CALIFORNIA
|
6022
|
94-2792841
|
||
(State or other jurisdiction
of incorporation or organization) |
(Primary Standard Industrial
Classification Code Number) |
(I.R.S. Employer
Identification No.) |
Richard P. Smith
|
Copies To:
|
Copies To:
|
||
President and CEO
|
Karen L. Witt, Esq.
|
Thomas G. Reddy, Esq.
|
||
TriCo Bancshares
|
Rothgerber Johnson & Lyons LLP
|
Bingham McCutchen, LLP
|
||
63 Constitution Drive
|
1200 17th Street, #3000
|
Three Embarcadero Center
|
||
Chico, California 95973
|
Denver, Colorado 80202
|
San Francisco, California 94111
|
||
(530) 898-0300
|
(303) 623-9000
|
(415) 393-2188
|
||
(Name and address of agent for service)
|
Title of Each Class of Securities Being Registered
|
Amount To Be Registered(1)
|
Proposed Maximum
Offering Price Per Share(2) |
Proposed Maximum Aggregate Offering Price(2)
|
Amount of Registration Fee
|
|||||||
|
|
|
|
|
|
|
|
|
|||
Common Stock, no par value (and associated stock purchase rights)(3)
|
784,000 shs.
|
$
|
24.60
|
$
|
19,332,075.20
|
$
|
1,778.55
|
(1)
|
|
Based on the maximum number of shares of the registrants common stock that may be issued in connection with the proposed merger of North State National
Bank into a subsidiary of the registrant.
|
(2)
|
|
Calculated in accordance with Rule 457(f)(1) and (3) on the basis of the market value of the shares of North State stock being exchanged less the cash to be
paid by the registrant in connection with the exchange.
|
(3)
|
|
Prior to the occurrence of certain events, the stock purchase rights will not be evidenced separately from the common stock.
|
Very truly yours,
|
||
North State National Bank
|
||
John A. Lucchesi, President and CEO
|
By Order of the Board of Directors
|
||||||||
|
||||||||
Date: , 2003
|
Robert M. Foster, Secretary
|
1
|
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2
|
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2
|
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2
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2
|
||
4
|
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5
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5
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5
|
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6
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8
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13
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15
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15
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17
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18
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18
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18
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19
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19
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20
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20
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20
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22
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23
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31
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35
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35
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36
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38
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39
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40
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40
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40
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41
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41
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42
|
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43
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44
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44
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44
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||
46
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52
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59
|
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62
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65
|
||
65
|
||
67
|
||
74
|
||
78
|
||
80
|
||
80
|
||
82
|
||
83
|
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84
|
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87
|
||
87
|
||
88
|
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88
|
||
88
|
||
90
|
||
93
|
||
93
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||
93
|
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93
|
||
93
|
||
94
|
||
94
|
||
94
|
||
95
|
||
95
|
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95
|
||
98
|
||
101
|
||
103
|
||
104
|
||
104
|
||
104
|
||
105
|
||
108
|
||
113
|
||
114
|
||
115
|
||
115
|
||
116
|
||
117
|
||
117
|
||
117
|
118
|
||
118
|
||
118
|
||
118
|
||
118
|
||
119
|
||
119
|
||
119
|
||
119
|
||
119
|
||
120
|
||
121
|
||
121
|
||
122
|
||
123
|
||
124
|
||
124
|
||
125
|
||
125
|
||
125
|
||
125
|
||
126
|
||
F-1
|
||
Exhibits:
|
||
Exhibit A Acquisition Agreement and Plan of Merger dated October 3, 2002, among TriCo
Bancshares, Tri Counties Bank and North State National Bank and related merger agreement
|
||
Exhibit B Fairness Opinion of RBC Dain Rauscher, Inc. dated October 3, 2002
|
||
Exhibit C Form of Tax Opinion of Rothgerber Johnson & Lyons LLP
|
||
Exhibit D Section 214a(b) of the National Bank Act concerning dissenters rights of North
State shareholders
|
(i)
|
|
The cash component will be $13,000,000 plus the amount of cash North State optionholders pay to exercise options between October 3, 2002, and the closing date
of the merger. The maximum additional amount is approximately $585,000.
|
(ii)
|
|
The stock component will be 784,000 shares of TriCo common stock, unless the average closing price is greater than $29.90 or less than $22.10. If the average
closing price is greater than $29.90, the number of shares will be reduced so that the product of the average closing price and the number of shares equals $23,441,600 (784,000 times $29.90). If the average closing price is less than $22.10, the
number of shares will be increased so that the product of the average closing price and the number of shares equals $17,326,400 (784,000 times $22.10). The sum of the cash component and the value of the stock component (using the average closing
price as the value of one share of TriCo common stock) is the aggregate merger consideration.
|
(iii)
|
|
Each outstanding share of North State common stock will be converted into the right to receive cash, TriCo stock or a combination of cash and TriCo stock with a
value equal to the aggregate merger consideration divided by the number of outstanding shares of North State common stock plus the number of shares issuable upon exercise of all outstanding North State options, again using the average closing price
as the value of one share of TriCo common stock. The minimum per share consideration is approximately $23.52 and the maximum is approximately $28.17.
|
|
|
compliance with covenants;
|
|
|
accuracy of representations and warranties;
|
|
|
approval of the merger by North State shareholders;
|
|
|
receipt of all necessary regulatory approvals, including approval by the Federal Deposit Insurance Corporation and the California Department of Financial
Institutions;
|
|
|
registration under applicable federal securities laws of the TriCo stock to be issued under the acquisition agreement; and
|
|
|
the absence of any litigation or regulatory proceeding presenting significant risk of material damages against North State, Tri Counties Bank, TriCo or
their shareholders.
|
As of and for the Year Ended December 31, 2001
|
||||||||||||
TriCo
|
North State
|
|||||||||||
Historical
|
Pro Forma Combined
|
Historical
|
Equivalent Pro Forma
|
|||||||||
Book value
|
$
|
12.42
|
$
|
13.53
|
$
|
10.06
|
$
|
13.92
|
||||
Cash dividends
|
|
0.80
|
|
0.80
|
|
0.35
|
|
0.82
|
||||
Net income (basic)
|
|
1.76
|
|
1.77
|
|
1.47
|
|
1.82
|
||||
Net income (diluted)
|
|
1.72
|
|
1.72
|
|
1.41
|
|
1.77
|
As of and for the Nine Months Ended September 30, 2002
|
||||||||||||
TriCo
|
North State
|
|||||||||||
Historical
|
Pro Forma Combined
|
Historical
|
Equivalent Pro Forma
|
|||||||||
Book value
|
$
|
13.70
|
$
|
14.85
|
$
|
11.07
|
$
|
15.27
|
||||
Cash dividends
|
|
0.60
|
|
0.60
|
|
0.40
|
|
0.62
|
||||
Net income (basic)
|
|
1.47
|
|
1.49
|
|
1.26
|
|
1.53
|
||||
Net income (diluted)
|
|
1.44
|
|
1.45
|
|
1.20
|
|
1.49
|
Historical
|
|||||||||
Date
|
TriCo
|
North State
|
Equivalent Pro Forma
|
||||||
October 4, 2002
|
$
|
23.92
|
$
|
22.55
|
$
|
24.61
|
|||
January 14, 2003
|
|
25.49
|
|
24.60
|
|
25.54
|
|
|
the appointment of Mr. Nettleton to the boards of directors of TriCo and Tri Counties Bank;
|
|
|
the potential for severance payments to Joseph Drakulic and Gary Griswold under certain agreements with North State; and
|
|
|
the payment of severance benefits and an ongoing employment relationship for John Lucchesi, the president and chief executive officer of North State.
|
Nine Months Ended
September 30, |
Year Ended December 31,
|
|||||||||||||||||||||||||||
2002
|
2001
|
2001
|
2000
|
1999
|
1998
|
1997
|
||||||||||||||||||||||
(unaudited)
|
(audited)
|
|||||||||||||||||||||||||||
(dollars in thousands, except per share data)
|
||||||||||||||||||||||||||||
Statement of Operations Data:
1
|
||||||||||||||||||||||||||||
Interest income
|
$
|
48,468
|
|
$
|
55,138
|
|
$
|
71,998
|
|
$
|
76,327
|
|
$
|
67,808
|
|
$
|
64,404
|
|
$
|
59,877
|
|
|||||||
Interest expense
|
|
9,669
|
|
|
19,130
|
|
|
23,486
|
|
|
28,543
|
|
|
24,370
|
|
|
25,296
|
|
|
23,935
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
|
38,799
|
|
|
36,008
|
|
|
48,512
|
|
|
47,784
|
|
|
43,438
|
|
|
39,108
|
|
|
35,942
|
|
|||||||
Provision for loan losses
|
|
2,000
|
|
|
3,250
|
|
|
4,400
|
|
|
5,000
|
|
|
3,550
|
|
|
4,200
|
|
|
3,000
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income after provision for loan losses
|
|
36,799
|
|
|
32,758
|
|
|
44,112
|
|
|
42,784
|
|
|
39,888
|
|
|
34,908
|
|
|
32,942
|
|
|||||||
Noninterest income
|
|
13,182
|
|
|
12,318
|
|
|
16,238
|
|
|
14,922
|
|
|
12,775
|
|
|
13,494
|
|
|
9,566
|
|
|||||||
Noninterest expense
|
|
33,498
|
|
|
30,437
|
|
|
40,607
|
|
|
37,846
|
|
|
34,726
|
|
|
34,583
|
|
|
32,932
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
|
16,483
|
|
|
14,639
|
|
|
19,743
|
|
|
19,860
|
|
|
17,937
|
|
|
13,819
|
|
|
9,576
|
|
|||||||
Provision for income taxes
|
|
6,163
|
|
|
5,578
|
|
|
7,324
|
|
|
7,237
|
|
|
6,534
|
|
|
5,049
|
|
|
3,707
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
10,320
|
|
$
|
9,061
|
|
$
|
12,419
|
|
$
|
12,623
|
|
$
|
11,403
|
|
$
|
8,770
|
|
$
|
5,869
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Per Share Data:
2
|
||||||||||||||||||||||||||||
Diluted earnings per share
|
$
|
1.44
|
|
$
|
1.25
|
|
$
|
1.72
|
|
$
|
1.72
|
|
$
|
1.56
|
|
$
|
1.21
|
|
$
|
0.81
|
|
|||||||
Cash dividend paid per share
|
$
|
0.60
|
|
$
|
0.60
|
|
$
|
0.80
|
|
$
|
0.79
|
|
$
|
0.70
|
|
$
|
0.49
|
|
$
|
0.43
|
|
|||||||
Common shareholders equity
|
$
|
13.70
|
|
$
|
12.60
|
|
$
|
12.42
|
|
$
|
11.87
|
|
$
|
10.22
|
|
$
|
10.22
|
|
$
|
9.31
|
|
|||||||
Balance Sheet Data (end of period):
|
||||||||||||||||||||||||||||
Total loans, gross
|
$
|
683,554
|
|
$
|
668,157
|
|
$
|
658,732
|
|
$
|
640,391
|
|
$
|
587,979
|
|
$
|
532,433
|
|
$
|
448,967
|
|
|||||||
Total assets
|
|
1,073,523
|
|
|
996,150
|
|
|
1,005,447
|
|
|
972,071
|
|
|
924,796
|
|
|
904,599
|
|
|
826,165
|
|
|||||||
Total deposits
|
|
937,895
|
|
|
859,480
|
|
|
880,393
|
|
|
837,832
|
|
|
794,110
|
|
|
769,173
|
|
|
724,094
|
|
|||||||
Total long-term debt
|
|
22,932
|
|
|
32,963
|
|
|
22,956
|
|
|
33,983
|
|
|
45,505
|
|
|
37,924
|
|
|
11,440
|
|
|||||||
Total shareholders equity
|
$
|
96,421
|
|
$
|
88,380
|
|
$
|
86,933
|
|
$
|
85,233
|
|
$
|
73,123
|
|
$
|
72,029
|
|
$
|
65,124
|
|
|||||||
Selected Financial Ratios:
|
||||||||||||||||||||||||||||
Return on average assets
|
|
1.36
|
%
|
|
1.25
|
%
|
|
1.27
|
%
|
|
1.35
|
%
|
|
1.26
|
%
|
|
1.03
|
%
|
|
0.75
|
%
|
|||||||
Return on average common shareholders equity
|
|
14.92
|
%
|
|
13.90
|
%
|
|
14.19
|
%
|
|
16.03
|
%
|
|
15.59
|
%
|
|
12.80
|
%
|
|
9.34
|
%
|
|||||||
Total risk-based capital ratio
|
|
11.89
|
%
|
|
11.69
|
%
|
|
11.68
|
%
|
|
12.20
|
%
|
|
11.77
|
%
|
|
11.83
|
%
|
|
11.90
|
%
|
|||||||
Net interest margin
3
|
|
5.72
|
%
|
|
5.58
|
%
|
|
5.58
|
%
|
|
5.70
|
%
|
|
5.40
|
%
|
|
5.19
|
%
|
|
5.16
|
%
|
|||||||
Allowance for loan losses to total loans outstanding at end of period
|
|
2.10
|
%
|
|
1.86
|
%
|
|
1.98
|
%
|
|
1.82
|
%
|
|
1.88
|
%
|
|
1.54
|
%
|
|
1.44
|
%
|
(1)
|
|
Tax-exempt securities are presented on an actual yield basis.
|
(2)
|
|
Retroactively adjusted to reflect 3-for-2 stock split effected in 1998.
|
(3)
|
|
Calculated on a tax equivalent basis.
|
Nine Months Ended September 30,
|
Year Ended December 31,
|
|||||||||||||||||||||||||||
2002
|
2001
|
2001
|
2000
|
1999
|
1998
|
1997
|
||||||||||||||||||||||
(unaudited)
|
(audited)
|
|||||||||||||||||||||||||||
(dollars in thousands, except per share data)
|
||||||||||||||||||||||||||||
Statement of Operations Data:
|
||||||||||||||||||||||||||||
Interest income
|
$
|
5,919
|
|
$
|
6,509
|
|
$
|
8,551
|
|
$
|
8,665
|
|
$
|
7,796
|
|
$
|
6,870
|
|
$
|
6,139
|
|
|||||||
Interest expense
|
|
1,550
|
|
|
2,627
|
|
|
3,284
|
|
|
3,803
|
|
|
3,194
|
|
|
2,820
|
|
|
2,473
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income
|
|
4,369
|
|
|
3,882
|
|
|
5,303
|
|
|
4,862
|
|
|
4,603
|
|
|
4,050
|
|
|
3,666
|
|
|||||||
Provision for loan losses
|
|
|
|
|
90
|
|
|
169
|
|
|
|
|
|
145
|
|
|
|
|
|
37
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net interest income after provision for loan losses
|
|
4,369
|
|
|
3,792
|
|
|
5,134
|
|
|
4,862
|
|
|
4,458
|
|
|
4,050
|
|
|
3,629
|
|
|||||||
Noninterest income
|
|
421
|
|
|
423
|
|
|
625
|
|
|
435
|
|
|
473
|
|
|
415
|
|
|
382
|
|
|||||||
Noninterest expense
|
|
2,144
|
|
|
2,062
|
|
|
2,744
|
|
|
2,663
|
|
|
2,597
|
|
|
2,477
|
|
|
2,521
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Income before income taxes
|
|
2,646
|
|
|
2,153
|
|
|
3,015
|
|
|
2,633
|
|
|
2,333
|
|
|
1,989
|
|
|
1,490
|
|
|||||||
Provision for income taxes
|
|
1,106
|
|
|
897
|
|
|
1,226
|
|
|
1,054
|
|
|
900
|
|
|
805
|
|
|
588
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
1,540
|
|
$
|
1,256
|
|
$
|
1,789
|
|
$
|
1,579
|
|
$
|
1,434
|
|
$
|
1,184
|
|
$
|
902
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Per Share Data:
1
|
||||||||||||||||||||||||||||
Diluted earnings per share
|
$
|
1.20
|
|
$
|
0.99
|
|
$
|
1.41
|
|
$
|
1.26
|
|
$
|
1.15
|
|
$
|
0.95
|
|
$
|
0.73
|
|
|||||||
Cash dividend paid per share
|
$
|
0.40
|
|
$
|
0.35
|
|
$
|
0.35
|
|
$
|
0.25
|
|
$
|
0.15
|
|
|||||||||||||
Common shareholders equity
|
$
|
11.07
|
|
$
|
9.83
|
|
$
|
10.06
|
|
$
|
8.72
|
|
$
|
7.25
|
|
$
|
7.29
|
|
$
|
7.04
|
|
|||||||
Balance Sheet Data (end of period):
|
||||||||||||||||||||||||||||
Total assets
|
$
|
140,686
|
|
$
|
126,308
|
|
$
|
128,904
|
|
$
|
116,515
|
|
$
|
113,923
|
|
$
|
104,157
|
|
$
|
89,667
|
|
|||||||
Net loans, gross
|
|
76,343
|
|
|
72,038
|
|
|
72,562
|
|
|
69,914
|
|
|
63,769
|
|
|
55,821
|
|
|
48,276
|
|
|||||||
Total deposits
|
|
26,845
|
|
|
113,799
|
|
|
116,169
|
|
|
105,396
|
|
|
104,779
|
|
|
95,884
|
|
|
82,425
|
|
|||||||
Total shareholders equity
|
$
|
13,553
|
|
$
|
12,023
|
|
$
|
12,318
|
|
$
|
10,498
|
|
$
|
8,659
|
|
$
|
7,903
|
|
$
|
6,862
|
|
|||||||
Selected Financial Ratios:
|
||||||||||||||||||||||||||||
Return on average assets
|
|
1.5
|
%
|
|
1.4
|
%
|
|
1.5
|
%
|
|
1.4
|
%
|
|
1.3
|
%
|
|
1.3
|
%
|
|
1.1
|
%
|
|||||||
Return on average common shareholders equity
|
|
15.9
|
%
|
|
14.9
|
%
|
|
15.7
|
%
|
|
16.5
|
%
|
|
17.4
|
%
|
|
16.1
|
%
|
|
14.4
|
%
|
|||||||
Total risk-based capital ratio
|
|
15.5
|
%
|
|
15.5
|
%
|
|
16.2
|
%
|
|
15.3
|
%
|
|
13.4
|
%
|
|
11.7
|
%
|
|
12.7
|
%
|
|||||||
Tier 1 capital ratio
|
|
14.5
|
%
|
|
14.4
|
%
|
|
15.0
|
%
|
|
14.3
|
%
|
|
12.2
|
%
|
|
10.5
|
%
|
|
11.4
|
%
|
|||||||
Leverage ratio
|
|
9.2
|
%
|
|
9.3
|
%
|
|
9.5
|
%
|
|
9.2
|
%
|
|
8.4
|
%
|
|
8.0
|
%
|
|
7.8
|
%
|
|||||||
Net interest margin
|
|
4.45
|
%
|
|
4.50
|
%
|
|
4.55
|
%
|
|
4.54
|
%
|
|
4.61
|
%
|
|
4.73
|
%
|
|
4.96
|
%
|
|||||||
Allowance for loan losses to total loans outstanding at end of period
|
|
1.21
|
%
|
|
1.25
|
%
|
|
1.34
|
%
|
|
1.16
|
%
|
|
1.50
|
%
|
|
1.50
|
%
|
|
1.70
|
%
|
(1)
|
|
Retroactively adjusted to reflect 10% stock dividends paid in 1999, 1998 and 1997.
|
At September 30, 2002
|
||||||||||||||||
TriCo
|
North State
|
Pro Forma Adjustments
|
Total
|
|||||||||||||
(dollars in thousands; unaudited)
|
||||||||||||||||
Assets
|
||||||||||||||||
Cash and due from banks
|
$
|
56,749
|
|
$
|
6,309
|
|
$
|
(5,000
|
)
1
|
$
|
58,058
|
|
||||
Federal funds sold
|
|
23,400
|
|
|
3,424
|
|
|
(8,000
|
)
1
|
|
18,824
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
|
80,149
|
|
|
9,733
|
|
|
(13,000
|
)
1
|
|
76,882
|
|
||||
Investment securities
|
|
268,921
|
|
|
51,577
|
|
|
484
|
|
|
320,546
|
|
||||
Loans
|
|
683,554
|
|
|
77,275
|
|
|
|
|
|
760,829
|
|
||||
Allowance for loan losses
|
|
(14,382
|
)
|
|
(932
|
)
|
|
|
|
|
(15,314
|
)
|
||||
Premises and equipment, net
|
|
16,583
|
|
|
1,431
|
|
|
|
|
|
18,014
|
|
||||
Cash value of life insurance
|
|
15,045
|
|
|
|
|
|
|
|
|
15,045
|
|
||||
Accrued interest receivable
|
|
5,552
|
|
|
848
|
|
|
|
|
|
6,400
|
|
||||
Core deposit intangible
|
|
4,387
|
|
|
|
|
|
5,074
5
|
|
|
9,461
|
|
||||
Goodwill
|
|
|
|
|
|
|
|
15,798
7
|
|
|
15,798
|
|
||||
Other assets
|
|
13,714
|
|
|
754
|
|
|
(2,030
|
)
6
|
|
12,438
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total assets
|
$
|
1,073,523
|
|
$
|
140,686
|
|
$
|
5,890
|
|
$
|
1,220,099
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities
|
||||||||||||||||
Deposits:
|
||||||||||||||||
Noninterest-bearing demand
|
|
202,895
|
|
|
21,858
|
|
|
|
|
|
224,753
|
|
||||
Interest-bearing demand
|
|
175,883
|
|
|
17,613
|
|
|
|
|
|
193,496
|
|
||||
Savings
|
|
268,182
|
|
|
52,489
|
|
|
|
|
|
320,671
|
|
||||
Time certificates
|
|
290,935
|
|
|
34,885
|
|
|
|
|
|
325,820
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total deposits
|
|
937,895
|
|
|
126,845
|
|
|
|
|
|
1,064,740
|
|
||||
Accrued interest payable and
|
||||||||||||||||
other liabilities
|
|
16,275
|
|
|
288
|
|
|
690
2
|
|
|
17,253
|
|
||||
Long-term debt and other borrowings
|
|
22,932
|
|
|
|
|
|
|
|
|
22,932
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total liabilities
|
$
|
977,102
|
|
$
|
127,133
|
|
$
|
690
|
|
$
|
1,104,925
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Shareholders equity
|
||||||||||||||||
Common stock
|
|
50,188
|
|
|
3,061
|
|
|
15,692
|
|
|
68,941
|
|
||||
Additional paid-in capital
|
|
|
|
|
4,233
|
|
|
(4,233
|
)
|
|
0
|
|
||||
Retained earnings
|
|
43,900
|
|
|
5,882
|
|
|
(5,882
|
)
|
|
43,900
|
|
||||
Accumulated other comprehensive income
|
|
2,333
|
|
|
377
|
|
|
(377
|
)
|
|
2,333
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total shareholders equity
|
|
96,421
|
|
|
13,553
|
|
|
5,200
3
|
|
|
115,174
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total liabilities and shareholders equity
|
$
|
1,073,523
|
|
$
|
140,686
|
|
$
|
5,890
|
|
$
|
1,220,099
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Tier 1 capital
|
$
|
88,697
|
|
$
|
13,176
|
|
$
|
(13,642
|
)
8
|
$
|
88,231
|
|
||||
Tier 2 capital
|
|
10,476
|
|
|
932
|
|
|
|
|
|
11,408
|
|
||||
Total capital
|
|
99,173
|
|
|
14,108
|
|
|
(13,642
|
)
8
|
|
99,639
|
|
||||
Risk weighted assets
|
|
838,043
|
|
|
90,869
|
|
|
|
|
|
928,912
|
|
||||
Average assets
|
$
|
1,040,126
|
|
$
|
140,686
|
|
$
|
(13,000
|
)
|
$
|
1,167,812
|
|
||||
Tier 1 risk-based capital ratio
|
|
10.6%
|
|
|
14.5%
|
|
|
9.5%
|
|
|||||||
Total risk-based capital ratio
|
|
11.8%
|
|
|
15.5%
|
|
|
10.7%
|
|
|||||||
Leverage ratio
|
|
8.5%
|
|
|
9.2%
|
|
|
7.6%
|
|
(1)
|
|
This adjustment represents the $13,000,000 cash portion of the merger consideration.
|
(2)
|
|
This adjustment represents the estimated nonrecurring costs to be recognized prior to the transaction which had not been paid or accrued as of September
30,2002, net of the appropriate tax benefits at an assumed marginal tax rate of 40%. The estimated total pretax amounts of these expenses are as follows:
|
Additional employee benefits
|
$
|
400,000
|
|
Discontinued operations
|
|
150,000
|
|
Direct costs of transaction
|
|
600,000
|
|
|
|
||
Total
|
$
|
1,150,000
|
|
|
|
(3)
|
|
This adjustment represents the net effect of the issuance of TriCo stock and options for TriCo stock as part of the merger consideration and the elimination of
North States shareholders equity as of September 30, 2002 in accordance with the purchase method of accounting for the transaction.
|
Total value of TriCo stock and option consideration given
|
$
|
18,753,280
|
|
|
Total value of North State shareholders equity on September 30, 2002
|
|
(13,553,000
|
)
|
|
|
|
|
||
Net adjustment to pro forma shareholders equity
|
$
|
5,200,280
|
|
|
|
|
|
(4)
|
|
This adjustment represents the market valuation of North States investments as of September 30, 2002.
|
(5)
|
|
This adjustment represents the identified core-deposit intangible asset. The core-deposit intangible asset is estimated to be in the range of 3%-5% of North
States total deposits. For purposes of this pro forma presentation, the estimate is based on 4% of North States total deposits.
|
(6)
|
|
This adjustment represents the deferred tax credit related to the core-deposit intangible. Assuming a marginal tax rate of 40%, this adjustment is 40% of the
identified core-deposit intangible adjustment.
|
(7)
|
|
This adjustment represents the unidentified intangible asset (goodwill) created in accordance with the purchase method of accounting for the transaction. The
amount is calculated as follows:
|
Cash consideration
|
$
|
13,000,000
|
|
|
Stock and option consideration
|
|
18,753,280
|
|
|
|
|
|
||
Total consideration
|
$
|
31,753,280
|
|
|
Less: North States shareholders equity
|
|
(13,553,000
|
)
|
|
Less: Core-deposit intangible
|
|
(5,073,800
|
)
|
|
Add: Deferred tax credit related to core-deposit intangible
|
|
2,029,520
|
|
|
Add: Nonrecurring costs net of tax
|
|
690,000
|
|
|
Less: Investment market valuation adjustment
|
|
(48,000
|
)
|
|
|
|
|
||
Total goodwill
|
$
|
15,798,000
|
|
|
|
|
|
(8)
|
|
This adjustment to Tier 1 capital and total capital represents the addition to pro forma shareholders equity (as described in footnote 3 above) less the
sum of the intangible items described in footnotes 5, 6 and 7 above.
|
Nine Months Ended September 30, 2002
|
|||||||||||||
TriCo
|
North State
|
Adjust
|
Total
|
||||||||||
(dollars in thousands, except share and per share amounts; unaudited)
|
|||||||||||||
Interest income:
|
|||||||||||||
Interest and fees on loans
|
$
|
39,387
|
$
|
4,174
|
$
|
43,561
|
|||||||
Interest on federal funds sold
|
|
476
|
|
115
|
$
|
(75
|
)
1
|
|
519
|
||||
Interest on investment securities
|
|
8,605
|
|
1,630
|
|
10,235
|
|||||||
|
|
|
|
|
|
|
|
|
|||||
Total interest income
|
|
48,468
|
|
5,919
|
|
(75
|
)
|
|
54,312
|
||||
Interest expense:
|
|||||||||||||
Interest on deposits
|
|
8,701
|
|
1,550
|
|
10,251
|
|||||||
Interest on short-term borrowing
|
|
1
|
|
|
|
1
|
|||||||
Interest on long-term debt
|
|
967
|
|
|
|
967
|
|||||||
|
|
|
|
|
|
|
|
|
|||||
Total interest expense
|
|
9,669
|
|
1,550
|
|
11,219
|
|||||||
|
|
|
|
|
|
|
|
|
|||||
Net interest income
|
|
38,799
|
|
4,369
|
|
(75
|
)
|
|
43,093
|
||||
|
|
|
|
|
|
|
|
|
|||||
Provision for loan losses
|
|
2,000
|
|
|
|
2,000
|
|||||||
|
|
|
|
|
|
|
|
|
|||||
Net interest income after provision for loan losses
|
|
36,799
|
|
4,369
|
|
(75
|
)
|
|
41,093
|
||||
|
|
|
|
|
|
|
|
|
|||||
Noninterest income:
|
|||||||||||||
Service charges and fees
|
|
7,635
|
|
234
|
|
7,869
|
|||||||
Gain on sale of investments
|
|
|
|
55
|
|
55
|
|||||||
Gain on sale of loans
|
|
2,254
|
|
|
|
2,254
|
|||||||
Commissions on sale of NDIP
|
|
1,989
|
|
|
|
1,989
|
|||||||
Other
|
|
1,304
|
|
132
|
|
1,436
|
|||||||
|
|
|
|
|
|
|
|
|
|||||
Total noninterest income
|
|
13,182
|
|
421
|
|
13,603
|
|||||||
Noninterest expense:
|
|||||||||||||
Salaries and related benefits
|
|
17,856
|
|
1,160
|
|
19,016
|
|||||||
Intangible amortization
|
|
683
|
|
|
|
571
2
|
|
|
1,254
|
||||
Other
|
|
14,959
|
|
984
|
|
15,943
|
|||||||
|
|
|
|
|
|
|
|
|
|||||
Total noninterest expense
|
|
33,498
|
|
2,144
|
|
571
|
|
|
36,213
|
||||
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes
|
|
16,483
|
|
2,646
|
|
(646
|
)
|
|
18,483
|
||||
Provision for income taxes
|
|
6,163
|
|
1,106
|
|
(258
|
)
|
|
7,011
|
||||
|
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
10,320
|
$
|
1,540
|
$
|
(388
|
)
|
$
|
11,472
|
||||
|
|
|
|
|
|
|
|
|
|||||
Shares outstanding end of period
|
|
7,035,590
|
|
1,224,460
|
|
(508,460
|
)
3
|
|
7,751,590
|
||||
Average shares outstanding
|
|
7,010,000
|
|
1,224,000
|
|
(508,000
|
)
3
|
|
7,726,000
|
||||
Diluted shares outstanding
|
|
7,188,000
|
|
1,283,000
|
|
(499,000
|
)
3
|
|
7,972,000
|
||||
Per share data
|
|||||||||||||
Basic earnings
|
$
|
1.47
|
$
|
1.26
|
$
|
1.48
|
|||||||
Diluted earnings
|
$
|
1.44
|
$
|
1.20
|
$
|
1.44
|
(1)
|
|
This adjustment reflects reduction in interest income from $8 million of federal funds sold which is expected to be used as part of the $13,000,000 cash portion
of the aggregate merger consideration paid to North State shareholders.
|
(2)
|
|
This adjustment reflects annual core-deposit amortization based on $5,074,000 of core-deposit intangible being created in the merger (amortized on an
accelerated basis over 10 years).
|
(3)
|
|
This adjustment represents replacement of North States outstanding common stock and options to purchase common stock with TriCo common stock and options
to purchase common stock resulting in an increase of approximately 716,000 shares of TriCo stock outstanding and fully diluted shares of approximately 784,000.
|
Year Ended December 31, 2001
|
|||||||||||||
TriCo
|
North State
|
Adjust
|
Total
|
||||||||||
(dollars in thousands, except share and per share amounts; unaudited)
|
|||||||||||||
Interest income:
|
|||||||||||||
Interest and fees on loans
|
$
|
58,730
|
$
|
6,114
|
$
|
64,844
|
|||||||
Interest on federal funds sold
|
|
1,506
|
|
227
|
$
|
(100
|
)
1
|
|
1,633
|
||||
Interest on investment securities
|
|
11,762
|
|
2,210
|
|
13,972
|
|||||||
|
|
|
|
|
|
||||||||
Total interest income
|
|
71,998
|
|
8,551
|
|
80,449
|
|||||||
Interest expense:
|
|||||||||||||
Interest on deposits
|
|
21,507
|
|
3,248
|
|
24,755
|
|||||||
Interest on short-term borrowing
|
|
7
|
|
|
|
7
|
|||||||
Interest on long-term debt
|
|
1,972
|
|
|
|
1,972
|
|||||||
|
|
|
|
|
|
||||||||
Total interest expense
|
|
23,486
|
|
3,248
|
|
26,734
|
|||||||
|
|
|
|
|
|
||||||||
Net interest income
|
|
48,512
|
|
5,303
|
|
(100
|
)
|
|
53,715
|
||||
|
|
|
|
|
|
|
|
|
|||||
Provision for loan losses
|
|
4,400
|
|
169
|
|
4,569
|
|||||||
|
|
|
|
|
|
||||||||
Net interest income after provision for loan losses
|
|
44,112
|
|
5,134
|
|
(100
|
)
|
|
49,146
|
||||
|
|
|
|
|
|
|
|
|
|||||
Noninterest income:
|
|||||||||||||
Service charges and fees
|
|
8,095
|
|
335
|
|
8,430
|
|||||||
Gain on sale of investments
|
|
1,756
|
|
141
|
|
1,897
|
|||||||
Gain on sale of loans
|
|
2,095
|
|
|
|
2,095
|
|||||||
Commissions on sale of NDIP
|
|
2,576
|
|
|
|
2,576
|
|||||||
Other
|
|
1,716
|
|
149
|
|
1,865
|
|||||||
|
|
|
|
|
|
||||||||
Total noninterest income
|
|
16,238
|
|
625
|
|
16,863
|
|||||||
Noninterest expense:
|
|||||||||||||
Salaries and related benefits
|
|
21,199
|
|
1,492
|
|
22,691
|
|||||||
Intangible amortization
|
|
911
|
|
|
|
761
2
|
|
|
1,672
|
||||
Other
|
|
18,497
|
|
1,252
|
|
19,749
|
|||||||
|
|
|
|
|
|
||||||||
Total noninterest expense
|
|
40,607
|
|
2,744
|
|
761
|
|
|
44,112
|
||||
|
|
|
|
|
|
|
|
|
|||||
Income before income taxes
|
|
19,743
|
|
3,015
|
|
(861
|
)
|
|
21,897
|
||||
Provision for income taxes
|
|
7,324
|
|
1,226
|
|
(344
|
)
|
|
8,206
|
||||
|
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
12,419
|
$
|
1,789
|
$
|
(517
|
)
|
$
|
13,691
|
||||
|
|
|
|
|
|
|
|
|
|||||
Shares outstanding end of period
|
|
7,000,980
|
|
1,224,190
|
|
(508,190
|
)
3
|
|
7,716,980
|
||||
Average shares outstanding
|
|
7,072,588
|
|
1,216,493
|
|
(500,493
|
)
3
|
|
7,788,588
|
||||
Diluted shares outstanding
|
|
7,219,229
|
|
1,267,399
|
|
(483,399
|
)
3
|
|
8,003,229
|
||||
Per share data
|
|||||||||||||
Basic earnings
|
$
|
1.76
|
$
|
1.47
|
$
|
1.77
|
|||||||
Diluted earnings
|
$
|
1.72
|
$
|
1.41
|
$
|
1.72
|
(1)
|
|
This adjustment reflects reduction in interest income from $8 million of federal funds sold which is expected to be used as part of the $13,000,000 cash portion
of the aggregate merger consideration paid to North State shareholders.
|
(2)
|
|
This adjustment reflects core-deposit amortization based on $5,074,000 of core-deposit intangible being created in the merger (amortized on an accelerated basis
over 10 years).
|
(3)
|
|
This adjustment represents replacement of North States outstanding common stock and options to purchase common stock with TriCo common stock and options
to purchase common stock resulting in an increase of approximately 716,000 shares of TriCo stock outstanding and fully diluted shares of approximately 784,000.
|
|
|
actual cost savings resulting from the merger are less than we expected, we are unable to realize those cost savings as soon as we expected or we incur
additional or unexpected costs;
|
|
|
revenues after the merger are less than we expected;
|
|
|
competition among financial services companies increases;
|
|
|
we have more trouble integrating our businesses than we expected;
|
|
|
changes in the interest rate environment reduces our interest margins;
|
|
|
general economic conditions change or are worse than we expected;
|
|
|
legislative or regulatory changes adversely affect our business;
|
|
|
changes occur in business conditions and inflation;
|
|
|
personal or commercial customers bankruptcies increase;
|
|
|
changes occur in the securities markets; and
|
|
|
technology-related changes are more difficult to make or more expensive than we expected.
|
|
|
inflation;
|
|
|
deflation;
|
|
|
recession;
|
|
|
increased unemployment;
|
|
|
tightening money supply; and
|
|
|
international disorder and instability in domestic and foreign financial markets.
|
|
|
giving written notice of revocation to the secretary of North State;
|
|
|
properly submitting a properly executed proxy bearing a later date; or
|
|
|
voting in person at the North State meeting.
|
|
|
the boards determination that the market for TriCo stock, although not sufficiently active to assure full liquidity, provides relatively greater liquidity
to holders of TriCo stock than is currently available to them as holders of North State stock;
|
|
|
the economic conditions and prospects for the market in which North State operates, and competitive pressures in the financial services industry in general and
the banking industry in particular, including competition for experienced lending and other banking officers;
|
|
|
the enhancement of TriCos competitiveness and its ability to serve its customers, depositors, creditors, other constituents and the communities in which
it operates as a result of North States combination with an institution with greater resources;
|
|
|
information concerning the business, results of operations, asset quality and financial condition of North State and TriCo on a stand-alone and combined basis,
and the future growth prospects of TriCo following the merger;
|
|
|
an assessment that, in the current economic environment, expansion through acquisition by another financial institution would be most economically advantageous
to North States shareholders when compared to other alternatives such as internally generated growth, de novo branch openings or branch acquisitions;
|
|
|
the terms and conditions of the acquisition agreement and related agreements, including the election of cash, stock or a combination of cash and stock in the
merger consideration;
|
|
|
the beneficial effects on North States customers;
|
|
|
an analysis by RBC Capital Markets of the financial condition, results of operations, business, prospects and stock price of North State and comparison of North
State to other banks and bank holding companies operating in its industry, and the terms of other acquisitions in the banking industry;
|
|
|
the opinion of RBC Capital Markets to the effect that, as of the date of the opinion, the consideration received in the merger is fair, from a financial point
of view, to the holders of North State stock; and
|
|
|
the expectation that the acquisition will constitute a tax-free reorganization for federal income tax purposes, so that North State shareholders will not
recognize any gain or loss to the extent they receive shares of TriCo stock in the merger.
|
|
|
the current volatility of the stock market and its potential effect on the stock component of the merger consideration;
|
|
|
the disadvantages of being part of a larger entity, including the potential for decreased customer service; and
|
|
|
the risk that integration of North State and TriCo will divert Tri Counties Banks management from other activities.
|
|
|
reviewed a draft acquisition agreement dated September 25, 2002;
|
|
|
reviewed certain historical financial and other information concerning North State for the three fiscal years ended December 31, 2001 and for the six months
ended June 30, 2002;
|
|
|
reviewed certain historical financial and other information concerning TriCo for the three fiscal years ended December 31, 2001 and for the quarter ended June
30, 2002;
|
|
|
held discussions with the senior management of North State and of TriCo with respect to their past and current financial performance, financial condition and
future prospects;
|
|
|
reviewed certain internal financial data, projections and other information of North State, including financial projections approved by North States
management;
|
|
|
analyzed certain publicly available information of other financial institutions that RBC Capital Markets deemed comparable or otherwise relevant to its inquiry,
and compared North State from a financial point of view with certain of these institutions;
|
|
|
compared the consideration to be paid to North State pursuant to the acquisition agreement with the consideration paid in other acquisitions of financial
institutions that RBC Capital Markets deemed comparable or otherwise relevant to its inquiry;
|
|
|
reviewed available earnings estimates, historical trading activity and ownership data of North States and TriCos common stock and considered the
prospects for dividends and price movement; and
|
|
|
considered such other financial studies, analyses and investigations and reviewed such other information as RBC Capital Markets deemed appropriate to enable RBC
Capital Markets to render its opinion.
|
|
|
the executed version of the acquisition agreement did not differ in any material respect from the last draft it reviewed, and the terms of the consideration to
be paid to the shareholders of North State under the acquisition agreement will be identical to those set forth in the last draft that it reviewed;
|
|
|
the merger will be consummated in accordance with the terms set forth in the acquisition agreement; and
|
|
|
the merger will be treated as a tax-free reorganization for federal income tax purposes with respect to the TriCo common stock delivered as consideration in the
merger.
|
Merger consideration as a multiple, percentage of, or premium
to North
States:
|
9/30 2002
|
Based upon the Agreement
|
|||||||
Max.
|
Min.
|
||||||||
Multiple of Last twelve months earnings
|
16.9
|
x
|
18.1
|
x
|
14.7
|
x
|
|||
Multiple of Tangible Book Value
|
2.5
|
x
|
2.8
|
x
|
2.3
|
x
|
|||
Premium to North States Closing Stock Price on September 30, 2002
|
12.7
|
%
|
25.1
|
%
|
1.3
|
%
|
|||
Premium to Core Deposits
|
21.3
|
%
|
25.2
|
%
|
17.7
|
%
|
North State
|
Peer Group
Median
|
|||||
Return on assets
|
1.53
|
%
|
1.15
|
%
|
||
Return on equity
|
16.39
|
%
|
13.69
|
%
|
||
Net interest margin
|
4.59
|
%
|
5.39
|
%
|
||
Efficiency ratio
|
44.87
|
%
|
66.17
|
%
|
||
Leverage Ratio
|
9.49
|
%
|
9.09
|
%
|
||
Non-performing assets/Assets
|
0.00
|
%
|
0.28
|
%
|
||
Stock price/LTM earnings
|
14.24
|
x
|
14.25
|
x
|
||
Market value/Tangible book value
|
211.1
|
%
|
174.9
|
%
|
||
Dividend yield most recent quarter
|
1.78
|
%
|
0.14
|
%
|
TriCo
|
Peer Group
Median
|
|||||
Return on assets
|
1.33
|
%
|
1.48
|
%
|
||
Return on equity
|
14.84
|
%
|
16.65
|
%
|
||
Net interest margin
|
5.66
|
%
|
4.56
|
%
|
||
Efficiency ratio
|
61.54
|
%
|
52.74
|
%
|
||
Leverage Ratio
|
8.48
|
%
|
8.75
|
%
|
||
Non-performing assets/Assets
|
0.68
|
%
|
0.44
|
%
|
||
Stock price/LTM earnings
|
13.6
|
x
|
14.5
|
x
|
||
Market value/Tangible book value
|
201.0
|
%
|
257.6
|
%
|
||
Dividend yield most recent quarter
|
3.16
|
%
|
2.6
|
%
|
Acquiror
|
Acquiree
|
|
First Community Bancorp
|
Marathon Bancorp
|
|
UnionBanCal Corp.
|
First Western Bank
|
|
First Community Bancorp
|
W.H.E.C. Inc.
|
|
First Community Bancorp
|
Pacific Western National Bank
|
|
Umpqua Holdings Corp.
|
Linn-Benton Bank
|
|
National Mercantile Bancorp
|
South Bay Bank, NA
|
|
Bank of East Asia, Ltd.
|
Grand National Bank
|
|
Colorado Business Bankshares
|
First Capital Bank of Arizona
|
|
Humboldt Bancorp
|
Tehama Bancorp
|
|
First Banks Inc.
|
Millennium Bank
|
|
First Interstate BancSystem
|
Equality Bankshares Inc.
|
|
Heritage Commerce Corp.
|
Western Holdings Bancorp
|
|
Pacific Capital Bancorp
|
Los Robles Bancorp
|
|
Greater Bay Bancorp
|
Bank of Petaluma
|
|
Frontier Financial Corp.
|
Liberty Bay Financial Corp.
|
TriCo / North State
As of
9/30/02
|
Per Agreement
|
Comparable Companies
|
||||||||||||||||
Max.
|
Min.
|
Median
|
High
|
Low
|
||||||||||||||
Price / LTM earnings
|
16.9
|
x
|
18.1
|
x
|
15.1
|
x
|
16.3
|
x
|
24.1
|
x
|
11.2
|
x
|
||||||
Price / Tangible book value
|
2.5
|
x
|
2.8
|
x
|
2.3
|
x
|
2.2
|
x
|
3.2
|
x
|
1.6
|
x
|
||||||
Premium to core deposits
|
21.3
|
%
|
25.2
|
%
|
18.6
|
%
|
15.3
|
%
|
26.7
|
%
|
10.1
|
%
|
||||||
Premium to market value
|
||||||||||||||||||
One day prior to announcement
1
|
13.1
|
%
|
25.3
|
%
|
4.6
|
%
|
13.5
|
%
|
20.7
|
%
|
3.9
|
%
|
||||||
Two weeks prior to announcement
|
18.1
|
%
|
30.8
|
%
|
9.2
|
%
|
16.1
|
%
|
40.9
|
%
|
2.1
|
%
|
||||||
One month prior to announcement
|
24.1
|
%
|
37.5
|
%
|
14.8
|
%
|
15.6
|
%
|
149.2
|
%
|
0.8
|
%
|
Contribution
|
TCBK
|
NSTN
|
||||
Loans
|
93.5
|
%
|
6.5
|
%
|
||
Deposits
|
88.1
|
%
|
11.9
|
%
|
||
Assets
|
88.0
|
%
|
12.0
|
%
|
||
Equity
|
87.3
|
%
|
12.7
|
%
|
||
Net income2002
|
87.2
|
%
|
12.8
|
%
|
||
Net income2003
|
87.5
|
%
|
12.5
|
%
|
||
Pro forma ownership (1)
|
90.0
|
%
|
10.0
|
%
|
(1)
|
|
If the cash component of the transaction were converted into stock at the estimated transaction value of $25.39 at September 30, 2002, North States pro
forma ownership would be 15.76%, rather than 10.0% of the combined company. If the cash component were converted into stock at the maximum and minimum transaction values as defined in the Agreement, North States pro forma ownership would be
14.83% and 16.40% respectively. If the cash component were converted to stock and TriCos stock price declined to $20.80, the price below which North State could terminate the transaction, North States pro forma ownership of the combined
companies would be 17.24%. The aggregate consideration to be received by North State holders in cash and pro forma ownership compares favorably to North States contribution of loans, deposits, assets, equity and incomes to the pro forma
combined company as a result of the proposed merger. The actual operating and financial results achieved by the pro forma combined company may vary from projected results and variations may be material as a result of business and operational risks,
the timing, amount and costs associated with achieving cost savings and revenue enhancements, as well as other factors.
|
(i)
|
|
The cash component will be $13,000,000 plus the amount of cash North State optionholders pay to exercise options between October 3, 2002 and the closing date of
the merger. The maximum additional amount is approximately $585,000.
|
(ii)
|
|
The stock component will be 784,000 shares of TriCo common stock, unless the average closing price is greater than $29.90 or less than $22.10. If the average
closing price is greater than $29.90, the number of shares will be reduced so that if the product of the average closing price and the number of shares equals $23,441,600 (784,000 times $29.90). If the average closing price is less than $22.10, the
number of shares will be increased so that the product of the average closing price and the number of shares equal $17,326,400 (784,000 times $22.10). The sum of the cash component and the value of the stock component (using the average closing
price as the value of one share of TriCo common stock) is the aggregate merger consideration.
|
(iii)
|
|
Each outstanding share of North State common stock will be converted into the right to receive cash, TriCo stock or a combination of cash and TriCo stock with a
value equal to the aggregate merger consideration divided by the number of outstanding shares of North State common stock plus the number of shares issuable upon exercise of all outstanding North State options, again using the average closing price
as the value of one share of TriCo common stock. The minimum per share consideration is approximately $23.52 and the maximum is approximately $28.17.
|
|
|
the number of shares of TriCo stock that TriCo will issue;
|
|
|
the value of the aggregate stock consideration to be issued;
|
|
|
the aggregate amount of cash to be paid by TriCo;
|
|
|
the total value of the aggregate merger consideration;
|
|
|
the value of the per share merger consideration; and
|
|
|
the exchange ratio.
|
Average
closing
price
|
Number of
TriCo shares |
Value of
aggregate stock consideration |
Value of
aggregate cash consideration1 |
Total aggregate merger consideration |
Per share
merger consideration |
Exchange
ratio 1 |
||||||
$15.00
|
1,155,093
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.5679
|
||||||
$16.00
|
1,082,900
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.4699
|
||||||
$17.00
|
1,019,200
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.3835
|
||||||
$18.00
|
962,578
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.3066
|
||||||
$19.00
|
911,916
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.2378
|
||||||
$20.80
|
833,000
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.1307
|
||||||
$21.00
|
825,067
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.1200
|
||||||
$22.00
|
787,564
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.0690
|
||||||
$22.10
|
784,000
|
$17,326,400
|
$13,584,856
|
$30,911,256
|
$23.52
|
1.0642
|
||||||
$22.80
|
784,000
|
$17,875,200
|
$13,584,856
|
$31,460,056
|
$23.94
|
1.0498
|
||||||
$23.92
|
784,000
|
$18,753,280
|
$13,584,856
|
$32,338,136
|
$24.60
|
1.0286
|
||||||
$25.00
|
784,000
|
$19,600,000
|
$13,584,856
|
$33,184,856
|
$25.25
|
1.0100
|
||||||
$26.00
|
784,000
|
$20,384,000
|
$13,584,856
|
$33,968,856
|
$25.85
|
0.9941
|
||||||
$27.00
|
784,000
|
$21,168,000
|
$13,584,856
|
$34,752,856
|
$26.44
|
0.9793
|
||||||
$28.00
|
784,000
|
$21,952,000
|
$13,584,856
|
$35,536,856
|
$27.04
|
0.9657
|
||||||
$29.00
|
784,000
|
$22,736,000
|
$13,584,856
|
$36,320,856
|
$27.63
|
0.9529
|
$29.90
|
784,000
|
$23,441,600
|
$13,584,856
|
$37,026,456
|
$28.17
|
0.9422
|
||||||
$30.00
|
781,387
|
$23,441,600
|
$13,584,856
|
$37,026,456
|
$28.17
|
0.9391
|
||||||
$31.00
|
756,181
|
$23,441,600
|
$13,584,856
|
$37,026,456
|
$28.17
|
0.9088
|
||||||
$32.00
|
732,550
|
$23,441,600
|
$13,584,856
|
$37,026,456
|
$28.17
|
0.8804
|
||||||
$33.00
|
710,352
|
$23,441,600
|
$13,584,856
|
$37,026,456
|
$28.17
|
0.8537
|
||||||
$34.00
|
689,459
|
$23,441,600
|
$13,584,856
|
$37,026,456
|
$28.17
|
0.8286
|
||||||
$35.00
|
669,760
|
$23,441,600
|
$13,584,856
|
$37,026,456
|
$28.17
|
0.8049
|
(1)
|
|
Assumes conversion of North State stock solely into TriCo stock.
|
|
|
North State will provide TriCo and Tri Counties Bank access to North States records and other internal information;
|
|
|
the parties will not disclose certain confidential information;
|
|
|
North State, TriCo and Tri Counties Bank will not solicit or encourage any discussions or proposals for entering into any agreement providing for a transfer of
their respective business;
|
|
|
North State will provide information to TriCo for any required regulatory applications and for the registration statement;
|
|
|
North State will allow TriCo to send one representative to attend all meetings at the North State Board of Directors;
|
|
|
TriCo will file all required regulatory applications and the registration statement; and
|
|
|
North State take all reasonable action necessary to convene the meeting.
|
|
|
conduct its business other than in the ordinary course;
|
|
|
amend its charter and bylaws;
|
|
|
change its capitalization;
|
|
|
enter into contracts that extend for more than one year or that involve payment by North State of more than $10,000;
|
|
|
make loans of more than $250,000 without providing TriCo and Tri Counties Bank the opportunity to review and comment on these loans;
|
|
|
enter into new arrangements with employees or increase salaries or benefits, except for customary bonuses in December 2002; or
|
|
|
pay any dividend or distribution.
|
|
|
compliance with respective covenants;
|
|
|
receipt of customary closing certificates and opinions;
|
|
|
the absence of any litigation or regulatory proceeding presenting significant risk of material damages against North State, Tri Counties Bank, TriCo or their
shareholders, or a significant risk that the merger will not be consummated;
|
|
|
there being no material adverse change in the respective businesses of TriCo and North State between the date of the acquisition agreement and the closing date;
|
|
|
the affirmative vote of the holders of two-thirds of the shares of North State stock approving the merger;
|
|
|
no more than 9.9% of the outstanding shares of North State voting against approval of, or giving written notice of intent to dissent from, the merger;
|
|
|
receipt of the final approval of the merger by the California Department of Financial Institutions and the FDIC;
|
|
|
registration pursuant to the Securities Act of the TriCo stock which is to be issued under the acquisition agreement;
|
|
|
receipt by North State and TriCo of a tax opinion;
|
|
|
receipt by North State of a fairness opinion which shall not have been withdrawn before the closing.
|
|
|
by mutual written consent of the parties authorized by their respective boards of directors;
|
|
|
by written notice from North State to TriCo or from TriCo to North State, if the closing date has not occurred on or before June 30, 2003;
|
|
|
by written notice from TriCo to North State or from North State to TriCo, if the other party materially breaches any representation, warranty, covenant or other
agreement in the acquisition agreement, and the breach is not corrected within 30 days following notice given to the breaching party;
|
|
|
by TriCo if a pre-closing audit or review determines that the condition of North State has materially changed for the worse from the date of the acquisition
agreement; or
|
|
|
by North State if the average closing price of TriCo stock for the 20 trading days ending on the determination date is less than $20.80.
|
|
|
the merger will not result in any recognized gain or loss to North State, TriCo or Tri Counties Bank, and Tri Counties Bank will succeed to the basis and the
holding period of the assets of North State;
|
|
|
a North State shareholder who receives TriCo stock and cash will recognize gain, but not loss, equal to the lesser of (i) the gain realized, or (ii) the cash
consideration received. Gain recognized by a North State shareholder generally will constitute a capital gain or loss, but may constitute ordinary income if the North State shares were not held as a capital asset or if the North State shareholder
holds TriCo stock, directly or indirectly;
|
|
|
holders of North State stock who receive solely TriCo stock in exchange for their shares of North State stock in the merger will not recognize any gain or loss;
|
|
|
the holding period of TriCo stock issued in exchange for North State stock will include the holding period of the North State stock for which it is exchanged,
assuming that the shares of North State stock are capital assets in the hands of the holder at the effective date;
|
|
|
the basis of the TriCo stock received in the exchange will be the same as the basis of the North State stock for which it was exchanged, decreased by any cash
received in the merger and increased by the amount of gain recognized as a result of the merger; and
|
|
|
a North State shareholder who receives only cash in the merger or who perfects dissenters rights and receives payment for his shares will be treated as if
the shares were redeemed. In general, if the shares are held as a capital asset at the time of the merger, the shareholder will recognize a capital gain or loss measured by the difference between the amount of cash received and the basis of the
shares in the hands of the shareholder. However, if the shareholder owns, directly or indirectly through the application of Section 318 of the Internal Revenue Code, any shares of North State stock or TriCo stock the shareholder may be treated as
having received a dividend in the amount of cash paid to the shareholder in exchange for the shares. Under Section 318 of the Internal Revenue Code, an individual is deemed to own stock that is actually owned (or deemed to be owned) by certain
members of his or her family (spouse, children, grandchildren and parents, with certain exceptions) and other related parties, including, for example, certain entities in which the individual has a direct or indirect interest (including
partnerships, estates, trusts and corporations), as well as stock that such individual (or a related person) has the right to acquire upon exercise of an option or conversion right held by such individual (or a related person). Each shareholder who
intends to dissent from the merger or who intends to elect to receive only cash in the merger should consult his or her own tax advisor with respect to the application of the constructive ownership rules to the shareholders particular
circumstances. See Proposed MergerRights of Dissenting Shareholders on page 38.
|
Branch Name
|
Address
|
Square Ft.
|
Lease Expires
|
|||
Bakersfield
|
5201 California Ave., Suite 102 Bakersfield, CA 93309
|
3,200
|
Jan 31, 2005
|
|||
Beale AFB ISB
|
17601 25th St. Bldg. 25608 (Commissary) Beale AFB, CA 95903
|
572
|
Feb 23, 2004
|
|||
Bieber
|
Bridge & Market Streets Bieber, CA 96009
|
5,250
|
Owned
|
|||
Brentwood ISB
|
2400 Sand Creek Rd. (Raleys) Brentwood, CA 94513
|
480
|
April 27, 2007
|
|||
Burney
|
37093 Main St. Burney, CA 96013
|
3,500
|
Owned
|
|||
California Street
|
1845 California St. Redding, CA 96001
|
3,265
|
Owned
|
|||
Chico Mall
|
1950 E. 20th St., Suite G725 Chico, CA 95928
|
1,334
|
Aug 31, 2005
|
|||
Chowchilla
|
305 Trinity St. Chowchilla, CA 93610
|
6,000
|
Dec 31, 2009
|
|||
Cottonwood
|
3349 Main St. Cottonwood, CA 96022
|
4,900
|
Owned
|
|||
Covelo
|
76405 Covelo Rd. Covelo, CA 95428
|
3,000
|
Month-to-Month
|
|||
Crescent City
|
936 Third St. Crescent City, CA 95531
|
4,700
|
Owned
|
|||
Data Processing
|
1103 Fortress St. Chico, CA 95926
|
13,600
|
April 24, 2011
|
|||
Durham
|
9411 Midway Durham, CA 95938
|
2,150
|
Owned
|
|||
East Ave. ISB
|
146 W. East Ave. (Albertsons) Chico, CA 95973
|
475
|
Aug 22, 2005
|
|||
Fall River Mills
|
43308 Hwy. 299 East Fall River Mills, CA 96028
|
2,200
|
Owned
|
|||
Fin. Services Center
|
211 W. East Ave. (Raleys) Chico, CA 95973
|
84
|
Feb 10, 2004
|
|||
Grass Valley ISB
|
12054 Nevada City Hwy. (Albertsons) Grass Valley, CA 95949
|
450
|
Aug 22, 2005
|
|||
Gustine
|
319 Fifth St. Gustine, CA 95322
|
5,100
|
Owned
|
|||
Hartnell ISB
|
110 Hartnell Ave. (Raleys) Redding, CA 96002
|
482
|
May 29, 2004
|
|||
Headquarters Bldg.
|
63 Constitution Dr. Chico, CA 95973
|
30,000
|
Owned
|
|||
Herdon-Marks
|
7020 N. Marks Ave., Suite 101 Fresno, CA 93711
|
4,185
|
Mar 19, 2012
|
|||
Hilltop
|
1250 Hilltop Dr. Redding, CA 96049
|
6,252
|
Owned
|
|||
North Natomas ISB
|
4650 Natomas Blvd (Raleys) Sacramento, CA 95835
|
480
|
April 21, 2007
|
|||
Lake Blvd. ISB
|
201 Lake Blvd. (Raleys) Redding, CA 96003
|
482
|
May 29, 2004
|
|||
Marysville
|
729 E St. Marysville, CA 95901
|
1,600
|
Nov 30, 2002
|
|||
Middletown
|
21097 Calistoga Rd. Middletown, CA 95461
|
2,600
|
April 30, 2007
|
|||
Modesto
|
3320 Tully Rd., Suite 3 Modesto, CA 95350
|
3,850
|
Aug 31, 2004
|
|||
Mt. Shasta
|
204 Chestnut St. Mt. Shasta, CA 96067
|
6,500
|
Feb 28, 2007
|
|||
Orland
|
100 E. Walker St. Orland, CA 95963
|
3,300
|
Owned
|
|||
Oroville
|
1180 Oro Dam Blvd. Oroville, CA 95965
|
6,000
|
Feb 28, 2012
|
|||
Palo Cedro
|
9125 Deschutes Rd. Palo Cedro, CA 96073
|
3,400
|
Owned
|
|||
Paradise
|
6848 Q Skyway Paradise, CA 95963
|
6,600
|
May 31, 2010
|
|||
Park Plaza
|
780 Mangrove Ave. Chico, CA 95926
|
10,000
|
Dec 31, 2009
|
|||
Patterson
|
17 Plaza Patterson, CA 95363
|
4,000
|
Owned
|
|||
Pillsbury
|
2171 Pillsbury Rd. Chico, CA 95926
|
5,705
|
Owned
|
|||
Red Bluff ISB
|
727 Main St. (Raleys) Red Bluff, CA 96080
|
482
|
Feb 27, 2004
|
|||
Redding2
|
1810 Market St. Redding, CA 96001
|
14,000
|
Owned
|
|||
Susanville
|
1605 Main St. Susanville, CA 96130
|
7,200
|
March 31, 2002
|
|||
Sacramento
|
1760 Challenge Way, Suite 100 Sacramento, CA 95815
|
3,005
|
June 30, 2005
|
TriCo Offices
1
|
15 Independence Circle
|
7,000
|
April 24, 2011
|
|||
Visalia
|
2914 W. Main St. Visalia, CA 93291
|
2,400
|
April 30, 2002
|
|||
Weed
|
303 Main St. Weed, CA 96094
|
6,200
|
Owned
|
|||
Willows
|
210 N. Tehama St. Willows, CA 95988
|
4,800
|
Owned
|
|||
Yreka
|
165 S. Broadway Yreka, CA 96097
|
6,000
|
Owned
|
|||
Yuba City
|
1441 Colusa Ave. Yuba City, CA 95993
|
6,900
|
Owned
|
|||
Yuba City ISB
|
700 Onstott Rd. (Raleys) Yuba City, CA 95991
|
482
|
March 29, 2004
|
(1)
|
|
This leased building was vacated in 1998 and is being subleased.
|
(2)
|
|
This building was vacated in 1997 and is currently being leased.
|
Years Ended December 31,
|
|||||||||||||||
2001
|
2000
|
1999
|
1998
|
1997
|
|||||||||||
(dollars in thousands, except per share amounts)
|
|||||||||||||||
Interest income:
|
|||||||||||||||
Interest and fees on loans
|
$
|
58,730
|
$
|
61,835
|
$
|
52,614
|
$
|
47,772
|
$
|
44,903
|
|||||
Interest on investment securitiestaxable
|
|
9,543
|
|
11,704
|
|
12,500
|
|
14,622
|
|
13,791
|
|||||
Interest on investment securitiestax exempt
1
|
|
3,373
|
|
3,420
|
|
3,383
|
|
2,809
|
|
958
|
|||||
Interest on federal funds sold
|
|
1,506
|
|
538
|
|
465
|
|
150
|
|
553
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Total interest income
|
|
73,152
|
|
77,497
|
|
68,962
|
|
65,353
|
|
60,205
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense:
|
|||||||||||||||
Interest on deposits
|
|
21,507
|
|
25,003
|
|
21,277
|
|
22,865
|
|
22,682
|
|||||
Interest on short-term borrowing
|
|
7
|
|
623
|
|
386
|
|
816
|
|
537
|
|||||
Interest on long-term debt
|
|
1,972
|
|
2,917
|
|
2,707
|
|
1,615
|
|
716
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Total interest expense
|
|
23,486
|
|
28,543
|
|
24,370
|
|
25,296
|
|
23,935
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income
|
|
49,666
|
|
48,954
|
|
44,592
|
|
40,057
|
|
36,270
|
|||||
Provision for loan losses
|
|
4,400
|
|
5,000
|
|
3,550
|
|
4,200
|
|
3,000
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Net interest income after provision for loan losses
|
|
45,266
|
|
43,954
|
|
41,042
|
|
35,857
|
|
33,270
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest income:
|
|||||||||||||||
Service charges, fees and other
|
|
13,269
|
|
14,645
|
|
12,077
|
|
12,553
|
|
9,548
|
|||||
Investment securities gains (losses), net
|
|
1,792
|
|
|
|
24
|
|
316
|
|
18
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Total noninterest income
|
|
15,061
|
|
14,645
|
|
12,101
|
|
12,869
|
|
9,566
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Noninterest expenses:
|
|||||||||||||||
Salaries and employee benefits
|
|
21,396
|
|
19,912
|
|
17,837
|
|
16,803
|
|
15,671
|
|||||
Other, net
|
|
19,408
|
|
17,983
|
|
16,996
|
|
17,889
|
|
17,261
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Total noninterest expenses
|
|
40,607
|
|
37,846
|
|
34,726
|
|
34,583
|
|
32,932
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Net income before income taxes
|
|
20,897
|
|
21,030
|
|
19,091
|
|
14,768
|
|
9,904
|
|||||
Income taxes
|
|
7,324
|
|
7,237
|
|
6,534
|
|
5,049
|
|
3,707
|
|||||
Tax equivalent adjustment
1
|
|
1,154
|
|
1,170
|
|
1,154
|
|
949
|
|
328
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Net income
|
$
|
12,419
|
$
|
12,623
|
$
|
11,403
|
$
|
8,770
|
$
|
5,869
|
|||||
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Interest on tax-free securities is reported on a tax equivalent basis of 1.52 for 2001, 2000, 1999, 1998 and 1997.
|
2001
|
2000
|
1999
|
||||||||||||||||||||||||||||
Average Balance
1
|
Income
|
Yield/ Rate
|
Average Balance
1
|
Income
|
Yield/ Rate
|
Average Balance
1
|
Income
|
Yield/ Rate
|
||||||||||||||||||||||
(dollars in thousands; unaudited)
|
||||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||||||||
Loans
2,3
|
$
|
647,317
|
|
$
|
58,730
|
9.07
|
%
|
$
|
624,717
|
|
$
|
61,835
|
9.02
|
%
|
$
|
566,738
|
|
$
|
52,614
|
9.28
|
%
|
|||||||||
Securitiestaxable
|
|
159,465
|
|
|
9,543
|
5.98
|
%
|
|
181,316
|
|
|
11,704
|
6.46
|
%
|
|
205,489
|
|
|
12,500
|
6.08
|
%
|
|||||||||
Securitiesnontaxable
4
|
|
44,615
|
|
|
3,373
|
7.56
|
%
|
|
44,847
|
|
|
3,420
|
7.63
|
%
|
|
44,852
|
|
|
3,383
|
7.54
|
%
|
|||||||||
Federal funds sold
|
|
39,204
|
|
|
1,506
|
3.84
|
%
|
|
8,696
|
|
|
538
|
6.19
|
%
|
|
8,733
|
|
|
465
|
5.32
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total earning assets
|
|
890,601
|
|
|
73,152
|
8.21
|
%
|
|
859,576
|
|
|
77,497
|
9.02
|
%
|
|
825,812
|
|
|
68,962
|
8.35
|
%
|
|||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||
Cash and due from banks
|
|
42,458
|
|
|
39,295
|
|
|
37,206
|
|
|||||||||||||||||||||
Premises and equipment
|
|
16,749
|
|
|
16,622
|
|
|
16,260
|
|
|||||||||||||||||||||
Other assets, net
|
|
40,453
|
|
|
42,150
|
|
|
37,210
|
|
|||||||||||||||||||||
Unrealized gain (loss) on securities
|
|
495
|
|
|
(8,112
|
)
|
|
(3,508
|
)
|
|||||||||||||||||||||
Less: Allowance for loan losses
|
|
(12,214
|
)
|
|
(11,741
|
)
|
|
(9,525
|
)
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total assets
|
$
|
978,542
|
|
$
|
937,790
|
|
$
|
903,455
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Liabilities and shareholders equity
|
||||||||||||||||||||||||||||||
Interest-bearing demand deposits
|
$
|
156,629
|
|
|
1,487
|
0.95
|
%
|
$
|
149,412
|
|
|
2,360
|
1.58
|
%
|
$
|
145,558
|
|
|
2,287
|
1.57
|
%
|
|||||||||
Savings deposits
|
|
225,137
|
|
|
4,759
|
2.11
|
%
|
|
218,286
|
|
|
6,837
|
3.13
|
%
|
|
224,368
|
|
|
6,811
|
3.04
|
%
|
|||||||||
Time deposits
|
|
301,023
|
|
|
15,261
|
5.07
|
%
|
|
278,968
|
|
|
15,806
|
5.67
|
%
|
|
255,659
|
|
|
12,179
|
4.76
|
%
|
|||||||||
Federal funds purchased
|
|
289
|
|
|
7
|
2.42
|
%
|
|
7,753
|
|
|
524
|
6.76
|
%
|
|
7,024
|
|
|
356
|
5.07
|
%
|
|||||||||
Repurchase agreements
|
|
|
|
|
|
|
1,508
|
|
|
99
|
6.56
|
%
|
|
614
|
|
|
30
|
4.89
|
%
|
|||||||||||
Long-term debt
|
|
32,133
|
|
|
1,972
|
6.14
|
%
|
|
48,078
|
|
|
2,917
|
6.07
|
%
|
|
49,135
|
|
|
2,707
|
5.51
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total interest-bearing liabilities
|
|
715,211
|
|
|
23,486
|
3.28
|
%
|
|
704,005
|
|
|
28,543
|
4.05
|
%
|
|
682,358
|
|
|
24,370
|
3.57
|
%
|
|||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||
Noninterest-bearing deposits
|
|
160,152
|
|
|
141,767
|
|
|
135,511
|
|
|||||||||||||||||||||
Other liabilities
|
|
15,660
|
|
|
13,277
|
|
|
12,465
|
|
|||||||||||||||||||||
Shareholders equity
|
|
87,519
|
|
|
78,741
|
|
|
73,121
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total liabilities and shareholders equity
|
$
|
978,542
|
|
$
|
937,790
|
|
$
|
903,455
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Net interest rate spread
5
|
4.93
|
%
|
4.97
|
%
|
4.78
|
%
|
||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||
Net interest income/net interest margin
6
|
$
|
49,666
|
5.58
|
%
|
$
|
48,954
|
5.70
|
%
|
$
|
44,592
|
5.40
|
%
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Average balances are computed principally on the basis of daily balances.
|
(2)
|
|
Nonaccrual loans are included.
|
(3)
|
|
Interest income on loans includes fees on loans of $3,297,000 in 2001, $2,602,000 in 2000, and $2,072,000 in 1999.
|
(4)
|
|
Interest income is stated on a tax equivalent basis of 1.52 in 2001, 2000, and 1999.
|
(5)
|
|
Net interest rate spread represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
|
(6)
|
|
Net interest margin is computed by dividing net interest income by total average earning assets.
|
For the Year Ended December 31,
|
|||||||||||||||||||||||
2001 Over 2000
|
2000 Over 1999
|
||||||||||||||||||||||
Volume
|
Rate
4
|
Yield/ Total
|
Volume
|
Rate
4
|
Yield/ Total
|
||||||||||||||||||
(dollars in thousands; unaudited)
|
|||||||||||||||||||||||
Increase (decrease) in interest income:
|
|||||||||||||||||||||||
Federal funds sold
|
$
|
1,888
|
|
$
|
(920
|
)
|
$
|
968
|
|
$
|
(2
|
)
|
$
|
75
|
$
|
73
|
|
||||||
Securitiestaxable
|
|
(1,412
|
)
|
|
(749
|
)
|
|
(2,161
|
)
|
|
(1,470
|
)
|
|
674
|
|
(796
|
)
|
||||||
Securitiesnontaxable
4
|
|
(18
|
)
|
|
(29
|
)
|
|
(47
|
)
|
|
0
|
|
|
37
|
|
37
|
|
||||||
Loans
1,2
|
|
2,237
|
|
|
(5,342
|
)
|
|
(3,105
|
)
|
|
5,380
|
|
|
3,841
|
|
9,221
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
2,695
|
|
|
(7,040
|
)
|
|
(4,345
|
)
|
|
3,908
|
|
|
4,627
|
|
8,535
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Increase (decrease) in interest expense:
|
|||||||||||||||||||||||
Demand deposits
|
|||||||||||||||||||||||
(interest-bearing)
|
|
114
|
|
|
(987
|
)
|
|
(873
|
)
|
|
61
|
|
|
12
|
|
73
|
|
||||||
Savings deposits
|
|
214
|
|
|
(2,292
|
)
|
|
(2,078
|
)
|
|
(185
|
)
|
|
211
|
|
26
|
|
||||||
Time deposits
|
|
1,251
|
|
|
(1,796
|
)
|
|
(545
|
)
|
|
1,110
|
|
|
2,517
|
|
3,627
|
|
||||||
Federal funds purchased
|
|
(604
|
)
|
|
(12
|
)
|
|
(616
|
)
|
|
82
|
|
|
155
|
|
237
|
|
||||||
Long-term debt
|
|
(968
|
)
|
|
23
|
|
|
(945
|
)
|
|
(58
|
)
|
|
268
|
|
210
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
7
|
|
|
(5,064
|
)
|
|
(5,057
|
)
|
|
1,010
|
|
|
3,163
|
|
4,173
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Increase (decrease) in net interest income
|
$
|
2,688
|
|
$
|
(1,976
|
)
|
$
|
712
|
|
$
|
2,898
|
|
$
|
1,464
|
$
|
4,362
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Average balances are computed principally on the basis of daily balances.
|
(2)
|
|
Nonaccrual loans are included.
|
(3)
|
|
Interest income on loans includes fees on loans of $3,297,000, $2,602,000, and $2,072,000 in the years ended December 31, 2001, 2000 and 1999, respectively.
|
(4)
|
|
Interest income is stated on a tax equivalent basis of 1.52 in the years ended December 31, 2001, 2000 and 1999.
|
(5)
|
|
Net interest rate spread represents the average yield earned on interest-bearing assets less the average rate paid on interest-bearing liabilities.
|
(6)
|
|
Net interest margin is computed by dividing net interest income by total average earning assets.
|
2001
|
2000
|
1999
|
|||||||
Return on total assets
|
1.27
|
%
|
1.35
|
%
|
1.26
|
%
|
|||
Return on shareholders equity
|
14.19
|
%
|
16.03
|
%
|
15.59
|
%
|
|||
Shareholders equity to total assets
|
8.65
|
%
|
8.78
|
%
|
8.09
|
%
|
|||
Common shareholders dividend payout ratio
|
45.43
|
%
|
45.00
|
%
|
43.81
|
%
|
December 31,
|
|||||||||||||||
2001
|
2000
|
1999
|
1998
|
1997
|
|||||||||||
(dollars in thousands)
|
|||||||||||||||
Commercial, financial and agricultural
|
$
|
130,054
|
$
|
148,135
|
$
|
138,313
|
$
|
106,796
|
$
|
78,765
|
|||||
Consumer installment
|
|
155,046
|
|
120,247
|
|
79,273
|
|
71,634
|
|
87,520
|
|||||
Real estate mortgage
|
|
326,897
|
|
334,010
|
|
332,116
|
|
316,927
|
|
248,432
|
|||||
Real estate construction
|
|
46,735
|
|
37,999
|
|
38,277
|
|
37,076
|
|
34,250
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Total loans
|
$
|
658,732
|
$
|
640,391
|
$
|
587,979
|
$
|
532,433
|
$
|
448,967
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
the loan becomes 90 days past due as to interest or principal;
|
|
|
the full and timely collection of additional interest or principal becomes uncertain;
|
|
|
the loan is classified as doubtful by internal credit review or bank regulatory agencies;
|
|
|
a portion of the principal balance has been charged off; or
|
|
|
Tri Counties Bank takes possession of the collateral.
|
December 31,
|
||||||||||||||||||||
2001
|
2000
|
1999
|
1998
|
1997
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Nonaccrual loans
|
$
|
5,466
|
|
$
|
12,262
|
|
$
|
1,758
|
|
$
|
1,045
|
|
$
|
4,721
|
|
|||||
Accruing loans past due 90 days or more
|
|
584
|
|
|
965
|
|
|
923
|
|
|
620
|
|
|
528
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total nonperforming loans
|
|
6,050
|
|
|
13,227
|
|
|
2,681
|
|
|
1,665
|
|
|
5,249
|
|
|||||
Other real estate owned
|
|
71
|
|
|
1,441
|
|
|
760
|
|
|
1,412
|
|
|
2,230
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total nonperforming assets
|
$
|
6,121
|
|
$
|
14,668
|
|
$
|
3,441
|
|
$
|
3,077
|
|
$
|
7,479
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
No income producing investments in real estate held by Tri Counties Bank real estate development
subsidiary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
856
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Nonperforming loans to total loans
|
|
0.92
|
%
|
|
2.07
|
%
|
|
0.46
|
%
|
|
0.31
|
%
|
|
1.17
|
%
|
|||||
Allowance for loan losses to nonperforming loans
|
|
216
|
%
|
|
88
|
%
|
|
412
|
%
|
|
493
|
%
|
|
123
|
%
|
|||||
Nonperforming assets to total assets
|
|
0.61
|
%
|
|
1.51
|
%
|
|
0.37
|
%
|
|
0.34
|
%
|
|
0.91
|
%
|
|||||
Allowance for loan losses to nonperforming assets
|
|
213
|
%
|
|
80
|
%
|
|
321
|
%
|
|
267
|
%
|
|
86
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the periodic re-grading of credits based on changes in their individual credit characteristics including delinquency;
|
|
|
seasoning,
|
|
|
recent financial performance of the borrower;
|
|
|
economic factors;
|
|
|
changes in the interest rate environment; and
|
|
|
growth of the portfolio as a whole or by segment
|
|
|
with respect to loans to the agriculture industry, management considered the effects on borrowers of weather conditions and overseas market conditions for
exported products as well as commodity prices in general;
|
|
|
with respect to changes in the interest rate environment management considered the recent changes in interest rates and the resultant economic impact it may
have had on borrowers with high leverage and/or low profitability; and
|
|
|
with respect to loans to borrowers in new markets and growth in general, management considered the relatively short seasoning of such loans and the lack of
experience with such borrowers.
|
December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
(dollars in thousands)
|
|||||||||
Specific allowance
|
$
|
5,672
|
$
|
3,266
|
$
|
600
|
|||
Formula allowance
|
|
4,685
|
|
5,414
|
|
6,606
|
|||
Unallocated allowance
|
|
2,701
|
|
2,990
|
|
3,831
|
|||
|
|
|
|
|
|
||||
Total allowance
|
$
|
13,058
|
$
|
11,670
|
$
|
11,037
|
|||
|
|
|
|
|
|
December 31,
|
||||||||||||||||||||
2001
|
2000
|
1999
|
1998
|
1997
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Balance, beginning of year
|
$
|
11,670
|
|
$
|
11,037
|
|
$
|
8,206
|
|
$
|
6,459
|
|
$
|
6,097
|
|
|||||
Provision charged to operations
|
|
4,400
|
|
|
5,000
|
|
|
3,550
|
|
|
4,200
|
|
|
3,000
|
|
|||||
Loans charged off:
|
||||||||||||||||||||
Commercial, financial and agricultural
|
|
(2,861
|
)
|
|
(4,450
|
)
|
|
(865
|
)
|
|
(1,865
|
)
|
|
(1,289
|
)
|
|||||
Consumer installment
|
|
(134
|
)
|
|
(103
|
)
|
|
(148
|
)
|
|
(702
|
)
|
|
(1,551
|
)
|
|||||
Real estate mortgage
|
|
(218
|
)
|
|
(152
|
)
|
|
(69
|
)
|
|
(188
|
)
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total loans charged-off
|
|
(3,213
|
)
|
|
(4,705
|
)
|
|
(1,082
|
)
|
|
(2,755
|
)
|
|
(2,840
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recoveries:
|
||||||||||||||||||||
Commercial, financial and agricultural
|
|
92
|
|
|
281
|
|
|
327
|
|
|
164
|
|
|
85
|
|
|||||
Consumer installment
|
|
34
|
|
|
54
|
|
|
36
|
|
|
130
|
|
|
117
|
|
|||||
Real estate mortgage
|
|
75
|
|
|
3
|
|
|
|
|
|
8
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total recoveries
|
|
201
|
|
|
338
|
|
|
363
|
|
|
302
|
|
|
202
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net loans charged-off
|
|
(3,012
|
)
|
|
(4,367
|
)
|
|
(719
|
)
|
|
(2,453
|
)
|
|
(2,638
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, year end
|
$
|
13,058
|
|
$
|
11,670
|
|
$
|
11,037
|
|
$
|
8,206
|
|
$
|
6,459
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average total loans
|
$
|
647,317
|
|
$
|
624,717
|
|
$
|
566,738
|
|
$
|
487,598
|
|
$
|
448,117
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ratios:
|
||||||||||||||||||||
Net charge-offs during period to average loans outstanding during period
|
|
0.47
|
%
|
|
0.70
|
%
|
|
0.13
|
%
|
|
0.50
|
%
|
|
0.59
|
%
|
|||||
Provision for loan losses to average loans outstanding
|
|
0.68
|
%
|
|
0.80
|
%
|
|
0.63
|
%
|
|
0.86
|
%
|
|
0.67
|
%
|
|||||
Allowance to loans at year end
|
|
1.98
|
%
|
|
1.82
|
%
|
|
1.88
|
%
|
|
1.54
|
%
|
|
1.44
|
%
|
December 31,
|
||||||||||||
2001
|
2002
|
|||||||||||
(dollars in thousands)
|
||||||||||||
Amount
|
Percent of Loans in Each Category to Total Loans
|
Amount
|
Percent of Loans in Each Category to Total Loans
|
|||||||||
Balance at End of Period Applicable to:
|
||||||||||||
Commercial, financial and agricultural
|
$
|
6,929
|
19.8
|
%
|
$
|
6,873
|
23.1
|
%
|
||||
Consumer installment
|
|
1,896
|
23.5
|
%
|
|
1,373
|
18.8
|
%
|
||||
Real estate mortgage
|
|
3,709
|
49.6
|
%
|
|
2,925
|
52.2
|
%
|
||||
Real estate construction
|
|
524
|
7.1
|
%
|
|
499
|
5.9
|
%
|
||||
|
|
|
|
|
|
|
|
|||||
$
|
13,058
|
100.0
|
%
|
$
|
11,670
|
100.0
|
%
|
|||||
|
|
|
|
|
|
|
|
December 31,
|
||||||
2001
|
2000
|
|||||
(dollars in thousands)
|
||||||
Core-deposit intangible
|
$
|
4,553
|
$
|
5,464
|
||
Additional minimum pension liability
|
|
517
|
|
|
||
|
|
|
|
|||
Total intangible assets
|
$
|
5,070
|
$
|
5,464
|
||
|
|
|
|
Change in Interest
Rates (Basis Points) |
Estimated Change in
Net Interest Income (NII) (as % of flat NII) |
Estimated Change in
Net Income (NI) (as % of flat NI) |
||
+300 (ramp)
|
2.48%
|
5.71%
|
||
+200 (ramp)
|
1.68%
|
3.86%
|
||
+100 (ramp)
|
0.83%
|
1.91%
|
||
+ 0 (flat)
|
|
|
||
-100 (ramp)
|
(1.57)%
|
(3.63)%
|
||
-200 (ramp)
|
(3.75)%
|
(8.65)%
|
||
-300 (ramp)
|
(6.43)%
|
(14.82)%
|
Change in Interest
Rates (Basis Points) |
Estimated Change in
Market Value of Equity (MVE) (as % of flat MVE) |
|
+300 (shock)
|
(3.71)%
|
|
+200 (shock)
|
(2.60)%
|
|
+100 (shock)
|
(1.41)%
|
|
+ 0 (flat)
|
|
|
-100 (shock)
|
(0.64)%
|
|
-200 (shock)
|
(2.43)%
|
|
-300 (shock)
|
1.52%
|
|
|
although certain of Tri Counties Banks assets and liabilities may have similar maturities or repricing time frames, they may react in different degrees to
changes in market interest rates;
|
|
|
the interest rates on some of Tri Counties Banks asset and liability categories may precede, or lag behind, changes in market interest rates;
|
|
|
actual rates of prepayments on loans and investments could vary significantly from the assumptions utilized in deriving the results as presented in the
preceding table; and
|
|
|
a change in U.S. Treasury rates accompanied by a change in the shape of the treasury yield curve could result in different estimations from those presented in
this document.
|
Repricing Within
|
||||||||||||||||||||
Less than
months |
3-6
months |
6-12
months |
1-5
years |
Over 5
years |
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||
Securities
|
$
|
54,460
|
|
$
|
17,820
|
|
$
|
24,042
|
|
$
|
102,393
|
|
$
|
40,204
|
|
|||||
Loans
|
|
311,529
|
|
|
28,601
|
|
|
42,230
|
|
|
207,505
|
|
|
63,519
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest-earning assets
|
$
|
365,989
|
|
$
|
46,421
|
|
$
|
66,272
|
|
$
|
309,898
|
|
$
|
103,723
|
|
|||||
Interest-bearing liabilities:
|
||||||||||||||||||||
Transaction deposits
|
|
412,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Time
|
|
117,609
|
|
|
63,678
|
|
|
73,373
|
|
|
22,479
|
|
|
125
|
|
|||||
Fed funds purchased
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Long-term borrowings
|
|
8
|
|
|
9
|
|
|
18
|
|
|
194
|
|
|
22,727
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest-bearing liabilities
|
|
530,360
|
|
|
63,687
|
|
|
73,391
|
|
|
22,673
|
|
|
22,852
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest sensitivity gap
|
|
(164,370
|
)
|
|
(17,266
|
)
|
|
(7,120
|
)
|
|
287,226
|
|
|
80,870
|
|
|||||
Cumulative sensitivity gap
|
|
(164,370
|
)
|
|
(181,636
|
)
|
|
(188,756
|
)
|
|
98,470
|
|
|
179,340
|
|
|||||
As a percentage of earning assets:
|
||||||||||||||||||||
Interest sensitivity gap
|
|
(18.42
|
%)
|
|
(1.94
|
%)
|
|
(0.80
|
%)
|
|
32.19
|
%
|
|
9.06
|
%
|
|||||
Cumulative sensitivity gap
|
|
(18.42
|
%)
|
|
(20.36
|
%)
|
|
(21.15
|
%)
|
|
11.04
|
%
|
|
20.10
|
%
|
Amounts as of December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
(dollars in thousands)
|
|||||||||
Time remaining until maturity:
|
|||||||||
Less than 3 months
|
$
|
38,114
|
$
|
55,721
|
$
|
52,260
|
|||
3 months to 6 months
|
|
10,431
|
|
14,002
|
|
10,906
|
|||
6 months to 12 months
|
|
15,383
|
|
18,686
|
|
7,228
|
|||
More than 12 months
|
|
6,374
|
|
4,933
|
|
3,068
|
|||
|
|
|
|
|
|
||||
Total
|
$
|
70,302
|
$
|
93,342
|
$
|
73,462
|
|||
|
|
|
|
|
|
Within One Year
|
After One But Within 5 Years
|
After 5 Years
|
Total
|
|||||||||
(dollars in thousands)
|
||||||||||||
Loans with predetermined interest rates:
|
||||||||||||
Commercial, financial and agricultural
|
$
|
15,200
|
$
|
26,006
|
$
|
2,291
|
$
|
43,497
|
||||
Consumer installment
|
|
14,652
|
|
39,642
|
|
28,648
|
|
82,942
|
||||
Real estate mortgage
|
|
12,305
|
|
53,060
|
|
64,466
|
|
129,831
|
||||
Real estate construction
|
|
19,909
|
|
0
|
|
420
|
|
20,329
|
||||
|
|
|
|
|
|
|
|
|||||
|
62,066
|
|
118,708
|
|
95,825
|
|
276,599
|
|||||
|
|
|
|
|
|
|
|
|||||
Loans with floating interest rates:
|
||||||||||||
Commercial, financial and agricultural
|
|
67,341
|
|
15,344
|
|
3,872
|
|
86,557
|
||||
Consumer installment
|
|
72,095
|
|
0
|
|
8
|
|
72,103
|
||||
Real estate mortgage
|
|
27,413
|
|
50,606
|
|
119,046
|
|
197,065
|
||||
Real estate construction
|
|
17,449
|
|
8,548
|
|
411
|
|
26,408
|
||||
|
|
|
|
|
|
|
|
|||||
$
|
184,298
|
$
|
74,498
|
$
|
123,337
|
$
|
382,133
|
|||||
|
|
|
|
|
|
|
|
|||||
Total loans
|
$
|
246,364
|
$
|
193,206
|
$
|
219,162
|
$
|
658,732
|
||||
|
|
|
|
|
|
|
|
Within One Year
|
After One Year but Through Five Years
|
After Five Years but Through Ten Years
|
After Ten Years
|
Total
|
||||||||||||||||||||||||||
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
|||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||
Securities Available for Sale
|
||||||||||||||||||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
$
|
|
|
%
|
$
|
29,883
|
5.74
|
%
|
$
|
|
|
%
|
$
|
|
|
%
|
$
|
29,883
|
5.74
|
%
|
||||||||||
Obligations of states and political subdivisions
|
|
763
|
5.53
|
%
|
|
3,618
|
5.76
|
%
|
|
3,688
|
7.06
|
%
|
|
37,164
|
7.84
|
%
|
|
45,233
|
7.58
|
%
|
||||||||||
Mortgage-backed securities
|
|
12,635
|
6.21
|
%
|
|
19,749
|
5.75
|
%
|
|
100,616
|
6.06
|
%
|
|
133,000
|
6.03
|
%
|
||||||||||||||
Corporate bonds
|
|
2,169
|
7.65
|
%
|
|
10,120
|
3.08
|
%
|
|
12,289
|
3.89
|
%
|
||||||||||||||||||
Other securities
|
|
4,185
|
5.20
|
%
|
|
4,185
|
5.20
|
%
|
||||||||||||||||||||||
Total securities available for-sale
|
$
|
763
|
5.53
|
%
|
$
|
48,305
|
5.95
|
%
|
$
|
23,437
|
5.96
|
%
|
$
|
152,085
|
6.28
|
%
|
$
|
224,590
|
6.17
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total all securities
|
$
|
763
|
5.53
|
%
|
$
|
48,305
|
5.95
|
%
|
$
|
23,437
|
5.96
|
%
|
$
|
152,085
|
6.28
|
%
|
$
|
224,590
|
6.17
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Net interest income
|
$
|
13,520
|
|
$
|
12,923
|
|
$
|
39,742
|
|
$
|
36,958
|
|
||||
Provision for loan losses
|
|
(700
|
)
|
|
(600
|
)
|
|
(2,000
|
)
|
|
(3,250
|
)
|
||||
Noninterest income
|
|
5,413
|
|
|
3,713
|
|
|
13,182
|
|
|
12,318
|
|
||||
Noninterest expense
|
|
(12,133
|
)
|
|
(10,465
|
)
|
|
(33,498
|
)
|
|
(30,437
|
)
|
||||
Provision for income taxes
|
|
(2,473
|
)
|
|
(2,326
|
)
|
|
(7,106
|
)
|
|
(6,528
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
3,627
|
|
$
|
3,245
|
|
$
|
10,320
|
|
$
|
9,061
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September
30,
|
Nine months ended
September
30,
|
|||||||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Interest income
|
$
|
16,435
|
|
$
|
18,259
|
|
$
|
48,468
|
|
$
|
55,138
|
|
||||
Interest expense
|
|
(3,227
|
)
|
|
(5,612
|
)
|
|
(9,669
|
)
|
|
(19,130
|
)
|
||||
Fully tax equivalent adjustment
|
|
312
|
|
|
276
|
|
|
943
|
|
|
950
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net interest income
|
$
|
13,520
|
|
$
|
12,923
|
|
$
|
39,742
|
|
$
|
36,958
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average earning assets
|
$
|
954,611
|
|
$
|
894,670
|
|
$
|
926,387
|
|
$
|
883,816
|
|
||||
Net interest margin
|
|
5.67
|
%
|
|
5.78
|
%
|
|
5.72
|
%
|
|
5.58
|
%
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||
Yield on earning assets
|
7.02
|
%
|
8.29
|
%
|
7.11
|
%
|
8.46
|
%
|
||||
Rate paid on interest-bearing
|
||||||||||||
Liabilities
|
1.72
|
%
|
3.15
|
%
|
1.76
|
%
|
3.58
|
%
|
||||
|
|
|
|
|
|
|
|
|||||
Net interest spread
|
5.30
|
%
|
5.14
|
%
|
5.35
|
%
|
4.88
|
%
|
||||
Impact of all other net noninterest-bearing funds
|
0.37
|
%
|
0.64
|
%
|
0.37
|
%
|
0.70
|
%
|
||||
|
|
|
|
|
|
|
|
|||||
Net interest margin
|
5.67
|
%
|
5.78
|
%
|
5.72
|
%
|
5.58
|
%
|
For the three months ended
|
||||||||||||||||||
September 30, 2002
|
September 30, 2001
|
|||||||||||||||||
Average Balance
|
Interest Income/ Expense
|
Rates Earned Paid
|
Average Balance
|
Interest Income/ Expense
|
Rates Earned Paid
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||||
Assets:
|
||||||||||||||||||
Federal funds sold
|
$
|
32,961
|
$
|
143
|
1.74
|
%
|
$
|
41,744
|
$
|
370
|
3.55
|
%
|
||||||
Investment securities
|
|
245,641
|
|
3,272
|
5.33
|
%
|
|
191,296
|
|
3,045
|
6.37
|
%
|
||||||
Loans
|
|
676,009
|
|
13,332
|
7.89
|
%
|
|
661,630
|
|
15,120
|
9.14
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total earning assets
|
|
954,611
|
|
16,747
|
7.02
|
%
|
|
894,670
|
|
18,535
|
8.29
|
%
|
||||||
Other assets
|
|
89,907
|
|
87,717
|
||||||||||||||
|
|
|
|
|||||||||||||||
Total assets
|
$
|
1,044,518
|
$
|
982,387
|
||||||||||||||
|
|
|
|
Liabilities and shareholders equity:
|
||||||||||||||||||
Interest-bearing demand deposits
|
$
|
175,964
|
|
115
|
0.26
|
%
|
$
|
157,315
|
|
368
|
0.94
|
%
|
||||||
Savings deposits
|
|
261,510
|
|
656
|
1.00
|
%
|
|
224,338
|
|
1,111
|
1.98
|
%
|
||||||
Time deposits
|
|
288,021
|
|
2,129
|
2.96
|
%
|
|
298,505
|
|
3,618
|
4.85
|
%
|
||||||
Federal funds purchased
|
|
246
|
|
1
|
1.63
|
%
|
|
235
|
|
3
|
5.11
|
%
|
||||||
Long-term debt
|
|
22,772
|
|
326
|
5.73
|
%
|
|
32,963
|
|
512
|
6.21
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total interest-bearing liabilities
|
|
748,513
|
|
3,227
|
1.72
|
%
|
|
713,356
|
|
5,612
|
3.15
|
%
|
||||||
Noninterest-bearing deposits
|
|
183,180
|
|
164,583
|
||||||||||||||
Other liabilities
|
|
17,180
|
|
16,443
|
||||||||||||||
Shareholders equity
|
|
95,645
|
|
88,005
|
||||||||||||||
|
|
|
|
|||||||||||||||
Total liabilities and shareholders equity
|
$
|
1,044,518
|
$
|
982,387
|
||||||||||||||
|
|
|
|
|||||||||||||||
Net interest spread(1)
|
5.30
|
%
|
5.14
|
%
|
||||||||||||||
Net interest income and interest margin(2)
|
$
|
13,520
|
5.67
|
%
|
$
|
12,923
|
5.78
|
%
|
||||||||||
|
|
|
|
|
|
|
|
(1)
|
|
Net interest spread represents the average yield earned on assets minus the average rate paid on interest-earning assets minus the average rate paid on
interest-bearing liabilities.
|
(2)
|
|
Net interest margin is computed by calculating the difference between interest income and expense, divided by the average balance of earning assets.
|
For the nine months ended
|
||||||||||||||||||
September 30, 2002
|
September 30, 2001
|
|||||||||||||||||
Average Balance
|
Interest Income/ Expense
|
Rates Earned Paid
|
Average Balance
|
Interest Income/ Expense
|
Rates Earned Paid
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||||
Assets:
|
||||||||||||||||||
Federal funds sold
|
$
|
37,089
|
$
|
476
|
1.71
|
%
|
$
|
40,680
|
$
|
1,321
|
4.33
|
%
|
||||||
Investment securities
|
|
233,616
|
|
9,549
|
5.45
|
%
|
|
198,689
|
|
9,690
|
6.50
|
%
|
||||||
Loans
|
|
655,682
|
|
39,386
|
8.01
|
%
|
|
644,447
|
|
45,077
|
9.33
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total earning assets
|
|
926,387
|
|
49,411
|
7.11
|
%
|
|
883,816
|
|
56,088
|
8.46
|
%
|
||||||
Other assets
|
|
88,681
|
|
86,260
|
||||||||||||||
|
|
|
|
|||||||||||||||
Total assets
|
$
|
1,015,068
|
$
|
970,076
|
||||||||||||||
|
|
|
|
|||||||||||||||
Liabilities and shareholders equity:
|
||||||||||||||||||
Interest-bearing demand deposits
|
$
|
173,796
|
|
350
|
0.27
|
%
|
$
|
153,412
|
|
1,325
|
1.15
|
%
|
||||||
Savings deposits
|
|
257,138
|
|
2,011
|
1.04
|
%
|
|
219,750
|
|
3,898
|
2.37
|
%
|
||||||
Time deposits
|
|
278,690
|
|
6,340
|
3.03
|
%
|
|
305,436
|
|
12,380
|
5.40
|
%
|
||||||
Federal funds purchased
|
|
83
|
|
1
|
1.61
|
%
|
|
113
|
|
4
|
4.25
|
%
|
||||||
Long-term debt
|
|
22,943
|
|
967
|
5.62
|
%
|
|
33,026
|
|
1,523
|
6.15
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total interest-bearing liabilities
|
|
732,650
|
|
9,669
|
1.76
|
%
|
|
711,737
|
|
19,130
|
3.58
|
%
|
||||||
Noninterest-bearing deposits
|
|
174,274
|
|
155,563
|
||||||||||||||
Other liabilities
|
|
15,932
|
|
15,890
|
||||||||||||||
Shareholders equity
|
|
92,212
|
|
86,886
|
||||||||||||||
|
|
|
|
|||||||||||||||
Total liabilities and shareholders equity
|
$
|
1,015,068
|
$
|
970,076
|
||||||||||||||
|
|
|
|
|||||||||||||||
Net interest spread(1)
|
5.35
|
%
|
4.88
|
%
|
||||||||||||||
Net interest income and interest margin(2)
|
$
|
39,742
|
5.72
|
%
|
$
|
36,958
|
5.58
|
%
|
||||||||||
|
|
|
|
|
|
|
|
(1)
|
|
Net interest spread represents the average yield earned on assets minus the average rate paid on interest-earning assets minus the average rate paid on
interest-bearing liabilities.
|
(2)
|
|
Net interest margin is computed by calculating the difference between interest income and expense, divided by the average balance of earning assets.
|
Three months ended
September 30, 2002
compared with three months
ended September 30, 2001
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(dollars in thousands)
|
||||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Federal funds sold
|
($
|
78
|
)
|
|
(149
|
)
|
|
(227
|
)
|
|||
Investment securities
|
|
865
|
|
|
(638
|
)
|
|
227
|
|
|||
Loans
|
|
329
|
|
|
(2,117
|
)
|
|
(1,788
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total earning assets
|
|
1,116
|
|
|
(2,904
|
)
|
|
(1,788
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Increase (decrease) in interest expense:
|
||||||||||||
Interest-bearing demand deposits
|
|
44
|
|
|
(297
|
)
|
|
(253
|
)
|
|||
Savings deposits
|
|
184
|
|
|
(639
|
)
|
|
(455
|
)
|
|||
Time deposits
|
|
(127
|
)
|
|
(1,362
|
)
|
|
(1,489
|
)
|
|||
Federal funds purchased
|
|
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Long-term debt
|
|
(158
|
)
|
|
(28
|
)
|
|
(186
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total interest-bearing liabilities
|
|
(57
|
)
|
|
(2,328
|
)
|
|
(2,385
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Increase (decrease) in net interest income
|
$
|
1,173
|
|
($
|
576
|
)
|
$
|
597
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Nine months ended
September
30, 2002
compared with nine months
ended September 30,
2001
|
||||||||||||
Volume
|
Rate
|
Total
|
||||||||||
(dollars in thousands)
|
||||||||||||
Increase (decrease) in interest income:
|
||||||||||||
Fed funds sold
|
($
|
117
|
)
|
($
|
728
|
)
|
($
|
845
|
)
|
|||
Investment securities
|
|
1,703
|
|
|
(1,844
|
)
|
|
(141
|
)
|
|||
Loans
|
|
786
|
|
|
(6,477
|
)
|
|
(5,691
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total earning assets
|
|
2,372
|
|
|
(9,049
|
)
|
|
(6,677
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Increase (decrease) in interest expense:
|
||||||||||||
Interest-bearing demand deposits
|
|
176
|
|
|
(1,151
|
)
|
|
(975
|
)
|
|||
Savings deposits
|
|
665
|
|
|
(2,552
|
)
|
|
(1,887
|
)
|
|||
Time deposits
|
|
(1,083
|
)
|
|
(4,957
|
)
|
|
(6,040
|
)
|
|||
Fed funds purchased
|
|
(1
|
)
|
|
(2
|
)
|
|
(3
|
)
|
|||
Long-term debt
|
|
(465
|
)
|
|
(91
|
)
|
|
(556
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total interest-bearing liabilities
|
|
(708
|
)
|
|
(8,753
|
)
|
|
(9,461
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Increase (decrease) in net interest income
|
$
|
3,080
|
|
($
|
296
|
)
|
$
|
2,784
|
|
|||
|
|
|
|
|
|
|
|
|
September 30,
|
December 31,
|
|||||||||||
2002
|
2001
|
2000
|
1999
|
|||||||||
(dollars in thousands)
|
||||||||||||
U.S. Treasury securities and obligations of U.S. Government corporations and agencies
|
$
|
33,395
|
$
|
29,883
|
$
|
31,173
|
$
|
30,576
|
||||
Obligations of state and political subdivisions
|
|
45,853
|
|
45,233
|
|
45,376
|
|
42,615
|
||||
Mortgage-backed securities
|
|
173,958
|
|
133,000
|
|
135,086
|
|
132,589
|
||||
Corporate debt securities
|
|
11,357
|
|
12,289
|
|
10,186
|
|
11,623
|
||||
Equity securities
|
|
|
|
|
|
3,341
|
|
|
||||
Other
|
|
4,358
|
|
4,185
|
|
3,948
|
|
14,305
|
||||
|
|
|
|
|
|
|
|
|||||
$
|
268,921
|
$
|
224,590
|
$
|
229,110
|
$
|
231,708
|
|||||
|
|
|
|
|
|
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||
(dollars in thousands)
|
||||||||||||
Service charges on deposit accounts
|
$
|
2,886
|
$
|
1,500
|
$
|
5,918
|
$
|
4,392
|
||||
ATM fees and interchange
|
|
487
|
|
370
|
|
1,299
|
|
1,053
|
||||
Other service fees
|
|
148
|
|
175
|
|
418
|
|
570
|
||||
Gain on sale of investments
|
|
|
|
|
|
|
|
1,756
|
||||
Gain on sale of loans
|
|
752
|
|
494
|
|
2,254
|
|
1,292
|
||||
Commissions on sale of nondeposit investment products
|
|
712
|
|
678
|
|
1,989
|
|
1,865
|
||||
Increase in cash value of life insurance
|
|
119
|
|
144
|
|
443
|
|
433
|
||||
Other noninterest income
|
|
309
|
|
352
|
|
861
|
|
957
|
||||
|
|
|
|
|
|
|
|
|||||
Total noninterest income
|
$
|
5,413
|
$
|
3,713
|
$
|
13,182
|
$
|
12,318
|
||||
|
|
|
|
|
|
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Salaries
|
$
|
4,225
|
|
$
|
3,671
|
|
$
|
11,616
|
|
$
|
10,747
|
|
||||
Commissions and incentives
|
|
889
|
|
|
701
|
|
|
2,579
|
|
|
1,850
|
|
||||
Employee benefits
|
|
1,230
|
|
|
1,059
|
|
|
3,661
|
|
|
3,168
|
|
||||
Equipment
|
|
741
|
|
|
680
|
|
|
2,247
|
|
|
2,033
|
|
||||
Occupancy
|
|
752
|
|
|
735
|
|
|
2,157
|
|
|
2,094
|
|
||||
Professional fees
|
|
567
|
|
|
229
|
|
|
1,196
|
|
|
865
|
|
||||
Telecommunications
|
|
364
|
|
|
350
|
|
|
1,035
|
|
|
895
|
|
||||
Advertising and marketing
|
|
468
|
|
|
278
|
|
|
934
|
|
|
931
|
|
||||
Data processing and software
|
|
272
|
|
|
233
|
|
|
764
|
|
|
715
|
|
||||
Courier service
|
|
236
|
|
|
210
|
|
|
684
|
|
|
622
|
|
||||
Intangible amortization
|
|
228
|
|
|
228
|
|
|
683
|
|
|
683
|
|
||||
ATM network charges
|
|
205
|
|
|
250
|
|
|
611
|
|
|
689
|
|
||||
Postage
|
|
212
|
|
|
152
|
|
|
543
|
|
|
464
|
|
||||
Operational losses
|
|
191
|
|
|
51
|
|
|
295
|
|
|
140
|
|
||||
Assessments
|
|
64
|
|
|
56
|
|
|
175
|
|
|
167
|
|
||||
Other noninterest expense
|
|
1,489
|
|
|
1,582
|
|
|
4,318
|
|
|
4,374
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
|
$
|
12,133
|
|
$
|
10,465
|
|
$
|
33,498
|
|
$
|
30,437
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average full time equivalent staff
|
|
437
|
|
|
407
|
|
|
427
|
|
|
399
|
|
||||
Noninterest expense to revenue (fully tax equivalent)
|
|
64.1
|
%
|
|
62.9
|
%
|
|
63.3
|
%
|
|
61.8
|
%
|
September 30, 2002
|
|||
(dollars in thousands)
|
|||
Commercial, financial and agriculture
|
$
|
142,290
|
|
Consumer installment
|
|
191,601
|
|
Real estatemortgage
|
|
313,191
|
|
Real estateconstruction
|
|
36,472
|
|
|
|
||
$
|
683,554
|
||
|
|
|
|
the loan becomes 90 days past due as to interest or principal;
|
|
|
the full and timely collection of additional interest or principal becomes uncertain;
|
|
|
the loan is classified as doubtful by internal credit review or bank regulatory agencies;
|
|
|
a portion of the principal balance has been charged off; or
|
|
|
TriCo takes possession of the collateral.
|
At September 30, 2002
|
At December 31, 2001
|
|||||||||||||||||||
Gross
|
Guaranteed
|
Net
|
Gross
|
Guaranteed
|
Net
|
|||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Performing nonaccrual loans
|
$
|
14,042
|
$
|
8,504
|
$
|
5,538
|
|
$
|
2,733
|
|
|
$
|
2,733
|
|
||||||
Nonperforming, nonaccrual loans
|
|
5,468
|
|
547
|
|
4,921
|
|
|
3,120
|
$
|
387
|
|
2,733
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total nonaccrual loans
|
|
19,510
|
|
9,051
|
|
10,459
|
|
|
5,853
|
|
387
|
|
5,466
|
|
||||||
Loans 90 days past due and still accruing
|
|
572
|
|
|
|
572
|
|
|
584
|
|
|
|
584
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total nonperforming loans
|
|
20,082
|
|
9,051
|
|
11,031
|
|
|
6,437
|
|
387
|
|
6,050
|
|
||||||
Other real estate owned
|
|
|
|
|
|
|
|
|
71
|
|
|
|
71
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total nonperforming loans and OREO
|
$
|
20,082
|
$
|
9,051
|
$
|
11,031
|
|
$
|
6,508
|
$
|
387
|
$
|
6,121
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Nonperforming loans to total loans
|
|
1.61
|
%
|
|
0.92
|
%
|
||||||||||||||
Allowance for loan losses/nonperforming loans
|
|
130
|
%
|
|
216
|
%
|
||||||||||||||
Nonperforming assets to total assets
|
|
1.03
|
%
|
|
0.61
|
%
|
||||||||||||||
Allowance for loan losses to nonperforming assets
|
|
130
|
%
|
|
213
|
%
|
September 30,
|
December 31,
|
|||||||||||||||||
2002
|
2001
|
2000
|
1999
|
1998
|
1997
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||||
Nonaccrual loans
|
$
|
10,459
|
$
|
5,466
|
$
|
12,262
|
$
|
1,758
|
$
|
1,045
|
$
|
4,721
|
||||||
Accruing loans past due 90 or more days
|
|
572
|
|
584
|
|
965
|
|
923
|
|
620
|
|
528
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total nonperforming loans
|
|
11,031
|
|
6,050
|
|
13,227
|
|
2,681
|
|
1,665
|
|
5,249
|
||||||
Other real estate owned
|
|
|
|
71
|
|
1,441
|
|
760
|
|
1,412
|
|
2,230
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total nonperforming assets
|
$
|
11,031
|
$
|
6,121
|
$
|
14,668
|
$
|
3,441
|
$
|
3,077
|
$
|
7,479
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||||||
(dollars in thousands)
|
||||||||||||||||
Balance, beginning of period
|
$
|
13,613
|
|
$
|
11,920
|
|
$
|
13,058
|
|
$
|
11,670
|
|
||||
Loan loss provision
|
|
700
|
|
|
600
|
|
|
2,000
|
|
|
3,250
|
|
||||
Loans charged off
|
|
(72
|
)
|
|
(110
|
)
|
|
(915
|
)
|
|
(2,647
|
)
|
||||
Recoveries of previously charged-off loans
|
|
141
|
|
|
27
|
|
|
239
|
|
|
164
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net credit (losses) recoveries
|
|
69
|
|
|
(83
|
)
|
|
(676
|
)
|
|
(2,483
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance, end of period
|
$
|
14,382
|
|
$
|
12,437
|
|
$
|
14,382
|
|
$
|
12,437
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Allowance for loan losses/loans outstanding
|
|
2.10
|
%
|
|
1.86
|
%
|
September 30,
|
December 31,
|
|||||||||||||||||||||||
2002
|
2001
|
2000
|
1999
|
1998
|
1997
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
Balance, beginning of period
|
$
|
13,058
|
|
$
|
11,670
|
|
$
|
11,037
|
|
$
|
8,206
|
|
$
|
6,459
|
|
$
|
6,097
|
|
||||||
Provision charged to operations
|
|
2,000
|
|
|
4,400
|
|
|
5,000
|
|
|
3,550
|
|
|
4,200
|
|
|
3,000
|
|
||||||
Loans charged off:
|
||||||||||||||||||||||||
Commercial, financial and agricultural
|
|
(651
|
)
|
|
(2,861
|
)
|
|
(4,450
|
)
|
|
(865
|
)
|
|
(1,865
|
)
|
|
(1,289
|
)
|
||||||
Consumer installment
|
|
(154
|
)
|
|
(134
|
)
|
|
(103
|
)
|
|
(148
|
)
|
|
(702
|
)
|
|
(1,551
|
)
|
||||||
Real estate mortgage
|
|
(110
|
)
|
|
(218
|
)
|
|
(152
|
)
|
|
(69
|
)
|
|
(188
|
)
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total loans charged off
|
|
(915
|
)
|
|
(3,213
|
)
|
|
(4,705
|
)
|
|
(1,082
|
)
|
|
(2,755
|
)
|
|
(2,840
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Recoveries:
|
||||||||||||||||||||||||
Commercial, financial and agricultural
|
|
139
|
|
|
92
|
|
|
281
|
|
|
327
|
|
|
164
|
|
|
85
|
|
||||||
Consumer installment
|
|
73
|
|
|
34
|
|
|
54
|
|
|
36
|
|
|
130
|
|
|
117
|
|
||||||
Real estate mortgage
|
|
27
|
|
|
75
|
|
|
3
|
|
|
0
|
|
|
8
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total recoveries
|
|
239
|
|
|
201
|
|
|
338
|
|
|
363
|
|
|
302
|
|
|
202
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net loans charged-off
|
|
(676
|
)
|
|
(3,012
|
)
|
|
(4,367
|
)
|
|
(719
|
)
|
|
(2,453
|
)
|
|
(2,638
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at end of period
|
$
|
14,382
|
|
$
|
13,058
|
|
$
|
11,670
|
|
$
|
11,037
|
|
$
|
8,206
|
|
$
|
6,459
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Average total loans
|
$
|
655,682
|
|
$
|
647,317
|
|
$
|
624,717
|
|
$
|
566,738
|
|
$
|
487,598
|
|
$
|
448,117
|
|
||||||
Ratios:
|
||||||||||||||||||||||||
Net charge-offs during period to average loans outstanding during period
|
|
0.10
|
%
|
|
0.47
|
%
|
|
0.70
|
%
|
|
0.13
|
%
|
|
0.50
|
%
|
|
0.59
|
%
|
||||||
Provision for loan losses to average loans outstanding
|
|
0.31
|
%
|
|
0.68
|
%
|
|
0.80
|
%
|
|
0.63
|
%
|
|
0.86
|
%
|
|
0.67
|
%
|
||||||
Allowance to loans at year end
|
|
2.10
|
%
|
|
1.98
|
%
|
|
1.82
|
%
|
|
1.88
|
%
|
|
1.54
|
%
|
|
1.44
|
%
|
09-30-02
|
12-31-01
|
12-31-00
|
12-31-99
|
12-31-98
|
||||||||||||||||||||||||||
Amount
|
% of loans to total loans
|
Amount
|
% of loans to total loans
|
Amount
|
% of loans to total loans
|
Amount
|
% of loans to total loans
|
Amount
|
% of loans to total loans
|
|||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||
Balance at end of period applicable to:
|
||||||||||||||||||||||||||||||
Commercial, financial and agricultural
|
$
|
7,024
|
20.8
|
%
|
$
|
6,929
|
19.8
|
%
|
$
|
6,873
|
23.1
|
%
|
$
|
5,224
|
44.7
|
%
|
$
|
3,345
|
39.8
|
%
|
||||||||||
Consumer installment
|
|
2,680
|
28.0
|
%
|
|
1,896
|
23.5
|
%
|
|
1,373
|
18.8
|
%
|
|
678
|
6.5
|
%
|
|
1,154
|
13.6
|
%
|
||||||||||
Real estate mortgage
|
|
4,199
|
45.8
|
%
|
|
3,709
|
49.6
|
%
|
|
2,925
|
52.2
|
%
|
|
3,671
|
35.2
|
%
|
|
3,153
|
39.6
|
%
|
||||||||||
Real estate construction
|
|
479
|
5.3
|
%
|
|
524
|
7.1
|
%
|
|
499
|
5.9
|
%
|
|
1,464
|
13.6
|
%
|
|
554
|
7.0
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
$
|
14,382
|
100.0
|
%
|
$
|
13,059
|
100.0
|
%
|
$
|
11,670
|
100.0
|
%
|
$
|
11,037
|
100.0
|
%
|
$
|
8,206
|
100.0
|
%
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
Amounts as of December 31,
|
|||||||||||
2002
|
2001
|
2000
|
1999
|
|||||||||
(dollars in thousands)
|
||||||||||||
Time remaining until maturity:
|
||||||||||||
Less than 3 months
|
$
|
35,732
|
$
|
38,114
|
$
|
55,721
|
$
|
52,260
|
||||
3 months to 6 months
|
|
27,313
|
|
10,431
|
|
14,002
|
|
10,906
|
||||
6 months to 12 months
|
|
6,103
|
|
15,383
|
|
18,686
|
|
7,228
|
||||
More than 12 months
|
|
17,797
|
|
6,374
|
|
4,933
|
|
3,068
|
||||
|
|
|
|
|
|
|
|
|||||
$
|
86,945
|
$
|
70,302
|
$
|
93,342
|
$
|
73,462
|
|||||
|
|
|
|
|
|
|
|
At September 30,
|
At December 31, 2001
|
Minimum Regulatory Requirement
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
||||||||||||
2002
|
2001
|
||||||||||||||
Tier I Capital
|
10.63
|
%
|
10.44
|
%
|
10.43
|
%
|
4.00
|
%
|
6.00
|
%
|
|||||
Total Capital
|
11.89
|
%
|
11.69
|
%
|
11.68
|
%
|
8.00
|
%
|
10.00
|
%
|
|||||
Leverage ratio
|
8.53
|
%
|
8.35
|
%
|
8.17
|
%
|
4.00
|
%
|
5.00
|
%
|
Nominee
|
Age
|
Positions and Offices Held with TriCo
|
Director Since
|
||||
William J. Casey
1,2
|
57
|
Chairman of the Board of Directors
|
1989
|
|
|||
Craig S. Compton
1,2
|
46
|
Director
|
1989
|
|
|||
John S. A. Hasbrook
|
43
|
Director
|
2002
|
|
|||
Michael W. Koehnen
|
42
|
Director
|
2002
|
|
|||
Wendell J. Lundberg
1,2
|
72
|
Director and Secretary of the Board
|
1974
|
*
|
|||
Donald E. Murphy
1,2
|
67
|
Vice-Chairman of the Board of Directors
|
1974
|
*
|
|||
Richard P. Smith
|
45
|
President, Chief Executive Officer and Director
|
1999
|
|
|||
Robert H. Steveson
1
|
66
|
Vice Chairman of the Board of Directors
|
1975
|
*
|
|||
Carroll R. Taresh
2
|
64
|
Director
|
1998
|
|
|||
Alex A. Vereschagin, Jr.
2
|
67
|
Director
|
1974
|
*
|
*
|
|
Includes the period of time during which the director was a director of Tri Counties Bank prior to the formation of TriCo. Robert H. Steveson was elected as a
director of TriCo in 1981 and the then remaining directors of Tri Counties Bank were elected as directors of TriCo in 1982.
|
(1)
|
|
Member of the compensation and management succession committee.
|
(2)
|
|
Member of the audit committee.
|
Name
|
Age
|
Positions and Offices Held with TriCo and/or Tri
Counties Bank |
Executive Officer Since
|
|||
Richard P. Smith
|
45
|
President and Chief Executive Officer of Tri Counties Bank and TriCo
|
1993
|
|||
Andrew Mastorakis
|
43
|
Executive Vice PresidentRetail Banking of Tri Counties Bank
|
2000
|
|||
Richard A. Miller
|
58
|
Senior Vice President and Director of Human Resources
|
2001
|
|||
Richard OSullivan
|
45
|
Executive Vice PresidentCustomer Sales & Service of Tri Counties Bank
|
1995
|
|||
Craig Carney
|
43
|
Senior Vice President and Chief Credit Officer of Tri Counties Bank
|
1997
|
|||
Thomas J. Reddish
|
43
|
Vice President and Chief Financial Officer of Tri Counties Bank and TriCo
|
1998
|
|
|
recommend the appointment of and to oversee a firm of independent public accountants whose duty is to audit the books and records of TriCo and Tri Counties
Bank;
|
|
|
monitor and analyze the results of internal audit and regulatory examinations; and
|
|
|
monitor TriCos and Tri Counties Banks financial and accounting organization and financial reporting.
|
Annual compensation
|
|||||||||||||||
Year
|
Name
|
Principal position
|
Salary (1)
|
Bonus
|
Securities underlying options
granted
(2)
|
All other
comp.
(3)
|
|||||||||
2001
|
Richard P. Smith
|
President and Chief
|
$
|
263,554
|
$
|
100,000
|
132,000
|
$
|
14,561
|
||||||
2000
|
Executive Officer of
|
|
250,000
|
|
57,000
|
30,000
|
|
13,743
|
|||||||
1999
|
TriCo and Tri Counties Bank
|
|
200,004
|
|
38,875
|
-0-
|
|
12,800
|
|||||||
2001
|
Richard OSullivan
|
Executive Vice President
|
|
175,226
|
|
16,500
|
80,000
|
|
21,618
|
||||||
2000
|
of Tri Counties Bank
|
|
165,000
|
|
30,000
|
30,000
|
|
13,747
|
|||||||
1999
|
|
150,000
|
|
29,438
|
-0-
|
|
12,682
|
||||||||
2001
|
Andrew Mastorakis
|
Executive Vice President
|
|
145,000
|
|
95,000
|
50,000
|
|
11,291
|
||||||
2000
|
of Tri Counties Bank
|
|
145,000
|
|
60,000
|
16,400
|
|
-0-
|
|||||||
2001
|
Craig Carney
|
Senior Vice President and
|
|
138,550
|
|
6,600
|
30,000
|
|
11,437
|
||||||
2000
|
Chief Credit Officer of Tri
|
|
132,000
|
|
24,000
|
12,500
|
|
10,288
|
|||||||
1999
|
Counties Bank
|
|
120,000
|
|
11,298
|
-0-
|
|
9,600
|
|||||||
2001
|
Thomas J. Reddish
|
Vice President and Chief
|
|
133,104
|
|
30,250
|
40,000
|
|
10,648
|
||||||
2000
|
Financial Officer of Tri
|
|
121,000
|
|
19,000
|
12,500
|
|
9,683
|
|||||||
1999
|
Counties Bank and TriCo
|
|
84,702
|
|
7,000
|
-0-
|
|
-0-
|
|||||||
2001
|
Robert H. Steveson
|
Former Vice-Chairman of
|
|
284,672
|
|
307,821
|
-0-
|
|
49,344
|
||||||
2000
|
Board of Directors of Tri
|
|
427,000
|
|
171,045
|
-0-
|
|
21,856
|
|||||||
1999
|
Counties Bank and TriCo
|
|
427,000
|
|
131,553
|
-0-
|
|
19,318
|
(1)
|
|
The named executive officers received other personal benefits from TriCo in the form of payments made by TriCo for premiums for health insurance, life
insurance, long-term disability insurance and dental insurance, as well as use by Messrs. Smith and OSullivan of TriCo-owned automobiles. Messrs. Steveson, Smith and OSullivan received a membership to the Butte Creek Country Club and Mr.
Carney received a membership to Canyon Oaks Country Club. The total amount of such compensation did not exceed the lesser of either $50,000 or 10% of the total of annual salary and bonus reported for each of the named executive officers.
|
(2)
|
|
All stock options listed in this section were adjusted for stock dividends.
|
(3)
|
|
All compensation under this section is comprised of two components: (a) compensation from TriCo contributions to the ESOP (the amount in a participants
account generally vests over a seven-year period);
|
and (b) interest credits on deferred compensation in 2001 pursuant to the Supplemental Retirement Plan that are considered by the SEC to be at above-market rates.
|
Individual Grants
|
Potential Realizable Value at Assumed Annual Rates of Stock Price Appreciation for
Option Term(1)
|
|||||||||||||
Name
|
Number of Securities Underlying Options Granted (#)
|
% of Total Options Granted to
2001
Employees in 2001
|
||||||||||||
Exercise Price ($)
|
Expiration
Date
|
5%($)
|
10%($)
|
|||||||||||
Richard P. Smith
|
2,000
|
(2)
|
1
|
%
|
16.10
|
05-08-11
|
62,009
|
157,142
|
||||||
100,000
|
|
33
|
%
|
16.40
|
06-12-11
|
2,779,712
|
7,044,310
|
|||||||
Richard OSullivan
|
50,000
|
|
16
|
%
|
16.40
|
06-12-11
|
1,389,856
|
3,522,155
|
||||||
Andrew Mastorakis
|
50,000
|
|
16
|
%
|
16.40
|
06-12-11
|
1,389,856
|
3,522,155
|
||||||
Craig Carney
|
30,000
|
|
10
|
%
|
16.40
|
06-12-11
|
833,914
|
2,113,293
|
||||||
Thomas J. Reddish
|
40,000
|
|
13
|
%
|
16.40
|
06-12-11
|
1,111,884
|
2,817,724
|
||||||
Robert H. Steveson
|
2,000
|
(2)
|
1
|
%
|
16.10
|
05-08-11
|
62,009
|
157,142
|
(1)
|
|
Amounts reported in these columns show hypothetical gains that may be realized upon exercise of the options assuming that market price of the TriCo stock
appreciates at the specified annual rates of appreciation, compounded annually over the terms of the options. These numbers are calculated based upon SEC rules. Actual gains, if any, depend on the future performance of the TriCo stock and overall
market conditions.
|
Number of Shares Acquired on Exercise
|
Value Realized Upon Exercise
|
Number of Securities Underlying Unexercised Options at 12-31-01(#)
|
Value of Unexercised in-the-Money Options at 12-31-01($)
|
||||||
Name
|
Exercisable/Unexercisable
|
Exercisable/Unexercisable
|
|||||||
Richard P. Smith
|
0
|
|
na
|
80,750/100,000
|
$418,790/$265,550
|
||||
Richard OSullivan
|
0
|
|
na
|
63,610/58,000
|
$294,530/$155,750
|
||||
Andrew Mastorakis
|
0
|
|
na
|
16,560/49,840
|
$44,860/$132,290
|
||||
Craig Carney
|
0
|
|
na
|
26,000/31,500
|
$102,475/$83,963
|
||||
Thomas J. Reddish
|
0
|
|
na
|
17,500/39,500
|
$38,550/$104,763
|
||||
Robert H. Steveson
|
126,000
|
$
|
1,639,500
|
0/2,000
|
0/$5,800
|
(1)
|
|
Represents the difference between the option exercise price and the closing sales price per share of TriCo stock as quoted on the Nasdaq National Market on
December 31, 2001 ($19.00 per share).
|
|
|
the financial condition of TriCo and its future prospects; whether a more favorable offer could be obtained;
|
|
|
the effects of the proposed transaction on TriCos employees, customers and the community it serves;
|
|
|
the business practices and reputation of the offeror;
|
|
|
the value of any securities being offered in exchange; and
|
|
|
the legal and regulatory issues raised by the offer.
|
|
|
advising TriCos shareholders not to accept the offer;
|
|
|
instituting litigation against the offeror;
|
|
|
filing complaints with governmental authorities;
|
|
|
having TriCo acquire its own stock;
|
|
|
selling or issuing authorized but unissued TriCo stock; or
|
|
|
obtaining an offer from another entity.
|
|
|
the ESOP;
|
|
|
each current director of TriCo;
|
|
|
each executive officer listed in the summary compensation table on page 84; and
|
|
|
all executive officers and directors of TriCo as a group.
|
Beneficial Owners
|
Common Stock Ownership Not Including
Stock Owned as a Trustee of the ESOP |
Common Stock Ownership Including Stock
Owned as a Trustee of the ESOP |
||||||||||
Amount of Shares Beneficially Owned
|
Percentage of Common Stock Outstanding
|
Amount of Shares Beneficially Owned
|
Percentage of Common Stock Outstanding
|
|||||||||
TriCo Bancshares
Employee Stock Ownership
Plan and Trust
63 Constitution Drive
Chico, CA 95973
|
565,835
|
(1)
|
8.02
|
%
|
565,835
|
(1)
|
8.02
|
%
|
||||
Craig Carney
|
36,725
|
(2)
|
*
|
|
36,725
|
(2)
|
*
|
|
||||
William J. Casey
|
312,249
|
(3)
|
4.43
|
%
|
878,084
|
(3)(14)
|
12.45
|
%
|
||||
Craig S. Compton
|
69,448
|
(4)
|
*
|
|
69,448
|
(4)
|
*
|
|
||||
Wendell J. Lundberg
|
169,117
|
(5)
|
2.40
|
%
|
734,952
|
(5)(14)
|
10.42
|
%
|
||||
Andrew Mastorakis
|
30,206
|
(6)
|
*
|
|
30,206
|
(6)
|
*
|
|
||||
Donald E. Murphy
|
189,429
|
(7)
|
2.68
|
%
|
189,429
|
(7)
|
2.68
|
%
|
||||
Richard OSullivan
|
98,601
|
(8)
|
1.40
|
%
|
98,601
|
(8)
|
1.40
|
%
|
||||
Thomas J. Reddish
|
31,966
|
(9)
|
*
|
|
31,966
|
(9)
|
*
|
|
||||
Richard P. Smith
|
114,392
|
(10)
|
1.62
|
%
|
674,763
|
(10)(14)
|
9.56
|
%
|
||||
Robert H. Steveson
|
164,968
|
(11)
|
2.34
|
%
|
164,968
|
(11)
|
2.34
|
%
|
||||
Carroll R. Taresh
|
91,495
|
(12)
|
1.30
|
%
|
91,495
|
(12)
|
1.30
|
%
|
||||
Alex A. Vereschagin, Jr.
|
66,712
|
(13)
|
*
|
|
66,712
|
(13)
|
*
|
|
||||
All directors and executive officers as a group (12 persons)
|
1,375,308
|
(15)
|
19.49
|
%
|
1,919,449
|
(14)(15)
|
27.21
|
%
|
*Less
|
|
than 1%.
|
(1)
|
|
The ESOP provides that each of its participants is entitled to direct the ESOP trustees as to the manner in which the shares allocated to the account of such
participant are to be voted. As to shares which are not allocated to participants accounts, the ESOPs advisory committee directs the ESOP trustees as to how to vote such shares. As of December 27, 2002, participants in the ESOP were
entitled to direct the voting of all 565,835 shares held by the ESOP. Of that total, 77,545 shares had been allocated to the accounts of executive officers of TriCo.
|
(2)
|
|
Includes 34,500 shares for which options are currently exercisable under TriCos stock option plans; and 2,225 shares allocated to Mr. Carneys
account in the ESOP.
|
(3)
|
|
Includes 7,250 shares for which options are currently exercisable under TriCos stock option plans and 137,647 shares held by a trust for the benefit of
Mr. Caseys sister, of which he is a trustee.
|
(4)
|
|
Includes 17,013 shares held by Mr. Compton as executor of the estate of Gerald H. Compton; 497 shares held by Mr. Comptons minor children; and 9,250
shares for which options are currently exercisable under TriCos stock option plans.
|
(5)
|
|
Includes 6,875 shares for which options are currently exercisable under TriCos stock option plans.
|
(6)
|
|
Includes 29,840 shares for which options are currently exercisable under TriCos stock option plans; and 366 shares allocated to Mr. Mastorakis
account in the ESOP.
|
(7)
|
|
Includes 3,558 shares owned by the J. H. McKnight Ranch, of which Mr. Murphy is an officer; 11,036 shares owned by J. H. McKnight Ranch Profit Sharing Plan;
144,214 shares held by Mr. Murphy and his wife as co-trustees of the Blavo Trust; and 6,500 shares for which options are currently exercisable under TriCos stock option plans.
|
(8)
|
|
Includes 73,175 shares for which options are currently exercisable under TriCos stock option plans; and 10,673 shares allocated to Mr.
OSullivans account in the ESOP.
|
(9)
|
|
Includes 28,000 shares for which options are currently exercisable under TriCos stock option plans; and 2,966 shares allocated to Mr. Reddishs
account in the ESOP.
|
(10)
|
|
Includes 78 shares held by Mr. Smiths wife; 108,750 shares for which options are currently exercisable under TriCos stock option plans; and 5,465
shares allocated to Mr. Smiths account in the ESOP.
|
(11)
|
|
Includes 2,000 shares for which options are currently exercisable under TriCos stock option plans.
|
(12)
|
|
Includes 2,000 shares for which options are currently exercisable under TriCos stock option plans; and 4,000 shares held by Mr. Tareshs wife.
|
(13)
|
|
Includes 2,000 shares for which options are currently exercisable by Mr. Vereschagin under TriCos stock option plans
|
(14)
|
|
Includes 565,835 shares held by the ESOP of which Messrs. Smith, Casey and Lundberg are trustees (77,545 shares of which have been allocated to the accounts of
executive officers under the ESOP).
|
(15)
|
|
Includes 310,140 shares for which options held by executive officers and directors are currently exercisable under TriCos stock option plans.
|
Years Ended December 31,
|
|||||||||||||||||||||||||||
2001
|
2000
|
1999
|
|||||||||||||||||||||||||
Average Balance
|
Income/ Expense
|
Yield/ Rate
|
Average Balance
|
Income/ Expense
|
Yield/ Rate
|
Average Balance
|
Income/ Expense
|
Yield/ Rate
|
|||||||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||||||||||
Assets
|
|||||||||||||||||||||||||||
Interest-earning assets:
|
|||||||||||||||||||||||||||
Federal funds sold
|
$
|
5,660
|
$
|
227
|
4.01
|
%
|
$
|
2,408
|
$
|
142
|
5.90
|
%
|
$
|
1,582
|
$
|
75
|
4.74
|
%
|
|||||||||
Investment securities
|
|
39,386
|
|
2,210
|
5.61
|
%
|
|
37,396
|
|
2,358
|
6.31
|
%
|
|
37,687
|
|
2,205
|
5.85
|
%
|
|||||||||
Gross loans
1
|
|
71,509
|
|
6,114
|
8.55
|
%
|
|
67,190
|
|
6,165
|
9.18
|
%
|
|
60,615
|
|
5,516
|
9.10
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total interest-earning assets
|
|
116,555
|
|
8,551
|
7.34
|
%
|
|
106,994
|
|
8,665
|
8.10
|
%
|
|
99,884
|
|
7,796
|
7.81
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noninterest-earning assets
|
|
7,403
|
|
8,246
|
|
8,319
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
Total assets
|
$
|
123,958
|
$
|
115,240
|
$
|
108,203
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
Liabilities and shareholders equity
|
|||||||||||||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||||||||||||
Borrowed funds
|
|
434
|
|
30
|
6.91
|
%
|
|
68
|
|
3
|
4.41
|
%
|
|||||||||||||||
Interest-bearing demand and savings deposits
|
|
55,347
|
|
1,349
|
2.44
|
%
|
|
54,044
|
|
1,903
|
3.52
|
%
|
|
52,416
|
|
1,740
|
3.32
|
%
|
|||||||||
Time certificates of deposit
|
|
37,542
|
|
1,899
|
5.06
|
%
|
|
32,919
|
|
1,870
|
5.68
|
%
|
|
29,783
|
|
1,451
|
4.87
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total interest-bearing liabilities
|
|
92,889
|
|
3,248
|
3.50
|
%
|
|
87,397
|
|
3,803
|
4.35
|
%
|
|
82,267
|
|
3,194
|
3.88
|
%
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Noninterest-bearing deposits
|
|
19,064
|
|
17,972
|
|
17,154
|
|||||||||||||||||||||
Other liabilities
|
|
543
|
|
586
|
|
503
|
|||||||||||||||||||||
Shareholders equity
|
|
11,462
|
|
9,285
|
|
8,279
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
Total liability and shareholders equity
|
$
|
123,958
|
$
|
115,240
|
$
|
108,203
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
Net interest income
|
$
|
5,303
|
$
|
4,862
|
$
|
4,602
|
|||||||||||||||||||||
|
|
|
|
|
|
||||||||||||||||||||||
Net interest margin
|
4.55
|
%
|
4.54
|
%
|
4.61
|
%
|
|||||||||||||||||||||
|
|
|
|
|
|
(1)
|
|
Includes loans on nonaccrual of $79,100, $172,900 and $205,900 for 2001, 2000 and 1999, respectively. Interest income on loans includes net loan fees amortized
to income of $68,796, $106,646 and $170,300 for 2001, 2000 and 1999, respectively.
|
2001 Compared to 2000
|
2000 Compared to 1999
|
||||||||||||||||||||||
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
||||||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||||||
Federal funds sold
|
$
|
111
|
|
$
|
(26
|
)
|
$
|
85
|
|
$
|
46
|
|
$
|
21
|
|
$
|
67
|
||||||
Investment securities
|
|
155
|
|
|
(303
|
)
|
|
(148
|
)
|
|
(28
|
)
|
|
181
|
|
|
153
|
||||||
Loans
|
|
846
|
|
|
(897
|
)
|
|
(51
|
)
|
|
600
|
|
|
49
|
|
|
649
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
1,112
|
|
|
(1,226
|
)
|
|
(114
|
)
|
|
618
|
|
|
251
|
|
|
869
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Borrowed funds
|
|
(30
|
)
|
|
|
|
|
(30
|
)
|
|
25
|
|
|
2
|
|
|
27
|
||||||
Interest-bearing demand and savings accounts
|
|
47
|
|
|
(601
|
)
|
|
(554
|
)
|
|
54
|
|
|
109
|
|
|
163
|
||||||
Time certificates
|
|
130
|
|
|
(101
|
)
|
|
29
|
|
|
163
|
|
|
256
|
|
|
419
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
$
|
147
|
|
$
|
(702
|
)
|
$
|
(555
|
)
|
$
|
242
|
|
$
|
367
|
|
$
|
609
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Increase (decrease) in net interest income
|
$
|
965
|
|
$
|
(524
|
)
|
$
|
441
|
|
$
|
376
|
|
$
|
(116
|
)
|
$
|
260
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2001
|
% Increase/ (% decrease)
|
2000
|
% Increase/ (% decrease)
|
1999
|
|||||||||||
(dollars in thousands)
|
|||||||||||||||
Service charges on deposit accounts
|
$
|
302
|
11.0
|
%
|
$
|
272
|
(4.9
|
)%
|
$
|
286
|
|||||
Service charges and fees on credit and ATM cards
|
|
62
|
1.6
|
%
|
|
61
|
29.8
|
%
|
|
47
|
|||||
Fees for merchant card services
|
|
46
|
(8.0
|
)%
|
|
50
|
(50.0
|
)%
|
|
100
|
|||||
Other income
|
|
215
|
313.5
|
%
|
|
52
|
30.0
|
%
|
|
40
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
$
|
625
|
43.7
|
%
|
$
|
435
|
(8.0
|
)%
|
$
|
473
|
|||||
|
|
|
|
|
|
|
|
|
|
2001
|
% Increase/ (% decrease)
|
2000
|
% Increase/ (% decrease)
|
1999
|
|||||||||||
(dollars in thousands)
|
|||||||||||||||
Salaries and benefits
|
$
|
1,492
|
0.4
|
%
|
$
|
1,486
|
2.8
|
%
|
$
|
1,446
|
|||||
Occupancy expense
|
|
197
|
8.8
|
%
|
|
181
|
(0.5
|
)%
|
|
182
|
|||||
Equipment expense
|
|
272
|
3.8
|
%
|
|
262
|
11.0
|
%
|
|
236
|
|||||
Professional fees
|
|
113
|
(5.8
|
)%
|
|
120
|
12.1
|
%
|
|
107
|
|||||
Stationery and supplies
|
|
50
|
4.2
|
%
|
|
48
|
(17.2
|
)%
|
|
58
|
|||||
Directors fees
|
|
79
|
19.7
|
%
|
|
66
|
(1.5
|
)%
|
|
67
|
|||||
Other expenses
|
|
541
|
8.2
|
%
|
|
500
|
(0.2
|
)%
|
|
501
|
|||||
|
|
|
|
|
|
||||||||||
Total
|
$
|
2,744
|
3.0
|
%
|
$
|
2,663
|
2.5
|
%
|
$
|
2,597
|
|||||
|
|
|
|
|
|
|
|
Available-for-sale securities, reported at fair value, with unrealized gains and losses excluded from earnings and reported, net of taxes, as other
comprehensive income (loss) within shareholders equity.
|
|
|
Held-to-maturity securities, which management has the positive intent and ability to hold, reported at amortized cost, adjusted for the accretion of discounts
and amortization of premiums.
|
Years Ended December 31,
|
|||||||||||||||||||||||||||||||||||
2001
|
Percent
|
2000
|
Percent
|
1999
|
Percent
|
1998
|
Percent
|
1997
|
Percent
|
||||||||||||||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||
Commercial/agricultural
|
$
|
21,468
|
|
29.1
|
%
|
$
|
21,634
|
|
30.6
|
%
|
$
|
23,258
|
|
35.9
|
%
|
$
|
20,345
|
|
35.8
|
%
|
$
|
19,849
|
|
40.3
|
%
|
||||||||||
Realestatemortgage
|
|
44,132
|
|
59.9
|
%
|
|
42,436
|
|
59.9
|
%
|
|
36,899
|
|
56.9
|
%
|
|
29,841
|
|
52.6
|
%
|
|
24,553
|
|
49.9
|
%
|
||||||||||
Real estateconstruction
|
|
5,392
|
|
7.3
|
%
|
|
3,771
|
|
5.3
|
%
|
|
2,350
|
|
3.6
|
%
|
|
3,915
|
|
6.9
|
%
|
|
2,484
|
|
5.0
|
%
|
||||||||||
Installment
|
|
2,686
|
|
3.7
|
%
|
|
2,983
|
|
4.2
|
%
|
|
2,291
|
|
3.6
|
%
|
|
2,683
|
|
4.7
|
%
|
|
2,366
|
|
4.8
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total loans
|
|
73,678
|
|
100.0
|
%
|
|
70,824
|
|
100.0
|
%
|
|
64,798
|
|
100.0
|
%
|
|
56,784
|
|
100.0
|
%
|
|
49,252
|
|
100.0
|
%
|
||||||||||
Reserve for loan losses
|
|
(985
|
)
|
|
(818
|
)
|
|
(970
|
)
|
|
(849
|
)
|
|
(834
|
)
|
||||||||||||||||||||
Deferred loan fees
|
|
(131
|
)
|
|
(92
|
)
|
|
(59
|
)
|
|
(114
|
)
|
|
(142
|
)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total net loans
|
$
|
72,562
|
|
$
|
69,914
|
|
$
|
63,769
|
|
$
|
55,821
|
|
$
|
48,276
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2001
|
2000
|
1999
|
1998
|
1997
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Balance, beginning of year
|
$
|
818
|
|
$
|
970
|
|
$
|
849
|
|
$
|
834
|
|
$
|
697
|
|
|||||
Provision charged to expense
|
|
169
|
|
|
|
|
|
145
|
|
|
|
|
|
37
|
|
|||||
Charge-offs:
|
||||||||||||||||||||
Commercial
|
|
|
|
|
(199
|
)
|
|
(14
|
)
|
|
(5
|
)
|
|
(15
|
)
|
|||||
Real estate
|
|
|
|
|
|
|
|
(23
|
)
|
|
|
|
|
|
|
|||||
Installment
|
|
(6
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
(13
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total charge-offs
|
|
(6
|
)
|
|
(200
|
)
|
|
(38
|
)
|
|
(11
|
)
|
|
(28
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Recoveries:
|
||||||||||||||||||||
Commercial
|
|
|
|
|
9
|
|
|
7
|
|
|
25
|
|
|
127
|
|
|||||
Real estate
|
|
3
|
|
|
3
|
|
|
7
|
|
|
|
|
|
|
|
|||||
Installment
|
|
1
|
|
|
36
|
|
|
|
|
|
1
|
|
|
1
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total recoveries
|
|
4
|
|
|
48
|
|
|
14
|
|
|
26
|
|
|
128
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net (charge-offs) recoveries
|
|
(2
|
)
|
|
(152
|
)
|
|
(24
|
)
|
|
15
|
|
|
100
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, end of year
|
$
|
985
|
|
$
|
818
|
|
$
|
970
|
|
$
|
849
|
|
$
|
834
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reserve as percentage of gross loans outstanding
|
|
1.3
|
%
|
|
1.2
|
%
|
|
1.5
|
%
|
|
1.5
|
%
|
|
1.7
|
%
|
2001
|
Percent
|
2000
|
Percent
|
1999
|
Percent
|
1998
|
Percent
|
1997
|
Percent
|
|||||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||||||||
Noninterest-bearing demand
|
$
|
23,274
|
20.0
|
%
|
$
|
19,079
|
18.1
|
%
|
$
|
18,682
|
17.8
|
%
|
$
|
18,783
|
19.6
|
%
|
$
|
17,746
|
21.5
|
%
|
||||||||||
Interest-bearing:
|
||||||||||||||||||||||||||||||
Savings
|
|
4,649
|
4.0
|
%
|
|
4,085
|
3.9
|
%
|
|
4,956
|
4.7
|
%
|
|
5,957
|
6.2
|
%
|
|
5,520
|
6.7
|
%
|
||||||||||
Money market
|
|
33,459
|
28.8
|
%
|
|
29,475
|
28.0
|
%
|
|
30,114
|
28.8
|
%
|
|
26,029
|
27.1
|
%
|
|
18,734
|
22.7
|
%
|
||||||||||
NOW accounts
|
|
17,695
|
15.2
|
%
|
|
16,507
|
15.6
|
%
|
|
16,587
|
15.8
|
%
|
|
15,407
|
16.1
|
%
|
|
15,283
|
18.6
|
%
|
||||||||||
Time, less than $100,000
|
|
15,125
|
13.0
|
%
|
|
14,665
|
13.9
|
%
|
|
14,931
|
14.3
|
%
|
|
15,040
|
15.7
|
%
|
|
13,952
|
16.9
|
%
|
||||||||||
Time, $100,000 or more
|
|
21,967
|
19.0
|
%
|
|
21,585
|
20.5
|
%
|
|
19,509
|
18.6
|
%
|
|
14,668
|
15.3
|
%
|
|
11,189
|
13.6
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-bearing
|
|
92,895
|
80.0
|
%
|
|
86,317
|
81.9
|
%
|
|
86,097
|
82.2
|
%
|
|
77,101
|
80.4
|
%
|
|
64,678
|
78.5
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total deposits
|
$
|
116,169
|
100.0
|
%
|
$
|
105,396
|
100.0
|
%
|
$
|
104,779
|
100.0
|
%
|
$
|
95,884
|
100.0
|
%
|
$
|
82,424
|
100.0
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Next Day to 3 Months
|
Over 3 Months Through 12 Months
|
One Year Through 5 Years
|
Over 5 Years
|
Total
|
|||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||
Assets
|
|||||||||||||||||||
Federal funds sold
|
$
|
3,302
|
|
$
|
3,302
|
||||||||||||||
Interest-bearing deposits
|
|
5,430
|
|
|
5,430
|
||||||||||||||
Investment securities
|
|
9,355
|
|
$
|
8,925
|
|
$
|
15,142
|
|
$
|
5,660
|
|
|
39,082
|
|||||
Loans
|
|
24,585
|
|
|
546
|
|
|
9,992
|
|
|
38,554
|
|
|
73,677
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest-earning assets
|
|
42,672
|
|
|
9,471
|
|
|
25,134
|
|
|
44,214
|
|
|
121,491
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|||||||||||||||||||
NOW accounts
|
|
17,695
|
|
|
17,695
|
||||||||||||||
Savings
|
|
4,649
|
|
|
4,649
|
||||||||||||||
Money market accounts
|
|
33,459
|
|
|
33,459
|
||||||||||||||
Time under $100,000
|
|
5,958
|
|
|
8,200
|
|
|
967
|
|
|
15,125
|
||||||||
Time $100,000 and over
|
|
11,568
|
|
|
9,655
|
|
|
744
|
|
|
21,967
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total interest-bearing liabilities
|
|
73,329
|
|
|
17,855
|
|
|
1,711
|
|
|
92,895
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Net interest-earning (bearing) assets (liabilities)
|
$
|
(30,657
|
)
|
$
|
(8,384
|
)
|
$
|
23,423
|
|
$
|
44,214
|
|
$
|
28,596
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cumulative net interest-earning (bearing) assets (liabilities) (GAP)
|
$
|
(30,657
|
)
|
$
|
(39,041
|
)
|
$
|
(15,618
|
)
|
$
|
28,596
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cumulative GAP as percent of total interest-earning assets
|
|
-25.23
|
%
|
|
-32.13
|
%
|
|
-12.86
|
%
|
|
23.54
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
2002
|
2003
|
2004
|
2005
|
2006
|
There-after
|
Total
|
Fair Value
|
||||||||||||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||||||||||||||
Federal funds sold
|
$
|
3,302
|
|
$
|
3,302
|
|
$
|
3,302
|
|||||||||||||||||||||||
Weighted average rate
|
|
1.71
|
%
|
|
1.71
|
%
|
|||||||||||||||||||||||||
Interest-bearing deposits
|
|
5,430
|
|
|
5,430
|
|
|
5,430
|
|||||||||||||||||||||||
Weighted average rate
|
|
1.79
|
%
|
|
1.79
|
%
|
|||||||||||||||||||||||||
Investment securities
|
|
18,280
|
|
$
|
7,077
|
|
$
|
4,833
|
|
$
|
500
|
|
$
|
3,232
|
|
$
|
5,160
|
|
|
39,082
|
|
|
39,116
|
||||||||
Weighted average rate
|
|
5.33
|
%
|
|
4.95
|
%
|
|
5.62
|
%
|
|
4.03
|
%
|
|
5.23
|
%
|
|
5.79
|
%
|
|
5.36
|
%
|
||||||||||
Fixed rate loans
|
|
3,167
|
|
|
1,891
|
|
|
2,976
|
|
|
1,803
|
|
|
3,322
|
|
|
38,560
|
|
|
51,719
|
|
|
53,446
|
||||||||
Weighted average rate
|
|
7.78
|
%
|
|
7.83
|
%
|
|
9.18
|
%
|
|
8.32
|
%
|
|
8.72
|
%
|
|
7.94
|
%
|
|
8.07
|
%
|
||||||||||
Variable rate loans
1
|
|
14,615
|
|
|
1,278
|
|
|
885
|
|
|
838
|
|
|
483
|
|
|
3,859
|
|
|
21,958
|
|
|
21,971
|
||||||||
Weighted average rate
|
|
6.65
|
%
|
|
7.66
|
%
|
|
6.83
|
%
|
|
7.09
|
%
|
|
7.73
|
%
|
|
7.19
|
%
|
|
6.85
|
%
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total interest-earning assets
|
|
44,794
|
|
|
10,246
|
|
|
8,694
|
|
|
3,141
|
|
|
7,037
|
|
|
47,579
|
|
|
121,491
|
|
|
123,265
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Savings deposits
2
|
|
13,857
|
|
|
41,946
|
|
|
55,803
|
|
|
55,803
|
||||||||||||||||||||
Weighted average rate
|
|
1.46
|
%
|
|
1.46
|
%
|
|
1.46
|
%
|
||||||||||||||||||||||
Time deposits
|
|
35,382
|
|
|
1,344
|
|
|
103
|
|
|
252
|
|
|
11
|
|
|
37,092
|
|
|
37,405
|
|||||||||||
Weighted average rate
|
|
3.72
|
%
|
|
5.56
|
%
|
|
3.91
|
%
|
|
5.79
|
%
|
|
9.09
|
%
|
|
3.80
|
%
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total interest-bearing liabilities
|
$
|
49,239
|
|
$
|
1,344
|
|
$
|
103
|
|
$
|
252
|
|
$
|
11
|
|
$
|
41,946
|
|
$
|
92,895
|
|
$
|
93,208
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Of the total variable rate loans, 100% reprice in one year or less.
|
(2)
|
|
Savings deposits include interest-bearing transaction accounts.
|
September 30, 2002
|
December 31, 2001
|
|||||
Return on assets
|
||||||
(annualized net income divided by average assets)
|
1.48
|
%
|
1.44
|
%
|
||
Return on equity
|
||||||
(annualized net income divided by average equity)
|
15.86
|
%
|
15.60
|
%
|
||
Divided payout
|
||||||
(dividends per share divided by annualized net income per share)
|
23.81
|
%
|
23.80
|
%
|
||
Equity to assets
|
||||||
(average equity divided by average assets)
|
9.33
|
%
|
9.25
|
%
|
Nine Months Ended September 30,
|
||||||||||||||||||||
2002
|
2001
|
|||||||||||||||||||
Average Balance
1
|
Income/ Expense
|
Yield/ Rate
2
|
Average Balance
1
|
Income/ Expense
|
Yield/ Rate
2
|
|||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||
Federal funds sold and other
|
$
|
8,136
|
|
$
|
115
|
1.89
|
%
|
$
|
6,654
|
|
$
|
230
|
4.62
|
%
|
||||||
Investment securities
|
|
50,813
|
|
|
1,630
|
4.29
|
%
|
|
37,287
|
|
|
1,633
|
5.86
|
%
|
||||||
Gross loans
3
|
|
72,443
|
|
|
4,174
|
7.70
|
%
|
|
71,284
|
|
|
4,646
|
8.71
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total interest-earning assets
|
|
131,392
|
|
|
5,919
|
6.02
|
%
|
|
115,225
|
|
|
6,509
|
7.55
|
%
|
||||||
|
|
|
|
|||||||||||||||||
Cash and due from banks
|
|
6,058
|
|
|
5,334
|
|
||||||||||||||
Premises and equipment
|
|
1,409
|
|
|
1,550
|
|
||||||||||||||
Other assets, net
|
|
1,165
|
|
|
1,397
|
|
||||||||||||||
Less: allowance for loan loss
|
|
(968
|
)
|
|
(845
|
)
|
||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total noninterest-earning assets
|
|
7,664
|
|
|
7,436
|
|
||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total assets
|
$
|
139,056
|
|
$
|
122,661
|
|
||||||||||||||
|
|
|
|
|
|
Liabilities and shareholders equity
|
||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||
Interest-bearing demand and savings deposits
|
|
67,709
|
|
757
|
1.49
|
%
|
|
55,097
|
|
1,122
|
2.72
|
%
|
||||||
Time certificates of deposit
|
|
35,809
|
|
793
|
2.96
|
%
|
|
37,462
|
|
1,505
|
5.37
|
%
|
||||||
|
|
|
|
|
|
|
|
|||||||||||
Total interest-bearing liabilities
|
|
103,518
|
|
1,550
|
2.00
|
%
|
|
92,559
|
|
2,627
|
3.79
|
%
|
||||||
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits
|
|
22,053
|
|
18,346
|
||||||||||||||
Other liabilities
|
|
507
|
|
565
|
||||||||||||||
Shareholders equity
|
|
12,978
|
|
11,191
|
||||||||||||||
|
|
|
|
|||||||||||||||
Total liability and shareholders equity
|
$
|
139,056
|
$
|
122,661
|
||||||||||||||
|
|
|
|
|||||||||||||||
Net interest rate spread
4
|
4.02
|
%
|
3.76
|
%
|
||||||||||||||
|
|
|
|
|||||||||||||||
Net interest income
|
$
|
4,369
|
$
|
3,882
|
||||||||||||||
|
|
|
|
|||||||||||||||
Net interest margin
5
|
4.45
|
%
|
4.50
|
%
|
||||||||||||||
|
|
|
|
(1)
|
|
Average balances are computed principally on the basis of daily balances.
|
(2)
|
|
Yield/Rates are annualized.
|
(3)
|
|
Includes loans on nonaccrual of $3 and $106 for 2002 and 2001, respectively. Interest income on loans includes net loan fees amortized to income of $94 and $45
for 2002 and 2001, respectively (all in thousands).
|
(4)
|
|
Net interest rate spread represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
|
(5)
|
|
Net interest margin is computed by dividing net interest income by total average earning assets.
|
Three Months Ended September 30,
|
||||||||||||||||||||
2002
|
2001
|
|||||||||||||||||||
Average Balance
1
|
Income/ Expense
|
Yield/ Rate
2
|
Average Balance
1
|
Income/ Expense
|
Yield/ Rate
2
|
|||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||
Federal funds sold and other
|
$
|
8,129
|
|
$
|
39
|
1.90
|
%
|
$
|
6,435
|
|
$
|
62
|
3.82
|
%
|
||||||
Investment securities
|
|
54,148
|
|
|
542
|
3.97
|
%
|
|
38,225
|
|
|
547
|
5.68
|
%
|
||||||
Gross loans
3
|
|
74,454
|
|
|
1,424
|
7.59
|
%
|
|
72,845
|
|
|
1,543
|
8.40
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total interest-earning assets
|
|
136,731
|
|
|
2,005
|
5.82
|
%
|
|
117,505
|
|
|
2,152
|
7.27
|
%
|
||||||
|
|
|
|
|||||||||||||||||
Cash and due from banks
|
|
5,505
|
|
|
5,643
|
|
||||||||||||||
Premises and equipment
|
|
1,425
|
|
|
1,513
|
|
||||||||||||||
Other assets, net
|
|
1,132
|
|
|
1,508
|
|
||||||||||||||
Less: allowance for loan loss
|
|
(935
|
)
|
|
(894
|
)
|
||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total noninterest-earning assets
|
|
7,127
|
|
|
7,770
|
|
||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total assets
|
$
|
143,858
|
|
$
|
125,275
|
|
||||||||||||||
|
|
|
|
|
|
Liabilities and shareholders equity
|
||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||
Interest-bearing demand and savings deposits
|
|
72,471
|
|
274
|
1.50
|
%
|
|
56,164
|
|
314
|
2.22
|
%
|
||||||
Time certificates of deposit
|
|
35,260
|
|
242
|
2.72
|
%
|
|
38,293
|
|
467
|
4.84
|
%
|
||||||
|
|
|
|
|
|
|
|
|||||||||||
Total interest-bearing liabilities
|
|
107,731
|
|
516
|
1.90
|
%
|
|
94,457
|
|
781
|
3.28
|
%
|
||||||
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits
|
|
22,132
|
|
18,752
|
||||||||||||||
Other liabilities
|
|
627
|
|
505
|
||||||||||||||
Shareholders equity
|
|
13,368
|
|
11,561
|
||||||||||||||
|
|
|
|
|||||||||||||||
Total liability and shareholders equity
|
$
|
143,858
|
$
|
125,275
|
||||||||||||||
|
|
|
|
|||||||||||||||
Net interest rate spread
4
|
3.92
|
%
|
3.99
|
%
|
||||||||||||||
|
|
|
|
|||||||||||||||
Net interest income
|
$
|
1,489
|
$
|
1,371
|
||||||||||||||
|
|
|
|
|||||||||||||||
Net interest margin
5
|
4.32
|
%
|
4.63
|
%
|
||||||||||||||
|
|
|
|
(1)
|
|
Average balances are computed principally on the basis of daily balances.
|
(2)
|
|
Yield/Rates are annualized.
|
(3)
|
|
Includes loans on nonaccrual of $7 for 2002. Interest income on loans includes net loan fees amortized to income of $37 and $19 for 1992 and 2001, respectively
(all dollars in thousands).
|
(4)
|
|
Net interest rate spread represents the average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities.
|
(5)
|
|
Net interest margin is computed by dividing net interest income by total average earning assets.
|
For the Nine Months Ended September 30, 2002 Compared to 2001
|
||||||||||||
Volume
|
Yield/Rate
|
Total
|
||||||||||
(dollars in thousands)
|
||||||||||||
Federal funds sold
|
$
|
69
|
|
$
|
(184
|
)
|
$
|
(115
|
)
|
|||
Investment securities
|
|
(11
|
)
|
|
8
|
|
|
(3
|
)
|
|||
Loans
1,2
|
|
77
|
|
|
(549
|
)
|
|
(472
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total
|
|
135
|
|
|
(725
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||
Interest-bearing demand and savings accounts
|
|
377
|
|
|
(743
|
)
|
|
(366
|
)
|
|||
Time certificates
|
|
(63
|
)
|
|
(648
|
)
|
|
(711
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total
|
|
314
|
|
|
(1,391
|
)
|
|
(1,077
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
(Decrease)/increase in net interest income
|
$
|
(179
|
)
|
$
|
666
|
|
$
|
487
|
|
|||
|
|
|
|
|
|
|
|
|
(1)
|
|
Nonaccrual loans are included.
|
(2)
|
|
Interest income on loans includes net loan fees amortized to income of $94 and $45 for 2002 and 2001, respectively (in thousands).
|
For the Three Months Ended September 30, 2002 Compared to 2001
|
||||||||||||
Volume
|
Yield/Rate
|
Total
|
||||||||||
(dollars in thousands)
|
||||||||||||
Federal funds sold
|
$
|
25
|
|
$
|
(48
|
)
|
$
|
(23
|
)
|
|||
Investment securities
|
|
(14
|
)
|
|
10
|
|
|
(4
|
)
|
|||
Loans
1,2
|
|
35
|
|
|
(154
|
)
|
|
(119
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total
|
|
46
|
|
|
(192
|
)
|
|
(146
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Interest-bearing demand and savings accounts
|
|
340
|
|
|
(379
|
)
|
|
(39
|
)
|
|||
Time certificates
|
|
(35
|
)
|
|
(190
|
)
|
|
(225
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total
|
|
305
|
|
|
(569
|
)
|
|
(264
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
(Decrease)/increase in net interest income
|
$
|
(259
|
)
|
$
|
377
|
|
$
|
118
|
|
|||
|
|
|
|
|
|
|
|
|
(1)
|
|
Nonaccrual loans are included.
|
(2)
|
|
Interest income on loans includes net loan fees amortized to income of $37 and $19 for 2002 and 2001, respectively (in thousands).
|
September 30, 2002
|
December 31, 2001
|
|||||||
(dollars in thousands)
|
||||||||
Commercial/agricultural loans
|
$
|
21,782
|
|
$
|
21,331
|
|
||
Real estate construction loans
|
|
4,838
|
|
|
5,392
|
|
||
Real estate mortgage loans
|
|
49,813
|
|
|
45,784
|
|
||
Installment loans
|
|
1,024
|
|
|
1,171
|
|
||
|
|
|
|
|
|
|||
Total gross loans
|
|
77,457
|
|
|
73,678
|
|
||
Deferred loan fees
|
|
(182
|
)
|
|
(131
|
)
|
||
Allowance for loan losses
|
|
(932
|
)
|
|
(985
|
)
|
||
|
|
|
|
|
|
|||
Total net loans
|
$
|
76,343
|
|
$
|
72,562
|
|
||
|
|
|
|
|
|
In One Year or Less
|
After One Year Through Five Years
|
After Five Years
|
Total
|
|||||||||
(dollars in thousands)
|
||||||||||||
Commercial/agricultural
|
$
|
11,497
|
$
|
6,621
|
$
|
3,649
|
$
|
21,767
|
||||
Real estate construction loans
|
|
3,760
|
|
|
|
1,078
|
|
4,838
|
||||
Real estate mortgage loans
|
|
2,730
|
|
5,843
|
|
41,073
|
|
49,646
|
||||
Installment loans
|
|
690
|
|
307
|
|
27
|
|
1,024
|
||||
|
|
|
|
|
|
|
|
|||||
Total
|
$
|
18,677
|
$
|
12,771
|
$
|
45,827
|
$
|
77,275
|
||||
|
|
|
|
|
|
|
|
|||||
Loans with fixed interest rates
|
|
4,053
|
|
7,823
|
|
41,606
|
|
53,482
|
||||
Loans with floating interest rates
|
|
14,624
|
|
4,948
|
|
4,221
|
|
23,793
|
||||
|
|
|
|
|
|
|
|
|||||
Total
|
$
|
18,677
|
$
|
12,771
|
$
|
45,827
|
$
|
77,275
|
||||
|
|
|
|
|
|
|
|
Three Months Ended
|
||||||||
September 30, 2002
|
September 30, 2001
|
|||||||
(dollars in thousands)
|
||||||||
Beginning allowance at July 1, 2002 and 2001, respectively
|
$
|
934
|
|
$
|
886
|
|
||
Provision for loan losses
|
|
|
|
|
24
|
|
||
Losses charged to the allowance
|
|
(7
|
)
|
|
(1
|
)
|
||
Recoveries of amounts charged off
|
|
5
|
|
|
1
|
|
||
|
|
|
|
|
|
|||
Ending allowance
|
$
|
932
|
|
$
|
910
|
|
||
|
|
|
|
|
|
|||
Net charge-offs to average loans
|
|
0.003
|
%
|
|
0.000
|
%
|
||
|
|
|
|
|
|
Nine Months Ended
|
Year Ended
|
|||||||||||
September 30, 2002
|
September 30, 2001
|
December 31, 2001
|
||||||||||
(dollars in thousands)
|
||||||||||||
Beginning allowance at July 1, 2002 and 2001, respectively
|
$
|
985
|
|
$
|
818
|
|
$
|
818
|
|
|||
Provision for loan losses
|
|
90
|
|
|
169
|
|
||||||
Losses charged to the allowance
|
|
(71
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|||
Recoveries of amounts charged off
|
|
18
|
|
|
3
|
|
|
4
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Ending allowance
|
|
932
|
|
|
910
|
|
|
985
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Ending loan portfolio (before allowance for loan losses)
|
$
|
77,275
|
|
$
|
72,948
|
|
$
|
73,547
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Net charge-offs/(recoveries) to average loans
|
|
0.07
|
%
|
|
(0.003
|
%)
|
|
0.003
|
%
|
|||
Ending allowance as a percentage of loan portfolio
|
|
1.21
|
%
|
|
1.25
|
%
|
|
1.33
|
%
|
|||
|
|
|
|
|
|
|
|
|
September 30, 2002
|
||||||
Amount
|
Percent of Loans to Total
|
|||||
(dollars in thousands)
|
||||||
Balance at end of period allocated to:
|
||||||
Commercial and agricultural loans
|
$
|
461,111
|
28.12
|
%
|
||
Real estate construction loans
|
|
77,377
|
6.25
|
%
|
||
Real estate mortgage loans
|
|
372,535
|
64.31
|
%
|
||
Installment loans
|
|
21,083
|
1.32
|
%
|
||
|
|
|
|
|||
Total allowance for loan loss
|
$
|
932,106
|
100.00
|
%
|
||
|
|
|
|
Book Values as of
|
|||||||||
September 30, 2002
|
December 31, 2001
|
December 31, 2000
|
|||||||
(dollars in thousands)
|
|||||||||
Securities of the U.S. Treasury and government agencies
|
$
|
42,326
|
$
|
37,275
|
$
|
34,447
|
|||
Municipal securities
|
|
1,257
|
|
1,273
|
|
1,434
|
|||
Other securities
|
|
7,994
|
|
|
|
|
|||
|
|
|
|
|
|
||||
Total
|
$
|
51,577
|
$
|
38,548
|
$
|
35,881
|
|||
|
|
|
|
|
|
In One Year or Less Amount
|
Yield
|
After One through Five Years Amount
|
Yield
|
After Five through Ten Years Amount
|
Yield
|
After Ten Years Amount
|
Yield
|
Amount
|
Total Yield
|
|||||||||||||||||||||
Securities of U.S. Treasury and government agencies
|
$
|
510
|
5.76
|
%
|
$
|
26,298
|
4.39
|
%
|
$
|
6,170
|
6.01
|
%
|
$
|
9,348
|
6.13
|
%
|
$
|
42,326
|
5.01
|
%
|
||||||||||
Municipal securities
1
|
|
20
|
4.70
|
%
|
|
632
|
4.47
|
%
|
|
305
|
5.10
|
%
|
|
300
|
5.30
|
%
|
|
1,257
|
4.83
|
%
|
||||||||||
Other
|
|
7,994
|
1.75
|
%
|
|
|
|
|
|
|
|
7,994
|
1.75
|
%
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$
|
8,524
|
2.00
|
%
|
$
|
26,930
|
4.39
|
%
|
$
|
6,475
|
5.97
|
%
|
$
|
9,648
|
$
|
51,577
|
4.50
|
%
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Yields shown are not computed on a tax equivalent basis.
|
September 30, 2002
|
December 31, 2001
|
|||||
Leverage ratio
|
9.2
|
%
|
9.5
|
%
|
||
Minimum requirement for Well-Capitalized institution
|
5.0
|
%
|
5.0
|
%
|
||
Minimum regulatory requirement
|
4.0
|
%
|
4.0
|
%
|
||
Tier 1 Risk-Based Capital Ratio
|
14.5
|
%
|
15.0
|
%
|
||
Minimum requirement for Well-Capitalized institution
|
6.0
|
%
|
6.0
|
%
|
||
Minimum regulatory requirement
|
4.0
|
%
|
4.0
|
%
|
||
Total Risk-Based Capital Ratio
|
15.5
|
%
|
16.2
|
%
|
||
Minimum requirement for Well-Capitalized institution
|
10.0
|
%
|
10.0
|
%
|
||
Minimum regulatory requirement
|
8.0
|
%
|
8.0
|
%
|
September 30, 2002
|
|||||||||||||||||||
Next Day to 3 Months
|
Over 3 Months Through 12 Months
|
One Year Through 5 Years
|
Over 5 Years
|
Total
|
|||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||
Assets
|
|||||||||||||||||||
Federal funds sold
|
$
|
3,424
|
|
$
|
3,424
|
||||||||||||||
Interest-bearing deposits
|
|
681
|
|
|
681
|
||||||||||||||
Investment securities
|
|
8,436
|
|
|
22,669
|
|
|
16,621
|
|
|
4,402
|
|
|
52,128
|
|||||
Loans
|
|
25,407
|
|
|
2,439
|
|
|
7,823
|
|
|
41,606
|
|
|
77,275
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest-earning assets
|
|
37,948
|
|
|
25,108
|
|
|
24,444
|
|
|
46,008
|
|
|
133,508
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Liabilities
|
|||||||||||||||||||
NOW accounts
|
|
17,613
|
|
|
17,613
|
||||||||||||||
Savings
|
|
4,732
|
|
|
4,732
|
||||||||||||||
Money market accounts
|
|
47,757
|
|
|
47,757
|
||||||||||||||
Time under $100,000
|
|
4,693
|
|
|
6,757
|
|
|
1,344
|
|
|
12,794
|
||||||||
Time $100,000 and over
|
|
4,580
|
|
|
13,866
|
|
|
3,645
|
|
|
22,091
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total interest-bearing liabilities
|
|
79,375
|
|
|
20,623
|
|
|
|
|
|
4,989
|
|
|
104,987
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net interest-earning assets (liabilities)
|
$
|
(41,427
|
)
|
$
|
4,485
|
|
$
|
24,444
|
|
$
|
41,019
|
|
$
|
28,521
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cumulative net interest-earning assets (liabilities) (GAP)
|
$
|
(41,427
|
)
|
$
|
(36,942
|
)
|
$
|
(12,498
|
)
|
$
|
28,521
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cumulative GAP as percent of total interest-earning assets
|
|
-31.03
|
%
|
|
-27.67
|
%
|
|
-9.36
|
%
|
|
21.36
|
%
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2002
|
December 31, 2001
|
|||||||||||
(dollars in thousands)
|
||||||||||||
Three months or less
|
$
|
4,580
|
21
|
%
|
$
|
11,568
|
53
|
%
|
||||
Over 3 through 6 months
|
|
12,709
|
58
|
%
|
|
6,902
|
31
|
%
|
||||
Over 6 through 12 months
|
|
1,157
|
5
|
%
|
|
2,753
|
13
|
%
|
||||
Over 12 months
|
|
3,645
|
16
|
%
|
|
744
|
3
|
%
|
||||
|
|
|
|
|
|
|
|
|||||
Total
|
$
|
22,091
|
100
|
%
|
$
|
21,967
|
100
|
%
|
Beneficial Owner
|
Amount and
Nature of Beneficial
Ownership
|
Percent of Class(1)
|
||||
Directors
|
||||||
Robert M. Foster
|
38,882
|
(2)
|
3.2
|
%
|
||
W. Howard Isom
|
23,078
|
(3)
|
1.9
|
%
|
||
Dennis J. Lindo
|
6,418
|
(4)
|
less than 1
|
%
|
||
John A. Lucchesi
|
78,887
|
(5)
|
6.2
|
%
|
||
Sylvester Lucena
|
28,465
|
(6)
|
2.3
|
%
|
||
Thomas B. Martin
|
11,119
|
(7)
|
less than 1
|
%
|
||
Steve G. Nettleton
|
221,748
|
(8)
|
18.1
|
%
|
||
John A. Powell
|
16,627
|
(9)
|
1.4
|
%
|
||
All directors and officers as a group (10 in all)
|
426,694
|
|
32.7
|
%
|
||
5% Holders
|
||||||
John B. Wilson
|
64,691
|
(10)
|
5.3
|
%
|
(1)
|
|
Includes shares subject to options held by directors and executive officers that were exercisable within 60 days of December 31, 2002. These are treated as
issued and outstanding for the purpose of computing the percentage of directors and officers as a group, but not for the purpose of computing the percentage of class owned by any other person.
|
(2)
|
|
Mr. Foster has 1,100 shares acquirable by exercise of stock options.
|
(3)
|
|
Mr. Isom has shared voting and investment powers as to all of these shares and 1,100 shares acquirable by exercise of stock options. Mr. Isom retired from the
board on January 4, 2003.
|
(4)
|
|
Mr. Lindo has 1,100 shares acquirable by exercise of stock options.
|
(5)
|
|
Mr. Lucchesi has 54,025 shares acquirable by exercise of stock options.
|
(6)
|
|
Mr. Lucena has shared voting and investment powers as to 26,832 shares and 1,100 shares acquirable by exercise of stock options.
|
(7)
|
|
Mr. Martin has shared voting and investment powers as to 10,019 shares and 1,100 shares acquirable by exercise of stock options.
|
(8)
|
|
Mr. Nettleton has shared voting and investment powers as to all these shares and 1,100 shares acquirable by exercise of stock options.
|
(9)
|
|
Mr. Powell has no voting and investment powers as to 2,134 shares and 1,100 shares acquirable by exercise of stock options.
|
(10)
|
|
Mr. Wilson has shared voting and investment powers as to 9,339 shares and 1,100 shares acquirable by exercise of stock options.
|
2003
|
2002
|
2001
|
||||||||||||||||||
High
|
Low
|
High
|
Low
|
High
|
Low
|
|||||||||||||||
First quarter
|
$
|
25.49
|
*
|
$
|
24.82
|
*
|
$
|
21.48
|
$
|
18.05
|
$
|
16.63
|
$
|
14.88
|
||||||
Second quarter
|
|
|
|
|
|
|
|
27.64
|
|
20.94
|
|
17.33
|
|
14.81
|
||||||
Third quarter
|
|
|
|
|
|
|
|
27.57
|
|
20.33
|
|
19.80
|
|
16.75
|
||||||
Fourth quarter
|
|
|
|
|
|
|
|
25.45
|
|
21.67
|
|
19.74
|
|
17.93
|
2003
|
2002
|
2001
|
||||||||
First quarter
|
$
|
0
|
*
|
$
|
0.20
|
$
|
0.20
|
|||
Second quarter
|
|
|
|
|
0.20
|
|
0.20
|
|||
Third quarter
|
|
|
|
|
0.20
|
|
0.20
|
|||
Fourth quarter
|
|
|
|
|
0.20
|
|
0.20
|
Plan category
|
# of securities to be issued upon exercise of outstanding options, warrants and rights (a)
|
Weighted average exercise price of outstanding options, warrants and rights (b)
|
# of securities remaining
available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) |
||||
Equity compensation plans approved by securities holders
|
627,400
|
$
|
15.92
|
475,825
|
|||
Equity compensation plans not approved by security holders
|
0
|
|
|
0
|
2003
|
2002
|
2001
|
|||||||||||||||||
High
|
Low
|
High
|
Low
|
High
|
Low
|
||||||||||||||
First quarter
|
$
|
25.60
|
*
|
$
|
23.90
|
*
|
$
|
18.00
|
$
|
13.75
|
$
|
13.63
|
13.00
|
||||||
Second quarter
|
|
|
|
|
|
|
|
20.00
|
|
16.25
|
|
13.63
|
13.00
|
||||||
Third quarter
|
|
|
|
|
|
|
|
22.50
|
|
19.05
|
|
14.00
|
13.20
|
||||||
Fourth quarter
|
|
|
|
|
|
|
|
23.35
|
|
22.25
|
|
13.90
|
13.35
|
2003
|
2002
|
2001
|
||||||
First quarter
|
|
|
|
|
|
|||
Second quarter
|
|
$
|
0.40
|
$
|
0.35
|
|||
Third quarter
|
|
|
|
|
|
|||
Fourth quarter
|
|
|
|
|
|
|
|
internal controls, information systems and internal audit systems;
|
|
|
loan documentation;
|
|
|
credit underwriting;
|
|
|
interest rate exposure;
|
|
|
asset growth;
|
|
|
compensation, fees and benefits;
|
|
|
asset quality, earnings and stock valuation; and
|
|
|
excessive compensation for executive officers, directors or principal shareholders which could lead to material financial loss.
|
|
|
Due diligence requirements for financial institutions that administer, maintain, or manage private bank accounts or correspondent accounts for non-U.S. persons;
|
|
|
Standards for verifying customer identification at account opening;
|
|
|
Rules to promote cooperation among financial institutions, regulators, and law enforcement entities to assist in the identification of parties that may be
involved in terrorism or money laundering;
|
|
|
Reports to be filed by non-financial trades and business with the Treasury Departments Financial Crimes Enforcement Network for transactions exceeding
$10,000; and
|
|
|
The filing of suspicious activities reports by securities brokers and dealers if they believe a customer may be violating U.S. laws and regulations.
|
Page
|
||
Trico Bancshares Audited Consolidated Financial Statements as of and for the Years Ended December 31, 2001 and 2000
|
F-2
|
|
Trico Bancshares Unaudited Consolidated Financial Statements as of and for the Nine Months Ended September 30, 2002 and 2001
|
F-31
|
|
North State National Bank Audited Financial Statements as of and for the Years Ended December 31, 2001 and 2000
|
F-44
|
|
North State National Bank Unaudited Financial Statements as of and for the Nine Months Ended September 30, 2002 and 2001
|
F-68
|
December 31,
|
||||||||
2001
|
2000
|
|||||||
(in thousands, except share amounts)
|
||||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
59,264
|
|
$
|
58,190
|
|
||
Federal funds sold
|
|
18,700
|
|
|
|
|
||
|
|
|
|
|
|
|||
Cash and cash equivalents
|
|
77,964
|
|
|
58,190
|
|
||
Investment securities
|
|
224,590
|
|
|
229,110
|
|
||
Loans:
|
||||||||
Commercial
|
|
130,054
|
|
|
148,135
|
|
||
Consumer
|
|
155,046
|
|
|
120,247
|
|
||
Real estate mortgages
|
|
326,897
|
|
|
334,010
|
|
||
Real estate construction
|
|
46,735
|
|
|
37,999
|
|
||
|
|
|
|
|
|
|||
|
658,732
|
|
|
640,391
|
|
|||
Less: Allowance for loan losses
|
|
13,058
|
|
|
11,670
|
|
||
|
|
|
|
|
|
|||
Net loans
|
|
645,674
|
|
|
628,721
|
|
||
Premises and equipment, net
|
|
16,457
|
|
|
16,772
|
|
||
Cash value of life insurance
|
|
14,602
|
|
|
13,753
|
|
||
Other real estate owned
|
|
71
|
|
|
1,441
|
|
||
Accrued interest receivable
|
|
5,522
|
|
|
6,935
|
|
||
Deferred income taxes
|
|
9,334
|
|
|
8,418
|
|
||
Intangible assets
|
|
5,070
|
|
|
5,464
|
|
||
Other assets
|
|
6,163
|
|
|
3,267
|
|
||
|
|
|
|
|
|
|||
Total assets
|
$
|
1,005,447
|
|
$
|
972,071
|
|
||
|
|
|
|
|
|
|||
Liabilities and Shareholders Equity:
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing demand
|
|
190,386
|
|
|
168,542
|
|
||
Interest-bearing demand
|
|
165,542
|
|
|
150,749
|
|
||
Savings
|
|
247,399
|
|
|
214,158
|
|
||
Time certificates, $100,000 and over
|
|
70,302
|
|
|
93,342
|
|
||
Other time certificates
|
|
206,764
|
|
|
211,041
|
|
||
|
|
|
|
|
|
|||
Total deposits
|
|
880,393
|
|
|
837,832
|
|
||
Federal funds purchased
|
|
|
|
|
500
|
|
||
Accrued interest payable
|
|
3,488
|
|
|
5,245
|
|
||
Other liabilities
|
|
11,677
|
|
|
9,278
|
|
||
Long-term debt and other borrowings
|
|
22,956
|
|
|
33,983
|
|
||
|
|
|
|
|
|
|||
Total liabilities
|
|
918,514
|
|
|
886,838
|
|
||
Commitments and contingencies (Note H)
|
||||||||
Shareholders equity:
|
||||||||
Common stock, no par value: authorized 20,000,000 shares; issued
and outstanding 7,000,980 and 7,181,226 shares, respectively |
|
49,679
|
|
|
50,428
|
|
||
Retained earnings
|
|
37,909
|
|
|
35,129
|
|
||
Accumulated other comprehensive income (loss)
|
|
(655
|
)
|
|
(324
|
)
|
||
|
|
|
|
|
|
|||
Total shareholders equity
|
|
86,933
|
|
|
85,233
|
|
||
|
|
|
|
|
|
|||
Total liabilities and shareholders equity
|
$
|
1,005,447
|
|
$
|
972,071
|
|
||
|
|
|
|
|
|
Year Ended December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
(in thousands, except share amounts)
|
|||||||||
Interest income:
|
|||||||||
Interest and fees on loans
|
$
|
60,104
|
$
|
62,161
|
$
|
53,395
|
|||
Interest on investment securitiestaxable
|
|
9,543
|
|
11,704
|
|
12,500
|
|||
Interest on investment securitiestax exempt
|
|
2,219
|
|
2,250
|
|
2,229
|
|||
Interest on federal funds sold
|
|
1,506
|
|
538
|
|
465
|
|||
|
|
|
|
|
|
||||
Total interest income
|
|
73,372
|
|
76,653
|
|
68,589
|
|||
|
|
|
|
|
|
||||
Interest expense:
|
|||||||||
Interest on interest-bearing demand deposits
|
|
1,487
|
|
2,360
|
|
2,287
|
|||
Interest on savings
|
|
4,759
|
|
6,837
|
|
6,811
|
|||
Interest on time certificates of deposit
|
|
10,871
|
|
11,325
|
|
8,970
|
|||
Interest on time certificates of deposit, $100,000 and over
|
|
4,390
|
|
4,481
|
|
3,209
|
|||
Interest on short-term borrowing
|
|
7
|
|
623
|
|
386
|
|||
Interest on long-term debt
|
|
1,972
|
|
2,917
|
|
2,707
|
|||
|
|
|
|
|
|
||||
Total interest expense
|
|
23,486
|
|
28,543
|
|
24,370
|
|||
|
|
|
|
|
|
||||
Net interest income
|
|
49,886
|
|
48,110
|
|
44,219
|
|||
Provision for loan losses
|
|
4,400
|
|
5,000
|
|
3,550
|
|||
|
|
|
|
|
|
||||
Net interest income after provision for loan losses
|
|
45,486
|
|
43,110
|
|
40,669
|
|||
|
|
|
|
|
|
||||
Noninterest income:
|
|||||||||
Service charges and fees
|
|
8,095
|
|
7,484
|
|
7,127
|
|||
Gain on sale of investments
|
|
36
|
|
|
|
24
|
|||
Gain on sale of insurance company stock
|
|
1,756
|
|
|
|
|
|||
Gain on receipt of insurance company stock
|
|
|
|
1,510
|
|
|
|||
Other income
|
|
5,174
|
|
5,651
|
|
4,950
|
|||
|
|
|
|
|
|
||||
Total noninterest income
|
|
15,061
|
|
14,645
|
|
12,101
|
|||
|
|
|
|
|
|
||||
Noninterest expense:
|
|||||||||
Salaries and related expenses
|
|
21,396
|
|
19,912
|
|
17,837
|
|||
Other, net
|
|
19,408
|
|
17,983
|
|
16,996
|
|||
|
|
|
|
|
|
||||
Total noninterest expense
|
|
40,804
|
|
37,895
|
|
34,833
|
|||
|
|
|
|
|
|
||||
Income before income taxes
|
|
19,743
|
|
19,860
|
|
17,937
|
|||
Income taxes
|
|
7,324
|
|
7,237
|
|
6,534
|
|||
|
|
|
|
|
|
||||
Net income
|
$
|
12,419
|
$
|
12,623
|
$
|
11,403
|
|||
|
|
|
|
|
|
||||
Basic earnings per common share
|
$
|
1.76
|
$
|
1.76
|
$
|
1.60
|
|||
|
|
|
|
|
|
||||
Diluted earnings per common share
|
$
|
1.72
|
$
|
1.72
|
$
|
1.56
|
|||
|
|
|
|
|
|
Common Stock
|
Accumulated Other Comprehensive
Income
(Loss)
|
||||||||||||||||||||||
Number of Shares
|
Amount
|
Retained Earnings
|
Total
|
Comprehensive Income
|
|||||||||||||||||||
(in thousands, except share amounts)
|
|||||||||||||||||||||||
Balance, December 31, 1998
|
7,050,990
|
|
$
|
48,838
|
|
$
|
22,257
|
|
$
|
934
|
|
$
|
72,029
|
|
|||||||||
Exercise of Common Stock options
|
106,440
|
|
|
1,074
|
|
|
1,074
|
|
|||||||||||||||
Repurchase of Common Stock
|
(5,101
|
)
|
|
(35
|
)
|
|
(51
|
)
|
|
(86
|
)
|
||||||||||||
Common Stock cash dividends
|
|
(4,996
|
)
|
|
(4,996
|
)
|
|||||||||||||||||
Stock option amortization
|
|
166
|
|
|
166
|
|
|||||||||||||||||
Comprehensive income:
|
|||||||||||||||||||||||
Net income
|
|
11,403
|
|
|
11,403
|
|
$
|
11,403
|
|
||||||||||||||
Other comprehensive income, net of tax: Change in unrealized (loss) on securities, net of tax and reclassification
adjustments
(Note A): |
|
(6,467
|
)
|
||||||||||||||||||||
|
|
|
|||||||||||||||||||||
Other comprehensive loss:
|
|
(6,467
|
)
|
|
(6,467
|
)
|
|
(6,467
|
)
|
||||||||||||||
|
|
|
|||||||||||||||||||||
Comprehensive income
|
$
|
4,936
|
|
||||||||||||||||||||
|
|
|
|||||||||||||||||||||
Balance, December 31, 1999
|
7,152,329
|
|
|
50,043
|
|
|
28,613
|
|
|
(5,533
|
)
|
|
73,123
|
|
|||||||||
Exercise of Common Stock options
|
78,625
|
|
|
665
|
|
|
665
|
|
|||||||||||||||
Repurchase of Common Stock
|
(49,728
|
)
|
|
(349
|
)
|
|
(427
|
)
|
|
(776
|
)
|
||||||||||||
Common Stock cash dividends
|
|
(5,680
|
)
|
|
(5,680
|
)
|
|||||||||||||||||
Stock option amortization
|
|
69
|
|
|
69
|
|
|||||||||||||||||
Comprehensive income:
|
|||||||||||||||||||||||
Net income
|
|
12,623
|
|
|
12,623
|
|
$
|
12,623
|
|
||||||||||||||
Other comprehensive income, net of tax: Change in unrealized gain on securities, net of tax and reclassification
adjustments
(Note A): |
|
5,209
|
|
||||||||||||||||||||
|
|
|
|||||||||||||||||||||
Other comprehensive income:
|
|
5,209
|
|
|
5,209
|
|
|
5,209
|
|
||||||||||||||
|
|
|
|||||||||||||||||||||
Comprehensive income
|
$
|
17,832
|
|
||||||||||||||||||||
|
|
|
|||||||||||||||||||||
Balance, December 31, 2000
|
7,181,226
|
|
|
50,428
|
|
|
35,129
|
|
|
(324
|
)
|
|
85,233
|
|
|||||||||
Exercise of Common Stock options
|
192,530
|
|
|
1,872
|
|
|
1,872
|
|
|||||||||||||||
Repurchase of Common Stock
|
(372,776
|
)
|
|
(2,621
|
)
|
|
(3,997
|
)
|
|
(6,618
|
)
|
||||||||||||
Common Stock cash dividends
|
|
(5,642
|
)
|
|
(5,642
|
)
|
|||||||||||||||||
Comprehensive income:
|
|||||||||||||||||||||||
Net income
|
|
12,419
|
|
|
12,419
|
|
$
|
12,419
|
|
||||||||||||||
Other comprehensive income, net of tax: Change in unrealized gain on securities, net of tax and reclassification
adjustments
(Note A): |
|
441
|
|
||||||||||||||||||||
|
|
|
|||||||||||||||||||||
Change in minimum pension liability, net of tax (Note A):
|
|
(772
|
)
|
||||||||||||||||||||
|
|
|
|||||||||||||||||||||
Other comprehensive income:
|
|
(331
|
)
|
|
(331
|
)
|
|
(331
|
)
|
||||||||||||||
|
|
|
|||||||||||||||||||||
Comprehensive income
|
$
|
12,088
|
|
||||||||||||||||||||
|
|
|
|||||||||||||||||||||
Balance, December 31, 2001
|
7,000,980
|
|
$
|
49,679
|
|
$
|
37,909
|
|
$
|
(655
|
)
|
$
|
86,933
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||
2001
|
2000
|
1999
|
||||||||||
(in thousands)
|
||||||||||||
Operating activities:
|
||||||||||||
Net income
|
$
|
12,419
|
|
$
|
12,623
|
|
$
|
11,403
|
|
|||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||||||
Provision for loan losses
|
|
4,400
|
|
|
5,000
|
|
|
3,550
|
|
|||
Provision for losses on other real estate owned
|
|
18
|
|
|
25
|
|
|
10
|
|
|||
Depreciation and amortization
|
|
2,708
|
|
|
2,641
|
|
|
2,615
|
|
|||
Amortization of intangible assets
|
|
911
|
|
|
965
|
|
|
1,135
|
|
|||
(Accretion) amortization of investment
security (discounts) premiums, net |
|
398
|
|
|
217
|
|
|
538
|
|
|||
Deferred income taxes
|
|
(660
|
)
|
|
(650
|
)
|
|
(410
|
)
|
|||
Investment security gains, net
|
|
(36
|
)
|
|
|
|
|
(24
|
)
|
|||
Gain on receipt of insurance company stock
|
|
|
|
|
(1,510
|
)
|
|
|
|
|||
Gain on sale of insurance company stock
|
|
(1,756
|
)
|
|
|
|
|
|
|
|||
Gain on sale of loans
|
|
(80
|
)
|
|
(83
|
)
|
|
(178
|
)
|
|||
Amortization of stock options
|
|
|
|
|
69
|
|
|
166
|
|
|||
Change in assets and liabilities:
|
||||||||||||
Decrease (increase) in interest receivable
|
|
1,413
|
|
|
(859
|
)
|
|
(255
|
)
|
|||
Increase (decrease) in interest payable
|
|
(1,757
|
)
|
|
1,052
|
|
|
330
|
|
|||
Increase in other assets and liabilities
|
|
(2,756
|
)
|
|
(127
|
)
|
|
(2,481
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities
|
|
14,304
|
|
|
18,838
|
|
|
15,599
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Investing activities:
|
||||||||||||
Proceeds from maturities of securities available-for-sale
|
|
85,619
|
|
|
39,663
|
|
|
64,496
|
|
|||
Proceeds from sales of securities available-for-sale
|
|
14,119
|
|
|
|
|
|
14,137
|
|
|||
Purchases of securities available-for-sale
|
|
(93,125
|
)
|
|
(27,567
|
)
|
|
(41,372
|
)
|
|||
Net increase in loans
|
|
(20,760
|
)
|
|
(57,805
|
)
|
|
(56,138
|
)
|
|||
Purchases of premises and equipment
|
|
(1,951
|
)
|
|
(2,998
|
)
|
|
(2,058
|
)
|
|||
Proceeds from sale of other real estate owned
|
|
1,757
|
|
|
928
|
|
|
1,268
|
|
|||
Proceeds from sale of premises and equipment
|
|
32
|
|
|
40
|
|
|
44
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Net cash used by investing activities
|
|
(14,309
|
)
|
|
(47,739
|
)
|
|
(19,623
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Financing activities:
|
||||||||||||
Net increase in deposits
|
|
42,561
|
|
|
43,722
|
|
|
24,937
|
|
|||
Net increase (decrease) in federal funds purchased
|
|
(500
|
)
|
|
500
|
|
|
(14,000
|
)
|
|||
Borrowings under long-term debt agreements
|
|
|
|
|
35,000
|
|
|
21,000
|
|
|||
Payments of principal on long-term debt agreements
|
|
(11,027
|
)
|
|
(46,522
|
)
|
|
(13,419
|
)
|
|||
Repurchase of Common Stock
|
|
(6,618
|
)
|
|
(776
|
)
|
|
(86
|
)
|
|||
Cash dividendsCommon
|
|
(5,642
|
)
|
|
(5,680
|
)
|
|
(4,996
|
)
|
|||
Issuance of Common Stock
|
|
1,005
|
|
|
411
|
|
|
541
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Net cash provided by financing activities
|
|
19,779
|
|
|
26,655
|
|
|
13,977
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Increase (decrease) in cash and cash equivalents
|
|
19,774
|
|
|
(2,246
|
)
|
|
9,953
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents at beginning of year
|
|
58,190
|
|
|
60,436
|
|
|
50,483
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents at end of year
|
$
|
77,964
|
|
$
|
58,190
|
|
$
|
60,436
|
|
|||
|
|
|
|
|
|
|
|
|
Supplemental information:
|
|||||||||
Cash paid for taxes
|
$
|
9,089
|
$
|
7,573
|
$
|
7,240
|
|||
Cash paid for interest expense
|
$
|
25,243
|
$
|
27,491
|
$
|
24,040
|
|||
Non-cash assets acquired through foreclosure
|
$
|
325
|
$
|
1,551
|
$
|
673
|
2001
|
2000
|
1999
|
||||||||||
(in thousands)
|
||||||||||||
Unrealized Gain (Loss) on Securities:
|
||||||||||||
Beginning Balance
|
$
|
(324
|
)
|
$
|
(5,533
|
)
|
$
|
934
|
|
|||
Unrealized gain (loss) arising during the period, net of tax
|
|
(669
|
)
|
|
5,209
|
|
|
(6,452
|
)
|
|||
Less: Reclassification adjustment for net realized gains on securities available for sale included in net income during
the year, net of tax of $681, $0 and ($9), respectively
|
|
1,110
|
|
|
|
|
|
(15
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Ending Balance
|
|
117
|
|
|
(324
|
)
|
|
(5,533
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Minimum Pension Liability:
|
||||||||||||
Beginning Balance
|
|
|
|
|
|
|
|
|
|
|||
Change in minimum pension liability, net of tax of ($514), $0 and $0, respectively
|
|
(772
|
)
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Ending Balance
|
|
(772
|
)
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Total accumulated other comprehensive income (loss)
|
$
|
(655
|
)
|
$
|
(324
|
)
|
$
|
(5,533
|
)
|
|||
|
|
|
|
|
|
|
|
|
December 31, 2001
|
|||||||||||||
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Fair
Value
|
||||||||||
(in thousands)
|
|||||||||||||
Securities Available-for-Sale
|
|||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
$
|
29,991
|
$
|
34
|
$
|
(142
|
)
|
$
|
29,883
|
||||
Obligations of states and political subdivisions
|
|
44,524
|
|
833
|
|
(124
|
)
|
|
45,233
|
||||
Mortgage-backed securities
|
|
131,972
|
|
1,246
|
|
(217
|
)
|
|
133,001
|
||||
Corporate debt securities
|
|
13,731
|
|
177
|
|
(1,620
|
)
|
|
12,288
|
||||
|
|
|
|
|
|
|
|
|
|||||
Total securities available-for-sale
|
|
220,218
|
|
2,290
|
|
(2,103
|
)
|
|
220,405
|
||||
Other securities
|
|
4,185
|
|
4,185
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||
Totals investment securities
|
$
|
224,403
|
$
|
2,290
|
$
|
(2,103
|
)
|
$
|
224,590
|
||||
|
|
|
|
|
|
|
|
|
|||||
December 31, 2000
|
|||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross Unrealized Losses
|
Estimated
Fair
Value
|
||||||||||
(in thousands)
|
|||||||||||||
Securities Available-for-Sale
|
|||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies
|
$
|
31,308
|
$
|
35
|
$
|
(170
|
)
|
$
|
31,173
|
||||
Obligations of states and political subdivisions
|
|
44,721
|
|
778
|
|
(123
|
)
|
|
45,376
|
||||
Mortgage-backed securities
|
|
136,410
|
|
31
|
|
(1,355
|
)
|
|
135,086
|
||||
Corporate debt securities
|
|
11,726
|
|
(1,539
|
)
|
|
10,187
|
||||||
Equity securities
|
|
1,510
|
|
1,831
|
|
3,341
|
|||||||
|
|
|
|
|
|
|
|
|
|||||
Total securities available-for-sale
|
|
225,675
|
|
2,675
|
|
(3,187
|
)
|
|
225,163
|
||||
Other securities
|
|
3,947
|
|
3,947
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||
Totals
|
$
|
229,622
|
$
|
2,675
|
$
|
(3,187
|
)
|
$
|
229,110
|
||||
|
|
|
|
|
|
|
|
|
Amortized Cost
|
Estimated
Fair
Value
|
|||||
(in thousands)
|
||||||
Investment Securities
|
||||||
Due in one year
|
$
|
755
|
$
|
763
|
||
Due after one year through five years
|
|
47,877
|
|
48,305
|
||
Due after five years through ten years
|
|
23,152
|
|
23,437
|
||
Due after ten years
|
|
148,434
|
|
147,900
|
||
|
|
|
|
|||
No stated maturity
|
|
4,185
|
|
4,185
|
||
|
|
|
|
|||
Totals
|
$
|
224,403
|
$
|
224,590
|
||
|
|
|
|
For the Year
|
Gross Proceeds
|
Gross Gains
|
Gross Losses
|
||||||
(in thousands)
|
|||||||||
2001
|
$
|
14,119
|
$
|
1,796
|
$
|
4
|
|||
2000
|
|
|
|
|
|
|
|||
1999
|
|
14,137
|
|
24
|
|
|
Years Ended December 31,
|
||||||||||||
2001
|
2000
|
1999
|
||||||||||
(in thousands)
|
||||||||||||
Balance, beginning of year
|
$
|
11,670
|
|
$
|
11,037
|
|
$
|
8,206
|
|
|||
Provision for loan losses
|
|
4,400
|
|
|
5,000
|
|
|
3,550
|
|
|||
Loans charged off
|
|
(3,213
|
)
|
|
(4,705
|
)
|
|
(1,082
|
)
|
|||
Recoveries of loans previously charged off
|
|
201
|
|
|
338
|
|
|
363
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Balance, end of year
|
$
|
13,058
|
|
$
|
11,670
|
|
$
|
11,037
|
|
|||
|
|
|
|
|
|
|
|
|
2001
|
2000
|
|||||||||||
Recorded Investment
|
Valuation Allowance
|
Recorded Investment
|
Valuation Allowance
|
|||||||||
Impaired loans
|
||||||||||||
Valuation allowance required
|
$
|
6,050
|
$
|
881
|
$
|
9,614
|
$
|
1,785
|
||||
No valuation allowance required
|
|
|
|
|
|
3,613
|
|
|
||||
|
|
|
|
|
|
|
|
|||||
Total impaired loans
|
$
|
6,050
|
$
|
881
|
$
|
13,227
|
$
|
1,785
|
||||
|
|
|
|
|
|
|
|
December 31,
|
||||||||
2001
|
2000
|
|||||||
(in thousands)
|
||||||||
Premises
|
$
|
12,269
|
|
$
|
12,215
|
|
||
Furniture and equipment
|
|
16,133
|
|
|
15,180
|
|
||
|
|
|
|
|
|
|||
|
28,402
|
|
|
27,395
|
|
|||
Less:
|
||||||||
Accumulated depreciation and amortization
|
|
(15,466
|
)
|
|
(14,181
|
)
|
||
|
|
|
|
|
|
|||
|
12,936
|
|
|
13,214
|
|
|||
Land and land improvements
|
|
3,521
|
|
|
3,558
|
|
||
|
|
|
|
|
|
|||
$
|
16,457
|
|
$
|
16,772
|
|
|||
|
|
|
|
|
|
Scheduled
Maturities
|
|||
2002
|
$
|
254,462
|
|
2003
|
|
18,473
|
|
2004
|
|
3,025
|
|
2005
|
|
12
|
|
2006 and thereafter
|
|
1,094
|
|
|
|
||
Total
|
$
|
277,066
|
|
|
|
December 31,
|
||||||
2001
|
2000
|
|||||
(in thousands)
|
||||||
FHLB loan, fixed rate of 5.90% payable on January 16, 2001
|
$
|
|
$
|
1,000
|
||
FHLB loan, fixed rate of 7.36% payable on November 30, 2001
|
|
|
|
10,000
|
||
FHLB loan, fixed rate of 5.41% payable on April 7, 2008, callable by FHLB on a quarterly basis beginning April 7,
2003
|
|
20,000
|
|
20,000
|
||
FHLB loan, fixed rate of 5.35% payable on December 9, 2008
|
|
1,500
|
|
1,500
|
||
FHLB loan, fixed rate of 5.77% payable on February 23, 2009
|
|
1,000
|
|
1,000
|
||
Capital lease obligation on premises, effective rate of 13% payable monthly in varying amounts through December 1,
2009
|
|
456
|
|
483
|
||
|
|
|
|
|||
Total long-term debt
|
$
|
22,956
|
$
|
33,983
|
||
|
|
|
|
Capital
Leases
|
Operating
Leases
|
|||||
(in thousands)
|
||||||
2002
|
$
|
89
|
$
|
922
|
||
2003
|
|
90
|
|
875
|
||
2004
|
|
91
|
|
757
|
||
2005
|
|
92
|
|
615
|
||
2006
|
|
93
|
|
447
|
||
Thereafter
|
|
286
|
|
1,839
|
||
|
|
|
|
|||
Future minimum lease payments
|
|
741
|
$
|
5,455
|
||
|
|
|||||
Less amount representing interest
|
|
285
|
||||
|
|
|||||
Present value of future lease payments
|
$
|
456
|
||||
|
|
Number of Shares
|
Option Price Per Share
|
Weighted Average Exercise Price
|
Weighted Average Fair Value of Grants
|
||||||||||||||
Outstanding at December 31, 1998
|
609,882
|
|
$
|
4.95
|
to
|
$
|
18.25
|
$
|
7.37
|
||||||||
Options exercised
|
(106,440
|
)
|
|
4.95
|
to
|
|
5.24
|
|
5.09
|
||||||||
Options forfeited
|
(2,551
|
)
|
|
5.24
|
to
|
|
18.25
|
|
12.89
|
||||||||
Outstanding at December 31, 1999
|
500,891
|
|
|
4.95
|
to
|
|
18.25
|
|
7.82
|
||||||||
Options granted
|
118,900
|
|
|
16.13
|
to
|
|
16.13
|
|
16.13
|
$
|
3.99
|
||||||
Options exercised
|
(78,625
|
)
|
|
5.24
|
to
|
|
5.24
|
|
5.24
|
||||||||
Options forfeited
|
(750
|
)
|
|
18.25
|
to
|
|
18.25
|
|
18.25
|
||||||||
Outstanding at December 31, 2000
|
540,416
|
|
|
4.95
|
to
|
|
18.25
|
|
10.01
|
||||||||
Options granted
|
323,000
|
|
|
16.10
|
to
|
|
16.40
|
|
16.38
|
$
|
3.26
|
||||||
Options exercised
|
(192,530
|
)
|
|
4.95
|
to
|
|
5.24
|
|
5.22
|
||||||||
Options forfeited
|
(12,000
|
)
|
|
16.13
|
to
|
|
18.25
|
|
16.92
|
||||||||
Outstanding at December 31, 2001
|
658,886
|
|
|
5.24
|
to
|
|
18.25
|
|
14.41
|
Outstanding Options
|
Exercisable Options
|
|||||||||||
Range of
Exercise Price
|
Number
|
Weighted-Average Exercise Price
|
Weighted-Average Remaining Contractual Life
|
Number
|
Weighted-Average Exercise Price
|
|||||||
$4-$6
|
92,860
|
$
|
5.24
|
1.68 years
|
92,860
|
$
|
5.24
|
|||||
$8-$10
|
25,876
|
$
|
8.93
|
3.44
|
25,876
|
$
|
8.93
|
|||||
$12-$14
|
30,000
|
$
|
12.25
|
4.48
|
30,000
|
$
|
12.25
|
|||||
$14-$16
|
15,000
|
$
|
14.17
|
5.01
|
15,000
|
$
|
14.17
|
|||||
$16-$18
|
434,400
|
$
|
16.32
|
9.11
|
105,560
|
$
|
16.28
|
|||||
$18-$20
|
60,750
|
$
|
18.25
|
5.78
|
60,750
|
$
|
18.25
|
2001
|
2000
|
1999
|
|||||||||||||
Net income
|
As reported
|
$
|
12,419
|
$
|
12,623
|
$
|
11,403
|
||||||||
Pro forma
|
$
|
12,253
|
$
|
12,507
|
$
|
11,330
|
|||||||||
Basic earnings per share
|
As reported
|
$
|
1.76
|
$
|
1.76
|
$
|
1.60
|
||||||||
Pro forma
|
$
|
1.73
|
$
|
1.74
|
$
|
1.59
|
|||||||||
Diluted earnings per share
|
As reported
|
$
|
1.72
|
$
|
1.72
|
$
|
1.56
|
||||||||
Pro forma
|
$
|
1.70
|
$
|
1.70
|
$
|
1.55
|
Years Ended December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
(in thousands)
|
|||||||||
Commissions on sale of investment and insurance products
|
$
|
2,576
|
$
|
2,784
|
$
|
2,319
|
|||
Gain on sale of loans and leases
|
|
918
|
|
525
|
|
800
|
|||
Increase in cash value of insurance policies
|
|
476
|
|
657
|
|
373
|
|||
Sale of customer checks
|
|
283
|
|
286
|
|
283
|
|||
Gain (loss) on sale of other real estate owned
|
|
80
|
|
83
|
|
178
|
|||
Other
|
|
841
|
|
1,316
|
|
997
|
|||
|
|
|
|
|
|
||||
Total other noninterest income
|
$
|
5,174
|
$
|
5,651
|
$
|
4,950
|
|||
|
|
|
|
|
|
Years Ended December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
(in thousands)
|
|||||||||
Equipment and data processing
|
$
|
3,694
|
$
|
3,376
|
$
|
3,525
|
|||
Occupancy
|
|
2,806
|
|
2,587
|
|
2,456
|
|||
Telecommunications
|
|
1,253
|
|
957
|
|
906
|
|||
Advertising
|
|
1,132
|
|
1,336
|
|
943
|
|||
Professional fees
|
|
1,087
|
|
1,005
|
|
1,027
|
|||
ATM network charges
|
|
913
|
|
770
|
|
705
|
|||
Intangible amortization
|
|
911
|
|
965
|
|
1,135
|
|||
Courier service
|
|
661
|
|
608
|
|
582
|
|||
Postage
|
|
639
|
|
486
|
|
552
|
|||
Operational losses
|
|
227
|
|
807
|
|
273
|
|||
Assessments
|
|
223
|
|
222
|
|
179
|
|||
Net other real estate owned expense
|
|
175
|
|
127
|
|
62
|
|||
Other
|
|
5,687
|
|
4,737
|
|
4,651
|
|||
|
|
|
|
|
|
||||
Total other noninterest expenses
|
$
|
19,408
|
$
|
17,983
|
$
|
16,996
|
|||
|
|
|
|
|
|
Years Ended December 31,
|
||||||||||||
2001
|
2000
|
1999
|
||||||||||
(in thousands)
|
||||||||||||
Current Tax Provision:
|
||||||||||||
Federal
|
$
|
5,975
|
|
$
|
5,890
|
|
$
|
5,013
|
|
|||
State
|
|
2,009
|
|
|
1,997
|
|
|
1,931
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Total current
|
|
7,984
|
|
|
7,887
|
|
|
6,944
|
|
|||
Deferred Tax Benefit:
|
||||||||||||
Federal
|
|
(518
|
)
|
|
(511
|
)
|
|
(152
|
)
|
|||
State
|
|
(142
|
)
|
|
(139
|
)
|
|
(258
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total deferred
|
|
(660
|
)
|
|
(650
|
)
|
|
(410
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Total income taxes
|
$
|
7,324
|
|
$
|
7,237
|
|
$
|
6,534
|
|
|||
|
|
|
|
|
|
|
|
|
Years Ended December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
Federal statutory income tax rate
|
35.0
|
%
|
34.0
|
%
|
34.0
|
%
|
|||
State income taxes, net of federal tax benefit
|
6.5
|
|
6.2
|
|
6.3
|
|
|||
Tax-exempt interest on municipal obligations
|
(3.9
|
)
|
(3.9
|
)
|
(3.9
|
)
|
|||
Other
|
(0.5
|
)
|
0.1
|
|
|
|
|||
|
|
|
|
|
|
||||
Effective Tax Rate
|
37.1
|
%
|
36.4
|
%
|
36.4
|
%
|
|||
|
|
|
|
|
|
2001
|
2000
|
|||||||
(in thousands)
|
||||||||
Deferred Tax Assets:
|
||||||||
Loan losses
|
$
|
5,614
|
|
$
|
5,015
|
|
||
Deferred compensation
|
|
3,337
|
|
|
2,948
|
|
||
Intangible amortization
|
|
975
|
|
|
882
|
|
||
Nonaccrual interest
|
|
119
|
|
|
335
|
|
||
Stock option amortization
|
|
101
|
|
|
243
|
|
||
Unrealized loss on securities
|
|
|
|
|
188
|
|
||
OREO write downs
|
|
182
|
|
|
181
|
|
||
Other
|
|
438
|
|
|
323
|
|
||
|
|
|
|
|
|
|||
Total deferred tax assets
|
|
10,766
|
|
|
10,115
|
|
||
|
|
|
|
|
|
|||
Deferred Tax Liabilities:
|
||||||||
Securities income
|
|
(361
|
)
|
|
(833
|
)
|
||
Securities accretion
|
|
(401
|
)
|
|
(384
|
)
|
||
Depreciation
|
|
(448
|
)
|
|
(339
|
)
|
||
Capital leases
|
|
(106
|
)
|
|
(105
|
)
|
||
State taxes
|
|
(46
|
)
|
|
(36
|
)
|
||
Unrealized gain on securities
|
|
(70
|
)
|
|
|
|
||
|
|
|
|
|
|
|||
Total deferred tax liability
|
|
(1,432
|
)
|
|
(1,697
|
)
|
||
|
|
|
|
|
|
|||
Net deferred tax asset
|
$
|
9,334
|
|
$
|
8,418
|
|
||
|
|
|
|
|
|
December 31,
|
||||||||
2001
|
2000
|
|||||||
(in thousands)
|
||||||||
Change in benefit obligation:
|
||||||||
Benefit obligation at beginning of year
|
$
|
(5,134
|
)
|
$
|
(4,378
|
)
|
||
Service cost
|
|
(86
|
)
|
|
(74
|
)
|
||
Interest cost
|
|
(372
|
)
|
|
(317
|
)
|
||
Amendments
|
|
(108
|
)
|
|
(181
|
)
|
||
Actuarial gain (loss)
|
|
(862
|
)
|
|
(322
|
)
|
||
Benefits paid
|
|
301
|
|
|
138
|
|
||
|
|
|
|
|
|
|||
Benefit obligation at end of year
|
$
|
(6,261
|
)
|
$
|
(5,134
|
)
|
||
|
|
|
|
|
|
|||
Change in plan assets:
|
||||||||
Fair value of plan assets at beginning of year
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|||
Fair value of plan assets at end of year
|
$
|
|
|
$
|
|
|
||
|
|
|
|
|
|
|||
Funded status
|
|
(6,261
|
)
|
|
(5,134
|
)
|
||
Unrecognized net obligation existing at January 1, 1986
|
|
115
|
|
|
148
|
|
||
Unrecognized net actuarial loss
|
|
2,072
|
|
|
1,264
|
|
||
Unrecognized prior service cost
|
|
402
|
|
|
333
|
|
||
Intangible asset
|
|
(517
|
)
|
|
|
|
||
Accumulated other comprehensive income
|
|
(1,286
|
)
|
|
|
|
||
|
|
|
|
|
|
|||
Accrued benefit cost
|
$
|
(5,475
|
)
|
$
|
(3,389
|
)
|
||
|
|
|
|
|
|
Years Ended December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
(in thousands)
|
|||||||||
Net pension cost included the following components:
|
|||||||||
Service cost-benefits earned during the period
|
$
|
86
|
$
|
74
|
$
|
70
|
|||
Interest cost on projected benefit obligation
|
|
372
|
|
317
|
|
275
|
|||
Amortization of net obligation at transition
|
|
35
|
|
35
|
|
35
|
|||
Amortization of prior service cost
|
|
39
|
|
13
|
|
11
|
|||
Recognized net actuarial loss
|
|
53
|
|
41
|
|
43
|
|||
|
|
|
|
|
|
||||
Net periodic pension cost
|
$
|
585
|
$
|
480
|
$
|
434
|
|||
|
|
|
|
|
|
Year Ended December 31, 2001
|
||||||||
Income
|
Weighted Average Shares
|
Per Share Amount
|
||||||
Basic Earnings per Share
|
||||||||
Net income available to common shareholders
|
$
|
12,419
|
7,072,588
|
$
|
1.76
|
|||
Common stock options outstanding
|
|
|
146,641
|
|||||
|
|
|
||||||
Diluted Earnings per Share
|
||||||||
Net income available to common shareholders
|
$
|
12,419
|
7,219,229
|
$
|
1.72
|
|||
|
|
|
Year Ended December 31, 2000
|
||||||||
Income
|
Weighted Average Shares
|
Per Share Amount
|
||||||
Basic Earnings per Share
|
||||||||
Net income available to common shareholders
|
$
|
12,623
|
7,191,790
|
$
|
1.76
|
|||
Common stock options outstanding
|
|
|
148,939
|
|||||
|
|
|
||||||
Diluted Earnings per Share
|
||||||||
Net income available to common shareholders
|
$
|
12,623
|
7,340,729
|
$
|
1.72
|
|||
|
|
|
Year Ended December 31, 1999
|
||||||||
Income
|
Weighted Average Shares
|
Per Share Amount
|
||||||
Basic Earnings per Share
|
||||||||
Net income available to common shareholders
|
$
|
11,403
|
7,129,560
|
$
|
1.60
|
|||
Common stock options outstanding
|
|
|
188,960
|
|||||
|
|
|
||||||
Diluted Earnings per Share
|
||||||||
Net income available to common shareholders
|
$
|
11,403
|
7,318,520
|
$
|
1.56
|
|||
|
|
|
Balance
December 31,
2000
|
Advances/
New Loans
|
Removed/
Payments
|
Balance
December 31, 2001
|
|||
(in thousands)
|
||||||
$6,523
|
$923
|
$1,077
|
$6,369
|
Contractual Amount
December
31,
|
||||||
2001
|
2000
|
|||||
(in thousands)
|
||||||
Financial instruments whose contract amounts represent credit risk:
|
||||||
Commitments to extend credit:
|
||||||
Commercial loans
|
$
|
72,646
|
$
|
79,808
|
||
Consumer loans
|
|
91,170
|
|
55,528
|
||
Real estate mortgage loans
|
|
2,932
|
|
477
|
||
Real estate construction loans
|
|
23,952
|
|
22,289
|
||
Standby letters of credit
|
|
4,391
|
|
1,229
|
December 31, 2001
|
||||||
Carrying Amount
|
Fair
Value
|
|||||
(in thousands)
|
||||||
Financial assets:
|
||||||
Cash and due from banks
|
$
|
59,264
|
$
|
59,264
|
||
Federal funds sold
|
|
18,700
|
|
18,700
|
||
Securities:
|
||||||
Available-for-sale
|
|
224,590
|
|
224,590
|
||
Loans, net
|
|
645,674
|
|
637,000
|
||
Accrued interest receivable
|
|
5,522
|
|
5,522
|
Financial liabilities:
|
||||
Deposits
|
880,393
|
832,380
|
||
Accrued interest payable
|
3,488
|
3,488
|
||
Long-term borrowings
|
22,956
|
24,156
|
December 31, 2000
|
||||||
Carrying Amount
|
Fair Value
|
|||||
(in thousands)
|
||||||
Financial assets:
|
||||||
Cash and due from banks
|
$
|
58,190
|
$
|
58,190
|
||
Securities:
|
||||||
Available-for-sale
|
|
229,110
|
|
229,110
|
||
Loans, net
|
|
628,721
|
|
637,389
|
||
Accrued interest receivable
|
|
6,935
|
|
6,935
|
||
Financial liabilities:
|
||||||
Deposits
|
|
837,832
|
|
795,101
|
||
Federal funds purchased
|
|
500
|
|
500
|
||
Accrued interest payable
|
|
5,245
|
|
5,245
|
||
Long-term borrowings
|
|
33,983
|
|
35,066
|
December 31,
|
||||||||
2001
|
2000
|
|||||||
(in thousands)
|
||||||||
Assets
|
||||||||
Cash and Cash equivalents
|
$
|
241
|
|
$
|
272
|
|
||
Securities available-for-sale
|
|
180
|
|
|
180
|
|
||
Investment in Tri Counties Bank
|
|
85,446
|
|
|
83,457
|
|
||
Other assets
|
|
1,066
|
|
|
1,324
|
|
||
|
|
|
|
|
|
|||
Total assets
|
$
|
86,933
|
|
$
|
85,233
|
|
||
|
|
|
|
|
|
|||
Liabilities and shareholders equity
|
||||||||
Total liabilities
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|||
Shareholders equity:
|
||||||||
Common stock, no par value:
|
||||||||
Authorized 20,000,000 shares; issued and outstanding 7,000,980 and 7,181,226 shares, respectively
|
$
|
49,679
|
|
$
|
50,428
|
|
||
Retained earnings
|
|
37,909
|
|
|
35,129
|
|
||
Accumulated other comprehensive income (loss)
|
|
(655
|
)
|
|
(324
|
)
|
||
|
|
|
|
|
|
|||
Total shareholders equity
|
|
86,933
|
|
|
85,233
|
|
||
|
|
|
|
|
|
|||
Total liabilities and shareholders equity
|
$
|
86,933
|
|
$
|
85,233
|
|
||
|
|
|
|
|
|
Statements of Income
|
||||||||||||
Years Ended December 31,
|
||||||||||||
2001
|
2000
|
1999
|
||||||||||
(in thousands)
|
||||||||||||
Interest income
|
$
|
17
|
|
$
|
18
|
|
$
|
1
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Administration expense
|
|
980
|
|
|
980
|
|
|
385
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Loss before equity in net income of Tri Counties Bank
|
|
(963
|
)
|
|
(962
|
)
|
|
(384
|
)
|
|||
Equity in net income of Tri Counties Bank:
|
||||||||||||
Distributed
|
|
12,187
|
|
|
7,118
|
|
|
5,170
|
|
|||
Undistributed
|
|
798
|
|
|
6,070
|
|
|
6,459
|
|
|||
Income taxes
|
|
397
|
|
|
397
|
|
|
158
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
12,419
|
|
$
|
12,623
|
|
$
|
11,403
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Statements of Cash Flows
|
Years Ended December 31,
|
||||||||||||
2001
|
2000
|
1999
|
||||||||||
(in thousands)
|
||||||||||||
Operating activities:
|
||||||||||||
Net income
|
$
|
12,419
|
|
$
|
12,623
|
|
$
|
11,403
|
|
|||
Adjustments to reconcile net income to net cash
provided by operating activities: |
||||||||||||
Undistributed equity in Tri Counties Bank
|
|
(798
|
)
|
|
(6,070
|
)
|
|
(6,459
|
)
|
|||
Deferred income taxes
|
|
(397
|
)
|
|
(397
|
)
|
|
(158
|
)
|
|||
Decrease in other operating assets and liabilities
|
|
|
|
|
|
|
|
(8
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities
|
|
11,224
|
|
|
6,156
|
|
|
4,778
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Investing activities:
|
||||||||||||
Purchases of securities available-for-sale
|
|
|
|
|
|
|
|
(180
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Net cash used for investing activities
|
|
|
|
|
|
|
|
(180
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Financing activities:
|
||||||||||||
Issuance of common stock
|
|
1,005
|
|
|
411
|
|
|
541
|
|
|||
Repurchase of common stock
|
|
(6,618
|
)
|
|
(776
|
)
|
|
(86
|
)
|
|||
Cash dividendscommon
|
|
(5,642
|
)
|
|
(5,680
|
)
|
|
(4,996
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Net cash used for financing activities
|
|
(11,255
|
)
|
|
(6,045
|
)
|
|
(4,541
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Increase (decrease) in cash and cash equivalents
|
|
(31
|
)
|
|
111
|
|
|
57
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents at beginning of year
|
|
272
|
|
|
161
|
|
|
104
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents at end of year
|
$
|
241
|
|
$
|
272
|
|
$
|
161
|
|
|||
|
|
|
|
|
|
|
|
|
Actual
|
For Capital Adequacy Purposes
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
||||||||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||||||
As of December 31, 2001:
|
||||||||||||||||||
Total Capital (to Risk Weighted Assets):
|
||||||||||||||||||
Consolidated
|
$
|
91,418
|
11.68
|
%
|
$
|
62,620
|
8.0
|
%
|
$
|
78,275
|
10.0
|
%
|
||||||
Tri Counties Bank
|
$
|
89,253
|
11.43
|
%
|
$
|
62,466
|
8.0
|
%
|
$
|
78,083
|
10.0
|
%
|
||||||
Tier I Capital (to Risk Weighted Assets):
|
||||||||||||||||||
Consolidated
|
$
|
81,595
|
10.43
|
%
|
$
|
31,310
|
4.0
|
%
|
$
|
46,965
|
6.0
|
%
|
||||||
Tri Counties Bank
|
$
|
79,454
|
10.18
|
%
|
$
|
31,233
|
4.0
|
%
|
$
|
46,850
|
6.0
|
%
|
||||||
Tier I Capital (to Average Assets):
|
||||||||||||||||||
Consolidated
|
$
|
81,595
|
8.17
|
%
|
$
|
39,941
|
4.0
|
%
|
$
|
49,926
|
5.0
|
%
|
||||||
Tri Counties Bank
|
$
|
79,454
|
7.97
|
%
|
$
|
39,865
|
4.0
|
%
|
$
|
49,832
|
5.0
|
%
|
||||||
As of December 31, 2000:
|
||||||||||||||||||
Total Capital (to Risk Weighted Assets):
|
||||||||||||||||||
Consolidated
|
$
|
89,302
|
12.20
|
%
|
$
|
58,537
|
8.0
|
%
|
$
|
73,172
|
10.0
|
%
|
||||||
Tri Counties Bank
|
$
|
87,414
|
11.97
|
%
|
$
|
58,417
|
8.0
|
%
|
$
|
73,021
|
10.0
|
%
|
||||||
Tier I Capital (to Risk Weighted Assets):
|
||||||||||||||||||
Consolidated
|
$
|
80,156
|
10.95
|
%
|
$
|
29,268
|
4.0
|
%
|
$
|
43,903
|
6.0
|
%
|
||||||
Tri Counties Bank
|
$
|
78,255
|
10.72
|
%
|
$
|
29,208
|
4.0
|
%
|
$
|
43,812
|
6.0
|
%
|
||||||
Tier I Capital (to Average Assets):
|
||||||||||||||||||
Consolidated
|
$
|
80,156
|
8.41
|
%
|
$
|
38,128
|
4.0
|
%
|
$
|
47,660
|
5.0
|
%
|
||||||
Tri Counties Bank
|
$
|
78,255
|
8.22
|
%
|
$
|
38,069
|
4.0
|
%
|
$
|
47,587
|
5.0
|
%
|
2001 Quarters Ended
|
||||||||||||
December 31,
|
September 30,
|
June 30,
|
March 31,
|
|||||||||
(dollars in thousands except per share data)
|
||||||||||||
Interest income
|
$
|
17,284
|
$
|
18,613
|
$
|
18,714
|
$
|
18,761
|
||||
Interest expense
|
|
4,356
|
|
5,612
|
|
6,323
|
|
7,195
|
||||
|
|
|
|
|
|
|
|
|||||
Net interest income
|
|
12,928
|
|
13,001
|
|
12,391
|
|
11,566
|
||||
Provision for loan losses
|
|
1,150
|
|
600
|
|
775
|
|
1,875
|
||||
|
|
|
|
|
|
|
|
|||||
Net interest income after provision for loan losses
|
|
11,778
|
|
12,401
|
|
11,616
|
|
9,691
|
||||
Noninterest income
|
|
3,559
|
|
3,411
|
|
3,241
|
|
4,850
|
||||
Noninterest expense
|
|
10,233
|
|
10,517
|
|
10,284
|
|
9,770
|
||||
|
|
|
|
|
|
|
|
|||||
Income before income taxes
|
|
5,104
|
|
5,295
|
|
4,573
|
|
4,771
|
||||
Income tax expense
|
|
1,746
|
|
2,050
|
|
1,736
|
|
1,792
|
||||
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
3,358
|
$
|
3,245
|
$
|
2,837
|
$
|
2,979
|
||||
|
|
|
|
|
|
|
|
|||||
Per common share:
|
||||||||||||
Net income (diluted)
|
$
|
0.47
|
$
|
0.45
|
$
|
0.39
|
$
|
0.41
|
||||
|
|
|
|
|
|
|
|
|||||
Dividends
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
||||
|
|
|
|
|
|
|
|
|||||
2000 Quarters Ended
|
||||||||||||
December 31,
|
September 30,
|
June 30,
|
March 31,
|
|||||||||
(dollars in thousands except per share data)
|
||||||||||||
Interest income
|
$
|
19,887
|
$
|
19,912
|
$
|
18,960
|
$
|
17,894
|
||||
Interest expense
|
|
7,584
|
|
7,641
|
|
6,910
|
|
6,408
|
||||
|
|
|
|
|
|
|
|
|||||
Net interest income
|
|
12,303
|
|
12,271
|
|
12,050
|
|
11,486
|
||||
Provision for loan losses
|
|
1,500
|
|
1,800
|
|
900
|
|
800
|
||||
|
|
|
|
|
|
|
|
|||||
Net interest income after provision for loan losses
|
|
10,803
|
|
10,471
|
|
11,150
|
|
10,686
|
||||
Noninterest income
|
|
3,445
|
|
3,334
|
|
3,240
|
|
4,626
|
||||
Noninterest expense
|
|
10,116
|
|
9,305
|
|
9,450
|
|
9,024
|
||||
|
|
|
|
|
|
|
|
|||||
Income before income taxes
|
|
4,132
|
|
4,500
|
|
4,940
|
|
6,288
|
||||
Income tax expense
|
|
1,428
|
|
1,653
|
|
1,796
|
|
2,360
|
||||
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
2,704
|
$
|
2,847
|
$
|
3,144
|
$
|
3,928
|
||||
|
|
|
|
|
|
|
|
|||||
Per common share:
|
||||||||||||
Net income (diluted)
|
$
|
0.37
|
$
|
0.39
|
$
|
0.43
|
$
|
0.54
|
||||
|
|
|
|
|
|
|
|
|||||
Dividends
|
$
|
0.20
|
$
|
0.20
|
$
|
0.20
|
$
|
0.19
|
||||
|
|
|
|
|
|
|
|
Community Banking
|
Other
|
Total
|
|||||||
2001
|
|||||||||
Net interest income
|
$
|
48,178
|
$
|
1,708
|
$
|
49,886
|
|||
Noninterest income
|
|
12,154
|
|
2,907
|
|
15,061
|
|||
Noninterest expense
|
|
38,851
|
|
1,953
|
|
40,804
|
|||
Net income
|
|
10,729
|
|
1,690
|
|
12,419
|
|||
Assets
|
|
990,279
|
|
15,168
|
|
1,005,447
|
|||
2000
|
|||||||||
Net interest income
|
|
47,228
|
|
882
|
|
48,110
|
|||
Noninterest income
|
|
11,506
|
|
3,139
|
|
14,645
|
|||
Noninterest expense
|
|
35,913
|
|
1,982
|
|
37,895
|
|||
Net income
|
|
11,328
|
|
1,295
|
|
12,623
|
|||
Assets
|
|
956,447
|
|
15,624
|
|
972,071
|
|||
1999
|
|||||||||
Net interest income
|
|
43,540
|
|
679
|
|
44,219
|
|||
Noninterest income
|
|
9,668
|
|
2,433
|
|
12,101
|
|||
Noninterest expense
|
|
33,558
|
|
1,275
|
|
34,833
|
|||
Net income
|
|
10,237
|
|
1,166
|
|
11,403
|
|||
Assets
|
|
915,890
|
|
8,906
|
|
924,796
|
(Unaudited)
At September
30,
|
(Unaudited) At December 31,
|
|||||||||||
2002
|
2001
|
2001
|
||||||||||
Assets:
|
||||||||||||
Cash and due from banks
|
$
|
56,749
|
|
$
|
48,317
|
|
$
|
59,264
|
|
|||
Federal funds sold
|
|
23,400
|
|
|
27,000
|
|
|
18,700
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Cash and cash equivalents
|
|
80,149
|
|
|
75,317
|
|
|
77,964
|
|
|||
Investment securities available for sale
|
|
268,921
|
|
|
210,789
|
|
|
224,590
|
|
|||
Loans
|
||||||||||||
Commercial
|
|
142,290
|
|
|
151,772
|
|
|
130,054
|
|
|||
Consumer
|
|
191,601
|
|
|
149,258
|
|
|
155,046
|
|
|||
Real estate mortgages
|
|
313,191
|
|
|
322,096
|
|
|
326,897
|
|
|||
Real estate construction
|
|
36,472
|
|
|
45,031
|
|
|
46,735
|
|
|||
|
|
|
|
|
|
|
|
|
||||
|
683,554
|
|
|
668,157
|
|
|
658,732
|
|
||||
Allowance for loan losses
|
|
(14,382
|
)
|
|
(12,437
|
)
|
|
(13,058
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Loans, net of allowance for loan losses
|
|
669,172
|
|
|
655,720
|
|
|
645,674
|
|
|||
Premises and equipment, net
|
|
16,583
|
|
|
16,510
|
|
|
16,457
|
|
|||
Cash value of life insurance
|
|
15,045
|
|
|
14,559
|
|
|
14,602
|
|
|||
Other real estate owned
|
|
|
|
|
723
|
|
|
71
|
|
|||
Accrued interest receivable
|
|
5,552
|
|
|
6,087
|
|
|
5,522
|
|
|||
Deferred income taxes
|
|
7,957
|
|
|
8,164
|
|
|
9,334
|
|
|||
Intangible assets
|
|
4,387
|
|
|
5,262
|
|
|
5,070
|
|
|||
Other assets
|
|
5,757
|
|
|
3,019
|
|
|
6,163
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Total Assets
|
$
|
1,073,523
|
|
$
|
996,150
|
|
$
|
1,005,447
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Liabilities:
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest-bearing demand
|
$
|
202,895
|
|
$
|
177,970
|
|
$
|
190,386
|
|
|||
Interest-bearing demand
|
|
175,883
|
|
|
155,304
|
|
|
165,542
|
|
|||
Savings
|
|
268,182
|
|
|
228,367
|
|
|
247,399
|
|
|||
Time certificates, $100,000 and over
|
|
86,945
|
|
|
80,865
|
|
|
70,302
|
|
|||
Other time certificates
|
|
203,990
|
|
|
216,974
|
|
|
206,764
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Total deposits
|
|
937,895
|
|
|
859,480
|
|
|
880,393
|
|
|||
Accrued interest payable
|
|
2,608
|
|
|
4,350
|
|
|
3,488
|
|
|||
Other Liabilities
|
|
13,667
|
|
|
10,977
|
|
|
11,677
|
|
|||
Long-term debt and other borrowings
|
|
22,932
|
|
|
32,963
|
|
|
22,956
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Total Liabilities
|
|
977,102
|
|
|
907,770
|
|
|
918,514
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Shareholders Equity:
|
||||||||||||
Authorized20,000,000 shares of common stock
Issued and outstanding:
|
7,035,590 at September 30, 2002
|
|
50,188
|
||||||||
7,018,080 at September 30, 2001
|
|
49,395
|
||||||||
7,000,980 at December 31, 2001
|
|
49,679
|
|
|||||||
Retained earnings
|
|
43,900
|
|
37,974
|
|
37,909
|
|
|||
Accumulated other comprehensive income, net
|
|
2,333
|
|
1,011
|
|
(655
|
)
|
|||
|
|
|
|
|
|
|
||||
Total Shareholders Equity
|
|
96,421
|
|
88,380
|
|
86,933
|
|
|||
|
|
|
|
|
|
|
||||
Total Liabilities and Shareholders Equity
|
$
|
1,073,523
|
$
|
996,150
|
$
|
1,005,447
|
|
|||
|
|
|
|
|
|
|
(Unaudited)
Three months
ended
|
(Unaudited)
Nine months
ended
|
|||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||
Interest Income:
|
||||||||||||
Interest and fees on loans
|
$
|
13,333
|
$
|
15,132
|
$
|
39,387
|
$
|
44,993
|
||||
Interest on federal funds sold
|
|
143
|
|
370
|
|
476
|
|
1,321
|
||||
Interest on investment securities available for sale
|
||||||||||||
Taxable
|
|
2,410
|
|
2,202
|
|
6,949
|
|
7,158
|
||||
Tax exempt
|
|
549
|
|
555
|
|
1,656
|
|
1,666
|
||||
|
|
|
|
|
|
|
|
|||||
Total interest income
|
|
16,435
|
|
18,259
|
|
48,468
|
|
55,138
|
||||
|
|
|
|
|
|
|
|
|||||
Interest Expense:
|
||||||||||||
Interest on interest-bearing demand deposits
|
|
115
|
|
368
|
|
350
|
|
1,325
|
||||
Interest on savings
|
|
656
|
|
1,107
|
|
2,011
|
|
3,899
|
||||
Interest on time certificates of deposit
|
|
2,129
|
|
3,623
|
|
6,340
|
|
12,380
|
||||
Interest on short-term borrowing
|
|
1
|
|
2
|
|
1
|
|
3
|
||||
Interest on long-term debt
|
|
326
|
|
512
|
|
967
|
|
1,523
|
||||
|
|
|
|
|
|
|
|
|||||
Total interest expense
|
|
3,227
|
|
5,612
|
|
9,669
|
|
19,130
|
||||
|
|
|
|
|
|
|
|
|||||
Net Interest Income
|
|
13,208
|
|
12,647
|
|
38,799
|
|
36,008
|
||||
|
|
|
|
|
|
|
|
|||||
Provision for loan losses
|
|
700
|
|
600
|
|
2,000
|
|
3,250
|
||||
|
|
|
|
|
|
|
|
|||||
Net Interest Income After Provision for Loan Losses
|
|
12,508
|
|
12,047
|
|
36,799
|
|
32,758
|
||||
|
|
|
|
|
|
|
|
|||||
Noninterest Income:
|
||||||||||||
Service charges and fees
|
|
3,521
|
|
2,045
|
|
7,635
|
|
6,015
|
||||
Gain on sale of investments
|
|
|
|
|
|
|
|
1,756
|
||||
Gain on sale of loans
|
|
752
|
|
494
|
|
2,254
|
|
1,292
|
||||
Commissions on sale of non-deposit investment products
|
|
712
|
|
678
|
|
1,989
|
|
1,865
|
||||
Other
|
|
428
|
|
496
|
|
1,304
|
|
1,390
|
||||
|
|
|
|
|
|
|
|
|||||
Total Noninterest Income
|
|
5,413
|
|
3,713
|
|
13,182
|
|
12,318
|
||||
|
|
|
|
|
|
|
|
|||||
Noninterest Expense:
|
||||||||||||
Salaries and related benefits
|
|
6,344
|
|
5,431
|
|
17,856
|
|
15,765
|
||||
Other
|
|
5,789
|
|
5,034
|
|
15,642
|
|
14,672
|
||||
|
|
|
|
|
|
|
|
|||||
Total Noninterest Expense
|
|
12,133
|
|
10,465
|
|
33,498
|
|
30,437
|
||||
|
|
|
|
|
|
|
|
|||||
Income Before Income Taxes
|
|
5,788
|
|
5,295
|
|
16,483
|
|
14,639
|
||||
|
|
|
|
|
|
|
|
|||||
Provision for income taxes
|
|
2,161
|
|
2,050
|
|
6,163
|
|
5,578
|
||||
|
|
|
|
|
|
|
|
|||||
Net Income
|
$
|
3,627
|
$
|
3,245
|
$
|
10,320
|
$
|
9,061
|
||||
|
|
|
|
|
|
|
|
Comprehensive Income:
|
|||||||||||||
Change in unrealized gain (loss) on securities available for sale, net
|
|
940
|
|
1,411
|
|
2,988
|
|
1,695
|
|
||||
Net change in minimum pension liability
|
|
|
|
|
|
|
|
(360
|
)
|
||||
|
|
|
|
|
|
|
|
|
|||||
Comprehensive Income
|
$
|
4,567
|
$
|
4,656
|
$
|
13,308
|
$
|
10,396
|
|
||||
|
|
|
|
|
|
|
|
|
|||||
Average Shares Outstanding
|
|
7,026
|
|
7,044
|
|
7,010
|
|
7,087
|
|
||||
Diluted Average Shares Outstanding
|
|
7,231
|
|
7,231
|
|
7,188
|
|
7,237
|
|
||||
Per Share Data
|
|||||||||||||
Basic Earnings
|
$
|
0.52
|
$
|
0.46
|
$
|
1.47
|
$
|
1.28
|
|
||||
Diluted Earnings
|
$
|
0.50
|
$
|
0.45
|
$
|
1.44
|
$
|
1.25
|
|
||||
Dividends Paid
|
$
|
0.20
|
$
|
0.20
|
$
|
0.60
|
$
|
0.60
|
|
Accumulated
|
||||||||||||||||
Common Stock
|
Retained Earnings
|
Other Comprehensive Income, net
|
Total
|
|||||||||||||
Balance, December 31, 2000
|
$
|
50,428
|
|
$
|
35,129
|
|
($
|
324
|
)
|
$
|
85,233
|
|
||||
Net income for the period
|
|
9,061
|
|
|
9,061
|
|
||||||||||
Stock issued, including stock option tax benefits
|
|
386
|
|
|
386
|
|
||||||||||
Repurchase of common stock
|
|
(1,419
|
)
|
|
(1,979
|
)
|
|
(3,398
|
)
|
|||||||
Dividends
|
|
(4,237
|
)
|
|
(4,237
|
)
|
||||||||||
Unrealized gain on securities available for sale, net
|
|
1,695
|
|
|
1,695
|
|
||||||||||
Change in minimum pension liability, net
|
|
(360
|
)
|
|
(360
|
)
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance September 30, 2001
|
$
|
49,395
|
|
$
|
37,974
|
|
$
|
1,011
|
|
$
|
88,380
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance, December 31, 2001
|
$
|
49,679
|
|
$
|
37,909
|
|
($
|
655
|
)
|
$
|
86,933
|
|
||||
Net income for the period
|
|
10,320
|
|
|
10,320
|
|
||||||||||
Stock issued, including
|
||||||||||||||||
stock option tax benefits
|
|
579
|
|
|
579
|
|
||||||||||
Repurchase of common stock
|
|
(70
|
)
|
|
(119
|
)
|
|
(189
|
)
|
|||||||
Dividends
|
|
(4,210
|
)
|
|
(4,210
|
)
|
||||||||||
Unrealized gain on securities available for sale, net
|
|
2,988
|
|
|
2,988
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Balance September 30, 2002
|
$
|
50,188
|
|
$
|
43,900
|
|
$
|
2,333
|
|
$
|
96,421
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30,
|
||||||||
2002
|
2001
|
|||||||
Operating Activities:
|
||||||||
Net income
|
$
|
10,320
|
|
$
|
9,061
|
|
||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization of property and equipment
|
|
1,956
|
|
|
1,891
|
|
||
Amortization of intangible assets
|
|
683
|
|
|
683
|
|
||
Provision for loan losses
|
|
2,000
|
|
|
3,250
|
|
||
Amortization of investment securities premium, net
|
|
1,080
|
|
|
139
|
|
||
Deferred income taxes
|
|
(108
|
)
|
|
(365
|
)
|
||
Investment security gains, net
|
|
|
|
|
(1,756
|
)
|
||
Originations of loans for resale
|
|
(113,271
|
)
|
|
(84,545
|
)
|
||
Proceeds from sale of loans originated for resale
|
|
114,227
|
|
|
85,028
|
|
||
Gain on sale of loans
|
|
(2,254
|
)
|
|
(1,292
|
)
|
||
Amortization of mortgage servicing rights
|
|
498
|
|
|
223
|
|
||
Loss (gain) on sale of fixed assets
|
|
10
|
|
|
(4
|
)
|
||
Gain on sale of other real estate owned, net
|
|
(8
|
)
|
|
(48
|
)
|
||
Provision for losses on other real estate owned
|
|
|
|
|
18
|
|
||
Change in assets and liabilities:
|
||||||||
(Increase) decrease in interest receivable
|
|
(30
|
)
|
|
848
|
|
||
Decrease in interest payable
|
|
(880
|
)
|
|
(895
|
)
|
||
Increase in other assets and liabilities
|
|
2,547
|
|
|
389
|
|
||
|
|
|
|
|
|
|||
Net Cash Provided by Operating Activities
|
|
16,770
|
|
|
12,625
|
|
||
|
|
|
|
|
|
|||
Investing Activities:
|
||||||||
Proceeds from maturities of securities available-for-sale
|
|
87,365
|
|
|
63,331
|
|
||
Proceeds from sales of securities available-for-sale
|
|
|
|
|
14,120
|
|
||
Purchases of securities available-for-sale
|
|
(127,999
|
)
|
|
(54,738
|
)
|
||
Net increase in loans
|
|
(25,498
|
)
|
|
(30,576
|
)
|
||
Proceeds from sale of premises and equipment
|
|
16
|
|
|
23
|
|
||
Purchases of property and equipment
|
|
(1,902
|
)
|
|
(1,426
|
)
|
||
Proceeds from sale of other real estate owned
|
|
79
|
|
|
1,075
|
|
||
|
|
|
|
|
|
|||
Net Cash Used by Investing Activities
|
|
(67,939
|
)
|
|
(8,191
|
)
|
||
|
|
|
|
|
|
|||
Financing Activities:
|
||||||||
Net increase in deposits
|
|
57,502
|
|
|
21,648
|
|
||
Net decrease in federal funds purchased
|
|
|
|
|
(500
|
)
|
||
Payments of principal on long-term debt agreements
|
|
(24
|
)
|
|
(1,020
|
)
|
||
Repurchase of Common Stock
|
|
(189
|
)
|
|
(3,398
|
)
|
||
Dividends paid
|
|
(4,210
|
)
|
|
(4,237
|
)
|
||
Exercise of stock options/issuance of Common Stock
|
|
275
|
|
|
200
|
|
||
|
|
|
|
|
|
|||
Net Cash Provided by Financing Activities
|
|
53,354
|
|
|
12,693
|
|
||
|
|
|
|
|
|
Net Increase in Cash and Cash Equivalents
|
|
2,185
|
|
17,127
|
||
|
|
|
|
|||
Cash and Cash Equivalents and Beginning of Period
|
|
77,964
|
|
58,190
|
||
|
|
|
|
|||
Cash and Cash Equivalents at End of Period
|
$
|
80,149
|
$
|
75,317
|
||
|
|
|
|
|||
Supplemental Disclosure of Noncash Activities:
|
||||||
Unrealized gain (loss) on securities available for sale
|
$
|
4,777
|
$
|
2,740
|
||
Loans transferred to other real estate owned
|
|
|
$
|
327
|
||
Supplemental Disclosure of Cash Flow Activity:
|
||||||
Cash paid for interest expense
|
$
|
10,549
|
$
|
20,025
|
||
Cash paid for income taxes
|
$
|
4,700
|
$
|
5,775
|
||
Income tax benefit from stock option exercises
|
$
|
304
|
$
|
186
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
|||||||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||||||
Net Interest Income (FTE)
|
$
|
13,520
|
|
$
|
12,923
|
|
$
|
39,742
|
|
$
|
36,958
|
|
||||
Provision for loan losses
|
|
(700
|
)
|
|
(600
|
)
|
|
(2,000
|
)
|
|
(3,250
|
)
|
||||
Noninterest income
|
|
5,413
|
|
|
3,713
|
|
|
13,182
|
|
|
12,318
|
|
||||
Noninterest expense
|
|
(12,133
|
)
|
|
(10,465
|
)
|
|
(33,498
|
)
|
|
(30,437
|
)
|
||||
Provision for income taxes (FTE)
|
|
(2,473
|
)
|
|
(2,326
|
)
|
|
(7,106
|
)
|
|
(6,528
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
3,627
|
|
$
|
3,245
|
|
$
|
10,320
|
|
$
|
9,061
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Average shares outstanding
|
|
7,026
|
|
|
7,044
|
|
|
7,010
|
|
|
7,087
|
|
||||
Diluted average shares outstanding
|
|
7,231
|
|
|
7,231
|
|
|
7,188
|
|
|
7,237
|
|
||||
Shares outstanding at period end
|
|
7,036
|
|
|
7,018
|
|
|
7,036
|
|
|
7,018
|
|
||||
As Reported:
|
||||||||||||||||
Basic earnings per share
|
$
|
0.52
|
|
$
|
0.46
|
|
$
|
1.47
|
|
$
|
1.28
|
|
||||
Diluted earnings per share
|
$
|
0.50
|
|
$
|
0.45
|
|
$
|
1.44
|
|
$
|
1.25
|
|
||||
Return on assets
|
|
1.39
|
%
|
|
1.32
|
%
|
|
1.36
|
%
|
|
1.25
|
%
|
||||
Return on equity
|
|
15.17
|
%
|
|
14.75
|
%
|
|
14.92
|
%
|
|
13.90
|
%
|
||||
Net interest margin
|
|
5.67
|
%
|
|
5.78
|
%
|
|
5.72
|
%
|
|
5.58
|
%
|
||||
Net loan recoveries (losses) to average loans
|
|
0.04
|
%
|
|
(0.05
|
%)
|
|
(0.14
|
%)
|
|
(0.51
|
%)
|
||||
Efficiency ratio (FTE)
|
|
64.08
|
%
|
|
62.91
|
%
|
|
63.29
|
%
|
|
61.77
|
%
|
||||
Average Balances:
|
||||||||||||||||
Total assets
|
$
|
1,044,518
|
|
$
|
982,387
|
|
$
|
1,015,068
|
|
$
|
970,086
|
|
||||
Earning assets
|
|
954,611
|
|
|
894,670
|
|
|
926,387
|
|
|
883,816
|
|
||||
Total loans
|
|
676,009
|
|
|
661,630
|
|
|
655,682
|
|
|
644,447
|
|
||||
Total deposits
|
|
908,675
|
|
|
844,741
|
|
|
883,898
|
|
|
834,161
|
|
||||
Shareholders equity
|
|
95,645
|
|
|
88,005
|
|
|
92,212
|
|
|
86,886
|
|
||||
Balances at Period End:
|
||||||||||||||||
Total assets
|
$
|
1,073,523
|
|
$
|
996,150
|
|
||||||||||
Earning assets
|
|
975,875
|
|
|
905,946
|
|
||||||||||
Total loans
|
|
683,554
|
|
|
668,157
|
|
||||||||||
Total deposits
|
|
937,895
|
|
|
859,480
|
|
||||||||||
Shareholders equity
|
|
96,421
|
|
|
88,380
|
|
||||||||||
Financial Ratios at Period End:
|
||||||||||||||||
Allowance for loan losses to loans
|
|
2.10
|
%
|
|
1.86
|
%
|
||||||||||
Book value per share
|
$
|
13.70
|
|
$
|
12.59
|
|
||||||||||
Equity to assets
|
|
8.98
|
%
|
|
8.87
|
%
|
||||||||||
Total capital to risk assets
|
|
11.89
|
%
|
|
11.69
|
%
|
||||||||||
Dividends Paid Per Share
|
$
|
0.20
|
|
$
|
0.20
|
|
$
|
0.60
|
|
$
|
0.60
|
|
||||
Dividend Payout Ratio
|
|
38.75
|
%
|
|
43.42
|
%
|
|
40.80
|
%
|
|
47.07
|
%
|
(Dollar in Thousands)
|
January 1,
2002
|
Additions
|
Reductions
|
September 30,
2002
|
Core Deposit Intangibles
|
$
|
10,795
|
|
$
|
10,795
|
|
||||||||
Accumulated Amortization
|
|
(5,725
|
)
|
|
(683
|
)
|
|
(6,408
|
)
|
|||||
|
|
|
|
|
|
|
|
|
||||||
Core Deposit Intangibles, net
|
$
|
5,070
|
|
($
|
683
|
)
|
$
|
4,387
|
|
|||||
|
|
|
|
|
|
|
|
|
(Dollar in Thousands)
|
January 1,
2002
|
Additions
|
Reductions
|
September 30,
2002
|
|||||||||
Mortgage Servicing Rights
|
$
|
1,512
|
$
|
1,298
|
($
|
498
|
)
|
$
|
2,312
|
||||
|
|
|
|
|
|
|
|
|
Community Banking
|
Other
|
Total
|
|||||||
Three Months Ended September 30, 2002
|
|||||||||
Net interest income
|
$
|
12,948
|
$
|
260
|
$
|
13,208
|
|||
Noninterest income
|
|
4,534
|
|
879
|
|
5,413
|
|||
Noninterest expense
|
|
11,567
|
|
566
|
|
12,133
|
Net income
|
|
3,272
|
|
355
|
|
3,627
|
|||
Assets
|
$
|
1,057,071
|
$
|
16,452
|
$
|
1,073,523
|
|||
Three Months Ended September 30, 2001
|
|||||||||
Net interest income
|
$
|
12,478
|
$
|
169
|
$
|
12,647
|
|||
Noninterest income
|
|
2,954
|
|
759
|
|
3,713
|
|||
Noninterest expense
|
|
9,826
|
|
639
|
|
10,465
|
|||
Net income
|
|
3,066
|
|
179
|
|
3,245
|
|||
Assets
|
$
|
980,270
|
$
|
15,880
|
$
|
996,150
|
|||
Nine Months Ended September 30, 2002
|
|||||||||
Net interest income
|
$
|
38,053
|
$
|
746
|
$
|
38,799
|
|||
Noninterest income
|
|
10,809
|
|
2,373
|
|
13,182
|
|||
Noninterest expense
|
|
31,871
|
|
1,627
|
|
33,498
|
|||
Net income
|
|
9,395
|
|
925
|
|
10,320
|
|||
Assets
|
$
|
1,057,071
|
$
|
16,452
|
$
|
1,073,523
|
|||
Nine Months Ended September 30, 2001
|
|||||||||
Net interest income
|
$
|
35,388
|
$
|
620
|
$
|
36,008
|
|||
Noninterest income
|
|
10,233
|
|
2,085
|
|
12,318
|
|||
Noninterest expense
|
|
28,692
|
|
1,745
|
|
30,437
|
|||
Net income
|
|
8,466
|
|
595
|
|
9,061
|
|||
Assets
|
$
|
980,270
|
$
|
15,880
|
$
|
996,150
|
December 31,
|
|||||||
2001
|
2000
|
||||||
Assets
|
|||||||
Cash and due from banks
|
$
|
5,898,143
|
$
|
6,222,460
|
|
||
Interest-bearing deposits
|
|
5,430,320
|
|
170,036
|
|
||
Federal funds sold
|
|
3,302,000
|
|
714,000
|
|
||
Investment securities (market value of $39,116,350 in
2001 and $36,418,750 in 2000) (Notes 2 and 12)
|
|
39,082,324
|
|
36,397,197
|
|
||
Loans, less reserve for loan losses of $984,913 in
2001 and $818,126 in 2000 (Notes 3, 7 and 13)
|
|
72,561,635
|
|
69,914,359
|
|
||
Bank premises and equipment, net (Note 4)
|
|
1,428,075
|
|
1,597,183
|
|
||
Accrued interest receivable and other assets (Note 5)
|
|
1,201,746
|
|
1,499,496
|
|
||
|
|
|
|
|
|||
$
|
128,904,243
|
$
|
116,514,731
|
|
|||
|
|
|
|
|
|||
Liabilities and Shareholders Equity
|
|||||||
Deposits:
|
|||||||
Non-interest bearing
|
$
|
23,273,698
|
$
|
19,079,076
|
|
||
Interest bearing (Note 6)
|
|
92,895,294
|
|
86,316,450
|
|
||
|
|
|
|
|
|||
Total deposits
|
|
116,168,992
|
|
105,395,526
|
|
||
Accrued interest payable and other liabilities
|
|
416,875
|
|
620,840
|
|
||
|
|
|
|
|
|||
Total liabilities
|
|
116,585,867
|
|
106,016,366
|
|
||
|
|
|
|
|
|||
Commitments and contingencies (Note 7)
|
|||||||
Shareholders equity (Note 8): Common stockpar value
$2.50 per share; authorized2,500,000 shares,
issued and outstanding1,224,190 shares in 2001
and 1,203,773 shares in
2000
|
|
3,060,475
|
|
3,009,432
|
|
||
Additional paid-in capital
|
|
4,231,914
|
|
4,189,178
|
|
||
Retained earnings
|
|
4,832,457
|
|
3,466,672
|
|
||
Accumulated other comprehensive income (loss)
(Notes 2 and 9)
|
|
193,530
|
|
(166,917
|
)
|
||
|
|
|
|
|
|||
Total shareholders equity
|
|
12,318,376
|
|
10,498,365
|
|
||
|
|
|
|
|
|||
$
|
128,904,243
|
$
|
116,514,731
|
|
|||
|
|
|
|
|
Years Ended December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
Interest income:
|
|||||||||
Interest and fees on loans
|
$
|
6,114,267
|
$
|
6,165,070
|
$
|
5,516,177
|
|||
Interest on federal funds sold
|
|
226,706
|
|
142,466
|
|
75,228
|
|||
Interest on investment securities:
|
|||||||||
Taxable
|
|
2,145,518
|
|
2,288,491
|
|
2,131,695
|
|||
Exempt from federal income taxes
|
|
64,222
|
|
69,171
|
|
73,296
|
|||
|
|
|
|
|
|
||||
Total interest income
|
|
8,550,713
|
|
8,665,198
|
|
7,796,396
|
|||
|
|
|
|
|
|
||||
Interest expense:
|
|||||||||
Interest on deposits (Note 6)
|
|
3,247,983
|
|
3,773,707
|
|
3,190,419
|
|||
Interest on short-term borrowings (Note 12)
|
|
29,747
|
|
3,393
|
|||||
|
|
|
|
|
|
||||
Total interest expense
|
|
3,247,983
|
|
3,803,454
|
|
3,193,812
|
|||
|
|
|
|
|
|
||||
Net interest income
|
|
5,302,730
|
|
4,861,744
|
|
4,602,584
|
|||
Provision for loan losses (Note 3)
|
|
169,000
|
|
145,000
|
|||||
|
|
|
|
|
|
||||
Net interest income after provision for loan losses
|
|
5,133,730
|
|
4,861,744
|
|
4,457,584
|
|||
|
|
|
|
|
|
||||
Non-interest income:
|
|||||||||
Service charges
|
|
335,242
|
|
302,579
|
|
313,654
|
|||
Gain on sales and calls of investment securities
|
|
141,351
|
|||||||
Other income
|
|
148,474
|
|
132,008
|
|
159,017
|
|||
|
|
|
|
|
|
||||
Total non-interest income
|
|
625,067
|
|
434,587
|
|
472,671
|
|||
|
|
|
|
|
|
||||
Other expenses:
|
|||||||||
Salaries and employee benefits (Notes 3 and 14)
|
|
1,492,409
|
|
1,486,475
|
|
1,446,266
|
|||
Occupancy (Notes 4 and 7)
|
|
197,110
|
|
181,242
|
|
181,662
|
|||
Equipment (Note 4)
|
|
272,374
|
|
262,398
|
|
236,347
|
|||
Other (Note 11)
|
|
782,366
|
|
733,373
|
|
732,452
|
|||
|
|
|
|
|
|
||||
Total other expenses
|
|
2,744,259
|
|
2,663,488
|
|
2,596,727
|
|||
|
|
|
|
|
|
||||
Income before income taxes
|
|
3,014,538
|
|
2,632,843
|
|
2,333,528
|
|||
Income taxes (Note 5)
|
|
1,226,000
|
|
1,054,000
|
|
900,000
|
|||
|
|
|
|
|
|
||||
Net income
|
$
|
1,788,538
|
$
|
1,578,843
|
$
|
1,433,528
|
|||
|
|
|
|
|
|
||||
Basic earnings per share (Note 8)
|
$
|
1.47
|
$
|
1.31
|
$
|
1.20
|
|||
|
|
|
|
|
|
||||
Diluted earnings per share (Note 8)
|
$
|
1.41
|
$
|
1.26
|
$
|
1.15
|
|||
|
|
|
|
|
|
For the Years Ended December 31, 2001, 2000 and 1999
|
||||||||||||||||||||||||||||
Common Stock
|
Additional Paid-In
Capital
|
Retained
Earnings
|
Accumulated Other Comprehensive
Income (Loss)
|
Shareholders
Equity
|
Comprehensive
Income
|
|||||||||||||||||||||||
Shares
|
Amount
|
|||||||||||||||||||||||||||
Balance, January 1, 1999
|
$
|
1,084,816
|
|
$
|
2,712,040
|
|
$
|
3,295,887
|
|
$
|
1,922,117
|
|
$
|
(26,788
|
)
|
$
|
7,903,256
|
|
||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
|
1,433,528
|
|
|
1,433,528
|
|
$
|
1,433,528
|
|
|||||||||||||||||||
Other comprehensive loss, net of tax
(Note 9): |
||||||||||||||||||||||||||||
Unrealized losses on available-for-sale investment securities
|
|
(679,010
|
)
|
|
(679,010
|
)
|
|
(679,010
|
)
|
|||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
Total comprehensive income
|
|
754,518
|
|
|||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
Issuance of common stock under stock option plan (Note 8)
|
|
764
|
|
|
1,910
|
|
|
889
|
|
|
2,799
|
|
||||||||||||||||
10% stock dividend (Note 8)
|
|
108,491
|
|
|
271,227
|
|
|
895,047
|
|
|
(1,166,274
|
)
|
||||||||||||||||
Fractional shares redeemed
|
|
(210
|
)
|
|
(525
|
)
|
|
(874
|
)
|
|
(1,399
|
)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 1999
|
|
1,193,861
|
|
|
2,984,652
|
|
|
4,191,823
|
|
|
2,188,497
|
|
|
(705,798
|
)
|
|
8,659,174
|
|
||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
|
1,578,843
|
|
|
1,578,843
|
|
|
1,578,843
|
|
|||||||||||||||||||
Other comprehensive income, net of tax (Note 9):
|
||||||||||||||||||||||||||||
Unrealized gains on available-for-sale investment securities
|
|
538,881
|
|
|
538,881
|
|
|
538,881
|
|
|||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
Total comprehensive income
|
|
2,117,724
|
|
|||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
Cash dividend ($.25 per share)
(Note 8)
|
|
(300,668
|
)
|
|
(300,668
|
)
|
||||||||||||||||||||||
Issuance of common stock under stock option plan (Note 8)
|
|
13,994
|
|
|
34,985
|
|
|
34,099
|
|
|
69,084
|
|
||||||||||||||||
Retirement of common stock
|
|
(4,082
|
)
|
|
(10,205
|
)
|
|
(36,744
|
)
|
|
(46,949
|
)
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2000
|
|
1,203,773
|
|
|
3,009,432
|
|
|
4,189,178
|
|
|
3,466,672
|
|
|
(166,917
|
)
|
|
10,498,365
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Comprehensive income:
|
||||||||||||||||||||||||||||
Net income
|
|
1,788,538
|
|
|
1,788,538
|
|
|
1,788,538
|
|
|||||||||||||||||||
Other comprehensive income, net of tax (Note 9):
|
||||||||||||||||||||||||||||
Unrealized gains on available-for-sale investment securities
|
|
360,447
|
|
|
360,447
|
|
|
360,447
|
|
|||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
Total comprehensive income
|
|
2,148,985
|
|
|||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
Cash dividend ($.35 per share)
(Note 8)
|
|
(422,753
|
)
|
|
(422,753
|
)
|
||||||||||||||||||||||
Issuance of common stock under stock option plan (Note 8)
|
|
20,417
|
|
|
51,043
|
|
|
42,736
|
|
|
93,779
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2001
|
|
1,224,190
|
|
|
3,060,475
|
|
|
4,231,914
|
|
|
4,832,457
|
|
|
193,530
|
|
|
12,318,376
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Disclosure of reclassification amount, net of taxes (Note 9):
|
||||||||||||||||||||||||||||
Net unrealized holding gains arising during 2001
|
$
|
444,311
|
|
|||||||||||||||||||||||||
Less: reclassification adjustment for net gains included in net income
|
|
83,864
|
|
|||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||
Net unrealized gains on available-for-sale investment securities
|
$
|
360,447
|
|
|||||||||||||||||||||||||
|
|
|
Years Ended December 31,
|
||||||||||||
2001
|
2000
|
1999
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
1,788,538
|
|
$
|
1,578,843
|
|
$
|
1,433,528
|
|
|||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Provision for loan losses
|
|
169,000
|
|
|
145,000
|
|
||||||
Increase (decrease) in deferred loan origination fees and costs, net
|
|
38,913
|
|
|
32,869
|
|
|
(54,995
|
)
|
|||
Depreciation and amortization
|
|
211,049
|
|
|
201,804
|
|
|
169,603
|
|
|||
Amortization of investment security premiums and discounts, net
|
|
67,834
|
|
|
9,271
|
|
|
43,507
|
|
|||
Decrease (increase) in accrued interest receivable and other assets
|
|
139,756
|
|
|
(55,219
|
)
|
|
(157,127
|
)
|
|||
(Decrease) increase in accrued interest payable and other liabilities
|
|
(203,965
|
)
|
|
135,952
|
|
|
114,983
|
|
|||
Deferred taxes
|
|
(98,000
|
)
|
|
(12,000
|
)
|
|
(77,000
|
)
|
|||
Gain on sales and calls of investment securities
|
|
(141,351
|
)
|
|||||||||
|
|
|
|
|
|
|
|
|
||||
Net cash provided by operating activities
|
|
1,971,774
|
|
|
1,891,520
|
|
|
1,617,499
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Cash flows from investing activities:
|
||||||||||||
Proceeds from matured held-to-maturity investment securities
|
|
160,000
|
|
|
140,000
|
|
|
500,000
|
|
|||
Purchase of held-to-maturity investment securities
|
|
(200,000
|
)
|
|||||||||
Proceeds from matured available-for-sale investment securities
|
|
6,252,000
|
|
|
6,102,000
|
|
|
28,161,858
|
|
|||
Proceeds from sales and calls of available-for-sale investment securities
|
|
26,270,075
|
|
|
2,000,000
|
|
|
1,000,000
|
|
|||
Proceeds from redeemed Federal Home Loan Bank stock
|
|
131,500
|
|
|||||||||
Purchase of available-for-sale investment securities
|
|
(38,216,168
|
)
|
|
(4,723,694
|
)
|
|
(34,508,508
|
)
|
|||
Proceeds from principal repayments from held-to-maturity
mortgage-related securities |
|
278,432
|
|
|
735,161
|
|
||||||
Proceeds from principal repayments from available-for-sale
mortgage-related securities |
|
3,538,924
|
|
|
886,628
|
|
|
2,406,650
|
|
|||
Increase in loans, net
|
|
(2,855,189
|
)
|
|
(6,178,385
|
)
|
|
(8,038,211
|
)
|
|||
Purchase of equipment
|
|
(41,941
|
)
|
|
(85,461
|
)
|
|
(235,801
|
)
|
|||
Proceeds from sale of equipment
|
|
21,853
|
|
|||||||||
|
|
|
|
|
|
|
|
|
||||
Net cash used in investing activities
|
|
(4,892,299
|
)
|
|
(1,427,127
|
)
|
|
(10,178,851
|
)
|
|||
|
|
|
|
|
|
|
|
|
Available-for-Sale:
|
|||||||||||||
2001
|
|||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Market
Value
|
||||||||||
U.S. Treasury securities
|
$
|
501,987
|
$
|
22,013
|
$
|
524,000
|
|||||||
U.S. Government agencies
|
|
20,888,757
|
|
213,846
|
$
|
(88,603
|
)
|
|
21,014,000
|
||||
U.S. Government guaranteed mortgage-related securities
|
|
15,554,554
|
|
213,645
|
|
(31,199
|
)
|
|
15,737,000
|
||||
Federal Home Loan Bank stock
|
|
318,700
|
|
318,700
|
|||||||||
Federal Reserve Bank stock
|
|
215,650
|
|
215,650
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||
$
|
37,479,648
|
$
|
449,504
|
$
|
(119,802
|
)
|
$
|
37,809,350
|
|||||
|
|
|
|
|
|
|
|
|
2000
|
|||||||||||||
Amortized Cost
|
Gross Unrealized Gains
|
Gross Unrealized Losses
|
Estimated
Market
Value
|
||||||||||
U.S. Treasury securities
|
$
|
3,017,128
|
$
|
9,053
|
$
|
(181
|
)
|
$
|
3,026,000
|
||||
U.S. Government agencies
|
|
18,738,066
|
|
4,825
|
|
(156,891
|
)
|
|
18,586,000
|
||||
U.S. Government guaranteed mortgage-related securities
|
|
12,978,545
|
|
15,558
|
|
(159,103
|
)
|
|
12,835,000
|
||||
Federal Home Loan Bank stock
|
|
300,100
|
|
300,100
|
|||||||||
Federal Reserve Bank stock
|
|
215,650
|
|
215,650
|
|||||||||
|
|
|
|
|
|
|
|
|
|||||
$
|
35,249,489
|
$
|
29,436
|
$
|
(316,175
|
)
|
$
|
34,962,750
|
|||||
|
|
|
|
|
|
|
|
|
Held-to-Maturity:
|
|||||||||||||
2001
|
|||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Market
Value
|
||||||||||
Obligations of states and political subdivisions
|
$
|
1,272,974
|
$
|
34,026
|
$
|
|
|
$
|
1,307,000
|
||||
|
|
|
|
|
|
|
|
|
|||||
2000
|
|||||||||||||
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Estimated
Market
Value
|
||||||||||
Obligations of states and political subdivisions
|
$
|
1,434,447
|
$
|
26,134
|
$
|
(4,581
|
)
|
$
|
1,456,000
|
||||
|
|
|
|
|
|
|
|
|
Available-for-Sale
|
Held-to-Maturity
|
|||||||||||
Amortized Cost
|
Estimated Market
Value |
Amortized Cost
|
Estimated Market Value
|
|||||||||
Within one year
|
$
|
15,000
|
$
|
16,000
|
||||||||
After one year through five years
|
$
|
19,000,895
|
$
|
19,117,000
|
|
652,974
|
|
668,000
|
||||
After five years through ten years
|
|
1,250,000
|
|
1,276,000
|
|
305,000
|
|
311,000
|
||||
After ten years
|
|
1,000,000
|
|
1,005,000
|
|
300,000
|
|
312,000
|
||||
|
|
|
|
|
|
|
|
|||||
|
21,250,895
|
|
21,398,000
|
$
|
1,272,974
|
$
|
1,307,000
|
|||||
|
|
|
|
|||||||||
Investment securities not due at a single maturity date:
|
||||||||||||
U.S. Government guaranteed mortgage-related securities
|
|
15,554,554
|
|
15,737,000
|
||||||||
SBA loan pools
|
|
139,849
|
|
140,000
|
||||||||
Federal Home Loan Bank stock
|
|
318,700
|
|
318,700
|
||||||||
Federal Reserve Bank stock
|
|
215,650
|
|
215,650
|
||||||||
|
|
|
|
|||||||||
$
|
37,479,648
|
$
|
37,809,350
|
|||||||||
|
|
|
|
December 31,
|
||||||||||||
2001
|
2000
|
|||||||||||
Commercial and agricultural
|
$
|
21,467,262
|
|
$
|
21,634,440
|
|
||||||
Real estatemortgage
|
|
44,131,982
|
|
|
42,435,801
|
|
||||||
Real estateconstruction
|
|
5,391,888
|
|
|
3,771,109
|
|
||||||
Installment
|
|
2,686,208
|
|
|
2,983,014
|
|
||||||
|
|
|
|
|
|
|||||||
|
73,677,340
|
|
|
70,824,364
|
|
|||||||
Deferred loan fees, net
|
|
(130,792
|
)
|
|
(91,879
|
)
|
||||||
Reserve for loan losses
|
|
(984,913
|
)
|
|
(818,126
|
)
|
||||||
|
|
|
|
|
|
|||||||
$
|
72,561,635
|
|
$
|
69,914,359
|
|
|||||||
|
|
|
|
|
|
|||||||
Changes in the reserve for loan losses were as follows:
|
||||||||||||
Years Ended December 31,
|
||||||||||||
2001
|
2000
|
1999
|
||||||||||
Balance, beginning of year
|
$
|
818,126
|
|
$
|
969,917
|
|
$
|
848,850
|
|
|||
Provision for loan losses
|
|
169,000
|
|
|
145,000
|
|
||||||
Losses charged to reserve
|
|
(6,019
|
)
|
|
(199,856
|
)
|
|
(38,174
|
)
|
|||
Recoveries
|
|
3,806
|
|
|
48,065
|
|
|
14,241
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Balance, end of year
|
$
|
984,913
|
|
$
|
818,126
|
|
$
|
969,917
|
|
|||
|
|
|
|
|
|
|
|
|
December 31,
|
||||||||
2001
|
2000
|
|||||||
Land
|
$
|
405,896
|
|
$
|
405,896
|
|
||
Bank premises
|
|
1,693,975
|
|
|
1,681,116
|
|
||
Furniture, fixtures and equipment
|
|
2,147,509
|
|
|
2,142,947
|
|
||
Leasehold improvements
|
|
129,601
|
|
|
129,601
|
|
||
|
|
|
|
|
|
|||
|
4,376,981
|
|
|
4,359,560
|
|
|||
Less accumulated depreciation and amortization
|
|
(2,948,906
|
)
|
|
(2,762,377
|
)
|
||
|
|
|
|
|
|
|||
$
|
1,428,075
|
|
$
|
1,597,183
|
|
|||
|
|
|
|
|
|
Federal
|
State
|
Total
|
||||||||||
2001
|
||||||||||||
Current
|
$
|
980,000
|
|
$
|
342,000
|
|
$
|
1,322,000
|
|
|||
Deferred
|
|
(76,000
|
)
|
|
(20,000
|
)
|
|
(96,000
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Income tax expense
|
$
|
904,000
|
|
$
|
322,000
|
|
$
|
1,226,000
|
|
|||
|
|
|
|
|
|
|
|
|
||||
2000
|
||||||||||||
Current
|
$
|
777,000
|
|
$
|
289,000
|
|
$
|
1,066,000
|
|
|||
Deferred
|
|
(12,000
|
)
|
|
(12,000
|
)
|
||||||
|
|
|
|
|
|
|
|
|
||||
Income tax expense
|
$
|
765,000
|
|
$
|
289,000
|
|
$
|
1,054,000
|
|
|||
|
|
|
|
|
|
|
|
|
||||
1999
|
||||||||||||
Current
|
$
|
719,000
|
|
$
|
258,000
|
|
$
|
977,000
|
|
|||
Deferred
|
|
(61,000
|
)
|
|
(16,000
|
)
|
|
(77,000
|
)
|
|||
|
|
|
|
|
|
|
|
|
||||
Income tax expense
|
$
|
658,000
|
|
$
|
242,000
|
|
$
|
900,000
|
|
|||
|
|
|
|
|
|
|
|
|
2001
|
2000
|
|||||||
Deferred tax assets:
|
||||||||
Reserve for loan losses
|
$
|
304,000
|
|
$
|
228,000
|
|
||
Future benefit of state income tax deduction
|
|
118,000
|
|
|
96,000
|
|
||
Unrealized loss on available-for-sale investment securities
|
|
120,000
|
|
|||||
|
|
|
|
|
|
|||
Total deferred tax assets
|
|
422,000
|
|
|
444,000
|
|
||
|
|
|
|
|
|
|||
Deferred tax liabilities:
|
||||||||
Bank premises and equipment
|
|
(19,000
|
)
|
|
(45,000
|
)
|
||
Future liability of state deferred tax assets
|
|
(33,000
|
)
|
|
(25,000
|
)
|
||
Federal Home Loan Bank dividends
|
|
(48,000
|
)
|
|
(30,000
|
)
|
||
Unrealized gain on available-for-sale investment securities
|
|
(136,000
|
)
|
|||||
|
|
|
|
|
|
|||
Total deferred tax liabilities
|
|
(236,000
|
)
|
|
(100,000
|
)
|
||
|
|
|
|
|
|
|||
Net deferred tax assets
|
$
|
186,000
|
|
$
|
344,000
|
|
||
|
|
|
|
|
|
2001
|
2000
|
1999
|
|||||||||||||||||||
Amount
|
Rate %
|
Amount
|
Rate %
|
Amount
|
Rate %
|
||||||||||||||||
Federal income tax expense, at statutory rate
|
$
|
1,024,943
|
|
34.0
|
|
$
|
895,167
|
|
34.0
|
|
$
|
793,400
|
|
34.0
|
|
||||||
State franchise tax, net of Federal tax effect
|
|
216,276
|
|
7.2
|
|
|
188,757
|
|
7.2
|
|
|
167,494
|
|
7.2
|
|
||||||
Interest on obligations of states and political subdivisions
|
|
(19,398
|
)
|
(.6
|
)
|
|
(20,144
|
)
|
(.8
|
)
|
|
(21,959
|
)
|
(.9
|
)
|
||||||
Other
|
|
4,179
|
|
.1
|
|
|
(9,780
|
)
|
(.4
|
)
|
|
(38,935
|
)
|
(1.7
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total income tax expense
|
$
|
1,226,000
|
|
40.7
|
|
$
|
1,054,000
|
|
40.0
|
|
$
|
900,000
|
|
38.6
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
||||||
2001
|
2000
|
|||||
Savings
|
$
|
4,649,275
|
$
|
4,084,805
|
||
Money market
|
|
33,458,575
|
|
29,475,447
|
||
NOW accounts
|
|
17,695,472
|
|
16,506,553
|
||
Time, $100,000 or more
|
|
21,966,979
|
|
21,584,852
|
||
Other time
|
|
15,124,993
|
|
14,664,793
|
||
|
|
|
|
|||
$
|
92,895,294
|
$
|
86,316,450
|
|||
|
|
|
|
Year Ending December 31,
|
|||
2002
|
$
|
35,381,173
|
|
2003
|
|
1,344,228
|
|
2004
|
|
102,778
|
|
2005
|
|
252,425
|
|
2006 and thereafter
|
|
11,368
|
|
|
|
||
$
|
37,091,972
|
||
|
|
Years Ended December 31,
|
|||||||||
2001
|
2000
|
1999
|
|||||||
Savings
|
$
|
80,143
|
$
|
113,925
|
$
|
143,319
|
|||
Money market
|
|
1,132,396
|
|
1,504,984
|
|
1,306,460
|
|||
NOW accounts
|
|
136,874
|
|
284,301
|
|
289,202
|
|||
Time, $100,000 or more
|
|
1,119,052
|
|
1,073,209
|
|
744,571
|
|||
Other time
|
|
779,518
|
|
797,288
|
|
706,867
|
|||
|
|
|
|
|
|
||||
$
|
3,247,983
|
$
|
3,773,707
|
$
|
3,190,419
|
||||
|
|
|
|
|
|
Year Ending December 31,
|
|||
2002
|
$
|
41,484
|
|
2003
|
|
41,484
|
|
2004
|
|
6,914
|
|
|
|
||
$
|
89,882
|
||
|
|
December 31,
|
||||||
2001
|
2000
|
|||||
Commitments to extend credit
|
$
|
19,023,000
|
$
|
19,034,000
|
||
Letters of credit
|
|
300,000
|
|
135,000
|
Net
Income
|
Weighted Average Number of Shares Outstanding
|
Per Share Amount
|
||||||
December 31, 2001
|
||||||||
Basic earnings per share
|
$
|
1,788,538
|
1,216,493
|
$
|
1.47
|
|||
|
|
|||||||
Effect of dilutive stock options
|
50,906
|
|||||||
|
|
|
||||||
Diluted earnings per share
|
$
|
1,788,538
|
1,267,399
|
$
|
1.41
|
|||
|
|
|
|
|
||||
December 31, 2000
|
||||||||
Basic earnings per share
|
$
|
1,578,843
|
1,201,440
|
$
|
1.31
|
|||
|
|
|||||||
Effect of dilutive stock options
|
54,577
|
|||||||
|
|
|
||||||
Diluted earnings per share
|
$
|
1,578,843
|
1,256,017
|
$
|
1.26
|
|||
|
|
|
|
|
||||
December 31, 1999
|
||||||||
Basic earnings per share
|
$
|
1,433,528
|
1,193,838
|
$
|
1.20
|
|||
|
|
|||||||
Effect of dilutive stock options
|
57,747
|
|||||||
|
|
|
||||||
Diluted earnings per share
|
$
|
1,433,528
|
1,251,585
|
$
|
1.15
|
|||
|
|
|
|
|
December 31,
|
||||||
2000
|
1999
|
|||||
Net earningsas reported
|
$
|
1,578,843
|
$
|
1,433,528
|
||
Net earningspro forma
|
$
|
1,529,187
|
$
|
1,409,684
|
||
Basic earnings per shareas reported
|
$
|
1.31
|
$
|
1.20
|
||
Basic earnings per sharepro forma
|
$
|
1.27
|
$
|
1.18
|
||
Diluted earnings per shareas reported
|
$
|
1.26
|
$
|
1.15
|
||
Diluted earnings per sharepro forma
|
$
|
1.22
|
$
|
1.13
|
December 31,
|
||||||
2000
|
1999
|
|||||
Dividend yield
|
2.15
|
%
|
0.00
|
%
|
||
Expected volatility
|
16.79
|
%
|
13.49
|
%
|
||
Risk-free interest rate
|
6.69
|
%
|
5.65
|
%
|
||
Expected option life
|
10 years
|
|
10 years
|
|
2001
|
2000
|
1999
|
||||||||||||||||
Shares
|
Weighted Average Exercise Price
|
Shares
|
Weighted Average Exercise Price
|
Shares
|
Weighted Average Exercise Price
|
|||||||||||||
Options outstanding, beginning of year
|
113,289
|
|
$
|
6.29
|
112,384
|
|
$
|
5.32
|
103,205
|
|
$
|
4.89
|
||||||
Options granted
|
18,500
|
|
$
|
11.62
|
10,175
|
|
$
|
9.78
|
||||||||||
Options exercised
|
(20,417
|
)
|
$
|
4.59
|
(13,994
|
)
|
$
|
4.94
|
(764
|
)
|
$
|
4.68
|
||||||
Options canceled
|
(2,750
|
)
|
$
|
11.70
|
(3,601
|
)
|
$
|
8.72
|
(232
|
)
|
$
|
10.66
|
||||||
|
|
|
|
|
|
|||||||||||||
Options outstanding, end of year
|
90,122
|
|
$
|
6.51
|
113,289
|
|
$
|
6.29
|
112,384
|
|
$
|
5.32
|
||||||
|
|
|
|
|
|
|||||||||||||
Options exercisable, end of year
|
90,122
|
|
$
|
6.51
|
113,289
|
|
$
|
6.29
|
112,384
|
|
$
|
5.32
|
||||||
|
|
|
|
|
|
|||||||||||||
Weighted average fair value of options granted during the year
|
$
|
6.01
|
$
|
4.75
|
||||||||||||||
|
|
|
|
Range of Exercise Prices
|
Number of Options Outstanding December 31, 2001
|
Weighted Average Remaining Contractual Life
|
Number of Options Exercisable December 31, 2001
|
|||
$3.15
|
47,153
|
3.6 years
|
47,153
|
|||
$5.37
|
4,454
|
4.4 years
|
4,454
|
|||
$10.68
|
15,840
|
6.9 years
|
15,840
|
|||
$9.77
|
9,900
|
7.2 years
|
9,900
|
|||
$10.23
|
275
|
7.2 years
|
275
|
|||
$11.75
|
9,550
|
8.0 years
|
9,550
|
|||
$11.25
|
950
|
8.2 years
|
950
|
|||
$11.12
|
2,000
|
8.3 years
|
2,000
|
|||
|
|
|||||
90,122
|
90,122
|
|||||
|
|
2001
|
2000
|
|||||||||||
Amount
|
Ratio
|
Amount
|
Ratio
|
|||||||||
Leverage Ratio
|
||||||||||||
North State National Bank
|
$
|
12,125,000
|
9.5
|
%
|
$
|
10,665,000
|
9.2
|
%
|
||||
Minimum requirement for Well-Capitalized institution
|
|
6,357,500
|
5.0
|
%
|
|
5,774,400
|
5.0
|
%
|
||||
Minimum regulatory requirement
|
|
5,086,000
|
4.0
|
%
|
|
4,619,500
|
4.0
|
%
|
||||
Tier 1 Risk-Based Capital Ratio
|
||||||||||||
North State National Bank
|
|
12,125,000
|
15.0
|
%
|
|
10,665,000
|
14.3
|
%
|
||||
Minimum requirement for Well-Capitalized institution
|
|
4,848,700
|
6.0
|
%
|
|
4,490,900
|
6.0
|
%
|
||||
Minimum regulatory requirement
|
|
3,232,400
|
4.0
|
%
|
|
2,993,900
|
4.0
|
%
|
Total Risk-Based Capital Ratio
|
||||||||||
North State National Bank
|
13,110,000
|
16.2
|
%
|
11,483,000
|
15.3
|
%
|
||||
Minimum requirement for
|
||||||||||
Well-Capitalized institution
|
8,081,100
|
10.0
|
%
|
7,484,800
|
10.0
|
%
|
||||
Minimum regulatory requirement
|
6,464,900
|
8.0
|
%
|
5,987,900
|
8.0
|
%
|
Before
Tax
|
Tax
(Expense)
Benefit
|
After
Tax
|
||||||||||
For the Year Ended December 31, 2001
|
||||||||||||
Other comprehensive income:
|
||||||||||||
Unrealized holding gains
|
$
|
757,792
|
|
$
|
(313,481
|
)
|
$
|
444,311
|
|
|||
Reclassification adjustment for net gains included in net income
|
|
141,351
|
|
|
(57,487
|
)
|
|
83,864
|
|
|||
|
|
|
|
|
|
|
|
|
||||
Total other comprehensive income
|
|
616,441
|
|
|
(255,994
|
)
|
|
360,447
|
|
|||
|
|
|
|
|
|
|
|
|
||||
For the Year Ended December 31, 2000
|
||||||||||||
Other comprehensive income:
|
||||||||||||
Unrealized holding gains
|
|
924,345
|
|
|
(385,464
|
)
|
|
538,881
|
|
|||
|
|
|
|
|
|
|
|
|
||||
For the Year Ended December 31, 1999
|
||||||||||||
Other comprehensive loss:
|
||||||||||||
Unrealized holding losses
|
|
(1,164,824
|
)
|
|
485,814
|
|
|
(679,010
|
)
|
|||
|
|
|
|
|
|
|
|
|
December 31, 2001
|
December 31, 2000
|
|||||||||||
Carrying
Amount
|
Fair
Value
|
Carrying
Amount
|
Fair
Value
|
|||||||||
Financial assets:
|
||||||||||||
Cash and due from banks
|
$
|
5,898,143
|
$
|
5,898,143
|
$
|
6,222,460
|
$
|
6,222,460
|
||||
Interest-bearing deposits
|
|
5,430,320
|
|
5,430,320
|
|
170,036
|
|
170,036
|
||||
Federal funds sold
|
|
3,302,000
|
|
3,302,000
|
|
714,000
|
|
714,000
|
||||
Investment securities
|
|
39,082,324
|
|
39,116,350
|
|
36,397,197
|
|
36,418,750
|
||||
Loans
|
|
72,561,635
|
|
74,301,000
|
|
69,914,359
|
|
69,634,000
|
||||
Accrued interest receivable
|
|
883,497
|
|
883,497
|
|
1,004,830
|
|
1,004,830
|
||||
|
|
|
|
|
|
|
|
|||||
|
127,157,919
|
|
128,931,310
|
|
114,422,882
|
|
114,164,076
|
|||||
|
|
|
|
|
|
|
|
|||||
Financial liabilities:
|
||||||||||||
Deposits
|
|
116,168,992
|
|
116,482,000
|
|
105,395,526
|
|
105,473,000
|
||||
Accrued interest payable
|
|
272,720
|
|
272,720
|
|
539,085
|
|
539,085
|
||||
|
|
|
|
|
|
|
|
|||||
|
116,441,712
|
|
116,754,720
|
|
105,934,611
|
|
106,012,085
|
|||||
|
|
|
|
|
|
|
|
|||||
Off-balance-sheet financial instruments:
|
||||||||||||
Commitments to extend credit
|
|
19,023,000
|
|
19,023,000
|
|
19,034,000
|
|
19,034,000
|
||||
Letters of credit
|
|
300,000
|
|
300,000
|
|
135,000
|
|
135,000
|
||||
|
|
|
|
|
|
|
|
|||||
$
|
19,323,000
|
$
|
19,323,000
|
$
|
19,169,000
|
$
|
19,169,000
|
|||||
|
|
|
|
|
|
|
|
2001
|
2000
|
1999
|
|||||||
Professional fees
|
$
|
113,466
|
$
|
119,558
|
$
|
107,400
|
|||
Director fees
|
|
79,200
|
|
66,000
|
|
66,600
|
|||
Advertising
|
|
49,492
|
|
52,524
|
|
56,513
|
|||
Other operating expenses
|
|
540,208
|
|
495,291
|
|
501,939
|
|||
|
|
|
|
|
|
||||
$
|
782,366
|
$
|
733,373
|
$
|
732,452
|
||||
|
|
|
|
|
|
Balance, January 1, 2001
|
$
|
2,623,665
|
|
|
Disbursements
|
|
2,235,611
|
|
|
Amounts repaid
|
|
(1,863,406
|
)
|
|
|
|
|
||
Balance, December 31, 2001
|
$
|
2,995,870
|
|
|
|
|
|
||
Undisbursed commitments to related parties, December 31, 2001
|
$
|
335,487
|
|
|
|
|
|
September 30, 2002
|
December 31, 2001
|
|||||
ASSETS
|
||||||
Cash and due from banks
|
$
|
6,309
|
$
|
11,328
|
||
Federal funds sold
|
|
3,424
|
|
3,302
|
||
Investment securities (market value: $51,625 at September 30, 2002 and $38,582 at December 31, 2001)
|
|
51,577
|
|
38,548
|
||
Loans, net of allowance for loan losses of $932 and $985, respectively
|
|
76,343
|
|
72,562
|
||
Premises and equipment, net
|
|
1,431
|
|
1,428
|
||
Accrued interest receivable
|
|
848
|
|
900
|
||
Other assets
|
|
754
|
|
836
|
||
|
|
|
|
|||
TOTAL ASSETS
|
$
|
140,686
|
$
|
128,904
|
||
|
|
|
|
|||
LIABILITIES AND SHAREHOLDERS EQUITY
|
||||||
Deposits:
|
||||||
Non-interest bearing
|
$
|
21,858
|
$
|
23,274
|
||
Interest-bearing demand
|
|
17,613
|
|
17,695
|
||
Savings
|
|
52,489
|
|
38,108
|
||
Time Certificates
|
|
34,885
|
|
37,092
|
||
|
|
|
|
|||
Total deposits
|
|
126,845
|
|
116,169
|
||
Accrued interest payable and other liabilities
|
|
288
|
|
417
|
||
|
|
|
|
|||
Total liabilities
|
|
127,133
|
|
116,586
|
||
|
|
|
|
|||
Shareholders equity:
|
||||||
Common stock, par value $2.50 per share; authorized 2,500,000 shares, issued and outstanding 1,224,460 shares at
September 30, 2002 and 1,224,190 shares at December 31, 2001
|
|
3,061
|
|
3,060
|
||
Additional paid-in capital
|
|
4,233
|
|
4,232
|
||
Retained earnings
|
|
5,882
|
|
4,832
|
||
Accumulated other comprehensive income
|
|
377
|
|
194
|
||
|
|
|
|
|||
Total shareholders equity
|
|
13,553
|
|
12,318
|
||
|
|
|
|
|||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY
|
$
|
140,686
|
$
|
128,904
|
||
|
|
|
|
For the three months
ended September 30, |
For the nine months
ended September 30, |
|||||||||||
2002
|
2001
|
2002
|
2001
|
|||||||||
Interest income:
|
||||||||||||
Interest and fees on loans
|
$
|
1,424
|
$
|
1,543
|
$
|
4,174
|
$
|
4,646
|
||||
Interest on interest-bearing deposits
|
|
4
|
|
31
|
|
7
|
||||||
Interest on investment securities:
|
||||||||||||
Taxable
|
|
527
|
|
528
|
|
1,554
|
|
1,577
|
||||
Exempt from federal income taxes
|
|
15
|
|
15
|
|
45
|
|
49
|
||||
Interest on federal funds sold and other
|
|
39
|
|
62
|
|
115
|
|
230
|
||||
|
|
|
|
|
|
|
|
|||||
Total interest income
|
|
2,005
|
|
2,152
|
|
5,919
|
|
6,509
|
||||
|
|
|
|
|
|
|
|
|||||
Interest expense:
|
|
516
|
|
781
|
|
1,550
|
|
2,627
|
||||
|
|
|
|
|
|
|
|
|||||
Net interest income
|
|
1,489
|
|
1,371
|
|
4,369
|
|
3,882
|
||||
Provision for loan losses
|
|
24
|
|
90
|
||||||||
|
|
|
|
|
|
|
|
|||||
Net interest income after provision for loan losses
|
|
1,489
|
|
1,347
|
|
4,369
|
|
3,792
|
||||
|
|
|
|
|
|
|
|
|||||
Non-interest income:
|
||||||||||||
Service charges
|
|
76
|
|
73
|
|
234
|
|
221
|
||||
Gain on sales of investment securities
|
|
40
|
|
24
|
|
55
|
|
62
|
||||
Other income
|
|
41
|
|
39
|
|
132
|
|
140
|
||||
|
|
|
|
|
|
|
|
|||||
Total non-interest income
|
|
157
|
|
136
|
|
421
|
|
423
|
||||
|
|
|
|
|
|
|
|
|||||
Non-interest expense:
|
||||||||||||
Salaries and employee benefits
|
|
383
|
|
368
|
|
1,160
|
|
1,122
|
||||
Occupancy and equipment
|
|
112
|
|
122
|
|
338
|
|
353
|
||||
Other non-interest expense
|
|
235
|
|
184
|
|
646
|
|
587
|
||||
|
|
|
|
|
|
|
|
|||||
Total non-interest expense
|
|
730
|
|
674
|
|
2,144
|
|
2,062
|
||||
|
|
|
|
|
|
|
|
|||||
Income before income taxes
|
|
916
|
|
809
|
|
2,646
|
|
2,153
|
||||
Income taxes
|
|
384
|
|
337
|
|
1,106
|
|
897
|
||||
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
532
|
$
|
472
|
$
|
1,540
|
$
|
1,256
|
||||
|
|
|
|
|
|
|
|
|||||
Basic earnings per share
|
$
|
0.43
|
$
|
0.39
|
$
|
1.26
|
$
|
1.04
|
||||
|
|
|
|
|
|
|
|
|||||
Diluted earnings per share
|
$
|
0.41
|
$
|
0.37
|
$
|
1.20
|
$
|
0.99
|
||||
|
|
|
|
|
|
|
|
Common Stock
|
Additional paid-in capital
|
Retained earnings
|
Accumulated
Other
Comprehensive Income
|
Total Shareholders Equity
|
Comprehensive Income
|
|||||||||||||||||
Number of shares
|
Amount
|
|||||||||||||||||||||
Balance, December 31, 2001
|
1,224,190
|
$
|
3,060,475
|
$
|
4,231,914
|
$
|
4,832,457
|
|
$
|
193,530
|
$
|
12,318,376
|
|
|||||||||
Comprehensive income:
|
||||||||||||||||||||||
Net income
|
|
1,539,767
|
|
|
1,539,767
|
|
$
|
1,539,767
|
||||||||||||||
Other comprehensive income, net of tax
|
||||||||||||||||||||||
Unrealized gains on available-for-sale investment securities
|
|
183,133
|
|
183,133
|
|
|
183,133
|
|||||||||||||||
|
|
|||||||||||||||||||||
Total comprehensive income
|
$
|
1,722,900
|
||||||||||||||||||||
|
|
|||||||||||||||||||||
Cash dividend
|
|
(489,874
|
)
|
|
(489,874
|
)
|
||||||||||||||||
Exercise of common stock options
|
270
|
|
672
|
|
778
|
|
1,450
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance, September 30, 2002
|
1,224,460
|
$
|
3,061,147
|
$
|
4,232,692
|
$
|
5,882,350
|
|
$
|
376,663
|
$
|
13,552,852
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
2002
|
2001
|
|||||||
Cash flows from operating activities:
|
||||||||
Net cash provided by operating activities
|
$
|
1,478
|
|
$
|
1,153
|
|
||
|
|
|
|
|
|
|||
Cash flows from investing activities:
|
||||||||
Purchase of available-for-sale securities
|
|
(76,785
|
)
|
|
(32,475
|
)
|
||
Proceeds from called/matured held-to-maturity securities
|
|
15
|
|
|
160
|
|
||
Proceeds from called/sold/matured available-for-sale securities
|
|
61,376
|
|
|
26,487
|
|
||
Proceeds of principal repayments from available-for-sale mortgage-related securities
|
|
2,757
|
|
|
1,758
|
|
||
Net increase in loans
|
|
(3,781
|
)
|
|
(2,124
|
)
|
||
Purchase of equipment
|
|
(145
|
)
|
|
(17
|
)
|
||
|
|
|
|
|
|
|||
Net cash used in investing activities
|
|
(16,563
|
)
|
|
(6,211
|
)
|
||
|
|
|
|
|
|
|||
Cash flows from financing activities:
|
||||||||
Net increase in demand, interest-bearing and savings deposits
|
|
12,883
|
|
|
5,805
|
|
||
Net (decrease)/increase in time deposits
|
|
(2,207
|
)
|
|
2,598
|
|
||
Stock options exercised
|
|
2
|
|
|
88
|
|
||
Cash dividend paid
|
|
(490
|
)
|
|
(423
|
)
|
||
|
|
|
|
|
|
|||
Net cash provided by financing activities
|
|
10,188
|
|
|
8,068
|
|
||
|
|
|
|
|
|
|||
(Decrease)/increase in cash and cash equivalents
|
|
(4,897
|
)
|
|
3,010
|
|
||
|
|
|
|
|
|
|||
Cash and cash equivalents at beginning of year
|
|
14,630
|
|
|
7,107
|
|
||
|
|
|
|
|
|
|||
Cash and cash equivalents at end of period
|
$
|
9,733
|
|
$
|
10,117
|
|
||
|
|
|
|
|
|
|||
Cash paid during the period for:
|
||||||||
Interest expense
|
$
|
1,667
|
|
$
|
2,843
|
|
||
Income tax expense
|
$
|
1,081
|
|
$
|
895
|
|
For the Nine Months Ended
|
Net Income
|
Weighted
Average
Number of
Shares
Outstanding
|
Per-Share Amount
|
|||||
September 30, 2002
|
||||||||
Basic earnings per share
|
$
|
1,540
|
1,224
|
$
|
1.26
|
|||
Effect of dilutive stock options
|
59
|
|||||||
|
|
|
|
|
||||
Diluted earnings per share
|
$
|
1,540
|
1,283
|
$
|
1.20
|
|||
|
|
|
|
|
||||
September 30, 2001
|
||||||||
Basic earnings per share
|
$
|
1,256
|
1,213
|
$
|
1.04
|
|||
Effect of dilutive stock options
|
54
|
|||||||
|
|
|
|
|
||||
Diluted earnings per share
|
$
|
1,256
|
1,267
|
$
|
0.99
|
|||
|
|
|
|
|
For the Three Months Ended
|
Net Income
|
Weighted
Average
Number of
Shares
Outstanding
|
Per-Share
Amount
|
|||||
September 30, 2002
|
||||||||
Basic earnings per share
|
$
|
532
|
1,224
|
$
|
0.43
|
|||
Effect of dilutive stock options
|
62
|
|||||||
|
|
|
|
|
||||
Diluted earnings per share
|
$
|
532
|
1,286
|
$
|
0.41
|
|||
|
|
|
|
|
||||
September 30, 2001
|
||||||||
Basic earnings per share
|
$
|
472
|
1,222
|
$
|
0.39
|
|||
Effect of dilutive stock options
|
47
|
|||||||
|
|
|
|
|
||||
Diluted earnings per share
|
$
|
472
|
1,269
|
$
|
0.37
|
|||
|
|
|
|
|
Page
|
||
ARTICLE 1
|
1
|
|
PRINCIPAL TERMS OF THE MERGER
|
1
|
|
1.1 The Plan of Merger.
|
1
|
|
1.2 Closing Date.
|
5
|
|
1.3 The Surviving Bank.
|
6
|
|
ARTICLE 2
|
6
|
|
DISTRIBUTIONS TO TARGET SHAREHOLDERS
|
6
|
|
2.1 Delivery of Total Consideration.
|
6
|
|
2.2 Dissenting Shareholders.
|
7
|
|
ARTICLE 3
|
7
|
|
CONDITIONS
|
7
|
|
3.1 Mutual Conditions.
|
7
|
|
3.2 Conditions in Favor of Target.
|
8
|
|
3.3 Conditions in Favor of TriCo and Tri Counties.
|
11
|
|
ARTICLE 4
|
14
|
|
REPRESENTATIONS AND WARRANTIES
|
14
|
|
4.1 Representations and Warranties of Target.
|
14
|
|
4.2 Representations and Warranties of TriCo and Tri Counties.
|
22
|
|
ARTICLE 5
|
24
|
|
COVENANTS
|
24
|
|
5.1 Covenants of Target.
|
24
|
|
5.2 Covenants of TriCo and Tri Counties.
|
28
|
|
ARTICLE 6
|
30
|
|
MISCELLANEOUS
|
30
|
|
6.1 Termination.
|
30
|
|
6.2 Expenses and Damages.
|
30
|
|
6.3 Effect of Termination.
|
31
|
|
6.4 Press Releases and Public Statements.
|
31
|
|
6.5 Board of Directors.
|
31
|
|
6.6 Employees and Employee Benefits.
|
31
|
|
6.7 Indemnification and Insurance.
|
32
|
|
6.8 Knowledge.
|
32
|
|
6.9 Desirable Amendments.
|
32
|
|
6.10 Benefits of this Agreement.
|
32
|
|
6.11 Notices.
|
33
|
|
6.12 Entire Agreement.
|
33
|
|
6.13 Waiver or Modification.
|
34
|
|
6.14 Controlling Law.
|
34
|
|
6.15 Counterparts.
|
34
|
A
|
|
Agreement of Merger
|
B
|
|
Affiliates Letter
|
C
|
|
TriCo Employment Agreement
|
D
|
|
Amendment to Target Employment Agreement
|
·
|
|
if the Average Closing Price is greater than $26 multiplied by 115%, the number of shares comprising the Aggregate Stock Consideration shall be multiplied by a
fraction of which the numerator is $26 multiplied by 115% and the denominator is the Average Closing Price (provided, that there shall be no such adjustment if the Average Closing Price is greater than $26 multiplied by 115% if, at the time of the
determination, (a) there has been any public announcement by any party of, or acknowledging the possibility of or discussions regarding, a proposed transaction or interest in or intent to pursue a proposed transaction involving TriCo and described
in Section 5.2(g)(i) of this Agreement and (b) TriCo has not issued a subsequent public announcement affirmatively, unconditionally and unequivocally disclaiming any interest in or intent to pursue or consider such a transaction); or
|
·
|
|
if the Average Closing Price is less than $26 multiplied by 85%, the number of shares comprising the Aggregate Stock Consideration shall be multiplied by a
fraction of which the numerator is $26 multiplied by 85% and the denominator is the Average Closing Price.
|
TRICO BANCSHARES
|
||||||||
By:
|
/s/
|
|||||||
Attest:
|
Richard P. Smith, President and CEO
|
Name:
|
/s/ Wendell Lundberg
|
|
Title:
|
Secretary
|
TRI COUNTIES BANK
|
||||||||
By:
|
/s/
|
|||||||
Attest:
|
Richard P. Smith, President and CEO
|
Name:
|
/s/ Wendell Lundberg
|
|
Title:
|
Secretary
|
NORTH STATE NATIONAL BANK
|
||||||||
By:
|
/s/
|
|||||||
Attest:
|
Name:
Title:
|
John A. Lucchesi
President and CEO
|
Name:
|
/s/ Sheila Christensen
|
|
Title:
|
Executive Secretary and Assistant Cashier
|
Exhibits
|
||
A
|
Form of Agreement of Merger between TriCo Bancshares, Tri Counties Bank and North State National
Bank
|
|
B*
|
Form of Affiliates Letter executed by affiliates of North State National Bank
|
|
C*
|
Form of Employment Agreement between TriCo Bancshares and John Lucchesi
|
|
D*
|
Amendment to Agreement of Employment of Executive Office of North State National Bank with John Lucchesi
|
*
|
|
The registrant will furnish these omitted schedules to the Commission upon request.
|
TRICO BANCSHARES
|
||
By:
|
|
|
Richard Smith, its President
|
By:
|
|
|
Wendell Lundberg, Secretary
|
TRI COUNTIES BANK
|
||
By:
|
|
|
Richard Smith, its President
|
By:
|
|
|
Wendell Lundberg, Secretary
|
NORTH STATE NATIONAL BANK
|
||
By:
|
|
|
John Lucchesi, its President
|
By:
|
|
|
Sheila Christensen, Executive Secretary and
Assistant Cashier
|
One Tabor Center, Suite 3000
|
||
1200 Seventeenth Street
|
Telephone 303.623.9000
|
|
Denver, Colorado 80202-5855
|
Fax 303.623.9222
|
|
www.rothgerber.com
|
This form of tax opinion is proposed to be issued upon the closing of the Merger based upon the assumption that all
draft documentation prepared and circulated to the Board of Directors of North State National Bank to consummate this merger are executed and the transaction is consummated in the manner proposed. This form of tax opinion has no application to a
merger consummated other than as previously proposed in the Acquisition Agreement and Plan of Merger dated October 3, 2002.
|
2
|
Acquisition Agreement and Plan of Merger dated October 3, 2002, by and among TriCo Bancshares, Tri Counties Bank and North State National Bank (Exhibit A to
the Prospectus and Proxy Statement forming Part I hereof)
|
|
3.1*
|
Articles of Incorporation of TriCo Bancshares, filed as Exhibit 3.1 to TriCos Report on Form 10-K for the year ended December 31, 1989, and
incorporated herein by reference
|
|
3.2
|
Bylaws of TriCo Bancshares, as amended
|
|
4*
|
Certificate of Determination of Preferences of Series AA Junior Participating Preferred Stock filed as Exhibit 3.3 to TriCos Report on Form 10-K for
the quarter ended September 30, 2001, and incorporated herein by reference
|
|
5
|
Legal Opinion of Rothgerber Johnson & Lyons LLP
|
|
8
|
Draft Tax Opinion of Rothgerber Johnson & Lyons LLP (Exhibit C to the Prospectus and Proxy Statement forming Part I hereof)
|
10.1*
|
Rights Agreement dated June 25, 2001, between TriCo and Mellon Investor Services LLC filed as Exhibit 1 to TriCos Form 8-A dated July 25, 2001, and
incorporated herein by reference
|
|
10.2*
|
Form of Change of Control Agreement dated April 1, 2001, between TriCo and each of Craig Carney, Richard OSullivan, Thomas Reddish, Ray Rios and
Richard Smith, filed as Exhibit 10.9 to TriCos Report on Form 10-Q for the quarter ended September 30, 2001, and incorporated herein by reference
|
|
10.3*
|
TriCos 1993 Non-Qualified Stock Option Plan filed as Exhibit 4.1 to TriCos Form S-8 Registration Statement dated January 18, 1995 (Registration
No. 33-88704) and incorporated herein by reference
|
|
10.4*
|
TriCos Non-Qualified Stock Option Plan filed as Exhibit 4.2 to TriCos Form S-8 Registration Statement dated January 18, 1995 (Registration No.
33-88704) and incorporated herein by reference
|
|
10.5*
|
TriCos Incentive Stock Option Plan filed as Exhibit 4.3 to TriCos Form S-8 Registration Statement dated January 18, 1995 (Registration No.
33-88704) and incorporated herein by reference
|
|
10.6*
|
TriCos 1995 Incentive Stock Option Plan filed as Exhibit 4.1 to TriCos Form S-8 Registration Statement dated August 23, 1995 (Registration No.
33-62063) and incorporated herein by reference
|
|
10.7*
|
TriCos 2001 Stock Option Plan filed as Exhibit 4 to TriCos Form S-8 Registration Statement dated July 27, 2001 (Registration No. 33-66064) and
incorporated herein by reference
|
|
10.8
|
Employment Agreement between TriCo and Richard Smith dated April 10, 2001
|
|
10.9
|
Tri Counties Bank Executive Deferred Compensation Plan dated September 1, 1987, as restated April 1, 1992, and amended November 12, 2002
|
|
10.10
|
Tri Counties Bank Supplemental Retirement Plan for Directors dated September 1, 1987, as restated January 1, 2001
|
|
10.11
|
Tri Counties Bank Supplemental Executive Retirement Plan effective September 1, 1987
|
|
10.12
|
Tri Counties Bank Deferred Compensation Plan for Directors effective April 1, 1992
|
|
11
|
Statement re: computation of per share earnings
|
|
21
|
Tri Counties Bank, a California banking corporation, is the sole subsidiary of TriCo Bancshares
|
|
23.1
|
Consent of Rothgerber Johnson & Lyons LLP (incorporated in Exhibit 5)
|
|
23.2
|
Consent of Perry-Smith LLP
|
|
23.3
|
Consent of RBC Capital Markets
|
24
|
Power of Attorney (incorporated on page II-5 hereof)
|
|
99.1
|
Revocable Proxy to be delivered to shareholders of North State National Bank in connection with the Special Meeting to be held for the purpose of voting upon
the Agreement
|
|
99.2
|
Cash/Stock Election Form to be delivered to shareholders of North State National Bank
|
|
99.3
|
Consent of Steve Nettleton
|
TRICO BANCSHARES
|
||
By:
|
/s/ Richard P. Smith
|
|
|
|
|
Richard P. Smith, President and Chief Executive
|
||
Officer
|
Signature
|
Title
|
Date
|
||
/s/ Richard P. Smith
Richard P. Smith
|
President, Chief Executive Officer and Director (Principal Executive Officer)
|
January 16, 2003
|
||
/s/ Thomas J. Reddish
Thomas J. Reddish
|
Vice President/Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)
|
January 16, 2003
|
||
/s/ William J. Casey
William J. Casey
|
Chairman of the Board
|
January 16, 2003
|
||
/s/ Craig S. Compton
Craig S. Compton
|
Director
|
January 16, 2003
|
||
/s/ Wendell J. Lundberg
Wendell J. Lundberg
|
Director
|
January 16, 2003
|
||
/s/ Donald E. Murphy
Donald E. Murphy
|
Vice Chairman of the Board
|
January 16, 2003
|
||
Robert H.
Steveson
|
Vice Chairman of the Board
|
|||
/s/ Carroll R. Taresh
Carroll R. Taresh
|
Director
|
January 16, 2003
|
||
/s/ Alex A. Vereschasin, Jr.
Alex A. Vereschasin, Jr.
|
Director
|
January 16, 2003
|
10.8
|
Employment Agreement between TriCo and Richard Smith dated April 10, 2001
|
|
10.9
|
Tri Counties Bank Executive Deferred Compensation Plan dated September 1, 1987, as restated April 1, 1992, and
amended November 12, 2002
|
|
10.10
|
Tri Counties Bank Supplemental Retirement Plan for Directors dated September 1, 1987, as restated January 1,
2001
|
|
10.11
|
Tri Counties Bank Supplemental Executive Retirement Plan effective September 1, 1987
|
|
10.12
|
Tri Counties Bank Deferred Compensation Plan for Directors effective April 1, 1992
|
|
11
|
Statement re: computation of per share earnings
|
|
21
|
Tri Counties Bank, a California banking corporation, is the sole subsidiary of TriCo Bancshares
|
|
23.1
|
Consent of Rothgerber Johnson & Lyons LLP (incorporated in Exhibit 5)
|
|
23.2
|
Consent of Perry-Smith LLP
|
|
23.3
|
Consent of RBC Capital Markets
|
|
24
|
Power of Attorney (incorporated on page II-5 hereof)
|
|
99.1
|
Revocable Proxy to be delivered to shareholders of North State National Bank in connection with the Special Meeting
to be held for the purpose of voting upon the Agreement
|
|
99.2
|
Cash/Stock Election Form to be delivered to shareholders of North State National Bank
|
|
99.3
|
Consent of Steve Nettleton
|
*Previously
|
|
filed.
|
ARTICLE I Offices
|
Page
|
|||
Section 1.
|
Principal Office *last amended 12/9/97
|
1
|
||
Section 2.
|
Other Offices
|
1
|
||
ARTICLE II Meeting of Shareholders
|
||||
Section 3.
|
Place of Meetings
|
1
|
||
Section 4.
|
Annual Meetings
|
1
|
||
Section 5.
|
Special Meetings
|
2
|
||
Section 6.
|
Notice of Shareholders Meetings
|
2
|
||
Section 7.
|
Quorum
|
3
|
||
Section 8.
|
Adjourned Meeting
|
3
|
||
Section 9.
|
Waiver or Consent by Shareholders
|
4
|
||
Section 10.
|
Action Without Meeting
|
5
|
||
Section 11.
|
Voting Rights; Cumulative Voting
|
5
|
||
Section 12.
|
Proxies
|
6
|
||
Section 13.
|
Inspectors of Election
|
7
|
||
ARTICLE III Directors, Management
|
||||
Section 14.
|
Powers
|
7
|
||
Section 15.
|
Number and Qualification of Directors *last amended 6/18/02
|
8
|
||
Section 15A.
|
Directors Emeritus *added amended 6/13/95
|
9
|
||
Section 16.
|
Election and Term of Office
|
9
|
||
Section 17.
|
Removal of Directors
|
9
|
||
Section 18.
|
Vacancies
|
10
|
||
Section 19.
|
Place of Meetings *last amended 9/15/81
|
10
|
||
Section 20.
|
Organizational Meetings
|
11
|
||
Section 21.
|
Other Regular Meetings *last amended 9/15/81
|
11
|
||
Section 22.
|
Special Meetings
|
11
|
||
Section 23.
|
Quorum
|
11
|
||
Section 24.
|
Contents of Notice and Waiver of Notice
|
12
|
||
Section 25.
|
Adjournment
|
12
|
||
Section 26.
|
Notice of Adjournment
|
12
|
||
Section 27.
|
Telephone Participation
|
12
|
||
Section 28.
|
Action Without Meeting
|
12
|
||
Section 29.
|
Fees and Compensation
|
12
|
ARTICLE IV OFFICERS
|
||||
Section 30.
|
Officers
|
13
|
||
Section 31.
|
Election
|
13
|
||
Section 32.
|
Subordinate Officers
|
13
|
||
Section 33.
|
Removal and Resignation
|
13
|
||
Section 34.
|
Vacancies
|
13
|
||
Section 35.
|
Chairman of the Board
|
14
|
||
Section 36.
|
President
|
14
|
||
Section 37.
|
Vice Presidents
|
14
|
||
Section 38.
|
Secretary
|
14
|
||
Section 39.
|
Treasurer
|
15
|
||
ARTICLE V General Corporate Matters
|
||||
Section 40.
|
Record Date and Closing of Stockbooks
|
16
|
||
Section 41.
|
Corporate Records and Inspection by Shareholders and Directors
|
16
|
||
Section 42.
|
Checks, Drafts, Evidences of Indebtedness
|
17
|
||
Section 43.
|
Corporate Contracts and Instruments; How Executed
|
17
|
||
Section 43A.
|
Representation of Shares
|
17
|
||
Section 44.
|
Stock Certificates
|
18
|
||
Section 45.
|
Lost Certificates
|
18
|
||
Section 46.
|
Reports to Shareholders
|
18
|
||
Section 47.
|
Indemnity of Officers, Directors, etc. *last amended 3/8/88.
|
19
|
||
ARTICLE VI Amendments
|
||||
Section 48.
|
Amendments by Shareholders
|
24
|
||
Section 49.
|
Amendments by Directors
|
24
|
||
ARTICLE VII Committees of the Board
|
||||
Section 50.
|
Committees of the Board of Directors
|
24
|
||
Section 51.
|
Loans or Guaranties to Officers
|
25
|
(1)
|
|
The approval of any action for which shareholder approval is also required.
|
(2)
|
|
The filling of vacancies on the Board or in any committee.
|
(3)
|
|
The fixing of compensation of the directors for serving on the Board or on any committee.
|
(4)
|
|
The amendment or repeal of by-laws or the adoption of new by-laws.
|
(5)
|
|
The amendment or repeal of any resolution of the Board which by its express terms is not so amendable or repealable.
|
(6)
|
|
A distribution to the shareholders of the corporation as defined in Section 166 of the Corporations Code, except at at rate or in a periodic amount or within a
price range determined by the Board.
|
(7)
|
|
The appointment of other committees of the Board or the members thereof.
|
One Tabor Center, Suite 3000
|
||
1200 Seventeenth Street
|
Telephone 303.623.9000
|
|
Denver, Colorado 80202-5855
|
Fax 303.623.9222
|
|
www.rothgerber.com
|
EMPLOYEE
|
||
By:
|
/s/
|
|
Richard P. Smith
|
TRICO BANCSHARES
|
||
By:
|
/s/
|
|
Chairman of the Board
|
ARTICLE IPURPOSE
|
1
|
|||
ARTICLE IIDEFINITIONS
|
1
|
|||
2.1 Actuarial Equivalent
|
1
|
|||
2.2 Account
|
1
|
|||
2.3 Beneficiary
|
1
|
|||
2.4 Board
|
1
|
|||
2.5 Change in Control
|
1
|
|||
2.6 Committee
|
2
|
|||
2.7 Compensation
|
2
|
|||
2.8 Deferral Commitment
|
2
|
|||
2.9 Deferral Period
|
2
|
|||
2.10 Determination Date
|
3
|
|||
2.11 Disability
|
3
|
|||
2.12 Elective Deferred Compensation
|
3
|
|||
2.13 Employer
|
3
|
|||
2.14 Financial Hardship
|
3
|
|||
2.15 Interest Rate
|
3
|
|||
2.16 Participant
|
3
|
|||
2.17 Participation Agreement
|
4
|
|||
2.18 Plan Benefit
|
4
|
|||
2.19 Qualified Plans
|
4
|
|||
ARTICLE IIIPARTICIPATION AND DEFERRAL COMMITMENTS
|
4
|
|||
3.1 Eligibility and Participation
|
4
|
|||
3.2 Form of Deferral; Minimum
Deferral
|
4
|
|||
3.3 Limitation on Deferral
|
5
|
|||
3.4 Commitment Limited by Retirement
|
5
|
|||
3.5 Modification of Deferral
Commitment
|
5
|
|||
3.6 Change in Employment Status
|
5
|
|||
3.7 Discharge for Cause
|
5
|
|||
ARTICLE IVDEFERRED COMPENSATION ACCOUNT
|
6
|
|||
4.1 Accounts
|
6
|
|||
4.2 Elective Deferred Compensation
|
6
|
|||
4.3 Employer Discretionary
Contributions
|
6
|
|||
4.4 Qualified Plan Make-Up Credit
|
6
|
|||
4.5 Interest
|
6
|
|||
4.6 Determination of Accounts
|
7
|
|||
4.7 Vesting of Accounts
|
7
|
|||
4.8 Disability
|
7
|
|||
4.9 Statement of Accounts
|
7
|
|||
ARTICLE VPLAN BENEFITS
|
7
|
|||
5.1 Plan Benefit
|
7
|
5.2 Death Benefit
|
7
|
|||
5.3 Early Withdrawal Option
|
8
|
|||
5.4 Hardship Distributions
|
8
|
|||
5.5 Accelerated Distribution
|
8
|
|||
5.6 Form of Benefit Payment
|
9
|
|||
5.7 Withholding; Payroll Taxes
|
9
|
|||
5.8 Commencement of Payments
|
9
|
|||
5.9 Full Payment of Benefits
|
10
|
|||
5.10 Payment to Guardian
|
10
|
|||
5.11 Suicide; Misrepresentation
|
10
|
|||
ARTICLE VIBENEFICIARY DESIGNATION
|
10
|
|||
6.1 Beneficiary Designation
|
10
|
|||
6.2 Amendments
|
10
|
|||
6.3 No Beneficiary Designation
|
11
|
|||
6.4 Effect of Payment
|
11
|
|||
ARTICLE VIIADMINISTRATION
|
11
|
|||
7.1 Committee; Duties
|
11
|
|||
7.2 Agents
|
11
|
|||
7.3 Binding Effect of Decisions
|
11
|
|||
7.4 Indemnity of Committee
|
11
|
|||
ARTICLE VIIICLAIMS PROCEDURE
|
12
|
|||
8.1 Claim
|
12
|
|||
8.2 Denial of Claim
|
12
|
|||
8.3 Review of Claim
|
12
|
|||
8.4 Final Decision
|
12
|
|||
ARTICLE IXAMENDMENT AND TERMINATION OF PLAN
|
12
|
|||
9.1 Amendment
|
12
|
|||
9.2 Employers Right to
Terminate
|
13
|
|||
ARTICLE XMISCELLANEOUS
|
13
|
|||
10.1 Unfunded Plan
|
13
|
|||
10.2 Unsecured General Creditor
|
14
|
|||
10.3 Trust Fund
|
14
|
|||
10.4 Nonassignability
|
14
|
|||
10.5 Not a Contract of Employment
|
14
|
|||
10.6 Protective Provisions
|
14
|
|||
10.7 Terms
|
15
|
|||
10.8 Captions
|
15
|
|||
10.9 Governing Law
|
15
|
|||
10.10 Validity
|
15
|
|||
10.11 Notice
|
15
|
|||
10.12 Successors
|
16
|
Appropriate Account Balance
|
Payout Period
|
|
Less than $10,000
|
1 Year
|
|
$10,000 but less than $50,000
|
3 Years
|
|
More than $50,000
|
5 Years
|
TRICO BANCSHARES
|
||
By:
|
/s/
|
|
Chairman
|
||
By:
|
/s/
|
|
Secretary
|
||
Dated:
|
April 7, 1992
|
ARTICLE IPURPOSE; EFFECTIVE DATE
|
1
|
|
ARTICLE IIPARTICIPATION
|
1
|
|
3.1 Benefits
|
1
|
|
3.2 Amount of Benefit
|
1
|
|
3.3 Years of Service
|
2
|
|
3.4 Change in Control
|
2
|
|
3.5 Withholding Payroll Taxes
|
3
|
|
3.6 Payment to Guardian
|
3
|
|
ARTICLE IVBENEFICIARY DESIGNATION
|
3
|
|
4.1 Beneficiary Designation
|
3
|
|
4.2 Amendments; Marital Status
|
3
|
|
4.3 No Participant Designation
|
3
|
|
4.4 Effect of Payment
|
4
|
|
ARTICLE VADMINISTRATION
|
4
|
|
5.1 Board; Duties
|
4
|
|
5.2 Agents
|
4
|
|
5.3 Binding Effect of Decisions
|
4
|
|
5.4 Indemnity of Board.
|
4
|
|
ARTICLE VICLAIMS PROCEDURE
|
4
|
|
6.1 Claim
|
4
|
|
6.2 Denial of Claim
|
4
|
|
6.3 Review of Claim
|
5
|
|
6.4 Final Decision
|
5
|
|
ARTICLE VIITERMINATION, SUSPENSION OR AMENDMENT
|
5
|
|
7.1 Termination, Suspension or Amendment of Plan
|
5
|
|
ARTICLE VIIIMISCELLANEOUS
|
5
|
|
8.1 Unfunded Plan
|
5
|
|
8.2 Unsecured General Creditor
|
6
|
|
8.3 Trust Fund
|
6
|
|
8.4 Nonassignability
|
6
|
|
8.5 Not a Contract of Employment
|
6
|
|
8.6 Protective Provisions
|
7
|
|
8.7 Terms
|
7
|
|
8.8 Captions
|
7
|
|
8.9 Governing Law
|
7
|
|
8.10 Validity
|
7
|
|
8.11 Notice
|
7
|
|
8.12 Successors
|
8
|
TRI COUNTIES BANK
|
||
By:
|
/s/
|
|
By:
|
/s/
|
|
Dated: March 13, 2001
|
ARTICLE I PURPOSE; EFFECTIVE DATE
|
1
|
|
ARTICLE II DEFINITIONS
|
1
|
|
2.1 Actuarial Equivalent
|
1
|
|
2.2 Beneficiary
|
1
|
|
2.3 Board
|
1
|
|
2.4 Change in Control
|
1
|
|
2.5 Committee
|
2
|
|
2.6 Compensation
|
2
|
|
2.7 Disability
|
2
|
|
2.8 Early Retirement Date
|
2
|
|
2.9 Employer
|
2
|
|
2.10 Final Average Compensation
|
2
|
|
2.11 Normal Retirement Date
|
2
|
|
2.12 Participant
|
2
|
|
2.13 Participation Agreement
|
2
|
|
2.14 Retirement
|
3
|
|
2.15 Supplemental Retirement Benefit
|
3
|
|
2.16 Target Retirement Percentage
|
3
|
|
2.17 Years of Credited Service
|
3
|
|
ARTICLES III PARTICIPATION AND VESTING
|
3
|
|
3.1 Eligibility and Participation
|
3
|
|
3.2 Change in Employment Status
|
3
|
|
3.3 Vesting
|
3
|
|
3.4 Suicide; Misrepresentation
|
3
|
|
3.5 Discharge for Cause
|
4
|
|
ARTICLE IV SURVIVOR BENEFITS
|
4
|
|
4.1 Pre-Determination Survivor Benefit
|
4
|
|
4.2 Post-Termination Survivor Benefit
|
4
|
|
ARTICLE V
|
5
|
|
5.1 Normal Retirement Benefit
|
5
|
|
5.2 Early Retirement Benefit
|
6
|
|
5.3 Early Termination Benefits.
|
6
|
|
5.4 Reduction for Early Commencement of Benefits
|
6
|
|
5.5 Form of Benefit Payment
|
6
|
|
5.6 Commencement of Benefit Payments
|
7
|
|
5.7 Withholding; Payroll Taxes
|
7
|
|
5.8 Payment to Guardian
|
7
|
ARTICLE VI BENEFICIARY DESIGNATION
|
7
|
|
6.1 Beneficiary Designation
|
7
|
|
6.2 Amendments; Marital Status
|
7
|
|
6.3 No Participant Designation
|
8
|
|
6.4 Effect of Payment
|
8
|
|
ARTICLE VII ADMINISTRATION
|
8
|
|
7.1 Committee; Duties
|
8
|
|
7.2 Agents
|
8
|
|
7.3 Binding Effect of Decisions
|
8
|
|
7.4 Indemnity of Committee
|
8
|
|
ARTICLE VIII CLAIMS PROCEDURE
|
8
|
|
8.1 Claim
|
8
|
|
8.2 Denial of Claim
|
8
|
|
8.3 Review of Claim
|
9
|
|
8.4 Final Decision
|
9
|
|
ARTICLE IX TERMINATION, SUSPENSION OR AMENDMENT
|
9
|
|
9.1 Termination, Suspension or Amendment of Plan
|
9
|
|
ARTICLE X MISCELLANEOUS
|
9
|
|
10.1 Unfunded Plan
|
9
|
|
10.2 Unsecured General Creditor
|
9
|
|
10.3 Trust Fund
|
10
|
|
10.4 Nonassignability
|
10
|
|
10.5 Not a Contract of Employment
|
10
|
|
10.6 Protective Provisions
|
10
|
|
10.7 Terms
|
10
|
|
10.8 Captions
|
10
|
|
10.9 Governing Law
|
11
|
|
10.10 Validity
|
11
|
|
10.11 Notice
|
11
|
|
10.12 Successors
|
11
|
TRICO BANCSHARES
|
||
By:
|
/s/
|
|
Chairman
|
By:
|
/s/
|
|
Secretary
|
||
Dated: September 9, 1987
|
ARTICLE IPURPOSE
|
1
|
|
ARTICLE IIDEFINITIONS
|
1
|
|
2.1 Actuarial Equivalent
|
1
|
|
2.2 Account
|
1
|
|
2.3 Beneficiary
|
1
|
|
2.4 Board
|
1
|
|
2.5 Change in Control
|
1
|
|
2.6 Committee
|
2
|
|
2.7 Compensation
|
2
|
|
2.8 Deferral Commitment
|
2
|
|
2.9 Deferral Period
|
2
|
|
2.10 Determination Date
|
3
|
|
2.11 Elective Deferred Compensation
|
3
|
|
2.12 Employer
|
3
|
|
2.13 Financial Hardship
|
3
|
|
2.14 Interest Rate
|
3
|
|
2.15 Participant
|
3
|
|
2.16 Participation Agreement
|
3
|
|
2.17 Plan Benefit
|
3
|
|
ARTICLE IIIPARTICIPATION AND DEFERRAL COMMITMENTS
|
4
|
|
3.1 Eligibility and Participation
|
4
|
|
3.2 Form of Deferral; Minimum
Deferral
|
4
|
|
3.3 Limitation on Deferral
|
4
|
|
3.4 Modification of Deferral
Commitment
|
4
|
|
ARTICLE IVDEFERRED COMPENSATION ACCOUNT
|
5
|
|
4.1 Accounts
|
5
|
|
4.2 Elective Deferred Compensation
|
5
|
|
4.3 Employer Discretionary
Contributions
|
5
|
|
4.4 Interest
|
5
|
|
4.5 Determination of Accounts
|
5
|
|
4.6 Vesting of Accounts
|
5
|
|
4.7 Statement of Accounts
|
6
|
|
ARTICLE VPLAN BENEFITS
|
6
|
|
5.1 Plan Benefit
|
6
|
|
5.2 Death Benefit
|
6
|
|
5.3 Early Withdrawal Option.
|
6
|
|
5.4 Hardship Distributions
|
7
|
|
5.5 Accelerated Distribution
|
7
|
|
5.6 Form of Benefit Payment
|
7
|
|
5.7 Withholding; Payroll Taxes
|
8
|
|
5.8 Commencement of Payments
|
8
|
5.9 Full Payment of Benefits
|
8
|
|
5.10 Payment to Guardian
|
8
|
|
5.11 Suicide; Misrepresentation
|
8
|
|
ARTICLE VIBENEFICIARY DESIGNATION
|
9
|
|
6.1 Beneficiary Designation
|
9
|
|
6.2 Amendments
|
9
|
|
6.3 No Beneficiary Designation
|
9
|
|
6.4 Effect of Payment
|
9
|
|
ARTICLE VIIADMINISTRATION
|
9
|
|
7.1 Committee; Duties
|
9
|
|
7.2 Agents
|
10
|
|
7.3 Binding Effect of Decisions
|
10
|
|
7.4 Indemnity of Committee
|
10
|
|
ARTICLE VIIICLAIMS PROCEDURE
|
10
|
|
8.1 Claim
|
10
|
|
8.2 Denial of Claim
|
10
|
|
8.3 Review of Claim
|
10
|
|
8.4 Final Decision
|
11
|
|
ARTICLE IXAMENDMENT AND TERMINATION OF PLAN
|
11
|
|
9.1 Amendment
|
11
|
|
9.2 Employer's Right to Terminate
|
11
|
|
ARTICLE XMISCELLANEOUS
|
12
|
|
10.1 Unfunded Plan
|
12
|
|
10.2 Unsecured General Creditor
|
12
|
|
10.3 Trust Fund
|
12
|
|
10.4 Nonassignability
|
12
|
|
10.5 Not a Contract of Employment
|
13
|
|
10.6 Protective Provisions
|
13
|
|
10.7 Terms
|
13
|
|
10.8 Captions
|
13
|
|
10.9 Governing Law
|
13
|
|
10.10 Validity
|
13
|
|
10.11 Notice
|
13
|
|
10.12 Successors
|
14
|
Appropriate Account Balance
|
Payout Period
|
|
Less than $10,000
|
1 Year
|
|
$10,000 but less than $50,000
|
3 Years
|
|
More than $50,000
|
5 Years
|
TRICO BANCSHARES
|
||
By:
|
/s/
|
|
By:
|
/s/
|
|
Dated:
|
April 7, 1992
|
For the
year
ended December 31,
|
For the
nine
months
ended September 30,
|
|||||||||||
2001
|
2000
|
2002
|
2001
|
|||||||||
(In thousands, except per share data)
|
||||||||||||
Weighted average number of common shares outstandingbasic
|
|
7,072
|
|
7,192
|
|
7,010
|
|
7,087
|
||||
Add exercise of options reduced by the number of shares that could have been purchased with the proceeds of such
exercise
|
|
147
|
|
149
|
|
178
|
|
150
|
||||
|
|
|
|
|
|
|
|
|||||
Weighted average number of common shares outstandingdiluted
|
|
7,219
|
|
7,341
|
|
7,188
|
|
7,237
|
||||
|
|
|
|
|
|
|
|
|||||
Net income
|
$
|
12,419
|
$
|
12,623
|
$
|
10,320
|
$
|
9,061
|
||||
Basic earnings per share
|
$
|
1.76
|
$
|
1.76
|
$
|
1.47
|
$
|
1.28
|
||||
Diluted earnings per share
|
$
|
1.72
|
$
|
1.72
|
$
|
1.44
|
$
|
1.25
|
SHAREHOLDER(S)
|
|
(Signature)
|
|
(Signature)
|
|
(No. of Common Shares)
|
Date
, 2003
|
I/We do
or do not
expect to attend this
meeting.
|
¨
|
|
I elect to receive all cash.
|
¨
|
|
I elect to receive all TriCo stock (valued at the average closing price).
|
¨
|
|
I elect to receive approximately 56% to 63% in TriCo stock and the balance in cash.
|
(Signature)
|
(Signature - if shares are held in more than one name)
|
|
Name (Please print or type)
|
Name (Please print or type)
|
|
Street Address
|
No. of Common Shares Owned
|
|
City and
State
Zip
|
||
Telephone
|
||
Social Security Number(s):
|
|
|
or
|
|
|
Taxpayer Identification Number(s):
|
|
|
|