U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý 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 number: 000-31593
BUSINESS BANCORP
(Exact name of registrant as specified in its charter)
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California |
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33-0884369 |
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(State or Other Jurisdiction of Incorporation |
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(I.R.S. Employer Identification No.) |
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or Organization) |
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1248 Fifth Avenue, |
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San Rafael, California 94901 |
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(415) 784-2300 |
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(Address and telephone number of principal executive offices) |
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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(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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Outstanding shares of Common Stock, no par value, as of May 13, 2003: 3,857,922
BUSINESS BANCORP
INDEX
2
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements
BUSINESS BANCORP AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
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March 31, |
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December 31, |
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(Unaudited) |
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(Dollars in thousands) |
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ASSETS |
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Cash and cash equivalents |
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$ |
35,170 |
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$ |
32,531 |
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Investment securities: |
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Available for sale, at fair value |
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168,965 |
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179,180 |
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Other securities |
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3,216 |
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2,641 |
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Total investment securities |
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172,181 |
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181,821 |
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Loans, net of deferred fees |
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377,176 |
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378,100 |
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Allowance for loan losses |
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(5,562 |
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(5,442 |
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Total loans, net |
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371,614 |
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372,658 |
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Property, premises and equipment, net |
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12,455 |
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12,361 |
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Goodwill |
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20,121 |
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20,121 |
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Other intangible assets |
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1,704 |
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1,790 |
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Interest receivable and other assets |
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13,309 |
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9,650 |
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Total assets |
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$ |
626,554 |
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$ |
630,932 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Deposits: |
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Demand, noninterest-bearing |
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$ |
183,094 |
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$ |
184,728 |
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MMDA, NOW and savings |
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253,677 |
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244,364 |
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Time certificates, $100,000 and over |
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60,999 |
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64,510 |
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Other time certificates |
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35,462 |
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37,237 |
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Total deposits |
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533,232 |
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530,839 |
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Borrowings |
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17,325 |
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23,625 |
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Company obligated mandatorily redeemable cumulative trust preferred securities of subsidiary trusts holding soley junior subordinated debentures |
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13,454 |
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13,462 |
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Accrued interest payable and other liabilities |
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3,035 |
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4,560 |
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Total liabilities |
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567,046 |
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572,486 |
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Commitments and contingencies |
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SHAREHOLDERS’ EQUITY |
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Serial preferred stock, no par value: 20,000,000 shares authorized; none issued |
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Common stock, no par value: 20,000,000 shares authorized; 3,927,975 and 3,944,899 shares issued and outstanding at March 31, 2003 and December 31, 2002, respectively |
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36,407 |
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36,529 |
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Accumulated other comprehensive income |
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2,304 |
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2,430 |
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Retained earnings |
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20,797 |
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19,487 |
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Total shareholders’ equity |
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59,508 |
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58,446 |
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Total liabilities and shareholders’ equity |
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$ |
626,554 |
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$ |
630,932 |
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See notes to consolidated financial statements
3
BUSINESS BANCORP AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
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Three
Months Ended |
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Dollars in thousands, except per share amounts |
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2003 |
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2002 |
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(Unaudited) |
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INTEREST INCOME |
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Interest and fees on loans |
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$ |
7,327 |
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$ |
7,695 |
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Interest on investment securities: |
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Taxable |
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1,148 |
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1,588 |
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Tax-exempt |
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331 |
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271 |
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Other interest income |
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2 |
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10 |
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Total interest income |
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8,808 |
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9,564 |
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INTEREST EXPENSE |
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Interest on deposits |
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1,039 |
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1,625 |
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Interest on other borrowings |
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138 |
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241 |
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Interest on trust preferred securities |
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338 |
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338 |
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Total interest expense |
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1,515 |
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2,204 |
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Net interest income |
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7,293 |
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7,360 |
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Provision for loan losses |
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100 |
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100 |
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Net interest income after provision for loan losses |
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7,193 |
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7,260 |
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NON-INTEREST INCOME |
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Service fees on deposit accounts |
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901 |
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800 |
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Gain on sale of SBA loans |
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124 |
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— |
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Gain on sale of other real estate owned |
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1 |
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— |
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