SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
---------------------------
FORM 10-QSB
(Mark One)
X QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2003.
OR
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
- ----- SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
------------- -------------
Commission File No. 33-31013-A
ISLANDS BANCORP
----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
SOUTH CAROLINA 57-1082388
------------------------ ------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
2348 Boundary Street, Beaufort, SC 29902
---------------------------------------------------------------
(Address of Principal Executive Offices)
(843) 521-1968
------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
N/A
------------------------------------------------
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Check whether the issuer (1) filed all reports required to be filed by
section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.
Yes X No
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares
outstanding of each of the issuer's classes of common equity as of the latest
practicable date.
Common stock, no par value per share, 652,705 shares outstanding as of
July 31, 2003.
Transitional small business disclosure format (check one):
Yes No X
---- ----
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
------- --------------------
ISLANDS BANCORP
BEAUFORT, SOUTH CAROLINA
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS June 30, December 31,
- ------ 2003 2002
----------- ----------
Cash and due from banks $ 484,960 $ 394,484
Federal funds sold - - - -
----------- -----------
Total cash and cash equivalents $ 484,960 $ 394,484
Securities:
Available-for-sale, at fair value 3,009,554 1,334,763
Loans, net 22,773,135 18,872,582
Property and equipment, net 2,979,296 2,858,610
Other assets 496,439 559,591
----------- -----------
Total Assets $29,743,384 $24,020,030
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Liabilities:
Deposits
Non-interest bearing deposits $ 2,787,081 $ 1,563,515
Interest bearing deposits 21,402,232 16,926,102
----------- -----------
Total deposits $24,189,313 $18,489,617
Federal funds purchased 339,000 308,000
Other liabilities 118,411 88,529
----------- -----------
Total liabilities $24,646,724 $18,886,146
----------- -----------
Commitments and contingencies
Shareholders' Equity:
Common stock, zero par value,
10,000,000 shares authorized,
652,705 shares issued and
outstanding $ 6,213,061 $ 6,213,061
Retained deficit (1,123,293) (1,086,429)
Accumulated other comprehensive income 6,892 7,252
----------- -----------
Total Shareholders' Equity $ 5,096,660 $ 5,133,884
----------- -----------
Total Liabilities and
Shareholders' Equity $29,743,384 $24,020,030
=========== ===========
Refer to notes to the consolidated financial statements.
ISLANDS BANCORP
BEAUFORT, SOUTH CAROLINA
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the three-month
period ended June 30,
-------------------------
2003 2002
---- ----
Interest income $ 418,496 $ 245,802
Interest expense 147,894 67,710
-------- --------
Net interest income $ 270,602 $ 178,092
Provision for loan losses 25,022 40,676
-------- --------
Net interest income
after provision for loan losses $ 245,580 $ 137,416
-------- --------
Other income:
Service fees on deposit accounts $ 41,762 $ 16,794
Miscellaneous, other 1,154 672
-------- --------
Total other income $ 42,916 $ 17,466
-------- --------
Other expenses:
Salaries and benefits $ 158,137 $ 146,463
Depreciation expense 35,834 16,553
Data processing 26,143 22,502
Rent expense - - 12,825
ATM machine expense 7,280 10,458
Advertising and public relations 3,298 4,836
Utilities and telephone 7,321 3,945
Legal and professional 22,954 12,787
Other operating expenses 45,021 36,081
-------- --------
Total operating expenses $ 305,988 $ 266,450
-------- --------
Loss before income tax (benefit) $ (17,492) $(111,568)
Income tax (benefit) (6,519) (43,365)
-------- --------
Net (loss) $ (10,973) $ (68,203)
======== ========
Basic (loss) per share $ (.02) $ (.10)
======== ========
Diluted (loss) per share $ (.02) $ (.10)
======== ========
Refer to notes to the consolidated financial statements.
ISLANDS BANCORP
BEAUFORT, SOUTH CAROLINA
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the six-month
period ended June 30,
-------------------------
2003 2002
---- ----
Interest income $ 800,265 $ 414,720
Interest expense 288,029 104,410
-------- --------
Net interest income $ 512,236 $ 310,310
Provision for loan losses 45,404 69,316
-------- --------
Net interest income
after provision for loan losses $ 466,832 $ 240,994
-------- --------
Other income:
Service fees on deposit accounts $ 79,822 $ 31,981
Miscellaneous, other 2,595 887
-------- --------
Total other income $ 82,417 $ 32,868
-------- --------
Other expenses:
Salaries and benefits $ 326,754 $ 280,431
Depreciation expense 70,333 31,545
Data processing 54,067 43,395
Rent expense - - 25,650
ATM machine expense 13,980 20,043
Advertising and public relations 5,584 11,174
Utilities and telephone 13,590 8,282
Legal and professional 34,339 22,336
Other operating expenses 89,271 67,361
-------- --------
Total operating expenses $ 607,918 $ 510,217
-------- --------
Loss before income tax (benefit) $ (58,669) $(236,355)
Income tax (benefit) (21,805) (90,265)
-------- --------
Net (loss) $ (36,864) $(146,090)
======== ========
Basic (loss) per share $ (.06) $ (.22)
======== ========
Diluted (loss) per share $ (.06) $ (.22)
======== ========
Refer to notes to the consolidated financial statements.
ISLANDS BANCORP
BEAUFORT, SOUTH CAROLINA
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
For the six-month
period ended June 30,
------------------------------
2003 2002
---- ----
Net cash (used in) operating activities $ 219,430 $ (496,159)
----------- ----------
Cash flows from investing activities:
Securities paydowns, calls, maturities $ 317,195 $ 113,606
Purchase of securities, AFS (2,015,957) (500,000)
Increase in loans (3,969,869) (6,122,220)
Purchase of fixed assets (191,019) (78,598)
----------- ----------
Net cash used in investing activities $ (5,859,650) $(6,587,212)
----------- ----------
Cash flows from financing activities:
Increase in deposits $ 5,699,696 $ 8,646,693
Increase in federal funds purchased 31,000 (1,000,000)
----------- ----------
Net cash provided
by financing activities $ 5,730,696 $ 7,646,693
----------- ----------
Net increase in
cash and cash equivalents $ 90,476 $ 563,322
Cash and cash equivalents,
beginning of period 394,484 464,139
----------- ----------
Cash and cash equivalents,
end of period $ 484,960 $ 1,027,461
=========== ==========
Refer to notes to the consolidated financial statements.
ISLANDS BANCORP
BEAUFORT, SOUTH CAROLINA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2002 AND 2003
(UNAUDITED)
Common Stock Accumulated
------------------ Other
No. of Retained Comprehensive
Shares Amount Deficit Income Total
------ ------ -------- ------ -----
Balance,
December 31,
2001 652,705 $ 6,213,061 $ (848,572) $ (515) $ 5,363,974
--------- ---------- --------- -------- ----------
Comprehensive Income:
- --------------------
Net (loss),
six-month
period ended
June 30, 2002 - - - - (146,090) - - (146,090)
Net unrealized
gains on
securities,
six-month
period ended
June 30, 2002 - - - - - - 5,669 5,669
--------- ---------- --------- -------- ----------
Total comprehensive
income/(loss) - - - - (146,090) 5,669 (140,421)
--------- ---------- --------- -------- ----------
Balance,
June 30,
2002 652,705 $ 6,213,061 $ (994,662) $ 5,154 $ 5,223,553
========= ========== ========= ======== ==========
- ---------------------------------
Balance,
December 31,
2002 652,705 $ 6,213,061 $(1,086,429) $ 7,252 $ 5,133,884
--------- --------- ---------- -------- ----------
Comprehensive Income:
- ---------------------
Net (loss),
six-month
period ended
June 30,
2003 - - - - (36,864) - - (36,864)
--------- ---------- ---------- -------- ----------
Net unrealized
(loss) on
securities,
six-month
period ended
June 30, 2003 - - - - - - (360) (360)
--------- ---------- ---------- -------- ----------
Total comprehensive
(loss) - - - - (36,864) (360) (37,224)
--------- ---------- ---------- -------- ----------
Balance,
June 30,
2003 652,705 $ 6,213,061 $(1,123,293) $ 6,892 $ 5,096,660
========= ========== ========== ======== ==========
Refer to notes to the consolidated financial statements.
ISLANDS BANCORP
BEAUFORT, SOUTH CAROLINA
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
JUNE 30, 2003
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB and Item 310
of Regulation S-B promulgated by the Securities and Exchange Commission.
Accordingly, they do not include all the information and footnotes required
by generally accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments (consisting only
of those of a normal recurring nature) considered necessary for a fair
presentation have been included. Operating results for the three-month and
six-month periods ended June 30, 2003 are not necessarily indicative of the
results that may be expected for the year ending December 31, 2003. These
statements should be read in conjunction with the financial statements and
footnotes thereto included in the annual report for the year ended December
31, 2002.
NOTE 2 - SUMMARY OF ORGANIZATION
Islands Bancorp (the "Company") is a one-bank holding company with
respect to Islands Community Bank, N.A., Beaufort, South Carolina (the
"Bank"). The Company was incorporated July 23, 1999, ant its principal
operations commenced when the Bank opened for business on July 9, 2001. The
Bank is engaged in the business of gathering and obtaining customers'
deposits and providing commercial, consumer and real estate loans to the
general public.
NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS
In December 2001, the American Institute of Certified Public Accountants
issued Statement of Position ("SOP") 01-6, "Accounting by Certain Entities
(Including Entities With Trade Receivables) That Lend to or Finance the
Activities of Others." SOP 01-6 reconciles the specialized accounting and
financial reporting guidance in the existing Banks and Savings Institutions
Guide, Audits of Credit Unions Guide, and Audits of Finance Companies Guide.
The SOP eliminates differences in accounting and disclosure established by the
respective guides and carries forward accounting guidance for transactions
determined to be unique to certain financial institutions. Adoption of this
pronouncement has not had a material impact on the Company's results of
operations or financial position.
In October 2002, the Financial Accounting Standards Board ("FASB") issued
SFAS No. 147, "Acquisitions of Certain Financial Institutions," which addresses
accounting for the acquisition of certain financial institutions. The
provisions of SFAS No. 147 rescind the specialized accounting guidance in
paragraph 5 of SFAS No. 72 and would require unidentifiable intangible assets to
be reclassified to goodwill if certain criteria are met. Financial institutions
meeting the conditions outlined in SFAS No. 147 will be required to restate
previously issued financial statements after September 30, 2002. The adoption
of SFAS No. 147 has had no material impact on the Company's results of
operations or financial position.
In December 2002, FASB issued SFAS No. 148, "Accounting for Stock-Based
Compensation - Transition and Disclosure," which amended SFAS No. 123,
"Accounting for Stock-Based Compensation" to provide alternative methods of
transition for a voluntary change to the fair value based method of accounting
for stock-based compensation. In addition, this statement amended the
disclosure requirements of SFAS No. 123 to require prominent disclosures in both
annual and interim financial statements about the method of accounting for
stock-based employee compensation and the effect of the chosen method on
reporting results. The provisions of SFAS No. 148 are effective for annual
periods ending December 15, 2002, and for interim periods beginning after
December 15, 2002.
In November 2002, FASB issued Interpretation No. 45, "Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others." It addresses the accounting for the
stand-ready obligation under guarantees. A guarantor is required to recognize a
liability with respect to its stand-ready obligation under the guarantee even if
the probability of future payments under the guarantee is remote. The initial
liability will be measured as the fair value of the stand-ready obligation.
Additionally, the Interpretation addresses the disclosure requirements for
guarantees including the nature and terms of the guarantees, maximum potential
for future amounts and the carrying amount of the liabilities. The disclosure
requirements are effective for interim and annual financial statements ending
after December 15, 2002. The initial recognition and measurement provisions are
effective for all guarantees within the scope of Interpretation 45 issued or
modified after December 31, 2002. Commercial letters of credit and other loan
commitments, which are commonly thought of as guarantees of funds were not
included in the scope of interpretation. The Company has made relevant
disclosures in the current year financial statements. The Company does not
expect the adoption of Interpretation No. 45 to have a material impact on its
financials.
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ------------------------------------------------------------------------
RESULTS OF OPERATIONS.
----------------------
Total assets increased by $5.7 million, from $24.0 million at December
31, 2002 to $29.7 million at June 30, 2003. More specifically, cash and cash
equivalents, which includes cash on hand and cash due from banks, increased by
$.1 million, from $.4 million at December 31, 2002 to $.5 million at June 30,
2003; securities increased by $1.7 million, from $1.3 million at December 31,
2002 to $3.0 million at June 30, 2003; loans increased by $3.9 million, from
$18.9 million at December 31, 2002 to $22.8 million at June 30, 2003; property
and equipment increased by $.1 million, from $2.9 million at December 31, 2002
to $3.0 million at June 30, 2003; and all other remaining assets decreased by
$.1 million, from $.6 million at December 31, 2002 to $.5 million at June 30,
2003. To fund the growth in assets, deposits increased by $5.7 million, from
$18.5 million at December 31, 2002 to $24.2 million at June 30, 2003; all other
liabilities remained constant at $.5 million, and the capital accounts also
remained constant at $5.1 million.
Liquidity and Sources of Capital
- --------------------------------
From its inception until July 6, 2001, the Company's operations were
funded primarily through loans and other borrowings. On July 6, 2001, the
Company received approximately $6.2 million from the sale of its common stock
to the public. Soon thereafter, the Company injected $6.0 million into the
Bank's capital accounts and used the majority of the remaining funds to pay-
off debt it had incurred during the development stage. The Bank, in turn,
also paid-off debts associated with its organizational costs, the purchase of
its facilities, and the purchase of its furniture and equipment.
Liquidity is the Company's ability to meet all deposit withdrawals
immediately, while also providing for the credit needs of customers. The
June 30, 2003 financial statements evidence a satisfactory liquidity position
as total cash and cash equivalents amounted to $.5 million, representing
1.6% of total assets. Investment securities, which amounted to $3.0 million,
or 10.1% of total assets, provide a secondary source of liquidity because they
can be converted into cash in a timely manner. The Bank is a member of the
Federal Reserve System and maintains relationships with several correspondent
banks and, thus, could obtain funds from these banks on short notice. The
Company's management closely monitors and maintains appropriate levels of
interest earning assets and interest bearing liabilities, so that maturities
of assets can provide adequate funds to meet customer withdrawals and loan
demand. The Company knows of no trends, demands, commitments, events or
uncertainties that will result in or are reasonably likely to result in its
liquidity increasing or decreasing in any material way. The Bank maintains
an adequate level of capitalization as measured by the following capital
ratios and the respective minimum capital requirements by the Bank's primary
regulator, the OCC.
Bank's Minimum required
June 30, 2003 by the OCC
------------- ----------------
Leverage ratio 18.3% 4.0%
Risk weighted ratio 23.0% 8.0%
Results of Operations
- ---------------------
For the three-month period ended June 30, 2003, net (loss) amounted to
$(10,973), or $(.02) per both basic and diluted share. For the three-month
period ended June 30, 2002, net (loss) amounted to $(68,203), or $(.10) per
both basic and diluted share. The reasons for the improvement in the results
of operations for the three-month period ended June 30, 2003 vis-a-vis the
results obtained during the three-month period ended June 30, 2002 are as
follows:
(a) Net interest income increased from $178,092 for the
three-month period ended June 30, 2002 to $270,602 during the three-
month period ended June 30, 2003, an increase of approximately
$92,510. The main reason for the above increase centers on the fact
that average earnings assets have increased by $12.5 million, from
$11.3 million (2002) to $23.8 million (2003).
(b) Non-interest income for the three-month periods ended June 30, 2003
and 2002 amounted to $42,916 and $17,466, respectively. As a percent
of average assets, non-interest income has increased from .51% for the
three-month period ended June 30, 2002 to .62% for the three-month
period ended June 30, 2003.
(c) Non-interest expense has increased from $266,450 for the three-month
period ended June 30, 2002 to $305,988 for the three-month period ended
June 30, 2003. As a percent of average assets, however, non-interest
expense has declined from 7.75% for the 2002 period to 4.42% for the
2003 period. The above results indicate that while expenses are
growing, the Company is achieving higher levels of efficiency.
For the six-month period ended June 30, 2003, net (loss) amounted to
$(36,864), or $(.06) per both basic and diluted share. For the six-month
period ended June 30, 2002, net (loss) amounted to $(146,090), or $(.22) per
both basic and diluted share. The primary reasons for the improvement in
income for the six-month period ended June 30, 2003 when compared with the
six-month period ended June 30, 2002 are as follows:
a. Interest income, which represents interest received on interest earning
assets, increased from $414,720 for the six-month period ended June 30,
2002 to $800,265 for the six-month period ended June 30, 2003, an
increase of $385,545. The cost of funds, which represents interest paid
on deposits and borrowings, increased as well, from $104,410 for the six-
month period ended June 30, 2002 to $288,029 for the six-month period
ended June 30, 2003, an increase of $183,619. Because the growth in
interest income during the six-month period ended June 30, 2003 out-
paced the increase in the cost of funds, net interest income grew from
$310,310 for the six-month period ended June 30, 2002 to $512,236 for the
six-month period ended June 30, 2003.
Net interest yield, defined as net interest income divided by average
interest earnings assets, decreased from 5.49% during the six-month
period ended June 30, 2002 to 4.30% during the six-month period ended
June 30, 2003. The decline is due to two factors: (i) rates in general
have declined in the past year in response to monetary actions undertaken
by the Federal Reserve Board, and (ii) capital, a "free" source of funds
for the Bank represented 29.9% of the total sources of funds at June 30,
2002, while it represented only 17.1% at June 30, 2003. Below is pertinent
information concerning the yield on earning assets and the cost of funds
for the six-month period ended June 30, 2003.
(Dollars in '000s)
Avg. Assets/ Interest Yield/
Description Liabilities Income/Expense Cost
----------- ----------- -------------- ------
Federal funds $ 1,081 $ 6 1.11%
Securities 1,928 36 3.73%
Loans 20,810 758 7.29%
------ --- ----
Total $23,819 $800 6.72%
====== --- ----
Federal funds $ 34 $ 1 1.41%
Transactional
accounts 3,626 31 1.71%
Savings 315 2 .95%
CD's 16,284 254 3.12%
------ --- ----
Total $20,259 $288 2.84%
====== --- ----
Net interest income $512
===
Net yield on earnings assets 4.30%
====
b. For the six-month period ended June 30, 2003, non-interest income
amounted to $82,417, or .60% of average assets. By comparison, non-
interest income for the six-month period ended June 30, 2002 amounted to
$32,868, or .48% of average assets. The majority of the increase was
caused by the increase in transactional account volume.
c. For the six-month period ended June 30, 2003, non-interest expense
amounted to $607,918, or 4.39% of average assets. By comparison, for the
six-month period ended June 30, 2002, non-interest expense amounted to
$510,217, or 7.42% of average assets. On a percentage basis, the decrease
from 7.42% for the six-month period ended June 30, 2002 to 4.39% for
the six-month period ended June 30, 2003 is significant. This decrease
is primarily due to the improvement of operational efficiencies.
d. Provision for loan losses for six-month periods ended June 30, 2003 and
2002 amounted to $45,404 and $69,316, respectively. Had the provision been
raised for the six-month period ended June 30, 2003 to equalize with the
six-month period ended June 30, 2002, net loss for the 2003 period would
have increased, net of tax effect, from $(36,864) to $(52,646). On a per
share basis, this increase in net loss represents $(.02).
During the six-month period ended June 30, 2003, the allowance for loan
losses increased by $39,404, to $260,628. The allowance for loan losses as a
percentage of gross loans declined from 1.16% at December 31, 2002 to 1.13% at
June 30, 2003. Management considers the allowance for loan losses to be
adequate and sufficient to absorb possible future losses; however, there can be
no assurance that charge-offs in future periods will not exceed the allowance
for loan losses or that additional provisions to the allowance will not be
required.
The Company is not aware of any current recommendation by the regulatory
authorities which, if it was to be implemented, would have a material effect on
the Company's liquidity, capital resources, or results of operations.
The Company cautions readers of this report that such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from those expressed or implied by such forward-
looking statements. Although the Company's management believes that their
expectations of future performance are based on reasonable assumptions within
the bounds of their knowledge of their business and operations, there can be no
assurance that actual results will not differ materially from their
expectations.
The Company's operating performance each quarter is subject to various
risks and uncertainties that are discussed in detail in the Company's filings
with the SEC, including the "Risk Factors" section of the Company's Registration
Statement (Registration No. 333-92653) as filed with the SEC and declared
effective on March 13, 2000.
PART II. OTHER INFORMATION
Item 2. Changes in Securities and Use of Proceeds.
------------------------------------------
This item is not applicable.
Item 3. Controls And Procedures
-----------------------
The Company's Chief Executive Officer has evaluated the Company's
disclosure controls and procedures as of a date within 90 days prior to
the date of this filing, and concluded that these controls and procedures are
effective. There have been no significant changes in internal controls or in
other factors that could significantly affect these controls subsequent to
the date of this evaluation.
Disclosure controls and procedures are the Company's controls and other
procedures that are designed to ensure that information it is required to
disclose in the reports it files under the Exchange Act is recorded,
processed, summarized and reported, within the time periods specified in the
Securities and Exchange Commission's rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to
ensure that information the Company is required to disclose in the reports
that if files under the Exchange Act is accumulated and communicated to
management, including the principal executive and financial officers, as
appropriate, to allow timely decisions regarding required disclosure.
Item 4. Submission of Matters to a Vote of Security Holders.
----------------------------------------------------
The 2003 Annual Meeting of Shareholders of the Company was held on April 22,
2003. At the meeting, the following persons were elected as Class I
directors to serve for a term of three years and until their successors are
elected as qualified: William B. Gossett, Louis O. Dore, Martha B. Fender
and D. Martin Goodman.
The number of votes cast for, against and withheld with respect to the
election of each nominee for Class I director was as follows:
Votes Votes Votes
For Against Withheld
--- ------- --------
William B. Gossett 425,799 - - - -
Louis O. Dore 425,799 - - - -
Martha B. Fender 425,799 - - - -
D. Martin Goodman 425,799 - - - -
In addition, the shareholders approved the actions of the officers and
directors of the Company, as undertaken, for the year ended December 31,
2002. The number of votes cast for, against and withheld with respect to the
approval of the actions of the officers and directors of the Company, as
undertaken, for the year ended December 31, 2002 was as follows:
Votes Votes Votes
For Against Withheld
--- ------- --------
423,667 - - 2,132
No other matters were presented or voted on at the 2003 Annual Meeting of
Shareholders.
The following persons did not stand for reelection at the 2003 Annual Meeting
of Shareholders as their term of office continued after the Annual Meeting:
Paul M. Dunnavant, III, Edward J. McNeil, Jr., Frances K. Nicholson, Carl E.
Lipscomb, Narayan Shenoy, J. Frank Ward, Bruce K. Wyles, Daryl A. Ferguson,
and Stancel E. Kirkland, Jr.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K.
---------------------------------
(a) Exhibits: The following exhibits are filed with this report.
Exhibit
Number Description
------- -----------
31.1 Certification Pursuant to Rule 13a-14(a), As Adopted
Pursuant to Section 302 of the Sarbanes-Oxley
Act Of 2002.
32.1 Certification Pursuant to 18 U.S.C. Section 1350 As
Adopted Pursuant to Section 906 of the Sarbanes-Oxley
Act Of 2002.
(b) Reports on Form 8-K. There were no reports on Form 8-K filed
during the quarter ended June 30, 2003.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
ISLANDS BANCORP
------------------------------------------
(Registrant)
Date: August 13, 2003 BY: /s/ William B. Gossett
--------------- --------------------------------
William B. Gossett
President and Chief Executive Officer
(principal executive and financial officer)