|
SECURITIES AND EXCHANGE COMMISSION
FORM 10-Q[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
PARK BANCORP, INC. |
|
Delaware |
|
|
5400 South Pulaski
Road, Chicago, Illinois
60632
(773) 582-8616
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 Act). Yes [ ] No [ X ] Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date. As of October 31, 2003, the Registrant had outstanding 1,154,995 shares of common stock. |
PARK BANCORP, INC.Form 10-Q Quarterly Report Index |
| Page | |||||
|---|---|---|---|---|---|
| PART I – Financial Information | |||||
Item 1 | Financial Statements | 1 |
|||
Item 2 | Management's Discussion and Analysis of Financial Condition and | ||||
| Results of Operations | 7 | ||||
Item 3 | Quantitative and Qualitative Disclosures About Market Risk | 10 |
|||
Item 4 | Controls and Procedures | 11 |
|||
PART II – Other Information | |||||
Item 1 | Legal Proceedings | 12 |
|||
Item 2 | Changes in Securities | 12 |
|||
Item 3 | Defaults Upon Senior Securities | 12 |
|||
Item 4 | Submission of Matters to a Vote of Securities Holders | 12 |
|||
Item 5 | Other Information | 12 |
|||
Item 6 | Exhibits and Reports on Form 8-K | 12 |
|||
SIGNATURES |
13 |
||||
|
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This report contains certain forward-looking statements within the meaning of Section 27a of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Park Bancorp, Inc. (the Company) intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Reform Act of 1995 as amended and is including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words such as “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the operations and future prospects of the Company and its wholly owned subsidiaries include, but are not limited to, changes in: interest rates; the economic health of the local real estate market; general economic conditions; legislative/regulatory provisions; monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board; the quality or composition of the loan or investment portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company’s market area; and accounting principles, policies, and guidelines. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements |
| September 30, 2003 | December 31, 2002 | |||||||
|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||
| Cash and due from banks | $ | 2,418 | $ | 3,226 | ||||
| Federal funds sold | 893 | 16,310 | ||||||
| Interest-bearing deposit accounts in other financial institutions | 2,974 | 4,462 | ||||||
| Total cash and cash equivalents | 6,285 | 23,998 | ||||||
| Time deposits with other financial institutions | 1,143 | 1,117 | ||||||
| Securities available-for-sale | 75,124 | 61,113 | ||||||
| Loans receivable, net | 155,400 | 147,993 | ||||||
| Federal Home Loan Bank stock | 11,907 | 7,327 | ||||||
| Premises and equipment, net | 3,159 | 2,703 | ||||||
| Accrued interest receivable | 1,149 | 1,195 | ||||||
| Bank-owned life insurance | 5,570 | 5,381 | ||||||
| Other assets | 1,186 | 705 | ||||||
Total assets | $ | 260,923 |
$ | 251,532 |
||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Liabilities | ||||||||
| Deposits | ||||||||
| Non-interest-bearing | $ | 5,471 | $ | 4,478 | ||||
| Interest-bearing | 167,972 | 159,490 | ||||||
| Total deposits | 173,443 | 163,968 | ||||||
| Securities sold under repurchase agreements | 8,217 | 10,599 | ||||||
Advances from borrowers for taxes and insurance | 1,019 | 1,969 | ||||||
| Federal Home Loan Bank advances | 47,513 | 43,663 | ||||||
| Accrued interest payable | 193 | 396 | ||||||
| Other liabilities | 1,391 | 1,043 | ||||||
| Total liabilities | 231,776 | 221,638 | ||||||
Stockholders' Equity | ||||||||
| Preferred stock, $.01 par value per share, authorized | ||||||||
| 1,000,000 shares; none issued and outstanding | — | — | ||||||
| Common stock, $.01 par value per share, authorized | ||||||||
| 9,000,000 shares; issued 2,733,138 and 2,719,131 shares | 27 | 27 | ||||||
| Additional paid-in capital | 27,446 | 27,050 | ||||||
| Retained earnings | 28,489 | 27,407 | ||||||
| Treasury stock, 1,578,143 and 1,493,836 shares, at cost | (26,655 | ) | (24,491 | ) | ||||
| Unearned ESOP shares | (869 | ) | (979 | ) | ||||
| Accumulated other comprehensive income | 709 | 880 | ||||||
| Total stockholders' equity | 29,147 | 29,894 | ||||||
Total liabilities and stockholders' equity | $ | 260,923 |
$ | 251,532 |
||||
See notes to consolidated financial statements.
1
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2003 | 2002 | 2003 | 2002 | |||||||||||
| Interest income | ||||||||||||||
| Loans receivable | $ | 2,604 | $ | 2,763 | $ | 7,662 | $ | 8,020 | ||||||
| Securities | 780 | 778 | 2,257 | 2,868 | ||||||||||
| Other interest-bearing deposits | 49 | 98 | 237 | 217 | ||||||||||
| Total | 3,433 | 3,639 | 10,156 | 11,105 | ||||||||||
Interest expense | ||||||||||||||
| Deposits | 925 | 1,321 | 2,980 | 4,317 | ||||||||||
| Federal Home Loan Bank advances | ||||||||||||||
| and other borrowings | 534 | 514 | 1,697 | 1,526 | ||||||||||
| Total | 1,459 | 1,835 | 4,677 | 5,843 | ||||||||||
Net interest income | 1,974 | 1,804 | 5,479 | 5,262 | ||||||||||
Provision for loan losses | — | 30 | — | 80 | ||||||||||
Net interest income after provision for | ||||||||||||||
| loan losses | 1,974 | 1,774 | 5,479 | 5,182 | ||||||||||
Noninterest income | ||||||||||||||
| Gain on sale of real estate held for expansion | — | — | — | 126 | ||||||||||
| Gain on sale of securities available-for-sale | 65 | 54 | 184 | 317 | ||||||||||
| Service fee income | 105 | 60 | 280 | 197 | ||||||||||
| Earnings on bank-owned life insurance | 72 | 73 | 216 | 228 | ||||||||||
| Other operating income | 132 | 5 | 156 | 19 | ||||||||||
| Total noninterest income | 374 | 192 | 836 | 887 | ||||||||||
Noninterest expense | ||||||||||||||
| Compensation and benefits | 830 | 786 | 2,532 | 2,287 | ||||||||||
| Occupancy and equipment | 260 | 179 | 571 | 491 | ||||||||||
| Other operating expenses | 217 | 325 | 853 | 923 | ||||||||||
| Total noninterest expense | 1,307 | 1,290 | 3,956 | 3,701 | ||||||||||
Income before income taxes | 1,041 | 676 | 2,359 | 2,368 | ||||||||||
Income tax expense | 349 | 215 | 783 | 763 | ||||||||||
Net income | $ | 692 | $ | 461 | $ | 1,576 | $ | 1,605 | ||||||
Basic earnings per share | $ | .64 | $ | .41 | $ | 1.43 | $ | 1.43 | ||||||
| Diluted earnings per share | $ | .59 | $ | .39 | $ | 1.34 | $ | 1.38 | ||||||
Comprehensive income | $ | 416 | $ | 1,074 | $ | 1,405 | $ | 2,453 | ||||||
See notes to consolidated financial statements.
2
| Nine Months Ended September 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2003 | 2002 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net income | $ | 1,576 | $ | 1,605 | ||||
| Adjustments to reconcile net income to net cash from | ||||||||
| operating activities | ||||||||
| Net premium amortization on securities | 143 | 26 | ||||||
| Gain on sale of securities available-for-sale | (184 | ) | (317 | ) | ||||
| Gain on sale of real estate held for expansion | — | (126 | ) | |||||
| Earnings on bank-owned life insurance | (216 | ) | (228 | ) | ||||
| Provision for loan losses | — | 80 | ||||||
| Depreciation | 225 | 228 | ||||||
| ESOP compensation expense | 285 | 254 | ||||||
| Federal Home Loan Bank stock dividends | (319 | ) | (194 | ) | ||||
| Net change in: | ||||||||
| Accrued interest receivable | 46 | 84 | ||||||
| Accrued interest payable | (203 | ) | (701 | ) | ||||
| Other assets | (480 | ) | (78 | ) | ||||
| Other liabilities | 348 | 218 | ||||||
| Net cash from operating activities | 1,221 | 851 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
| Purchase of securities available-for-sale | (37,716 | ) | (28,574 | ) | ||||
| Proceeds from sales, calls, and maturities of securities available-for-sale | 9,759 | 32,243 | ||||||
| Principal repayments on mortgage-backed securities | 13,816 | 5,437 | ||||||
| Net increase in loans | (7,407 | ) | (15,467 | ) | ||||
| Proceeds from sale of real estate held for expansion | — | 154 | ||||||
| Purchase of Federal Home Loan Bank stock | (4,261 | ) | — | |||||
| Purchase of premises and equipment | (681 | ) | (449 | ) | ||||
| Net cash from investing activities | (26,490 | ) | (6,656 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
| Net change in deposits | 9,475 | (1,522 | ) | |||||
| Net change in repurchase agreements | (2,382 | ) | (409 | ) | ||||
| Net change in advances from borrowers for taxes and insurance | (950 | ) | 397 | |||||
| Proceeds from in Federal Home Loan Bank advances | 15,850 | 4,000 | ||||||
| Repayments of Federal Home Loan Bank advances | (12,000 | ) | (5,000 | ) | ||||
| Dividends paid | (494 | ) | (436 | ) | ||||
| Stock options exercised | 221 | 272 | ||||||
| Purchase of treasury stock | (2,164 | ) | (357 | ) | ||||
| Net cash from financing activities | 7,556 | (3,055 | ) | |||||
Net change in cash and cash equivalents | (17,713 | ) | (8,860 | ) | ||||
| Cash and cash equivalents at beginning of period | 23,998 | 27,909 | ||||||
Cash and cash equivalents at end of period | $ | 6,285 | $ | 19,049 | ||||
See notes to consolidated financial statements.
3
| Common Stock | Additional Paid-in Capital | Retained Earnings | Unearned ESOP Shares | Treasury Stock | Accumulated Other Compre- hensive Income (Loss) | Total Stock- holders' Equity | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2002 | |||||||||||||||||||||||