 |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended June 30, 2002
OR
 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Transition Period from ___________ to ___________
Commission file number 0-21656
HUMBOLDT BANCORP
| California | 93-1175466 | |
| (State of Incorporation) | (I.R.S. Employer Identification No.) | |
| 2998 Douglas Boulevard, Suite 330 Roseville, California |
95661 |
|
| Address of Principal Executive Offices | (Zip Code) | |
(916)-783-2812
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 NO
Common stock, no par value: 10,484,884 shares
outstanding as of August 13, 2002
1
INDEX
PART I Financial Information |
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Item 1. Financial Statements |
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Consolidated Balance Sheets (unaudited) at June 30, 2002 and December
31, 2001 |
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Consolidated Statements of Operations (unaudited) for the Three and Six
Months Ended June 30, 2002 and 2001 |
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Consolidated Statements of Cash Flows (unaudited) for the Six Months
Ended June 30, 2002 and 2001 |
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Notes to Unaudited Consolidated Financial Statements |
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Item 2. Management’s Discussion and Analysis of Financial Condition
and Results of Operations |
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Item 3. Quantitative and Qualitative Disclosures About Market Risk |
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PART II Other Information |
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Item 1. Legal Proceedings |
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Item 2. Changes in Securities |
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Item 3. Defaults Upon Senior Securities |
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Item 4. Submission of Matters to a Vote of Security Holders |
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Item 5. Other Information |
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Item 6. Exhibits and Reports on Form 8-K |
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2
Part 1 — Financial Information
Item 1 — Financial Statements
HUMBOLDT BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
| June 30, | December 31, | ||||||||||
| 2002 | 2001 | ||||||||||
| (Restated) | |||||||||||
| (dollars in thousands) | |||||||||||
| (unaudited) | |||||||||||
ASSETS |
|||||||||||
Cash and due from banks |
$ | 37,145 | $ | 54,567 | |||||||
Interest-bearing deposits in other banks |
1,059 | 920 | |||||||||
Investment securities available-for-sale, at fair value |
176,126 | 172,473 | |||||||||
Loans and leases |
714,078 | 664,332 | |||||||||
Less: allowance for loan and lease losses |
10,468 | 9,765 | |||||||||
Net loans |
703,610 | 654,567 | |||||||||
Premises and equipment, net |
17,540 | 19,270 | |||||||||
Net assets of discontinued operations |
— | 6,669 | |||||||||
Accrued interest receivable and other assets |
48,219 | 50,451 | |||||||||
TOTAL ASSETS |
$ | 983,699 | $ | 958,917 | |||||||
LIABILITIES |
|||||||||||
Deposits |
|||||||||||
Noninterest-bearing |
$ | 212,657 | $ | 213,092 | |||||||
Interest-bearing |
590,141 | 593,994 | |||||||||
Total deposits |
802,798 | 807,086 | |||||||||
Accrued interest payable and other liabilities |
22,252 | 21,539 | |||||||||
Borrowed funds |
68,708 | 45,560 | |||||||||
Guaranteed Preferred Beneficial Interests in Company’s
Junior Subordinated Debentures (Trust Preferred
Securities) |
20,150 | 20,150 | |||||||||
Net liabilities of discontinued operations |
54 | — | |||||||||
TOTAL LIABILITIES |
913,962 | 894,335 | |||||||||
STOCKHOLDERS’ EQUITY |
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Common stock, no par value; 50,000,000 shares
authorized, 10,366,000 shares in 2002 and 10,350,000
shares in 2001 issued and outstanding |
65,485 | 67,459 | |||||||||
Retained earnings (accumulated deficit) |
1,876 | (3,265 | ) | ||||||||
Accumulated other comprehensive income |
2,376 | 388 | |||||||||
TOTAL STOCKHOLDERS’ EQUITY |
69,737 | 64,582 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 983,699 | $ | 958,917 | |||||||
See accompanying notes to the consolidated financial statements
3
HUMBOLDT BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three | For the Six | |||||||||||||||||||
| Months Ended June 30, | Months Ended June 30, | |||||||||||||||||||
| 2002 | 2001 | 2002 | 2001 | |||||||||||||||||
| (Restated) | (Restated) | |||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
INTEREST INCOME |
||||||||||||||||||||
Interest and fees on loans and leases |
$ | 13,593 | $ | 13,946 | $ | 26,923 | $ | 28,157 | ||||||||||||
Interest and dividends on investment securities |
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Taxable |
1,841 | 1,799 | 3,551 | 3,497 | ||||||||||||||||
Exempt from Federal income tax |
361 | 398 | 721 | 809 | ||||||||||||||||
Interest on deposits |
7 | 470 | 14 | 913 | ||||||||||||||||
Total Interest Income |
15,802 | 16,613 | 31,209 | 33,376 | ||||||||||||||||
INTEREST EXPENSE |
||||||||||||||||||||
Interest on deposits |
3,445 | 6,839 | 7,158 | 13,766 | ||||||||||||||||
Interest on borrowed funds and other |
983 | 757 | 1,895 | 1,588 | ||||||||||||||||
Total Interest Expense |
4,428 | 7,596 | 9,053 | 15,354 | ||||||||||||||||
NET INTEREST INCOME |
11,374 | 9,017 | 22,156 | 18,022 | ||||||||||||||||
Provision for loan losses |
642 | 583 | 1,088 | 1,377 | ||||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
10,732 | 8,434 | 21,068 | 16,645 | ||||||||||||||||
NON-INTEREST INCOME |
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Fees and other income |
5,281 | 5,906 | 10,473 | 11,380 | ||||||||||||||||
Service charges on deposit accounts |
992 | 973 | 2,145 | 2,324 | ||||||||||||||||
Net gain on sale of loans |
796 | 378 | 1,149 | 466 | ||||||||||||||||
Net investment securities gain |
296 | 30 | 296 | 156 | ||||||||||||||||
Total Non-interest Income |
7,365 | 7,287 | 14,063 | 14,326 | ||||||||||||||||
OTHER EXPENSES |
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Salaries and employee benefits |
6,560 | 6,728 | 13,378 | 12,736 | ||||||||||||||||
Net occupancy and equipment expense |
1,596 | 1,407 | 3,171 | 2,712 | ||||||||||||||||
Merger Related Items |
— | — | — | 3,531 | ||||||||||||||||
Other expenses |
5,523 | 4,220 | 10,530 | 8,321 | ||||||||||||||||
Total Other Expenses |
13,679 | 12,355 | 27,079 | 27,300 | ||||||||||||||||
Income Before Income Taxes |
4,418 | 3,366 | 8,052 | 3,671 | ||||||||||||||||
Provision for income taxes |
1,281 | 1,047 | 2,377 | 1,392 | ||||||||||||||||
NET INCOME CONTINUING OPERATIONS |
3,137 | 2,319 | 5,675 | 2,279 | ||||||||||||||||
DISCONTINUED OPERATIONS |
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Loss on wind-down of discontinued operations, net of tax |
(276 | ) | (13,532 | ) | (276 | ) | (14,594 | ) | ||||||||||||
NET INCOME (LOSS) |
$ | 2,861 | ($11,213 | ) | $ | 5,399 | ($12,315 | ) | ||||||||||||
EARNINGS (LOSS) PER SHARE — BASIC: |
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Continuing Operations |
$ | 0.30 | $ | 0.22 | $ | 0.55 | $ | 0.22 | ||||||||||||
Discontinued Operations |
($0.02 | ) | ($1.30 | ) | ($0.03 | ) | ($1.41 | ) | ||||||||||||
Net income (loss) |
$ | 0.28 | ($1.08 | ) | $ | 0.52 | ($1.19 | ) | ||||||||||||
EARNINGS (LOSS) PER SHARE — DILUTED: |
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Continuing Operations |
$ | 0.29 | $ | 0.21 | $ | 0.52 | $ | 0.21 | ||||||||||||
Discontinued Operations |
($0.03 | ) | ($1.25 | ) | ($0.02 | ) | ($1.34 | ) | ||||||||||||
Net income (loss) |
$ | 0.26 | ($1.04 | ) | $ | 0.50 | ($1.13 | ) | ||||||||||||
BASIC SHARES OUTSTANDING |
10,322 | 10,336 | 10,373 | 10,333 | ||||||||||||||||
DILUTED SHARES OUTSTANDING |
10,890 | 10,807 | 10,853 | 10,853 | ||||||||||||||||
See accompanying notes to the consolidated financial statements
4
HUMBOLDT BANCORP AND SUBSIDIARIES
STATEMENTS OF CASH FLOWS
For the six months ended June 30, 2002 and 2001
| 2002 | 2001 | |||||||||
| Restated | ||||||||||
| (dollars in thousands) | ||||||||||
| (unaudited) | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
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Net income (loss) |
$ | 5,399 | $ | (12,315 | ) | |||||
Adjustments to reconcile net income
to net cash provided by operating activities: |
||||||||||
Wind-down of discontinued Operations |
276 | 14,954 | ||||||||
Depreciation and amortization |
2,935 | 2,031 | ||||||||
Provision for loan losses |
1,088 | 1,377 | ||||||||
Gain on sale of securities |
(296 | ) | (156 | ) | ||||||
Net change in other assets |
2,232 | 897 | ||||||||
Net change in other liabilities |
713 | 1,887 | ||||||||
Net change in loans held for sale |
— | 373 | ||||||||
Net gain on sale of loans |
(1,149 | ) | (466 | ) | ||||||
Net cash provided by operating activities |
$ | 11,198 | $ | 8,582 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES, NET OF PURCHASE ACQUISITIONS: |
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Proceeds from sale/maturities of securities available for sale |
$ | 62,126 | $ | 59,614 | ||||||
Proceeds from maturities of securities held to maturity |
— | 355 | ||||||||
Purchases of securities available for sale |
(62,743 | ) | (50,328 | ) | ||||||
Purchases of securities held to maturity |
— | (155 | ) | |||||||
Net change in loans |
(48,982 | ) | (41,223 | ) | ||||||
Federal funds sold, net |
— | (15,880 | ) | |||||||
Net change in interest-bearing deposits in banks |
(139 | ) | (4,995 | ) | ||||||
Investing activities related to wind-down of discontinued operations |
3,795 | (13,606 | ) | |||||||
Proceeds from sale of foreclosed real estate |
503 | — | ||||||||
Proceeds from disposal of premises and equipment |
846 | — | ||||||||
Purchases of bank premises and equipment |
(654 | ) | (2,030 | ) | ||||||
Net cash used in investing activities |
$ | (45,248 | ) | $ | (68,248 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES, NET OF PURCHASE ACQUISITIONS |
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Net change in deposits |
$ | (4,288 | ) | $ | 61,064 | |||||
Payments on borrowed funds |
(9,683 | ) | (16,352 | ) | ||||||
Proceeds from borrowed funds |
32,831 | 3,688 | ||||||||
Repurchase of common stock |
(3,018 | ) | — | |||||||
Proceeds of issuance of trust preferred securities |
— | 5,000 | ||||||||
Payments of cash dividends |
(258 | ) | — | |||||||
Proceeds from issuance of stock for exercised options |
1,044 | 88 | ||||||||
Net cash provided by financing activities |
16,628 | 53,488 | ||||||||
Net change in cash and cash equivalents |
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