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SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

Quarterly Report under Section 13 or 15(d)

of The Securities Exchange Act of 1934

 

For the Quarter Ended March 31, 2003 Commission file number 0-16213

GBC BANCORP

 

(Exact name of registrant as specified in its charter)

California

95-3586596

(State or other jurisdiction of (I.R.S. Employer Identification No.)

incorporation or organization)

800 West 6th Street, Los Angeles,

California 90017

(Address of principal executive offices) (Zip code)

Registrant's telephone number, including area code 213/972-4174

Former name address and former fiscal year, if changed since last report.

 

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 _______

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12 b-2 of the Exchange Act.)

Yes X No _______

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period covered by this report.

Common stock, no par value, 11,557,562 shares issued and outstanding as of March 31, 2003.

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

PART I -

FINANCIAL INFORMATION .............................................................

3

Item 1.

Financial Statements ..............................................................................

4

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations .........................................................................................

       16

Item 3.

Qualitative and Quantitative Disclosure about Market Risk ......................

37

Item 4.

Controls and Procedures .......................................................................

39

PART II -

OTHER INFORMATION ......................................................................

41

Item 1.

Legal Proceedings ..................................................................................

42

Item 2.

Changes In Securities .............................................................................

42

Item 3.

Default Upon Senior Securities ..............................................................

42

Item 4.

Submission Of Matters To A Vote Of Securities Holders .....................

42

Item 5.

Other Information ...................................................................................

42

Item 6.

Exhibits And Reports On Form 8-K ......................................................

42

SIGNATURES .......................................................................................

43

Certifications ..........................................................................................

44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

<TABLE>

<CAPTION>

GBC Bancorp and Subsidiaries

Consolidated Balance Sheets

                                                                          (Unaudited)

March 31,

December 31,

(Dollars In Thousands)

2003

 

2002

ASSETS

<s>

<c>

<c>

Cash and Due From Banks

$ 39,326

$ 46,889

Federal Funds Sold and Securities Purchased Under Agreements to Resell

146,500

181,000

Cash and Cash Equivalents

185,826

227,889

Securities Available-for-Sale at Fair Value (Amortized Cost of $1,028,045 at

March 31, 2003 and $1,050,600 at December 31, 2002 , respectively)

1,051,092

1,075,697

Trading Securities

1

1

Loans and Leases

1,260,672

1,198,628

Less: Allowance for Credit Losses

(27,635)

(25,534)

Deferred Loan Fees

(6,106)

(6,595)

Loans and Leases, net

1,226,931

1,166,499

Bank Premises and Equipment, net

5,967

6,286

Due From Customers on Acceptances

9,020

6,525

Real Estate Held for Investment

1,463

1,484

Other Investments

6,821

7,509

Accrued Interest Receivable and Other Assets

20,060

18,854

Total Assets

$ 2,507,181

$ 2,510,744

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits

Demand

$ 250,056

$ 251,197

Interest Bearing Demand

534,262

543,969

Savings

94,795

87,540

Time Deposits of $100,000 or More

883,377

879,494

Other Time Deposits

151,072

141,943

Total Deposits

1,913,562

1,904,143

Federal Funds Purchased and Securities Sold Under Repurchase

Agreements

4,500

-

Borrowings from the Federal Home Loan Bank

297,400

322,400

Subordinated Debt

39,432

39,400

Acceptances Outstanding

9,020

6,525

Liability on Securities Awaiting Settlement

-

5,157

Accrued Expenses and Other Liabilities

37,431

29,018

Total Liabilities

2,301,345

2,306,643

Stockholders' Equity

Common Stock, No Par or Stated Value;

40,000,000 Shares Authorized; 11,557,562 shares (net of 79,001

shares held in trust) at March 31, 2003 and 11,540,762 shares (net of 79,001

shares held in trust) at December 31, 2002

73,265

72,932

Retained Earnings

115,498

112,774

Accumulated Other Comprehensive Income

14,970

16,292

Deferred Compensation

2,103

2,103

Total Stockholders' Equity

205,836

204,101

Total Liabilities and Stockholders' Equity

$ 2,507,181

$ 2,510,744

See Accompanying Notes to Unaudited Consolidated Financial Statements

</TABLE>

<TABLE>

<CAPTION>

 

GBC Bancorp and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

For the Three Months Ended

March 31,

(In Thousands, Except Per Share and Share Data)

 

2003

 

2002

<s>

<c>

<c>

INTEREST INCOME

Loans and Leases, Including Fees

$ 19,729

$ 19,825

Securities Available-for-Sale

11,084

16,917

Federal Funds Sold and Securities

Purchased under Agreements to Resell

489

392

Other

3

3

Total Interest Income

31,305

37,137

INTEREST EXPENSE

Interest Bearing Demand

1,240

1,843

Savings

159

291

Time Deposits of $100,000 or More

5,676

6,497

Other Time Deposits

756

941

Federal Funds Purchased and Securities

Sold under Repurchase Agreements

2

3

Borrowings from the Federal Home Loan Bank

3,080

2,649

Subordinated Debt

871

871

Total Interest Expense

11,784

13,095

Net Interest Income

19,521

24,042

Provision for Credit Losses

4,618

18,514

Net Interest Income after Provision

 

 

for Credit Losses

14,903

5,528

NON-INTEREST INCOME

Service Charges and Commissions

1,730

1,774

Trading Account Revenue

-

19

Expense from Other Investments

(783)

(3,363)

Other

30

67

Total Non-Interest Income

977

(1,503)

NON-INTEREST EXPENSE

Salaries and Employee Benefits

5,244

5,032

Occupancy Expense

1,010

960

Furniture and Equipment Expense

639

900

Net Other Real Estate Owned Income

-

(25)

Other

2,500

1,645

Change of Fair Value of Derivatives

257

96

Total Non-interest Expense

9,650

8,608

Income/(Loss) before Income Taxes

6,230

(4,583)

Provision/(Benefit) for Income Taxes

2,110

(1,677)

Net Income/(Loss)

4,120

(2,906)

Net Income/(Loss)

Basic

$ 0.35

$ (0.25)

Diluted

0.35

(0.25)

Weighted Average Basic Shares Outstanding

11,627,801

11,589,833

Weighted Average Diluted Shares Outstanding

11,641,486

11,589,833

See Accompanying Notes to Unaudited Consolidated Financial Statements

 

</TABLE>

<TABLE>

<CAPTION>

GBC Bancorp and Subidiaries

Consolidated Statements of Changes in Stockholder's Equity and Comprehensive Income

(Unaudited)

(In Thousands, Except per Share Amounts)

Accumulated

Other

Total

Common Stock

Retained

Deferred

Comprehensive

Comprehensive

Stockholders'

 

Shares

 

Amount

 

Earnings

 

Compensation

 

Income (Loss)

 

Income (Loss)

 

Equity

<s>

<c>

<c>

<c>

<c>

<c>

<c>

<c>

<c>

Balance at December 31, 2000

11,558

$ 62,054

$ 114,266

$ 1,571

$ 9,891

$ 187,782

Comprehensive Income

Net Income for the year

32,602

$ 32,602

32,602

Other Comprehensive Income, Net of Tax

Net Changes in Securities Valuation Allowance

630

630

630

Net Changes in Investment Valuation Allowance

(2,188)

(2,188)

(2,188)

Net Changes in Foreign Currency Translation Adjustments

(1)

(1)

(1)

Comprehensive Income

$ 31,043

Stock Held by Executive Obligation Trust

(26)

(903)

903

-

Stock Issuance

563

5,264

5,264

Tax Benefit-Stock Options Exercised

4,901

4,901

Stock Repurchase

(618)

(17,077)

(17,077)

Cash Dividend- $0.48 per Share

(5,595)

(5,595)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2001

11,477

$ 71,316

$ 124,196

$ 2,474

$ 8,332

$ 206,318

Comprehensive Income

Net Loss for the year

(5,790)

$ (5,790)

(5,790)

Other Comprehensive Income, Net of Tax

Net Changes in Securities Valuation Allowance

5,782

5,782

5,782

Net Changes in Investment Valuation Allowance

2,188

2,188

2,188

Net Changes in Foreign Currency Translation Adjustments

(10)

(10)

(10)

Comprehensive Income

$ 2,170

Stock Held by Executive Obligation Trust

18

371

(371)

-

Stock Issuance

48

1,105

1,105

Tax Benefit-Stock Options Exercised

140

140

Stock Repurchase

(2)

(57)

(57)

Cash Dividend- $0.48 per Share

(5,575)

(5,575)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2002

11,541

$ 72,932

$ 112,774

$ 2,103

$ 16,292

$ 204,101

Comprehensive Income

Net income for the period

4,120

$ 4,120

4,120

Other Comprehensive Income, Net of Tax

Net Changes in Securities Valuation Allowance

(1,332)

(1,332)

(1,332)

Net Changes in Investment Valuation Allowance

-

-

-

Net Changes in Foreign Currency Translation Adjustments

10

10

10

Comprehensive Income

$ 2,798

Stock Issuance

17

312

312

Tax Benefit-Stock Options Exercised

21

21

Stock Repurchase

-

-

Cash Dividend- $0.12 per Share

(1,396)

(1,396)

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2003

11,558

$ 73,265

$ 115,498

$ 2,103

$ 14,970

$ 205,836

For the Three Months

For the Year

Disclosure of Reclassification Amount:

 

 

 

 

 

 

 

 

Ended 03/31/2003

 

Ended 12/31/2002

Net Change of Unrealized Gains (Losses) Arising During Period, Net of Tax

Expense (Benefit) of (966) and $8,971 in 2003 and 2002, respectively.

$ (1,332)

$ 12,365

Less: Reclassification Adjustment for Gains Included in Net Loss, Net of Tax of $4,776 in 2002.

-

(6,583)

Net Change of Unrealized (Losses) Gains on Securities, Net of Tax (Benefit)