SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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AMENDMENT NO. 1
TO
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): December 31, 2000
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SEACOAST FINANCIAL SERVICES CORPORATION
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(Exact name of Registrant as Specified in Charter)
Massachusetts 000-25077 04-1659040
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(State of Incorporation) Commission File Number (IRS Employer Identification Number)
One Compass Place, New Bedford, Massachusetts 02740
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(Address of Principal Executive Offices) (Zip Code)
(508) 984-6000
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(Registrant's Telephone Number)
Not Applicable
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(Former Name or Former Address if Changed Since Last Report)
ITEM 7. FINANCIAL STATEMENT, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
Pursuant to the requirements of Form 8-K, Seacoast Financial Services
Corporation (the "Company") hereby files this Amendment No.1 to its Current
Report on Form 8-K initially filed with the Securities and Exchange Commission
on January 12, 2001 to report its acquisition of Home Port Bancorp, Inc. (Home
Port), a one bank holding company, on December 31, 2000. Pursuant to the
Agreement and Plan of Merger dated as of July 20, 2000, each share of common
stock of Home Port was exchanged for $37 in cash, resulting in a transaction
value of approximately $68.2 million, exclusive of one-time transactions costs.
This acquisition is being accounted for under the purchase method of accounting.
(b) Pro Forma Financial Information
The following unaudited pro forma condensed consolidated
financial statements of the Company are presented herein reflecting
the acquisition of Home Port:
-- Condensed consolidated balance sheet as of September 30,
2000
-- Condensed consolidated statement of income for the nine
months ended September 30, 2000
-- Condensed consolidated statement of income for the year
ended December 31, 1999.
The pro forma information should be read in conjunction with the
notes thereto and the historical consolidated financial statements of
the Company and Home Port including the related notes as set forth in
Item 7.(a) of the Form 8-K filed on January 12, 2001.
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 thereunto duly authorized.
SEACOAST FINANCIAL SERVICES CORPORATION
Date: March 15, 2001 By /s/ Kevin G. Champagne
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Kevin G. Champagne
President and Chief Executive Officer
SEACOAST FINANCIAL SERVICES CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2000
(IN THOUSANDS)
SEACOAST PRO FORMA PRO FORMA
FINANCIAL HOME PORT ADJUSTMENTS CONSOLIDATED
----------- --------- -------- -----------
DR. (CR.)
ASSETS:
Cash and cash equivalents .......................... $ 81,130 $ 16,168 $ -- $ 97,298
Investment securities--
Available-for-sale, at fair value ............... 232,999 12,342 -- 245,341
Held-to-maturity, at amortized cost ............. 12,398 15,227 (213)(1) 27,412
Restricted-equity securities .................... 18,795 4,477 -- 23,272
Loans held-for-sale ................................ -- 11,287 -- 11,287
Loans, net ......................................... 2,009,249 274,516 (3,482)(1) 2,280,283
Banking premises and equipment, net ................ 42,263 3,423 4,719(1) 50,405
Net deferred tax asset ............................. 12,686 817 (543)(1) 12,960
Intangible assets .................................. 1,717 -- 39,535(1) 41,252
Other assets ....................................... 19,287 3,032 591(1) 22,910
----------- --------- -------- -----------
Total assets .................................. $ 2,430,524 $ 341,289 $ 40,607 $ 2,812,420
=========== ========= ======== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Deposits ........................................... $ 1,746,962 $ 248,417 $ (119)(1) $ 1,995,498
Short-term borrowings .............................. 33,781 -- -- 33,781
Federal Home Loan Bank advances .................... 344,983 59,956 (70,701)(1)(2) 475,640
Accrued expenses and other liabilities ............. 21,446 2,703 -- 24,149
----------- --------- -------- -----------
Total liabilities ............................. 2,147,172 311,076 (70,820) 2,529,068
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Stockholders' equity:
Common stock .................................... 268 23 23(1) 268
Additional paid-in capital ...................... 152,789 17,473 17,473(1) 152,789
Treasury stock .................................. (15,951) (4,397) (4,397)(1) (15,951)
Retained earnings ............................... 162,145 17,231 17,231(1) 162,145
Accumulated other comprehensive income (loss) ... (909) (117) (117)(1) (909)
Unearned compensation - ESOP and restricted stock (14,836) -- -- (14,836)
Shares held in employee trust ................... (154) -- -- (154)
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Total stockholders' equity .................... 283,352 30,213 30,213 283,352
----------- --------- -------- -----------
Total liabilities and stockholders' equity .... $ 2,430,524 $ 341,289 $(40,607) $ 2,812,420
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SEACOAST FINANCIAL SERVICES CORPORATION AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2000
(IN THOUSANDS)
(1) To reflect the impact of the acquisition of Home Port by Seacoast Financial
based on the terms of the Agreement and Plan of Merger dated July 20, 2000,
assuming the transaction occurred on September 30, 2000:
Amount payable:
1,841,890 shares at $37/share $ 68,150
Stock option buyout 337
Transaction costs, net of
estimated tax benefit 2,418
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70,905
Book value of Home Port 30,213
Transaction costs incurred to date 293
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(30,506)
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Premium 40,399
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Purchase accounting adjustments (to state assets
and liabilities at fair value):
Loans 3,482
Investments 213
Banking premises (4,719)
Deposits 119
Borrowings 89
Pension plan (591)
Deferred taxes 543
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Net impact-Purchase
accounting adjustments (864)
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Intangible Asset $ 39,535
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(2) To fund remaining acquisition costs with advances from the Federal Home Loan
Bank.
SEACOAST FINANCIAL SERVICES CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
SEACOAST PRO FORMA PRO FORMA
FINANCIAL HOME PORT ADJUSTMENTS CONSOLIDATED
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DR. (CR.)
Interest income................................. $ 120,897 $ 18,697 $ (329)(1) $ 139,923
Interest expense................................ 61,749 8,406 2,847(1) (3) 73,002
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Net interest income........................ 59,148 10,291 2,518 66,921
Provision for loan losses....................... 3,500 150 -- 3,650
Non-interest income............................. 7,408 1,280 -- 8,688
Non-interest expense............................ 36,048 5,654 2,329(1) (2) 44,031
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Income before taxes........................ 27,008 5,767 4,847 27,928
Provision for income taxes...................... 9,486 2,032 (891)(4) 10,627
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Net income................................. $ 17,522 $ 3,735 $ 3,956 $ 17,301
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Earnings per share-diluted................. $ 0.74 $ 0.73
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Weighted average shares
outstanding-diluted.................... 23,839 23,839
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Pro forma adjustments consist of (in thousands):
1. Amortization of purchase accounting adjustments as follows:
Increase interest income 329
Decrease interest expense 78
Increase non-interest expense (depreciation) (29)
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378
2. Amortize intangible assets using the straight-line method over a 15 year period (2,300)
3. Recognize interest expense on borrowed funds used to finance acquisition (2,925)
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Impact on income before taxes (4,847)
4. Tax effect of Items 1. and 3. at an estimated effective tax rate of 35% 891
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$ (3,956)
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SEACOAST FINANCIAL SERVICES CORPORATION AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1999
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
SEACOAST PRO FORMA PRO FORMA
FINANCIAL HOME PORT ADJUSTMENTS CONSOLIDATED
---------- --------- -------- ------------
DR. (CR.)
Interest income................................. $ 137,952 $ 21,952 $ (456)(1) $ 160,360
Interest expense................................ 63,510 9,521 3,796(1) (3) 76,827
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Net interest income........................ 74,442 12,431 3,340 83,533
Provision for loan losses....................... 2,000 200 -- 2,200
Non-interest income............................. 9,994 1,580 -- 11,574
Non-interest expense............................ 44,516 6,073 3,105(1) (2) 53,694
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Income before taxes........................ 37,920 7,738 6,445 39,213
Provision for income taxes...................... 13,394 2,673 (1,182)(4) 14,885
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Net income................................. $ 24,526 $ 5,065 $ 5,263 $ 24,328
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Earnings per share-diluted................. $ 0.97 $ 0.96
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Weighted average shares
outstanding-diluted.................... 25,356 25,356
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Pro forma adjustments consist of (in thousands):
1. Amortization of purchase accounting adjustments as follows:
Increase interest income 456
Decrease interest expense 104
Increase non-interest expense (depreciation) (38)
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522
2. Amortize intangible assets using the straight-line method over a 15 year period (3,067)
3. Recognize interest expense on borrowed funds used to finance acquisition (3,900)
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Impact on income before taxes (6,445)
4. Tax effect of Items 1. and 3. at an estimated effective tax rate of 35% 1,182
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$ (5,263)
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