SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15() OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Quarter Ended June 30, 2002 |
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Commission File No. 0-22361 |
NETBANK, INC.
(Exact name of registrant as specified in its charter)
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Georgia |
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58-2224352 |
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(State of incorporation) |
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(I.R.S. Employer Identification Number) |
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11475 Great Oaks Way |
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30022 |
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(Address of principal executive offices) |
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(Zip Code) |
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(770) 343-6006 |
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Registrant’s telephone number, including area code: |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15() 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
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
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Class |
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Shares Outstanding At August 9, 2002 |
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Common Stock, par value $.01 |
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49,778,298 |
Part I. Item 1.
NETBANK, INC.
INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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Page |
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Condensed consolidated balance sheets as of June 30, 2002 and as of December 31, 2000 |
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4 |
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5 |
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Condensed consolidated statements of cash flows for the six months ended June 30, 2002 and 2001 |
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7 |
2
NETBANK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in 000’s except share amounts)
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June 30 |
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December 31, |
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(unaudited) |
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ASSETS |
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Cash and cash equivalents: |
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Cash and due from banks |
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$ |
45,522 |
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$ |
17,562 |
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Federal funds sold |
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119,185 |
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4,785 |
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Total cash and cash equivalents |
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164,707 |
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22,347 |
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Investment securities available for sale-At fair value (amortized cost of $728,336 and $855,967, respectively) |
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734,045 |
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850,079 |
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Stock of Federal Home Loan Bank of Atlanta-At cost |
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40,595 |
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55,539 |
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Mortgage loans receivable held for sale-Net of allowance for loan losses of $11,941 and $31, respectively |
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928,003 |
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295,529 |
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Commercial loans receivable held for sale-Net of allowance for losses of $4,182 |
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191,579 |
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— |
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Loans and leases receivable-Net of allowance for loan and lease losses of $53,375 and $22,865, respectively |
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1,134,871 |
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1,489,521 |
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Mortgage and lease servicing rights-Net |
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106,803 |
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2,271 |
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Accrued interest receivable |
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18,052 |
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10,804 |
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Furniture, equipment and capitalized software-Net |
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47,060 |
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12,210 |
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Goodwill and other intangibles - Net |
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42,379 |
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26,932 |
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Due from servicers and investors |
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103,437 |
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82,386 |
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Other assets |
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78,892 |
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31,915 |
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Total assets |
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$ |
3,590,423 |
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$ |
2,879,533 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Liabilities: |
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Deposits |
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$ |
1,787,683 |
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$ |
1,493,819 |
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Other borrowed funds |
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1,175,613 |
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1,011,985 |
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Convertible subordinated debt |
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27,007 |
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26,923 |
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Accrued interest payable |
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16,615 |
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16,632 |
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Loans in process |
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47,836 |
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33,632 |
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Accounts payable and accrued liabilities |
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150,782 |
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41,088 |
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Total liabilities |
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3,205,536 |
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2,624,079 |
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Commitments and contingencies |
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— |
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— |
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Shareholders’ equity: |
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Preferred stock, no par (10,000,000 shares authorized, none outstanding) |
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— |
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— |
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Common stock, $.01 par (100,000,000 shares authorized, 52,480,191 and 31,751,369 shares issued, respectively) |
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525 |
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318 |
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Additional paid-in capital |
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425,697 |
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267,004 |
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Retained deficit earnings |
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(23,636) |
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13,289 |
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Accumulated other comprehensive income (loss), net of tax |
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3,543 |
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(3,648 |
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Treasury stock, at cost (2,703,053 and 2,736,870 shares, respectively) |
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(21,242) |
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(21,509 |
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Total shareholders’ equity |
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384,887 |
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255,454 |
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Total liabilities and shareholders’ equity |
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$ |
3,590,423 |
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$ |
2,879,533 |
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See notes to condensed consolidated financial statements.
3
NETBANK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in 000’s except per share amounts)
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Three months Ended |
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Six months Ended |
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2002 |
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2001 |
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2002 |
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2001 |
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Interest income: |
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Loans |
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$ |
26,582 |
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$ |
26,435 |
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$ |
54,144 |
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$ |
54,280 |
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Investment securities |
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8,030 |
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7,288 |
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16,433 |
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14,782 |
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Short-term investments |
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1,627 |
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895 |
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2,440 |
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1,457 |
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Total interest income |
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36,239 |
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34,618 |
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73,017 |
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70,519 |
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Interest expense: |
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Deposits |
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14,009 |
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15,209 |
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27,783 |
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30,602 |
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Other borrowed funds |
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18,911 |
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8,610 |
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29,572 |
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18,344 |
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Total interest expense |
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32,920 |
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23,819 |
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57,355 |
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48,946 |
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