-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MT80EvHyIebKwtVHnaRXdFwNCWnRUgkzXAFci53isJ8R9MPuUkAFHnQ5YcNATZGN qhrrm48uBIz2LiirC0COeA== 0001157523-03-005499.txt : 20031017 0001157523-03-005499.hdr.sgml : 20031017 20031017085940 ACCESSION NUMBER: 0001157523-03-005499 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031016 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031017 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CCBT FINANCIAL COMPANIES INC CENTRAL INDEX KEY: 0001074972 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 043437708 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-72565 FILM NUMBER: 03944864 BUSINESS ADDRESS: STREET 1: 495 STATION AVENUE CITY: SOUTH YARMOUTH STATE: MA ZIP: 02601 BUSINESS PHONE: 5087608323 MAIL ADDRESS: STREET 1: 495 STATION AVENUE CITY: SOUTH YARMOUTH STATE: MA ZIP: 02601 FORMER COMPANY: FORMER CONFORMED NAME: CCBT BANCORP INC DATE OF NAME CHANGE: 19981209 8-K 1 a4495013.txt CAPE COD BANK 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 ---------------------------------- Date of Report (Date of earliest event reported): October 16, 2003 CCBT FINANCIAL COMPANIES, INC. ------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) Massachusetts 000-25381 04-3437708 (State or other jurisdiction (Commission file number) (IRS employer of incorporation) identification no.) 495 Station Avenue, South Yarmouth, Massachusetts 02664 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) (508) 394-1300 -------------- (Registrant's telephone number, including area code) Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (c) Exhibits Exhibit 99.1 Press Release dated October 16, 2003. Item 12. Results Of Operations And Financial Condition. On October 16, 2003, CCBT Financial Companies, Inc., the bank holding company for Cape Cod Bank and Trust Company, N.A., issued a press release announcing its 2003 third quarter results. The press release, attached as Exhibit 99.1, is incorporated by reference herein. SIGNATURES 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. CCBT FINANCIAL COMPANIES, INC. Date: October 17, 2003 /s/ Phillip W. Wong -------------------------------------- Phillip W. Wong Executive Vice President and Chief Financial Officer Exhibit Index 99.1 Press release, dated October 16, 2003 EX-99 3 a4495013ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 CCBT Financial Companies, Inc. Report 2003 Third Quarter and Year-to-Date Earnings SOUTH YARMOUTH, Mass.--(BUSINESS WIRE)--Oct. 16, 2003--CCBT Financial Companies, Inc. (NASDAQ: CCBT) Chief Executive Officer and President Stephen B. Lawson announced third quarter 2003 earnings of $2.3 million, or $.27 per share, as compared to $3.9 million, or $.45 per share, earned in the same prior year period. For the nine months ended September 30, 2003, the Company reported earnings of $5.2 million, or $.61 per share, as compared to $13.5 million, or $1.56 per share in the same prior year period. Mr. Lawson commented, "The three and nine month earnings in 2003 have been negatively affected by economic factors and several significant events thus far this year. The historic lows in interest rates and mortgage rates, in particular, have substantially accelerated pre-payments on both residential mortgage loans and investment securities backed by housing collateral, resulting in reinvestment of principal proceeds at much lower rates. This has also accelerated the write-off of deferred costs and mortgage servicing rights on residential mortgage loans and hastened the amortization of premiums paid on mortgage related investment securities. During the third quarter, we extended the hours of operations in our full service financial offices, opened a financial center in Mashpee Commons, worked toward completing our Pine Hills office and closed nine transaction locations in Stop & Shop supermarkets. The write-down of leasehold improvements and expenses incurred, in these efforts, are reflected in non-interest income-Other Loss and in the non-interest expense categories. Our nine-month earnings results also reflect the impact of these factors and events, as well as the previously disclosed settlement of the REIT tax issue with the Massachusetts Department of Revenue and losses from the impairment and sale of investment securities. Net interest income reported for both the quarter and year-to-date have decreased from the combination of earning asset yields having declined faster than our ability to lower funding costs, the accelerated write-down of residential mortgage deferred costs and the accelerated amortization of premiums on investment securities. The third quarter returns on average equity and assets, respectively, were 8.09% and 0.69% for 2003 as compared to 12.87% and 1.05% for the same period in 2002. For the nine months ended September 30, 2003, returns on average equity and assets, respectively, were 6.13% and 0.52%, as compared to 15.25% and 1.26%, in the 2002 comparable period. "In 2003, our focus has been on upgrading, expanding and realigning our full service office locations, growing our sales associate staff and intensifying their training and education to increase non-interest income through growing fee-based revenue. All of CCBT's offices are now capable of providing our customers with the full range of financial offerings including banking, investment, brokerage, insurance, tax, estate and trust services and the number of staff attaining financial designations, including CPA, CFA, CFP, and brokerage and insurance licensing, is increasing steadily. These efforts have been successful as measured by the increase in income from financial service products (financial advisory, brokerage and insurance sales) from $2.7 to $3.1 million or 15.2% for the comparative quarters and from $7.9 to $9.3 million or 18.3% for the comparative nine months, after excluding the $398,000 adjustment in the second quarter of 2002 for the one-time recognition of deferred insurance commissions. Our strategy of providing a wide range of financial services to meet all the needs of our clients from under one roof will continue to be our foremost goal. "Recent economic data points to an improvement in the U.S. economy, and recent increases in mortgage rates should contribute to stabilizing net interest spreads and margins at current levels. This has been a difficult year due to the results of historically low interest rates and our continued realignment as we refocus our business to include financial services. However, we believe that the worst is behind us and look forward to improving earnings in the next quarter and beyond." Total assets have decreased to $1.35 billion at September 30, 2003 from $1.62 billion at September 30, 2002 driven by reductions in residential mortgage loans and housing-related investment securities. In this low rate environment, residential mortgage borrowers have refinanced from adjustable-rate to fixed-rate mortgages, which are sold to mitigate future interest rate risk. While residential mortgage loans have decreased $144 million, commercial and home equity loans were up $31 million and $15 million, or 7.4% and 23.6%, respectively, from a year ago. The quality of the loan portfolio remains strong as total non-performing assets declined from $3.5 million to $3.3 million at September 30, 2002 and 2003, respectively. The allowance for loan losses was $12.8 million on September 30, 2003, up modestly from $12.4 million a year ago. As loans and investments have declined, borrowings have decreased $250 million. This funding decline has been partially offset by deposit increases of $56 million or 5.7% from the September 30, 2002 levels. The deposit growth reflects organic growth in core deposits as the year-round Cape Cod region population continues to increase. The capital to assets ratio stands at 8.4% and 7.4%, respectively, at September 30, 2003 and 2002. We recorded positive results in the growth of our commercial loans and core deposits while maintaining asset quality and a strong capital position. CCBT Financial Companies, Inc. recently declared a $0.19 quarterly dividend to be paid October 31, 2003 to stockholders of record on October 20, 2003. CCBT Financial Companies, Inc. is a bank holding company with total assets of $1.3 billion on September 30, 2003. Its subsidiary, Cape Cod Bank and Trust Company, N.A., owns CCBT Brokerage Direct and a 51% interest in Murray & MacDonald Insurance Services, Inc. The Company offers a wide range of financial products and services including deposit services, loans, municipal services, insurance, trust, investments, tax and retirement services to individuals, municipalities and businesses. To find out more about CCBT Financial Companies, Inc. and our services, please visit our web site at www.ccbt.com or visit one of our twenty-six full service office locations. This report may contain statements that are not historical facts and are considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things, future financial results of the Company. You should not rely on forward-looking statements because the Company's actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, changes in prevailing interest rates and increases in mortgage prepayments which may reduce interest margin, changes in national and local economic conditions and equity and fixed income market fluctuations. Reference is made to the Company's filings on Forms 10-K with the Securities and Exchange Commission for factors that could cause actual results to differ materially from those anticipated. Our Form 10-Q filing with the SEC, which will be available on our web site, will contain more detailed financial information. ASSETS ($000) 09/30/03 12/31/02 09/30/02 Cash & cash equivalents 99,214 60,798 101,919 Securities available for sale 356,567 510,837 565,990 Securities held to maturity 51,767 0 0 Other securities 24,738 24,738 24,738 Construction loans 98,672 99,544 102,369 Commercial mortgages 296,984 283,458 280,808 Commercial loans 86,399 84,882 83,235 Residential mortgages 206,648 262,095 335,709 Home equity loans 78,927 65,794 63,865 Other consumer loans 4,582 5,629 5,992 Total portfolio loans 772,212 801,402 871,978 Loans held for sale 7,997 37,332 14,084 Loan loss reserve (12,771) (12,384) (12,422) Goodwill 803 803 803 Other intangibles 4,756 5,511 6,045 Total intangible assets 5,559 6,314 6,848 Mortgage servicing rights 2,826 2,088 1,729 Real estate owned 1,500 1,500 1,500 Other assets 43,304 49,258 44,779 Total assets 1,352,913 1,481,883 1,621,143 LIABILITIES ($000) Savings/NOW accounts 289,417 259,587 251,618 Money market deposits 318,605 294,295 311,458 Other consumer time 113,623 121,961 127,223 Time deposits over $100,000 41,247 37,344 38,946 Short-term borrowings 57,322 227,091 298,491 Long-term borrowings 141,898 170,750 150,918 Total interest-bearing liab. 962,112 1,111,028 1,178,654 Demand deposits 266,927 229,033 244,643 Minority interest 316 234 310 Other liabilities 9,788 23,141 78,126 Total liabilities 1,239,143 1,363,436 1,501,733 EQUITY ($000) Common equity 113,770 118,447 119,410 Net unrealized loss on AFS securities (2,039) (1,018) (713) Book value per share 13.51 13.79 13.90 Common shares issued 9,061,064 9,061,064 9,061,064 Treasury shares (640,866) (470,266) (471,766) Common shares outstanding 8,420,198 8,590,798 8,589,298 INCOME STATEMENT ($000) Third Third YTD 03 YTD 02 Quarter 03 Quarter 02 Interest income 13,951 19,623 45,015 58,537 Interest expense 4,055 6,884 13,719 20,699 Net interest income 9,896 12,739 31,296 37,838 Net interest income (FTE) 9,965 12,824 31,526 38,105 Loan loss provision 0 0 0 0 (Loss) gain on securities 0 538 (1,692) 3,179 Financial advisor fees 1,884 1,676 5,824 5,142 Service charge on deposits 590 553 1,805 1,679 Gain on sale of loans 907 571 3,072 1,647 Other noninterest income 2,412 2,491 7,610 7,670 Total noninterest income 5,793 5,829 16,619 19,317 Employee salaries and benefits 6,450 7,249 18,798 20,412 Occupancy and equipment 1,400 1,596 4,587 4,659 Foreclosed property expense 19 (4) 54 61 Amortization of intangibles 322 324 967 972 Deposit insurance expense 41 41 124 123 Other noninterest expense 3,668 3,423 10,876 10,445 Total noninterest expense 11,900 12,629 35,406 36,672 Net income before taxes 3,789 5,939 12,509 20,483 Tax provision 1,514 2,034 7,307 6,996 Net income 2,275 3,905 5,202 13,487 Basic EPS 0.27 0.45 0.61 1.56 Diluted EPS 0.27 0.45 0.61 1.56 Dividends per common share 0.19 0.19 0.57 0.57 Avg shares for basic EPS 8,420 8,611 8,478 8,621 Avg shares for diluted EPS 8,449 8,646 8,501 8,658 AVE. BALANCE SHEET ($000) Third Third YTD 03 YTD 02 Quarter 03 Quarter 02 Taxable securities 438,879 512,940 448,637 457,820 Tax-exempt securities 20,817 18,111 22,274 18,346 Total portfolio loans 764,773 887,214 775,357 882,709 Loans held for sale 19,705 6,507 14,601 5,162 Other earning assets 0 0 0 0 Total earning assets 1,244,174 1,424,772 1,260,869 1,364,037 Total assets 1,316,235 1,488,277 1,331,482 1,430,011 Savings/NOW accounts 286,616 245,801 270,167 232,966 Money market deposits 303,397 298,687 296,267 282,776 Other consumer time 114,572 128,504 117,836 137,120 Time deposits over $100,000 39,575 38,913 38,900 42,921 Total interest-bearing deposits 744,160 711,905 723,170 695,783 Short-term borrowings 54,115 254,437 122,844 250,376 Long-term borrowings 135,330 152,319 129,668 138,212 Total interest-bearing liab. 933,605 1,118,661 975,682 1,084,371 Demand deposits 270,614 241,870 237,884 219,072 Minority interest 309 312 316 310 Other liabilities (751) 6,072 4,419 8,351 Total liabilities 1,203,777 1,366,915 1,218,301 1,312,104 Common equity 112,458 121,362 113,181 117,907 Return on average assets 0.69% 1.05% 0.52% 1.26% Return on average equity 8.09% 12.87% 6.13% 15.25% CHARGEOFFS ($000) Third Third YTD 03 YTD 02 Quarter 03 Quarter 02 Loan chargeoffs (20) (84) (56) (137) Recoveries 111 119 443 307 Net loan charge-offs (recoveries) (91) (35) (387) (170) ASSET QUALITY ($000) 09/30/03 12/31/02 09/30/02 Nonaccrual loans 1,836 1,348 1,999 Renegotiated loans 200 210 213 Other real estate owned 1,500 1,500 1,500 Total nonperforming assets 3,336 2,848 3,499 SUPPLEMENTAL DATA 09/30/03 12/31/02 09/30/02 Loans serviced f/others ($000) 418,551 322,085 244,421 FTE employees 390 402 405 Number of full service offices 26 34 31 Number of subsidiaries 2 2 2 Number of ATM's 34 42 41 CONTACT: CCBT Financial Companies, Inc. Phillip W. Wong, 508-760-8306 -----END PRIVACY-ENHANCED MESSAGE-----