5) | Fair value adjustment to TRUP |
(6) | Fair value adjustment to equity |
(7) | Cash portion of deal value, expenses and further adjustments to the investment portfolio |
(8) | Additional provision to ALLL |
(9) | Tax effect of net fair value adjustments |
(10) | Goodwill created in the transaction |
(11) | CDI created in transaction |
(12) | Issuance of stock and elimination of target equity |
JEFFERSON BANCSHARES, INC.
Consolidated Proforma Statements of Earnings
(Dollars in Thousands)
Jefferson Bancshares Fiscal Year Ended 6/30/2008 | State of Franklin Bancshares 12 Months Ended 6/30/2008 | Total 12 Months Ended 6/30/2008 | ||||||||
Interest income: | ||||||||||
Interest on loans receivable | $ | 19,782 | $ | 15,999 | $ | 35,781 | ||||
Interest on investment securities | 733 | 6,826 | $ | 7,559 | ||||||
Other interest | 331 | 673 | $ | 1,004 | ||||||
Total interest income | 20,846 | 23,498 | 44,344 | |||||||
Interest expense: | ||||||||||
Deposits | 7,665 | 9,363 | $ | 17,028 | ||||||
Agreements to repurchase | — | 50 | $ | 50 | ||||||
Advances from FHLB | 1,583 | 2,021 | $ | 3,604 | ||||||
Trust preferred securities | — | 613 | $ | 613 | ||||||
Total interest expense | 9,248 | 12,047 | 20,682 | |||||||
Net interest income | 11,598 | 11,451 | $ | 23,049 | ||||||
Provision for loan losses | 451 | 55 | $ | 506 | ||||||
Net interest income after provision for loan losses | 11,147 | 11,396 | 22,543 | |||||||
Noninterest income: | ||||||||||
Dividends | 36 | — | $ | 36 | ||||||
Mortgage origination income | 338 | 334 | $ | 672 | ||||||
Service charges and fees | 768 | 758 | $ | 1,526 | ||||||
Gain on sale of fixed assets | 1 | — | $ | 1 | ||||||
Gain (loss) on sale of investment securities, net | — | 541 | $ | 541 | ||||||
Real estate sales commission | — | 784 | $ | 784 | ||||||
Gain on sale of foreclosed real estate, net | 51 | — | $ | 51 | ||||||
BOLI increase in cash value | 224 | — | $ | 224 | ||||||
Other | 102 | 37 | $ | 139 | ||||||
Total noninterest income | 1,520 | 2,454 | 3,974 | |||||||
Noninterest expense: | ||||||||||
Compensation and benefits | 5,518 | 5,171 | $ | 10,689 | ||||||
Occupancy expense | 702 | 737 | $ | 1,439 | ||||||
Equipment and data processing expense | 1,458 | 1,327 | $ | 2,785 | ||||||
Advertising | 246 | 569 | $ | 815 | ||||||
Other | 1,965 | 1,906 | $ | 3,871 | ||||||
Total noninterest expense | 9,889 | 9,710 | 19,599 | |||||||
Earnings before income taxes | 2,778 | 4,140 | (1) | 6,918 | ||||||
Income taxes: | ||||||||||
Current | 911 | 1,035 | $ | 1,946 | ||||||
Deferred | 620 | 21 | $ | 641 | ||||||
Total income taxes | 1,531 | 1,056 | 2,587 | |||||||
Net earnings | $ | 1,247 | $ | 3,084 | $ | 4,331 | ||||
(1) Excludes: | ||||||||||
Increase in Loan FV - FASB 159 | 124 | |||||||||
Decrease in Trading Sec FV - FASB 159 | (7,460 | ) |
JEFFERSON BANCSHARES, INC. AND STATE OF FRANKLIN
Consolidated Proforma Statements of Earnings
(Dollars in Thousands, Except Per Share Amounts)
JFBI Three Months Ended 9/30/2008 | SOFB Three Months Ended 9/30/2008 | Total Three Months Ended 9/30/2008 | |||||||||
Interest income: | |||||||||||
Interest on loans receivable | $ | 4,597 | $ | 3,624 | $ | 8,221 | |||||
Interest on investment securities | 29 | 859 | $ | 888 | |||||||
Other interest | 42 | 57 | $ | 99 | |||||||
Total interest income | 4,668 | 4,540 | 9,208 | ||||||||
Interest expense: | |||||||||||
Deposits | 1,325 | 1,588 | $ | 2,913 | |||||||
Agreements to repurchase | — | 12 | $ | 12 | |||||||
Advances from FHLB | 356 | 586 | $ | 942 | |||||||
Trust preferred securities | — | 115 | $ | 115 | |||||||
Total interest expense | 1,681 | 2,301 | 3,867 | ||||||||
Net interest income | 2,987 | 2,239 | $ | 5,226 | |||||||
Provision for loan losses | 160 | 4 | $ | 164 | |||||||
Net interest income after provision for loan losses | 2,827 | 2,235 | 5,062 | ||||||||
Noninterest income: | |||||||||||
Dividends | 11 | — | $ | 11 | |||||||
Mortgage origination income | 54 | 46 | $ | 100 | |||||||
Service charges and fees | 245 | 232 | $ | 477 | |||||||
Gain on sale of fixed assets | — | — | $ | 0 | |||||||
Gain (loss) on sale of investment securities, net | — | (16,856 | ) | ($16,856 | ) | ||||||
Real estate sales commission | — | 161 | $ | 161 | |||||||
Gain on sale of foreclosed real estate, net | — | — | $ | 0 | |||||||
BOLI increase in cash value | 60 | — | $ | 60 | |||||||
Other | 24 | 3 | $ | 27 | |||||||
Total noninterest income | 394 | (16,414 | ) | (16,020 | ) | ||||||
Noninterest expense: | |||||||||||
Compensation and benefits | 1,318 | 1,111 | $ | 2,429 | |||||||
Occupancy expense | 183 | 161 | $ | 344 | |||||||
Equipment and data processing expense | 358 | 326 | $ | 684 | |||||||
Advertising | 3 | 138 | $ | 141 | |||||||
Other | 477 | 536 | $ | 1,013 | |||||||
Total noninterest expense | 2,339 | 2,272 | 4,611 | ||||||||
Earnings before income taxes | 882 | (16,451 | )(1) | (15,569 | ) | ||||||
Income taxes: | |||||||||||
Current | 332 | — | $ | 332 | |||||||
Deferred | 17 | (2,858 | ) | ($2,841 | ) | ||||||
Total income taxes | 349 | (2,858 | ) | (2,509 | ) | ||||||
Net earnings | $ | 533 | ($13,593 | ) | ($13,060 | ) | |||||
(1) Excludes: | |||||||||||
Increase in Loan FV - FASB 159 | — | ||||||||||
Decrease in Trading Sec FV - FASB 159 | (6,529 | ) |