EX-99.2 5 a2070615zex-99_2.htm EXHIBIT 99.2 Prepared by MERRILL CORPORATION
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Exhibit 99.2

Pacific Western National Bank

September 30, 2001

INDEX—Interim Financial Information

 
  Page
Condensed Statements of Condition at September 30, 2001 and December 31, 2000   F-2
Condensed Statements of Income for the Nine Months Ended September 30, 2001 and 2000   F-3
Condensed Statements of Changes in Shareholders' Equity from January 1, 2000 through September 30, 2001   F-4
Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2001 and 2000   F-5
Notes to Financial Statements   F-6

F-1


Pacific Western National Bank

Condensed Statements of Condition

(Unaudited—Dollar Amounts in Thousands)

 
  September 30,
2001

  December 31,
2000

 
Cash and Due From Bank   $ 12,016   $ 12,188  
Federal Funds Sold     40,000     2,800  
   
 
 
  TOTAL CASH AND CASH EQUIVALENTS     52,016     14,988  

Investment Securities, net

 

 

18,727

 

 

5,504

 

Loans

 

 

185,100

 

 

165,835

 
Allowance for Loan Losses     (1,960 )   (1,791 )
   
 
 
  NET LOANS     183,140     164,044  

Premises and Equipment, net

 

 

3,290

 

 

2,720

 
Federal Reserve and Federal Home Loan Bank Stock, at Cost     348     262  
Accrued Interest and Other Assets     2,935     2,693  
   
 
 
    $ 260,456   $ 190,211  
   
 
 
Noninterest-Bearing Deposits   $ 38,356   $ 33,456  
Interest-Bearing Deposits     202,084     138,154  
   
 
 
  TOTAL DEPOSITS     240,440     171,610  

Accrued Interest and Other Liabilities

 

 

1,087

 

 

939

 
   
 
 
  TOTAL LIABILITIES     241,527     172,549  

Common Shares

 

 

1,536

 

 

1,463

 
Paid-in Capital     5,860     4,987  
Retained Earnings     11,472     11,208  
Accumulated Other Comprehensive Income     61     4  
   
 
 
  TOTAL SHAREHOLDERS' EQUITY     18,929     17,662  
   
 
 
    $ 260,456   $ 190,211  
   
 
 

The accompanying notes are an integral part of the financial statements.

F-2


Pacific Western National Bank

Condensed Statements of Income

(Unaudited—Dollar Amounts in Thousands, Except Per Share Data)

 
  For the Nine Months Ended
September 30,

 
  2001
  2000
Interest Income   $ 14,930   $ 12,660
Interest Expense     5,871     3,990
   
 
    Net Interest Income     9,059     8,670

Provision for Loan Losses

 

 

930

 

 

720
   
 
    Net Interest Income After Provision for Loan Losses     8,129     7,950

Noninterest Income

 

 

1,032

 

 

911
Noninterest Expense     7,097     6,401
   
 
    Income Before Taxes     2,064     2,460

Income Taxes

 

 

852

 

 

1,010
   
 
    Net Income   $ 1,212   $ 1,450
   
 
Per Share Data:            
  Net Income—Basic   $ 1.32   $ 1.57
  Net Income—Diluted   $ 1.27   $ 1.54

The accompanying notes are an integral part of the financial statements.

F-3


Pacific Western National Bank

Condensed Statements of Changes in Shareholders' Equity

(Unaudited—Dollar Amounts in Thousands)

 
  Shares
  Common
Stock

  Paid-In
Capital

  Comprehensive
Income

  Retained
Earnings

  Accumulated
Other
Comprehensive
Income

 
January 1, 2000   835,698   $ 1,394   $ 4,191         $ 9,955   $ (3 )

Five Percent Stock Dividend

 

41,706

 

 

69

 

 

796

 

 

 

 

 

(865

)

 

 

 
Cash Paid in Lieu of Fractional Shares                           (2 )      
  Comprehensive Income                                    
Unrealized Gain on Securities Available for Sale, Net of Taxes                   $ 7           7  
Net Income                     2,120     2,120        
                   
             
    Comprehensive Income                   $ 2,127              
   
 
 
 
 
 
 
      December 31, 2000   877,404     1,463     4,987           11,208     4  

Five Percent Stock Dividend

 

43,781

 

 

73

 

 

873

 

 

 

 

 

(946

)

 

 

 
Cash Paid in Lieu of Fractional Shares                           (2 )      
  Comprehensive Income                                    
Unrealized Gain on Securities Available for Sale, Net of Taxes                   $ 57           57  
Net Income                     1,212     1,212        
                   
             
    Comprehensive Income                   $ 1,269              
   
 
 
 
 
 
 
      September 30, 2001   921,185   $ 1,536   $ 5,860         $ 11,472   $ 61  
   
 
 
       
 
 

The accompanying notes are an integral part of the financial statements.

F-4


Pacific Western National Bank

Condensed Statements of Cash Flows

(Unaudited—Dollar Amounts in Thousands)

 
  For the Nine Months Ended
September 30,

 
 
  2001
  2000
 
OPERATING ACTIVITIES              
  Net Income   $ 1,212   $ 1,450  
  Adjustments to Reconcile Net Loss to
Net Cash Provided by Operating Activities:
             
    Depreciation and Amortization     484     420  
    Provision for Loan Losses     930     720  
    Other Items—Net     (94 )   (1,112 )
   
 
 
      NET CASH PROVIDED BY OPERATING ACTIVITIES     2,532     1,478  

INVESTING ACTIVITIES

 

 

 

 

 

 

 
  Purchases of Investment Securities     (21,353 )    
  Sale and Maturities of Investment Securities     8,187     1,698  
  Net Decrease (Increase) in Federal Reserve and Home Loan Bank Stock     (86 )   326  
  Net Change in Loans     (20,026 )   (13,320 )
  Proceeds From Sale of Bank Premises and Equipment         965  
  Purchase of Premises and Equipment     (1,054 )   (826 )
   
 
 
      NET CASH USED BY INVESTING ACTIVITIES     (34,332 )   (11,157 )

FINANCING ACTIVITIES

 

 

 

 

 

 

 
  Net Increase in Deposits     68,830     29,817  
  Net Change in Other Borrowings         (3,500 )
  Cash Paid in Lieu of Fractional Shares     (2 )   (2 )
   
 
 
      NET CASH PROVIDED BY FINANCING ACTIVITIES     68,828     26,315  
   
 
 
      INCREASE IN CASH AND CASH EQUIVALENTS     37,028     16,636  
  Cash and Cash Equivalents at Beginning of Period     14,988     8,178  
   
 
 
      CASH AND CASH EQUIVALENTS AT END OF PERIOD   $ 52,016   $ 24,814  
   
 
 
SUPPLEMENTAL CASH FLOW INFORMATION:              
  Interest Paid   $ 5,896   $ 4,148  
   
 
 
  Income Taxes Paid   $ 1,072   $ 1,218  
   
 
 

The accompanying notes are an integral part of the financial statements.

F-5


Pacific Western National Bank

Notes to Financial Statements

Note 1—Basis of Presentation and Management Representation

        The accompanying financial information has been prepared in accordance with the Securities and Exchange Commission rules and regulations for quarterly reporting and therefore does not necessarily include all information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles.

        Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year. In the opinion of management, the unaudited financial information for the nine-month period ended September 30, 2001 and 2000, reflects all adjustments, consisting only of normal recurring accruals and provisions, necessary for a fair presentation thereof.

Note 2—Earnings Per Share

        Effective December 31, 1997, the Bank adopted Statement of Financial Accounting Standards No. 128, "Earnings per Share." Accordingly, basic earnings per share are computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share also considers the number of shares issuable upon the assumed exercise of outstanding common stock options.

F-6





QuickLinks

Pacific Western National Bank September 30, 2001 INDEX—Interim Financial Information
Pacific Western National Bank Condensed Statements of Condition (Unaudited—Dollar Amounts in Thousands)
Pacific Western National Bank Condensed Statements of Income (Unaudited—Dollar Amounts in Thousands, Except Per Share Data)
Pacific Western National Bank Condensed Statements of Changes in Shareholders' Equity (Unaudited—Dollar Amounts in Thousands)
Pacific Western National Bank Condensed Statements of Cash Flows (Unaudited—Dollar Amounts in Thousands)
Pacific Western National Bank Notes to Financial Statements