1
FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Date of Report (Date of earliest event report) October 21, 1996
Security Banc Corporation
- -------------------------------------------------------------------------------
(Exact name of registration as specified in its charter)
Ohio 0-13655 31-1133284
- -------------------------------------------------------------------------------
(State or other jurisdiction of (Commission File Number) (IRS Employer
Incorporation) Identification No.
40 S. Limestone Street, Springfield, OH 45502
- -------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (937) 324-6800
N/A
- -------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
Date of report: October 21, 1996
2
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS - PAGE 1 OF 5
SECURITY BANC CORPORATION
NOTES TO PRO FORMA CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
On October 31, 1996, Security Banc Corporation consummated its merger with Third
Financial. The merger was recorded effective October 31, for accounting
purposes. The pro forma financial statements reflect the purchase accounting
adjustments made to record the transaction and the adjustments to the pro forma
income statement as if the merger was effective January 1, 1996.
The adjustments in the pro forma condensed financial statements assume the
following:
(a) Estimated purchase accounting adjustments and the payment of the cost
of acquisition as follows:
Cost of acquisition $40,272,541
Net assets acquired 28,014,658
-----------
TOTAL ...................... $12,257,883
Fair value adjustments to record increases (decreases) to asset book
values and decreases (increases) to liability book values:
Goodwill $ 9,410,883
Core deposit intangible............ 4,060,000
Mortgage servicing 320,000
Deferred tax liability (1,533,000)
-----------
TOTAL .................... $12,257,883
The amortization period for the above listed intangibles are as
follows:
Goodwill 25 years
Core deposit intangible 14 years
Mortgage servicing 7 years
(b) Effect of $40 million investment reduction at 6% interest rate as if
merger had been in effect January 1, 1996.
(c) Affect of amortization of intangibles as if merger had been in effect
January 1, 1996.
(d) Tax effect of (b) and (c).
3
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS-Page 2 of 5
SECURITY BANC CORPORATION AND THIRD
Pro Forma Combined Statement of Condition as of October 31, 1996 (unaudited)
PRO FORMA
PRO FORMA ADJUSTMENTS SECURITY
ASSETS SECURITY THIRD Debit Credit & THIRD
-------- ----- ----- ------ -------
Cash and Due From Banks................................ 26,724,602.26 3,127,551.00 29,852,153.26
Interest Bearing Deposits with Other Banks............. 1,000,000.00 1,000,000.00
Federal Funds Sold..................................... 38,285,810.00 11,549,890.00 40,272,541.00(a) 9,563,159.00
Investment Securities:
U.S. Treasury Securities.............................136,722,327.68 136,722,327.68
Securities of Other U.S. Government
Agencies and Corporations.......................... 14,047,987.94 11,186,075.00 25,234,062.94
Obligations of State and Political Subdivisions...... 27,520,080.86 27,520,080.86
Other Securities..................................... 1,569,400.00 1,080,000.00 2,649,400.00
Net unrealized (loss)gain on investment securities
classified as available-for-sale................... (249,238.97) (249,238.97)
------------------------------ --------------
TOTAL SECURITIES.......................................179,610,557.51 12,266,075.00 191,876,632.51
LOANS:
Commercial and Agriculture...........................182,104,968.32 182,104,968.32
Real Estate and Mortgage.............................131,425,513.65 128,765,168.00 260,190,681.65
Consumer............................................. 93,949,626.43 93,949,626.43
------------------------------ --------------
TOTAL LOANS............................................407,480,108.40 128,765,168.00 536,245,276.40
Less: Allowance for Possible Loan Losses............... 5,604,506.01 5,604,506.01
NET LOANS..............................................401,875,602.39 128,765,168.00 530,640,770.39
Investment in bank 0.00 0.00
Third savings premium 0.00 12,257,883.00(a) 12,257,883.00
Premises and Equipment................................. 6,844,117.53 1,560,631.00 8,404,748.53
Other Assets........................................... 17,108,226.48 4,359,712.00 21,467,938.48
--------------------------------------------- --------------
TOTAL ASSETS...........................................671,448,916.17 161,629,027.00 12,257,883.00 805,063,285.17
LIABILITIES
DEPOSITS
Non Interest Bearing Deposits........................100,922,241.80 115,908,459.00 216,830,700.80
Interest Bearing Demand Deposits.....................100,997,455.43 100,997,455.43
Savings Deposits.....................................125,911,007.59 125,911,007.59
Other Time Deposits..................................210,990,789.65 210,990,789.65
------------------------------ --------------
TOTAL DEPOSITS.........................................538,821,494.47 115,908,459.00 654,729,953.47
Federal Funds Purchased and Securities
Sold Under Agreement to Repurchase................... 30,832,597.00 16,112,762.00 46,945,359.00
Other Liabilities...................................... 3,827,923.32 1,452,549.00 5,280,472.32
------------------------------ --------------
TOTAL LIABILITIES......................................573,482,014.79 133,473,770.00 706,955,784.79
SHAREHOLDERS' EQUITY
Common Stock ($3.125 Par Value) 19,649,050.00 12,350.00 12,350.00(a) 19,649,050.00
authorized 11,000,000 shares
issued 6,287,696 shares,1996
issued 0,000,000 shares,1995
Surplus................................................ 20,189,449.00 10,035,664.00 10,035,664.00(a) 20,189,449.00
Retained Earnings...................................... 50,511,228.41 17,794,528.00 17,794,528.00(a) 50,511,228.41
Current earnings 10,972,776.13 172,116.00 172,116.00(a) 10,972,776.13
Net unrealized (loss)gain on investment securities 0.00
classified as available-for-sale(net of income tax) (162,402.16) 140,599.00 (21,803.16)
Less: Treasury Stock................................ 3,193,200.00 3,193,200.00
240,600 shares
--------------------------------------------- --------------
TOTAL SHAREHOLDERS'EQUITY........................... 97,966,901.38 28,155,257.00 28,014,658.00 98,107,500.38
TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY...........671,448,916.17 161,629,027.00 805,063,285.17
4
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS - Page 3 of 5
SECURITY BANC CORPORATION AND THIRD
Pro Forma Combined Statement of Income as of October 31, 1996 (unaudited)
PRO FORMA ADJUSTMENTS
STATEMENT OF EARNINGS SECURITY THIRD 10 MONTHS
--------------------- -------- ----- ---------
Total Interest Income 41,595,309.47 10,233,245.00 (2,000,000.00)(b)
Total Interest Expense 15,283,630.93 4,617,296.00
----------------------------------------------------
Net Interest Income.................................... 26,311,678.54 5,615,949.00 (2,000,000.00)
Provision for Loan Losses.............................. 1,241,667.00 45,000.00
----------------------------------------------------
Net Interest Income after Provision for Loan Losses.. 25,070,011.54 5,570,949.00 (2,000,000.00)
OTHER OPERATING INCOME
Trust Income......................................... 1,130,000.00 0.00
Service Charges on Deposit Accounts.................. 2,189,078.53 213,901.00
Securities (Losses)Gains............................. 373,067.40 282,432.00
Other Income......................................... 1,109,752.38 5,944.00
-------------------------------
Total Other Operating Income....................... 4,801,898.31 502,277.00
OPERATING EXPENSES
Salaries and Employee Benefits....................... 7,360,867.23 1,921,232.00
Equipment and Occupancy Expense...................... 1,901,108.06 336,776.00
Other Operating Expense.............................. 5,427,053.78 1,142,014.00 592,000.00(c)
----------------------------------------------------
Total Operating Expense............................ 14,689,029.07 3,400,022.00 592,000.00
Income Before Taxes.................................. 15,182,880.78 2,673,204.00
Provision for Income Taxes........................... 4,210,106.55 944,000.00 (797,000.00)(d)
Undistributed earnings 0.00
----------------------------------------------------
NET INCOME............................................. 10,972,774.23 1,729,204.00 (1,795,000.00)
<FN>
* Earnings Per Common Share..............................
Earnings Per Common Share is calculated using weighted average shares
outstanding of 0,000,000 for 1996.
PRO FORMA
SECURITY
STATEMENT OF EARNINGS & THIRD
--------------------- -------
Total Interest Income 49,828,554.47
Total Interest Expense 19,900,926.93
-------------
Net Interest Income.................................... 29,927,627.54
Provision for Loan Losses.............................. 1,286,667.00
-------------
Net Interest Income after Provision for Loan Losses.. 28,640,960.54
OTHER OPERATING INCOME
Trust Income......................................... 1,130,000.00
Service Charges on Deposit Accounts.................. 2,402,979.53
Securities (Losses)Gains............................. 655,499.40
Other Income......................................... 1,115,696.38
--------------
Total Other Operating Income....................... 5,304,175.31
OPERATING EXPENSES
Salaries and Employee Benefits....................... 9,282,099.23
Equipment and Occupancy Expense...................... 2,237,884.06
Other Operating Expense.............................. 7,161,067.78
-------------
Total Operating Expense............................ 18,681,051.07
Income Before Taxes.................................. 15,264,084.78
Provision for Income Taxes........................... 4,357,106.55
Undistributed earnings 0.00
-------------
NET INCOME............................................. 10,906,978.23
5
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS-Page 4 of 5
THIRD FINANCIAL CORPORATION
Consolidated Statement of Condition (unaudited)
as of September, 1996
ASSETS
------
Cash......................................................... 13,780,169
Mortgage-backed securities................................... 3,465,106
FHLB stock................................................... 1,080,000
Assets held for sale:
Loans-Held for sale....................................... 1,032,552
Investments-Held for sale................................. 7,636,742
Equities-Held for sale.................................... 191,936
-----------
Total assets held for sale 8,861,230
Loans:
Mortgages, net............................................ 91,699,392
Consumers................................................. 10,958,783
Commercials............................................... 25,305,887
Total loans.................................................. 127,964,062
Office properties and equipment.............................. 1,563,877
Accrued interest receivable.................................. 1,062,733
Other assets................................................. 2,784,932
-----------
Total assets................................................. 160,562,109
===========
- ----------------------------------------------------------------------------------------
LIABILITIES
-----------
Deposits:
NOW accounts.............................................. 18,658,094
Savings................................................... 28,468,241
Certificates of deposit................................... 63,360,063
Total deposits............................................... 110,486,398
FHLB advances................................................ 19,131,924
Accrued expense and other liabilities........................ 3,639,408
-----------
Total liabilities............................................ 133,257,730
SHAREHOLDERS EQUITY
-------------------
Common Stock-par value....................................... 12,350
Additional paid-in capital................................... 12,342,569
Retained earnings............................................ 16,749,853
Mrk to Mkt FASB 115.......................................... 140,599
Treasury stock............................................... (1,791,986)
ESOP......................................................... (259,350)
MRRP......................................................... (205,107)
Net income................................................... 315,451
-----------
Total shareholders equity.................................... 27,304,379
-----------
Total liability and share equity............................. 160,562,109
===========
6
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS-Page 5 of 5
THIRD FINANCIAL CORPORATION
Statement of Earnings (unaudited)
12 Months Ending September, 1996
Interest Income:
Total interest income........................................ 12,253,540
Interest expense:
Total interest expense....................................... 5,531,982
Net interest income 6,721,558
Provision for loan losses................................ 1,545,000
---------
Net interest income after provision.......................... 5,176,558
Non-interest income:
Service charges and fee income............................ 265,994
Gain on sale of securities, net........................... 299,542
Gain (loss) on sale of loans, net......................... 46,168
Other non-interest income................................. 7,062
---------
Total non-interest income.................................... 618,766
Non-interest expense:
Directors fees............................................ 80,027
Compensation.............................................. 1,403,290
ESOP/MRRP................................................. 542,545
Benefit expense........................................... 362,194
Occupancy................................................. 461,018
Data Processing........................................... 278,121
FDIC insurance............................................ 1,010,254
Franchise and other taxes................................. 226,173
Advertising............................................... 56,301
Contributions............................................. 23,575
Other non-interest expense................................ 820,375
---------
Total non-interest expense:.................................. 5,263,873
Net operating income......................................... 531,451
Federal income tax........................................... 216,000
---------
Net income after tax......................................... 315,451
=========
7
SECURITY BANC CORPORATION
SIGNATURE
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.
SECURITY BANC CORPORATION
By /s/ J. William Stapleton
---------------------------------
J. William Stapleton
Executive Vice President/CFO
December 30, 1996