UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: September 1, 1996
(Date of earliest event reported)
_________________
WINTRUST FINANCIAL CORPORATION
(Exact name of Registrant as specified in
its governing instruments)
Illinois
(State or other jurisdiction of organization)
333-4645* 36-3873352
(Commission File Number) (I.R.S. Employer Identification No.)
727 North Bank Lane
Lake Forest, Illinois
(Address of principal executive office)
60045-1951
(Zip Code)
847/234-2882
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
_______________
* Registrant became subject to requirements to file
periodic reports under the Securities and Exchange Act of 1934
as a result of the registration of its securities on Form S-4,
which registration statement became effective on July 30, 1996
(Registration No. 333-4645).
As previously reported on a Form 8-K dated September 1,
1996 and filed with the Commission on September 13, 1996, on
September 1, 1996, Wintrust Financial Corporation (the
"Registrant") completed its reorganization pursuant to a
definitive reorganization agreement dated as of May 28, 1996
(the "Reorganization"). As a result of the Reorganization,
Lake Forest Bancorp, Inc. ("Lake Forest"), Hinsdale Bancorp,
Inc. ("Hinsdale"), Libertyville Bancorp, Inc. ("Libertyville")
and Crabtree Capital Corporation ("Crabtree") were merged with
newly formed merger subsidiaries of North Shore Community
Bancorp, Inc. ("North Shore") such that North Shore, with the
new articles and by-laws provided for in the reorganization
agreement and the name changed to Wintrust Financial
Corporation as of September 1, 1996, became the parent holding
company of each of the separate businesses. The shareholders
of each of the companies exchanged their shares for Wintrust
Common Stock. The transaction is being accounted for using
the pooling-of-interests method of accounting. This Form 8-
K/A is being filed in accordance with the Commission's rules
to include the required pro forma financial information
relating to the transaction which was not available at the
time of the initial filing on Form 8-K.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits.
-----------------------------------------------------
a. Financial Statements of Businesses Acquired
The annual financial statements required by Item 7(a)
were previously filed as part of the Registrant's Form 8-K
dated September 1, 1996, and filed on September 13, 1996. The
following financial statements have been included herein to
add the interim financial information required by this item
for the period ended June 30, 1996 for each of the companies
party to the Reorganization:
NORTH SHORE COMMUNITY BANCORP, INC., AND SUBSIDIARIES
Independent Auditors' Report (incorporated herein by
reference to page F-1 of Registrant's Form S-4
Registration Statement, as amended (No. 333-4645),
filed with the Securities and Exchange Commission on
July 22, 1996)
Consolidated Statements of Condition as of June 30, 1996
(unaudited) and December 31, 1995 and 1994
Consolidated Statements of Operations for the six months
ended June 30, 1996 and 1995 (unaudited), the year ended
December 31, 1995, and the period ended December 31, 1994
Consolidated Statements of Changes in Shareholders' Equity
for the six months ended June 30, 1996 (unaudited), the
year ended December 31, 1995, and the period ended
December 31, 1994
Consolidated Statements of Cash Flows for the six months
ended June 30, 1996 and 1995 (unaudited), the year ended
December 31, 1995 and the period ended December 31, 1994
LAKE FOREST BANCORP, INC. AND SUBSIDIARIES
Independent Auditors' Report (incorporated herein by
reference to page F-19 of Registrant's Form S-4
Registration Statement, as amended (No. 333-4645),
filed with the Securities and Exchange Commission on
July 22, 1996)
Consolidated Statements of Condition as of June 30, 1996
(unaudited) and December 31, 1995 and 1994
Consolidated Statements of Operations for the six months
ended June 30, 1996 and 1995 (unaudited), and the years
ended December 31, 1995, 1994 and 1993
Consolidated Statements of Changes in Stockholders' Equity
for the six months ended June 30, 1996 (unaudited), and the
years ended December 31, 1995, 1994 and 1993
Consolidated Statements of Cash Flows for the six months
ended June 30, 1996 and 1995 (unaudited), and the years
ended December 31, 1995, 1994 and 1993
HINSDALE BANCORP, INC. AND SUBSIDIARIES
Independent Auditors' Report (incorporated herein by
reference to page F-39 of Registrant's Form S-4
Registration Statement, as amended (No. 333-4645),
filed with the Securities and Exchange Commission on
July 22, 1996)
Consolidated Statements of Condition as of June 30, 1996
(unaudited) and December 31, 1995 and 1994
Consolidated Statements of Operations for the six months
ended June 30, 1996 and 1995 (unaudited), the years ended
December 31, 1995 and 1994, and the period ended December 31,
1993
Consolidated Statements of Changes in Stockholders' Equity
for the six months ended June 30, 1996 (unaudited), the
years ended December 31, 1995 and 1994, and the period
ended December 31, 1993
Consolidated Statements of Cash Flows for the six months
ended June 30, 1996 and 1995 (unaudited), the years ended
December 31, 1995 and 1994, and the period ended December 31,
1993
Page 2 of 34
LIBERTYVILLE BANCORP, INC. AND SUBSIDIARIES
Independent Auditors' Report (incorporated herein by
reference to page F-58 of Registrant's Form S-4
Registration Statement, as amended (No. 333-4645),
filed with the Securities and Exchange Commission on
July 22, 1996)
Consolidated Statements of Condition as of June 30, 1996
(unaudited) and December 31, 1995
Consolidated Statements of Operations for the six months
ended June 30, 1996 and 1995 (unaudited) and the period
ended December 31, 1995
Consolidated Statements of Changes in Stockholders' Equity
for the six months ended June 30, 1996 (unaudited) and the
period ended December 31, 1995
Consolidated Statements of Cash Flows for the six months
ended June 30, 1996 and 1995 (unaudited) and the period
ended December 31, 1995
CRABTREE CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited) as of June 30,
1996 and 1995
Consolidated Statements of Income (unaudited) for the six
months ended June 30, 1996 and 1995
Consolidated Statements of Stockholders' Equity
(unaudited) for the six months ended June 30, 1996 and
1995
Consolidated Statements of Cash Flows (unaudited) for the
six months ended June 30, 1996 and 1995
Page 3 of 34
NORTH SHORE COMMUNITY BANCORP, INC.
Consolidated Statements of Condition
(in thousands, except share data)
______________________________________________________________
June 30, December 31,
---------------
Assets 1996 1995 1994
------ -------- ------- ------
(unaudited)
Cash and demand balances due from
banks $ 3,028 3,772 2,042
Money market assets:
Interest-bearing deposits at
banks 8,000 7,000 14,000
Federal funds sold 9,630 12,000 7,170
Investment securities:
Available-for-sale, at fair value 11,601 11,535 -
Held-to-maturity, at amortized
cost (fair value of $9,101) - - 9,172
Loans 90,313 63,439 9,618
Less allowance for possible loan
losses 582 440 50
-------- ------- ------
Loans, net 89,731 62,999 9,568
Accrued interest receivable 633 571 176
Premises and equipment, net 8,235 5,807 2,522
Deferred organization costs 212 252 327
Goodwil 55 57 59
Other assets 1,547 1,129 128
-------- ------- ------
Total assets $132,672 105,122 45,164
======== ======= ======
Liabilities and Shareholders'
Equity
-----------------------------
Deposits:
Noninterest-bearing 16,499 13,571 5,539
Interest-bearing 103,458 80,086 31,197
-------- ------- ------
Total deposits 119,957 93,657 36,736
Accrued interest payable 165 142 31
Note payable 1,300 - -
Other liabilities 290 195 147
-------- ------- ------
Total liabilities 121,712 93,994 36,914
Shareholders' equity:
Common stock, no par value;
stated value $1 per share;
400,000 shares authorized;
254,217, 246,855 and 196,980
shares issued and outstanding
at June 30, 1996, December 31,
1995 and 1994, respectively 254 246 197
Convertible warrants, no par
value, 5,000 shares authorized,
issued, and outstanding 25 25 25
Surplus 12,212 11,651 7,961
Undivided profits (deficit) (1,533) (795) 67
Net unrealized gain on securities
available-for-sale 2 1 -
-------- ------- ------
Total shareholders' equity 10,960 11,128 8,250
-------- ------- ------
Total liabilities and shareholders'
equity $132,672 105,122 45,164
======== ======= ======
Page 4 of 34
NORTH SHORE COMMUNITY BANCORP, INC.
Consolidated Statements of Operations
(in thousands)
______________________________________________________________
Six months
ended Year ended Period ended
June 30, December 31, December 31,
------------
1996 1995 1995 1994
----- ----- ------------ ------------
(unaudited)
Interest income:
Loans, including
fees $3,033 757 2,649 72
Money market assets:
Interest-bearing
deposits at banks 253 538 914 169
Federal funds sold 238 275 478 142
Investment securities 311 284 546 77
------ ----- ----- ------
Total interest income 3,835 1,854 4,587 460
Interest expense:
Deposits 2,343 1,185 2,841 260
Term debt 1 - - 16
------ ----- ----- ------
Total interest expense 2,344 1,185 2,841 276
------ ----- ----- ------
Net interest income 1,491 669 1,746 184
Provision for possible
loan losses 170 120 428 50
------ ----- ----- ------
Net interest income
after provision for
possible loan losses 1,321 549 1,318 134
------ ----- ----- ------
Noninterest income:
Retail income 50 16 36 7
Fees on loans sold 238 37 196 -
Other income 14 18 32 29
------ ----- ----- ------
Total noninterest
income 302 71 264 36
------ ----- ----- ------
Noninterest expense:
Salaries and other
compensation 1,108 446 1,189 546
Net occupancy 186 46 124 43
Advertising and
marketing 232 64 205 65
Data processing 115 59 143 36
Depreciation -
furniture, fixtures
and equipment 118 48 104 22
Amortization of
organization costs
and goodwill 35 34 77 24
Merger related
expenses 170 - - -
Other 397 236 602 330
------ ----- ----- ------
Total noninterest
expense 2,361 933 2,444 1,066
------ ----- ----- ------
Net loss $ (738) (313) (862) (896)
====== ===== ===== ======
Loss per share $(2.94) (1.59) (4.29) (12.26)
====== ===== ===== ======
Page 5 of 34
NORTH SHORE COMMUNITY BANCORP, INC.
Consolidated Statements of Changes in
Shareholders' Equity
(in thousands)
____________________________________________________________________________
Net
unrealized
Undi- gain on Total
Com- Pre- Convert- vided securities share-
mon ferred ible Sur- profits available holders'
stock stock warrants plus (deficit) for sale equity
----- ------ -------- ----- ----------- -------- -------
Initial Capital
Contribution $ 1 500 25 - - - 526
Redemption of
5,000 warrants - - (25) - - - (25)
Reissuance of
2,500 warrants - - 13 - - - 13
Issuance of
2,500 warrants - - 12 - - - 12
Dividends paid - - - - (37) - (37)
Initial offering 173 - - 7,497 1,000 - 8,670
Capital issuance
costs - - - (13) - - (13)
Conversion of
preferred stock 23 (500) - 477 - - -
Net loss - - - - (896) - (896)
---- --- --- ------ ------ --- ------
Balance at
December 31,
1994 197 - 25 7,961 67 - 8,250
Common stock
issuance 49 - - 3,690 - - 3,739
Net loss - - - - (862) - (862)
Change in
unrealized
gain on
securities
available-for-
sale, net of
tax effect - - - - - 1 1
---- --- --- ------ ------ --- ------
Balance at
December 31,
1995 246 - 25 11,651 (795) 1 11,128
Common stock
issuance 9 - - 608 - - 617
Repurchase of
common stock (1) - - (47) - - (48)
Net loss - - - - (738) - (738)
Change in
unrealized gain
on securities
available-for-
sale, net of
tax effect - - - - - 1 1
---- --- --- ------ ------ --- ------
Balance at
June 30, 1996
(unaudited) $254 - 25 12,212 (1,533) 2 10,960
==== === === ====== ====== === ======
Page 6 of 34
NORTH SHORE COMMUNITY BANCORP, INC.
Consolidated Statements of Cash Flows
(in thousands)
______________________________________________________________________________
Six months Year ended Period ended
ended June 30, December 31, December 31,
--------------
1996 1995 1995 1994
---- ---- ----------- ------------
(unaudited)
Operating activities:
Net loss $ (738) (313) (862) (896)
Adjustments to reconcile
net loss to net cash
used in operating
activities:
Depreciation and
amortization 233 104 217 (38)
Provision for
possible loan losses 170 120 428 50
Net accretion/
amortization of
investment securities (216) (156) (257) (67)
Increase in accrued
interest receivable
and other assets (480) (538) (1,372) (606)
Increase in other
liabilities 118 (56) 159 235
------- ------- ------- -------
Net cash used in operating
activities (913) (839) (1,687) (1,322)
------- ------- ------- -------
Investing activities:
Net decrease (increase)
in interest-bearing
deposits at banks (1,000) - 7,000 (14,000)
Net decrease (increase)
in Federal funds sold 2,370 (4,869) (4,830) (7,170)
Purchase of investment
in Federal Reserve
Bank stock (128) - (14) (198)
Purchases of investment
securities (41,221) (7,313) (21,588) (8,907)
Maturity of investment
securities 41,500 11,095 19,495 -
Purchase of premises
and equipment (2,619) (548) (3,447) (2,625)
Net increase in loans (26,902) (22,666) (53,859) (9,618)
------- ------- ------- -------
Net cash used in investing
activities (28,000) (24,301) (57,243) (42,518)
------- ------- ------- -------
Financing activities:
Net increase in deposits 26,300 24,473 56,921 36,736
Proceeds from issuance
of common stock 617 - 3,739 8,658
Proceeds from issuance
of preferred stock - - - 500
Proceeds from issuance
of common stock warrants - - - 25
Repurchase of common stock (48) - - -
Proceeds from issuance
of long-term debt 1,300 - - 1,400
Repayment of long-term
debt - - - (1,400)
Dividends paid - - - (37)
------- ------- ------- -------
Net cash provided by
financing activities 28,169 24,473 60,660 45,882
------- ------- ------- -------
Net increase (decrease)
in cash and cash
equivalents (744) (667) 1,730 2,042
Cash and cash equivalents
at beginning of period 3,772 2,042 2,042 -
------- ------- ------- -------
Cash and cash equivalents
at end of period $ 3,028 1,375 3,772 2,042
======= ====== ====== =======
Supplemental disclosures
of cash flow informa-
tion -
Cash paid during
the year for:
Interest $ 2,321 1,134 2,730 245
Income taxes - - - -
======= ====== ====== =======
Page 7 of 34
LAKE FOREST BANCORP, INC.
AND SUBSIDIARY
Consolidated Statements of Condition
(in thousands, except share data)
_____________________________________________________________
June 30, December 31,
---------- ----------------
Assets 1996 1995 1994
------ ---------- ------- -------
(unaudited)
Cash and demand balances due
from banks $ 5,608 3,680 6,379
Money market assets:
Interest-bearing deposits
at banks 7,100 21,100 16,699
Federal funds sold 15,335 13,100 7,135
Investment securities:
Held-to-maturity, at amortized
cost (fair value of $4,851 in
1996, $4,959 in 1995 and
$29,270 in 1994) 5,001 5,002 29,984
Available-for-sale, at
fair value 38,229 33,890 5,917
Loans 140,207 110,673 70,258
Less allowance for possible
loan losses 1,061 938 642
-------- ------- -------
Net loans 139,146 109,735 69,616
Premises and equipment, net 8,109 8,144 7,222
Goodwill 44 45 47
Other assets 2,930 2,444 1,156
-------- ------- -------
Total assets $221,502 197,140 144,155
======== ======= =======
Liabilities and Stockholders' Equity
------------------------------------
Deposits:
Noninterest-bearing $ 17,724 16,930 13,787
Interest-bearing 186,710 164,256 112,280
-------- ------- -------
Total deposits 204,434 181,186 126,067
Accrued interest 325 339 182
Short-term debt 3,952 3,952 2,742
Repurchase agreements - - 5,022
Treasury tax and loan 955 528 694
Other liabilities 558 221 24
-------- ------- -------
Total liabilities 210,224 186,226 134,731
Stockholders' equity
Common stock $1 par value;
200,000 shares authorized;
160,810, 160,605, and 158,993
shares issued and outstanding
at June 30, 1996, December 31,
1995 and 1994, respectively 161 161 159
Convertible preferred stock no
par value; 7,500 shares
authorized;
1,700 shares issued and
outstanding 3 3 3
Surplus 9,549 9,533 9,406
Undivided profit (loss) 1,364 1,007 (8)
Net unrealized gain (loss) -
securities available-for-sale,
net of tax 201 210 (136)
-------- ------- -------
Total stockholders' equity 11,278 10,914 9,424
-------- ------- -------
Total liabilities and stock-
holders' equity $221,502 197,140 144,155
======== ======= =======
Page 8 of 34
LAKE FOREST BANCORP, INC.
AND SUBSIDIARY
Consolidated Statements of Operations
(in thousands, except per share data)
_______________________________________________________________
Six months ended
June 30, Year ended December 31,
---------------- -----------------------
1996 1995 1995 1994 1993
-------- ------- ----- ------ -------
(unaudited)
Interest income:
Loans, including
fees $ 5,263 3,706 8,058 4,412 2,419
Money market assets:
Interest-bearing
deposits at banks 226 768 1,330 555 258
Federal funds sold 355 440 876 361 239
Investment securities 1,295 719 1,916 1,380 827
------- ----- ------ ------ ------
Total interest income 7,139 5,633 12,180 6,708 3,743
------- ----- ------ ------ ------
Interest expense:
Deposits 4,338 3,475 7,473 3,744 1,939
Short-term debt 149 129 276 87 -
------- ----- ------ ------ ------
Total interest expense 4,487 3,604 7,749 3,831 1,939
------- ----- ------ ------ ------
Net interest income 2,652 2,029 4,431 2,877 1,804
Provision for possible
loan losses 224 135 301 240 240
------- ----- ------ ------ ------
Net interest income
after provision for
possible loan losses 2,428 1,894 4,130 2,637 1,564
------- ----- ------ ------ ------
Noninterest income:
Service charges on
deposits 69 69 146 105 92
Fees on loans sold 139 105 349 275 551
Gain on sale of
securities 18 - - 21 23
Trust fees 259 174 399 202 92
Other 48 90 221 46 25
------- ----- ------ ------ ------
Total noninterest
income 533 438 1,115 649 783
------- ----- ------ ------ ------
Noninterest expense:
Salaries and other
compensation 1,244 991 2,283 1,436 1,179
Net occupancy 211 185 394 223 190
Advertising 99 125 234 152 106
Data processing 186 149 314 211 158
Depreciation -
furniture and
equipment 143 100 236 132 66
Insurance 33 169 222 239 151
Merger related
expenses 170 - - - -
Other 373 326 719 385 297
------- ----- ------ ------ ------
Total noninterest
expense 2,459 2,045 4,402 2,778 2,147
------- ----- ------ ------ ------
Net income before
income taxes 502 287 843 508 200
Income tax expense/
(benefit) 145 (220) (172) - -
------- ----- ------ ------ ------
Net income $ 357 507 1,015 508 200
======= ===== ====== ====== ======
Earnings per share $ 2.03 3.06 5.95 3.05 1.32
======= ===== ====== ====== ======
Page 9 of 34
LAKE FOREST BANCORP, INC.
AND SUBSIDIARY
Consolidated Statements of Changes in Stockholders' Equity
(in thousands)
_______________________________________________________________________________
Net
unreal-
ized
gain
(loss)
Undivi- on securi- Total
Com- Pre- ded ties stock-
mon ferred profits available holders'
stock stock Surplus (loss) for sale equity
------ ------ ------- ------- --------- --------
Balance at
December 31, 1992 $126 3 6,819 (716) - 6,232
Common stock issuance 32 - 2,550 - - 2,582
Net income - - - 200 - 200
Change in unrealized gain
on securities available
-for-sale, net of tax
effect of $8 - - - - 16 16
---- ---- ----- ----- ----- ------
Balance at
December 31, 1993 158 3 9,369 (516) 16 9,030
Common stock issuance 1 - 37 - - 38
Net income - - - 508 - 508
Change in unrealized
gain on securities
available-for-sale,
net of tax effect
of $53 - - - - (152) (152)
---- ---- ----- ----- ----- ------
Balance at
December 31, 1994 159 3 9,406 (8) (136) 9,424
Common stock issuance 2 - 127 - - 129
Net income - - - 1,015 - 1,015
Change in unrealized gain
on securities
available-for-sale,
net of tax effect
of $108 - - - - 346 346
---- ---- ----- ----- ----- ------
Balance at
December 31, 1995 161 3 9,533 1,007 210 10,914
Common stock issuance - - 16 - - 16
Net income - - - 357 - 357
Change in unrealized
gain on securities
available-for-sale,
net of tax effect of $4 - - - - (9) (9)
---- ---- ----- ----- ----- ------
Balance at June 30, 1996
(unaudited) $161 3 9,549 1,364 201 11,278
==== ==== ===== ===== ===== ======
Page 10 of 34
LAKE FOREST BANCORP, INC.
AND SUBSIDIARY
Consolidated Statements of Cash Flows
(in thousands)
_______________________________________________________________________________
Six months
ended
June 30, Year ended December 31,
------------- -----------------------
1996 1995 1995 1994 1993
---- ---- ---- ---- ----
(unaudited)
Cash flows from
operating activities:
Net income $ 357 507 1,015 508 200
Adjustments to reconcile
net income to
net cash provided
by operating activities:
Provision for
possible loan losses 224 135 301 240 240
Depreciation and
amortization 219 188 413 194 141
Deferred income taxes (145) (220) 9 - -
Gain on sales of invest-
ment securities, net (18) - - (21) (23)
Amortization of goodwill 1 1 2 2 2
Net accretion/amortization
of investment securities (80) 46 (219) 139 276
Net increase in other
assets (336) (938) (1,296) (519) (293)
Increase (decrease) in
accrued interest and
other liabilities 323 (61) 246 148 (9)
-------- -------- -------- ------- -------
Net cash provided by
operating activities 545 (342) 471 691 534
-------- -------- -------- ------- -------
Cash flows from
investing activities:
Net increase (decrease)
in interest-bearing
deposits at banks 14,000 (4,901) (4,401) (10,500) 3,801
Net decrease (increase)
in federal funds sold (2,235) (12,090) (5,965) 6,520 (6,142)
Purchase of Federal
Reserve Bank stock - - (26) (36) (136)
Purchase of premises
and equipment (184) (426) (1,335) (2,971) (2,768)
Proceeds from sale of
investment securities,
available for sale 126 - 5,006 4,944 6,140
Proceeds from maturities
of investment securities,
held to maturity - 23,500 20,000 23,500 14,955
Proceeds from maturities
of investment securities,
available for sale 115,242 24,875 80,234 8,900 (39,157)
Purchases of investment
securities, held to maturity - - - (43,853) -
Purchases of investment
securities, available for
sale (119,622) (49,666) (107,533) (5,646) -
Net increase in loans (29,635) (19,477) (40,420) (24,807) (22,280)
-------- ------- -------- ------- -------
Net cash used in
investing activities (22,308) (38,185) (54,440) (43,949) (45,587)
-------- ------- -------- ------- -------
Cash flows from
financing activities:
Net increase in deposits 23,248 40,982 55,119 44,615 38,456
Net increase (decrease)
in treasury tax and loan 427 (2) (166) 92 369
Net decrease (increase)
in securities sold under
agreement to repurchase - (5,022) (5,022) (22) 5,044
Net proceeds from issuance
of common stock 16 59 129 38 2,582
Increase in short-term debt - 230 1,210 2,742 -
Repayment of short-term debt - - - - (600)
-------- ------- -------- ------- -------
Net cash provided by
financing activities 23,691 36,247 51,270 47,465 46,451
-------- ------- -------- ------- -------
Net increase (decrease)
in cash and cash equivalents 1,928 (2,280) (2,699) 4,207 1,398
Cash and cash equivalents
at beginning of year 3,680 6,379 6,379 2,172 1,374
-------- ------- -------- ------- -------
Cash and cash equivalents
at end of year $ 5,608 4,099 3,680 6,379 2,772
======== ======= ======== ======= =======
Supplemental disclosures of
cash flow information -
cash paid during the year for:
Interest $ 4,501 3,545 7,592 3,690 1,951
Income taxes - - - - -
======== ======= ======== ======= =======
Page 11 of 34
HINSDALE BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Condition
(in thousands, except share data)
____________________________________________________________________________
December 31,
June 30, ------------------------
Assets 1996 1995 1994
------ -------- --------- -----------
(unaudited)
Cash and demand balances
due from banks $ 821 3,048 1,308
Money market assets:
Interest-bearing deposits
at banks 8,000 16,000 11,500
Federal funds sold 4,463 16,022 10,494
Investment securities:
Held-to-maturity, at amortized
cost (fair value of $17,220) - - 17,327
Available-for-sale,
at fair value 22,339 15,409 -
Loans 81,792 58,085 22,327
Less allowance for possible
loan losses 716 479 180
-------- ------- ------
Loans, net 81,076 57,606 22,147
Premises and equipment, net 6,005 5,941 3,155
Deferred organizational costs 70 84 116
Accrued interest receivable 1,030 824 267
Other assets 1,318 934 205
-------- ------- ------
Total assets $125,122 115,868 66,519
======== ======= ======
Liabilities and Stockholders' Equity
------------------------------------
Deposits:
Noninterest-bearing 12,213 11,640 5,792
Interest-bearing 99,966 92,762 53,390
-------- ------- ------
Total deposits 112,179 104,402 59,182
Accrued interest payable 122 122 38
Term debt 2,650 1,600 -
Other liabilities 510 100 85
-------- ------- ------
Total liabilities 115,461 106,224 59,305
Stockholders' equity:
Common stock no par value;
stated value of $1; 350,000
shares authorized; 207,137,
206,037, and 175,254 shares
issued and outstanding at
June 30, 1996, December 31,
1995 and 1994, respectively 207 206 175
Common stock Series A warrants
no par value; 5,000 warrants
authorized, issued, and
outstanding 25 25 25
Advertising and marketing
Common stock Series B warrants
no par value; 5,000 warrants
authorized, issued, and
outstanding -
Surplus 9,506 9,452 7,483
Undivided profits (deficit) (78) (49) (469)
Net unrealized gain on securities
available for sale, net of tax 1 10 -
-------- ------- ------
Total stockholders' equity 9,661 9,644 7,214
-------- ------- ------
Total liabilities and
stockholders' equity $125,122 115,868 66,519
======== ======= ======
Page 12 of 34
HINSDALE BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share data)
_______________________________________________________________________________
Six months Years ended Period ended
ended June 30, December 31, December 31,
-------------- ------------
1996 1995 1995 1994 1993
----- ---- ---- ---- ------------
(unaudited)
Interest income:
Loan, including fees $3,024 1,293 3,701 862 1
Money market assets:
Interest-bearing deposits
at banks 201 519 870 566 16
Federal funds sold 259 230 528 288 36
Investment securities 653 320 738 589 20
------ ----- ----- ----- ------
Total interest income 4,137 2,362 5,837 2,305 73
------ ----- ----- ----- ------
Interest expense:
Deposits 2,555 1,530 3,694 1,694 34
Term debt 67 - 76 38 32
------ ----- ----- ----- ------
Total interest expense 2,622 1,530 3,770 1,732 66
------ ----- ----- ----- ------
Net interest income 1,515 832 2,067 573 7
Provision for loan losses 237 120 299 180 -
------ ----- ----- ----- ------
Net interest income after
provision for loan losses 1,278 712 1,768 393 7
------ ----- ----- ----- ------
Noninterest income:
Fees on loans sold 216 113 305 124 -
Other 216 109 267 113 43
------ ----- ----- ----- ------
Noninterest income 432 222 572 237 43
------ ----- ----- ----- ------
Noninterest expense:
Salaries and other compensation 859 448 1,166 754 310
Occupancy 98 89 124 139 33
Advertising and marketing 47 29 116 71 44
Amortization of organizational
costs 14 15 30 75 19
Data processing 108 65 151 88 19
Depreciation - furniture
and equipment 70 37 94 58 8
Insurance 40 93 115 94 6
Merger related expenses 170 - - - -
Other 333 155 464 244 176
------ ----- ----- ----- ------
Total noninterest expense 1,739 931 2,260 1,523 615
------ ----- ----- ----- ------
Net income (loss) before income taxes (29) 3 80 (893) (565)
Income tax benefit - - 340 - -
------ ----- ----- ----- ------
Net income (loss) $ (29) 3 420 (893) (565)
====== ===== ===== ===== ======
Earnings (loss) per share $(0.14) 0.01 2.04 (6.11) (12.55)
====== ===== ===== ===== ======
Page 13 of 34
HINSDALE BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity
(in thousands)
_______________________________________________________________________________
Net
unreal-
ized
gain on
Com- securi-
mon Undivi- ties Total
Pre- stock ded pro- avail- stock-
Common ferred war- fits able for holders'
stock stock rants Surplus (deficit) sale equity
------ ------- ----- ------- --------- -------- -------
Initial capital
contribution $ - 500 25 1 - - 526
Common stock
issuance 121 - - 5,922 - - 6,043
Capital issuance
costs - - - (24) - - (24)
Preferred stock
dividend - - - - (11) - (11)
Retirement of
preferred stock 21 (500) - 479 - - -
Allocation of
undivided pro-
fits - - - (1,000) 1,000 - -
Net loss - - - - (565) - (565)
----- ---- --- ------ ----- --- -----
Balance at
December 31,
1993 142 - 25 5,378 424 - 5,969
Common stock
issuance 33 - - 2,105 - - 2,138
Net loss - - - - (893) - (893)
----- ---- --- ------ ----- --- -----
Balance at
December 31,
1994 175 - 25 7,483 (469) - 7,214
Common stock
issuance 31 - - 1,969 - - 2,000
Net income - - - - 420 - 420
Advertising
and marketing -
Change in un-
realized gain
on securities
available-for-
sale, net of
tax effect
of $5 - - - - - 10 10
----- ---- --- ------ ----- --- -----
Balance at
December 31,
1995 206 - 25 9,452 (49) 10 9,644
Exercise of
stock options 1 - - 54 - - 55
Net income (loss) - - - - (29) - (29)
Change in
unrealized
gain on
securities
available-for-
sale, net of
tax effect
of $3 - - - - - (9) (9)
----- ---- --- ------ ----- --- -----
Balance at
June 30,
1996
(unaudited) $ 207 - 25 9,506 (78) 1 9,661
===== ==== === ====== ===== === =====
Page 14 of 34
HINSDALE BANCORP, INC.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
_______________________________________________________________________________
Six months Year Period
ended ended ended
June 30, December 31, December 31,
------------- -------------
1996 1995 1995 1994 1993
---- ---- ---- ---- -----------
(unaudited)
Operating
activities:
Net income
(loss) $ (29) 3 420 (893) (377)
Adjustments
to reconcile
net loss to
net cash pro-
vided by
operating
activities:
Depreciation 113 65 153 108 33
Amortization
of deferred
organizational
costs 14 15 32 75 -
Net amortiz-
ation/(accre-
tion) of
investment
securities 378 (136) 86 (169) 5
Provision for
loan losses 237 120 299 180 -
Deferred
income tax
benefit - - (340) - -
Net changes in
accrued
interest
receivable
and other
assets (585) (618) (946) (237) 8
Net changes
in other
liabil-
ities 410 293 94 (21) 106
-------- ------- ------ ------ -------
Net cash in
operating
activities 538 (258) (202) (957) (225)
-------- ------- ------ ------- -------
Investing
activities:
Net (increase)
decrease in
interest-
bearing
deposits at
banks 8,000 (1,500) (4,500) (4,500) (7,000)
Net (increase)
decrease in
Federal funds
sold 11,559 4,133 (5,528) (1,893) (8,601)
Maturities of
investments 36,735 17,100 25,271 7,820 -
Purchase
of invest-
ment in
Federal Reserve
Bank stock (64) (36) (98) (20) (129)
Purchase of
investment
securities (43,993) (12,596) (23,326) (21,166) (3,702)
Purchase of
premises
and equipment (1,177) (1,841) (2,939) (568) (2,708)
Proceeds from
sales
of premises 1,000 - - - -
Net increase
in loans (23,707) (22,256) (35,758) (21,956) (338)
Other, net - - - (131) (472)
-------- ------- ------- ------- -------
Net cash used in
investing
activities (11,647) (16,996) (46,878) (42,414) (22,950)
-------- ------- ------- ------- -------
Financing activi-
ties:
Net increase in
deposits 7,777 14,735 45,220 42,370 16,812
Net proceeds
from issuance
of common stock 55 1,966 2,000 2,138 6,020
Proceeds from
issuance of
preferred
stock - - - - 500
Preferred stock
dividend - - - - (11)
Proceeds from
issuance
of convert-
ible warrants - - - - 25
Proceeds from
issuance of
term debt 1,050 992 - 2,592 1,400
Repayment of
term debt - - (992) (900) (500)
-------- ------- ------- ------- -------
Net cash provided
by financing
activities 8,882 17,693 46,228 46,200 24,246
-------- ------- ------- ------- -------
Net increase
(decrease)
in cash and
cash equiva-
lents (2,227) 439 (852) 2,829 1,071
Cash and cash
equivalents
at beginning
of year 3,048 1,308 1,308 1,071 -
-------- ------- ------- ------- -------
Cash and cash
equivalents
at end of year $ 821 1,747 456 3,900 1,071
======== ======= ======= ======= =======
Supplemental dis-
closures of
cash flow
information:
Cash paid
during the
year for:
Interest $ 2,606 1,503 3,686 1,665 58
Income taxes - - - - -
======== ======= ====== ======= =======
Page 15 of 34
LIBERTYVILLE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Condition
(in thousands, except share data)
______________________________________________________________
June 30, December 31,
Assets 1996 1995
------ -------- ------------
(unaudited)
Cash and demand balances due
from banks $ 1,629 1,753
Money market assets:
Interest-bearing deposits at banks 9,000 6,500
Federal funds sold 5,135 14,690
Securities available-for-sale
Federal agencies 991 -
Federal Reserve Bank stock 217 150
Other securities 450 450
Loans 35,035 10,189
Less allowance for loan losses 205 55
------- ------
Loans, net 34,830 10,134
Premises and equipment, net 4,048 3,498
Deferred organization costs 124 107
Other assets 898 197
------- ------
Total assets $57,322 37,479
======= ======
Liabilities and Shareholders' Equity
------------------------------------
Deposits:
Noninterest-bearing 8,250 3,728
Interest-bearing 39,440 22,685
------- ------
Total deposits 47,690 26,413
Accrued interest payable 63 46
Notes payable 358 1,064
Treasury tax and loan 10 339
Other liabilities 235 64
------- ------
Total liabilities 48,356 27,926
Shareholders' equity:
Preferred stock, Series B, no
par value, 25,000 shares
authorized, 24,000 shares
issued and outstanding 500 500
Common stock, no par value;
stated value $1 per share;
350,000 shares authorized;
205,929 and 201,689 shares
issued and outstanding at
June 30, 1996 and December 31,
1995, respectively 206 202
Convertible warrants, Series A,
no par value, 5,000 shares
authorized, issued and
outstanding 25 25
Convertible warrants, Series B,
no par value, 20,000 warrants
authorized; 15,760 and 20,000
warrants issued and outstanding
at June 30, 1996 and
December 31, 1995, respectively - -
Surplus 8,994 8,829
Undivided profits (deficit) (759) (3)
------- ------
Total shareholders' equity 8,966 9,553
------- ------
Total liabilities and shareholders'
equity $57,322 37,479
======= ======
Page 16 of 34
LIBERTYVILLE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands)
______________________________________________________________
Six months ended Period ended
June 30, December 31,
----------------
1996 1995 1995
---- ---- ----
(unaudited)
Interest income:
Loans, including fees $ 888 - 73
Money market assets:
Interest-bearing deposits
at banks 277 8 80
Federal funds sold 252 - 166
Investment securities 58 - 2
------ ----- -----
Total interest income 1,475 8 321
------ ----- -----
Interest expense:
Deposits 884 - 141
Notes payable 23 - 23
------ ----- -----
Total interest expense 907 - 164
------ ----- -----
Net interest income 568 8 157
Provision for loan losses 150 - 55
------ ----- -----
Net interest income after
provision for loan losses 418 8 102
------ ----- -----
Noninterest income:
Fees on loans sold 94 - 14
Other income 37 2 7
------ ----- -----
Total noninterest income 131 2 21
------ ----- -----
Noninterest expense:
Salaries and other
compensation 595 70 514
Net occupancy 99 - 46
Advertising and marketing 49 3 127
Amortization of
organization costs 13 - 6
Data processing 62 - 16
Depreciation - furniture
and equipment 68 - 27
Stationery and supplies 36 1 95
Merger related expenses 170 - -
Other 213 16 250
------ ----- -----
Total noninterest expense 1,305 90 1,081
------ ----- -----
Net loss $ (756) (80) (958)
====== ===== =====
Loss per share $(3.70) (80.00) (14.19)
====== ===== =====
Page 17 of 34
LIBERTYVILLE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Equity
(in thousands)
_____________________________________________________________________________
Pre- Pre- Convert- Convert- Undi- Total
ferred ferred ible ible vided stock-
Com- stock, stock, warrants warrants profits hold-
mon Series Series, Series Series Sur- (def- ers'
stock A B A B plus cit) equity
----- ------ ------- ------- -------- ----- ------- ------
Initial capital
contribution $ 1 500 - 25 - - - 526
Dividends - - - - - - (45) (45)
Initial offering 201 - - - - 8,829 1,000 10,030
Conversion of
preferred stock
and issuance of
convertible
warrants - (500) 500 - - - - -
Net loss - - - - - - (958) (958)
---- --- --- -- - ----- ----- ------
Balance at
December 31,
1995 202 - 500 25 - 8,829 (3) 9,553
Conversion of
Series B
warrants into
common stock 4 - - - - 165 - 169
Net loss - - - - - - (756) (756)
---- --- --- -- - ----- ----- ------
Balance at
June 30, 1996
(unaudited) $206 - 500 25 - 8,994 (759) 8,966
==== === === == = ===== ===== ======
Page 18 of 34
LIBERTYVILLE BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
_______________________________________________________________________________
Six months ended Period ended
June 30, December 31,
----------------
1996 1995 1995
---- ---- ------------
(unaudited)
Net loss $ (756) (80) (958)
Adjustments to reconcile net loss to net
cash used in operating activities:
Provision for loan losses 150 - 55
Depreciation 114 - 45
Amortization of organization costs 13 - 6
Accretion of investment securities (57) - -
Increase in accrued interest receivable
and other assets (731) (16) (310)
Increase in accrued interest payable and
other liabilities 188 17 110
-------- ----- -------
Net cash used in operating activities (1,079) (79) (1,052)
-------- ----- -------
Investing activities:
Net increase in interest-bearing deposits
at banks (2,500) - (6,500)
Net decrease (increase) in Federal funds
sold 9,555 - (14,690)
Purchase of investment in Federal Reserve
Bank stock (67) - (150)
Purchases of available-for-sale securities (9,934) - (450)
Maturities of available-for-sale securities 9,000 - -
Purchase of premises and equipment (664) (1,651) (3,543)
Net increase in loans, net (24,846) - (10,189)
-------- ----- -------
Net cash used in investing activities (19,456) (1,651) (35,522)
-------- ----- -------
Financing activities:
Net increase in deposits 21,277 - 26,413
Net (decrease) increase in treasury tax
and loan (329) - 339
Proceeds from issuance of common stock 169 - 10,030
Proceeds from issuance of notes payable - 1,520 1,770
Repayment of notes payable (706) - (706)
Dividends paid - (24) (45)
-------- ----- -------
Net cash provided by financing activities 20,411 1,496 37,801
-------- ----- -------
Net (decrease) increase in cash and cash
equivalents (124) (234) 1,227
Cash and cash equivalents at beginning of
period 1,753 526 526
-------- ----- -------
Cash and cash equivalents at end of period $ 1,629 292 1,753
======== ===== =======
Supplemental disclosures of cash flow
information - cash paid during the
period for:
Interest $ 890 - 118
Income taxes - - -
======== ===== =======
Page 19 of 34
CRABTREE CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 1995 and 1996
June 30
-----------------
1996 1995
------ ------
ASSETS:
Cash and cash equivalents 510,910 440,432
Finance receivables-
Premium finance 6,269,781 11,993,846
Facility overcollateral-
ization 7,251,006 6,951,287
Equipment leases 290,473 439,000
Other receivables 0 0
---------- -----------
Total finance receivables 13,811,260 19,384,133
Residual value of leased
equipment 8,688 49,000
Less-
Unearned finance income
and advance pmt (74,489) (351,206)
Allowance for losses on
finance receiv (813,709) (789,311)
----------- -----------
Net finance receivables 12,931,750 18,292,616
Sales gain receivable 1,420,952 1,254,736
Prepaid and other assets 263,465 338,565
Property and equipment,
net of acc dep 983,769 605,550
Deferred financing fees,
net of amort 266,109 844,735
Funds held in escrow 693,364 693,364
Net assets of discontinued
operations 0 1,626,205
----------- -----------
Total assets 17,070,319 24,096,203
=========== ===========
LIABILITIES:
Intercompany payable-Wintrust 0 0
Accounts payable and accrued
expenses 5,724,441 8,490,491
Notes and loans payable 5,200,000 7,925,000
Subordinated loans payable 2,057,000 1,977,208
Other liabilities 1,843,788 3,785,342
----------- -----------
Total liabilities 14,825,229 22,178,041
----------- -----------
MINORITY INTEREST IN FIRST
PREMIUM SERVICES 212,056 212,056
----------- -----------
STOCKHOLDERS EQUITY:
Common stock 1,032,266 1,032,266
Additional paid-in capital 17,970,658 17,970,658
Accumulated deficit (16,805,390) (17,132,318)
Less-treasury stock (164,500) (164,500)
----------- -----------
Total stockholders equity 2,033,034 1,706,106
----------- -----------
Total liabilities and
stock equity 17,070,319 24,096,203
=========== ===========
Page 20 of 34
CRABTREE CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
For the Six Months Ended June 30, 1995 and 1996
Six Months Ended
June 30
-----------------
1996 1995
------ ------
REVENUES:
Finance charges-
Premium finance 612,266 1,705,167
Equipment leases 24,309 7,000
Gain on sale of receivables 1,859,824 2,525,352
Servicing fees 657,690 467,444
Gain on retirement of
minority interest shares 0 0
Other 32,107 34,752
--------- ---------
Total revenues 3,186,196 4,739,715
--------- ---------
EXPENSES:
Interest expense 418,341 863,634
Provision for losses on
finance receivables 111,883 127,092
Operating expenses-
Salary and wages 1,272,250 1,269,309
Professional fees 172,322 160,398
Occupancy 511,314 385,486
Deferred financing fee amort 356,043 375,151
Other 999,619 610,446
--------- ---------
Total operating expenses 3,841,772 3,791,516
--------- ---------
Income (loss) from continuing
operations before income
taxes (655,576) 948,199
Income taxes 0 0
--------- ---------
Income (loss) from
continuing operations (655,576) 948,199
Income (loss) from discon-
tinued subsidiaries, net
of minority interest 0 (48,000)
--------- ---------
NET INCOME (LOSS) (655,576) 900,199
========= =========
Page 21 of 34
CRABTREE CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Stockholders' Equity
For the Six Months Ended June 30, 1995 and 1996
Common Paid-In Accum Treasury
Stock Capital Deficit Stock Total
------ ------- ------- -------- -----
BALANCE,
December 31, 1994 1,032,266 17,970,658 (18,032,517) (164,500) 805,907
Net income 900,199 900,199
--------- ---------- ----------- --------- ---------
BALANCE,
June 30, 1995 1,032,266 17,970,658 (17,132,318) (164,500) 1,706,106
========= ========== =========== ========= =========
BALANCE,
December 31, 1995 1,032,266 17,970,658 (16,149,814) (164,500) 2,688,610
Net income (655,576)
--------- ---------- ----------- --------- ---------
BALANCE,
June 30, 1996 1,032,266 17,970,658 (16,805,390) (164,500) 2,688,610
========= ========== =========== ========= =========
Page 22 of 34
CRABTREE CAPITAL CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For the Six Months Ended June 30, 1995 and 1996
(in thousands)
Six Months Ended
June 30
----------------
1996 1995
------ ----
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income (loss) from
continuing operations (655) 948
Adjustments to reconcile
net income (loss) to net
cash provided by (used in)
operating activities-
Depreciation and amorti-
zation expense 469 633
Provision for losses on
finance receivables 112 127
Net changes in assets
and liabilities-
Increase (decrease) in
unearned finance charges (209) (1,900)
Increase (decrease) in
acc payable and acc exp (5,992) 1,789
Increase (decrease) in
other liabilities 1,774 0
Increase (decrease) in
sales gain receivable (105) 1,255
Increase (decrease) in
prepaid and other assets 122 (67)
Net loss of discontinued
operations 0 (48)
Decrease in net assets of
discontinued operations 0 249
-------- --------
Net cash provided by
(used in) operations (4,484) 2,986
-------- --------
CASH FLOWS FROM
INVESTING ACTIVITIES:
Premium finance receivables
originated or purchased (161,900) (157,821)
Premium finance receivables
repaid or sold 164,652 239,074
Equipment lease receivable
payments 28 127
Increase in facility
overcollateralization (620) (6,951)
Purchase of property and
equipment, net (488) (54)
-------- --------
Net cash provided by
(used in) investing 1,672 74,375
-------- --------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Proceeds from loans and
notes payable 3,050 5,725
Repayment of loans and
notes payable 0 0
Deferred financing fees (96) (434)
Commercial paper notes
originated 0 310,040
Commercial paper notes
principal repaid 0 (393,020)
-------- ---------
Net cash provided by
(used in) financing 2,954 (77,689)
-------- ---------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 142 (328)
CASH AND CASH EQUIVALENTS,
beginning of period 369 768
--------- ---------
CASH AND CASH EQUIVALENTS,
end of period 511 440
========= =========
Page 23 of 34
b. Pro Forma Financial Information.
The pro forma income statements required by this item for
the years ended December 31, 1995, 1994 and 1993 were
previously included as part of Registrant's Current Report on
Form 8-K dated September 1, 1996 and filed September 13, 1996.
The following pro forma financial information is included
herein:
Pro Forma Condensed Combined Statement of Condition
(unaudited) at June 30, 1996.
Pro Forma Condensed Combined Statement of Operations
(unaudited) for the six months ended June 30, 1996.
Notes to the Pro Forma Condensed Combined Financial
Information (unaudited).
The following unaudited Pro Forma Condensed Combined
Statement of Condition as of June 30, 1996 combines the
historical consolidated statements of condition of each of the
Companies as if the Reorganization had occurred on that date
after giving effect to pro forma adjustments described in the
accompanying notes.
Also presented is the Pro Forma Condensed Combined
Statement of Operations for the six-month period ended June
30, 1996, giving effect to the Reorganization as if it had
been consummated at the beginning of such period. The pro
forma information is based on the historical consolidated
financial statements of the Companies presented elsewhere
herein, giving effect to the proposed transaction under the
"pooling-of-interests" method and on the assumptions and
adjustments set forth in the accompanying notes to the pro
forma condensed consolidated financial statements. These pro
forma statements may not be indicative of the results of
operations that actually would have occurred if the
Reorganization had been consummated on the date indicated or
which may occur in the future.
The Unaudited Pro Forma Condensed Combined Financial
Information should be read in conjunction with the separate
historical consolidated financial statements and related
footnotes of each of the Companies.
Page 24 of 34
Pro Forma Condensed Combined Statement of Condition (Unaudited)
June 30, 1996
(in thousands)
North
Shore Lake Hins- Liberty- Crab-
Community Forest dale ville tree Pro Forma Adjustments
Bancorp, Bancorp, Bancorp, Bancorp, Capital --------------------- Combined
Inc. Inc. Inc. Inc. Corp. Debit Credit Pro Forma
--------- -------- -------- -------- ------- ---------- ------- ---------
Assets
- ------
Cash and demand
balances
due from
banks $3,028 $5,608 $ 821 $1,629 $ 511 $11,597
Money market
assets:
Interest-bearing
deposits at
banks 8,000 7,100 8,000 9,000 - 32,100
Federal funds
sold 9,630 15,335 4,463 5,135 - 34,563
Investment
securities 11,601 43,230 22,339 1,658 - $3,375 (A) 75,453
Loans 90,313 140,207 81,792 35,035 13,746 361,093
Less: allowance
for possible
loan losses 582 1,061 716 205 814 3,378
-------- -------- -------- ------- ------- --------
Loans, net 89,731 139,146 81,076 34,830 12,932 357,715
Premises and equip-
ment, net 8,235 8,109 6,005 4,048 984 27,381
Goodwill and organ-
ization costs 267 44 70 124 - 505
Other assets 2,180 2,930 2,348 898 2,643 10,999
-------- -------- -------- ------- ------- --------
Total assets $132,672 $221,502 $125,122 $57,322 $17,070 $550,313
======== ======== ======== ======= ======= ========
Liabilities and Stockholders' Equity
- -------------------------------------
Deposits:
Noninterest-
bearing 16,499 17,724 12,213 8,250 - 54,686
Interest-bearing 103,458 186,710 99,966 39,440 - 429,574
-------- -------- -------- ------- ------- --------
Total deposits 119,957 204,434 112,179 47,690 - 484,260
Accrued interest and
other expenses 455 1,838 632 308 7,568 $106 (A) 10,695
Notes and loans
payable 1,300 3,952 2,650 358 5,200 13,460
Subordinated notes
payable - - - - 2,057 557 (D) 1,500
-------- -------- -------- ------- ------- --------
Total liabilities 121,712 210,224 115,461 48,356 14,825 509,915
-------- -------- -------- ------- ------- --------
Minority interest - - - - 212 212 (D) -
Stockholders' equity
Common stock 254 161 207 206 1,032 1,887 (A) 6,543 (C) 6,516
(B) (D)
(F) (E)
(F)
Convertible
warrants 25 - 25 25 - 50 (F) 50 (F) 75
Convertible pre-
ferred stock - 3 - 500 - 503 (C) -
Surplus 12,212 9,549 9,506 8,994 17,971 47,457 (A) 40,846 (C) 51,621
(B) (D)
(E) (E)
(F)
Undivided profit
(deficit) (1,533) 1,364 (78) (759) (16,805) (17,811)
Less: Treasury
shares - - - - (165) 165 (B) -
Net unrealized
gain (loss)
- securities
available-for-sale,
net of tax 2 201 1 - - 207 (A) (3)
-------- -------- -------- ------- ------- --------
Total stockholders'
equity 10,960 11,278 9,661 8,966 2,033 40,398
-------- -------- -------- ------- ------- --------
Total liabilities
and stockholders'
equity $132,672 $221,502 $125,122 $57,322 $17,070 $550,313
======== ======== ======== ======= ======= ========
See accompanying notes to condensed pro forma combined financial statements.
Page 25 of 34
Pro Forma Condensed Combined Statement of Operations (Unaudited)
Six Months Ended June 30, 1996
-------------------------------------------------------------------------------
North
Shore Lake Liberty-
Community Forest Hinsdale ville Crabtree
Bancorp Bancorp Bancorp Bancorp Capital Pro Forma
Inc. and Inc. and Inc. and Inc. and Corp. and Adjustments
Subsidi- Subsidi- Subsidi- Subsidi- Subsidi- -------------- Pro Forma
aries aries aries aries aries Debit Credit Combined
-------- ------- -------- -------- --------- ------ ------ ---------
(in thousands, except per share data)
Total interest income $ 3,835 $ 7,139 $ 4,137 $ 1,475 $ 637 $17,223
Total interest expense 2,344 4,487 2,622 907 418 $ 65 10,713
------- ------- ------- ------- ------- -------
Net interest income 1,491 2,652 1,515 568 219 6,510
Provision for loan losses 170 224 237 150 112 893
------- ------- ------- ------- ------- -------
Net interest income after
provision for loan losses 1,321 2,428 1,278 418 107 5,617
Gain on sale of receivables - - - - 1,860 1,860
Total noninterest income 302 533 432 131 690 $ 68 2,020
Total merger related
expenses 170 170 170 170 170 850 -
Total other noninterest
expense 2,191 2,289 1,569 1,135 3,142 50 10,276
------- ------- ------- ------- ------- -------
Net income before income
taxes (738) 502 (29) (756) (655) (779)
Income tax expense - 145 - - - 145
------- ------- ------- ------- ------- ---- ----- -------
Net income (loss) $ (738) $ 357 $ (29) $ (756) $ (655) $ 68 $ 965 $ (924)
======= ======= ======= ======= ======= ==== ===== =======
Average number of common
shares outstanding 251 176 219 205 1,025 6,835
Net income (loss) per share
from continuing operations $ (2.94) $ 2.03 $ (0.13) $ (3.70) $ (0.64) $ (0.14)
======= ======= ======= ======= ======= =======
Net income (loss) per share $ (2.94) $ 2.03 $ (0.13) $ (3.70) $ (0.64) $ (0.14)
======= ======= ======= ======= ======= =======
See accompanying notes to condensed pro forma combined financial statements.
Notes to Pro Forma Condensed Combined Financial Information
(Unaudited)
Note 1. Basis of Presentation
The unaudited pro forma financial information does
not give effect to any synergies that are expected to occur
due to the integration of the North Shore, Lake Forest,
Hinsdale, Libertyville and Crabtree operations. However, the
unaudited Pro Forma Condensed Combined Statement of Condition
does reflect the transaction costs of the Reorganization and
the effect of the nonrecurring costs and expenses associated
with integrating the operations of the businesses.
The impact of the majority of the transaction costs
of the Reorganization, and the nonrecurring costs and expenses
associated with integrating the operations were recorded in
the second quarter of 1996. The pro forma combined cash
balances, accrued liabilities, and equity accounts reflect the
reduction of the transaction costs of the Reorganization and
the nonrecurring costs and expenses associated with
integrating the operations of the organization, estimated at
$850,000.
The merger will be accounted for under the "pooling-
of-interests" method. Accordingly, recorded assets and
liabilities are carried forward to the combined company at
their historical values.
Note 2. Pro Forma Condensed Combined Statement of Condition
Adjustments
A. Elimination of Intercompany Shares
----------------------------------
Each of Lake Forest, North Shore, Hinsdale and
Libertyville owned shares in one or more of the other
Companies which were retired at the Effective Date in
accordance with the Reorganization Agreement. This entry
reflects such shares being retired as Treasury shares. This
entry also reflects the elimination of the net unrealized
Page 26 of 34
gain on these securities reflected in the shareholders' equity
of $207,000, and the deferred tax liability related thereto of
$106,000 reflected in the liability section.
B. Elimination of Treasury Shares of Crabtree
Capital Corporation
------------------------------------------
Crabtree had 7,000 shares of Treasury Stock
outstanding immediately prior to the Reorganization with a
carrying value of $164,500. This entry reflects the
elimination of the Treasury Stock, reducing the amounts posted
to Common Stock and paid-in capital of Crabtree.
C. Conversion of Preferred Shares into Common Shares
-------------------------------------------------
At June 30, 1996, Lake Forest had 1,700 shares of
preferred stock outstanding that were convertible into 2,550
shares of common stock. Libertyville had 24,000 shares of
preferred stock outstanding that were convertible into 24,000
shares of common stock. The preferred shares were converted
to common shares prior to the Effective Date of the
Reorganization as contemplated by the Reorganization
Agreement.
D. Exchange of Outstanding Warrants
--------------------------------
The pro forma condensed combined financial
information assumes that the outstanding warrants to purchase
shares of certain of the Companies and First Premium - which
were contemplated to be exchanged under the terms of the
Reorganization Agreement for Wintrust shares and warrants
representing an aggregate of 617,464 shares of Wintrust Common
Stock - were exchanged for a combination consisting in aggregate
of 478,871 shares of Wintrust Common Stock and warrants to
purchase 138,593 shares of Wintrust Common Stock. Certain of
the First Premium warrants were exchanged solely for Wintrust
Common Stock and the exercise proceeds related thereto contri-
buted by the warrant holder to Wintrust. A portion of such
proceeds were used to retire the $557,000 subordinated debt of
First Premium because the holder of the warrants exchanged
solely for Wintrust Common Stock is also the owner of the sub-
ordinated debt.
E. Shareholders' Equity
--------------------
The pro forma combined equity accounts of Wintrust
reflect the combination of the equity accounts for North
Shore, Lake Forest, Hinsdale, Libertyville and Crabtree.
Shares of common stock are presented on the basis of a stated
value of $1.00 per share. The following table reflects the
approximate number of shares of Wintrust Common Stock which
were issued to holders of the respective Companies' common
stock and warrants in the Reorganization (subject to
adjustment for cash-out of fractional shares):
Wintrust
Shares Issued
in the
Reorganization
--------------
North Shore Community Bancorp, Inc. . . . . 1,201,523
Lake Forest Bancorp, Inc. . . . . . . . . . 1,586,515
Hinsdale Bancorp, Inc. . . . . . . . . . . 1,229,681
Libertyville Bancorp, Inc. . . . . . . . . 873,722
Crabtree Capital Corporation. . . . . . . . 1,213,217
Converted First Premium Warrants. . . . . . 411,673
---------
Total Wintrust Shares . . . . . . . . . . 6,516,331
=========
The average number of shares of common stock shown to
be outstanding during the periods presented in the Pro Forma
Condensed Combined Statements of Operations includes 478,871
shares that were issued as part of the exchange for
outstanding warrants of certain of the Companies and First
Premium that were contributed to Wintrust in connection with
and as part of the Reorganization in accordance with the terms
of the Reorganization Agreement.
No shareholders of the Companies dissented to the
transaction or exercised appraisal rights. Fractional shares
issued upon consummation of the Reorganization were
immaterial.
Page 27 of 34
Note 3. Pro Forma Condensed Combined Statements of Operations
Adjustments
F. Reflects the elimination of nonrecurring merger
related expenses of $850,000.
G. Reflects the elimination from noninterest expense
of an aggregate of $50,000 of fees charged by Hinsdale Bank to
Lake Forest Bank, North Shore Bank and Libertyville Bank for
services performed in servicing a portfolio of indirect
automobile loans for the six months ended June 30, 1996.
H. Reflects the elimination from noninterest income
of an $18,000 gain on the sale of shares of Hinsdale Common
Stock by Lake Forest in the first quarter of 1996.
I. Reflects the reduction of interest expense
associated with the elimination of the subordinated debt at
First Premium as discussed above in Note D. Interest expense
has been reduced by $65,000 for the six months ended June 30,
1996.
Page 28 of 34
c. Exhibits.
*2.1 Amended and Restated Agreement and Plan of
Reorganization among North Shore Community Bancorp,
Inc., Lake Forest Bancorp II, Hinsdale Bancorp II,
Libertyville Bancorp II, Crabtree Capital
Corporation II and Lake Forest Bancorp, Inc.,
Hinsdale Bancorp, Inc., Libertyville Bancorp, Inc.
and Crabtree Capital Corporation, dated as of May
28, 1996 (incorporated by reference to Appendix A
to Registrant's Form S-4 Registration Statement as
amended (No. 333-4645), filed with the Securities
and Exchange Commission on July 22, 1996)
23.1 Consents of KPMG Peat Marwick LLP
*23.2 Consent of Arthur Andersen LLP
_______________
*Previously filed.
Page 29 of 34
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.
Wintrust Financial Corporation
By: /s/David A. Dykstra
---------------------------------
David A. Dykstra,
Chief Financial Officer
Dated: November 7, 1996
Page 30 of 34