UNION and KING GEORGE Exhibit 99.2
Pro Forma Condensed Balance Sheets
(Unaudited)
June 30, 1996
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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
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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
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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
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Total liabilities 430,709 44,758 - 475,467
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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
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See Notes to Pro Forma Condensed Financial Information
1
UNION and KING GEORGE
Pro Forma Condensed Statement of Income
For the Six Months June 30, 1996
(Unaudited)
King Pro Forma
Union George Combined
Interest income:
Interest and fees on loans $ 14,289 $ 1,541 $ 15,830
Interest on securities 3,753 259 4,012
Federal funds sold 91 53 144
Interest-bearing deposits in other banks 4 -- 4
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Total interest income 18,137 1,853 19,990
Interest expense:
Interest on deposits 7,835 817 8,652
Interest on other borrowings 867 -- 867
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Total interest expense 8,702 817 9,519
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Net interest income 9,435 1,036 10,471
Provision for loan losses (note 2) 231 90 321
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Net interest income after provision
for loan losses 9,204 946 10,150
----------- ------------ -----------
Other income:
Service fees 1,218 58 1,276
Losses on sales of securities available for sale (103) -- (103)
Nontaxable life insurance proceeds -- 262 262
Other operating income 310 28 338
----------- ------------ -----------
Total other income 1,425 348 1,773
----------- ------------ -----------
Other expenses:
Salaries and employee benefits 3,387 273 3,660
Occupancy expenses 821 80 901
FDIC assessments 2 1 3
Other operating expenses 1,960 230 2,190
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Total other expenses 6,170 584 6,754
----------- ------------ -----------
Income before income taxes 4,459 710 5,169
Income tax expense 984 132 1,116
----------- ------------ -----------
Net income $ 3,475 $ 578 $ 4,053
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Per Share Data:
Net income per share of common stock $ 0.55 $ 11.56 $ 1.14
Cash dividends per share of common stock $ 0.30 $ 2.36 $ 0.30
Average common shares outstanding 3,292,049 50,000 3,567,049
See Notes to Pro Forma Condensed Financial Information
Union Bankshares Corporation and King George State Bank
Notes to Pro Forma Interim Condensed Financial Information
(Unaudited)
a) The pro forma interim 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.