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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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): August 14, 1996
BANCFIRST OHIO CORP.
(Exact name of registrant as specified in its charter)
Ohio 0-18840 31-1294136
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
422 Main Street, P.O. Box 4658
Zanesville, Ohio 43702
(Address of principal executive offices, with zip code)
Registrant's telephone number, including area code: (614) 452-8444
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ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.
On August 14, 1996, the Company purchased all of the issued and
outstanding stock of County Savings Bank ("County") pursuant to a Stock Purchase
Agreement with First Financial Group, Inc. ("FFG") dated March 27, 1996. The
aggregate purchase price of approximately $47.8 million, was paid in cash. The
purchase price included an aggregate of $3.0 million paid to certain
shareholders of FFG pursuant to non-competition agreements entered into with the
Company. The Company funded the acquisition from (i) the net proceeds of
approximately $25.9 million from its recent sale of 1,000,000 shares of its
common stock, (ii) proceeds from a $15,000,000 loan from LaSalle National Bank
(the "Loan"), and (iii) approximately $6.7 million from the Company's existing
cash. The Loan is in the form of a seven-year term loan, expiring September 1,
2003, with annual interest payable at a floating rate equal to LIBOR plus 1.35%.
The Company is required to make quarterly interest payments beginning 90 days
from the date of funding of the Loan, and will be required to make annual
principal payments beginning 18 months from funding, based upon a 10-year
amortization.
The terms of the sale, including the purchase price and form of
consideration was the result of arms'-length negotiations between the parties.
Prior to this transaction, there has been no material relationship between
County and the Company, its affiliates, any officer or director of the Company
or any of their affiliates.
In connection with the acquisition, the Company acquired all of the
equipment and other physical property of County, consisting of equipment and
physical property used in County's banking business. The Company intends to
continue to use the assets acquired in this transaction in the manner utilized
by County prior to the acquisition.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements of businesses acquired
Filed as a part of the registration statement on Form S-3,
registration number 333-6707.
(b) Pro forma financial information
Attached hereto as Appendix A.
(c) Exhibits.
2.1 Stock Purchase Agreement by and between the Company and First
Financial Group, Inc. Dated March 27, 1996 (incorporated by
reference to Exhibit 2.1 to the Company's Form 8-K filed March
28, 1996).
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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 hereunto duly authorized on this 29th day of August, 1996.
BANCFIRST OHIO CORP.
By: /s/ Gary N. Fields
---------------------------------
Gary N. Fields, President
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APPENDIX A
BANCFIRST OHIO CORP.
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited Pro Forma Consolidated Financial Statements of the
Company include the historical Consolidated Financial Statements of the Company
and County and give effect to the transactions and events described in the Notes
to the Pro Forma Consolidated Financial Statements as if the transactions and
events referred to therein were initiated at the beginning of 1995 in the case
of the unaudited Pro Forma Consolidated Statements of Income and as of June 30,
1996, in the case of the unaudited Pro Forma Consolidated Balance Sheet.
The unaudited Pro Forma Consolidated Financial Statements give effect to
the following transactions and events: (i) the sale and issuance of 1,000,000
shares of Common Stock in the Offering, (ii) borrowings of $15.0 million under
the Loan, and (iii) the aggregate amount of cash to be paid to FFG and its
shareholders as a result of the Acquisition. The Acquisition will be accounted
for as a purchase and County's assets and liabilities will be restated at their
fair values and identifiable intangible assets will be recorded. The excess of
the purchase price over the assets acquired and liabilities assumed will be
recorded as goodwill. The unaudited Pro Forma Consolidated Financial Statements
do not give effect to any revenue enhancements or operating efficiencies that
management believes may result from the Acquisition.
Management believes the assumptions used provide a reasonable basis on
which to present the unaudited Pro Forma Consolidated Financial Statements. This
information should be read in conjunction with the historical Consolidated
Financial Statements and notes thereto of both the Company and County included
elsewhere in this Prospectus. The Pro Forma Consolidated Financial Statements
are not necessarily indicative of the Company's results of operations or
financial position had the transactions above been consummated on the dates
assumed and do not project the Company's results of operations or the Company's
financial position for any future date or period.
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BANCFIRST OHIO CORP.
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 1996
--------------------------------------------------------
BANCFIRST COUNTY PRO FORMA PRO FORMA
HISTORICAL HISTORICAL ADJUSTMENTS CONSOLIDATED
---------- ---------- ----------- ------------
(IN THOUSANDS)
ASSETS:
Cash and due from banks.............. $ 19,317 $ 2,839 $ (7,403)(4)(5) $ 14,753
Federal funds sold................... 326 -- -- 326
Securities held to maturity, at
amortized cost (approximate fair
value of $8,583 and $45,535 for the
Company and County,
respectively)...................... 8,542 46,367 (1,383)(3) 53,526
Securities available-for-sale, at
fair value......................... 160,502 66,097 -- 226,599
---------- -------- --------- ----------
Total investment securities........ 169,044 112,464 (1,383) 280,125
---------- -------- --------- ----------
Loans, net of unearned income........ 282,943 400,965 1,186 (3) 685,094
Allowance for possible loan losses... (3,544) (2,143) -- (5,687)
---------- -------- --------- ----------
Net loans.......................... 279,399 398,822 1,186 679,407
---------- -------- --------- ----------
Premises and equipment, net.......... 4,612 1,966 1,290 (3) 7,868
Accrued interest receivable.......... 3,397 3,180 -- 6,577
Other assets......................... 4,187 2,473 -- 6,660
Noncompete agreement................. -- -- 3,000 (5) 3,000
Core deposit intangibles............. -- -- 3,400 (3) 3,400
Goodwill............................. -- -- 6,927 (4) 6,927
---------- -------- --------- ----------
Total assets.................... $ 480,282 $521,744 $ 7,017 $1,009,043
========= ======== ========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Liabilities:
Deposits:
Non-interest-bearing deposits...... $ 42,171 $ 8,572 $ -- $ 50,743
Interest-bearing deposits.......... 316,568 344,123 523 (3) 661,214
---------- -------- --------- ----------
Total deposits.................. 358,739 352,695 523 711,957
Short-term borrowings................ 1,199 131,217 -- 132,416
Long-term borrowings................. 66,525 -- 15,000 (1) 81,525
Accrued interest payable............. 1,547 374 -- 1,921
Other liabilities.................... 1,780 2,350 (78) 4,852
-- -- 800 (3) --
---------- -------- --------- ----------
Total liabilities............... 429,790 486,636 16,245 932,671
---------- -------- --------- ----------
Shareholders' equity:
Common stock....................... 30,340 600 9,400 (2)(4) 40,340
Capital in excess of par value..... 6,922 -- 15,880 (2)(4) 22,802
Retained earnings.................. 14,943 34,560 (34,560)(4) 14,943
Unrealized holdings
gains(losses) on securities
available-for-sale, net....... (580) (52) 52 (4) (580)
Treasury stock..................... (1,133) -- -- (1,133)
---------- -------- --------- ----------
Total shareholders' equity...... 50,492 35,108 (9,228) 76,372
---------- -------- --------- ----------
Total liabilities and
shareholders' equity.......... $ 480,282 $521,744 $ 7,017 $1,009,043
========== ======== ========= ==========
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BANCFIRST OHIO CORP.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME SUMMARY
SIX MONTHS
ENDED YEAR ENDED
JUNE 30, 1996 DECEMBER 31, 1995
------------- ------------------
(DOLLARS IN THOUSANDS, EXCEPT PER
SHARE DATA)
Interest income:
Interest and fees on loans............................... $ 27,320 $ 49,791
Interest and dividends on securities:
Taxable............................................... 9,106 19,697
Tax exempt............................................ 659 1,148
Other interest income...................................... 118 216
-------------- -----------------
Total interest income................................. 37,203 70,852
-------------- -----------------
Interest expense:
Time deposits over $100.................................. 1,500 2,498
Other deposits........................................... 14,578 26,855
FHLB advances............................................ 3,821 8,466
Other borrowings......................................... 1,314 2,757
-------------- -----------------
Total interest expense................................ 21,213 40,576
-------------- -----------------
Net interest income................................... 15,990 30,276
Provision for possible loan losses......................... 798 1,217
-------------- -----------------
Net interest income after provision for loan losses........ 15,192 29,059
-------------- -----------------
Non-interest income:
Trust and custodian fees................................. 726 1,259
Customer service fees.................................... 1,168 2,302
Investment securities gains.............................. 299 298
Gain on sale of loans.................................... 1,109 1,432
Other.................................................... 574 1,363
-------------- -----------------
Total non-interest income............................. 3,876 6,654
-------------- -----------------
Non-interest expenses:
Salaries and employee benefits........................... 6,384 12,322
Net occupancy expense.................................... 940 1,884
Other.................................................... 5,014 9,865
-------------- -----------------
Total non-interest expenses................................ 12,338 24,071
-------------- -----------------
Income before income taxes............................... 6,730 11,642
Provision for federal income taxes......................... 2,133 3,184
-------------- -----------------
Net income............................................ $ 4,597 $ 8,458
============== =================
Net income per share....................................... $ 1.16 $ 2.13
Weighted average shares outstanding........................ 3,972,883 3,973,694
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BANCFIRST OHIO CORP.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 1996
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BANCFIRST COUNTY PRO FORMA PRO FORMA
HISTORICAL HISTORICAL ADJUSTMENTS CONSOLIDATED
---------- ---------- ----------- ------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Interest income:
Interest and fees on loans.............. $ 12,363 $ 15,076 $ (119)(1) $ 27,320
Interest and dividends on securities:
Taxable.............................. 4,966 4,054 86 (1) 9,106
Tax exempt........................... 659 -- -- 659
Other interest income..................... 118 -- -- 118
---------- ---------- ----------- ------------
Total interest income................ 18,106 19,130 (33) 37,203
---------- ---------- ----------- ------------
Interest expense:
Time deposits over $100................. 1,500 -- -- 1,500
Other deposits.......................... 5,259 9,449 (130)(1) 14,578
FHLB advances........................... 1,694 2,127 3,821
Other borrowings........................ 403 395 516 (2) 1,314
---------- ---------- ----------- ------------
Total interest expense............... 8,856 11,971 386 21,213
---------- ---------- ----------- ------------
Net interest income.................. 9,250 7,159 (419) 15,990
Provision for possible loan losses........ 610 188 -- 798
---------- ---------- ----------- ------------
Net interest income after provision for
loan losses............................. 8,640 6,971 (419) 15,192
---------- ---------- ----------- ------------
Non-interest income:
Trust and custodian fees................ 726 -- -- 726
Customer service fees................... 843 325 -- 1,168
Investment securities gains/losses...... 3 296 -- 299
Gain on sale of loans................... 1,046 63 -- 1,109
Other................................... 384 190 -- 574
---------- ---------- ----------- ------------
Total non-interest income............ 3,002 874 -- 3,876
Non-interest expenses:
Salaries and employee benefits.......... 3,743 2,641 -- 6,384
Net occupancy expense................... 387 527 26 (1) 940
Other................................... 2,750 1,573 391 (1) 5,014
300 (3)
---------- ---------- ----------- ------------
Total non-interest expenses............... 6,880 4,741 717 12,338
---------- ---------- ----------- ------------
Income before income taxes.............. 4,762 3,104 (1,136) 6,730
Provision for federal income taxes........ 1,355 1,031 (253)(4) 2,133
---------- ---------- ----------- ------------
Net income........................... $ 3,407 $ 2,073 $ (883) $ 4,597
========= ========= =========== ===========
Net income per share...................... $ 1.15 $ 1.16
Weighted average shares outstanding....... 2,972,883 1,000,000 3,972,883
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BANCFIRST OHIO CORP.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
YEAR ENDED DECEMBER 31, 1995
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BANCFIRST COUNTY PRO FORMA PRO FORMA
HISTORICAL HISTORICAL ADJUSTMENTS CONSOLIDATED
---------- ---------- ----------- ------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Interest income:
Interest and fees on loans.............. $ 23,088 $ 26,940 $ (237)(1) $ 49,791
Interest and dividends on securities:
Taxable.............................. 9,611 9,913 173 (1) 19,697
Tax exempt........................... 1,148 -- -- 1,148
Other interest income................... 216 -- -- 216
---------- ---------- ----------- ------------
Total interest income................ 34,063 36,853 (64) 70,852
---------- ---------- ----------- ------------
Interest expense:
Time deposits over $100................. 2,498 -- -- 2,498
Other deposits.......................... 9,927 17,190 (262)(1) 26,855
FHLB advances........................... 3,765 4,701 8,466
Other borrowings........................ 167 1,555 1,035 (2) 2,757
---------- ---------- ----------- ------------
Total interest expense............... 16,357 23,446 773 40,576
---------- ---------- ----------- ------------
Net interest income.................. 17,706 13,407 (837) 30,276
Provision for possible loan losses........ 967 250 -- 1,217
---------- ---------- ----------- ------------
Net interest income after provision for
loan losses............................. 16,739 13,157 (837) 29,059
---------- ---------- ----------- ------------
Non-interest income:
Trust and custodian fees................ 1,259 -- -- 1,259
Customer service fees................... 1,714 588 -- 2,302
Investment securities gains/losses...... 136 162 -- 298
Gain on sale of loans................... 1,310 122 -- 1,432
Other................................... 565 798 -- 1,363
---------- ---------- ----------- ------------
Total non-interest income............ 4,984 1,670 -- 6,654
Non-interest expenses:
Salaries and employee benefits.......... 6,866 5,456 -- 12,322
Net occupancy expense................... 752 1,080 52 (1) 1,884
Other................................... 5,187 3,295 783 (1) 9,865
600 (3)
---------- ---------- ----------- ------------
Total non-interest expenses............... 12,805 9,831 1,435 24,071
---------- ---------- ----------- ------------
Income before income taxes.............. 8,918 4,996 (2,272) 11,642
Provision for federal income taxes........ 2,706 984 (506)(4) 3,184
---------- ---------- ----------- ------------
Net income........................... $ 6,212 $ 4,012 $ (1,766) $ 8,458
========= ========= =========== ===========
Net income per share...................... $ 2.09 $ 2.13
Weighted average shares outstanding....... 2,973,694 1,000,000 3,973,694
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BANCFIRST OHIO CORPORATION
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NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
BASIS OF PRESENTATION
The following pro forma adjustments are based on available information and
certain estimates and assumptions. Therefore, it is likely that the actual
adjustments will differ from the pro forma adjustments. The Company believes
that such assumptions provide a reasonable basis for presenting all of the
significant effects of the following transactions and that the pro forma
adjustments give appropriate effect to those assumptions and are properly
applied in the unaudited pro forma consolidated financial statements.
ADJUSTMENTS TO PRO FORMA CONSOLIDATED BALANCE SHEET
(1) Represents long-term borrowings of $15,000 under a loan agreement to be
entered into with LaSalle National Bank to fund a portion of the proposed
Acquisition.
(2) Represents the issuance and sale of 1,000,000 shares of Common Stock in
the Offering, at an offering price of $28.00.
(3) Represents the impact of the purchase accounting adjustments as
follows:
DEBIT CREDIT
------ ------
Core deposit intangibles......................................... $3,400
Bank premises and equipment, net................................. 1,290
Loans............................................................ 1,186
Securities held-to-maturity.................................... $1,383
OPEB obligation................................................ 800
Other liabilities.............................................. 78
Interest-bearing deposits...................................... 523
Deferred taxes have been provided on the difference between the tax basis
and the new book basis of assets acquired and liabilities assumed at the
statutory federal rate of 34% and recorded as other liabilities.
(4) Represents the proposed Acquisition for a purchase price of $44,775,
subject to adjustment by the amount by which County's shareholder's equity is
greater than or less than $35,000 at the date of closing. The pro forma
consolidated balance sheet reflects an upward adjustment of $108 to the
purchase price based upon County's shareholder's equity at June 30, 1996.
Approximately $400 of direct acquisition costs to be paid in cash are
capitalized. The proposed Acquisition will be funded by the net proceeds from
the Offering, $15,000 of long-term borrowings and utilization of approximately
$7,403 of existing Company assets.
Purchase price............................................................ $44,775
Capitalized acquisition costs............................................. 400
-------
Total acquisition costs......................................... 45,175
County's shareholder's equity at June 30, 1996........................... 35,108
Shareholder's equity at June 30, 1996 above agreed upon capital level at
closing................................................................. 108
-------
Excess value over book value.............................................. $10,175
=======
Adjustments to reflect fair value:
Securities.............................................................. $(1,383)
Loans................................................................... 1,186
Bank premises and equipment............................................. 1,290
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BANCFIRST OHIO CORPORATION
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NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS -- CONTINUED
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Core deposit asset...................................................... 3,400
Interest-bearing deposits............................................... (523)
OPEB obligation......................................................... (800)
Other liabilities....................................................... 78
-------
Total fair value adjustments.................................... $ 3,248
-------
Total goodwill............................................................ $ 6,927
=======
(5) Represents payment of approximately $3,000 to shareholders of FFG
pursuant to non-competition agreements.
ADJUSTMENTS TO PRO FORMA CONSOLIDATED STATEMENTS OF INCOME
(1) Represents the amortization of the purchase accounting adjustments over
the following periods:
Amortization for the purchase accounting adjustment is as follows:
AMORTIZATION AMORTIZATION
PERIOD METHOD
------------ -------------
Bank premises and equipment, net......................... 25 years Straight-line
Loans.................................................... 5 years Straight-line
Securities held-to-maturity.............................. 8 years Level yield
Core deposit intangibles................................. 15 years Accelerated
Goodwill................................................. 25 years Straight-line
Interest-bearing deposits................................ 2 years Straight-line
(2) Represents interest expense on $15,000 of long-term borrowings.
(3) Represents amortization of the non-competition agreements on a
straight-line basis over five years.
(4) Represents estimated income tax effects of the pro forma adjustments at
an effective tax rate of 34%.