x |
QUARTERLY
REPORT UNDER SECTION 13 AND 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 |
o |
TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
1934 |
Georgia |
58-2413468 | |
(State
or other jurisdiction of Incorporation
or organization) |
(IRS
Employer Identification
No.) |
PART
I - FINANCIAL INFORMATION |
Page
No. |
3 | |
4 | |
5 | |
6 | |
10 | |
13 | |
14 | |
14 | |
14 | |
14
| |
14 | |
14 |
and
Subsidiaries | |||||||
Consolidated
Balance Sheets (unaudited) | |||||||
(Dollars
in thousands) | |||||||
March
31,2005 |
|
December
31, 2004 |
|||||
Assets |
|||||||
Cash
and due from banks |
$ |
5,004 |
$ |
5,515 |
|||
Federal
funds sold |
-- |
1,363 |
|||||
Securities
available for sale |
41,435 |
42,518 |
|||||
Restricted
equity securities |
2,339 |
2,019 |
|||||
Loans |
149,566 |
127,185 |
|||||
Less
allowance for loan losses |
1,629 |
1,528 |
|||||
Loans,
net |
147,937 |
125,657 |
|||||
Premises
and equipment |
6,103 |
6,150 |
|||||
Goodwill |
2,334 |
2,334 |
|||||
Core
deposit premium |
318 |
330 |
|||||
Other
assets |
10,079 |
9,404 |
|||||
Total
Assets |
$ |
215,549 |
$ |
195,290 |
|||
Liabilities
and Shareholders' Equity |
|||||||
Deposits |
|||||||
Non-interest
bearing |
$ |
18,996 |
$ |
16,316 |
|||
Interest
bearing |
132,008 |
122,723 |
|||||
Total
deposits |
151,004 |
139,039 |
|||||
Other
borrowings |
34,076 |
25,153 |
|||||
Guaranteed
preferred beneficial interests in junior subordinated
debentures |
4,124 |
4,124 |
|||||
Other
liabilities |
757 |
1,142 |
|||||
Total
Liabilities |
189,961 |
169,458 |
|||||
Shareholders'
equity |
|||||||
Preferred
stock, par value not stated; 2,000,000 shares authorized; |
|||||||
no
shares issued |
$ |
-
- |
$ |
-
- |
|||
Common
stock, $1.00 par value, 10,000,000 shares authorized; |
|||||||
2,967,761
and 2,946,476 shares issued |
2,968 |
2,946 |
|||||
Capital
surplus |
22,173 |
22,046 |
|||||
Retained
earnings |
1,743 |
1,589 |
|||||
Accumulated
other comprehensive loss |
(876 |
) |
(329 |
) | |||
Less
cost of treasury stock, 58,921 shares |
(420 |
) |
(420 |
) | |||
Total
shareholders' equity |
25,588 |
25,832 |
|||||
Total
Liabilities and Shareholders' Equity |
$ |
215,549 |
$ |
195,290 |
and
Subsidiaries
Consolidated
Statements of Income (unaudited)
Three
months ended March 31, 2005 and 2004
(Dollars
in thousands, except earnings per share) | |||||||
2005 |
|
2004 |
|||||
Interest
Income |
|||||||
Loans |
$ |
2,367 |
$ |
2,006 |
|||
Investment
securities |
462 |
331 |
|||||
Deposits
in banks |
6 |
1 |
|||||
Federal
funds sold |
24 |
10 |
|||||
Total
interest income |
2,859 |
2,348 |
|||||
Interest
expense |
|||||||
Deposits |
701 |
517 |
|||||
Other
borrowed money |
233 |
170 |
|||||
Total
interest expense |
934 |
687 |
|||||
Net
interest income |
1,925 |
1,661 |
|||||
Provision
for loan losses |
180 |
15 |
|||||
Net
interest income after provision for loan losses |
1,745 |
1,646 |
|||||
Other
income |
|||||||
Service
charges on deposit accounts |
216 |
186 |
|||||
Financial
service fees |
30 |
21 |
|||||
Mortgage
origination fees |
34 |
35 |
|||||
Loss
on sale of foreclosed properties |
-- |
(51 |
) | ||||
Other
operating income |
99 |
34 |
|||||
Total
other income |
379 |
225 |
|||||
Other
expenses |
|||||||
Salaries
and employee benefits |
861 |
752 |
|||||
Equipment
and occupancy expenses |
277 |
218 |
|||||
Marketing
expenses |
55 |
55 |
|||||
Data
processing expenses |
146 |
120 |
|||||
Administrative
expenses |
164 |
110 |
|||||
Legal
and professional |
102 |
56 |
|||||
Directors
fees |
63 |
58 |
|||||
Amortization
of intangible assets |
12 |
20 |
|||||
Stationery
and supply expense |
44 |
42 |
|||||
Other
operating expenses |
93 |
115 |
|||||
Total
other expense |
1,817 |
1,546 |
|||||
Income
before income taxes |
307 |
325 |
|||||
Income
tax expense |
93 |
103
|
|||||
Net
income |
$ |
214 |
$ |
222 |
|||
Basic
earnings per share (weighted
average shares used in calculation: 2,896,658 in 2005 and 1,714,196 in
2004) |
$ |
.07 |
$ |
.13 |
|||
Diluted
earnings per share (weighted
average shares used in calculation: 3,071,458 in 2005 and 1,924,240 in
2004) |
$ |
.07 |
$ |
.12 |
and
Subsidiaries
Consolidated
Statements of Comprehensive Income (unaudited) | |||||||
Three
months ended March 31, 2005 and 2004
(Dollars
in thousands) | |||||||
2005 |
2004 |
||||||
Net
Income |
$ |
214 |
$ |
222 |
|||
Other
comprehensive income (loss) |
|||||||
Net
unrealized holding gains (losses) arising during the period, net of tax
expense (benefit) of ($282,000) in 2005 and $168,000 in
2004. |
(547 |
) |
331 |
||||
Comprehensive
income (loss) |
$ |
(333 |
) |
$ |
553 |
and
Subsidiaries
Consolidated
Statements of Cash Flows (unaudited)
Three
Months ended March 31, 2005 and 2004
(Dollars
in thousands) |
2005 |
2004 |
||||||
Cash
Flows from operating activities: |
|||||||
Net
income |
$ |
214 |
$ |
222 |
|||
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|||||||
Depreciation |
116 |
98 |
|||||
Amortization
of core deposit premiums |
12 |
31 |
|||||
Provision
for loan losses |
180 |
15 |
|||||
Net
gain on sale of investments available for sale |
-
- |
(2 |
) | ||||
Provision
for deferred taxes |
11 |
46 |
|||||
(Increase)
decrease in interest receivable |
(122 |
) |
71 |
||||
Other
operating activities |
(613 |
) |
(1,522 |
) | |||
Net
cash used in operating activities |
(202 |
) |
(1,041 |
) | |||
Cash
Flows from Investing Activities: | |||||||
Purchase
of property and equipment |
(69 |
) |
(302 |
) | |||
Net
(increase) decrease in federal funds sold |
1,363 |
(11,106 |
) | ||||
Net
increase in loans |
(22,460 |
) |
(1,535 |
) | |||
Proceeds
from sales of securities available for sale |
-
- |
3.753 |
|||||
Proceeds
from maturities of securities available for sale |
342 |
1,466 |
|||||
Purchase
of securities available for sale |
(407 |
) |
(2,012 |
) | |||
Net
increase of bank owned life insurance |
(56 |
) |
-
- |
||||
Adjustment
to acquisition |
-
- |
(49 |
) | ||||
Net
cash used in investing activities |
(21,287 |
) |
(9,785 |
) | |||
Cash
Flows from Financing Activities: | |||||||
Net
increase in deposits |
11,965 |
12,318 |
|||||
Increase
in federal funds purchased |
3,015 |
-
- |
|||||
Net
increase in other borrowings |
5,908 |
1,158 |
|||||
Dividends
paid |
(59 |
) |
(35 |
) | |||
Proceeds
from exercise of stock warrants |
149 |
195 |
|||||
Net
cash provided by financing activities |
20,978 |
13,636 |
|||||
Net
increase (decrease) in cash |
(511 |
) |
2,810 |
||||
Cash
and due from banks at beginning of period |
5,515 |
4,285 |
|||||
Cash
and due from banks at end of period |
$ |
5,004 |
$ |
7,095 |
|||
Supplemental
Disclosure | |||||||
Cash
paid for interest |
916 |
$ |
701 |
||||
Income
taxes |
-
- |
$ |
30 |
||||
Non-Cash
Transaction | |||||||
Unrealized
losses on securities available for sale |
$ |
829 |
$ |
399 |
Quarter
Ended March 31, |
|||||||
2005 |
2004 |
||||||
Net
income, as reported |
$ |
214,000 |
$ |
223,000 |
|||
Deduct:
Total stock-based employee compensation |
|||||||
expense
determined under fair value based |
|||||||
method
for all awards, net of related tax effects |
(22,000 |
) |
(23,000 |
) | |||
Pro
forma net income |
$ |
192,000 |
$ |
200,000 |
|||
Earnings
per share: |
|||||||
Basic
- as reported |
$ |
.07 |
$ |
.13 |
|||
Basic
- pro forma |
$ |
.07 |
$ |
.11 |
|||
Diluted
- as reported |
$ |
.07 |
$ |
.12 |
|||
Diluted
- pro forma |
$ |
.06 |
$ |
.10 |
March
31, 2005 |
|
December
31, 2004 |
|||||
Interest
bearing demand and savings |
$ |
49,473,000 |
$ |
47,865,000 |
|||
Certificates
of deposit in denominations of $100,000 or greater |
30,517,000 |
27,335,000 |
|||||
Other
Certificates of deposit |
52,018,000 |
47,523,000 |
|||||
Total |
$ |
132,008,000 |
$ |
122,723,000 |
Tier
1 Capital to Risk Weighted Assets, actual |
17.70 |
% | ||
Tier
1 Capital minimum requirement |
4.00 |
% | ||
|
||||
Total
Capital to Risk Weighted Assets, actual |
18.70 |
% | ||
Total
Capital minimum requirement |
8.00 |
% | ||
Tier
1 Leverage Ratio |
13.30 |
% | ||
Tier
1 Leverage Ratio minimum requirement |
4.00 |
% |
ITEM 1. |
Legal
Proceedings |
None | |
ITEM 2. |
Unregistered
Sales of Equity Securities and Use of Proceeds |
|
(a)
None |
|
(b)
None |
|
(c)
None |
ITEM 3. |
DEFAULTS
UPON SENIOR SECURITIES |
None | |
ITEM 4. |
Submission
of Matters to a Vote of Security Holders |
None | |
ITEM 5. |
OTHER
INFORMATION |
None | |
Item 6. |
Exhibits
and Reports on Form 8-K |
(a) |
Reports
on Form 8-K |
(1) |
Form
8-K filed on February 1, 2005 regarding 2004 annual
earnings. |
(b) |
Exhibits |
May
13, 2005 |
/s/
Robert E. Lee |
||
Date |
Robert
E. Lee, |
||
President |
|||
May
13, 2005 |
/s/
David J. Baranko |
||
Date |
David
J. Baranko |
||
Chief
Financial Officer (Duly authorized officer and principal financial /
accounting officer ) |