UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
April 21, 2003
Commission file number: 001-14319
RESOURCE BANKSHARES CORPORATION
(Exact name of Registrant as specified in its charter)
Virginia | 54-1904386 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
3720 Virginia Beach Blvd., Virginia Beach, Virginia 23452
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code:757-463-2265
Item 9. Regulation FD Disclosure
Item 12. Results of Operation and Financial Condition
The press release of Resource Bankshares Corporation dated April 21, 2003, is furnished to the Securities and Exchange Commission under both Item 9 and Item 12 of this Form 8-K.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Resource Bankshares Corporation | ||
By: | /s/ LAWRENCE N. SMITH | |
Lawrence N. Smith Chief Executive Officer | ||
RESOURCE BANKSHARES CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)
ASSETS | March 31 2003 | December 31 2002 | March 31 2002 | |||||||
Cash and cash equivalents | $ | 7,384 | $ | 13,399 | $ | 5,878 |
| |||
Securities held to maturity |
| 125,399 |
| 108,650 |
| — |
| |||
Securities available for sale |
| 21,894 |
| 21,191 |
| 129,816 |
| |||
Funds advanced in settlement of mortgage loans |
| 81,326 |
| 111,113 |
| 46,228 |
| |||
Loans receivable, net |
| 464,898 |
| 427,735 |
| 381,061 |
| |||
Real estate owned |
| 75 |
| — |
| 51 |
| |||
Other assets |
| 36,133 |
| 33,079 |
| 26,923 |
| |||
Total assets | $ | 737,109 | $ | 715,167 | $ | 589,957 |
| |||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
LIABILITIES: | ||||||||||
Deposits | $ | 512,019 | $ | 516,449 | $ | 397,843 |
| |||
Federal funds purchased and securities sold under agreements to repurchase |
| 46,401 |
| 32,347 |
| 28,608 |
| |||
Advances from Federal Home Loan Bank |
| 96,000 |
| 105,000 |
| 114,000 |
| |||
Capital Trust borrowings |
| 16,200 |
| 16,200 |
| 14,200 |
| |||
Other liabilities |
| 14,650 |
| 13,004 |
| 6,928 |
| |||
Total liabilities | $ | 685,270 | $ | 683,000 | $ | 561,579 |
| |||
STOCKHOLDERS' EQUITY | ||||||||||
Common stock, $1.50 par value, authorized 6,666,666 shares, | $ | 5,969 | $ | 4,541 | $ | 4,668 |
| |||
Additional paid in capital |
| 31,035 |
| 14,230 |
| 15,919 |
| |||
Retained earnings |
| 14,440 |
| 12,758 |
| 9,004 |
| |||
Accumulated other comprehensive gain (loss) |
| 395 |
| 638 |
| (1,213 | ) | |||
Total stockholders' equity | $ | 51,839 | $ | 32,167 | $ | 28,378 |
| |||
Total liabilities and stockholders' equity | $ | 737,109 | $ | 715,167 | $ | 589,957 |
| |||
RESOURCE BANKSHARES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(UNAUDITED)
Three months ended March 31 | ||||||||
2003 | 2002 | |||||||
Interest income | $ | 9,634 |
| $ | 8,169 |
| ||
Interest expense |
| 4,509 |
|
| 4,981 |
| ||
Net interest income |
| 5,125 |
|
| 3,188 |
| ||
Provision for loan losses |
| 150 |
|
| 70 |
| ||
Noninterest income |
| 7,214 |
|
| 5,095 |
| ||
Noninterest expense |
| 9,065 |
|
| 6,416 |
| ||
Net income before income taxes |
| 3,124 |
|
| 1,797 |
| ||
Income tax expense |
| 921 |
|
| 519 |
| ||
Net income | $ | 2,203 |
| $ | 1,278 |
| ||
Basic earnings per common share | $ | 0.65 |
| $ | 0.41 |
| ||
Diluted earnings per common share | $ | 0.61 |
| $ | 0.39 |
| ||
Book value per share | $ | 13.02 |
| $ | 9.12 |
| ||
Return on average assets |
| 1.24 | % |
| 0.91 | % | ||
Return on average equity |
| 22.88 | % |
| 17.98 | % | ||
Average basis common shares issued |
| 3,404,991 |
|
| 3,103,011 |
| ||
Average diluted shares issued |
| 3,589,259 |
|
| 3,291,151 |
| ||
Dividends declared per common share | $ | 0.17 |
| $ | 0.14 |
| ||
Non earning assets (non-accruals and other real estate owned) | $ | 525 |
| $ | 456 |
| ||
Net overhead ratio |
| 1.04 | % |
| 0.94 | % | ||
Financial Margin (TE) |
| 3.16 | % |
| 2.50 | % | ||
Average earning assets | $ | 670,827 |
| $ | 531,773 |
| ||
RESOURCE BANKSHARES CORPORATION
(Unaudited)
Three Months Ended March 31, 2003 | Three Months Ended March 31, 2002 | |||||||||||||||||||
Average Balance(1) | Interest | Yield/ Rate(2) | Average Balance(1) | Interest | Yield/ Rate(2) | |||||||||||||||
Assets | ||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||
Securities (3) | $ | 133,091 |
| $ | 2,212 | 6.74 | % | $ | 120,092 |
| $ | 2,094 | 7.07 | % | ||||||
Loans (4) |
| 444,318 |
|
| 5,991 | 5.47 | % |
| 361,888 |
|
| 5,293 | 5.93 | % | ||||||
Interest-earning deposits |
| 6,390 |
|
| 19 | 1.21 | % |
| 3,991 |
|
| 20 | 2.03 | % | ||||||
Other interest-earning assets (5) |
| 87,028 |
|
| 1,509 | 7.03 | % |
| 45,802 |
|
| 857 | 7.59 | % | ||||||
Total interest-earning assets |
| 670,827 |
|
| 9,731 | 5.88 | % |
| 531,773 |
|
| 8,264 | 6.30 | % | ||||||
Noninterest earning assets: | ||||||||||||||||||||
Cash and due from banks |
| 13,802 |
|
| 8,865 |
| ||||||||||||||
Premises and equipment |
| 10,295 |
|
| 9,186 |
| ||||||||||||||
Other assets |
| 21,737 |
|
| 17,223 |
| ||||||||||||||
Less: Allowance for loan losses |
| (5,043 | ) |
| (3,699 | ) | ||||||||||||||
Total noninterest earning assets |
| 40,791 |
|
| 31,575 |
| ||||||||||||||
Total assets | $ | 711,618 |
| $ | 563,348 |
| ||||||||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||
Interest-bearing deposits: | ||||||||||||||||||||
Demand/Money Market Accounts | $ | 61,029 |
| $ | 228 | 1.52 | % | $ | 84,425 |
| $ | 395 | 1.90 | % | ||||||
Savings |
| 3,954 |
|
| 25 | 2.56 | % |
| 4,612 |
|
| 34 | 2.99 | % | ||||||
Certificates of deposit |
| 430,422 |
|
| 2,873 | 2.71 | % |
| 292,519 |
|
| 3,221 | 4.47 | % | ||||||
Total interest-bearing deposits |
| 495,405 |
|
| 3,126 | 2.56 | % |
| 381,556 |
|
| 3,650 | 3.88 | % | ||||||
FHLB advances and other borrowings |
| 117,382 |
|
| 1,091 | 3.77 | % |
| 110,121 |
|
| 1,043 | 3.84 | % | ||||||
Capital debt securities |
| 16,200 |
|
| 292 | 7.21 | % |
| 14,200 |
|
| 288 | 8.11 | % | ||||||
Total interest-bearing liabilities |
| 628,987 |
|
| 4,509 | 2.91 | % |
| 505,877 |
|
| 4,981 | 3.99 | % | ||||||
Noninterest-bearing liabilities: | ||||||||||||||||||||
Demand deposits |
| 34,176 |
|
| 22,439 |
| ||||||||||||||
Other liabilities |
| 9,942 |
|
| 6,589 |
| ||||||||||||||
Total noninterest-bearing liabilities |
| 44,118 |
|
| 29,028 |
| ||||||||||||||
Stockholders' equity |
| 38,513 |
|
| 28,443 |
| ||||||||||||||
Total liabilities and stockholders' equity | $ | 711,618 |
| $ | 563,348 |
| ||||||||||||||
Interest spread (6) | 2.98 | % | 2.31 | % | ||||||||||||||||
Net interest income/net interest margin (7) | $ | 5,222 | 3.16 | % | $ | 3,283 | 2.50 | % | ||||||||||||
| (1) | Average balances are computed on daily balances and Management believes such balances are representative of the operations of the Company. |
| (2) | Yield and rate percentages are all computed through the annualization of interest income and expenses versus the average balances of their respective accounts. |
| (3) | Tax equivalent basis. The tax equivalent adjustment to net interest income was $97 thousand and $95 thousand for the three months ended March 31, 2003 and 2002, respectively. |
| (4) | Non-accrual loans are included in the average loan balances, and income on such loans is recognized on a cash basis. |
| (5) | Consists of funds advanced in settlement of loans. |
| (6) | Interest spread is the average yield earned on earning assets, less the average rate incurred on interest bearing liabilities. |
| (7) | Net interest margin is net interest income expressed as a percentage of average earning assets. |
RESOURCE BANKSHARES CORPORATION
(Unaudited)
For the period ended March 31 | ||||||||
2003 | 2002 | |||||||
ASSET QUALITY | ||||||||
Non accrual loans | $ | 450,297 |
| $ | 405,170 |
| ||
Loans 90 days past due | $ | 157,284 |
| $ | 1,268,203 |
| ||
Other real estate owned | $ | 75,263 |
| $ | 50,621 |
| ||
Non accrual loans and OREO/loans and funds advanced |
| 0.10 | % |
| 0.11 | % | ||
Net charge-offs | $ | 5,111 |
| $ | — |
| ||
Net charge-off ratio (annualized) |
| 0.0037 | % |
| n/a |
| ||
Loan loss provision | $ | 150,000 |
| $ | 70,000 |
| ||
Loan loss reserve | $ | 5,153,787 |
| $ | 3,766,966 |
| ||
MORTGAGE SEGMENT | ||||||||
Retail loan closings | $ | 267,605,396 |
| $ | 183,052,325 |
| ||
Retail mortgage banking income | $ | 6,199,256 |
| $ | 3,877,048 |
| ||
Retail mortgage banking expense | $ | 5,320,515 |
| $ | 3,690,769 |
| ||
Retail mortgage pre-tax income | $ | 878,741 |
| $ | 186,279 |
| ||
Retail mortgage post-tax income | $ | 615,119 |
| $ | 130,395 |
| ||
Retail number of employees |
| 208 |
|
| 185 |
| ||
Commercial mortgage post-tax income | $ | (25,227 | ) | $ | (53,012 | ) | ||
Commercial number of employees |
| 10 |
|
| 10 |
| ||
BANKING SEGMENT | ||||||||
Non interest income | $ | 676,454 |
| $ | 1,104,156 |
| ||
Non interest expense | $ | 3,254,389 |
| $ | 2,518,293 |
| ||
Efficiency ratio |
| 53.42 | % |
| 55.02 | % | ||
Net overhead ratio |
| 1.49 | % |
| 1.02 | % | ||
Financial margin (TE) with deferred fees/costs |
| 3.33 | % |
| 2.73 | % | ||
Financial margin (TE) without deferred fees/costs |
| 3.73 | % |
| 3.31 | % | ||
Number of employees |
| 126 |
|
| 115 |
| ||
Bank and Mortgage Group | ||||||||
Efficiency ratio |
| 70.90 | % |
| 74.68 | % | ||
Net overhead ratio |
| 0.99 | % |
| 0.94 | % | ||
Number of employees |
| 344 |
|
| 310 |
| ||
