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 March 31, 2005
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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Suite 100 |
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Alpharetta, Georgia |
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30022 |
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(Address of principal executive offices) |
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(Zip Code) |
(770) 343-6006
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 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 May 1, 2005 |
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Common Stock, par value $.01 |
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46,236,855 |
NETBANK, INC.
TABLE OF CONTENTS
2
NetBank, Inc.
(unaudited and in 000s except share and per share amounts)
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March 31, |
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December 31, |
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2005 |
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2004 |
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Assets |
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Cash and cash equivalents: |
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Cash and due from banks |
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$ |
144,933 |
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$ |
104,070 |
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Federal funds sold |
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23,695 |
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46,232 |
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||
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Total cash and cash equivalents |
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168,628 |
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150,302 |
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||
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Investment securities available for sale-at fair value (amortized cost of $751,955 and $702,127, respectively) |
|
741,108 |
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700,295 |
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||
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Stock of Federal Home Loan Bank of Atlanta - at cost |
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71,054 |
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60,128 |
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Loans held for sale |
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1,119,856 |
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1,173,779 |
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||
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Loan and lease receivables - net of allowance for credit losses of $25,075 and $24,462, respectively |
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2,122,998 |
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2,095,832 |
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||
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Mortgage servicing rights — net |
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210,253 |
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172,819 |
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Accrued interest receivable |
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12,259 |
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11,513 |
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||
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Furniture, equipment and capitalized software — net |
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49,115 |
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51,438 |
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Goodwill and other intangibles — net |
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80,517 |
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79,195 |
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Due from servicers and investors |
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22,683 |
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52,441 |
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||
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Receivable from unsettled trades |
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75,000 |
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— |
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Other assets |
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81,544 |
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74,439 |
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Total assets |
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$ |
4,755,015 |
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$ |
4,622,181 |
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Liabilities, minority interests and shareholders’ equity |
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|
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Liabilities: |
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Deposits |
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$ |
2,591,488 |
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$ |
2,639,441 |
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Other borrowed funds |
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1,506,858 |
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1,311,491 |
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Subordinated debt |
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32,477 |
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11,857 |
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Accrued interest payable |
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9,853 |
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10,309 |
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Loans in process |
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47,937 |
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27,820 |
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Unsettled trades |
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— |
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50,543 |
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Representations and warranties |
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22,031 |
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22,676 |
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Accounts payable and accrued liabilities |
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141,592 |
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133,562 |
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Total liabilities |
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4,352,236 |
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4,207,699 |
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|
|
|
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Commitments and contingencies |
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— |
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— |
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||
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Minority interests in affiliates |
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519 |
|
455 |
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||
|
|
|
|
|
|
|
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Shareholders’ equity: |
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|
|
|
|
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Preferred stock, no par (10,000,000 shares authorized; none outstanding) |
|
— |
|
— |
|
||
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Common stock, $.01 par (100,000,000 shares authorized, 52,820,308 and 52,820,308 shares issued, respectively) |
|
528 |
|
528 |
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Additional paid-in capital |
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432,132 |
|
432,132 |
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Retained earnings |
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40,553 |
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43,849 |
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Accumulated other comprehensive income, net of taxes of $(4,130) and $(696), respectively |
|
(6,738 |
) |
(1,136 |
) |
||
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Treasury stock, at cost (6,583,454 and 6,292,082 shares, respectively) |
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(64,020 |
) |
(61,087 |
) |
||
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Unearned compensation |
|
(195 |
) |
(259 |
) |
||
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Total shareholders’ equity |
|
402,260 |
|
414,027 |
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Total liabilities, minority interests and shareholders’ equity |
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$ |
4,755,015 |
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$ |
4,622,181 |
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See notes to consolidated financial statements.
4
NetBank, Inc.
Consolidated Statements of Operations
(unaudited and in 000s except per share amounts)
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Three months ended |
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2005 |
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2004 |
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Interest income: |
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Loans and leases |
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