Exhibit 99
UNITED NATIONAL BANCORP
STATEMENT OF NET ASSETS ACQUIRED (AT FAIR VALUE)
August 21, 2002
(Dollars in millions)
ASSETS:
Cash and due from banks .............................................. $ 15.8
Short-term investments ............................................... 93.7
Securities ........................................................... 188.3
Loans ................................................................ 413.8
Allowance for loan losses ............................................ (6.1)
------
Net loans ......................................................... 407.7
Goodwill and other intangible assets ................................. 94.3
Premises and equipment, net .......................................... 7.5
Other assets ......................................................... 19.6
------
Total assets ...................................................... $826.9
======
LIABILITIES:
Demand deposits ...................................................... $ 73.8
Savings deposits ..................................................... 273.8
Time deposits ........................................................ 268.7
------
Total deposits .................................................... 616.3
Short-term borrowings ................................................ 33.0
Other borrowings ..................................................... 17.1
Other liabilities .................................................... 12.9
------
Total liabilities ................................................. 679.3
Net assets acquired ............................................... $147.6
======
See Accompanying Notes to the Unaudited Pro Forma Condensed Combined
Financial Statements.
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UNITED NATIONAL BANCORP
NOTES TO STATEMENT OF NET ASSETS ACQUIRED
NOTE 1: BUSINESS COMBINATION
On August 21, 2002, Vista Bancorp, Inc. ("Vista") was merged with and into
United National Bancorp ("United") with United being the surviving corporation
(the "Merger") in a transaction accounted for under the purchase method of
accounting. Under the terms of the Merger, United acquired all 5,350,637
outstanding shares of Vista in exchange for approximately 4,695,184 shares of
United common stock (representing 75% of 1.17 times the number of Vista common
shares outstanding as of August 21, 2002) at the five-day average closing price
per share of United Common Stock, which includes two business days before and
after November 20, 2001, the day on which United and Vista announced the Merger.
The five-day average market price per share of United Common Stock was $23.36.
The Merger also calls for the payment of approximately $37,943,095 in cash
(representing $7.09 times the number of Vista common shares outstanding as of
August 21, 2002 plus cash paid in lieu on any fractional share of United that
would otherwise be issued). Vista's stock options of 15,916 were exchanged for
United options (representing an exchange ratio of 1.219 times the number of
Vista options outstanding as of August 21, 2002) and the exercise price was
adjusted accordingly.
United and Vista entered into this merger to enhance stockholder value by
building a community banking company able to provide more products and services
for its customers, more investment opportunities for clients and added capital
to deploy in the future. The merger enhances the combined company's range of
products and services and increases the distribution channels available to
customers. The acquisition of Vista has strengthened United's market share
position in the western New Jersey marketplace and has provided an entry into
Pennsylvania.
Under the purchase method of accounting, the assets and liabilities of
Vista were recorded at their respective fair values as of the merger date. Each
of the purchase accounting adjustments represents fair values assigned to the
assets and liabilities of Vista. Based on the ending Vista tangible equity of
$59.8 million, an aggregate purchase price of $147.6 million and net purchase
accounting adjustments amounting to $6.6 million, the merger resulted in total
intangible assets of $94.3 million. Of the total intangible assets, $14.8
million was allocated to core deposit premiums, based on a deposit intangible
valuation study, and the remaining amount of $79.5 million to goodwill.
The goodwill recorded in connection with the merger is not subject to
amortization and none is deductible for tax purposes. The core deposit
intangible is being amortized over its estimated economic life (10 years) using
a straight-line method.
United is in the process of allocating the goodwill and core deposit
intangible to reportable segments, which include Retail Banking, Commercial
Banking, Investments, Trust and Investment Services, and All Other.
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NOTE 2: PURCHASE PRICE AND GOODWILL
The computation of the purchase price, the allocation of the purchase price
to net assets of Vista based on their respective fair values as of August 21,
2002, and the resulting amount of goodwill are presented below.
Common shares outstanding of Vista on June 30, 2002 (in thousands) .................... 5,350.6
Percentage to be exchanged for United Common Stock .................................... 75%
--------
Vista common shares to be exchanged for United Common Stock (in thousands) ............ 4,013.0
Exchange ratio ........................................................................ 1.17
--------
United Common Stock to be issued (in thousands) ................................. 4,695.2
Market price per share of United Common Stock ......................................... $ 23.36
--------
Total market value of United Common Stock to be issued (in millions) ............ $ 109.7
========
Common shares outstanding of Vista on June 30, 2002 (in thousands) .................... 5,350.6
Percentage to be exchanged for cash ................................................... 25%
--------
Vista common shares to be exchanged for cash (in thousands) ..................... 1,337.7
Cash price per share of Vista Common Stock ............................................ $ 28.36
--------
Total cash to be distributed to Vista shareholders (in millions) ................ $ 37.9
========
Total purchase price of Vista (in millions) ........................................... $ 147.6
========
(In millions)
Total purchase price of Vista ......................................................... $ 147.6
Total common stockholder's equity of Vista ............................................ (59.8)
--------
Excess of purchase price over carrying value of assets acquired ................. 87.8
Purchase accounting adjustments related to assets and liabilities acquired:
Borrowings* ..................................................................... 0.5
Benefit plans* .................................................................. 1.2
Other liabilities (transaction costs incurred in connection with the Merger)* ... 2.2
Investment securities* .......................................................... (3.5)
Core deposit intangible* ........................................................ (8.7)
--------
Goodwill .............................................................................. $ 79.5
========
* Net of applicable income tax effects.
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NOTE 3: UNAUDITED PRO FORMA CONSOLIDATED CONDENSED STATEMENTS OF INCOME (LOSS)
The unaudited pro forma consolidated condensed statements of income
presented below as of and for the three months and nine months ended September
30, 2002 and 2001, and for the year ended December 31, 2001 should be read in
conjunction with Note 1 and Note 2 presented herein. The unaudited pro forma
information presented in the pro forma consolidated condensed statements of
income is not necessarily indicative of the results of operations or the
combined financial position that would have resulted had the Merger been
completed at the beginning of the applicable periods presented, nor is it
necessarily indicative of the results of operations in future periods or the
future financial position of the combined company.
The combined company expects to achieve certain merger benefits in the form
of operating expense reductions and revenue enhancements. The unaudited pro
forma condensed combined statement of income does not reflect potential
operating expense reductions or revenue enhancements that are expected to result
from the Merger, and therefore may not be indicative of the results of future
operations. No assurance can be given with respect to the ultimate level of
operating expense reductions or revenue enhancements.
The pro forma purchase accounting adjustments related to securities and
borrowings are being amortized or accreted into income using methods that
approximate a level yield over their respective estimated lives. The fair value
of loans, deposits and stock options of Vista as compared to their carrying
values was not significant to the pro forma amounts presented and therefore,
have been omitted from the pro forma condensed combined financial statements.
The core deposit intangible is being amortized and included as a charge to
non-interest expense over its estimated economic life (10 years) using the
straight-line method.
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United National Bancorp
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In Thousands, Except Share Data)
Three Months Ended September 30, 2002
---------------------------------------------------
United
National Vista Pro Forma Pro Forma
Bancorp (a) Bancorp (b) Adjustments Combined
----------- ----------- ----------- ---------
Interest Income $33,625 $ 5,969 $ (675) $38,919
Interest Expense 13,192 2,145 545 15,882
- -------------------------------------------------------------------------------------------------------------
Net Interest Income 20,433 3,824 (1,220) 23,037
Provision for Loan Losses 1,000 502 1,502
- -------------------------------------------------------------------------------------------------------------
Net Interest Income After Provision for Loan Losses 19,433 3,322 (1,220) 21,535
- -------------------------------------------------------------------------------------------------------------
Non-Interest Income 5,324 1,121 6,445
Non-Interest Expense 17,179 6,674 370 24,223
- -------------------------------------------------------------------------------------------------------------
Income (Loss) Before Provision (Benefit) for Income
Taxes 7,578 (2,231) (1,590) 3,757
Provision (Benefit) for Income Taxes 1,806 (502) (649) 655
- -------------------------------------------------------------------------------------------------------------
NET INCOME (Loss) $ 5,772 $(1,729) $ (941) $ 3,102
=============================================================================================================
NET INCOME PER COMMON SHARE:
Basic $ 0.35 $ (0.57) $ $ 0.16
=============================================================================================================
Diluted $ 0.34 $ (0.57) $ $ 0.16
=============================================================================================================
Weighted Average Shares Outstanding:
Basic 16,665 3,024 2,654 19,319
=============================================================================================================
Diluted 16,786 3,024 2,654 19,440
=============================================================================================================
Three Months Ended September 30, 2001
---------------------------------------------------
United
National Vista Pro Forma Pro Forma
Bancorp (c) Bancorp (d) Adjustments Combined
----------- ----------- ----------- ---------
Interest Income $33,616 $11,997 $ (675) $44,938
Interest Expense 15,252 5,246 545 21,043
- -------------------------------------------------------------------------------------------------------------
Net Interest Income 18,364 6,751 (1,220) 23,895
Provision for Loan Losses 721 225 946
- -------------------------------------------------------------------------------------------------------------
Net Interest Income After Provision for Loan Losses 17,643 6,526 (1,220) 22,949
- -------------------------------------------------------------------------------------------------------------
Non-Interest Income 5,738 1,453 7,191
Non-Interest Expense 13,923 4,832 370 19,125
- -------------------------------------------------------------------------------------------------------------
Income (Loss) Before Provision (Benefit) for Income
Taxes 9,458 3,147 (1,590) 11,015
Provision (Benefit) for Income Taxes 2,758 952 (649) 3,061
- -------------------------------------------------------------------------------------------------------------
NET INCOME (Loss) $ 6,700 $ 2,195 $ (941) $ 7,954
=============================================================================================================
NET INCOME PER COMMON SHARE:
Basic $ 0.44 $ 0.41 $ $ 0.40
=============================================================================================================
Diluted $ 0.44 $ 0.41 $ $ 0.40
=============================================================================================================
Weighted Average Shares Outstanding:
Basic 15,075 5,302 4,653 19,728
=============================================================================================================
Diluted 15,241 5,302 4,653 19,894
=============================================================================================================
See accompanying Notes to Statement of Net Assets Acquired.
(a) Includes United for the three months ended September 30, 2002 and Vista for
the period August 22, 2002 through September 30, 2002.
(b) Includes Vista for the period July 1, 2002 through August 21, 2002.
(c) Includes United for the three months ended September 30, 2001.
(d) Includes Vista for the three months ended September 31, 2001.
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United National Bancorp
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In Thousands, Except Share Data)
Nine Months Ended September 30, 2002
---------------------------------------------------
United
National Vista Pro Forma Pro Forma
Bancorp (a) Bancorp (b) Adjustments Combined
----------- ----------- ----------- ---------
Interest Income $93,145 $27,821 $(2,025) $118,941
Interest Expense 36,844 9,747 1,635 48,226
- -------------------------------------------------------------------------------------------------------------
Net Interest Income 56,301 18,074 (3,660) 70,715
Provision for Loan Losses 9,950 237 10,187
- -------------------------------------------------------------------------------------------------------------
Net Interest Income After Provision for Loan Losses 46,351 17,837 (3,660) 60,528
- -------------------------------------------------------------------------------------------------------------
Non-Interest Income 17,000 4,375 21,375
Non-Interest Expense 47,499 15,709 1,110 64,318
- -------------------------------------------------------------------------------------------------------------
Income (Loss) Before Provision (Benefit) for Income
Taxes 15,852 6,503 (4,770) 17,585
Provision (Benefit) for Income Taxes 2,983 2,128 (1,947) 3,164
- -------------------------------------------------------------------------------------------------------------
NET INCOME $12,869 $ 4,375 $(2,823) $ 14,421
=============================================================================================================
NET INCOME PER COMMON SHARE:
Basic $ 0.84 $ 0.96 $ $ 0.75
=============================================================================================================
Diluted $ 0.83 $ 0.96 $ $ 0.74
=============================================================================================================
Weighted Average Shares Outstanding:
Basic 15,343 4,565 4,006 19,349
=============================================================================================================
Diluted 15,476 4,565 4,006 19,482
=============================================================================================================
Nine Months Ended September 30, 2001
---------------------------------------------------
United
National Vista Pro Forma Pro Forma
Bancorp (c) Bancorp (d) Adjustments Combined
----------- ----------- ----------- ---------
Interest Income $106,149 $37,144 $(2,025) $141,268
Interest Expense 52,779 17,458 1,635 71,872
- -------------------------------------------------------------------------------------------------------------
Net Interest Income 53,370 19,686 (3,660) 69,396
Provision for Loan Losses 2,083 675 2,758
- -------------------------------------------------------------------------------------------------------------
Net Interest Income After Provision for Loan Losses 51,287 19,011 (3,660) 66,638
- -------------------------------------------------------------------------------------------------------------
Non-Interest Income 17,782 3,788 21,570
Non-Interest Expense 43,524 14,397 1,110 59,031
- -------------------------------------------------------------------------------------------------------------
Income (Loss) Before Provision (Benefit) for Income
Taxes 25,545 8,402 (4,770) 29,177
Provision (Benefit) for Income Taxes 7,064 2,462 (1,947) 7,579
- -------------------------------------------------------------------------------------------------------------
NET INCOME $ 18,481 $ 5,940 $(2,823) $ 21,598
=============================================================================================================
NET INCOME PER COMMON SHARE:
Basic $ 1.22 $ 1.11 $ $ 1.09
=============================================================================================================
Diluted $ 1.22 $ 1.11 $ $ 1.09
=============================================================================================================
Weighted Average Shares Outstanding:
Basic 15,087 5,332 4,679 19,766
=============================================================================================================
Diluted 15,214 5,332 4,679 19,893
=============================================================================================================
See accompanying Notes to Statement of Net Assets Acquired.
(a) Includes United for the nine months ended September 30, 2002 and Vista for
the period August 22, 2002 through September 30, 2002.
(b) Includes Vista for the period January 1, 2002 through August 21, 2002.
(c) Includes United for the nine months ended September 30, 2001.
(d) Includes Vista for the nine months ended September 30, 2001.
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United National Bancorp
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In Thousands, Except Share Data)
Year Ended December 31, 2001
---------------------------------------------------
United
National Vista Pro Forma Pro Forma
Bancorp (a) Bancorp (b) Adjustments Combined
----------- ----------- ----------- ---------
Interest Income $137,311 $48,812 $(2,700) $183,423
Interest Expense 65,075 22,154 2,180 89,409
- -------------------------------------------------------------------------------------------------------------
Net Interest Income 72,236 26,658 (4,880) 94,014
Provision for Loan Losses 2,761 900 3,661
- -------------------------------------------------------------------------------------------------------------
Net Interest Income After Provision for Loan Losses 69,475 25,758 (4,880) 90,353
- -------------------------------------------------------------------------------------------------------------
Non-Interest Income 22,657 5,229 27,886
Non-Interest Expense 57,574 19,337 1,480 78,391
- -------------------------------------------------------------------------------------------------------------
Income (Loss) Before Provision (Benefit) for Income
Taxes 34,558 11,650 (6,360) 39,848
Provision (Benefit) for Income Taxes 9,604 3,473 (2,596) 10,481
- -------------------------------------------------------------------------------------------------------------
NET INCOME $ 24,954 $ 8,177 $(3,764) $ 29,367
=============================================================================================================
NET INCOME PER COMMON SHARE:
Basic $ 1.65 $ 1.53 $ $ 1.49
=============================================================================================================
Diluted $ 1.64 $ 1.53 $ $ 1.48
=============================================================================================================
Weighted Average Shares Outstanding:
Basic 15,047 5,327 4,674 19,721
=============================================================================================================
Diluted 15,183 5,335 4,681 19,864
=============================================================================================================
See accompanying Notes to Statement of Net Assets Acquired.
(a) Includes United for the twelve months ended December 31, 2001.
(b) Includes Vista for the twelve months ended December 31, 2001.
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