SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

 

 

FORM 10-Q

(Mark One)

 

ý                                 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended 06/30/02

 

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 0-16143

 

 

 

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 ý     No o

 

The number of shares outstanding of each of the registrant’s classes of common stock as of  June 30, 2002:

 

 

 

CAUTIONARY STATEMENT FOR PURPOSES OF THE

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

 

First Essex Bancorp, Inc. (the Company) desires to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.  This Report contains certain “forward-looking statements” including statements concerning plans, objectives, future events or performance, assumptions, and other statements which are other than statements of historical fact.  The Company wishes to caution readers that the following important factors, among others, may have affected, and could in the future affect, the Company’s actual results and could cause the Company’s actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by, or on behalf of, the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, with which the Company and its wholly owned banking subsidiary, First Essex Bank, must comply, and the associated costs of compliance with such laws and regulations, either currently or in the future as applicable; (ii)  the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including increased competition from larger regional and out-of-state banking organizations as well as nonbank providers of various financial services; (iv) the effect of unforeseen changes in interest rates; and (v) the effect of changes in the business cycle and downturns in the local, regional and national economies.  The Company disclaims any intent or obligation to update forward-looking statements whether in response to new information, further events or otherwise.

 

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FIRST ESSEX BANCORP, INC.

INDEX

 

PART I - FINANCIAL INFORMATION
ITEM 1.		Financial Statements
		Consolidated Balance Sheets as of  June 30, 2002 and December 31, 2001
		Consolidated Statements of Operations for the three months ended June 30, 2002 and 2001
		Consolidated Statements of Operations for the six months ended June 30, 2002 and 2001
		Consolidated Statements of Stockholders’ Equity for the six months ended June 30, 2002 and 2001
		Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and 2001
		Notes to the Consolidated Financial Statements
ITEM 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations
ITEM 3.		Quantitative and Qualitative Disclosure About Market Risk
PART II - OTHER INFORMATION
ITEM 4.		Submission of Matters to a Vote of Security Holders
ITEM 5.		Other Information
ITEM 6.		Exhibits and Reports on Form 8-K

 

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ITEM 1.  FINANCIAL STATEMENTS

 

FIRST ESSEX BANCORP, INC.

Consolidated Balance Sheets

 

		June 30, 2002			December 31, 2001
		(Unaudited)
		(Dollars in thousands)
ASSETS
Cash and cash equivalents		$	127,338		$	54,237
Investment securities available-for-sale		364,718			400,551
Stock in Savings Bank Life Insurance Company		1,194			1,194
Stock in Federal Home Loan Bank of Boston		12,771			12,771
Mortgage loans held-for-sale		3,081			4,202
Loans receivable, less allowance for loan losses of $13,715 and $12,758		1,095,772			1,036,145
Foreclosed property		630			417
Bank premises and equipment		9,264			9,621
Accrued interest receivable		7,898			7,912
Goodwill		11,518			11,633
Core deposit intangible		4,339			5,062
Other assets		59,288			48,574
		$	1,697,811		$	1,592,319
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits		$	1,312,048		$	1,217,163
Borrowed funds		204,990			206,275
Mortgagors’ escrow accounts		808			544
Other liabilities		20,319			18,864
Total liabilities		1,538,165			1,442,846
Company-obligated mandatorily redeemable trust preferred securities of subsidiary trust holding solely junior subordinated debentures of the Company		24,344			24,279
STOCKHOLDERS’ EQUITY
Serial preferred stock: $.10 par value per share; 5,000,000 shares authorized, no shares issued or outstanding
Common stock, $.10 par value per share; 25,000,000 shares authorized, 10,077,326 and 9,963,044 shares issued		1,008			996
Additional paid-in capital		82,338			81,035
Retained earnings		70,252			63,782
Treasury stock, at cost, 2,429,300 shares		(23,535		)	(23,535		)
Accumulated other comprehensive income		5,239			2,916
Total stockholders’ equity		135,302			125,194
		$	1,697,811		$	1,592,319

 

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FIRST ESSEX BANCORP, INC.

Consolidated Statement of Operations

(Unaudited)

 

		Three Months Ended June 30,
		2002			2001
		(Dollars in thousands, except per share amounts)
Interest and dividend income:
Loans		$	20,515		$	22,008
Investment securities available-for-sale		5,638			6,792
Short-term investments		328			199
Other earning assets		266			266
Total interest and dividend income		26,747			29,265
Interest expense:
Deposits		8,073			11,647
Borrowed funds		2,391			3,231
Total interest expense		10,464