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
NB&T FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
| Ohio | 31-1004998 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) |
48 N. South Street, Wilmington, Ohio 45177
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number: (513) 382-1441
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 Act) Yes ¨ No x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date: As of August 4, 2004, 3,227,893 common shares were issued and outstanding.
June 30, 2004 Form 10-Q
Table of Contents
| Page | ||||||
| PART I | ||||||
| Item 1: |
Financial Statements |
3 | ||||
| 3 | ||||||
| 4 | ||||||
| 5 | ||||||
| 6 | ||||||
| 11 | ||||||
| Item 2: |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
12 | ||||
| Item 3: |
16 | |||||
| Item 4: |
16 | |||||
| Part II | ||||||
| Item 1: |
18 | |||||
| Item 2: |
18 | |||||
| Item 3: |
18 | |||||
| Item 4: |
18 | |||||
| Item 5: |
18 | |||||
| Item 6: |
18 | |||||
| 19 | ||||||
| Certifications |
47 | |||||
2
Condensed Consolidated Balance Sheets
| (Dollars in thousands) |
June 30, 2004 |
December 31, 2003 |
||||||
| (Unaudited) | ||||||||
| Assets |
||||||||
| Cash and due from banks |
$ | 13,427 | $ | 19,789 | ||||
| Interest-bearing demand deposits |
1,109 | 65 | ||||||
| Federal funds sold |
519 | 2,364 | ||||||
| Cash and cash equivalents |
15,055 | 22,218 | ||||||
| Securities - available-for-sale |
141,850 | 153,121 | ||||||
| Securities - held-to-maturity |
38,160 | 38,681 | ||||||
| Loans held for sale |
86 | |||||||
| Loans, net of allowance for loan losses of $ 4,681 and $4,830 |
406,607 | 404,905 | ||||||
| Premises and equipment |
14,662 | 14,057 | ||||||
| Federal Reserve and Federal Home Loan Bank stock |
8,019 | 7,877 | ||||||
| Goodwill and other intangibles |
6,706 | 7,039 | ||||||
| Interest receivable and other assets |
18,201 | 16,944 | ||||||
| Total assets |
$ | 649,260 | $ | 664,928 | ||||
| Liabilities and Stockholders’ Equity |
||||||||
| Liabilities |
||||||||
| Deposits |
||||||||
| Demand |
$ | 50,091 | $ | 56,781 | ||||
| Savings, NOW and Money Market |
216,430 | 217,297 | ||||||
| Time |
167,835 | 176,422 | ||||||
| Total deposits |
434,356 | 450,500 | ||||||
| Short-term borrowings |
24,747 | 21,909 | ||||||
| Long-term debt |
130,934 | 132,519 | ||||||
| Interest payable and other liabilities |
3,020 | 3,304 | ||||||
| Total liabilities |
593,057 | 608,232 | ||||||
| Commitments and Contingencies |
||||||||
| Stockholders’ Equity |
||||||||
| Preferred stock, no par value, authorized 100,000 shares; none issued |
||||||||
| Common stock, no par value; authorized 6,000,000 shares; issued – 3,818,950 shares |
1,000 | 1,000 | ||||||
| Additional paid-in capital |
9,760 | 9,692 | ||||||
| Retained earnings |
54,001 | 52,883 | ||||||
| Unearned employee stock ownership plan (ESOP) shares |
(1,421 | ) | (1,506 | ) | ||||
| Accumulated other comprehensive income |
(1,299 | ) | 477 | |||||
| Treasury stock; 575,518 and 596,418 shares at cost in 2003 and 2002 |
(5,838 | ) | (5,850 | ) | ||||
| Total stockholders’ equity |
56,203 | 56,696 | ||||||
| Total liabilities and stockholders’ equity |
$ | 649,260 | $ | 664,928 | ||||
| See Notes to Condensed Consolidated Financial Statements | 3 |
Condensed Consolidated Statements of Income
| Three Months Ended June 30, |
Six Months Ended June 30, | |||||||||||
| (Dollars in thousands, except per share amounts) |
2004 |
2003 |
2004 |
2003 | ||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Interest and Dividend Income |
||||||||||||
| Loans |
$ | 6,182 | $ | 6,685 | $ | 12,463 | $ | 13,462 | ||||
| Securities-Taxable |
1,203 | 1,542 | 2,359 | 3,243 | ||||||||
| Securities-Tax-exempt |
483 | 618 | 1,077 | 1,286 | ||||||||
| Federal funds sold and other |
23 | 33 | 53 | 64 | ||||||||
| Dividends on Federal Home Loan and Federal Reserve Bank stock |
83 | 81 | 165 | 160 | ||||||||
| Total interest and dividend income |
7,974 | 8,959 | 16,117 | 18,215 | ||||||||
| Interest Expense |
||||||||||||
| Deposits |
1,342 | 1,887 | 2,684 | 3,955 | ||||||||
| Short-term borrowings |
47 | 50 | 95 | 103 | ||||||||
| Long-term debt |
1,545 | 1,596 | 3,104 | 3,121 | ||||||||
| Total interest expense |
2,934 | 3,533 | 5,883 | 7,179 | ||||||||
| Net Interest Income |
5,040 | 5,426 | 10,234 | 11,036 | ||||||||
| Provision for Loan Losses |
450 | 487 | 900 | 1,027 | ||||||||
| Net Interest Income After Provision for Loan Losses |
4,590 | 4,939 | 9,334 | 10,009 | ||||||||
| Non-interest Income |
||||||||||||
| Trust income |
257 | 223 | 510 | 417 | ||||||||
| Service charges and fees |
887 | 872 | 1,683 | 1,619 | ||||||||
| ATM network fees |
87 | 114 | 168 | 227 | ||||||||
| Insurance agency commissions |
649 | 707 | 1,313 | 1,358 | ||||||||
| Net gains on sales of securities available-for-sale |
0 | 361 | 527 | 907 | ||||||||
| Other |
331 | 360 | 641 | 702 | ||||||||
| Total non-interest income |
2,211 | 2,637 | 4,842 | 5,230 | ||||||||
| Non-interest Expense |
||||||||||||
| Salaries and employee benefits |
2,832 | 2,812 | 5,676 | 5,869 | ||||||||
| Net occupancy expense |
412 | 446 | 868 | 893 | ||||||||
| Equipment and data processing expense |
719 | 830 | 1,516 | 1,606 | ||||||||
| Professional fees |
346 | 320 | 681 | 656 | ||||||||
| Marketing expense |
95 | 171 | 217 | 331 | ||||||||
| State franchise tax |
167 | 172 | 342 | 350 | ||||||||
| Amortization of intangibles |
166 | 178 | 333 | 352 | ||||||||
| Other |
466 | 597 | 1,193 | 1,146 | ||||||||
| Total non-interest expense |
5,203 | 5,526 | 10,826 | 11,203 | ||||||||
| Income Before Income Tax |
1,598 | 2,050 | 3,350 | 4,036 | ||||||||
| Provision for Income Taxes |
328 | 459 | 658 | 808 | ||||||||
| Net Income |
$ | 1,270 | $ | 1,591 | $ | 2,692 | $ | 3,228 | ||||
| Basic Earnings Per Share |
$ | .40 | $ | .51 | $ | .86 | $ | 1.03 | ||||
| Diluted Earnings Per Share |
$ | .40 | $ | .50 | $ | .85 | $ | 1.02 | ||||
| Dividends Declared Per Share |
$ | .25 | $ | .24 | $ | .50 | $ | .48 | ||||
| See Notes to Condensed Consolidated Financial Statements | 4 |
Condensed Consolidated Statements of Cash Flows
| Six Months Ended June 30, |
||||||||
| (Dollars in thousands) |
2004 |
2003 |
||||||
| (Unaudited) | ||||||||
| Operating Activities | ||||||||
| Net income |
$ | 2,692 | $ | 3,228 | ||||
| Items not requiring (providing) cash |
||||||||
| Depreciation and amortization |
1,218 | 1,233 | ||||||
| Provision for loan losses |
900 | 1,027 | ||||||
| Amortization of premiums and discounts on securities |
684 | 864 | ||||||
| Net realized gains on available-for-sale securities |
(527 | ) | (907 | ) | ||||
| FHLB stock dividends |
(142 | ) | (138 | ) | ||||
| Net change in: |
||||||||
| Loans held for sale |
86 | (322 | ) | |||||
| Other assets and liabilities |
(237 | ) | (399 | ) | ||||
| Net cash provided by operating activities |
4,674 | 4,586 | ||||||