1
EXHIBIT 99(b)
PRO FORMA UNAUDITED CONSOLIDATED BALANCE SHEET
AT MARCH 31, 1999
Consolidated
FFBC Sand Ridge Pro forma
---------- ---------- ------------
ASSETS
Cash and due from banks $ 124,222 $ 11,919 $ 136,141
Interest-bearing deposits with other banks 9,029 100 9,129
Federal funds sold and securities purchased
under agreements to resell 11,354 0 11,354
Investment securities held-to-maturity, at cost 32,087 32,087
(market value $33,595 at March 31, 1999 and $37,214 at
December 31, 1998)
Investments available-for-sale, at market value 288,971 199,280 488,251
Loans:
Commercial 641,344 36,888 678,232
Real estate-construction 75,634 0 75,634
Real estate-mortgage 1,060,070 246,220 1,306,290
Installment 494,882 39,898 534,780
Credit card 16,793 2,571 19,364
Lease financing 35,361 0 35,361
---------- -------- ----------
Total loans 2,324,084 325,577 2,649,661
Less:
Unearned income 2,803 0 2,803
Allowance for loan losses 30,502 4,778 35,280
---------- -------- ----------
Net loans 2,290,779 320,799 2,611,578
Premises and equipment 52,181 5,900 58,081
Goodwill 31,039 0 31,039
Other intangibles 11,126 0 11,126
Deferred income taxes 1,565 2,503 4,068
Accrued interest and other assets 53,182 5,121 58,303
---------- -------- ----------
TOTAL ASSETS $2,905,535 $545,622 $3,451,157
========== ======== ==========
LIABILITIES
Deposits:
Noninterest-bearing $ 304,936 $ 53,895 $ 358,831
Interest-bearing 2,012,361 388,648 2,401,009
---------- -------- ----------
Total deposits 2,317,297 442,543 2,759,840
Short-term borrowings
Federal funds purchased and securities sold
under agreements to repurchase 43,580 19,972 63,552
Federal Home Loan Bank borrowings 88,000 20,314 108,314
Other 482 706 1,188
---------- -------- ----------
Total short-term borrowings 132,062 40,992 173,054
Long-term borrowings 116,165 13,712 129,877
Accrued interest and other liabilities 32,465 3,545 36,010
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TOTAL LIABILITIES 2,597,989 500,792 3,098,781
SHAREHOLDERS' EQUITY
Common stock - no par value
Authorized - 60,000,000 shares
Issued - 36,320,338 shares in 1999 297,687 600 302,887
Surplus 0 4,600 0
Retained earnings 11,062 37,761 48,823
Accumulated comprehensive income 1,162 1,869 3,031
Treasury Stock, at cost, 70,039 (509) 0 (509)
Restricted Stock Awards (1,856) 0 (1,856)
---------- -------- ----------
TOTAL SHAREHOLDERS' EQUITY 307,546 44,830 352,376
---------- -------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $2,905,535 $545,622 $3,451,157
========== ======== ==========
2
EXHIBIT 99(b)
PRO FORMA UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months ended
March 31, 1999
-----------------------------------------------------
First Sand Ridge Consolidated
Financial Financial Pro forma
--------- ---------- ------------
Interest income
Loans, including fees $50,701 $6,324 $57,025
Investment securities
Taxable 4,239 1,427 5,666
Tax-exempt 785 1,424 2,209
------- ------ -------
Total investment interest 5,024 2,851 7,875
Interest-bearing deposits with other banks 54 2 56
Federal funds sold and securities
purchased under agreements to resell 29 2 31
------- ------ -------
Total interest income 55,808 9,179 64,987
Interest expense
Deposits 19,074 3,745 22,819
Short-term borrowings 1,257 238 1,495
Long-term borrowings 1,369 533 1,902
------- ------ -------
Total interest expense 21,700 4,516 26,216
------- ------ -------
Net interest income 34,108 4,663 38,771
Provision for loan losses 1,939 525 2,464
------- ------ -------
Net interest income after
provision for loan losses 32,169 4,138 36,307
Noninterest income
Service charges on deposit accounts 3,059 586 3,645
Trust income 3,396 41 3,437
Investment securities gains 17 0 17
Other 2,300 553 2,853
------- ------ -------
Total noninterest income 8,772 1,180 9,952
Noninterest expenses
Salaries and employee benefits 13,028 1,665 14,693
Net occupancy expenses 1,574 228 1,802
Furniture and equipment expenses 1,257 256 1,513
Data processing expenses 1,450 158 1,608
Deposit insurance expenses 119 20 139
State taxes 476 0 476
Amortization of intangibles 943 0 943
Other 4,958 927 5,885
------- ------ -------
Total noninterest expenses 23,805 3,254 27,059
------- ------ -------
Income before income taxes 17,136 2,064 19,200
Income tax expense 6,006 429 6,435
------- ------ -------
Net earnings $11,130 $1,635 $12,765
======= ====== =======
Net earnings per share - basic $ 0.31 $27.25 $ 0.31
======= ====== =======
Net earnings per share - diluted $ 0.31 $27.25 $ 0.31
======= ====== =======
Cash dividends declared per share $ 0.15 $ 4.75 $ 0.15
======= ====== =======
Average shares outstanding 36,225,639 60,000 41,340,639
========== ====== ==========
3
EXHIBIT 99(b)
PRO FORMA UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Three months ended
March 31, 1998
---------------------------------------------------
First Sand Ridge Consolidated
Financial Financial Pro forma
--------- ---------- ------------
Interest income
Loans, including fees $45,911 $5,861 $51,772
Investment securities
Taxable 5,484 1,426 6,910
Tax-exempt 1,070 912 1,982
------- ------ -------
Total investment interest 6,554 2,338 8,892
Interest-bearing deposits with other banks 63 2 65
Federal funds sold and securities
purchased under agreements to resell 160 42 202
------- ------ -------
Total interest income 52,688 8,243 60,931
Interest expense
Deposits 19,577 3,734 23,311
Short-term borrowings 871 184 1,055
Long-term borrowings 769 77 846
------- ------ -------
Total interest expense 21,217 3,995 25,212
------- ------ -------
Net interest income 31,471 4,248 35,719
Provision for loan losses 1,250 350 1,600
------- ------ -------
Net interest income after
provision for loan losses 30,221 3,898 34,119
Noninterest income
Service charges on deposit accounts 2,822 502 3,324
Trust income 2,798 46 2,844
Investment securities gains 44 49 93
Other 2,141 469 2,610
------- ------ -------
Total noninterest income 7,805 1,066 8,871
Noninterest expenses
Salaries and employee benefits 11,986 1,545 13,531
Net occupancy expenses 1,422 189 1,611
Furniture and equipment expenses 1,176 264 1,440
Data processing expenses 1,396 161 1,557
Deposit insurance expenses 100 18 118
State taxes 399 0 399
Amortization of intangibles 947 0 947
Other 5,166 865 6,031
------- ------ -------
Total noninterest expenses 22,592 3,042 25,634
------- ------ -------
Income before income taxes 15,434 1,922 17,356
Income tax expense 5,331 512 5,843
------- ------ -------
Net earnings $10,103 $1,410 $11,513
======= ====== =======
Net earnings per share - basic $ 0.28 $23.50 $ 0.28
======= ====== =======
Net earnings per share - diluted $ 0.28 $23.50 $ 0.28
======= ====== =======
Cash dividends declared per share $ 0.14 $ 4.50 $ 0.14
======= ====== =======
Average shares outstanding 36,421,422 60,000 41,536,422
========== ====== ==========
4
EXHIBIT 99(b)
PRO FORMA UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Twelve months ended
December 31, 1998
-----------------------------------------------------
First Sand Ridge Consolidated
Financial Financial Pro forma
--------- ---------- ------------
Interest income
Loans, including fees $193,924 $24,295 $218,219
Investment securities
Taxable 21,108 6,572 27,680
Tax-exempt 3,789 4,326 8,115
-------- ------- --------
Total investment interest 24,897 10,898 35,795
Interest-bearing deposits with other banks 272 9 281
Federal funds sold and securities
purchased under agreements to resell 418 140 558
-------- ------- --------
Total interest income 219,511 35,342 254,853
Interest expense
Deposits 80,282 16,556 96,838
Short-term borrowings 4,204 597 4,801
Long-term borrowings 3,961 898 4,859
-------- ------- --------
Total interest expense 88,447 18,051 106,498
-------- ------- --------
Net interest income 131,064 17,291 148,355
Provision for loan losses 6,077 2,050 8,127
-------- ------- --------
Net interest income after
provision for loan losses 124,987 15,241 140,228
Noninterest income
Service charges on deposit accounts 11,949 2,368 14,317
Trust income 11,975 171 12,146
Investment securities gains 804 119 923
Other 9,613 1,875 11,488
-------- ------- --------
Total noninterest income 34,341 4,533 38,874
Noninterest expenses
Salaries and employee benefits 49,798 6,532 56,330
Net occupancy expenses 5,612 781 6,393
Furniture and equipment expenses 4,832 1,027 5,859
Data processing expenses 5,616 610 6,226
Deposit insurance expenses 414 49 463
State taxes 1,744 0 1,744
Amortization of intangibles 4015 0 4,015
Other 20,708 3,682 24,390
-------- ------- --------
Total noninterest expenses 92,739 12,681 105,420
-------- ------- --------
Income before income taxes 66,589 7,093 73,682
Income tax expense 22,483 1,645 24,128
-------- ------- --------
Net earnings $ 44,106 $ 5,448 $ 49,554
======== ======= ========
Net earnings per share - basic $ 1.21 $ 90.80 $ 1.19
======== ======= ========
Net earnings per share - diluted $ 1.21 $ 90.80 $ 1.19
======== ======= ========
Cash dividends declared per share $ 0.57 $ 18.00 $ 0.57
======== ======= ========
Average shares outstanding 36,375,686 60,000 41,490,686
========== ====== ==========
5
EXHIBIT 99(b)
PRO FORMA UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Twelve months ended
December 31, 1997
-----------------------------------------------------
First Sand Ridge Consolidated
Financial Financial Pro forma
--------- ---------- ------------
Interest income
Loans, including fees $166,336 $22,642 $188,978
Investment securities
Taxable 20,011 5,107 25,118
Tax-exempt 4,986 3,391 8,377
-------- ------- --------
Total investment interest 24,997 8,498 33,495
Interest-bearing deposits with other banks 253 9 262
Federal funds sold and securities
purchased under agreements to resell 599 973 1,572
-------- ------- --------
Total interest income 192,185 32,122 224,307
Interest expense
Deposits 70,311 15,719 86,030
Short-term borrowings 5,518 69 5,587
Long-term borrowings 1,004 469 1,473
-------- ------- --------
Total interest expense 76,833 16,257 93,090
-------- ------- --------
Net interest income 115,352 15,865 131,217
Provision for loan losses 4,736 1,800 6,536
-------- ------- --------
Net interest income after
provision for loan losses 110,616 14,065 124,681
Noninterest income
Service charges on deposit accounts 10,398 2,145 12,543
Trust income 9,905 145 10,050
Investment securities gains 54 85 139
Other 6,620 1,476 8,096
-------- ------- --------
Total noninterest income 26,977 3,851 30,828
Noninterest expenses
Salaries and employee benefits 42,385 5,602 47,987
Net occupancy expenses 5,025 700 5,725
Furniture and equipment expenses 4,374 1,028 5,402
Data processing expenses 4,960 582 5,542
Deposit insurance expenses 375 47 422
State taxes 1,718 0 1,718
Amortization of intangibles 1,326 0 1,326
Other 17,514 3,270 20,784
-------- ------- --------
Total noninterest expenses 77,677 11,229 88,906
-------- ------- --------
Income before income taxes 59,916 6,687 66,603
Income tax expense 19,608 1,694 21,302
-------- ------- --------
Net earnings $ 40,308 $ 4,993 $ 45,301
======== ======= ========
Net earnings per share - basic $ 1.11 $ 83.21 $ 1.09
======== ======= ========
Net earnings per share - diluted $ 1.10 $ 83.21 $ 1.08
======== ======= ========
Cash dividends declared per share $ 0.52 $ 17.00 $ 0.52
======== ======= ========
Average shares outstanding 36,402,415 60,000 41,517,415
========== ====== ==========
6
EXHIBIT 99(b)
PRO FORMA UNAUDITED CONSOLIDATED STATEMENTS OF EARNINGS
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
Twelve months ended
December 31, 1996
-----------------------------------------------------
First Sand Ridge Consolidated
Financial Financial Pro forma
--------- ---------- ------------
Interest income
Loans, including fees $144,941 $21,149 $166,090
Investment securities
Taxable 19,330 4,689 24,019
Tax-exempt 6,047 2,759 8,806
-------- ------- --------
Total investment interest 25,377 7,448 32,825
Interest-bearing deposits with other banks 450 19 469
Federal funds sold and securities
purchased under agreements to resell 507 316 823
-------- ------- --------
Total interest income 171,275 28,932 200,207
Interest expense
Deposits 65,907 14,052 79,959
Short-term borrowings 3,521 271 3,792
Long-term borrowings 279 149 428
-------- ------- --------
Total interest expense 69,707 14,472 84,179
-------- ------- --------
Net interest income 101,568 14,460 116,028
Provision for loan losses 3,433 1,440 4,873
-------- ------- --------
Net interest income after
provision for loan losses 98,135 13,020 111,155
Noninterest income
Service charges on deposit accounts 9,182 1,694 10,876
Trust income 8,278 106 8,384
Investment securities gains (8) (28) (36)
Other 4,645 1,505 6,150
-------- ------- --------
Total noninterest income 22,097 3,277 25,374
Noninterest expenses
Salaries and employee benefits 37,586 4,832 42,418
Net occupancy expenses 4,790 614 5,404
Furniture and equipment expenses 3,911 882 4,793
Data processing expenses 4,773 553 5,326
Deposit insurance expenses 2889 12 2,901
State taxes 1,706 0 1,706
Amortization of intangibles 657 0 657
Other 14,949 2,606 17,555
-------- ------- --------
Total noninterest expenses 71,261 9,499 80,760
-------- ------- --------
Income before income taxes 48,971 6,798 55,769
Income tax expense 15,031 1,914 16,945
-------- ------- --------
Net earnings $ 33,940 $ 4,884 $ 38,824
======== ======= ========
Net earnings per share - basic $ 0.96 $ 81.39 $ 0.96
======== ======= ========
Net earnings per share - diluted $ 0.96 $ 81.39 $ 0.96
======== ======= ========
Cash dividends declared per share $ 0.46 $ 16.00 $ 0.46
======== ======= ========
Average shares outstanding 35,359,522 60,000 40,474,522
========== ====== ==========
7
EXHIBIT 99(b)
SAND RIDGE FINANCIAL CORPORATION
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
General
Reclassification of information has been made at times to provide consistency in
the presentation of financial information for the corporations involved. These
reclassifications are not material in nature and had no effect on net earnings.
(A) First Financial exchanged 5,115,000 shares of First Financial Common
Stock for all the 60,000 outstanding shares of Sand Ridge Financial
Corporation Common Stock. The exchange ratio was 85.25 shares of First
Financial Common Stock for each share of Sand Ridge Financial
Corporation Common Stock which was calculated by dividing 5,115,000 by
60,000 which was the aggregate number of shares of Sand Ridge Financial
Corporation's Common Stock issued and outstanding immediately prior to
the consummation.
(B) First Financial Common Stock and Sand Ridge Financial Common Stock do
not have par values. Sand Ridge Financial Common Stock, however, has a
stated value of $10.00 per share, while First Financial Common Stock
does not have a stated value. Since First Financial Common Stock does
not have a stated value, its capital accounts do not include an
"additional paid-in capital" or "surplus" account. As a result, Sand
Ridge Financial Corporation's additional paid-in capital was
transferred to its "common stock" account in the "consolidated
pro-forma column, as shown in the table below:
Common stock $ 600 $ 4,600 $5,200
Surplus 4,600 (4,600) 0
------ ------- ------
Total common stock and surplus $5,200 $ 0 $5,200
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