UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2004
or
| ¨ | 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: 000-49736
FIRST COMMUNITY FINANCIAL CORPORATION
(Exact name of small business issuer as specified in its charter)
| PENNSYLVANIA | 23-2321079 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
| TWO NORTH MAIN STREET, MIFFLINTOWN, PENNSYLVANIA | 17059 | |
| (Address of principal executive offices) | (Zip Code) | |
(717) 436-2144
(Issuer’s telephone number, including area code)
Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 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 x No ¨.
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes ¨ No x.
State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date: COMMON STOCK, Par Value $5.00 per share 700,000 shares outstanding as of April 30, 2004
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
FIRST COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands, Except Per Share Data)
| (unaudited) March 31, 2004 |
December 31, 2003 | |||||
| ASSETS |
||||||
| Cash & Due from Banks |
$ | 4,742 | $ | 4,896 | ||
| Interest Bearing Deposits with Banks |
470 | 446 | ||||
| Cash & Cash Equivalents |
5,212 | 5,342 | ||||
| Time Certificates of Deposit |
199 | 199 | ||||
| Securities available for sale |
49,502 | 42,931 | ||||
| Securities held to maturity, fair value 2004 $ 20,430; 2003 $ 19,765 |
19,923 | 19,393 | ||||
| Loans - Net of allowance for loan losses 2004 $ 1,243; 2003 $ 1,212 |
146,762 | 141,206 | ||||
| Premises and Equipment |
6,540 | 6,205 | ||||
| Restricted investment in bank stocks |
1,993 | 1,202 | ||||
| Investment in life insurance |
4,249 | 4,209 | ||||
| Other Assets |
2,967 | 1,816 | ||||
| TOTAL ASSETS |
$ | 237,347 | $ | 222,503 | ||
| LIABILITIES |
||||||
| Deposits: |
||||||
| Non-Interest Bearing |
$ | 18,913 | $ | 19,164 | ||
| Interest Bearing |
171,354 | 168,099 | ||||
| Total Deposits |
190,267 | 187,263 | ||||
| Short-Term Borrowings |
7,989 | 4,788 | ||||
| Long-Term Borrowings |
16,000 | 8,000 | ||||
| Trust Capital Securities |
— | 5,000 | ||||
| Junior Subordinated Debt |
5,155 | — | ||||
| Other Liabilities |
1,426 | 1,525 | ||||
| TOTAL LIABILITIES |
220,837 | 206,576 | ||||
| SHAREHOLDERS’ EQUITY |
||||||
| Preferred stock, without par value; 10,000,000 shares authorized and unissued |
— | — | ||||
| Common stock, $ 5 par value; 10,000,000 shares authorized; 700,000 shares issued & outstanding |
3,500 | 3,500 | ||||
| Capital in Excess of Par Value |
245 | 245 | ||||
| Retained Earnings |
12,206 | 11,834 | ||||
| Accumulated Other Comprehensive Income |
559 | 348 | ||||
| TOTAL SHAREHOLDERS’ EQUITY |
16,510 | 15,927 | ||||
| TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY |
$ | 237,347 | $ | 222,503 | ||
2
PART I – FINANCIAL INFORMATION, CONTINUED
Item 1. Financial Statements, continued
FIRST COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(Dollars In Thousands Except Per Share Data)
| Three Months Ended March 31, | ||||||
| 2004 |
2003 | |||||
| INTEREST INCOME |
||||||
| Interest & Fees on Loans |
$ | 2,391 | $ | 2,325 | ||
| Interest on Taxable Securities |
447 | 446 | ||||
| Interest on Tax-Exempt Securities |
173 | 161 | ||||
| Other Interest & Dividends |
8 | 26 | ||||
| TOTAL INTEREST INCOME |
3,019 | 2,958 | ||||
| INTEREST EXPENSE |
||||||
| Interest on Deposits |
1,131 | 1,179 | ||||
| Interest on Short Term Borrowings |
19 | 7 | ||||
| Interest on Long Term Borrowings |
139 | 118 | ||||
| TOTAL INTEREST EXPENSE |
1,289 | 1,304 | ||||
| NET INTEREST INCOME |
1,730 | 1,654 | ||||
| Provision for Loan Losses |
31 | 30 | ||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES |
1,699 | 1,624 | ||||
| NON-INTEREST INCOME |
||||||
| Service Charges on Deposits |
113 | 112 | ||||
| Fiduciary Activities |
55 | 45 | ||||
| Earnings on Investment in Life Insurance |
48 | 52 | ||||
| ATM Card Fees |
42 | 39 | ||||
| Net Realized Gains on Sales of Securities |
47 | 2 | ||||
| Other Income |
66 | 48 | ||||
| TOTAL OTHER INCOME |
371 | 298 | ||||
| NON-INTEREST EXPENSES |
||||||
| Employee Compensation & Benefits |
733 | 681 | ||||
| Net Occupancy & Equipment |
238 | 229 | ||||
| ATM Expense |
57 | 46 | ||||
| Professional & Regulatory Fees |
69 | 26 | ||||
| Director & Advisory Boards Compensation |
54 | 55 | ||||
| Supplies & Postage |
53 | 56 | ||||
| Other Non-Interest Expense |
228 | 208 | ||||
| TOTAL NON-INTEREST EXPENSES |
1,432 | 1,301 | ||||
| Income Before Income Taxes |
638 | 621 | ||||
| Applicable income taxes |
147 | 144 | ||||
| NET INCOME |
$ | 491 | $ | 477 | ||
| Basic Earnings Per Share |
$ | 0.70 | $ | 0.68 | ||
3
PART I – FINANCIAL INFORMATION, CONTINUED
Item 1. Financial Statements, continued
FIRST COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
For the Three Months Ended March 31, 2003
(Unaudited)
(Dollars In Thousands, Except Per Share Data)
| Common Stock |
Capital In Excess of Par Value |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total |
||||||||||||||
| Balance December 31, 2002 |
$ | 3,500 | $ | 245 | $ | 10,207 | $ | 741 | $ | 14,693 | ||||||||
| Comprehensive income: |
||||||||||||||||||
| Net Income |
477 | 477 | ||||||||||||||||
| Net change in unrealized gains on securities available for sale, net of taxes |
(17 | ) | (17 | ) | ||||||||||||||
| Total comprehensive income |
460 | |||||||||||||||||
| Cash dividends, $.155 per share |
(109 | ) | (109 | ) | ||||||||||||||
| Balance March 31, 2003 |
$ | 3,500 | $ | 245 | $ | 10,575 | $ | 724 | $ | 15,044 | ||||||||
FIRST COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
For the Three Months Ended March 31, 2004
(Unaudited)
(Dollars In Thousands, Except Per Share Data)
| Common Stock |
Capital In Excess Par Value |
Retained Earnings |
Accumulated Other Comprehensive Income |
Total |
|||||||||||||
| Balance December 31, 2003 |
$ | 3,500 | $ | 245 | $ | 11,834 | $ | 348 | $ | 15,927 | |||||||
| Comprehensive income: |
|||||||||||||||||
| Net Income |
491 | 491 | |||||||||||||||
| Net change in unrealized gains on securities available for sale, net of taxes |
211 | 211 | |||||||||||||||
| Total comprehensive income |
702 | ||||||||||||||||
| Cash dividends, $.17 per share |
(119 | ) | (119 | ) | |||||||||||||
| Balance March 31, 2004 |
$ | 3,500 | $ | 245 | $ | 12,206 | $ | 559 | $ | 16,510 | |||||||
4
PART I – FINANCIAL INFORMATION, CONTINUED
Item 1. Financial Statements, continued
FIRST COMMUNITY FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars In Thousands)
| Three Months Ended March 31, |
||||||||
| 2004 |
2003 |
|||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Net income |
$ | 491 | $ | 477 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Provision for loan losses |
31 | 30 | ||||||
| Depreciation and amortization |
134 | 143 | ||||||
| Net amortization of securities premium |
105 | 75 | ||||||
| Net realized gains on sales of securities |
(47 | ) | (2 | ) | ||||
| Earnings on life insurance |
(48 | ) | (52 | ) | ||||
| Decrease in other assets |
44 | (233 | ) | |||||
| Decrease in other liabilities |
(212 | ) | (95 | ) | ||||
| Net cash provided by operating activities |
498 | 343 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
| Securities held to maturity: |
||||||||
| Maturities, calls and principal repayments |
220 | 1,782 | ||||||
| Purchases |
(1,179 | ) | (1,399 | ) | ||||
| Proceeds from sales |
388 | — | ||||||
| Securities available for sale: |
||||||||
| Maturities, calls and principal repayments |
3,117 | 3,887 | ||||||
| Purchases |
(13,204 | ) | (3,036 | ) | ||||
| Proceeds from sales |
3,823 | 246 | ||||||
| Net increase in loans receivable |
(6,619 | ) | (3,611 | ) | ||||
| Net increase in Federal Home Loan Bank stock |
(791 | ) | — | |||||
| Purchases of premises and equipment |
(469 | ) | (99 | ) | ||||
| Proceeds from sale of foreclosed real estate |
— | 50 | ||||||
| Net cash used in investing activities |
(14,714 | ) | (2,180 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
| Net increase in non-interest bearing demand and savings deposits |
(251 | ) | 2,606 | |||||
| Net increase in time deposits |
3,255 | 1,637 | ||||||
| Net increase (decrease) in short-term borrowings |
3,201 | (606 | ) | |||||
| Proceeds from long-term borrowings |
8,000 | — | ||||||
| Dividends paid |
(119 | ) | (109 | ) | ||||
| Net cash provided by financing activities |
14,086 | 3,528 | ||||||
| Net increase (decrease) in cash and cash equivalents |
(130 | ) | 1,691 | |||||
| Cash and cash equivalents: |
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