Back to GetFilings.com



UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

     For the quarterly period ended June 30, 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 1-14671

 

 

WORONOCO BANCORP, INC.

(Exact name of registrant as specified in its charter)

 

 

Delaware   04-3444269

(State or other jurisdiction of

incorporation or organization)

  

(I.R.S. Employer

Identification No.)

 

31 Court Street, Westfield, Massachusetts   01085
(Address of principal executive offices)   (Zip Code)

 

(413) 568-9141

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

 

 

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 Rule 12b-2 of the Exchange Act).    Yes  x    No  ¨

 

As of July 30, 2004, there were 3,676,076 shares of the Registrant’s Common Stock outstanding.

 

WORONOCO BANCORP, INC.

FORM 10-Q

 

INDEX

 

         Page
PART I.  

         FINANCIAL INFORMATION

    
Item 1.  

Financial Statements (unaudited)

     
    Consolidated Balance Sheets at June 30, 2004 and December 31, 2003.    1
    Consolidated Income Statements for the Three and Six Months Ended June 30, 2004 and 2003    2
    Consolidated Statements of Changes in Stockholders’ Equity for the Six Months Ended June 30, 2004 and 2003    3
    Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2004 and 2003    4
    Notes to Unaudited Consolidated Financial Statements    5
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations    8
Item 3.   Quantitative and Qualitative Disclosures About Market Risk    29
Item 4.   Controls and Procedures    29
PART II:            OTHER INFORMATION     
Item 1.   Legal Proceedings    30
Item 2.   Changes in Securities, Use of Proceeds and Issuer Purchases of Equity Securities    30
Item 3.   Defaults Upon Senior Securities    30
Item 4.   Submission of Matters to a Vote of Security Holders    31
Item 5.   Other Information    31
Item 6.   Exhibits and Reports on Form 8-K    32
SIGNATURES    33

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements (unaudited)

 

WORONOCO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars In Thousands)

 

    

Unaudited

June 30,

2004

    

December 31,

2003

  

Assets

                 

Cash and due from banks

    $ 18,704     $ 18,110  

Interest-bearing deposits

      1,047       1,069  

Federal funds sold

      3,725       7,115  
    
 

Cash and cash equivalents

      23,476       26,294  

Securities available for sale, at fair value

      235,959       233,376  

Federal Home Loan Bank stock, at cost

      17,091       15,373  

Loans, net of allowance for loan losses ($3,511 at June 30, 2004 and $3,280 at December 31, 2003)

      579,767       497,962  

Other real estate owned, net

      55       —    

Premises and equipment, net

      9,940       10,131  

Accrued interest receivable

      3,211       3,156  

Goodwill and other intangible assets, net

      1,810       1,835  

Cash surrender value of life insurance

      6,263       6,143  

Net deferred tax asset

      888       —    

Other assets

      3,605       1,782  
    
 

Total assets

    $ 882,065     $ 796,052  
    
 

Liabilities and Stockholders’ Equity

                 

Deposits

    $ 447,175     $ 419,473  

Mortgagors’ escrow accounts

      1,627       1,825  

Short-term borrowings

      77,057       42,466  

Long-term debt

      266,733       248,598  

Net deferred tax liability

      —         551  

Accrued expenses and other liabilities

      10,761       4,396  
    
 

Total liabilities

      803,353       717,309  
    
 

Commitments and contingencies

                 

Stockholders’ Equity:

                 

Preferred stock ($.01 par value; 2,000,000 shares authorized; no shares issued and outstanding)

      —         —    

Common stock ($.01 par value; 16,000,000 shares authorized; 5,998,860 shares issued; shares outstanding: 3,672,804 at June 30, 2004 and 3,631,974 at December 31, 2003)

      60       60  

Additional paid-in capital

      61,363       60,337  

Unearned compensation

      (4,189 )     (3,087 )

Shares issuable under stock awards plan

      1,560       —    

Retained earnings

      49,619       48,365  

Accumulated other comprehensive income

      1,174       3,731  

Treasury stock, at cost (2,326,056 shares at June 30, 2004 and 2,366,886 shares at December 31, 2003)

      (30,875 )     (30,663 )
    
 

Total stockholders’ equity

      78,712       78,743  
    
 

Total liabilities and stockholders’ equity

    $ 882,065     $ 796,052  
    
 

 

See accompanying notes to unaudited consolidated financial statements

 

1

WORONOCO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED INCOME STATEMENTS

(In Thousands Except Per Share Amounts)

 

    

Unaudited

Three Months Ended

June 30,

    

Unaudited

Six Months Ended

June 30,

  
     2004
    2003
     2004
    2003
  

Interest and dividend income:

                               

Loans, including fees

    $ 7,181    $ 7,229     $ 14,174    $ 14,597  

Interest and dividends on securities:

                               

Taxable interest

      1,908      1,659       3,895      3,363  

Tax exempt interest

      247      241       494      488  

Dividends

      499      427       1,013      940  

Trading account securities

      —        143       —        333  

Federal funds sold

      2      20       6      33  

Other

      2      5       3      7  
    
  
 
  

Total interest and dividend income

      9,839      9,724       19,585      19,761  
    
  
 
  

Interest expense:

                               

Deposits

      1,582      1,794       3,114      3,489  

Borrowings

      3,189      3,117       6,241      6,170  
    
  
 
  

Total interest expense

      4,771      4,911       9,355      9,659  
    
  
 
  

Net interest and dividend income

      5,068      4,813       10,230      10,102  

Provision for loan losses

      47      76       197      76  
    
  
 
  

Net interest and dividend income, after provision for loan losses

      5,021      4,737       10,033      10,026  
    
  
 
  

Non-interest income:

                               

Fee income

      1,085      793       2,125      1,548  

Insurance commissions

      369      292       792      655  

Gain on sales of securities available for sale, net

      —        11       —        415  

Net gain on trading account activities

      —        1,194       —        630  

Gain on sales of loans, net

      —        382       80      785  

Gain on sale of supermarket branch

      —        —         —        183  

Penalty for prepayment of FHLB advances

      —        —         —        (539 )

Loss on derivative instruments and hedging activities

      —        (5 )     —        —    

Other income

      60      13       130      19  
    
  
 
  

Total non-interest income

      1,514      2,680       3,127      3,696  
    
  
 
  

Non-interest expenses:

                               

Salaries and employee benefits

      2,711      2,449       5,495      4,924  

Occupancy and equipment

      523      473       1,068      1,026  

Marketing

      144      220       224      373  

Professional services

      259      370       530      761  

Data processing

      259      259       529      516  

Other general and administrative

      713      662       1,347      1,363  
    
  
 
  

Total non-interest expenses

      4,609      4,433       9,193      8,963  
    
  
 
  

Income before income taxes

      1,926      2,984       3,967      4,759  

Provision for income taxes

      562      866       1,170      1,359  
    
  
 
  

Net income

    $ 1,364    $ 2,118     $ 2,797    $ 3,400  
    
  
 
  

Earnings per share:

                               

Basic

    $ 0.40    $ 0.64     $ 0.82    $ 1.03  

Diluted

    $ 0.38    $ 0.59     $ 0.77    $ 0.96  

Weighted average shares outstanding:

                               

Basic

      3,416,986      3,318,293       3,403,635      3,307,455  

Diluted

      3,615,752      3,565,859       3,610,822      3,537,778  

 

See accompanying notes to unaudited consolidated financial statements

 

2

WORONOCO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Six Months Ended June 30, 2004 and 2003

(Dollars In Thousands)

(Unaudited)

 

    

Common

Stock

   

Additional

Paid-in

Capital