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 September 30, 2003 | ||
| [ ] |
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 0-20402 |
WILSON BANK HOLDING COMPANY
| Tennessee | 62-1497076 | |
|
|
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| (State or Other Jurisdiction of Incorporation or Organization) |
(IRS Employer Identification Number) |
623 West Main Street, Lebanon, TN 37087
(615) 444-2265
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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
YES [ ] NO [X]
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common stock outstanding: 4,320,056 shares at November 13, 2003
1
| Part 1: | FINANCIAL INFORMATION | |||
| Item 1. Financial Statements | ||||
The unaudited consolidated financial statements of the
Company and its subsidiaries are as follows: |
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Consolidated Balance Sheets – September 30, 2003 and December 31, 2002. |
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Consolidated Statements of Earnings - For the three
months and nine months ended September 30, 2003 and 2002. |
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Consolidated Statements of Comprehensive Earnings - For the three months and nine months ended
September 30, 2003 and 2002. |
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Consolidated Statements of Cash Flows - For the nine
months ended September 30, 2003 and 2002. |
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| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||
| Item 3. Quantitative and Qualitative Disclosures about Market Risk | ||||
| Disclosures required by Item 3 are incorporated by reference to Management’s Discussion and Analysis of Financial Condition and Results of Operation |
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| Item 4. Controls and Procedures | ||||
| Part II: | OTHER INFORMATION | |||
| Item 1. Legal Proceedings. | ||||
| Item 2. Changes in Securities and Use of Proceeds. | ||||
| Item 3. Defaults Upon Senior Securities. | ||||
| Item 4. Submission of Matters to a Vote of Security Holders. | ||||
| Item 5. Other Information. | ||||
| Item 6. Exhibits and Reports on Form 8-K. | ||||
| Signatures | ||||
2
WILSON BANK HOLDING COMPANY
Consolidated Balance Sheets
September 30, 2003 and December 31, 2002
(Unaudited)
| September 30, | December 31, | |||||||||
| 2003 | 2002 | |||||||||
| (In Thousands) | ||||||||||
Assets |
||||||||||
Loans |
$ | 584,874 | 550,601 | |||||||
Less: Allowance for loan losses |
(7,938 | ) | (6,943 | ) | ||||||
Net loans |
576,936 | 543,658 | ||||||||
Securities: |
||||||||||
Held to maturity, at cost (market value $14,969,000 and $14,838,000,
respectively) |
14,339 | 14,213 | ||||||||
Available-for-sale, at market (amortized cost $131,768,000 and $100,230,000,
respectively) |
131,810 | 101,669 | ||||||||
Total securities |
146,149 | 115,882 | ||||||||
Loans held for sale |
3,022 | 10,859 | ||||||||
Other interest bearing assets |
2,535 | 2,460 | ||||||||
Federal funds sold |
46,503 | 27,366 | ||||||||
Total earning assets |
775,145 | 700,225 | ||||||||
Cash and due from banks |
20,701 | 27,797 | ||||||||
Bank premises and equipment, net |
18,057 | 15,409 | ||||||||
Accrued interest receivable |
4,626 | 4,625 | ||||||||
Other real estate |
235 | 818 | ||||||||
Deferred income tax asset |
2,133 | 1,582 | ||||||||
Other assets |
3,067 | 2,330 | ||||||||
Total assets |
$ | 823,964 | 752,786 | |||||||
Liabilities and Stockholders’ Equity |
||||||||||
Deposits |
$ | 738,209 | 679,408 | |||||||
Securities sold under repurchase agreements |
12,759 | 7,868 | ||||||||
Federal Home Loan Bank Advances |
734 | 997 | ||||||||
Accrued interest and other liabilities |
4,682 | 3,713 | ||||||||
Total liabilities |
756,384 | 691,986 | ||||||||
Minority Interest |
6,368 | 5,769 | ||||||||
Stockholders’ equity: |
||||||||||
Common stock, $2.00 par value; authorized 5,000,000 shares,
issued 2,159,828 shares at September 30, 2003 and 2,108,019 shares at
December 31, 2002, respectively |
4,320 | 4,216 | ||||||||
Additional paid-in capital |
16,241 | 13,931 | ||||||||
Retained earnings |
40,583 | 36,054 | ||||||||
Net unrealized gains on available-for-sale securities, net of income
taxes of $42,000 and $514,000, respectively |
68 | 830 | ||||||||
Total stockholders’ equity |
61,212 | 55,031 | ||||||||
Total liabilities and stockholders’ equity |
$ | 823,964 | 752,786 | |||||||
See accompanying notes to consolidated financial statements (unaudited).
3
WILSON BANK HOLDING COMPANY
Consolidated Statements of Earnings
Three Months and Nine Months Ended September 30, 2003 and 2002
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||
| 2003 | 2002 | 2003 | 2002 | ||||||||||||||||
| (Dollars In Thousands | (Dollars In Thousands | ||||||||||||||||||
| Except Per Share Amounts) | Except Per Share Amounts) | ||||||||||||||||||
Interest income: |
|||||||||||||||||||
Interest and fees on loans |
$ | 10,503 | 10,482 | $ | 30,628 | 30,893 | |||||||||||||
Interest and dividends on securities: |
|||||||||||||||||||
Taxable securities |
813 | 1,068 | 2,746 | 3,436 | |||||||||||||||
Exempt from Federal income taxes |
151 | 174 | 465 | 531 | |||||||||||||||
Interest on loans held for sale |
107 | 45 | 312 | 116 | |||||||||||||||
Interest on Federal funds sold |
186 | 122 | 463 | 449 | |||||||||||||||
Total interest income |
11,760 | 11,891 | 34,614 | 35,425 | |||||||||||||||
Interest expense: |
|||||||||||||||||||
Interest on negotiable order of withdrawal accounts |
48 | 100 | 186 | 287 | |||||||||||||||
Interest on money market and savings accounts |
714 | 1,002 | 2,192 | 2,949 | |||||||||||||||
Interest on certificates of deposit |
2,961 | 3,381 | 8,936 | 10,395 | |||||||||||||||
Interest on securities sold under repurchase
agreements |
57 | 69 | 135 | 174 | |||||||||||||||
Interest on Federal Home Loan Bank advances |
36 | 25 | 68 | 69 | |||||||||||||||
Interest on Fed funds purchased |
1 | 1 | 2 | 6 | |||||||||||||||
Total interest expense |
3,817 | 4,578 | 11,519 | 13,880 | |||||||||||||||
Net interest income before provision for possible
loan losses |
7,943 | 7,313 | 23,095 | 21,545 | |||||||||||||||
Provision for possible loan losses |
466 | 652 | 1,518 | 1,697 | |||||||||||||||
Net interest income after provision for possible
loan losses |
7,477 | 6,661 | 21,577 | 19,848 | |||||||||||||||
Non-interest income: |
|||||||||||||||||||
Service charges on deposit accounts |
1,129 | 1,075 | 3,244 | 3,068 | |||||||||||||||
Other fees and commissions |
524 | 308 | 1,263 | 1,032 | |||||||||||||||
Gain on sale of loans |
656 | 483 | 2,240 | 1,000 | |||||||||||||||
Gain on sale of fixed assets |
19 | — | 19 | — | |||||||||||||||
Total non-interest income |
2,328 | 1,866 | 6,766 | 5,100 | |||||||||||||||
Non-interest expense |
|||||||||||||||||||
Salaries and employee benefits |
3,175 | 2,480 | 9,040 | 7,743 | |||||||||||||||
Occupancy expenses, net |
283 | 325 | 962 | 926 | |||||||||||||||
Furniture and equipment expense |
356 | 200 | 783 | 599 | |||||||||||||||
Data processing expense |
266 | 112 | 566 | 299 | |||||||||||||||
Directors’ fees |
154 | 152 | 489 | 476 | |||||||||||||||
Other operating expenses |
1,252 | 1,388 | 3,699 | 3,698 | |||||||||||||||
Loss on sale of other real estate |
33 | 12 | 80 | 55 | |||||||||||||||
Loss on sale of other assets |
18 | — | 35 | — | |||||||||||||||
Minority interest in net earnings of subsidiaries |
248 | 234 | 726 | 686 | |||||||||||||||
Total non-interest expense |
5,785 | 4,903 | 16,380 | 14,482 | |||||||||||||||
Earnings before income taxes |
4,020 | 3,624 | 11,963 | 10,466 | |||||||||||||||
Income taxes |
1,600 | 1,391 | 4,783 | 4,057 | |||||||||||||||
Net earnings |
$ | 2,420 | 2,233 | $ | 7,180 | 6,409 | |||||||||||||
Basic earnings per common share |
$ | 1.13 | 1.06 | $ | 3.36 | 3.08 | |||||||||||||
Diluted earnings per common share |
$ | 1.12 | 1.06 | $ | 3.35 | 3.07 | |||||||||||||
Dividends per share |
$ | 0.65 | 0.60 | $ | 1.25 | 1.15 | |||||||||||||
See accompanying notes to consolidated financial statements (unaudited).
4
WILSON BANK HOLDING COMPANY
Consolidated Statements of Comprehensive Earnings
Three Months and Nine Months Ended September 30, 2003 and 2002
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| September 30, | September 30, | |||||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||||
| (In Thousands) | (In Thousands) | |||||||||||||||||
Net earnings |
$ | 2,420 | 2,233 | $ | 7,180 | 6,409 | ||||||||||||
Other comprehensive earnings(losses) net of tax: |
||||||||||||||||||
Unrealized gains(losses) on available-for-sale securities
arising during period, net of taxes of $447,000,
$260,000, $472,000, and $491,000, respectively |
(721 | ) | 425 | (762 | ) | 803 | ||||||||||||
Other comprehensive earnings (losses) |
(721 | ) | 425 | (762 | ) | 803 | ||||||||||||
Comprehensive earnings |
$ | 1,699 | 2,658 | $ | 6,418 | 7,212 | ||||||||||||
See accompanying notes to consolidated financial statements (unaudited).
5
WILSON BANK HOLDING COMPANY
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2003 and 2002
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
| 2003 | 2002 | |||||||||
| (In Thousands) | ||||||||||
Cash flows from operating activities: |
||||||||||
Interest received |
$ | 34,570 | 35,309 | |||||||
Fees and commissions received |
4,526 | 4,100 | ||||||||
Proceeds from sale of loans |
109,425 | 50,264 | ||||||||
Origination of loans held for sale |
(99,348 | ) | (50,008 | ) | ||||||
Interest paid |
(11,732 | ) | (14,667 | ) | ||||||
Cash paid to suppliers and employees |
(13,425 | ) | (12,548 | ) | ||||||
Income taxes paid |
(5,783 | ) | (4,708 | ) | ||||||
Net cash provided by operating activities |
18,233 | 7,742 | ||||||||
Cash flows from investing activities: |
||||||||||
Proceeds from maturities of held-to-maturity securities |
2,251 | 2,002 | ||||||||
Proceeds from maturities of available-for-sale securities |
115,218 | 57,819 | ||||||||
Purchase of held-to-maturity securities |
(2,370 | ) | (1,077 | ) | ||||||
Purchase of available-for-sale securities |
(146,795 | ) | (63,365 | ) | ||||||
Loans made to customers, net of repayments |
(35,390 | ) | (43,373 | ) | ||||||
Purchase of premises and equipment |
(3,370 | ) | (409 | ) | ||||||
Proceeds from sale of other real estate |
1,097 | 701 | ||||||||
Increase in other interest bearing assets |
— | (354 | ) | |||||||
Net cash used in investing activities |
(69,359 | ) | (48,056 | ) | ||||||
Cash flows from financing activities: |
||||||||||
Net increase in non-interest bearing, savings
and NOW deposit accounts |
91,419 | 28,162 | ||||||||
Net increase (decrease) in time deposits |
(32,618 | ) | 21,244 | |||||||
Increase in securities sold under repurchase agreements |
4,891 | 5,124 | ||||||||
Net decrease in advances from Federal Home Loan Bank |
(263 | ) | (348 | ) | ||||||
Dividends paid |
(2,651 | ) | (2,377 | ) | ||||||
Dividends paid to minority shareholders |
& | |||||||||