SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
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
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 No. 0-22124
NSD Bancorp, Inc.
(Exact name of Registrant as specified in its charter)
| Commonwealth of Pennsylvania (State or other Jurisdiction of incorporation or organization) |
25-1616814 (I.R.S. Employer Identification No.) |
| 5004 McKnight Road, Pittsburgh, Pennsylvania (Address of Principal executive offices) |
15237 (ZIP Code) |
(412) 231-6900
(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 o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).
YES o NO x
The number of shares outstanding of the Registrant’s common stock as of May 12, 2003 was:
Common Stock, $1.00 par value - 3,056,325 shares outstanding
NSD BANCORP, INC.
FORM 10-Q
For the Quarter Ended March 31, 2003
INDEX
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Page |
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| Part I. |
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Financial Information |
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Item 1. |
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Financial Statements |
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Consolidated Balance Sheet as of March 31, 2003 and December 31, 2002 (unaudited) |
3 |
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Consolidated Statement of Income For the Three Months Ended March 31, 2003 and 2002 (unaudited) |
4 |
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Consolidated Statement of Cash Flows For the Three Months Ended March 31, 2003 and 2002 (unaudited) |
5 |
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Consolidated Statement of Comprehensive Income For the Three Months Ended March 31, 2003 and 2002 (unaudited) |
6 |
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7 | |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
9 |
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Item 3. |
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16 | |
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Item 4. |
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17 | |
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| Part II. |
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18 | |||
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Item 6. |
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18 | |
NSD BANCORP, INC.
CONSOLIDATED BALANCE SHEET
(unaudited)
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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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$ |
18,949,035 |
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$ |
15,025,678 |
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| Federal Funds Sold |
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13,000,000 |
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18,600,000 |
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| Investment Securities Available for Sale at Market Value (Amortized Cost of $141,455,861 at March 31, 2003 and $124,477,248 at December 31, 2002) |
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145,304,280 |
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128,200,176 |
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| Loans, Net of Deferred Fees |
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327,306,820 |
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334,809,161 |
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| Unearned Income |
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(1,215,397 |
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(1,317,283 |
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| Reserve for Loan Losses |
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(4,104,235 |
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(4,212,225 |
) |
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| Loans, Net |
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321,987,188 |
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329,279,653 |
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| Premises and Equipment, Net |
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3,618,517 |
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3,614,128 |
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| Accrued Interest Receivable |
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2,531,768 |
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2,530,297 |
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| Other Real Estate Owned and Assets Held for Sale |
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299,755 |
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268,915 |
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| Other Assets |
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17,938,350 |
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12,929,425 |
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| TOTAL ASSETS |
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$ |
523,628,893 |
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$ |
510,448,272 |
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| LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Deposits: |
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| Noninterest Bearing |
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$ |
75,796,708 |
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$ |
71,382,829 |
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| Interest Bearing |
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299,891,069 |
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297,816,315 |
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| Total Deposits |
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375,687,777 |
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369,199,144 |
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| Advances from Federal Home Loan Bank and Other Borrowings |
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94,000,000 |
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94,000,000 |
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| Accrued Interest Payable |
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6,262,586 |
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6,405,531 |
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| Other Liabilities |
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8,047,978 |
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2,021,341 |
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| Total Liabilities |
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483,998,341 |
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471,626,016 |
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| Common Stock $1 Par Value; 10,000,000 shares authorized, 3,352,799 issued and 3,049,010 outstanding at March 31, 2003 and 3,328,802 issued and 3,038,922 outstanding at December 31, 2002 |
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3,352,799 |
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3,334,720 |
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| Treasury Stock at cost, 303,789 shares at March 31, 2003 and 295,798 shares at December 31, 2002 |
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(5,915,284 |
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(5,710,410 |
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| Capital Surplus |
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21,797,332 |
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21,553,470 |
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| Accumulated Other Comprehensive Income |
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2,539,989 |
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2,457,122 |
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| Retained Earnings |
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17,855,716 |
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17,187,354 |
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| Total Shareholders’ Equity |
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39,630,552 |
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38,822,256 |
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| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
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$ |
523,628,893 |
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$ |
510,448,272 |
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See notes to unaudited consolidated financial statements.
3
NSD BANCORP, INC.
CONSOLIDATED STATEMENT OF INCOME
(unaudited)
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For the Three Months Ended |
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2003 |
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2002 |
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| INTEREST AND DIVIDEND INCOME |
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| Loans, Including Fees |
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$ |
5,617,822 |
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$ |
6,067,354 |
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| Investment Securities |
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| Taxable |
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1,291,964 |
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1,311,747 |
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| Tax-Exempt |
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229,443 |
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173,633 |
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| Dividends |
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60,383 |
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74,697 |
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| Interest Bearing Deposits |
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3,601 |
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2,094 |
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| Federal Funds Sold |
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51,792 |
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37,402 |
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| Total Interest and Dividend Income |
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7,255,005 |
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7,666,927 |
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| INTEREST EXPENSE |
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| Deposits |
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1,970,351 |
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2,187,896 |
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| Federal Funds Purchased |
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— |
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63 |
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| FHLB Advances and Other Borrowings |
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1,343,744 |
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1,343,744 |
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| Total Interest Expense |
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3,314,095 |
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3,531,703 |
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| Net Interest Income |
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3,940,910 |
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4,135,224 |
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| Provision for Loan Losses |
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255,000 |
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240,000 |
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| Net Interest Income After Provision for Loan Losses |
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3,685,910 |
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3,895,224 |
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| OTHER INCOME |
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| Net Investment Securities Gains |
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88,708 |
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9,711 |
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| Service Fees |
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370,305 |
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256,034 |
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| Other Operating Income |
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484,715 |
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390,575 |
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| Total Other Income |
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943,728 |
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656,320 |
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| OTHER EXPENSES |
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| Salaries and Employee Benefits |
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1,405,681 |
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1,276,248 |
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| Occupancy Expense |
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250,474 |
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233,080 |
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| Equipment and Supplies |
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329,096 |
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333,467 |
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| Data Processing |
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213,150 |
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202,819 |
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| FDIC Insurance |
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14,897 |
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10,961 |
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| Advertising |
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24,352 |
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39,177 |
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| Other Operating Expenses |
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573,337 |
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542,031 |
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| Total Other Expenses |
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2,810,987 |
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2,637,783 |
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| Income Before Income Taxes |
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1,818,651 |
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1,913,761 |
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| Provision for Income Taxes |
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480,000 |
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584,200 |
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| NET INCOME |
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$ |
1,338,651 |
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$ |
1,329,561 |
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| NET INCOME PER COMMON SHARE |
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| Net Income – Basic |
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$ |
.44 |
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$ |
.43 |
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| Net Income – Diluted |
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$ |
.43 |
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$ |
.43 |
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| Common Dividends Declared and Paid Per Share |
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$ |
.22 |
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$ |
.19 |
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| Weighted Average Shares Outstanding – Basic |
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3,044,022 |
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3,082,287 |
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| Weighted Average Shares Outstanding – Diluted |
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3,107,954 |
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3,123,847 |
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See notes to unaudited consolidated financial statements.
4
NSD BANCORP, INC.
CONSOLIDATED STATEMENT OF CASH FLOW
(unaudited)
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For the Three Months Ended |
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2003 |
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2002 |
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| CASH FLOW FROM OPERATING ACTIVITIES |
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| Net Income |
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$ |
1,338,651 |
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$ |
1,329,561 |
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| Adjustments to Net Income: |
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| Provision for Loan Losses |
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255,000 |
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240,000 |
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| Gain on Sale of Investment Securities Available for Sale |
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(88,708 |
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(9,711 |
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| Loss on Sale of Other Assets |
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7,626 |
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91 |
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| Gain on Loan Sales |
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— |
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(9,687 |
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| Loss on Disposition of Premises and Equipment |
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