U.S. SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO _________
Commission file number 0-27984
Ridgestone Financial Services, Inc.
-----------------------------------
(Exact name of small business issuer as specified in its charter)
Wisconsin 39-1797151
------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
13925 West North Avenue
Brookfield, Wisconsin 53005
---------------------------------------
(Address of principal executive offices)
414-789-1011
--------------------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date.
Class Outstanding as of March 31, 1999
----- --------------------------------
Common Stock, no par value 876,492
Transitional Small Business Disclosure Format: Yes No X
<PAGE>
RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
INDEX
Page
Number
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements........................................ 1
Consolidated Statements of Financial Condition at
March 31, 1999 and December 31, 1998........................ 1
Consolidated Statements of Income
For the Three Months Ended March 31, 1999 and 1998.......... 2
Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 1999 and 1998.......... 3
Consolidated Statements of Stockholders' Equity
For the Three Months Ended March 31, 1999 and 1998.......... 4
Notes to Consolidated Financial Statements.................. 5
Item 2. Management's Discussion and Analysis............... 6
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.................. 11
SIGNATURES .................................................. 12
EXHIBIT INDEX .................................................. 13
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, 1999 and December 31, 1998
March 31, December 31,
1999 1998
(Unaudited)
ASSETS
Cash and due from banks $ 2,651,399 $ 2,741,672
Federal funds sold 11,563,000 12,525,000
Interest-bearing deposits 8,141 2,649
----------- -----------
Total cash and cash equivalents 14,222,540 15,269,321
Investments-Held to Maturity
(fair value Mar 1999, $1,770,228
and Dec 1998, $1,780,700) 1,750,009 1,750,335
Investments-Available for Sale 2,104,377 615,284
Loans receivable 47,344,917 48,869,077
Less: Allowance for estimated loan losses (540,247) (562,747)
----------- -----------
Net loans receivable 46,804,670 48,306,330
Mortgage loans held for sale 93,100 259,000
Office building and equipment, net 1,343,185 1,376,660
Other real estate owned 1,304,979 1,297,835
Accrued interest & other assets 2,822,853 2,460,770
----------- -----------
Total assets $70,445,713 $71,335,535
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Demand $10,819,913 $ 8,552,053
Savings, NOW and other time deposits 52,789,979 55,970,803
----------- -----------
Total deposits 63,609,892 64,522,856
----------- -----------
Accrued interest & other liabilities 529,806 614,535
----------- -----------
Total liabilities 64,139,698 65,137,391
----------- -----------
STOCKHOLDERS' EQUITY
Common stock, no par value: 10,000,000
shares authorized;
876,492 issued and outstanding 8,417,117 8,417,117
Retained earnings (deficit) (2,101,368) (2,196,449)
Accumulated other comprehensive income(loss) (9,734) (22,524)
----------- -----------
Total stockholders' equity 6,306,015 6,198,144
----------- -----------
Total liabilities and
stockholders' equity $70,445,713 $71,335,535
=========== ===========
-1-
<PAGE>
RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended March 31, 1999 and 1998
(Unaudited)
Three Months Ended
Mar 31, Mar 31,
1999 1998
Interest income:
Interest and fees on loans $ 950,153 $ 992,014
Interest on securities 111,251 51,013
Interest on federal funds sold 82,407 81,913
Interest on deposits in banks 142 1,450
---------- ---------
Total interest income 1,143,953 1,126,390
---------- ---------
Interest expense:
Interest on deposits 626,686 671,745
---------- ---------
Net interest income before
provision for loan losses 517,267 454,645
Provision for loan losses 7,500 5,000
---------- ---------
Net interest income after
provision for loan losses 509,767 449,645
---------- ---------
Non-interest income:
Loan fees 20,174 21,173
Service charges on deposit accts 13,134 8,688
Miscellaneous 44,979 12,076
---------- ---------
Total other operating income 78,287 41,937
---------- ---------
Non-interest expense:
Salaries and employee benefits 306,656 259,192
Occupancy and equipment expense 90,840 81,738
Loss on sale of AFS securities 15,402 31,435
Other expense 155,025 103,599
---------- ---------
Total other operating expense 567,923 475,964
---------- ---------
Income before income taxes 20,131 15,618
Income taxes (74,950) 9,800
---------- ---------
Net income $ 95,081 $ 5,818
========== =========
Earnings per share:
Basic $ 0.11 $ 0.01
Diluted $ 0.11 $ 0.01
Average shares outstanding 876,492 834,340
-2-
<PAGE>
RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended March 31, 1999 and 1998
(Unaudited)
Three Months Ended
Mar 31, 1999 Mar 31, 1998
Cash Flows From Operating Activities:
Net income $ 95,081 $ 5,818
Adjustments to reconcile net income to
net cash used in operating activities:
Depreciation 35,831 38,980
Loss on sale of investment securities 15,402 31,435
Provision for loan losses 7,500 5,000
Charges to Loan Losses (30,000) (125,415)
Accretion/Amortization of securities-net (67) (231)
(Increase)decrease in assets
Interest receivable 42,303 26,634
Other assets (404,386) (33,599)
Increase(decrease) in liabilities:
Accrued interest 68,230 (171,347)
Other liabilities (152,959) (39,123)
----------- -----------
Total adjustments (418,146) (267,666)
----------- -----------
Net cash (used in) operating activities (323,065) (261,848)
----------- -----------
Cash Flows From Investing Activities:
Proceeds from sales of available for
sale securities 55,548 67,568
Purchase of available for sale securities (1,796,860) (67,250)
Proceeds from maturities of held to
maturity securities 250,000 0
Net proceeds(used) on other real estate (7,144) 95,489
Purchases of premises and equipment (2,356) (12,159)
Net decrease (increase) in loans 1,690,060 (238,012)
----------- -----------
Net cash provided by (used in) investing activities 189,248 (154,364)
----------- -----------
Cash Flows From Financing Activities:
Net decrease in deposits (912,964) (2,654,281)
----------- -----------
Net cash used in financing activities (912,964) (2,654,281)
----------- -----------
Net decrease in cash and cash equivalents (1,046,781) (3,070,493)
Cash and cash equivalents, beginning 15,269,321 10,669,236
----------- -----------
Cash and cash equivalents, ending $14,222,540 $ 7,598,743
=========== ===========
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest $ 694,916 $ 698,379
=========== ===========
Income taxes $ (74,950) $ 9,800
=========== ===========
Supplemental schedule of noncash investing activities:
Net changes in unrealized gain on securities
available for sale $ 12,790 $ 49,181
=========== ===========
-3-
<PAGE>
RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Three Months Ended March 31, 1999 and 1998
Available
Common Retained For Sale
Stock Earnings Securities Total
---------- ----------- ---------- ---------
Balances, December 31, 1997 $7,721,399 $(1,837,493) $(20,606) $5,863,300
Comprehensive income:
Net income 5,818 5,818
Change in unrealized gain
on available for sale securities 49,181 49,181
----------
Total comprehensive income 54,999
---------- ----------- -------- ----------
Balances, March 31, 1998 $7,721,399 $(1,831,675) $ 28,575 $5,918,299
========== =========== ======== ==========
Balances, December 31, 1998 $8,417,117 $(2,196,449) $(22,524) $6,198,144
Comprehensive income:
Net income 95,081 95,081
Change in unrealized gain
On available for sale securities 12,790 12,790
----------
Total comprehensive income 107,871
---------- ----------- -------- ----------
Balances, March 31, 1999 $8,417,117 $(2,101,368) $ (9,734) $6,306,015
========== =========== ======== ==========
-4-
<PAGE>
RIDGESTONE FINANCIAL SERVICES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1999 and 1998
(Unaudited)
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements of
RidgeStone Financial Services, Inc. (the "Company") have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with instructions to Form 10-QSB. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring adjustments)
considered necessary for the fair presentation have been included. Operating
results for the three months ended March 31, 1999 are not necessarily indicative
of the results that may be expected for the year ended December 31, 1999. For
further information, refer to the consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-KSB for the
year ended December 31, 1998.
NOTE 2 - PRINCIPLES OF CONSOLIDATION
The accompanying consolidated financial statements include the accounts of the
Company and its wholly owned subsidiary, Ridgestone Bank (the "Bank"). All
significant intercompany accounts and transactions have been eliminated in
consolidation.
NOTE 3 - STOCK DIVIDEND
On May 21, 1998, the Company paid a 5% stock dividend on issued and outstanding
shares of its common stock. The dividend totaled 41,717 shares.
-5-
<PAGE>
Item 2. Management's Discussion and Analysis
General
Ridgestone Financial Services, Inc. (the "Company") was formed in May 1994 under
the laws of the State of Wisconsin for the purpose of becoming the bank holding
company of Ridgestone Bank (the "Bank").
The Bank was capitalized on December 6, 1995, and commenced operation on
December 7, 1995. The Bank was organized as a Wisconsin chartered commercial
bank with depository accounts insured by the Federal Deposit Insurance
Corporation. The Bank provides full service commercial and consumer banking
services in Brookfield, Wisconsin, and adjacent communities.
The following is a discussion of the Company's Financial Condition and Results
of Operations as of and for the three months ended March 31, 1999.
Financial Condition
Total Assets. Total assets of the Company as of March 31, 1999 were $70,445,713
compared to $71,335,535 as of December 31, 1998, a decrease of 1%.
Cash and Cash Equivalents. Cash and due from banks, which represents cash
maintained at the Bank and funds that the Bank and the Company have deposited in
other financial institutions, was $2,651,399 at March 31, 1999 compared to
$2,741,672 at December 31, 1998. The Bank reported $11,563,000 of federal funds
sold (which are inter-bank funds with daily liquidity) on March 31, 1999
compared to $12,525,000 on December 31, 1998.
Investment Securities. The Company's investment portfolio consists of (i)
securities purchased with the intent to hold the securities until they mature
and (ii) securities placed in the available for sale category which may be
liquidated to provide cash for operating or financing purposes. The securities
held-to-maturity portfolio was $1,750,009 at March 31, 1999 compared to
$1,750,335 at December 31, 1998. The securities available-for-sale portfolio was
$2,104,377 at March 31, 1999 compared to $615,284 at December 31, 1998, an
increase of $1,489,093 which was primarily due to a reinvestment of certain
funds into repurchase agreements.
Loans. Total loans prior to the allowance for estimated loan losses were
$47,344,917 as of March 31, 1999 compared to $48,869,077 as of December 31,
1998, a decline of 3%.
At March 31, 1999, the mix of the loan portfolio included Commercial loans of
$10,775,000 or 23% of total loans; Commercial Real Estate loans of $20,339,000
or 43% of total loans; Residential Real Estate loans of $12,357,000 or 26 % of
total loans; and Consumer loans of $3,874,000 or 8% of total loans.
Allowance for Loan Losses. The allowance for estimated loan losses was $540,247
or 1.14% of gross loans on March 31, 1999 compared to $562,747 or 1.15% of gross
loans at December 31, 1998. In accordance with Financial Accounting Standards
Board ("FASB") Statements No. 5 and 114, the allowance is provided for losses
that have potentially been incurred based on the Bank's outstanding loan balance
as of the balance sheet date. The Bank evaluates the adequacy of the loan loss
reserve based on past events and current economic conditions, and does not
include the effects of potential losses on specific loans or groups of loans
that are related to future events or changes in economic conditions which are
then unknown to the Bank. For additional information regarding the Company's
allowance for loan losses, see "Results of Operations - Provision for Loan
Losses" below.
-6-
<PAGE>
On March 31, 1999 the Company had $1,304,979 in Other Real Estate Owned compared
to $1,297,835 on December 31, 1998.
Deposits. As of March 31, 1999, total deposits were $63,609,892 compared to
$64,522,856 at December 31, 1998, a decrease of 1%.
Liquidity. For banks, liquidity generally represents the ability to meet
withdrawals from deposits and the funding of loans. The assets that provide
liquidity are cash, federal funds sold and short-term loans and securities.
Liquidity needs are influenced by economic conditions, interest rates and
competition. Management believes that current liquidity levels are sufficient to
meet future demands. Management believes the current liquidity position of the
Bank allows it opportunity to expand the Bank's loan portfolio and account for
any withdrawals which may occur. The Bank's loan-to-deposit funds ratio prior to
loan loss reserve on March 31, 1999 was 74%.
Asset/Liability Management. Closely related to liquidity management is the
management of interest-earning assets and interest-bearing liabilities. The
Company manages its rate sensitivity position to avoid wide swings in net
interest margins and to minimize risk due to changes in interest rates.
Changes in net interest income, other than volume related changes, arise when
interest rates on assets reprice in a time frame or interest rate environment
that is different from the repricing period for liabilities. Changes in net
interest income also arise from changes in the mix of interest earning assets
and interest-bearing liabilities.
The Company currently does not expect to experience any material fluctuations in
its net interest income in the short-term as a consequence of changes in
interest rates.
Results of Operations
Net Income. For the three-month period ended March 31, 1999, the Company
reported net income of $95,081 as compared to a profit of $5,818 in the same
period of 1998. A tax benefit related to a tax loss carryforward accounted for
$74,950 of net income for the three months ended March 31, 1999.
Net Interest Income. Net interest income before provision for loan losses for
the three months ended March 31, 1999 was $517,267 compared to $454,645 for the
same period in 1998, an improvement of 14%. Total interest income for the three
months ended March 31, 1999 increased by $17,563 as compared with the same
period in 1998, while total interest expense decreased by $45,059. The Bank's
net interest margin improved from 3.26% at March 31, 1998 to 3.35% at March 31,
1999.
Provision for Loan Losses. The provision for loan losses is based on
management's evaluation of factors such as the local and national economy and
the risks associated with the loans in the portfolio.
During the three month period ended March 31, 1999, a $7,500 provision was made
to the loan loss reserve to ensure that the loan loss reserve is maintained at
adequate levels. In the first three months of 1999, the Bank charged $30,000
against the loan loss reserve which related to a commercial loan whose guarantor
filed personal bankruptcy.
Non-Interest Income. Total other operating income was $78,287 for the three
months ended March 31, 1999 compared to $41,937 for the same period in 1998, an
increase of $36,350 or 87 %.
-7-
<PAGE>
Non-Interest Expense. Total other operating expenses (excluding loss on the sale
of assets) were $519,962 for the three months ended March 31, 1999 compared to
$444,529 for the same period in 1998, an increase of 17%.
Year 2000 Impact
Existing computer programs generally recognize dates and perform calculations by
using only the last two digits of any given year. These computer programs may
not recognize a year that begins with "20" instead of "19." As a result, the
functions of computer software, hardware and embedded systems at many
businesses, including the Bank, may experience failures or produce incorrect
results when the calendar changes to January 1, 2000. Systems failures or
miscalculations at the Bank or the Bank's vendors or customers may result in
disruption of operations, including a failure to process information and/or a
reduced likelihood of collecting loan payments on a timely basis.
The Bank's Readiness. To determine whether and to what extent it may experience
disruptions as a result of the turning of the Year 2000 ("Y2K"), the Bank has
established a committee to oversee the assessment process and report
periodically to Bank management. The Bank is currently in the process of
assessing (i) the Y2K status of its own internal systems, including computer
equipment (hardware), applications (software), and other electronically
controlled equipment that does not process data (embedded systems); (ii) the Y2K
status of its customers' systems; and (iii) the Y2K status of its vendors'
systems.
Internal Systems. The Bank has completed testing or received manufacturer
certification of Y2K compliance with respect to 100% of its internal hardware
and embedded systems. All such systems appear to be Y2K compliant. The Bank
spent less than $5,000 on testing these systems to date and does not expect to
incur additional costs in testing internal computer hardware or embedded
systems.
The following chart displays the current status of the Bank's mission-critical
software with respect to assessing Y2K compliance.
- --------------------------------------------------------------------------------
Internal Mission- Vendor-certified
critical Software Category Compliant? Status of Testing/Replacement
- --------------------------------------------------------------------------------
Operating systems Yes Testing complete - satisfactory
- --------------------------------------------------------------------------------
Banking platform applications Yes Testing Phase 1 complete - satisfactory
Testing Phase 2 complete - satisfactory
- --------------------------------------------------------------------------------
On-line PC banking Yes Testing complete - satisfactory
Implementation - in process
- --------------------------------------------------------------------------------
Telephone banking No Replacement installation in process
- --------------------------------------------------------------------------------
Loan documentation Yes Replacement configuration in process
- --------------------------------------------------------------------------------
Document management Yes Testing complete - satisfactory
- --------------------------------------------------------------------------------
Contact management Yes Testing complete - satisfactory
- --------------------------------------------------------------------------------
General office applications Yes Testing complete - satisfactory
- --------------------------------------------------------------------------------
Data warehousing Yes Testing complete - satisfactory
- --------------------------------------------------------------------------------
-8-
<PAGE>
All the Bank's internal software systems are vendor-certified compliant except
for the telephone banking system. This system is in the process of being
upgraded to a Y2K compliant version. The hardware is in place and the conversion
is in process. This conversion is being done at no cost to the Bank.
The Bank's remaining internal systems have all been successfully tested for Y2K
readiness, except for the loan documentation system. This system is currently
being configured. Both the current loan documentation system and its replacement
have been certified Y2K ready by the vendor.
The platform banking system went through a series of tests in May of 1998 and
passed successfully. Because of the critical nature of this system, in the first
quarter of 1999 the Bank went through a second round of testing of this software
which also passed successfully.
Customers. The Bank may experience loan collection or other credit-related
problems if significant customers are not Y2K compliant before the turn of the
century. In order to assess their Y2K compliance, the Bank has sent Y2K surveys
to a majority of its commercial customers. Many of these customers have
responded to the Bank's inquiries and continue to update the Bank as new data
becomes available. The Bank intends to continue surveying new customers as
appropriate to assess their Y2K readiness. The Bank will also conduct another
survey of all its commercial customers around mid-1999. To date, the Bank has
received satisfactory responses from most of its major commercial customers, and
management currently does not anticipate the Bank will experience material
adverse effects on operations as a result of customer Y2K non-compliance.
Vendors. Similarly, the Bank is receiving regular updates from almost all the
vendors who provide mission- critical products and services. The Bank is making
efforts to contact those vendors who have not yet provided information regarding
their Y2K readiness. Of those vendors whose compliance status is known to the
Bank, all are either already compliant or appear to be making satisfactory
progress toward compliance.
Y2K Compliance Costs. The Bank outsources a majority of its information
processing to third-party vendors, and its internal computer systems generally
rely on software provided by third-party vendors. As a result, the Bank has
incurred very little cost to date, less than $5,000, in assessing its internal
Y2K readiness. The Bank will incur additional remediation costs which are not
expected to be material, generally in connection with (i) its continuing dialog
with vendors and customers to assess their readiness, (ii) the installation of
one new system and the replacement of one old system, and (iii) contingency
planning and status updates. The Bank currently expects that such additional
costs will not exceed $15,000.
Y2K Risks. The most significant Y2K risks to the Bank are associated with the
potential non-compliance of its third-party vendors who provide mission-critical
services. Since the Bank outsources most of its information processing to
third-party vendors, such a failure could result in higher operating costs,
increased staffing needs or the inability to provide needed services to
customers. Likewise, the failure of those vendors providing critical
infrastructure services, specifically, power and communications, could result in
temporary operational difficulties at the Bank.
Y2K failures of the Bank's significant commercial customers could result in the
inability of those customers to make timely payments on loans, potentially
resulting in a loss of revenue, adjustments to the Bank's loan loss reserves,
reduced deposit balances or increased cash requirements.
-9-
<PAGE>
Another area of risk to the Bank lies with consumer deposit behavior. If a
significant number of customers were to withdraw substantial amounts of
deposits, the Bank could face a shortage of liquid assets. Management currently
intends to maintain additional levels of cash on hand to meet potential demands,
and expects to be able to meet such cash demands satisfactorily.
The Bank does not anticipate material failures of its embedded systems, since
virtually none of these systems rely on date-based control systems.
Contingency Plans. The Bank is currently developing contingency plans to deal
with potential business interruptions caused by Y2K non-compliance of its
vendors, customers or internal systems. These plans address a wide range of
potential problems. The Bank's contingency plan is about 80% complete, and
should be 100% complete by the end of the second quarter of 1999.
Although the Bank has taken many steps to ensure that Y2K will not adversely
impact its results of operations or financial condition, there can be no
assurance that it will not have such an effect. Whether the Bank will experience
adverse effects as a result of Y2K will depend on certain risks and factors
including risks associated with (i) Y2K readiness of the vendors who supply the
Bank with critical information processing, credit delivery and other services;
(ii) Y2K readiness of the Bank's key commercial customers; (iii) unanticipated
expenses associated with ongoing assessment or remediation of potential internal
Y2K problems which could affect the Bank's operations; (iv) the potential
inadequacy or failure of the testing procedures used by the Bank in performing
its internal Y2K assessments; (v) the inaccuracy of Y2K compliance certification
received by the Bank from certain outside vendors regarding those vendors'
systems which are used by the Bank; and (vi) the failure of the Bank to design
adequate contingency plans in the event of internal or external Y2K
non-compliance.
Special Note Regarding Forward-Looking Statements
Certain matters discussed in this Quarterly Report on Form 10-QSB are
"forward-looking statements" intended to qualify for the safe harbors from
liability established by the Private Securities Litigation Reform Act of 1995.
These forward-looking statements can generally be identified as such because the
context of the statement will include words such as the Company "believes,"
"anticipates," "expects," or other words of similar import. Similarly,
statements that describe the Company's future plans, objectives or goals are
also forward- looking statements. Such forward-looking statements are subject to
certain risks and uncertainties which could cause actual results to differ
materially from those contemplated in the forward-looking statements. Such risks
include, among others: interest rate trends, the general economic climate in the
Company's market area, loan delinquency rates, risks associated with the turning
of the Year 2000, and legislative enactments or regulatory changes which
adversely affect the business of the Company and/or the Bank. Shareholders,
potential investors and other readers are urged to consider these factors in
evaluating the forward-looking statements. The forward- looking statements
included herein are only made as of the date of this Form 10-QSB and the Company
undertakes no obligation to publicly update such forward-looking statements to
reflect subsequent events or circumstances.
-10-
<PAGE>
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
27 Financial Data Schedule
(EDGAR version only)
b. Reports on Form 8-K
The Company did not file a Current Report on Form 8-K during
the quarter ended March 31, 1999
-11-
<PAGE>
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.
RIDGESTONE FINANCIAL SERVICES, INC.
Date: May 13, 1999 /s/ Paul E. Menzel
---------------- -------------------------------------
Paul E. Menzel
President
Date: May 13, 1999 /s/ William R. Hayes
---------------- -------------------------------------
William R. Hayes
Vice President and Treasurer
-12-
<PAGE>
EXHIBIT INDEX
Exhibit Number
27 Financial Data Schedule
(EDGAR version only)
-13-
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATIOON EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF RIDGESTONE FINANCIAL
SERVICES, INC. AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 2,651,399
<INT-BEARING-DEPOSITS> 8,141
<FED-FUNDS-SOLD> 11,563,000
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 2,104,377
<INVESTMENTS-CARRYING> 1,750,009
<INVESTMENTS-MARKET> 1,770,228
<LOANS> 47,344,917
<ALLOWANCE> 540,247
<TOTAL-ASSETS> 70,445,713
<DEPOSITS> 63,609,892
<SHORT-TERM> 0
<LIABILITIES-OTHER> 529,806
<LONG-TERM> 0
0
0
<COMMON> 8,417,117
<OTHER-SE> (2,101,368)
<TOTAL-LIABILITIES-AND-EQUITY> 70,445,713
<INTEREST-LOAN> 950,154
<INTEREST-INVEST> 82,407
<INTEREST-OTHER> 111,393
<INTEREST-TOTAL> 1,143,953
<INTEREST-DEPOSIT> 626,686
<INTEREST-EXPENSE> 626,686
<INTEREST-INCOME-NET> 517,267
<LOAN-LOSSES> 30,000
<SECURITIES-GAINS> (15,402)
<EXPENSE-OTHER> 552,521
<INCOME-PRETAX> 20,131
<INCOME-PRE-EXTRAORDINARY> 20,131
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 20,131
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
<YIELD-ACTUAL> 7.43
<LOANS-NON> 532,935
<LOANS-PAST> 3,055,517
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 562,747
<CHARGE-OFFS> 30,000
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 540,247
<ALLOWANCE-DOMESTIC> 400,011
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 140,236
</TABLE>
