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, 2004.
Commission File Number 1-15773
NBC CAPITAL CORPORATION
(Exact name of registrant as specified in its charter.)
| Mississippi | 64-0694775 | |
| (State of other jurisdiction of incorporation or organization) |
(I. R. S. Employer Identification No.) | |
|
NBC Plaza, P. O. Box 1187, Starkville, Mississippi |
39760 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (662) 323-1341
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 x NO ¨
Indicate by check mark whether the registrant is an accelerated filer as defined in the Securities and Exchange Act of 1934 rule 12b-2. YES x NO ¨
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date:
Common Stock, $1 Par Value - 8,158,011 shares as of June 30, 2004.
PART I - FINANCIAL INFORMATION
NBC CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME FOR
SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(Unaudited)
| (Amounts in thousands, except per share data)
|
2004 |
2003 | ||||
| INTEREST INCOME: |
||||||
| Interest and Fees on Loans |
$ | 19,623 | $ | 17,338 | ||
| Interest and Dividends on Investment Securities |
8,983 | 9,077 | ||||
| Other Interest Income |
192 | 165 | ||||
| Total Interest Income |
28,798 | 26,580 | ||||
| INTEREST EXPENSE: |
||||||
| Interest on Deposits |
6,403 | 6,966 | ||||
| Interest on Borrowed Funds |
3,180 | 2,623 | ||||
| Total Interest Expense |
9,583 | 9,589 | ||||
| Net Interest Income |
19,215 | 16,991 | ||||
| Provision for Loan Losses |
1,480 | 1,490 | ||||
| Net Interest Income after Provision for Loan Losses |
17,735 | 15,501 | ||||
| NON-INTEREST INCOME: |
||||||
| Income from Fiduciary Activities |
1,002 | 904 | ||||
| Service Charges on Deposit Accounts |
4,135 | 3,683 | ||||
| Insurance Commission and Fee Income |
2,243 | 2,256 | ||||
| Mortgage Loan Fee Income |
624 | 1,159 | ||||
| Other Non-Interest Income |
1,941 | 1,576 | ||||
| Total Non-Interest Income |
9,945 | 9,578 | ||||
| Gains on Securities |
97 | 1,368 | ||||
| NON-INTEREST EXPENSE: |
||||||
| Salaries and Employee Benefits |
11,512 | 9,993 | ||||
| Expense of Premises and Fixed Assets |
2,660 | 2,347 | ||||
| Other Non-Interest Expense |
5,600 | 4,517 | ||||
| Total Non-Interest Expense |
19,772 | 16,857 | ||||
| Income Before Income Taxes |
8,005 | 9,590 | ||||
| Income Taxes |
2,251 | 2,504 | ||||
| NET INCOME |
$ | 5,754 | $ | 7,086 | ||
| Net Earnings Per Share: |
||||||
| Basic |
$ | 0.70 | $ | 0.87 | ||
| Diluted |
$ | 0.70 | $ | 0.87 | ||
| Dividends per Common Share |
$ | 0.48 | $ | 0.44 | ||
2
NBC CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME FOR
QUARTER ENDED JUNE 30, 2004 AND 2003
(Unaudited)
| (Amounts in thousands, except per share data)
|
2004 |
2003 | ||||
| INTEREST INCOME: |
||||||
| Interest and Fees on Loans |
$ | 11,302 | $ | 8,617 | ||
| Interest and Dividends on Investment Securities |
4,793 | 4,258 | ||||
| Other Interest Income |
34 | 71 | ||||
| Total Interest Income |
16,129 | 12,946 | ||||
| INTEREST EXPENSE: |
||||||
| Interest on Deposits |
3,565 | 3,338 | ||||
| Interest on Borrowed Funds |
1,792 | 1,300 | ||||
| Total Interest Expense |
5,357 | 4,638 | ||||
| Net Interest Income |
10,772 | 8,308 | ||||
| Provision for Loan Losses |
805 | 740 | ||||
| Net Interest Income after Provision for Loan Losses |
9,967 | 7,568 | ||||
| NON-INTEREST INCOME: |
||||||
| Income from Fiduciary Activities |
515 | 492 | ||||
| Service Charges on Deposit Accounts |
2,195 | 1,890 | ||||
| Insurance Commission and Fee Income |
1,066 | 1,038 | ||||
| Mortgage Loan Fee Income |
358 | 719 | ||||
| Other Non-Interest Income |
962 | 816 | ||||
| Total Non-Interest Income |
5,096 | 4,955 | ||||
| Gains on Securities |
89 | 667 | ||||
| NON-INTEREST EXPENSE: |
||||||
| Salaries and Employee Benefits |
6,480 | 5,011 | ||||
| Expense of Premises and Fixed Assets |
1,478 | 1,154 | ||||
| Other Non-Interest Expense |
3,430 | 2,277 | ||||
| Total Non-Interest Expense |
11,388 | 8,442 | ||||
| Income before Income Taxes |
3,764 | 4,748 | ||||
| Income Taxes |
1,103 | 1,245 | ||||
| NET INCOME |
$ | 2,661 | $ | 3,503 | ||
| Net Earnings Per Share |
||||||
| Basic |
$ | 0.33 | $ | 0.43 | ||
| Diluted |
$ | 0.33 | $ | 0.43 | ||
| Dividends per Common Share |
$ | 0.24 | $ | 0.22 | ||
3
NBC CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEETS
| (Amounts in Thousands)
|
June 30, 2004 |
Dec. 31, 2003 |
||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS: |
||||||||
| Cash and Cash Equivalents: |
||||||||
| Noninterest-Bearing Balances |
$ | 41,923 | $ | 22,765 | ||||
| Interest-Bearing Balances |
5,396 | 35,444 | ||||||
| Federal Funds Sold and Securities Purchased Under Agreements to Resel |
292 | 20,046 | ||||||
| Total Cash and Due From Banks |
47,611 | 78,255 | ||||||
| Held-To-Maturity Securities (Market value of $38,503 at June 30, 2004 and $41,182 at December 31, 2003) |
35,752 | 38,408 | ||||||
| Available-For-Sale Securities |
409,727 | 340,527 | ||||||
| Total Securities |
445,479 | 378,935 | ||||||
| Loans |
804,975 | 589,114 | ||||||
| Less: Reserve for Loan Losses |
(11,430 | ) | (6,181 | ) | ||||
| Net Loans |
793,545 | 582,933 | ||||||
| Bank Premises and Equipment (Net) |
19,667 | 14,768 | ||||||
| Interest Receivable |
7,463 | 6,312 | ||||||
| Goodwill and Other Intangible Assets |
41,203 | 2,853 | ||||||
| Other Assets |
41,870 | 29,168 | ||||||
| TOTAL ASSETS |
$ | 1,396,838 | $ | 1,093,224 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY: |
||||||||
| Deposits: |
||||||||
| Non-Interest Bearing Deposits |
$ | 150,058 | $ | 109,479 | ||||
| Interest-Bearing Deposits |
914,713 | 706,360 | ||||||
| Total Deposits |
1,064,771 | 815,839 | ||||||
| Federal Funds Purchased and Securities Sold Under Agreements to Repurchase |
29,768 | 17,970 | ||||||
| Subordinated Debentures |
36,928 | 30,928 | ||||||
| Other Borrowed Funds |
144,763 | 109,207 | ||||||
| Interest Payable |
1,700 | 1,256 | ||||||
| Other Liabilities |
12,492 | 6,922 | ||||||
| TOTAL LIABILITIES |
1,290,422 | 982,122 | ||||||
| Shareholders’ Equity: |
||||||||
| Common Stock $1 Par Value, Authorized 50,000,000 shares, Issued 9,615,806 shares |
9,616 | 9,616 | ||||||
| Surplus and Undivided Profits |
132,893 | 130,703 | ||||||
| Accumulated Other Comprehensive Income (Loss) |
(8,026 | ) | (1,496 | ) | ||||
| Treasury Stock, at Cost |
(28,067 | ) | (27,721 | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY |
106,416 | 111,102 | ||||||
| TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY |
$ | 1,396,838 | $ | 1,093,224 | ||||
Note: Certain 2003 amounts have been reclassified to
conform to 2004 classifications.
4
NBC CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2004 AND 2003
(Unaudited)
| (Amounts in thousands)
|
2004 |
2003 |
||||||
| CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
| Net Income |
$ | 5,754 | $ | 7,086 | ||||
| Adjustments to Reconcile Net Income to Net Cash |
||||||||
| Depreciation and Amortization |
1,449 | 996 | ||||||
| Deferred Income Taxes (Credits) |
4,505 | 1,797 | ||||||
| Provision for Loan Losses |
1,480 | 1,490 | ||||||
| Loss (Gain) on Sale of Securities |
(97 | ) | (1,368 | ) | ||||
| (Increase) Decrease in Interest Receivable |
(1,151 | ) | 726 | |||||
| (Increase) Decrease in Other Assets |
(8,997 | ) | (1,329 | ) | ||||
| Increase (Decrease) in Interest Payable |
444 | (246 | ) | |||||
| Increase (Decrease) in Other Liabilities |
4,391 | 6,029 | ||||||
| Net Cash Provided by Operating Activities |
7,778 | 15,181 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
| Cash Paid in Excess of Cash Equivalents to Acquisition |
(43,291 | ) | 0 | |||||
| Proceeds from Maturities of Securities |
54,842 | 82,661 | ||||||
| Proceeds from Sale of Securities |
3,488 | 102,142 | ||||||
| Purchase of Securities |
(75,218 | ) | (190,233 | ) | ||||
| (Increase) Decrease in Loans |
(2,194 | ) | 12,556 | |||||
| (Additions) Disposal of Bank Premises and Equipment |
(2,430 | ) | (658 | ) | ||||
| Net Cash Provided by (Used in) Investing Activities |
(64,803 | ) | 6,468 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
| Increase (Decrease) in Deposits |
19,617 | (7,965 | ) | |||||
| Dividend Paid on Common Stock |
(3,921 | ) | (3,599 | ) | ||||
| Increase (Decrease) in Borrowed Funds |
11,031 | (2,978 | ) | |||||
| Purchase of Treasury Stock |
(346 | ) | (430 | ) | ||||
| Other Financing Activities |
0 | 9 | ||||||
| Net Cash Provided by (Used in)Financing Activities |
26,381 | (14,963 | ) | |||||
| Net Increase (Decrease) in Cash and Cash Equivalents |
(30,644 | ) | 6,686 | |||||
| Cash and Cash Equivalents at Beginning of Year |
78,255 | 56,918 | ||||||
| Cash and Cash Equivalents at End of Period |
$ | 47,611 | $ | 63,604 | ||||
| Interest |
$ | 9,145 | $ | 9,835 | ||||
| Income Taxes |
$ | 2,495 | $ | 2,679 | ||||