UNITED STATES
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: June 30, 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: 0-10196
INDEPENDENT BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
|
Texas |
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75-1717279 |
|
(State or other jurisdiction of |
|
(I.R.S. Employer |
|
|
|
|
|
1617 Broadway |
|
79408 |
|
(Address of principal executive offices) |
|
(Zip Code) |
(806) 749-1850
(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 ý NO o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock at June 30, 2003. Class: Common Stock, par value $0.25 per share Outstanding at June 30, 2003: 2,273,647 shares
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
INDEPENDENT BANKSHARES, INC.
A WHOLLY OWNED SUBSIDIARY OF STATE NATIONAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2003 AND DECEMBER 31, 2002
(Unaudited)
(In Thousands)
|
|
|
June 30, |
|
December 31, |
|
||
|
ASSETS |
|
|
|
|
|
||
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Cash, due from banks and interest-earning time deposits |
|
$ |
50,582 |
|
$ |
54,119 |
|
|
Interest-earning time deposits in other banks |
|
16,032 |
|
14,482 |
|
||
|
Federal funds sold |
|
15,225 |
|
15,623 |
|
||
|
Total cash and cash equivalents |
|
81,839 |
|
84,224 |
|
||
|
Available-for-sale securities |
|
238,242 |
|
274,342 |
|
||
|
Loans held-for-sale |
|
8,698 |
|
15,475 |
|
||
|
Loans held for investment |
|
687,352 |
|
658,870 |
|
||
|
Unearned Income |
|
(1 |
) |
(3 |
) |
||
|
Allowance for loan losses |
|
(10,854 |
) |
(10,914 |
) |
||
|
Net loans |
|
676,497 |
|
647,953 |
|
||
|
Goodwill |
|
37,934 |
|
37,934 |
|
||
|
Other intangible assets |
|
14,938 |
|
16,327 |
|
||
|
Premises and equipment |
|
26,543 |
|
24,944 |
|
||
|
Accrued interest receivable |
|
6,075 |
|
7,044 |
|
||
|
Other real estate and other repossessed assets |
|
4,096 |
|
3,703 |
|
||
|
Assets related to discontinued operations |
|
— |
|
480 |
|
||
|
Other assets |
|
29,043 |
|
29,251 |
|
||
|
Total assets |
|
$ |
1,123,905 |
|
$ |
1,141,677 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDER’S EQUITY |
|
|
|
|
|
||
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Deposits: |
|
|
|
|
|
||
|
Noninterest-bearing demand deposits |
|
$ |
278,667 |
|
$ |
241,179 |
|
|
Interest-bearing demand deposits |
|
342,050 |
|
350,975 |
|
||
|
Interest-bearing time deposits |
|
333,033 |
|
372,560 |
|
||
|
Total deposits |
|
953,750 |
|
964,714 |
|
||
|
Federal funds purchased and securities sold under agreements to repurchase |
|
23,010 |
|
20,762 |
|
||
|
Accrued interest payable |
|
769 |
|
1,009 |
|
||
|
Note payable |
|
1,068 |
|
789 |
|
||
|
Liabilities related to discontinued operations |
|
— |
|
3,954 |
|
||
|
Other liabilities |
|
9,512 |
|
9,525 |
|
||
|
Total liabilities |
|
988,109 |
|
1,000,753 |
|
||
|
Guaranteed preferred beneficial interests in the company’s subordinated debentures |
|
10,943 |
|
10,934 |
|
||
|
Stockholder’s equity: |
|
|
|
|
|
||
|
Common stock |
|
568 |
|
568 |
|
||
|
Additional paid-in capital |
|
144,134 |
|
144,134 |
|
||
|
Retained earnings (deficit) |
|
(24,317 |
) |
(20,028 |
) |
||
|
Accumulated other comprehensive income |
|
4,468 |
|
5,316 |
|
||
|
Total stockholder’s equity |
|
124,853 |
|
129,990 |
|
||
|
Total liabilities and stockholder’s equity |
|
$ |
1,123,905 |
|
$ |
1,141,677 |
|
See Accompanying Notes to Interim Consolidated Financial Statements.
3
INDEPENDENT BANKSHARES, INC.
A WHOLLY OWNED SUBSIDIARY OF STATE NATIONAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
FOR THE QUARTERS AND SIX MONTH PERIOD ENDED JUNE 30, 2003 AND 2002
(Unaudited)
|
|
|
Quarter Ended |
|
Six Month Period |
|
||||||||
|
|
|
2003 |
|
2002 |
|
2003 |
|
2002 |
|
||||
|
|
|
(In thousands) |
|
||||||||||
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Interest income: |
|
|
|
|
|
|
|
|
|
||||
|
Loans, including fees |
|
$ |
11,498 |
|
$ |
11,478 |
|
$ |
22,839 |
|
$ |
23,248 |
|
|
Securities |
|
2,742 |
|
4,024 |
|
5,744 |
|
8,570 |
|
||||
|
Deposits in other banks |
|
38 |
|
83 |
|
59 |
|
146 |
|
||||
|
Federal funds sold |
|
58 |
|
107 |
|
124 |
|
227 |
|
||||
|
Total interest income |
|
14,336 |
|
15,692 |
|
28,766 |
|
32,191 |
|
||||
|
Interest expense: |
|
|
|
|
|
|
|
|
|
||||
|
Deposits |
|
2,160 |
|
3,706 |
|
4,665 |
|
8,015 |
|
||||
|
Securities sold under agreement to repurchase |
|
45 |
|
51 |
|
81 |
|
89 |
|
||||
|
Federal funds purchased |
|
— |
|
— |
|
— |
|
2 |
|
||||
|
Notes payable |
|
11 |
|
10 |
|
23 |
|
19 |
|
||||
|
Total interest expense |
|
2,216 |
|
3,767 |
|
4,769 |
|
8,125 |
|
||||
|
Net interest income |
|
12,120 |
|
11,925 |
|
23,997 |
|
24,066 |
|
||||
|
Provision for loan losses |
|
— |
|
285 |
|
118 |
|
740 |
|
||||
|
Net interest income after provision for loan losses |
|
12,120 |
|
11,640 |
|
23,879 |
|
23,326 |
|
||||
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
||||
|
Service charges |
|
2,295 |
|
2,015 |
|
4,319 |
|
3,837 |
|
||||
|
Trust fees |
|
146 |
|
123 |
|
290 |
|
252 |
|
||||
|
Gain on sale of loans |
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