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, 2005
| ¨ | 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: 0-50801
SI FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
| United States | 84-1655232 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
| 803 Main Street, Willimantic, Connecticut | 06226 | |
| (Address of principal executive offices) | (Zip Code) | |
(860) 423-4581
(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 Act). Yes ¨ No x
As of May 8, 2005, there were 12,563,750 shares of the Registrant’s Common Stock outstanding.
SI FINANCIAL GROUP, INC. AND SUBSIDIARIES
TABLE OF CONTENTS
SI FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
| (Unaudited / Dollars in Thousands, Except Share Amounts) |
March 31, 2005 |
December 31, 2004 |
||||||
| ASSETS: | ||||||||
| Cash and due from banks: |
||||||||
| Noninterest-bearing deposits and cash |
$ | 21,456 | $ | 21,647 | ||||
| Interest-bearing deposits |
9,336 | 8,728 | ||||||
| Federal funds sold |
3,500 | 400 | ||||||
| Cash and cash equivalents |
34,292 | 30,775 | ||||||
| Available for sale securities, at fair value |
128,926 | 120,557 | ||||||
| Loans held for sale |
— | 200 | ||||||
| Loans receivable (net of allowance for loan losses of $3.4 million at March 31, 2005 and $3.2 million at December 31, 2004) |
436,965 | 447,957 | ||||||
| Accrued interest receivable |
2,774 | 2,638 | ||||||
| Federal Home Loan Bank Stock, at cost |
4,490 | 4,313 | ||||||
| Cash surrender value of bank-owned life insurance |
7,633 | 7,561 | ||||||
| Premises and equipment, net |
7,075 | 6,586 | ||||||
| Core deposit intangible |
268 | 292 | ||||||
| Deferred tax asset, net |
2,596 | 2,044 | ||||||
| Other assets |
2,276 | 1,726 | ||||||
| TOTAL ASSETS |
$ | 627,295 | $ | 624,649 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||||
| Liabilities: | ||||||||
| Deposits: |
||||||||
| Noninterest-bearing |
$ | 46,620 | $ | 46,049 | ||||
| Interest-bearing |
420,296 | 411,709 | ||||||
| Total Deposits |
466,916 | 457,758 | ||||||
| Mortgagors’ and investors’ escrow accounts |
1,315 | 2,722 | ||||||
| Federal Home Loan Bank advances |
67,494 | 72,674 | ||||||
| Junior subordinated debt owed to unconsolidated trust |
7,217 | 7,217 | ||||||
| Accrued expenses and other liabilities |
3,870 | 3,469 | ||||||
| TOTAL LIABILITIES |
546,812 | 543,840 | ||||||
| Commitments and contingencies |
— | — | ||||||
| Stockholders’ Equity: |
||||||||
| Preferred stock ($.01 par value; 1,000,000 shares authorized; no shares issued and outstanding) |
— | — | ||||||
| Common stock ($.01 par value; 75,000,000 shares authorized; 12,563,750 shares issued and outstanding at March 31, 2005) |
126 | 126 | ||||||
| Additional paid-in capital |
50,947 | 50,947 | ||||||
| Unallocated common shares held by ESOP |
(4,844 | ) | (4,844 | ) | ||||
| Retained earnings |
35,614 | 34,870 | ||||||
| Accumulated other comprehensive loss |
(1,360 | ) | (290 | ) | ||||
| TOTAL STOCKHOLDERS’ EQUITY |
80,483 | 80,809 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ | 627,295 | $ | 624,649 | ||||
See accompanying notes to unaudited interim consolidated financial statements.
1
SI FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
| (Unaudited / Dollars in Thousands, Except Share Amounts) |
Three Months Ended March 31, |
||||||
| 2005 |
2004 |
||||||
| Interest and dividend income: | |||||||
| Loans, including fees |
$ | 6,623 | $ | 5,910 | |||
| Investment securities: |
|||||||
| Taxable |
1,139 | 814 | |||||
| Tax-exempt |
6 | 6 | |||||
| Dividends |
50 | 25 | |||||
| Other |
74 | 28 | |||||
| TOTAL INTEREST AND DIVIDEND INCOME |
7,892 | 6,783 | |||||
| Interest expense: | |||||||
| Deposits |
1,814 | 1,494 | |||||
| Federal Home Loan Bank advances |
673 | 669 | |||||
| Subordinated debt |
105 | 87 | |||||
| TOTAL INTEREST EXPENSE |
2,592 | 2,250 | |||||
| NET INTEREST AND DIVIDEND INCOME BEFORE PROVISION FOR LOAN LOSSES |
5,300 | 4,533 | |||||
| Provision for loan losses | 105 | 150 | |||||
| NET INTEREST AND DIVIDEND INCOME AFTER PROVISION FOR LOAN LOSSES |
5,195 | 4,383 | |||||
| Noninterest income: | |||||||
| Service fees |
875 | 717 | |||||
| Wealth management fees |
238 | 250 | |||||
| Increase in cash surrender value of bank-owned life insurance |
72 | 86 | |||||
| Net gain on available for sale securities |
20 | 184 | |||||
| Net gain (loss) on sale of loans |
99 | (25 | ) | ||||
| Other |
23 | 23 | |||||
| TOTAL NONINTEREST INCOME |
1,327 | 1,235 | |||||
| Noninterest expenses: | |||||||
| Salaries and employee benefits |
2,779 | 2,282 | |||||
| Occupancy |
597 | 583 | |||||
| Furniture and equipment |
284 | 260 | |||||
| Computer services |
312 | 256 | |||||
| Electronic banking fees |
149 | 161 | |||||
| Outside professional services |
263 | 195 | |||||
| Marketing |
131 | 120 | |||||
| Supplies and printing |
136 | 82 | |||||
| FDIC deposit insurance and regulatory assessment |
49 | 24 | |||||
| Impairment charge – other asset |
— | 51 | |||||
| Other real estate operations |
5 | 7 | |||||
| Other |
489 | 412 | |||||
| TOTAL NONINTEREST EXPENSES |
5,194 | 4,433 | |||||
See accompanying notes to unaudited interim consolidated financial statements.
2
SI FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - Continued
| (Unaudited / Dollars in Thousands, Except Share Amounts) |
Three Months Ended March 31, | |||||
| 2005 |
2004 | |||||
| INCOME BEFORE INCOME TAX PROVISION |
1,328 | 1,185 | ||||
| Income tax provision | 426 | 381 | ||||
| NET INCOME |
$ | 902 | $ | 804 | ||
| NET INCOME PER COMMON SHARE: | ||||||
| Basic |
$ | 0.07 | N/A | |||
| Diluted |
$ | 0.07 | N/A | |||
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING: | ||||||
| Basic |
12,079,320 | N/A | ||||
| Diluted |
12,079,320 | N/A | ||||
See accompanying notes to unaudited interim consolidated financial statements.
3
SI FINANCIAL GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
THREE MONTHS ENDED MARCH 31, 2005 AND 2004
| Common Stock |
Additional Paid-in |
Unallocated Common Shares Held |
Retained Earnings |
Accumulated Other Comprehensive |
Total Stockholders’ |
|||||||||||||||||||
| (Unaudited / Dollars in Thousands, Except Share Amounts) |
Shares |
Dollars |
||||||||||||||||||||||
| THREE MONTHS ENDED MARCH 31, 2004: |
||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2003 | — | $ | — | $ | — | $ | — | $ | 33,582 | $ | 517 | $ | 34,099 | |||||||||||
| Comprehensive income: |
||||||||||||||||||||||||
| Net income |
— | — | — | — | 804 | — | 804 | |||||||||||||||||
| Change in net unrealized gains on available for sale securities, net of taxes |
— | — | — | — | — | 176 | 176 | |||||||||||||||||
| Total comprehensive income |
— | — | — | — | 804 | 176 | 980 | |||||||||||||||||
| BALANCE AT MARCH 31, 2004 | — | $ | — | $ | — | $ | — | $ | 34,386 | $ | 693 | $ | 35,079 | |||||||||||
| THREE MONTHS ENDED MARCH 31, 2005: |
||||||||||||||||||||||||
| BALANCE AT DECEMBER 31, 2004 | 12,563,750 | $ | 126 | $ | 50,947 | $ | (4,844 | ) | $ | 34,870 | $ | (290 | ) | $ | 80,809 | |||||||||
| Cash dividend declared ($0.03 per share) |
— | — | — | — | (158 | ) | — | |||||||||||||||||