UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2003
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(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 Exchange Act Rule 12b-2): 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 July 31, 2003 |
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Common Stock, par value $.01 |
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47,828,096 |
NETBANK, INC.
TABLE OF
CONTENTS
2
Part I. Item 1. Financial Statements
NetBank, Inc.
(unaudited and in 000’s except share amounts)
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June 30, |
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December 31, |
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Assets |
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Cash and cash equivalents: |
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Cash and due from banks |
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$ |
34,236 |
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$ |
34,687 |
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Federal funds sold |
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24,674 |
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76,878 |
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Total cash and cash equivalents |
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58,910 |
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111,565 |
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Investment securities available for sale-at fair value (amortized costs of $329,080 and $636,991, respectively) |
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347,747 |
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654,719 |
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Stock of Federal Home Loan Bank of Atlanta - at cost |
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50,505 |
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36,600 |
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Loans held for sale |
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2,527,302 |
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1,514,625 |
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Loans and leases receivable - net of allowance for credit losses of $41,855 and $42,576, respectively |
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1,184,696 |
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892,093 |
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Mortgage servicing rights – net |
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103,094 |
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88,502 |
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Accrued interest receivable |
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11,903 |
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12,839 |
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Furniture, equipment and capitalized software – net |
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51,409 |
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46,610 |
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Goodwill and other intangibles – net |
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45,959 |
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41,696 |
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Due from servicers and investors |
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40,037 |
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70,526 |
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Other assets |
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88,863 |
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57,777 |
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Total assets |
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$ |
4,510,425 |
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$ |
3,527,552 |
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Liabilities and shareholders’ equity |
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Liabilities: |
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Deposits |
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$ |
2,464,232 |
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$ |
2,044,922 |
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Other borrowed funds |
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1,352,589 |
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882,488 |
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Convertible subordinated debt |
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26,213 |
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26,126 |
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Trust preferred securities |
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8,764 |
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4,382 |
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Accrued interest payable |
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10,435 |
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13,266 |
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Loans in process |
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119,870 |
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45,734 |
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Accounts payable and accrued liabilities |
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107,994 |
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109,044 |
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Total liabilities |
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4,090,097 |
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3,125,962 |
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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, 52,761,508 and 52,674,751 shares issued, respectively) |
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528 |
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527 |
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Additional paid-in capital |
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431,389 |
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426,485 |
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Retained earnings (deficit) |
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20,410 |
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(2,568 |
) |
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Accumulated other comprehensive income, net of taxes of $7,057 and$6,702, respectively |
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11,608 |
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11,026 |
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Treasury stock, at cost (4,905,710 and 4,024,193 shares, respectively) |
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(43,607 |
) |
(33,880 |
) |
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Total shareholders’ equity |
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420,328 |
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401,590 |
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Total liabilities and shareholders’ equity |
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$ |
4,510,425 |
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$ |
3,527,552 |
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See notes to consolidated financial statements.
3
NetBank, Inc.
Consolidated Statements of Operations
(unaudited and in 000’s except per share amounts)
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Three months ended June 30, |
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Six months ended June 30, |
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2003 |
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2002 |
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2003 |
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2002 |
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Interest income: |
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Loans and leases |
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$ |
44,903 |
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$ |
27,380 |
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$ |
83,164 |
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$ |
54,942 |
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Investment securities |
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5,351 |
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8,030 |
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11,960 |
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16,433 |
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Short-term investments |
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87 |
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829 |
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219 |
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1,642 |
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Total interest income |
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50,341 |
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36,239 |
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95,343 |
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73,017 |
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Interest expense: |
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Deposits |
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12,534 |
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14,009 |
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24,980 |
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27,783 |
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Other borrowed funds |
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9,099 |
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16,418 |
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18,152 |
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27,079 |
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Total interest expense |
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21,633 |
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30,427 |
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43,132 |
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54,862 |
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Net interest income |
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28,708 |
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5,812 |
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52,211 |
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18,155 |
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Provision for credit losses |
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