UNION and KING GEORGE Exhibit 99.2
Pro Forma Condensed Balance Sheets
(Unaudited)
June 30, 1996
--------------------------------------------------
King Pro Forma Pro Forma
Union George Adjustments Combined
(Dollars in thousands)
Assets
Cash and due from banks $ 15,451 $ 1,585 $ 17,036
Interest-bearing deposits in other banks 418 2 420
Federal funds sold 2,808 3,785 6,593
Securities 127,918 9,737 137,655
Loans, net of unearned income 313,490 32,837 346,327
Less allowance for loan losses 3,953 324 4,277
--------- --------- ---------
Net loans 309,537 32,513 - 342,050
Premises and equpiment, net 11,405 615 12,020
Other assets 14,149 1,322 15,471
--------- --------- ---------
Total assets $481,686 $ 49,559 $ - $ 531,245
========== ========= ========= =========
Liabilities
Deposits
Non-interest-bearing demand deposits $ 47,459 $ 5,896 $ 53,355
Interest-bearing deposits 339,423 37,917 377,340
--------- --------- ---------
Total deposits 386,882 43,813 - 430,695
Short-term borrowings 29,927 - 29,927
Long-term borrowings 11,200 - 11,200
Other liabilities 2,700 945 3,645
--------- --------- ---------
Total liabilities 430,709 44,758 - 475,467
--------- --------- ---------
Stockholders' equity
Preferred stock - - - -
Common stock, $4 par value 13,168 - 1,100 (1) 14,268
Common stock, $6 par value - 300 (300)(1) -
Surplus 674 300 (300)(1) 674
Retained earnings 37,427 4244 (500)(1) 41,171
Unrealized gains (losses) on securities available
for sale, net of taxes (292) (43) - (335)
--------- --------- ------------ ---------
Total stockholders' equity 50,977 4,801 - 55,778
--------- --------- ------------- ---------
Total liabilities and stockholders' equity $ 481,686 $ 49,559 $ - $ 531,245
========== ======== ============= ===========
- ---------------------------------
See Notes to Pro Forma Condensed Financial Information
1
UNION and KING GEORGE
Pro Forma Condensed Statement of Income
For the Year Ended December 31, 1995
(Unaudited)
King Pro Forma
Union George Combined
Interest income:
Interest and fees on loans $ 26,583 $ 2,978 $ 29,561
Interest on securities 7,560 603 8,163
Federal funds sold 295 32 327
Interest-bearing deposits in other banks 32 - 32
---------- -------- ----------
Total interest income 34,470 3,613 $ 38,083
Interest expense:
Interest on deposits 14,806 1,559 16,365
Interest on other borrowings 1,476 14 1,490
---------- -------- ----------
Total interest expense 16,282 1,573 17,855
---------- -------- ----------
Net interest income 18,188 2,040 $ 20,228
Provision for loan losses (note 2) 574 403 977
---------- -------- ----------
Net interest income after provision
for loan losses 17,614 1,637 19,251
---------- -------- ----------
Other income:
Service fees 2,007 136 2,143
Losses on sales of securities available for sale (9) (7) (16)
Other operating income 444 47 491
---------- -------- ----------
Total other income 2,442 176 2,618
---------- -------- ----------
Other expenses:
Salaries and employee benefits 6,244 550 6,794
Occupancy expenses 1,618 108 1,726
FDIC assessments 406 43 449
Other operating expenses 3,631 437 4,068
---------- -------- ----------
Total other expenses 11,899 1,138 13,037
---------- -------- ----------
Income before income taxes 8,157 675 8,832
Income tax expense 1,910 169 2,079
---------- -------- ----------
Net income $ 6,247 $ 506 $ 6,753
========== ======== ==========
Per Share Data:
Net income per share of common stock $ 1.91 $ 10.11 $ 1.91
Cash dividends per share of common stock $ 0.56 $ 2.30 $ 0.56
Average common shares outstanding 3,268,033 50,000 3,543,033
- ----------------------------------------------------
See Notes to Pro Forma Condensed Financial Information
UNION and KING GEORGE
Pro Forma Condensed Statement of Income
For the Year Ended December 31, 1994
(Unaudited)
King Pro Forma
Union George Combined
Interest income:
Interest and fees on loans $ 21,244 $ 2,591 $ 23,835
Interest on securities 7,173 671 7,844
Federal funds sold 156 53 209
Interest-bearing deposits in other banks 39 - 39
---------- -------- ----------
Total interest income 28,612 3,315 $ 31,927
Interest expense:
Interest on deposits 11,025 1,380 12,405
Interest on other borrowings 684 - 684
---------- -------- ----------
Total interest expense 11,709 1,380 13,089
---------- -------- ----------
Net interest income 16,903 1,935 $ 18,838
Provision for loan losses (note 2) 597 505 1,102
---------- -------- ----------
Net interest income after provision
for loan losses 16,306 1,430 17,736
Other income:
Service fees 1784 113 1,897
Losses on sales of securities available for sale (14) - (14)
Other operating income 1,004 62 1,066
---------- -------- ----------
Total other income 2,774 175 2,949
---------- -------- ----------
Other expenses:
Salaries and employee benefits 5408 464 5,872
Occupancy expenses 1428 96 1,524
FDIC assessments 730 29 759
Other operating expenses 3,465 453 3,918
---------- -------- ----------
Total other expenses 11,031 1,042 12,073
---------- -------- ----------
Income before income taxes 8,049 563 8,612
Income tax expense 1,774 125 1,899
---------- -------- ----------
Net income $ 6,275 $ 438 $ 6,713
========== ========= ===========
Per Share Data:
Net income per share of common stock $ 1.93 $ 8.76 $ 1.90
Cash dividends per share of common stock $ 0.52 $ 2.25 $ 0.52
Average common shares outstanding 3,258,035 50,000 3,533,035
- ------------------------------------------------------------
See Notes to Pro Forma Condensed Financial Information
UNION and KING GEORGE
Pro Forma Condensed Statement of Income
For the Year Ended December 31, 1993
(Unaudited)
King Pro Forma
Union George Combined
Interest income:
Interest and fees on loans $ 19,855 $ 2,738 $ 22,593
Interest on securities 6,811 487 7,298
Federal funds sold 275 178 453
Interest-bearing deposits in other banks 53 - 53
---------- -------- ----------
Total interest income 26,994 3,403 $ 30,397
Interest expense:
Interest on deposits 11,018 1,670 12,688
Interest on other borrowings 321 - 321
---------- -------- ----------
Total interest expense 11,339 1,670 13,009
---------- -------- ----------
Net interest income 15,655 1,733 $ 17,388
Provision for loan losses (note 2) 1,220 351 1,571
---------- -------- ----------
Net interest income after provision
for loan losses 14,435 1,382 15,817
---------- -------- ----------
Other income:
Service fees 1666 115 1,781
Losses on sales of securities available for sale (69) 1 (68)
Other operating income 298 50 348
---------- -------- ----------
Total other income 1,895 166 2,061
---------- -------- ----------
Other expenses:
Salaries and employee benefits 4939 356 5,295
Occupancy expenses 1250 92 1,342
FDIC assessments 718 61 779
Other operating expenses 2,968 450 3,418
---------- -------- ----------
Total other expenses 9,875 959 10,834
---------- -------- ----------
Income before income taxes 6,455 589 7,044
Income tax expense 1,301 228 1,529
---------- -------- ----------
Net income $ 5,154 $ 361 $ 5,515
========== ========= ==========
Per Share Data:
Net income per share of common stock $ 1.58 $ 7.23 $ 1.56
Cash dividends per share of common stock $ 0.45 $ 2.20 $ 0.45
Average common shares outstanding 3,255,630 50,000 3,530,630
- ------------------------------------------------------------
See Notes to Pro Forma Condensed Financial Information
Union Bankshares Corporation and King George State Bank
Notes to Pro Forma Condensed Financial Information
(Unaudited)
a) The pro forma information presented is not necessarily indicative of the
results of operations or the financial position that would have resulted had
the KGSB Merger been consummated at the beginning of the periods indicated,
nor is it necessarily indicative of the results of operations in future
periods or the future financial position of the combined entities.
b) It is assumed that the KGSB Merger will be accounted for on a pooling of
interests accounting basis and, accordingly, the related pro forma
adjustments have been calculated using the exchange ratio, whereby Union
will issue 5.5 share of Union Common Stock for each share of KGSB Common
Stock.
As a result, information was appropriately adjusted for the KGSB Merger by
the (I) addition of 275,000 shares of Union Common Stock amounting to
$1,100,000; (ii) elimination of 50,000 shares of KGSB Common Stock amounting
to $300,000; and (iii) recordation of the remaining amount of $800,000 as a
decrease in capital surplus ($300,000) and retained earnings ($500,000) at
June 30, 1996.
c) Per share data has been computed based on the combined historical net income
applicable to common shareholders of Union and KGSB using the historical
weighted average shares outstanding of Union Common Stock and the weighted
average shares, adjusted to equivalent shares of Union Common Stock, of
KGSB, as of the earliest period presented.