Back to GetFilings.com



Table of Contents
 
 
UNITED STATES SECURITY AND EXCHANGE COMMISSION
Washington D.C. 20549
 
 
FORM 10-Q
 
(Mark One)
[X]
 
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 No. 0-20251
 
 
Crescent Banking Company
(Exact Name of Registrant as Specified in its Charter)
 
Georgia
  
58-1968323
(State of Incorporation)
  
(I.R.S.Employer Identification No.)
 
251 Highway 515, Jasper, GA
  
30143
(Address of principal executive offices)
  
(Zip code)
 
(706) 692-2424
(Registrant’s telephone number, including area code)
 
Not applicable
(Former name, former address and former fiscal year, if changed since last report)
 
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 the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
 
Common stock, $1 par value per share, 2,429,412 shares issued and outstanding as of August 9, 2002. 6,668 shares are held as treasury stock.
 

Table of Contents
 
CRESCENT BANKING COMPANY
 
INDEX
 
         
Page No.
Part 1.
        
Item 1.
        
       
3
       
4
       
5
       
6
Item 2.
      
11
Item 3.
      
25
Part II.
        
Item 1.
      
28
Item 2.
      
28
Item 3.
      
28
Item 4.
      
28
Item 5.
      
28
Item 6.
      
28

2

Table of Contents
 
PART I— FINANCIAL INFORMATION
 
CRESCENT BANKING COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
    
June 30, 2002
     
December 31, 2001
  
Assets
                  
Cash and due from banks
   
$
10,335,727
 
   
$
11,936,985
 
Interest bearing deposits in other banks
   
 
1,165,603
 
   
 
235,660
 
Federal fund sold
   
 
11,622,000
 
   
 
179,000
 
Securities available-for-sale
   
 
9,908,847
 
   
 
8,931,589
 
Securities held-to-maturity, at cost (fair value of $10,229,475 and $10,351,765, respectively)
   
 
10,228,250
 
   
 
10,414,845
 
Restricted equity securities
   
 
2,220,975
 
   
 
1,920,975
 
Mortgage loans held for sale
   
 
158,695,823
 
   
 
313,467,820
 
Loans
   
 
156,067,657
 
   
 
123,611,401
 
Less allowance for loan losses
   
 
(1,976,547
)
   
 
(1,596,287
)
    
  
Loans, net
   
 
154,091,110
 
   
 
122,015,114
 
Premises and equipment, net
   
 
6,861,274
 
   
 
6,321,651
 
Other real estate owned
   
 
295,159
 
   
 
332,743
 
Mortgage servicing rights
   
 
5,967,879
 
   
 
3,098,579
 
Cash surrender value of life insurance
   
 
4,997,988
 
   
 
3,634,472
 
Premium on deposits purchased
   
 
518,892
 
   
 
555,956
 
Derivative assets
   
 
—  
 
   
 
—  
 
Accounts receivable-brokers and escrow agents
   
 
4,637,664
 
   
 
6,024,895
 
Other assets
   
 
2,525,898
 
   
 
1,909,316
 
    
  
Total Assets
   
$
384,073,089
 
   
$
490,979,600
 
    
  
Liabilities
                  
Deposits
                  
Noninterest-bearing
   
$
40,269,683
 
   
$
45,718,364
 
Interest-bearing
   
 
189,860,734
 
   
 
176,246,435
 
    
  
Total deposits
   
 
230,130,417
 
   
 
221,964,799
 
Drafts payable
   
 
13,920,772
 
   
 
9,424,722
 
Accrued interest and other liabilities
   
 
5,525,247
 
   
 
7,646,141
 
Derivative liability
   
 
353,326
 
   
 
22,846
 
Other borrowings
   
 
99,709,866
 
   
 
229,081,205
 
    
  
Total liabilities
   
 
349,639,628
 
   
 
468,139,713
 
Shareholders’ equity
                  
Common stock, par value $1.00; 10,000,000 shares authorized; 2,429,038 and 1,847,929 issued, respectively
   
 
2,429,038
 
   
 
1,847,929
 
Surplus
   
 
16,403,343
 
   
 
9,414,713
 
Retained earnings
   
 
15,592,687
 
   
 
11,701,721
 
Less cost of 6,668 shares acquired for the treasury
   
 
(36,091
)
   
 
(36,091
)
Accumulated other comprehensive loss
   
 
44,484
 
   
 
(88,385
)
    
  
Total stockholders' equity
   
 
34,433,461
 
   
 
22,839,887
 
    
  
Total liabilities and stockholders' equity
   
$
384,073,089
 
   
$
490,979,600
 
    
  
 
See notes to Consolidated Financial Statements.

3

Table of Contents
 
CRESCENT BANKING COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
 
    
For the three months ended
June 30,
     
For the six months ended
June 30,
  
    
2002
     
2001
     
2002
     
2001
  
Interest income
                                    
Interest and fees on loans
   
 
2,556,564
 
   
 
2,267,275
 
   
 
4,884,837
 
   
 
4,485,167
 
Interest and fees on mortgage loans held for sale
   
 
1,759,256
 
   
 
2,386,764
 
   
 
4,657,752
 
   
 
4,476,704
 
Interest on securities:
                                    
Taxable
   
 
382,776
 
   
 
276,808
 
   
 
743,150
 
   
 
567,528
 
Nontaxable
   
 
3,838
 
   
 
3,838
 
   
 
7,676
 
   
 
7,676
 
Interest on deposits in other banks
   
 
9,806
 
   
 
83,356
 
   
 
17,312
 
   
 
147,512
 
Interest on Federal funds sold
   
 
9,502
 
   
 
98,736
 
   
 
14,532
 
   
 
139,012
 
    
  
  
  
    
 
4,721,742
 
   
 
5,116,777
 
   
 
10,325,259
 
   
 
9,823,599
 
Interest expense
                                    
Interest on deposits
   
 
1,680,951
 
   
 
2,438,079
 
   
 
3,533,796
 
   
 
4,635,451
 
Interest on other borrowings
   
 
794,121
 
   
 
1,302,022
 
   
 
1,916,139
 
   
 
2,446,386
 
    
  
  
  
    
 
2,475,072
 
   
 
3,740,101
 
   
 
5,449,935
 
   
 
7,081,837
 
Net interest income
   
 
2,246,670
 
   
 
1,376,676
 
   
 
4,875,324
 
   
 
2,741,762
 
Provision for loan losses
   
 
265,000
 
   
 
115,000
 
   
 
435,000
 
   
 
230,000
 
    
  
  
  
Net interest income after provision for loan losses
   
 
1,981,670
 
   
 
1,261,676
 
   
 
4,440,324
 
   
 
2,511,762
 
Other income
                                    
Service charges on deposit accounts
   
 
217,248
 
   
 
217,435
 
   
 
413,351
 
   
 
404,389
 
Mortgage servicing fee income
   
 
482,397
 
   
 
157,278
 
   
 
919,394
 
   
 
325,324
 
Gestation fee income
   
 
556,139
 
   
 
71,521
 
   
 
624,335
 
   
 
263,407
 
Gains on sale of mortgage servicing rights
   
 
4,208,537
 
   
 
6,614,895
 
   
 
8,803,226
 
   
 
9,121,335
 
Gains on sale of mortgage loans held for sale
   
 
574,615
 
   
 
221,283
 
   
 
944,365
 
   
 
506,851
 
Gains on sale of mortgage loans held for sale
   
 
143,530
 
   
 
—  
 
   
 
143,530
 
   
 
—  
 
Other
   
 
104,343
 
   
 
159,797
 
   
 
247,885
 
   
 
285,524
 
    
  
  
  
    
 
6,286,809
 
   
 
7,442,209
 
   
 
12,096,086
 
   
 
10,906,830
 
Other expenses
                                    
Salaries and employee benefits
   
 
4,175,393
 
   
 
4,876,177
 
   
 
8,306,084
 
   
 
7,822,639
 
Capitalized loan origination costs
   
 
(1,938,378
)
   
 
(2,479,376
)
   
 
(4,259,635
)
   
 
(4,304,569
)
Net occupancy and equipment expense
   
 
367,932
 
   
 
252,823
 
   
 
755,787
 
   
 
556,541
 
Supplies, postage, and telephone
   
 
447,892
 
   
 
443,239
 
   
 
908,313
 
   
 
814,930
 
Advertising
   
 
142,303
 
   
 
101,883
 
   
 
281,250
 
   
 
197,919
 
Insurance expense
   
 
69,822
 
   
 
54,327
 
   
 
132,249
 
   
 
108,013
 
Depreciation and amortization
   
 
445,142
 
   
 
510,398
 
   
 
875,224