FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
| (Mark one) | ||
| [X] |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
| For the quarterly period ended September 30, 2003 | ||
| [ ] |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
| For the transition period from to | ||
OREGON PACIFIC BANCORP
| Oregon (State or other jurisdiction of incorporation or organization) |
71-0918151 (I.R.S. Employer Identification No.) |
1355 Highway 101
Florence, Oregon 97439
(Address of principal executive offices)
(541) 997-7121
(Issuer’s telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the 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 [ ]
The number of shares outstanding of the issuer’s Common Stock, no par value, as of October 31, 2003, was 2,169,042.
OREGON PACIFIC BANCORP
INDEX
| Part I. | Financial Information | |||||
| Item 1. | Financial statements Consolidated Balance Sheets | 3 | ||||
| Consolidated Statements of Income and Comprehensive Income | 4-5 | |||||
| Consolidated Statements of Changes in Stockholders’ Equity | 6 | |||||
| Consolidated Statements of Cash Flows | 7-8 | |||||
| Notes to Consolidated Financial Statements | 9-11 | |||||
| Item 2. | Management’s Discussion and Analysis or Plan of Operation | 11-16 | ||||
| Item 3. | Quantitive and Qualitive Disclosures about Market Risk | 16-17 | ||||
| Item 4. | Controls and Procedures | 17 | ||||
| Part II. | Other Information | 17-18 | ||||
| Signatures | 19 | |||||
| Certification of Chief Executive Officer and Chief Financial Officer | 21-22 | |||||
2
Item 1. Financial statements
OREGON PACIFIC BANCORP
CONSOLIDATED BALANCE SHEETS
| Unaudited | Audited | |||||||||||
| September 30, | DECEMBER 31, | |||||||||||
| 2003 | 2002 | |||||||||||
ASSETS |
||||||||||||
Cash and due from banks |
$ | 4,649,309 | $ | 3,886,203 | ||||||||
Interest-bearing deposits in banks |
6,059,327 | 8,078,510 | ||||||||||
Available-for-sale securities, at fair value |
17,946,760 | 13,913,137 | ||||||||||
Restricted equity securities |
862,500 | 831,750 | ||||||||||
Loans held for sale |
4,932,349 | 5,327,661 | ||||||||||
Loans, net of allowance for loan
losses and unearned income |
80,474,932 | 70,988,652 | ||||||||||
Premises & equipment, net |
3,868,742 | 2,726,595 | ||||||||||
Other real estate owned |
9,746 | 117,494 | ||||||||||
Accrued interest and other assets |
1,474,705 | 1,149,886 | ||||||||||
Total assets |
$ | 120,278,370 | $ | 107,019,888 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||||||
Deposits |
||||||||||||
Demand deposits |
$ | 23,571,486 | $ | 18,512,436 | ||||||||
Interest-bearing demand deposits |
42,954,171 | 35,996,332 | ||||||||||
Savings deposits |
14,541,884 | 12,750,616 | ||||||||||
Time certificate accounts: |
||||||||||||
$100,000 or more |
7,059,660 | 7,629,913 | ||||||||||
Other time certificate accounts |
13,397,206 | 13,625,754 | ||||||||||
Total deposits |
101,524,407 | 88,515,051 | ||||||||||
Other liabilities |
||||||||||||
Federal Home Loan Bank borrowings |
8,351,555 | 8,852,500 | ||||||||||
Other borrowings |
175,000 | — | ||||||||||
Deferred compensation liability |
892,717 | 795,272 | ||||||||||
Accrued interest and other liabilities |
814,553 | 964,143 | ||||||||||
Total liabilities |
111,758,232 | 99,126,966 | ||||||||||
Stockholders’ equity |
||||||||||||
Common stock, no par value, 10,000,000 shares
authorized with 2,169,042 and 2,135,244 issued
and outstanding at September 30, 2003 and
December 31, 2002, respectively |
4,864,374 | 939,507 | ||||||||||
Surplus |
— | 3,730,019 | ||||||||||
Undivided profits |
3,171,841 | 2,735,032 | ||||||||||
Accumulated other comprehensive
income, net of tax |
483,923 | 488,364 | ||||||||||
Total stockholders’ equity |
8,520,138 | 7,892,922 | ||||||||||
Total liabilities and stockholders’ equity |
$ | 120,278,370 | $ | 107,019,888 | ||||||||
See accompanying notes.
3
OREGON PACIFIC BANCORP
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||||
INTEREST INCOME |
||||||||||||||||||
Interest and fees on loans |
$ | 1,621,427 | $ | 1,423,743 | $ | 4,761,034 | $ | 3,923,358 | ||||||||||
Interest on investment securities: |
— | |||||||||||||||||
U.S. Treasuries and agencies |
38,650 | 26,648 | 94,358 | 132,957 | ||||||||||||||
State and political subdivisions |
92,825 | 93,825 | 274,379 | 393,797 | ||||||||||||||
Corporate and other investments |
36,831 | 72,144 | 198,263 | 209,614 | ||||||||||||||
Interest on deposits in banks |
13,674 | 34,299 | 52,340 | 54,358 | ||||||||||||||
Total interest income |
1,803,407 | 1,650,659 | 5,380,374 | 4,714,084 | ||||||||||||||
INTEREST EXPENSE |
||||||||||||||||||
Interest-bearing demand deposits |
117,755 | 130,746 | 422,801 | 330,196 | ||||||||||||||
Savings deposits |
35,005 | 49,955 | 111,658 | 148,773 | ||||||||||||||
Time deposits |
128,243 | 163,286 | 421,236 | 532,541 | ||||||||||||||
Other borrowings |
85,774 | 100,160 | 271,783 | 248,761 | ||||||||||||||
Total interest expense |
366,777 | 444,147 | 1,227,478 | 1,260,271 | ||||||||||||||
Net interest income |
1,436,630 | 1,206,512 | 4,152,896 | 3,453,813 | ||||||||||||||
PROVISION FOR LOAN LOSSES |
40,000 | 100,000 | 130,000 | 179,000 | ||||||||||||||
Net interest income after
provision for loan losses |
1,396,630 | 1,106,512 | 4,022,896 | 3,274,813 | ||||||||||||||
NONINTEREST INCOME |
||||||||||||||||||
Mortgage loan sales and servicing fees |
341,732 | 236,076 | 1,046,659 | 649,983 | ||||||||||||||
Service charges and fees |
129,006 | 100,624 | 341,264 | 278,581 | ||||||||||||||
Investment sales commissions |
62,837 | 44,392 | 110,005 | 162,594 | ||||||||||||||
Trust fee income |
115,871 | 99,126 | 333,462 | 274,893 | ||||||||||||||
Other income |
22,572 | 22,968 | 71,476 | 65,574 | ||||||||||||||
Total noninterest income |
672,018 | 503,186 | 1,902,866 | 1,431,625 | ||||||||||||||
4
OREGON PACIFIC BANCORP
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Unaudited)
(continued)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||||
NONINTEREST EXPENSE |
||||||||||||||||||
Salaries and benefits |
$ | 1,045,148 | $ | 861,430 | $ | 3,054,936 | $ | 2,461,288 | ||||||||||
Occupancy |
155,973 | 137,527 | 468,201 | 377,530 | ||||||||||||||
Supplies |
44,654 | 47,144 | 143,125 | 133,644 | ||||||||||||||
Postage and freight |
21,339 | 18,858 | 71,536 | 56,157 | ||||||||||||||
Outside services |
141,332 | 110,492 | 471,237 | 302,383 | ||||||||||||||
Advertising |
23,065 | 36,297 | 82,584 | 86,052 | ||||||||||||||
Loan collection expense |
67,419 | 18,421 | 152,760 | 52,189 | ||||||||||||||
Securities and trust department expenses |
32,339 | 34,151 | 96,960 | 134,096 | ||||||||||||||
Other expenses |
107,477 | 95,339 | 375,011 | 288,009 | ||||||||||||||
Total noninterest expense |
1,638,746 | 1,359,659 | 4,916,350 | 3,891,348 | ||||||||||||||
INCOME BEFORE INCOME TAXES |
429,903 | 250,039 | 1,009,412 | 815,090 | ||||||||||||||
PROVISION FOR INCOME TAXES |
156,492 | 62,000 | 293,664 | 185,000 | ||||||||||||||
NET INCOME |
273,411 | 188,039 | 715,748 | 630,090 | ||||||||||||||
OTHER COMPREHENSIVE INCOME |
||||||||||||||||||
Unrealized holding gain/(loss)
arising during the period, net of tax |
(58,249 | ) | 127,553 | (4,441 | ) | 229,604 | ||||||||||||
COMPREHENSIVE INCOME |
$ | 215,162 | $ | 315,592 | $ | 711,307 | $ | 859,694 | ||||||||||
EARNINGS PER SHARE OF
COMMON STOCK |
||||||||||||||||||
Basic earnings per share |
$ | 0.13 | $ | 0.09 | $ | 0.33 | $ | 0.30 | ||||||||||
Diluted earnings per share |
$ | 0.13 | $ | 0.09 | $ | 0.33 | $ | 0.30 | ||||||||||
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING |
||||||||||||||||||
Basic earnings per share |
2,166,808 | 2,121,987 | 2,151,496 | 2,121,095 | ||||||||||||||
Diluted earnings per share |
2,169,102 | 2,131,922 | 2,153,950 | 2,127,843 | ||||||||||||||
See Accompanying Notes
5
OREGON PACIFIC BANCORP
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
| Accumulated | ||||||||||||||||||||||||
| Other | Total | |||||||||||||||||||||||
| Common Stock | Undivided | Comprehensive | Stockholders’ | |||||||||||||||||||||
| Shares | Amount | Surplus | Profits | Income | Equity | |||||||||||||||||||
Balance, December 31, 2001 (Audited) |
2,112,493 | $ | 929,497 | $ | 3,609,063 | $ | 2,295,068 | $ | 277,687 | $ | 7,111,315 | |||||||||||||
Cash dividends paid |
— | — | — | (250,879 | ) | — | (250,879 | ) | ||||||||||||||||
Dividends reinvested in stock |
22,751 | 10,010 | 120,956 | (130,966 | ) | — | — | |||||||||||||||||
Net income and comprehensive income |
— | — | — | 821,809 | 210,677 | 1,032,486 | ||||||||||||||||||
Balance, December 31, 2002 (Audited) |
2,135,244 | $ | 939,507 | $ | 3,730,019 | $ | 2,735,032 | $ | 488,364 | $ | 7,892,922 | |||||||||||||
Change in capitalization as a result
of holding company formation |
— | 3,730,019 | (3,730,019 | ) | — | — | — | |||||||||||||||||
Exercise of stock options |
20,000 | 100,000 | — | — | — | 100,000 | ||||||||||||||||||
Cash dividends paid |
— | — | — | (184,091 | ) | — | (184,091 | ) | ||||||||||||||||
Dividends reinvested in stock |
13,798 | 94,848 | — | (94,848 | ) | — | — | |||||||||||||||||
Net income and comprehensive income |
— | — | — | 715,748 | (4,441 | ) | 711,307 | |||||||||||||||||
Balance, September 30, 2003 (Unaudited) |
2,169,042 | $ | 4,864,374 | $ | — | $ | 3,171,841 | $ | 483,923 | $ | 8,520,138 | |||||||||||||
See Accompanying Notes
6
OREGON PACIFIC BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, | ||||||||||
| 2003 | ||||||||||