GBC Bancorp Announces Quarterly Earnings of $6.7 Million, or $0.58 Diluted Earnings Per Share.Business Editors LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--Jan. 17, 2002 GBC GBC Game Boy Color GBC Global Business Coalition GBC Green Building Council GBC George Brown College GBC Great Basin College (Nevada) GBC General Binding Corporation GBC Greater Baltimore Committee GBC Goldey-Beacom College Bancorp (Nasdaq:GBCB GBCB GBC Bancorp (stock symbol) GBCB Genetics, Bioinformatics and Computational Biology ): Highlights -- Total assets at a record $2.4 billion at December 31, up $162 million from September 30 -- Total deposits at a record $1.8 billion at December 31, up $75 million from September 30 -- Return on average equity of 12.4% in quarter; Return on average assets of 1.16% GBC Bancorp (Nasdaq:GBCB), parent company of General Bank, announced net income for the quarter ended December December: see month. 31, 2001 of $6.7 million, or $0.58 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . The average number of diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares was 11.6 million in the 4th quarter, 2001. Return on average equity for the quarter was 12.4%. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. net income was $32.6 million, or $2.78 diluted earnings per share. Gross loans and leases were $1.1 billion at December 31, 2001, up $9 million from September September: see month. 30, 2001, and total assets were $2.4 billion at December 31, 2001, up $162 million from September 30, 2001. Total securities grew $160 million from September 30 to December 31, 2001 and total deposits grew $75 million from September 30 to December 31, 2001. Net interest income in the 4th quarter was $22.7 million, virtually the same as in the 3rd quarter of 2001 despite a decline in the net interest margin. $0.5 million of net interest recoveries were recorded in the fourth quarter of 2001. Average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased $116 million from the 3rd quarter of 2001, with average loans and leases increasing $42 million and average securities increasing $89 million. The net interest margin declined from 4.28% in the 3rd quarter, 2001 to 3.95% (excluding the net interest recoveries) in the 4th quarter, 2001. At quarter-end, the review of existing problem loans resulted in $8.2 million of net charge-offs in the 4th quarter, including $2.8 million associated with a participated commercial loan, $1.5 million associated with a commercial loan and $1.3 million associated with a $6 million construction loan. Net charge-offs for the year were $15.9 million, all but $2.3 million of which were associated with commercial loans. A $6.3 million provision for credit losses was recorded in the quarter, bringing the total for the year to $20.1 million. Non-accrual loans at December 31, 2001 were $24.9 million, down $2.5 million from September 30, and up $10.1 million from December 31, 2000. It is anticipated that a $5.1 million letter of credit associated with the participated commercial loan mentioned above will be drawn in the 1st quarter, 2002 and will thus be an increase in non-accrual loans. However, the provision for credit losses recorded in the 4th quarter took into account the anticipated risk associated with this letter of credit. Of the non-accrual loans at December 31, all but $9.8 million were commercial loans. Other Real Estate Owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most was $0.4 million, unchanged from September 30, 2001. The allowance for credit losses was $23.7 million at December 31, 2001, down from $25.5 million at September 30, 2001, and up from the $19.4 million at December 31, 2000. The allowance was 2.09% of loans and leases at December 31, 2001, as compared to 2.00% at December 31, 2000. On January January: see month. 1, 2001, the Company adopted FAS 133 and recorded a transition adjustment of $8.6 million reflecting the fair value of warrants containing a cashless exercise provision, thus qualifying them as derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. under FAS 133. This transition adjustment is presented net of tax in the amount of $5.0 million as a cumulative effect of a change in accounting principle in the year-to-date results. In the first quarter, 2001, one company's warrants that were valued at $6.2 million at January 1 were converted into equity securities and $1.3 million of trading revenue for the quarter ended March 31, 2001 was recognized. The conversion of these warrants and a decline in the value of the underlying shares caused a majority of a $6.8 million reduction of fair value of derivatives in 2001. An increase of fair value in the valuation of the remaining warrants was recorded in the 4th quarter. The warrants are subject to revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. in future quarters and are subject to stock market conditions as well as the performance of the companies. In the 4th quarter, 2001, the debt securities of Finova received as a result of its restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). were sold for a gain of $1.8 million. Unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. on available-for-sale securities at December 31, 2001 were $18.2 million. The effective tax rate in the 4th quarter was 28.7%, largely as a result of the tax benefits from GB Capital Trust, a Real Estate Investment Trust, as compared to a 34.4% effective tax rate in the 3rd quarter, and the 37.6% effective tax rate for the first six months of 2001. It is anticipated that the effective tax rate in 2002 will be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 34%. Excluding the gains on the sale of securities, the change of fair value of derivatives, the loss from venture capital investments, trading revenue, OREO gains and the associated bonuses and taxes, core net income for the 4th quarter was $5.3 million, or $0.46 diluted earnings per share. Included in this core net income was the provision for credit losses previously discussed and $1.8 million of impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. expense associated with the AFT investment, as will be discussed. The above core diluted earnings per share compares with $0.46 for the first quarter, $0.76 for the second quarter, and $0.67 for the 3rd quarter, 2001. The following table discloses the components of non-core income for the periods indicated.
(in thousands, except per share data)
2001 2000
4th Qtr. Year 4th Qtr. Year
Net Income $ 6,686 $ 32,602 $ 4,679 $ 38,476
Diluted E.P.S. $ 0.58 $ 2.78 $ 0.39 $ 3.26
Less:
Interest Recovery $ 0 $ 0 $ 0 $ 2,832
Neg. Prov. Credit Loss 0 0 0 1,500
Trading Revenue 12 1,958 5,207 13,013
V.C. Fund Losses (358) (1,396) 0 0
Gain (loss) Sale Secur. 1,786 6,713 (10,341) (10,341)
Chg of Value of Deriv. 639 (6,762) 0 0
OREO Income (Exp.) 0 475 171 1,309
Bonus & Tax for Above (730) (884) 2,061 (3,828)
Chg Acct Net of Tax 0 4,962 0 0
Core Net Income $ 5,337 $ 27,536 $ 7,581 $33,991
Core Diluted E.P.S. $ 0.46 $ 2.35 $ 0.64 $ 2.88
The Company owns the equity interest of two leveraged leases for Boeing 737s The Boeing 737 is an American short to medium range, single aisle, narrow body jet airliner. With over 7,000 ordered and over 5,000 delivered, it is the most ordered and produced commercial passenger jet of all time and has been continuously manufactured by Boeing since 1967. leased by major U.S. airlines. As of December 31, 2001, the total investment was $17.0 million, including an assumed residual value Residual value Usually refers to the value of a lessor's property at the time the lease expires. residual value The price at which a fixed asset is expected to be sold at the end of its useful life. of $13.1 million. The appraisals received from an independent appraiser A person selected or appointed by a competent authority or an interested party to evaluate the financial worth of property. Appraisers are frequently appointed in probate and condemnation proceedings and are also used by banks and real estate concerns to determine the market supported the assumed residual values for the lease termination dates termination date, n See expiration date. . Therefore, no adjustment of residual value was recorded and the leases remain in performing status. Were either of the two airlines to default on the leases, the Company's investment would be substantially at risk due to the debt outstanding and the current depressed market Depressed market Market in which supply overwhelms demand, leading to weak and lower prices. values of such aircraft. The Company also has a 10% equity interest in an aircraft finance trust ("AFT"), which totaled $6.1 million as of December 31, 2001 after recognition of $1.8 million of impairment expense associated with the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of the value of two aircraft by AFT. The investment in AFT is included in other investments. AFT owns a number of aircraft on lease to different lessees in various countries, and its results may be adversely affected in the future. If there are further impairment write-downs during the annual audit of AFT, this would be recorded by the Company in the 1st quarter, 2002. Also included in other investments is $8.7 million of investments in venture capital funds Venture Capital Funds An investment fund that manages money from investors seeking private equity stakes in small and medium-size enterprises with strong growth potential. Notes: , after the recording of $0.4 million of loss associated with such investments in the 4th quarter. Undisbursed commitments for such investments are $6.7 million as of December 31, 2001. If there are realized losses Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. by the funds during their annual audits, these would be recorded by the Company in the 1st quarter, 2002. "The provision for credit losses remained at an unacceptably high level, and the reduction of such expense is the top priority for 2002. Although loans and leases increased only modestly in the 4th quarter, at December 31, 2001 they had increased $164 million from December 31, 2000, and total assets increased $398 million from December 31, 2000 to December 31, 2001," said Peter Wu, President and Chief Executive Officer. "The Company has taken advantage of its high level of capital to increase its leverage by purchasing securities using the growth in its deposits and increased borrowings from the Federal Home Loan Bank, which has partially offset the reduction of net interest income from lower interest rates. "Core diluted earnings per share is expected to be $3.23 in 2002, which assumes that the provision for credit losses in 2002 will be $10 million. Of course, the most significant variable of the 2002 results is the amount of improvement in the provision for credit losses. The projection projection, in psychology: see defense mechanism. See rear-projection TV, front-projection TV and LCD panel. (theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e. assumes interest rates remain at present levels and that the net interest margin will average approximately the same as in 2001. Management's goals of loan and deposit growth in 2002 are that the growth from year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , 2001 to year-end, 2002 will exceed the amounts achieved in 2001. We remain confident of the Company's ability to generate earnings due to the maintenance of the Company's excellent efficiency ratio and its modest exposure to future interest rate declines." The Tier 1 leverage ratio at December 31, 2001 was 8.73%, as compared to 9.08% at September 30, 2001. The Company's capital ratios remain in excess of regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . Book value per share at December 31, 2001 was $17.98, down from $18.39 at September 30, 2001. As previously announced, the Board of Directors has authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program of up to 500,000 shares of common stock. 403,000 shares have been purchased under this program as of December 31, 2001 at an average cost per share of $26.82. There is an additional 300,000 share program authorized by the Board after the above program is completed. Results of Operations For the quarter ended December 31, 2001, net interest income was $22.7 million, down $0.3 million, or 1.3%, from the same period of 2000. There was an increase in average earning assets of $312 million, or 16.3%, which was offset by a decrease in the net interest margin from 4.78% in the 4th quarter of 2000 to 3.95% in the 4th quarter of 2001 (excluding the net recovery). For the year, net interest income was up $0.5 million, or 0.6%, from 2000 with the average earning assets increasing $218 million, or 11.8%, and the net interest margin declined from 4.65% (excluding the $2.8 million of interest recoveries) in 2000 to 4.32% for 2001. The net interest margin in the 4th quarter was 3.95% excluding the $0.5 million of net interest recoveries, as compared to the 3rd quarter margin of 4.28% and the 4.40% margin of the 2nd quarter (excluding the $0.5 million interest recoveries in the 2nd quarter). The Bank reduced its prime rate 3 times during the 4th quarter for a total of 125 basis points in response to decreases in the Federal Reserve's targeted fed funds fed funds See federal funds. rate, bringing the year's decline of the prime rate to 475 basis points. Approximately 75% of the loan portfolio has yields based upon prime, and declines in posted rates on deposits are not immediately reflected in the cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. depending upon the average maturity of these deposits. The yield on earning assets, excluding net interest reversals and recoveries, declined from 7.88% in the 2nd quarter, 2001 to 7.38% in the 3rd quarter, and to 6.15% in the 4th quarter, 2001. The cost of funds decreased from 4.29% in the 2nd quarter, 2001 to 3.79% in the 3rd quarter and to 3.13% in the 4th quarter, 2001. In the event of a future 50 basis point reduction in interest rates by the Federal Reserve, it is anticipated that there would be a negative impact on the net interest margin. Based upon the results of a computer simulation analysis (language, simulation) SIMulation ANalysis - (SIMAN) A simulation language, especially for manufacturing systems, developed by C. Dennis Pegden in 1983. ["Introduction to Simulation using SIMAN", C.D. Pegden et al, McGraw-Hill 1990]. that uses a static balance sheet as of December 31, 2001 and projects changes in the yields earned on assets and the rates paid on liabilities in relation to changes in market interest rates, it is estimated that there would be a $2.2 million reduction in net interest income for the twelve months following a 50 basis point reduction. In the three months following such a rate reduction, the net interest income is expected to decline by $0.7 million. The initial quarterly decline gradually grad·u·al adj. Advancing or progressing by regular or continuous degrees: gradual erosion; a gradual slope. n. Roman Catholic Church 1. improves as deposits reprice at maturity. Changes in the composition of the balance sheet in the future, including an increase of loans as a percentage of earning assets, is not factored into the above simulation The mathematical representation of the interaction of real-world objects. See scientific application and simulator. Simulation A broad collection of methods used to study and analyze the behavior and performance of actual or theoretical systems. . Were interest rates to increase 50 basis points, it is estimated that there would be a $1.5 million increase in net interest income for the next twelve months following such an increase. Non interest income Non-interest income is derived from the execution/processing business, the advisory business and any principal business that does not appear on the balance sheet. Financial institutions that wish to maximize execution/processing income depend on volume and efficiency for profits. in the quarter was down $5.2 million from the same period of 2000 due primarily to the absence of the trading revenue received in 2000. $0.2 million of other non interest income was recorded in the quarter from fees associated with a paid-off construction loan plus the gain of sale of securities previously discussed. Offsetting these were a $2.1 million loss from other investments reflecting reported losses from AFT and venture capital fund investments. For the year, non interest income was down $6.1 million from 2000, due primarily to a decline in trading revenue and losses from other investments, partially offset by the gain on the sale of securities. For the quarter, non interest expense was $9.5 million (excluding the derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. income), down $1.6 million from the same period of 2000 (excluding the loss on sale of securities) due to lower salaries and other expense. For the year, non interest expense (excluding the derivatives expense in 2001 and the securities losses in 2000) was down $1.0 million due to lower salaries expense, partially offset by lower OREO income in 2001. The Company's efficiency ratio (non-interest expense excluding the reduction of fair value of derivatives and securities losses divided by the sum of net interest income plus non interest income less trading revenue, income from venture capital fund investments and securities gains) was 38.2% in the 4th quarter, 2001. For the year, the ratio was 36.0%, as compared to 37.6% in 2000. Financial Condition Loans and leases were $1,133 million at December 31, 2001, up $164 million from December 31, 2000. As shown below, there were increases in commercial and real estate construction loans. (millions) 12/31/01 12/31/00 Increase(decrease) Commercial $ 496 $ 449 $ 47 RE -- Construction 235 167 68 RE -- Conventional 365 310 55 Leveraged Leases 17 17 0 Other 20 26 (6) Total $ 1,133 $ 969 $ 164 The two largest concentrations in commercial loans are the apparel/textile industry and the computer/electronic goods industry (excluding early-stage technology companies). The approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. amount of commercial loans for these two segments as of December 31, 2001 are $75 million and $65 million, respectively. There are $38 million of loans to early stage high technology companies. Of the $15.1 million of non-accrual commercial loans as of December 31, 2001, $6.5 million and $1.9 million were from the apparel/textile and computer/electronic goods industries, respectively. $0.3 million was from early stage high technology companies. At December 31, 2001, total deposits were $1,828 million, up $75 million from September 30, 2001 and up $153 million from December 31, 2000. From September 30, 2001 to December 31, non interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid demand increased by $22 million and interest bearing demand and savings deposits Savings deposits Accounts that pay interest, typically at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand. increased by $113 million. The latter increase was partially due to the receipt of $68 million of deposits from two high technology business customers. Time deposits decreased by $60 million from September 30. Borrowing from the Federal Home Loan Bank increased $110 million from September 30, 2001 to December 31. Total deposits in northern California Northern California, sometimes referred to as NorCal, is the northern portion of the U.S. state of California. The region contains the San Francisco Bay Area, the state capital, Sacramento; as well as the substantial natural beauty of the redwood forests, the northern were $280 million at December 31, 2000 and $255 million at December 31, 2001. At December 31, 2001, total stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $206 million, including $8.3 million of net unrealized gains (net of $6.1 million taxes). A webcast of a conference call discussing the 4th quarter results and recent operating developments will be held on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , January 18, 2002, at 10:00 am Pacific time. It can be accessed at www.generalbank.com. Certain statements contained herein, including without limitation, statements containing the words "anticipates," "believes," "expects," and words of similar import, constitute "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions in those areas in which the company operates; demographic See demographics. changes; competition; fluctuations in interest rates; changes in business strategy or development plans; changes in governmental regulation; and credit quality. Given these uncertainties, undue reliance should not be placed on such forward-looking statements. The company disclaims any obligation to update any such factors or to publicly announce the results of any revisions ReVisions is a 2004 anthology of alternate history short-stories. It is edited by Julie E. Czerneda and Isaac Szpindel. Contents Title Author The Resonance of Light James Alan Gardner Out of China Julie E. to any of the forward-looking statements contained herein to reflect future events or developments.
GBC BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
CONDENSED BALANCE SHEETS
UNAUDITED
December 31,
(Dollars In Thousands) 2001 2000
Assets
Cash and Due From Banks $ 33,034 $ 40,306
Federal Funds Sold & Securities
Purchased Under Agreements to Resell 90,000 75,000
Cash and Cash Equivalents 123,034 115,306
Securities Available for Sale 1,098,989 855,383
Securities Held to Maturity - 1,025
Trading Securities 31 4,637
Loans and Leases 1,132,889 969,023
Less: Allowance for Credit Losses (23,656) (19,426)
Deferred Loan Fees (7,600) (4,085)
Loans and Leases, net 1,101,633 945,512
Bank Premises and Equipment, net 6,382 5,578
Other Real Estate Owned, net 383 1,035
Other Investments 11,509 15,444
Accrued Interest Receivable and
Other Assets 25,282 25,189
Total Assets $ 2,367,243 $ 1,969,109
Liabilities and Stockholders' Equity
Deposits
Noninterest-Bearing Demand $ 217,413 $ 207,281
Interest-Bearing Demand and Savings 530,078 458,733
Time Deposits 1,080,436 1,008,555
Total Deposits 1,827,927 1,674,569
Borrowings from the Federal Home
Loan Bank 252,400 25,000
Subordinated Debt 39,269 39,138
Accrued Expenses and Other Liabilities 41,329 42,620
Total Liabilities 2,160,925 1,781,327
Stockholders' Equity
Common Stock 71,316 62,054
Retained Earnings 132,528 124,157
Deferred Compensation 2,474 1,571
Total Stockholders' Equity 206,318 187,782
Total Liabilities and Stockholders'
Equity $ 2,367,243 $ 1,969,109
Non-accrual Loans $ 24,940 $ 14,823
Restructured Loans $ 1,706 $ 4,978
Capital Ratios
Total Risk-Based Capital Ratio 14.09% 13.75%
Tier 1 Risk-Based Capital Ratio 10.70% 10.23%
Tier 1 Leverage Ratio 8.73% 8.96%
Other Period End Statistics
Book Value per Share(a) $ 17.98 $ 16.25
(a)Computed based on shares outstanding net of shares held in trust.
GBC BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
CONDENSED INCOME STATEMENTS
UNAUDITED
For the Three Months Ended For The Year Ended
December 31, December 31,
(Dollars In Thousands
Except Per Share Data) 2001 2000 2001 2000
Interest Income:
Loans and Leases,
Including Fees $ 21,141 $ 26,357 $ 90,719 $ 101,434
Securities Available
for Sale 15,406 14,947 61,736 53,208
Securities Held to
Maturity - 17 33 73
Federal Funds Sold &
Securities Purchased Under
Agreements to Resell 420 2,097 2,969 8,384
Other 4 10 21 22
Total Interest Income 36,971 43,428 155,478 163,121
Interest Expense:
Deposits 11,158 19,069 57,592 68,863
Federal Funds Purchased
and Securities Sold under
Repurchase Agreements 5 15 27 62
Borrowings from the
Federal Home Loan Bank 2,193 428 5,452 2,273
Subordinated Debt 870 870 3,481 3,481
Total Interest Expense 14,226 20,382 66,552 74,679
Net Interest Income: 22,745 23,046 88,926 88,442
Provision for Credit
Losses 6,300 1,700 20,100 1,200
Net Interest Income After
Provision for Credit
Losses 16,445 21,346 68,826 87,242
Non-Interest Income:
Service Charges and
Commissions 1,848 1,961 7,875 8,237
Gain on Sale of Securities
Available for Sale, Net 1,786 - 6,713 -
Gain on Sale of Fixed
Assets - - 38 7
Trading Account Revenue 12 5,207 1,958 13,013
Income/(Expense) from
Other Investments (2,057) (242) (2,796) 145
Other 169 73 1,858 353
Total Non-Interest Income 1,758 6,999 15,646 21,755
Non-Interest Expense:
Salaries and Employee
Benefits 4,817 5,430 20,410 22,306
Occupancy Expense/
Furniture and Equipment 1,562 1,393 5,725 5,383
Loss on Sale of Securities
Available for Sale, net - 10,237 - 10,341
Net Other Real Estate
Owned (Income)/Expense 11 (171) (397) (1,309)
Other 3,078 4,431 9,782 10,140
Reduction of Fair
Value of Derivatives (639) - 6,762 -
Total Non-Interest Expense 8,829 21,320 42,282 46,861
Income Before Provision
for Income Taxes 9,374 7,025 42,190 62,136
Provision for Income Taxes 2,688 2,346 14,550 23,660
Net Income before Cumulative
Effect of a Change in
Accounting Principle $ 6,686 $ 4,679 $ 27,640 $ 38,476
Cumulative Effect of a
Change in Accounting
Principle - - 4,962 -
Net Income $ 6,686 $ 4,679 $ 32,602 $ 38,476
Earnings Per Share:
Net Income before
Cumulative Effect of
a Change in Accounting
Principle
Basic $ 0.58 $ 0.40 $ 2.37 $ 3.33
Diluted 0.58 0.39 2.36 3.26
Cumulative Effect of
a Change in Accounting
Principle
Basic $ - $ - $ 0.42 $ -
Diluted - - 0.42 -
Earnings Per Share:
Basic $ 0.58 $ 0.40 $ 2.79 $ 3.33
Diluted 0.58 0.39 2.78 3.26
Return on Average Assets 1.16% 0.93% 1.54% 2.01%
Return on Average Equity 12.35% 10.39% 16.05% 24.80%
Efficiency Ratio
(Excluding Trading Account
Revenue(Expense), Income
(Expense)from Other
Investments, Gain (Loss) on
Sale of Securities,
Reduction of Fair Value of
Derivatives and Cumulative
Effect of Change in
Accounting Principle) 38.24% 44.19% 35.99% 37.63%
Average Number of
Basic Shares 11,570,422 11,608,092 11,673,242 11,553,574
Average Number of
Diluted Shares 11,583,945 11,908,836 11,747,816 11,813,035
GBC BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
CONDENSED AVERAGE BALANCE SHEETS
UNAUDITED
For the Three Months Ended For the Year Ended
December 31, December 31,
(In Thousands) 2001 2000 2001 2000
Assets
Cash and Due From Banks $ 35,084 $ 38,555 $ 34,841 $ 39,033
Federal Funds Sold &
Securities Purchased
Under Agreements to
Resell 74,968 123,691 75,366 128,221
Cash and Cash Equivalents 110,052 162,246 110,207 167,254
Securities Available for
Sale at Fair Value 1,009,078 855,972 918,818 780,427
Securities Held to
Maturity - 1,068 525 1,179
Trading Securities 20 347 638 777
Loans and Leases 1,144,441 952,334 1,064,774 934,973
Less: Allowance for Credit
Losses (25,051) (21,005) (22,527) (20,677)
Deferred Loan Fees (6,893) (4,119) (5,210) (3,981)
Loans and Leases, net 1,112,497 927,210 1,037,037 910,315
Bank Premises and Equipment,
net 5,970 5,533 5,800 5,533
Other Real Estate Owned, net 383 935 698 4,417
Other Investments 15,770 15,577 16,157 15,416
Accrued Interest Receivable
and Other Assets 23,594 23,059 26,023 25,645
Total Assets $2,277,364 $1,991,947 $2,115,903 $1,910,963
Liabilities and Stockholders' Equity
Deposits
Noninterest-Bearing
Demand $ 205,889 $ 200,758 $ 195,929 $ 190,863
Interest-Bearing Demand
and Savings 447,943 494,503 438,309 469,686
Time Deposits 1,120,306 1,006,371 1,076,578 974,346
Total Deposits 1,774,138 1,701,632 1,710,816 1,634,895
Federal Funds Purchased and
Securities Sold under
Repurchase Agreements 912 859 648 932
Forward Sales Equity
Securities - - - 195
Borrowings from the Federal
Home Loan Bank 193,697 33,424 113,822 45,833
Subordinated Debt 39,248 39,117 39,199 39,068
Accrued Expenses and Other
Liabilities 54,535 37,803 48,297 34,887
Total Liabilities 2,062,530 1,812,835 1,912,782 1,755,810
Stockholders' Equity
Common Stock 70,839 61,403 68,434 60,214
Retained Earnings 143,995 117,709 134,687 94,939
Total Stockholders' Equity 214,834 179,112 203,121 155,153
Total Liabilities and
Stockholders' Equity $ 2,277,364 $1,991,947 $2,115,903 $1,910,963
Non-accrual Loans $ 26,442 $ 18,004 $ 21,678 $ 18,715
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