RESOURCE BANKSHARES CORP - 10-Q Quarterly Report

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U.S. 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 MARCH 31, 2003

Commission File Number: 001-14319

RESOURCE BANKSHARES CORPORATION

(Exact name of Registrant as specified in its charter)

Virginia
(State or other jurisdiction of
incorporation or organization)

54-1904386
(I.R.S. Employer Identification No.)

3720 Virginia Beach Blvd., Virginia Beach, VA
(Address of principal executive offices)

23452
(Zip Code)

(757) 463-2265
(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 o

Indicate by check mark whether the registrant is an accelerated file (as defined in Rule 12b-2 of the Exchange Act) Yes o No x

At March 31, 2003, 3,979,167 shares of Resource Bankshares Corporation’s common stock, $1.50 par value, were outstanding.

RESOURCE BANKSHARES CORPORATION
FORM 10-Q
MARCH 31, 2003

INDEX



PART I.	FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Consolidated Balance Sheets as of March 31, 2003 and December 31, 2002	3

		Consolidated Statements of Income for the periods ended March 31, 2003 and 2002	4

		Consolidated Statements of Stockholders’ Equity for the period ended March 31, 2003	5

		Consolidated Statements of Cash Flows for the periods ended March 31, 2003 and 2002	6

		Notes to Consolidated Financial Statements	7

	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	11

	Item 3.	Quantitative and Qualitative Disclosures about Market Risks	20

	Item 4.	Controls and Procedures	20

PART II.	OTHER INFORMATION

	Item 1.	Legal Proceedings	21

	Item 4.	Submission of Matters to a Vote of Security Holders	21

	Item 6.	Exhibits and Reports on Form 8-K	21

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PART I - FINANCIAL INFORMATION

Item 1.

Financial Statements

RESOURCE BANKSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS

	March 31 2003			December 31 2003

	(Unaudited)
	(Dollars in thousands)

ASSETS
Cash and due from banks	$	7,205		$	11,252
Interest bearing deposits		179			2,147

		7,384			13,399
Funds advanced in settlement of mortgage loans		81,326			111,113
Securities available for sale (amortized cost of $21,901 and $21,213, respectively)		21,894			21,191
Securities held to maturity (fair value of $128,277 and $111,999, respectively)		125,399			108,650
Loans, net
Commercial		106,850			96,807
Real estate – construction		136,581			122,839
Commercial real estate		171,512			158,954
Residential real estate		50,099			49,176
Installment and consumer loans		5,009			4,968

TOTAL LOANS		470,051			432,744
Allowance for loan losses		(5,153	)		(5,009	)

NET LOANS		464,898			427,735
Other real estate owned		75			—
Premises and equipment, net		10,207			10,239
Cash surrender value of life insurance		12,785			9,574
Other assets		9,113			9,411
Accrued interest		4,028			3,855

	$	737,109		$	715,167


LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Non-interest bearing	$	23,094		$	24,390
Interest bearing		489,251			492,059

TOTAL DEPOSITS		512,345			516,449
Federal funds purchased and securities sold under agreements to repurchase		46,401			32,347
FHLB advances		96,000			105,000
Other liabilities		11,171			9,482
Accrued interest		3,368			3,522
Capital debt securities		16,200			16,200

TOTAL LIABILITIES		685,485			683,000

STOCKHOLDERS’ EQUITY
Preferred stock, par value $10 per share, Shares authorized: 500,000; none issued and outstanding		—			—
Common stock, par value $1.50 a share Shares authorized: 6,666,666 Shares issued and outstanding: 2003 – 3,979,167; 2002 3,027,461		5,969			4,541
Additional paid-in capital		31,035			14,230
Retained earnings		14,440			12,758
Accumulated other comprehensive income		180			638

		51,624			32,167

	$	737,109		$	715,167

See notes to consolidated financial statements.

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RESOURCE BANKSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

	Three months ended March 31

	2003			2002

	(Dollars in Thousands)
Interest and dividend income
Interest and fees on loans	$	5,991		$	5,293

Interest on investment securities:
Taxable		1,948			1,839
Tax exempt		186			180

		2,134			2,019

Interest on funds advanced in settlement of mortgage loans		1,509			857

Total interest income		9,634			8,169

Interest expense
Interest on deposits		3,126			3,650
Interest on borrowings		1,091			1,043
Interest on capital debt securities		292			288

Total interest expense		4,509			4,981

Net interest income		5,125			3,188
Provision for loan losses		(150	)		(70	)

Net interest income after provision for loan losses		4,975			3,118
Noninterest income
Mortgage banking income		6,556			3,991
Service charges		154			157
Gain on sale of assets		—			348
Gain on sale of securities		62			236
Other		442			363

		7,214			5,095

Noninterest expense
Salaries and employee benefits		6,132			4,262
Occupancy expenses		522			429
Depreciation and equipment maintenance		543			501
Stationery and supplies		226			211
Marketing and business development		236			152
Professional fees		252			36
Outside computer services		255			226
FDIC insurance		19			18
Other		880			581

		9,065			6,416

Income before income tax		3,124			1,797
Income tax expense		921			519

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