UNITED STATES
SECURITIES 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 March 31, 2003 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: 0-11671
First Century Bankshares, Inc.
(Exact name of registrant as specified in its charter)
| West Virginia |
55-0628089 | |
| (State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) | |
| 500 Federal Street, Bluefield, WV |
24701 | |
| (Address of principal executive officer) |
(Zip Code) |
(304) 325-8181
(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 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 ¨
The number of shares outstanding of the registrant’s $1.25 par value common stock, as of May 12, 2003, was 1,991,000 shares.
1
FIRST CENTURY BANKSHARES, INC.
AND SUBSIDIARIES
| Page | ||||
| PART I |
||||
| ITEM 1. |
FINANCIAL STATEMENTS |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| 6-10 | ||||
| ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
10-13 | ||
| ITEM 3. |
13 | |||
| ITEM 4. |
14 | |||
| PART II |
||||
| 14 | ||||
| 14-18 |
The total number of pages of the Form 10-Q Quarterly Report is eighteen (18) pages.
2
FIRST CENTURY BANKSHARES, INC.
AND SUBSIDIARIES
PART I. FINANCIAL INFORMATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands, except per share data)
| ASSETS |
March 31, 2003 (Unaudited) |
December 31, 2002 (Audited) |
||||||
| Cash and due from banks |
$ |
15,319 |
|
$ |
14,947 |
| ||
| Interest-bearing balances with banks |
|
1,026 |
|
|
1,871 |
| ||
| Federal funds sold |
|
4,000 |
|
|
— |
| ||
| Securities available for sale: (cost approximated $75,968 at March 31, 2003, and $77,132 at December 31, 2002) |
|
77,409 |
|
|
78,631 |
| ||
| Securities held to maturity: (market value approximated $9,955 at March 31, 2003 and $9,971 at December 31, 2002) |
|
9,523 |
|
|
9,566 |
| ||
| Federal Home Loan Bank and Federal Reserve Bank Stock |
|
899 |
|
|
752 |
| ||
| Loans |
|
234,417 |
|
|
236,460 |
| ||
| Less allowance for loan losses |
|
3,005 |
|
|
3,005 |
| ||
| Net loans |
|
231,412 |
|
|
233,455 |
| ||
| Premises and equipment |
|
11,029 |
|
|
10,500 |
| ||
| Real estate owned other than bank premises |
|
424 |
|
|
793 |
| ||
| Other assets |
|
6,234 |
|
|
5,207 |
| ||
| Goodwill and other intangible assets |
|
5,542 |
|
|
5,542 |
| ||
| TOTAL ASSETS |
$ |
362,817 |
|
$ |
361,264 |
| ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Deposits: |
||||||||
| Noninterest-bearing |
$ |
37,277 |
|
$ |
39,202 |
| ||
| Interest-bearing |
|
275,538 |
|
|
268,745 |
| ||
| Total deposits |
|
312,815 |
|
|
307,947 |
| ||
| Federal funds purchased and securities sold under agreements to repurchase |
|
12,598 |
|
|
16,719 |
| ||
| Demand notes to U. S. Treasury and other liabilities for borrowed money |
|
26 |
|
|
26 |
| ||
| Other liabilities |
|
3,157 |
|
|
2,754 |
| ||
| TOTAL LIABILITIES |
|
328,596 |
|
|
327,446 |
| ||
| STOCKHOLDERS’ EQUITY |
||||||||
| Common stock—par value per share $1.25 |
||||||||
| Shares authorized: 10,000,000 |
||||||||
| Shares issued: 2,000,000 |
||||||||
| Shares outstanding: 1,991,000 |
|
2,500 |
|
|
2,500 |
| ||
| Paid-in capital |
|
785 |
|
|
785 |
| ||
| Retained earnings |
|
30,688 |
|
|
30,247 |
| ||
| Treasury stock, at cost; 9,000 shares |
|
(147 |
) |
|
(147 |
) | ||
| Accumulated other comprehensive income, net of tax |
|
395 |
|
|
433 |
| ||
| TOTAL STOCKHOLDERS’ EQUITY |
|
34,221 |
|
|
33,818 |
| ||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
362,817 |
|
$ |
361,264 |
| ||
See accompanying notes to consolidated financial statements
3
FIRST CENTURY BANKSHARES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended March 31, |
||||||||
| (Dollars in thousands except per share data) |
||||||||
| INTEREST INCOME |
2003 |
2002 |
||||||
| Interest and fees on loans |
$ |
3,723 |
|
$ |
4,182 |
| ||
| Interest on balances with banks |
|
5 |
|
|
18 |
| ||
| Interest and dividends from securities available for sale: |
||||||||
| Taxable |
|
796 |
|
|
1,106 |
| ||
| Interest and dividends from securities held to maturity: |
||||||||
| Taxable |
|
13 |
|
|
23 |
| ||
| Tax-exempt |
|
104 |
|
|
117 |
| ||
| Interest on federal funds sold |
|
12 |
|
|
17 |
| ||
| TOTAL INTEREST INCOME |
|
4,653 |
|
|
5,463 |
| ||
| INTEREST EXPENSE |
||||||||
| Interest on time deposits of $100,000 or more |
|
229 |
|
|
321 |
| ||
| Interest on other deposits |
|
870 |
|
|
1,347 |
| ||
| Interest on federal funds purchased and securities sold under agreements to repurchase |
|
23 |
|
|
45 |
| ||
| TOTAL INTEREST EXPENSE |
|
1,122 |
|
|
1,713 |
| ||
| Net interest income |
|
3,531 |
|
|
3,750 |
| ||
| Provision for loan losses |
|
177 |
|
|
263 |
| ||
| Net interest income after provision for loan losses |
|
3,354 |
|
|
3,487 |
| ||
| NONINTEREST INCOME |
||||||||
| Income from fiduciary activities |
|
336 |
|
|
360 |
| ||
| Other operating income |
|
658 |
|
|
575 |
| ||
| TOTAL NONINTEREST INCOME |
|
994 |
|
|
935 |
| ||
| NONINTEREST EXPENSE |
||||||||
| Salaries, wages, and other employee benefits |
|
1,633 |
|
|
1,653 |
| ||
| Furniture and equipment expense |
|
514 |
|
|
481 |
| ||
| Other noninterest expense |
|
880 |
|
|
987 |
| ||
| TOTAL NONINTEREST EXPENSE |
|
3,027 |
|
|
3,121 |
| ||
| Income before income taxes |
|
1,321 |
|
|
1,301 |
| ||
| Provision for income taxes |
|
482 |
|
|
469 |
| ||
| NET INCOME |
|
839 |
|
|
832 |
| ||
| Other comprehensive income (loss), net of tax |
|
(38 |
) |
|
(592 |
) | ||
| COMPREHENSIVE INCOME |
$ |
801 |
|
$ |
240 |
| ||
| NET INCOME PER COMMON SHARE: |
||||||||
| Basic |
$ |
0.42 |
|
$ |
0.42 |
| ||
| Diluted |
$ |
0.42 |
|
$ |
0.42 |
| ||
| WEIGHTED AVERAGE SHARES OUTSTANDING: |
||||||||
| Basic |
|
1,991,000 |
|
|
2,000,000 |
| ||
| Diluted |
|
1,991,197 |
|
|
2,000,000 |
| ||
See accompanying notes to consolidated financial statements
4
FIRST CENTURY BANKSHARES, INC.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| CASH FLOWS FROM OPERATING ACTIVITIES |
2003 |
2002 |
||||||
| Net income |
$ |
839 |
|
$ |
832 |
| ||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Provision for loan losses |
|
177 |
|
|
263 |
| ||
| Depreciation and amortization |
|
202 |
|
|
||||