SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
| [X ] | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the quarterly period ended September 30, 2002 |
| [ ] | Transition Report Under Section 13 or 15(d) of the Exchange Act For the transition period from _______________ to _______________ |
Commission File No. 000-32915
EVERGREENBANCORP, INC.
(Exact Name of Registrant as Specified in Its Charter)
| WASHINGTON | 91-2097262 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
301 Eastlake Avenue East
Seattle, Washington 98109-5407
(Address of Principal Executive Offices) (Zip Code)
(206) 628-4250
(Registrant’s Telephone Number, Including Area Code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
Common Stock, no par value, outstanding as of September 30, 2002: 1,075,461 shares
No Preferred stock were issued or outstanding.
| PART I | ||||
| FINANCIAL INFORMATION | ||||
| Item 1. Consolidated Financial Statements. | ||||
| The following consolidated financial statements are presented for the registrant, EvergreenBancorp, Inc. | ||||
1. |
Balance Sheets - September 30, 2002 and December 31, 2001. | |||
2. |
Statements of Income - For the three-month and nine-month periods ended September 30, 2002 and 2001. | |||
3. |
Statements of Changes in Shareholders' Equity - For the nine-month periods ended September 30, 2002 and 2001. | |||
4. |
Statements of Cash Flows - For the nine-month periods ended September 30, 2002 and 2001. | |||
5. |
Notes to Consolidated Interim Financial Information. | |||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations. | |||
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk. | |||
Item 4. |
Controls and Procedures | |||
| PART II | ||||
| OTHER INFORMATION | ||||
Item 1. |
Legal Proceedings. | |||
Item 2. |
Changes in Securities and Use of Proceeds. | |||
Item 3. |
Defaults Upon Senior Securities. | |||
Item 4. |
Submission of Matters to a Vote of Security Holders. | |||
Item 5. |
Other Information. | |||
Item 6. |
Exhibits and Reports on Form 8-K. | |||
| (a) Exhibits | ||||
| (b) Reports on Form 8-K | ||||
1
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements.
EvergreenBancorp, Inc.
Consolidated statements of condition
September 30, 2002 and December 31, 2001
(in thousands)
(Unaudited)
| September 30, | December 31, | |||||||||
| 2002 | 2001 | |||||||||
ASSETS |
||||||||||
Cash and cash equivalents: |
||||||||||
Cash and due from banks |
$ | 9,485 | $ | 9,319 | ||||||
Interest- bearing deposits in financial institutions |
801 | 1,547 | ||||||||
Federal funds sold |
13,755 | 6,300 | ||||||||
Total Cash and cash equivalents |
24,041 | 17,166 | ||||||||
Investment securities: |
||||||||||
Available for sale |
22,357 | 15,214 | ||||||||
Total investment securities |
22,357 | 15,214 | ||||||||
Loans |
122,784 | 122,219 | ||||||||
Less allowance for loan losses |
(1,679 | ) | (1,498 | ) | ||||||
Net loans |
121,105 | 120,721 | ||||||||
Premises and equipment |
2,126 | 1,925 | ||||||||
Accrued income and other assets |
1,717 | 1,339 | ||||||||
TOTAL ASSETS |
$ | 171,346 | $ | 156,365 | ||||||
LIABILITIES |
||||||||||
Deposits: |
||||||||||
Noninterest bearing |
$ | 36,067 | $ | 38,233 | ||||||
Interest bearing |
96,651 | 92,111 | ||||||||
Total Deposits |
132,718 | 130,344 | ||||||||
Federal funds purchased and securities sold under
agreements to repurchase |
3,958 | 5,597 | ||||||||
Advances from Federal Home Loan Bank |
12,427 | 4,005 | ||||||||
Guaranteed preferred beneficial interests in subordinated debt |
5,000 | |||||||||
Accrued expenses and other liabilities |
1,658 | 1,681 | ||||||||
TOTAL LIABILITIES |
$ | 155,761 | $ | 141,627 | ||||||
STOCKHOLDERS’ EQUITY |
||||||||||
Preferred stock: No par value; 100,000 shares authorized;
issued and outstanding — none |
0 | 0 | ||||||||
Common stock and surplus: No par value;
15,000,000 shares authorized;1,075,461 and 934,817 shares issued
and outstanding |
11,490 | 11,485 | ||||||||
Retained earnings |
4,016 | 3,198 | ||||||||
Accumulated other comprehensive income(loss) |
79 | 55 | ||||||||
TOTAL
STOCKHOLDERS’ EQUITY |
15,585 | 14,738 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 171,346 | $ | 156,365 | ||||||
See accompanying notes to consolidated financial statements
2
EvergreenBancorp, Inc.
Consolidated statements of income
Three-month and nine-month periods ended September 30, 2002 and 2001
(in thousands, except per share data)
(unaudited)
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | ||||||||||||||||
INTEREST AND DIVIDEND INCOME |
|||||||||||||||||||
Loans, including fees |
$ | 2,506 | $ | 2,688 | $ | 7,543 | $ | 8,160 | |||||||||||
Federal funds sold and other |
58 | 145 | 167 | 411 | |||||||||||||||
Investment securities: |
|||||||||||||||||||
Held to maturity |
0 | 0 | 0 | 66 | |||||||||||||||
Available for sale |
239 | 111 | 533 | 329 | |||||||||||||||
TOTAL INTEREST AND DIVIDEND INCOME |
2,803 | 2,944 | 8,243 | 8,966 | |||||||||||||||
INTEREST EXPENSE |
|||||||||||||||||||
Deposits |
492 | 888 | 1,623 | 2,893 | |||||||||||||||
Federal funds purchased and securities
sold under agreements to repurchase |
13 | 45 | 46 | 213 | |||||||||||||||
Advances from Federal Home Loan Bank |
134 | 60 | 273 | 147 | |||||||||||||||
Interest expense on guaranteed preferred beneficial interests
in subordinated debt |
68 | 0 | 98 | 0 | |||||||||||||||
TOTAL INTEREST EXPENSE |
707 | 993 | 2,040 | 3,253 | |||||||||||||||
NET INTEREST INCOME |
2,096 | 1,951 | 6,203 | 5,713 | |||||||||||||||
Provision for loan losses |
102 | 124 | 290 | 432 | |||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
1,994 | 1,827 | 5,913 | 5,281 | |||||||||||||||
NONINTEREST INCOME |
|||||||||||||||||||
Service charges on deposit accounts |
193 | 167 | 529 | 544 | |||||||||||||||
Merchant credit card processing |
245 | 353 | 762 | 964 | |||||||||||||||
Gain on sales of loans and available-for-sale securities |
10 | 76 | 10 | 118 | |||||||||||||||
Other noninterest income |
148 | 157 | 460 | 619 | |||||||||||||||
TOTAL NONINTEREST INCOME |
596 | 753 | 1,761 | 2,245 | |||||||||||||||
NONINTEREST EXPENSE |
|||||||||||||||||||
Salaries and employee benefits |
977 | 997 | 2,890 | 2,891 | |||||||||||||||
Merchant credit card processing |
209 | 307 | 650 | 820 | |||||||||||||||
Occupancy and equipment |
301 | 299 | 892 | 784 | |||||||||||||||
Other noninterest expense |
576 | 570 | 1,768 | 1,663 | |||||||||||||||
TOTAL NONINTEREST EXPENSE |
2,063 | 2,173 | 6,200 | 6,158 | |||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE |
527 | 407 | 1,474 | 1,368 | |||||||||||||||
INCOME TAX EXPENSE |
177 | 128 | 488 | 429 | |||||||||||||||
NET INCOME |
$ | 350 | $ | 279 | $ | 986 | $ | 939 | |||||||||||
Basic earnings per share of common stock* |
$ | 0.32 | $ | 0.26 | $ | 0.92 | $ | 0.84 | |||||||||||
Weighted average number of common stock shares outstanding-basic* |
1,075,461 | 1,074,237 | 1,075,198 | 1,117,974 | |||||||||||||||
Diluted earnings per share of common stock* |
$ | 0.30 | $ | 0.24 | $ | 0.86 | $ | 0.80 | |||||||||||
Weighted average number of common stock shares outstanding
and assumed conversions-diluted* |
1,154,609 | 1,145,566 | 1,147,292 | 1,175,585 | |||||||||||||||
| * | Retroactively adjusted for the shares issued pursuant to the 2001 three-for-two stock split and 2002 15% stock dividend |
See accompanying notes to consolidated financial statements.
3
EvergreenBancorp, Inc
Consolidated Statements of Stockholders’ Equity
For the nine-month periods ended September 30, 2002 and 2001
(in thousands, except shares and per share data)
(unaudited)
| Accumulated | ||||||||||||||||||||||||||||||||
| Other | Total | |||||||||||||||||||||||||||||||
| Common Stock | Common stock | Common stock | Retained | Comprehensive | Stockholders' | |||||||||||||||||||||||||||
| Shares | and surplus | Par Value | Surplus | Earnings | Income | Equity | ||||||||||||||||||||||||||
Balance at January 1, 2001 |
663,462 | $ | 6,634 | $ | 5,838 | $ | 2,124 | ($19 | ) | $ | 14,577 | |||||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||
Net income |
939 | 939 | ||||||||||||||||||||||||||||||
Other comprehensive income,
net of tax: |
||||||||||||||||||||||||||||||||
Change in unrealized gain(loss) on
securities available for sale, net of
deferred income tax of $62 |
122 | |||||||||||||||||||||||||||||||
Reclassification adjustments included
in net income, net of deferred income tax benefit of $(40) |
(76 | ) | 46 | |||||||||||||||||||||||||||||
Total comprehensive income |
$ | 985 | ||||||||||||||||||||||||||||||
Cumulative effect of reclassifying certain
securities from held to maturity to available
for sale as of June 1, 2001, net of deferred income tax of $16 |
31 | 31 | ||||||||||||||||||||||||||||||
Change in par value of common stock from
$10 to $1 |
(5,971 | ) | 5,971 | |||||||||||||||||||||||||||||
Cash dividends paid ($0.145 per share)* |
(166 | ) | (166 | ) | ||||||||||||||||||||||||||||
Repurchase of common stock |
(40,700 | ) | (40 | ) | (957 | ) | (997 | ) | ||||||||||||||||||||||||
Three-for-two stock split |
311,355 | |||||||||||||||||||||||||||||||
Balance at September 30, 2001 |
934,117 | 0 | 623 | 10,852 | $ | 2,897 | $ | 58 | $ | 14,430 | ||||||||||||||||||||||
Balance at January 1, 2002 |
934,817 | $ | 11,485 | $ | 0 | $ | 0 | $ | 3,198 | $ | 55 | $ | 14,738 | |||||||||||||||||||
Comprehensive income: |
||||||||||||||||||||||||||||||||