-----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, Oy/myjDiFZic5x0Wlaq8UOlK3h+6ei1LM5ORMEqA7ilJ7BxUq3FaUeJE3JIyf27L CZT1eDZYxN+EaEPHrHZRPQ== 0000950134-03-010314.txt : 20030722 0000950134-03-010314.hdr.sgml : 20030722 20030721202220 ACCESSION NUMBER: 0000950134-03-010314 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030721 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030722 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST STATE BANCORPORATION CENTRAL INDEX KEY: 0000897861 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 850366665 STATE OF INCORPORATION: NM FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12487 FILM NUMBER: 03795185 BUSINESS ADDRESS: STREET 1: 7900 JEFFERSON NE CITY: ALBUQUERQUE STATE: NM ZIP: 87109 BUSINESS PHONE: 5052417500 MAIL ADDRESS: STREET 1: 7900 JEFFERSON NE CITY: ALBUQUERQUE STATE: NM ZIP: 87190 8-K 1 d07552e8vk.txt FORM 8-K 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): JULY 21, 2003 FIRST STATE BANCORPORATION (Exact Name of Registrant as Specified in Charter) NEW MEXICO 001-12487 85-0366665 (State or Other Jurisdiction (Commission File Number) (IRS Employer of Incorporation) Identification No.) 7900 JEFFERSON, N.E., ALBUQUERQUE, NEW MEXICO 87109 (Address of Principal Executive Offices) (Zip Code) (505) 241-7500 (Registrant's telephone number, including area code) N/A (Former Name or Former Address, if Changed Since Last Report) ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. Items (a) and (b) are inapplicable. Item (c) Exhibits. Exhibit 99.1 News release, dated July 21, 2003. ITEM 9. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 21, 2003, the Registrant issued a News Release announcing its second quarter 2003 financial results. A copy of the News Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference. 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 hereunto duly authorized. FIRST STATE BANCORPORATION Date: July 21, 2003 By: /s/ Christopher C. Spencer ------------------------------ Christopher C. Spencer Senior Vice President and Chief Financial Officer EXHIBIT INDEX
Exhibit Description - ------- ---------------------------------- 99.1 News release, dated July 21, 2003.
EX-99.1 3 d07552exv99w1.txt NEWS RELEASE EXHIBIT 99.1 NEWS RELEASE H. PATRICK DEE CHRISTOPHER C. SPENCER CHIEF OPERATING OFFICER CHIEF FINANCIAL OFFICER (505) 241-7102 (505) 241-7154 EARNINGS PER SHARE INCREASES 11% AS FIRST STATE REPORTS RECORD QUARTERLY EARNINGS FOR THE FIFTH CONSECUTIVE QUARTER Albuquerque, NM--July 21, 2003--First State Bancorporation ("First State") (NASDAQ:FSNM) today announced second quarter 2003 earnings of $3.73 million or $0.49 per diluted share, a record for quarterly earnings, compared to $2.24 million or $0.44 per diluted share for the second quarter of 2002, an increase of 11%. For the six months ended June 30, 2003, net income was $7.20 million or $0.95 per diluted share, compared to $4.33 million or $0.85 per diluted share for the six months ended June 30, 2002, an increase of 12%. "We are extremely pleased with the generation of new loan volume in the second quarter in both New Mexico and Colorado," stated Michael R. Stanford, President and Chief Executive Officer. "Deposit growth has been solid in New Mexico and is starting to develop in Colorado," continued Stanford. "We have just about completed our staffing in Colorado and recently hired a Utah regional president who has a strong SBA lending background and we are optimistic about developing a strong commercial bank niche in the Salt Lake area," added Stanford. "Our branch repositioning continues in Colorado and Utah," commented Stanford. "This will include consolidating the three offices in Utah into one location in the fourth quarter of this year for better growth and efficiency," continued Stanford. At June 30, 2003, total assets increased $569 million, loans increased $500 million, investment securities increased $39 million, and deposits increased $399 million over June 30, 2002. First State's total assets increased 64% from $883 million at June 30, 2002, to $1.452 billion at June 30, 2003. Total loans increased 84% from $597 million at June 30, 2002, to $1.097 billion at June 30, 2003. Investment securities increased 23% from $169 million at June 30, 2002, to $208 million at June 30, 2003. Total deposits grew 55% from $731 million at June 30, 2002, to $1.130 billion at June 30, 2003. Non-interest bearing deposits grew to $217 million at June 30, 2003, from $164 million at June 30, 2002, while interest bearing deposits grew to $913 million at June 30, 2003 from $567 million at June 30, 2002. The year-to-year comparisons are significantly impacted by First State's completion of the acquisition of First Community Industrial Bank ("First Community") on October 1, 2002 for approximately $67 million. First State financed this acquisition through a public offering of its common stock in August 2002, which netted approximately $51.0 million and through the issuance of approximately $25.0 million in trust preferred securities in June of 2002. The acquisition was accounted for using the purchase method of accounting, and accordingly, the assets and liabilities of First Community were recorded at their respective fair values on October 1, 2002. First State acquired approximately $343 million in loans and approximately $242 million in deposits and recognized goodwill of approximately $43 million related to the transaction. The First Community account balances acquired on October 1, 2002 and the results of operations since October 1, 2002 are included in the results of First State. FSNM - SECOND QUARTER RESULTS JULY 21, 2003 PAGE TWO Net interest income before provision for loan losses was $15.9 million for the second quarter of 2003 compared to $9.9 million for the second quarter of 2002. For the six months ended June 30, 2003 and 2002, net interest income before provision for loan losses was $30.8 million and $19.3 million, respectively. First State's net interest margin was 4.94% and 5.03% for the second quarter of 2003 and 2002, respectively. The net interest margin was 4.86% and 5.01% for the six months ended June 30, 2003 and 2002, respectively. The compression in the net interest margin is due to the interest rate cuts made by the Federal Reserve Bank during 2002 and 2003, while being partially offset in the second quarter of 2003 by strong loan demand. Management believes that the recent Federal Reserve Bank rate cut will cause continued margin compression during the second half of 2003. First State's provision for loan losses was $1.3 million for the second quarter of 2003, compared to $519,000 for the same quarter of 2002. First State's allowance for loan losses was 1.17% and 1.28% of total loans at June 30, 2003 and 2002, respectively. The provision for loan losses for the six months ended June 30, 2003 was $2.3 million compared to $1.2 million for the six months ended June 30, 2002. The ratio of allowance for loan losses to non-performing loans was 130% at June 30, 2003 compared to 277% at June 30, 2002. Non-performing assets equaled 0.72% of total assets at June 30, 2003 compared to 0.41% at June 30, 2002. "We've seen a significant decrease in our loan delinquency rates throughout the first half of 2003," stated H. Patrick Dee, Executive Vice President and Chief Operating Officer. "During the same time period, our total non-performing assets have been reduced, with a substantial improvement in our ratios for that category," continued Dee. Non-interest income for the second quarter of 2003 was $4.0 million, compared to $3.0 million for the second quarter of 2002, an increase of 33%. Non-interest income for the six months ended June 30, 2003 was $7.6 million, compared to $5.9 million for the six months ended June 30, 2002. The gains on sales of mortgage loans increased $630,000 over the second quarter of 2002 and $951,000 over the first six months of 2002 as the refinance market continues at a brisk pace. Service charges on deposit accounts increased $304,000 over the second quarter of 2002 and $432,000 over the first six months of 2002. Non-interest expenses were $12.6 million and $8.7 million for the quarters ended June 30, 2003 and 2002, respectively and represent an increase of $3.9 million or 45%. Salaries and employee benefits increased $2.4 million, occupancy increased $424,000, equipment related expenses increased $208,000, and other non-interest expenses increased $516,000 over the second quarter of 2002. Non-interest expenses for the six months ended June 30, 2003 were $24.5 million compared to $17.0 million for the six months ended June 30, 2002. Salaries and employee benefits increased $4.4 million, occupancy increased $745,000, equipment related expenses increased $431,000, and other non-interest expenses increased $1.2 million over the first six months of 2002. On Friday, July 18, 2003, First State's Board of Directors declared a quarterly dividend of $0.11 per share. The dividend will be payable September 10, 2003 to shareholders of record on August 13, 2003. First State Bancorporation is a New Mexico-based commercial bank holding company (NASDAQ:FSNM). First State provides services to customers from a total of 32 branches located in New Mexico, Colorado, and Utah. On Friday, July 18, 2003, First State's stock closed at $27.99 per share. FSNM - SECOND QUARTER RESULTS JULY 21, 2003 PAGE THREE SELECTED FINANCIAL INFORMATION (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
Second Quarter Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 ---------- ---------- ---------- ---------- INCOME STATEMENT HIGHLIGHTS Interest income $ 21,621 $ 13,656 $ 42,360 $ 27,010 Interest expense 5,690 3,787 11,558 7,704 ---------- ---------- ---------- ---------- Net interest income before provision for loan losses 15,931 9,869 30,802 19,306 Provision for loan losses 1,271 519 2,318 1,188 ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 14,660 9,350 28,484 18,118 ---------- ---------- ---------- ---------- Non-interest income 4,000 3,012 7,565 5,869 Non-interest expenses 12,614 8,730 24,458 16,989 Income tax expense 2,315 1,388 4,394 2,667 ---------- ---------- ---------- ---------- Net income $ 3,731 $ 2,244 $ 7,197 $ 4,331 ========== ========== ========== ========== Basic earnings per share $ 0.50 $ 0.46 $ 0.97 $ 0.89 Diluted earnings per share $ 0.49 $ 0.44 $ 0.95 $ 0.85 Average basic shares outstanding 7,423,589 4,887,784 7,402,045 4,886,230 Average diluted shares outstanding 7,565,276 5,092,180 7,552,912 5,083,786
June 30, 2003 December 31, 2002 June 30, 2002 ----------------- ----------------- ----------------- BALANCE SHEET HIGHLIGHTS: Total assets $ 1,451,964 $ 1,386,870 $ 882,890 Loans receivable, net $ 1,096,830 $ 1,005,187 $ 597,370 Investment securities $ 208,054 $ 194,094 $ 168,508 Deposits $ 1,130,473 $ 1,079,684 $ 730,820 Long-term debt $ 91,262 $ 93,174 $ 33,524 Stockholders' equity $ 125,752 $ 117,468 $ 61,890 Book value per share $ 16.84 $ 16.03 $ 12.66 Tangible book value per share $ 10.94 $ 9.98 $ 12.58
Second Quarter Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 -------- -------- -------- -------- FINANCIAL RATIOS: Return on average assets 1.05% 1.05% 1.03% 1.04% Return on average equity 12.03% 14.61% 11.84% 14.46% Efficiency ratio 63.29% 67.89% 63.75% 67.48% Operating expenses to average assets 3.55% 4.13% 3.50% 4.10% Net interest margin 4.94% 5.03% 4.86% 5.01% Average equity to average assets 8.73% 7.20% 8.71% 7.22% Leverage ratio (end of period) 8.03% 8.56% 8.03% 8.56% Total risk based capital ratio (end of period) 11.47% 15.17% 11.47% 15.17%
Second Quarter Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 -------- -------- -------- -------- NON-INTEREST INCOME: Service charges on deposit accounts $ 1,141 $ 837 $ 2,085 $ 1,653 Other banking service fees 296 272 584 523 Credit and debit card transaction fees 982 1,060 1,956 1,975 Gain on sale of mortgage loans 1,156 526 2,075 1,124 Other 425 317 865 594 -------- -------- -------- -------- $ 4,000 $ 3,012 $ 7,565 $ 5,869 ======== ======== ======== ========
FSNM - SECOND QUARTER RESULTS JULY 21, 2003 PAGE FOUR
Second Quarter Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 --------- --------- --------- --------- NON-INTEREST EXPENSE: Salaries and employee benefits $ 6,222 $ 3,829 $ 12,101 $ 7,710 Occupancy 1,444 1,020 2,762 2,017 Data processing 570 502 1,115 891 Credit and debit card interchange 388 546 810 998 Equipment 873 665 1,730 1,299 Telephone 389 205 695 418 Supplies 192 142 400 283 Legal, accounting, and consulting 315 157 599 358 Other real estate owned 55 27 155 84 Marketing 567 554 929 929 Other 1,599 1,083 3,162 2,002 --------- --------- --------- --------- $ 12,614 $ 8,730 $ 24,458 $ 16,989 ========= ========= ========= =========
Second Quarter Ended Six Months Ended June 30, June 30, 2003 2002 2003 2002 ------------ ------------ ------------ ------------ AVERAGE BALANCES: Assets $ 1,424,166 $ 848,283 $ 1,408,155 $ 836,554 Earning assets 1,292,879 786,432 1,276,993 776,918 Loans 1,081,058 587,948 1,052,935 570,166 Investment securities 200,574 182,692 199,062 183,702 Deposits 1,123,267 712,350 1,109,187 699,837 Equity 124,381 61,045 122,599 60,414
June 30, 2003 December 31, 2002 June 30, 2002 -------------------- -------------------- -------------------- LOANS: Commercial $ 118,420 10.7% $ 100,813 9.9% $ 92,999 15.4% Real estate - mortgage 845,097 76.1% 759,884 74.7% 383,410 63.4% Real estate - construction 99,751 9.0% 100,458 9.9% 98,465 16.3% Consumer and other 32,490 2.9% 35,555 3.5% 25,862 4.3% Mortgage loans available for sale 14,057 1.3% 20,315 2.0% 4,384 0.6% ----------- ------ ----------- ------ ----------- ------ Total $ 1,109,815 100.0% $ 1,017,025 100.0% $ 605,120 100.0% =========== ====== =========== ====== =========== ======
June 30, 2003 December 31, 2002 June 30, 2002 ----------------------- ---------------------- ---------------------- DEPOSITS: Non-interest bearing $ 216,951 19.2% $ 189,063 17.5% $ 163,506 22.4% Interest bearing demand 208,578 18.4% 192,067 17.8% 162,801 22.3% Money market savings accounts 131,125 11.6% 125,616 11.6% 36,908 5.1% Regular savings 58,636 5.2% 52,636 4.9% 48,248 6.6% Certificates of deposit less than $100,000 273,973 24.3% 298,900 27.7% 119,737 16.3% Certificates of deposit greater than $100,000 241,210 21.3% 221,402 20.5% 199,620 27.3% ------------ ------ ------------ ------ ------------ ------ Total $ 1,130,473 100.0% $ 1,079,684 100.0% $ 730,820 100.0% ============ ====== ============ ====== ============ ======
June 30, 2003 December 31, 2002 June 30, 2002 ---------------- ----------------- ---------------- ALLOWANCE FOR LOAN LOSSES: Balance beginning of period $ 11,838 $ 7,207 $ 7,207 Provision for loan losses 2,318 2,589 1,188 Net charge-offs (1,171) (1,123) (645) Allowance related to acquired loans -- 3,165 -- ---------------- ---------------- ---------------- Balance end of period $ 12,985 $ 11,838 $ 7,750 ================ ================ ================ Allowance for loan losses to total loans 1.17% 1.16% 1.28% Allowance for loan losses to non-performing loans 130% 108% 277%
FSNM - SECOND QUARTER RESULTS JULY 21, 2003 PAGE FIVE
June 30, 2003 December 31, 2002 June 30, 2002 ----------------- ----------------- ----------------- NON-PERFORMING ASSETS: Accruing loans - 90 days past due $ 24 $ 721 $ 297 Non-accrual loans 10,001 10,241 2,503 ----------------- ----------------- ----------------- Total non-performing loans 10,025 10,962 2,800 Other real estate owned 373 908 815 ----------------- ----------------- ----------------- Total non-performing assets $ 10,398 $ 11,870 $ 3,615 ================= ================= ================= Total non-performing assets to total assets 0.72% 0.86% 0.41%
This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements can be identified by the use of forward-looking words such as "believe," "expect," "may," "will," "should," "seek," "approximately," "intend," "plan," "estimate," or "anticipate" or the negative of those words or other comparable terminology. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statement. Some factors include fluctuations in interest rates, inflation, government regulations, loss of key personnel, faster or slower than anticipated growth, economic conditions, competition's responses to the Company's marketing strategy, and competition in the geographic and business areas in which we conduct our operations. Other factors are described in First State's filings with the Securities and Exchange Commission. First State is under no obligation to update any forward-looking statements. First State's news releases and filings with the Securities and Exchange Commission are available through the Investor Relations section of First State's website at www.fsbnm.com. -----END PRIVACY-ENHANCED MESSAGE-----