UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2003
OR
o
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 0-20251
Crescent Banking Company
(Exact Name of Registrant as Specified in its Charter)
| Georgia (State or Other Jurisdiction of Incorporation or Organization) |
58-1968323 (I.R.S. Employer Identification No.) |
| 251 Highway 515, Jasper, GA (Address of Principal Executive Offices) |
30143 (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 o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o 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 May 14, 2003, Crescent Banking Company had 2,453,903 shares of its common stock, par value $1.00 per share, issued and outstanding, of which 6,668 shares were held by Crescent Banking Company as treasury stock.
CRESCENT BANKING COMPANY
INDEX
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Page No. |
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| Part I. |
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Financial Information |
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Item 1. |
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Consolidated Financial Statements |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
7 |
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Item 3. |
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22 | |
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| Part II. |
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Other Information |
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Item 1. |
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27 | |
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Item 2. |
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27 | |
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Item 3. |
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27 | |
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Item 4. |
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27 | |
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Item 5. |
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27 | |
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Item 6. |
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27 | |
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i
PART I—FINANCIAL INFORMATION
CRESCENT BANKING COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE
SHEETS
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March 31, |
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December 31, |
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| Assets |
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| Cash and due from banks |
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$ |
37,301,712 |
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$ |
17,607,864 |
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| Interest bearing deposits in banks |
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1,029,668 |
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5,025,937 |
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| Federal fund sold |
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— |
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2,824,000 |
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| Securities available-for-sale |
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8,072,712 |
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10,278,727 |
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| Securities held-to-maturity, at cost (fair value of $7,679,727 and $10,190,113, respectively) |
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7,247,835 |
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9,830,727 |
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| Restricted equity securities |
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1,675,775 |
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1,879,875 |
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| Mortgage loans held for sale |
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259,895,653 |
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281,503,275 |
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| Loans |
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220,725,025 |
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200,298,696 |
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| Less allowance for loan losses |
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2,872,907 |
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2,548,110 |
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| Loans, net |
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217,852,118 |
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197,750,586 |
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| Premises and equipment, net |
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6,884,035 |
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7,007,631 |
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| Other real estate owned |
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4,296,834 |
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1,391,399 |
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| Mortgage servicing rights |
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2,896,520 |
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2,138,787 |
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| Cash surrender value of life insurance |
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5,386,848 |
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5,126,833 |
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| Deposit intangible |
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463,296 |
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481,828 |
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| Accounts receivable-brokers and escrow agents |
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7,703,095 |
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8,210,320 |
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| Other assets |
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8,197,554 |
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8,339,522 |
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| Total Assets |
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$ |
568,903,655 |
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$ |
559,397,311 |
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| Liabilities |
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| Deposits |
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| Noninterest-bearing |
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$ |
71,502,868 |
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$ |
56,549,579 |
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| Interest-bearing |
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219,001,132 |
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230,449,962 |
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| Total deposits |
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290,504,000 |
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286,999,541 |
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| Drafts payable |
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7,128,845 |
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6,154,386 |
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| Accrued interest and other liabilities |
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15,294,573 |
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12,801,706 |
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| Deferred income taxes |
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528,049 |
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528,049 |
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| Derivative liability, net |
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896,654 |
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179,044 |
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| Other borrowings |
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214,812,659 |
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217,845,016 |
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| Total liabilities |
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529,164,780 |
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524,507,742 |
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| Shareholders’ equity |
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| Common stock, par value $1.00; 10,000,000 shares authorized; 2,453,903 and 2,433,435 issued, respectively |
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2,453,903 |
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2,433,435 |
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| Capital Surplus |
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16,617,647 |
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16,307,557 |
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| Retained earnings |
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20,569,577 |
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15,976,149 |
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| Treasury stock, 6,668 shares |
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(36,091 |
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(36,091 |
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| Accumulated other comprehensive income |
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133,839 |
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208,519 |
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| Total stockholders’ equity |
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39,738,875 |
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34,889,569 |
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| Total liabilities and stockholders’ equity |
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$ |
568,903,655 |
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$ |
559,397,311 |
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See notes to Consolidated Financial Statements.
1
CRESCENT BANKING COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
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For the three months ended |
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2003 |
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2002 |
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| Interest income |
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| Interest and fees on loans |
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$ |
3,541,584 |
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$ |
2,328,273 |
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| Interest on mortgage loans held for sale |
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2,804,629 |
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2,898,496 |
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| Interest on securities: |
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| Taxable |
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345,397 |
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360,374 |
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| Nontaxable |
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1,279 |
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3,838 |
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| Interest on deposits in banks |
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4,709 |
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7,506 |
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| Interest on Federal funds sold |
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2,671 |
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5,030 |
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6,700,269 |
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5,603,517 |
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| Interest expense |
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| Interest on deposits |
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1,749,875 |
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1,852,845 |
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| Interest on other borrowings |
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1,384,774 |
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1,122,018 |
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3,134,649 |
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2,974,863 |
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| Net interest income |
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3,565,620 |
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2,628,654 |
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| Provision for loan losses |
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353,000 |
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170,000 |
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| Net interest income after provision for loan losses |
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3,212,620 |
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2,458,654 |
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| Other income |
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| Service charges on deposit accounts |
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175,693 |
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196,103 |
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| Mortgage servicing fee income |
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645,089 |
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436,997 |
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| Gestation fee income |
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57,302 |
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68,196 |
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| Gains on sale of mortgage servicing rights |
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13,159,504 |
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4,594,689 |
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| Gains on sale of mortgage loans held for sale |
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190,155 |
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369,750 |
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| Other operating income |
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405,494 |
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143,542 |
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14,633,237 |
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5,809,277 |
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| Other expenses |
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| Salaries and employee benefits |
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9,525,913 |
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4,130,691 |
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| Capitalized loan origination costs |
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(3,386,284 |
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(2,321,257 |
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| Occupancy and equipment expense |
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386,896 |
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387,855 |
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| Supplies, postage, and telephone |
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538,931 |
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460,421 |
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| Advertising |
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119,176 |
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138,947 |
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| Insurance expense |
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65,826 |
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62,427 |
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| Depreciation and amortization |
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363,926 |
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430,082 |
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| Legal and professional |
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592,066 |
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363,852 |
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| Director fees |
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73,500 |
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61,575 |
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| Mortgage subservicing expense |
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629,302 |
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433,071 |
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| Other operating expenses |
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1,527,842 |
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592,927 |
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10,437,094 |
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4,740,591 |
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| Income before income taxes |
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7,408,763 |
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3,527,340 |
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| Applicable income taxes |
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2,815,334 |
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1,333,222 |
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| Net income |
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$ |
4,593,429 |
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2,194,118 |
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| Other comprehensive income |
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| Unrealized losses on securities available for sale arising during period, net of tax |
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(77,169 |
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