-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, jn8ElkAhv/7WoZ7t3tfAhdnBQbO3Zj/qnt7Q4ygxZIin4YvxRju5QeOH02NIthlY j/4bJ6LAa/n1eYwJDM94eA== 0000931763-95-000089.txt : 19950530 0000931763-95-000089.hdr.sgml : 19950530 ACCESSION NUMBER: 0000931763-95-000089 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: ABC BANCORP CENTRAL INDEX KEY: 0000351569 STANDARD INDUSTRIAL CLASSIFICATION: 6022 IRS NUMBER: 581456434 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-16181 FILM NUMBER: 95538988 BUSINESS ADDRESS: STREET 1: 310 FIRST ST NE CITY: MOULTRIE STATE: GA ZIP: 31768 BUSINESS PHONE: 9128901111 MAIL ADDRESS: STREET 1: PO BOX 1500 CITY: MOULTRIE STATE: GA ZIP: 31776 FORMER COMPANY: FORMER CONFORMED NAME: ABC HOLDING CO DATE OF NAME CHANGE: 19870119 10QSB 1 10QSB UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (MARK ONE) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995 -------------- OR [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 0-16181 ------- ABC BANCORP ------------------------------------------------------------- (Exact name of regisrtant as specified in its charter) GEORGIA 58-1456434 -------------------------- ----------------------- (STATE OF INCORPORATION) (IRS EMPLOYER ID NO.) 310 FIRST STREET, SE MOULTRIE, GA 31768 ------------------------------------------ (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (912)890-1111 --------------------------------- (REGISTRANT'S TELEPHONE NUMBER) INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS REQUIRED TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES X NO ----- ----- THERE WERE 2,514,575 SHARES OF COMMON STOCK OUTSTANDING AS OF MARCH 31, 1995. Page 1 of 13 ABC BANCORP QUARTERLY REPORT ON FORM 10-QSB FOR THE QUARTER ENDED MARCH 31, 1995 TABLE OF CONTENTS
PAGE ---- PART I - FINANCIAL INFORMATION ITEM 1. Consolidated Statements of Financial Condition - Consolidated Balance Sheets 3 - Consolidated Statements of Income 4 - Consolidated Statements of Cash Flows 5-6 - Note to Consolidated Financial Statements 7 ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8-11 PART II - OTHER INFORMATION ITEM 3. Submission of Matters to a Vote of Securities Holders 12 ITEM 6. Exhibits and Reports on Form 8-k 12
SIGNATURES - 2 - ABC BANCORP AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 1995 (DOLLARS IN THOUSANDS) (UNAUDITED) ________________________________________________________________________________
ASSETS 1995 - - - - - - ------ --------------- Cash and due from banks $16,502 Securities available for sale, at fair value 2,680 Securities held for investment, at cost (fair value $43,832) 43,535 Federal funds sold 23,515 Loans 195,387 Less allowance for loan losses 3,970 --------------- Loans, net 191,417 --------------- Premises and equipment, net 7,188 Other assets 9,105 --------------- $293,942 =============== LIABILITIES AND STOCKHOLDERS' EQUITY - - - - - - ------------------------------------ Deposits Noninterest-bearing demand $42,733 Interest-bearing demand 57,567 Savings 22,545 Time, $100,000 and over 34,315 Other time 99,374 --------------- Total deposits 256,534 Federal funds purchased and securities sold under repurchase agreements 1,558 Accrued interest and other liabilities 4,599 --------------- Total liabilities 262,691 --------------- COMMITMENTS AND CONTINGENT LIABILITIES STOCKHOLDERS' EQUITY Common stock par value $1; 3,000,000 shares authorized, 2,697,987 issued and 1,950,487 shares issued 2,698 Capital surplus 17,728 Retained earnings 12,530 Unrealized gain (losses) on securities available for sale (25) --------------- 32,931 Less cost of 183,412 shares acquired for the treasury stock (1,680) --------------- Total stockholders' equity 31,251 --------------- $293,942 ===============
SEE NOTE TO CONSOLIDATED FINANCIAL STATEMENTS. -3- ABC BANCORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31, 1995 AND 1994 (DOLLARS IN THOUSANDS) ________________________________________________________________________________
1995 1994 --------------- ------------------ INTEREST INCOME Income and fees on loans $5,176 $3,962 Interest on taxable securities 516 452 Interest on nontaxable securities 133 163 Interest on deposits in other banks 18 26 Interest on Federal funds sold 314 209 -------------- ------------------ 6,157 4,812 -------------- ------------------ INTEREST EXPENSE Interest on deposits 2,291 1,770 Interest on securities sold under repurchase agreements and other borrowings 57 78 -------------- ------------------ 2,348 1,770 -------------- ------------------ Net interest income 3,809 3,042 PROVISION FOR LOAN LOSSES 108 207 -------------- ------------------ Net interest income after provision for loan losses 3,629 2,835 -------------- ------------------ OTHER INCOME Service charges on deposit accounts 602 553 Other service charges, commisions and fee 229 224 Other 55 69 -------------- ------------------ 886 846 -------------- ------------------ OTHER EXPENSE Salaries and employee benefits 1,519 1,446 Equipment expense 278 241 Occupancy expense 231 215 Amortization of intangible assets 79 87 Data processing fees 85 89 Directors fees 28 24 FDIC premiums 145 141 Other operating expenses 635 648 -------------- ------------------ 3,000 2,891 -------------- ------------------ Income before income taxes 1,515 790 Applicable income taxes 487 194 -------------- ------------------ NET INCOME $1,028 $596 ============== =================== Income per common share $0.41 $0.38 ============== =================== Average shares outstanding 2,514,575 1,767,075
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -4- ABC BANCROP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 1995 AND 1994 (DOLLARS IN THOUSANDS) (UNAUDITED) ________________________________________________________________________________
1995 1994 -------------------- -------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $1,028 $518 -------------------- -------------------- Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 199 159 Provision for loan losses 180 207 Amortization of intangible assets 67 82 Other prepaids, deferrals and accruals, net (941) 223 -------------------- -------------------- Total adjustments (495) 671 -------------------- -------------------- Net cash provided by (used in) operating activities 533 1,189 ------------------- -------------------- CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturities of securities held for investments 3,928 3,679 Purchase of securities available for sale (3,607) -- Purchase of securities held for investment -- (3,487) (Increase) decrease in interest-bearing deposits in bank -- 7 Increase (decrease) in Federal funds sold (1,663) 11,770 (Increase) decrease in loans (3,510) (10,801) Purchase of premises and equipment (217) (50) -------------------- -------------------- Net cash provided by (used in investing activities (5,069) 1,118 -------------------- -------------------- CASH FLOWS FROM FINANCING ACTIVITIES Net increase (decrease) in deposits (20) (4,292) Net increase (decrease) in repurchase agreements (1,198) (714) Repayment of long-term debt 2,000 -- Dividends paid (239) -- -------------------- -------------------- Net cash provided by (used in) financing activities 543 (5,006) -------------------- --------------------
-5- ABC BANCORP AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31 1995 AND 1994 (DOLLARS IN THOUSANDS) (UNAUDITED) ________________________________________________________________________________
1995 1994 ---------------- ---------------- Net increase (decrease) in cash and due from banks ($3,993) ($2,699) Cash and due from banks at beginning of quarter 20,495 16,994 ---------------- ---------------- Cash and due from banks at end of quarter $16,502 $14,295 ================ ================
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. -6- NOTE TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------------------------------------------- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting and reporting policies of ABC Bancorp and Subsidiaries (the "Company") conform to generally accepted accounting principles and to general practices within the banking industry. The interim consolidated financial statements included herein are unaudited, but reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the consolidated financial position and results of operations for the interim periods presented. All adjustments reflected in the interim financial statements are of a normal, recurring nature. Such financial statements should be read in conjunction with the financial statements and notes thereto and the report of independent auditors included in the Company's Form 10-KSB Annual Report for the year ended December 31, 1994. The results of operations for the three months ended March 31, 1995 are not necessarily indicative of the results to be expected for the full year. -7- ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES Liquidity management involves matching the cash flow requirements of customers, who may be either depositors desiring to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs, with the ability of ABC Bancorp and its subsidiaries (the "Company", collectively) to meet those needs. The Company seeks to meet liquidity requirements primarily through management of short-term investments (principally Federal funds sold) and monthly- amortizing loans. Another source of liquidity is the repayment of maturing single-payment loans. Also, the Company maintains relationships with correspondent banks from which it could borrow funds on short notice, if necessary. The liquidity and capital resources of the subsidiary banks (the "Banks") are monitored on a periodic basis by state and Federal regulatory authorities. As determined under guidelines established by these regulatory authorities, the Banks' liquidity ratios at March 31, 1995 were considered satisfactory. At that date, the Banks' short-term investments were adequate to cover any reasonably anticipated immediate need for funds. The Company is aware of no events or trends likely to result in a material change in its liquidity. At March 31, 1995, the Company's capital asset ratios were considered adequate based on guidelines established by regulatory authorities. Total capital of the Company amounted to $31.5 million and $20.3 million at March 31, 1995 and 1994, respectively, an increase of $11.2 million. This increase was mostly the result of net proceeds of $8.3 million (after deducting stock issuance costs) from a public offering of the Company's common stock. At March 31, 1995, there were no outstanding commitments for major capital expenditures. RESULTS OF OPERATIONS The Company's results of operations are determined by its ability to effectively manage interest income and expense, to minimize loan and investment losses, to generate noninterest income and to control noninterest expense. Since interest rates are determined by market forces and economic conditions beyond the control of the Company, the ability to generate net interest income is dependent upon the Banks' ability to obtain an adequate spread between the rate earned on interest-earning assets and the rate paid on interest-bearing liabilities. Thus, the key performance measure for net interest income is the interest margin or net yield, which is taxable-equivalent net interest income divided by average interest-earning assets. -8- RESULTS OF OPERATIONS (CONTINUED) Interest-earning assets consist of loans, investment securities and Federal funds sold. Interest-bearing liabilities consist of deposits, of which approximately 17% are noninterest-bearing. A portion of interest income is earned on tax-exempt investments, such as state and municipal bonds. For comparative and analytical purposes, tax-exempt income and resultant yields are restated on a taxable-equivalent basis which is comparable to all other taxable investments. The net interest margin increased by 17.1% to 5.68% in March 1995 as compared to 4.85% in 1994. Net interest income on a taxable-equivalent basis was $3.9 million during the three months ended March 31, 1995 as compared to $3.0 million during the three months ended March 31, 1994, representing an increase of 27.2%. Average interest-earning assets were $257.1 million and $233.2 million for the quarters ended March 31, 1995 and 1994, respectively, an increase of $23.9 million. In comparing the two quarters, average loans increased by $27.9 million, average investments increased by $.1 million and average Federal funds sold decreased by $4.1 million. The increase in average interest-earning assets was funded by an increase in average deposits of $18.5 million, or 7.8%, to $255.3 million during the quarter ended March 31, 1995 from $236.8 million during the same quarter a year earlier. Approximately 17% of average deposits during the quarter ended March 31, 1995 were noninterest-bearing, compared to 16% during the quarter ended March 31, 1994. The allowance for loan losses represents a reserve for potential losses in the loan portfolio. The adequacy of the allowance for loan losses is evaluated periodically based on a review of all significant loans, with a particular emphasis on nonaccruing, past due and other loans that management has recognized as requiring special attention. The provision for loan losses is a charge to earnings in the current period to replenish the allowance and maintain it at a level management has determined to be adequate. The provision for loan losses charged to earnings amounted to $180,000 and $207,000 during the quarters ended March 31, 1995 and 1994, respectively, a decrease of $27,000 or 15%. Recoveries, net of chargeoffs, amounted to $33,000 for the quarter ended March 31, 1995. This represents an improvement of $95,000 over the $62,000 net chargeoffs recorded during the quarter ended March 31, 1994. The decrease in loan charge-offs during the most recent period ended resulted from an improvement in the quality of the collateral held as security on loans and the ability of creditors to service their debt. -9- RESULTS OF OPERATIONS (CONTINUED) At March 31, 1995, the allowance for loan losses was 2.07% of total loans outstanding as compared to an allowance of 2.20% of total loans at March 31, 1994. The determination of the allowance rests upon management's judgment about factors affecting loan quality and assumptions about the local and national economy. Management considers the quarter-end allowance for loan losses adequate to cover potential losses in the loan portfolio. Following is a comparison of noninterest income for the quarters ended March 31, 1995 and 1994 (DOLLARS IN THOUSANDS).
MARCH 31, --------- 1995 1994 ---- ---- Service charges on deposit accounts $ 712 $ 558 Other service charges, commissions & fees 120 117 Other income 54 170 ----- ---- $ 886 $ 845 ===== ====
The most significant increase in noninterest income, when comparing the two quarters ended March 31, 1995 and March 31, 1994, was an increase in service charges on deposit accounts of $154,000 or 27.6%. This increase resulted mainly from an increase in average deposits of $18,485,530 during the quarter ended March 31, 1995 as compared to the same quarter a year ago. Also, contributing to this increase was an increase in service charge fees to customers that was effective for only part of first quarter 1994. Following is an analysis of noninterest expense for the quarters ended March 31, 1995 and 1994 (DOLLARS IN THOUSANDS).
MARCH 31, --------- 1995 1994 ---- ---- Salaries and employee benefits $ 1,519 $ 1,446 Occupancy and equipment expense 509 407 Deposit insurance premium 145 141 Data processing fees 337 262 Other expense 490 635 ----- ----- $ 3,000 $ 2,891 ===== =====
-10- RESULTS OF OPERATIONS (CONTINUED) Salaries and employee benefits increased $73,000, or 5.1% during the quarter ended March 31, 1995 as compared to the quarter ended March 31, 1994. Salaries increased $45,000; bonuses increased $13,000; employee benefits increased $8,000; and taxes withheld increased $7,000. Year-end bonuses are based on net income. As a result of the increased net income for the quarter ended March 31, 1995 as compared to the same quarter a year earlier, the bonus accrual was higher. Average total assets increased $27.1 million or 10.3% to $289.0 million in March 1995 as compared to $261.9 million in March 1994. The increase in average total assets was accompanied by an increase in average deposits of $18.5 million or 7.8%. Average total assets of the Company were $289.0 million and $261.9 million at March 31, 1995 and 1994, respectively, an increase of $27.1 million or 10.4%. Following is a detail of the components of net income during the quarter ended March 31, 1995 as compared to the quarter ended March 31, 1994 (DOLLARS IN THOUSANDS).
Increase MARCH 31, (Decrease) --------- in Net 1995 1994 Income ---- ---- ------ Net interest income $3,809 $2,964 $ 845 Provision for loan losses 180 207 27 Other income 886 846 40 Other expense 3,000 2,891 (109) ------ ------ -------- Income before income taxes 1,515 712 803 Applicable income taxes 487 194 293 ------ ------ ----- Net Income $1,028 $ 518 $ 510 ====== ===== ======
-11- PART II - OTHER INFORMATION ITEM 3. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS There were no matters submitted to a vote of securities holders during the quarter ended March 31, 1995. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits filed in accordance with Item 601 of Regulation S-B 27 Financial Data Schedule (b) The Company has not filed any reports on Form 8-k with the Securities and Exchange Comission during the three months ended March 31, 1995 -12- SIGNATURE 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: ABC BANCORP 5/11/95 /s/ W. EDWIN LANE, JR. - - - - - - ------------------- -------------------------------------- DATE W. EDWIN LANE, JR. EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER (Duly authorized officer and principal financial/accounting officer) -13- EX-27 2 FINANCIAL DATA SCHEDULE
9 3-MOS 3-MOS DEC-31-1995 DEC-31-1995 JAN-01-1995 JAN-01-1994 MAR-31-1995 MAR-31-1994 16,502 14,295 0 1,250 2,3515 0 0 0 2,680 0 43,535 45,733 43,832 45,723 195,387 172,487 3,970 3,716 293,942 263,514 256,534 233,933 1,558 2,466 4,599 2,129 0 4,677 2,698 1,950 0 0 0 0 28,553 18,359 293,942 263,514 5,176 3,962 649 615 332 235 6,157 4,812 2,291 1,770 57 78 3,809 3,042 180 207 0 0 3,000 2,891 1,515 790 0 0 0 0 0 0 1,028 596 .41 .38 0 0 8.16 6.94 3,944 3,976 4,942 5,215 0 809 0 0 3,757 3,571 (80) (270) 113 208 3,970 3,716 0 0 0 0 3,970 3,716
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