EXHIBIT 99.5
PRO FORMA UNAUDITED BALANCE SHEET
AS OF SEPTEMBER 30, 1996*
(In thousands)
Sovereign,
Sovereign & First State
Sovereign First State First State Bankers & Bankers
--------- ----------- ----------- ------- ---------
Cash and amounts due from depository
institutions $ 122,973 $ 13,874 $ 136,847 $ 16,193 $ 153,040
Investment and mortgage-backed
securities 3,004,939 75,244 3,080,183 638,539 3,718,722
Loans 5,990,552 545,976 6,536,528 1,641,576 8,178,104
Allowance for possible loan losses (34,018) (9,125) (43,143) (7,120) (50,263)
Goodwill and otherwise intangible assets 114,524 2,199 116,723 3,518 120,241
Other assets 165,666 37,769 203,435 37,444 240,879
--------- ------- ---------- --------- ----------
TOTAL ASSETS $9,364,636 $665,937 $10,030,573 $2,330,150 $12,360,723
========= ======= ========== ========= ==========
Deposits $5,007,118 $589,509 $ 5,596,627 $1,625,344 $7,221,971
Borrowings 3,814,828 32,629 3,847,457 487,781 4,335,238
Other liabilities 82,609 3,844 88,453 29,496 115,949
--------- ------- ---------- --------- ----------
TOTAL LIABILITIES 8,904,555 625,982 9,530,537 2,142,621 11,673,158
Other Equity 344,655 20,863 365,518 74,839 440,357
Common stock 0 39 39 143 182
Retained Earnings 115,426 19,053 134,479 112,547 247,026
--------- ------- ---------- --------- ----------
TOTAL STOCKHOLDERS' EQUITY 460,081 39,955 500,036 187,529 687,565
--------- ------- ---------- --------- ----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $9,364,636 S665,937 $10,030,573 $2,330,150 $12,360,723
========= ======= ========== ========= ==========
*First State as of June 30, 1996.
PRO FORMA UNAUDITED INCOME STATEMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996*
(in thousands, except per share data)
Sovereign,
Sovereign & First State
Sovereign First State First State Bankers & Bankers
--------- ----------- ----------- ------- -----------
Interest income $451,794 $36,494 $488,288 $110,559 $598,847
Interest expense 290,785 17,780 306,565 64,449 373,014
------- ------ ------- ------- -------
Net interest income 161,009 18,714 179,723 46,110 225,833
Provision for possible loan losses 1,616 5,800 7,116 3,050 10,166
------- ------ ------- ------- -------
Net interest income after provision 0
for possible loan lossess 169,493 13,114 172,607 43,060 215,667
------- ------ ------- ------- -------
Other non-interest income 17,032 12,466 29,498 1,591 31,089
Non-interest expense 124,110 26,381 150,491 17,747 168,238
------- ------ ------- ------- -------
Income before taxes 52,415 (801) 51,614 26,904 78,518
Income taxes 19,911 195 20,106 9,537 29,643
------- ------ ------- ------- -------
Net income $ 32,504 $ (996) $ 31,508 $ 17,367 $ 48,875
======= ====== ======= ======= =======
Earnings per share $0.55 ($0.25) $0.49 $1.35 $0.55
======= ====== ======= ======= =======
*First State for the nine months ended June 30, 1996.
Note 1: Per share data do not reflect Sovereign's 6-for-5 stock split declared
January 16, 1997 and payable March 14, 1997.
Note 2: Above amounts assume no cost savings realization for either the First
State acquisition or the Bankers acquisition.
PRO FORMA UNAUDITED INCOME STATEMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995
(in thousands, except per share data)
Sovereign,
Sovereign & First State
Sovereign First State First State Bankers & Bankers
--------- ----------- ----------- ------- -----------
Interest income $356,456 $32,607 $388,963 $ 95,321 $484,284
Interest expense 228,668 15,545 244,213 53,752 297,965
------- ------ ------- ------- -------
Net interest income 127,788 16,962 144,750 41,569 186,319
Provision for possible loan losses 750 1,100 1,850 3,500 5,350
------- ------ ------- ------- -------
Net interest income after provision 0
for possible loan lossess 127,038 15,862 142,900 38,069 180,969
------- ------ ------- ------- -------
Other non-interest income 19,055 4,563 23,598 1,762 25,360
Non-interest expense 84,168 16,109 100,277 15,206 115,483
------- ------ ------- ------- -------
Income before taxes 61,925 4,296 66,221 24,625 90,846
Income taxes 21,214 1,389 22,603 8,843 31,446
------- ------ ------- ------- -------
Net income $ 40,711 $ 2,907 $ 43,618 $ 15,782 $ 59,400
======= ====== ======= ======= =======
Earnings per share $0.73 $0.75 $0.72 $1.19 $0.70
======= ====== ======= ======= =======
Note 1: Per share data do not reflect Sovereign's 6-for-5 stock split declared
January 18, 1997 and payable March 14, 1997.
Note 2: Above amounts assume no cost savings realization for either the First
State acquisition or the Bankers acquisition.
PRO FORMA UNAUDITED INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1995
(in thousands, except per share data)
Sovereign,
Sovereign & First State
Sovereign First State First State Bankers & Bankers
--------- ----------- ----------- ------- -----------
Interest income $493,031 $44,349 $537,380 $129,265 $686,645
Interest expense 318,805 21,765 340,570 73,818 414,388
------- ------ ------- ------- -------
Net interest income 174,226 22,584 196,810 55,447 252,257
Provision for possible loan losses 1,000 1,650 2,650 5,500 8,150
------- ------ ------- ------- -------
Net interest income after provision 0
for possible loan lossess 173,226 20,934 194,160 49,947 244,107
------- ------ ------- ------- -------
Other non-interest income 25,829 6,368 32,197 739 32,936
Non-interest expense 113,108 22,172 135,280 19,999 155,279
------- ------ ------- ------- -------
Income before taxes 85,947 5,130 91,077 30,687 121,764
Income taxes 29,539 1,132 30,671 10,683 41,354
------- ------ ------- ------- -------
Net income $ 56,408 $ 3,998 $ 60,406 $ 20,004 $ 80,410
======= ====== ======= ======= =======
Earnings per share $1.00 $1.01 $0.98 $1.61 $0.94
======= ====== ======= ======= =======
Note 1: Per share data do not reflect Sovereign's 6-for-5 stock split declared
January 16, 1997 and payable March 14, 1997.
Note 2: Above amounts assume no cost savings realization for either the First
State acquisition or the Bankers acquisition.
PRO FORMA UNAUDITED INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1994
(in thousands, except per share data)
Sovereign,
Sovereign & First State
Sovereign First State First State Bankers & Bankers
--------- ----------- ----------- ------- -----------
Interest income $354,141 $34,936 $389,076 $106,602 $495,678
Interest expense 198,741 13,448 212,189 51,123 263,312
------- ------ ------- ------- -------
Net interest income 155,400 21,487 176,887 55,479 232,366
Provision for possible loan losses 4,100 1,892 5,992 3,970 9,962
------- ------ ------- ------- -------
Net interest income after provision 0
for possible loan lossess 151,300 19,595 170,895 51,509 222,404
------- ------ ------- ------- -------
Other non-interest income 14,554 4,150 18,704 1,683 20,387
Non-interest expense 90,989 18,881 109,870 21,130 131,000
------- ------ ------- ------- -------
Income before taxes 74,865 4,864 79,729 32,062 111,791
Income taxes 28,467 1,363 29,830 11,058 40,888
------- ------ ------- ------- -------
Net income $ 46,398 $ 3,501 $ 49,899 $ 21,004 $ 70,903
======= ====== ======= ======= =======
Earnings per share $0.90 $0.91 $0.89 $1.56 $0.87
======= ====== ======= ======= =======
Note 1: Per share data do not reflect Sovereign's 6-for-5 stock split declared
January 16, 1997 and payable March 14, 1997.
Note 2: Above amounts assume no cost savings realization for either the First
State acquisition or the Bankers acquisition.
PRO FORMA UNAUDITED INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1993
(in thousands, except per share data)
Sovereign,
Sovereign & First State
Sovereign First State First State Bankers & Bankers
--------- ----------- ----------- ------- -----------
Interest income $282,790 $34,624 $317,414 $100,965 $418,379
Interest expense 153,318 15,401 168,719 47,840 216,559
------- ------ ------- ------- -------
Net interest income 129,472 19,223 148,695 53,125 201,820
Provision for possible loan losses 8,650 2,440 11,090 2,040 13,130
------- ------ ------- ------- -------
Net interest income after provision 0
for possible loan lossess 120,822 16,783 137,605 51,085 188,690
------- ------ ------- ------- -------
Other non-interest income 15,167 4,205 19,372 3,894 23,268
Non-interest expense 77,377 18,448 96,825 21,444 117,269
------- ------ ------- ------- -------
Income before taxes 58,612 2,540 61,162 33,535 94,687
Income taxes 22,998 15 23,013 12,067 35,080
------- ------ ------- ------- -------
Net income $ 35,614 $ 2,525 $ 38,139 $ 21,468 $ 59,807
======= ====== ======= ======= =======
Earnings per share $0.70 $0.65 $0.69 $1.56 $0.73
======= ====== ======= ======= =======
Note 1: Per share data do not reflect Sovereign's 6-for-5 stock split declared
January 16, 1997 and payable March 14, 1997.
Note 2: Above amounts assume no cost savings realization for either the First
State acquisition or the Bankers acquisition.