<PAGE>
UNITED STATES 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 March 31, 1997
--------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
--------- -----------
Commission File Number: 0-18527
First Community Bancorp, Inc.
----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Georgia 58-1869700
-------------------- -------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
827 Joe Frank Harris Parkway, S.E. Cartersville, GA 30120
---------------------------------------------------------------------------
(Address of principal executive offices)
(770) 382-1495
------------------------------------
(Issuer's telephone number)
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 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
------ -----
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by court.
Yes No
------ ------
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity, as of May 12, 1997: 423,364
-------------
Transitional Small Business Disclosure Format (Check One) Yes No X
---- ---
<PAGE>
FIRST COMMUNITY BANCORP, INC
AND SUBSIDIARY
- -------------------------------------------------------------------------------
INDEX
-----
Page
----
PART I. FINANCIAL INFORMATION
Item 1. Consolidated Balance Sheet - March 31, 1997.............3
Consolidated Statements of Income - Three Months
Ended March 31, 1997 and 1996....................................4
Consolidated Statements of Cash Flows - Three Months
Ended March 31, 1997 and 1997....................................5
Note to Consolidated Financial Statements.........................6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...........................7-12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.......................13
Signatures
2
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
FIRST COMMUNITY BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
MARCH 31, 1997
(Unaudited)
<TABLE>
<CAPTION>
Assets
- ------
<S> <C>
Cash and due from banks $ 3,239,047
Interest-bearing deposits in banks 4,604,959
Securities available for sale, at fair 11,211,226
value
Securities held to maturity, at cost 4,202,452
(fair value of $4,142,493)
Loans 58,196,277
Less allowance for loan losses (968,525)
------------
Loans, net 57,227,752
Premises and equipment, net 1,901,562
Other assets 2,367,099
------------
Total Assets $ 84,754,097
============
Liabilities and Stockholders' Equity
- ----------------------------------------
Deposits
Noninterest-bearing demand $ 12,095,314
Interest-bearing demand 15,610,258
Savings 4,640,937
Time 35,960,491
------------
Total deposits 68,307,000
Other borrowings 7,324,300
Other liabilities 1,946,777
------------
Total liabilities 77,177,057
------------
Commitments and contingent liabilities
Stockholders' equity
Common stock, par value $1;
10,000,000 shares authorized;
423,364 issued and outstanding 423,364
Capital surplus 3,827,433
Retained earnings 2,948,869
Unrealized losses on securities
available for sale, net of taxes (23,646)
------------
Total stockholders' equity 7,174,631
------------
Total Liabilities and Stockholders' $ 84,754,097
Equity
============
</TABLE>
See Notes to Consolidated Financial Statements.
3
<PAGE>
FIRST COMMUNITY BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended
March 31,
------------------------
1997 1996
------------------------
<S> <C> <C>
Interest income
Interest and fees on loans $1,584,020 $1,252,460
Interest on taxable securities 178,018 167,123
Interest on nontaxable securities 24,999 16,714
Interest on deposits in banks 41,471 71,452
------------------------
1,828,508 1,507,749
------------------------
Interest expense
Interest on deposits 649,956 611,920
Interest on other borrowings 75,644 17,428
------------------------
725,644 629,348
------------------------
Net interest income 1,102,907 878,401
Provision for loan losses 75,000 54,000
------------------------
Net interest income after
provision for loan losses 1,027,907 824,401
------------------------
Other income
Service charges on deposit accounts 118,334 104,162
Gain on sale of loans 38,822 0
Other 67,709 94,712
------------------------
Total other income 224,865 198,874
------------------------
Other expense
Salaries and employee benefits 443,620 366,421
Equipment and occupancy expense 101,764 85,900
Other operating expenses 220,558 199,874
------------------------
Total other expenses 765,942 652,195
------------------------
Income before income 486,831 371,080
taxes
Applicable income taxes 177,289 134,930
------------------------
Net income $ 309,542 $ 236,150
========================
Per share of common stock
Net income $0.73 $0.56
========================
Dividends - $0.29
========================
</TABLE>
See Notes to Consolidated Financial Statements.
4
<PAGE>
FIRST COMMUNITY BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
---------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 309,542 $ 236,150
---------------------------
Adjustments to reconcile net income
to net cash
provided by operating
activities:
Provision for loan losses 75,000 54,000
Depreciation 56,222 60,742
Amortization and accretion, net 6,516 7,316
Gain on sale of loans (38,822) --
Decrease (Increase) in other assets (387,304) 12,593
Increase (decrease) in other
liabilities 335,276 182,069
---------------------------
Total adjustments 46,888 316,720
---------------------------
Net cash provided by
operating activities 356,430 552,870
---------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
(Increase) Decrease in
interest-bearing deposits in bank,
net (865,796) (384,406)
Proceeds from maturities of
securities available for sale 632,437 567,727
Purchases of securities available
for sale (2,028,609) (3,424,179)
Proceeds from maturities of
securities held for investment -- 1,000,000
Proceeds from sale of securities
available for sale 471,400 --
Proceeds from sale of loans 509,642 --
Loans originated or acquired, net
of collections (4,251,408) (2,653,134)
Purchase of premises and equipment (179,583) (37,616)
---------------------------
Net cash used in
investing activities (5,711,917) (4,931,608)
---------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in demand deposits and
savings accounts, net 836,556 2,550,598
Increase in certificates of
deposit, net of maturities 2,096,898 1,694,117
Increase (decrease) from other
borrowings, net 1,975,850 (24,150)
---------------------------
Net cash provided by
financing activities 4,909,304 4,220,565
---------------------------
</TABLE>
5
<PAGE>
FIRST COMMUNITY BANCORP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1997 AND 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
-------------------------
<S> <C> <C>
Net increase in cash and due from banks (446,183) (158,173)
Cash and due from banks at beginning of
period 3,685,230 2,513,996
-------------------------
Cash and due from banks at end of period $3,239,047 $2,355,823
=========================
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION
Cash paid during the period for:
Interest $ 629,220 $ 529,058
=========================
Income taxes $ 43,677 $ 340,168
=========================
SUPPLEMENTAL DISCLOSURE OF NONCASH
INVESTING ACTIVITIES
Unrealized losses on securities
available for sale $ 23,646 $ 34,428
=========================
</TABLE>
See Notes to Consolidated Financial Statements.
6
<PAGE>
FIRST COMMUNITY BANCORP, INC.
AND SUBSIDIARY
NOTE TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. BASIS OF PRESENTATION
The consolidated financial information included herein is unaudited;
however, such information reflects all adjustments (consisting solely
of normal recurring adjustments) which are, in the opinion of
management, necessary for a fair statement of results for interim
periods.
The results of operations for the three month period ended March 31,
1997 are not necessarily indicative of the results to be expected for
the full year.
NOTE 2. CURRENT ACCOUNTING DEVELOPMENTS
The financial Accounting Standards Board has issued SFAS No. 128,
"Earnings Per Share". SFAS No. 128 establishes standards for
computing and presenting earnings per share (EPS) and applies to
entities with publicly held common stock or potential common stock.
This Statement simplifies the standards for computing earnings per
share previously found in APB Opinion No. 15, Earnings per Share, and
makes them comparable to international EPS standards. It replaces the
presentation of primary EPS with a presentation of basic EPS. It also
requires dual presentation of basic and diluted EPS on the face of the
income statement for all entities with complex capital structures and
requires a reconciliation of the numerator and denominator of the
basic EPS computation to the numerator and denominator of the diluted
EPS computation. The effective date of this statement is for
financial statements issued for periods ending after December 15,
1997. The adoption of this Statement is not expected to have a
material effect on earnings per share.
NOTE 3 DECLARATION OF STOCK DIVIDEND
The Board of Directors declared a 2% stock dividend on February 18,
1997 for shareholders of record as of March 1, 1997 to be paid on May
1, 1997. Common stock outstanding on the balance sheet to reflect
this declaration and earnings and dividends per share have been
retroactively restated.
7
<PAGE>
FIRST COMMUNITY BANCORP, INC.
AND SUBSIDIARY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Introduction
- ------------
The following is a discussion of the Company's financial condition at March 31,
1997 compared to December 31, 1996 and the results of its operations for the
three months ended March 31, 1997 compared to the three month period ended March
31, 1996. These comments should be read in conjunction with the financial
statements and related notes appearing elsewhere in this report.
Financial Condition
- -------------------
<TABLE>
<CAPTION>
Increase (Decrease)
March 31 December 31, ---------------------
1997 1996 Amount Percent
--------------------------------------------------
<S> <C> <C> <C> <C>
Total Assets $84,754,097 $79,221,198 $5,532,899 6.98%
Loans $58,196,277 $54,436,430 $3,759,847 6.91%
Securities $15,413,678 $14,528,809 $ 884,869 6.09%
Interest-bearing bank balances $ 4,604,959 $ 3,739,163 $ 865,796 23.15%
</TABLE>
Changes in total assets and the major categories of assets are shown in the
table above. The increase in loans is due to a continuing increase in loan
demand throughout the year, and principally in residential construction and
development loans. The increase in the securities portfolio is due to the
purchase of U. S. Government and Government Agency Securities. The increase in
interest-bearing bank balances is directly related to the increase in total
deposits.
The majority of the loans originated in the three month period ending March 31,
1997 are primarily short-term maturities of six months to one year or contain
variable interest rates with terms from 1 to 3 years or less. The following
table presents scheduled repricing of the Company's loans at March 31, 1997.
<TABLE>
<CAPTION>
Within 1 to 5 After
1 Year Years 5 Years
-------- --------- --------- Total
(Dollars in Thousands)
--------------------------------------------
<S> <C> <C> <C> <C>
Variable interest rates $ 22,219 $ 4,475 $ 0 $ 26,694
Fixed interest rates 10,247 18,628 2,627 31,502
-------- --------- --------- --------
Total $ 32,466 $ 23,103 $ 2,627 $ 58,196
======== ========= ========= ========
</TABLE>
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
<TABLE>
<CAPTION>
Increase (Decrease)
March 31, December 31, --------------------
1997 1996 Amount Percent
------------------------------------------------
<S> <C> <C> <C> <C>
Total deposits $68,307,000 $65,373,546 $2,933,454 4.49%
Other borrowings $ 7,324,300 $ 5,348,450 $1,975,850 36.94%
Certificates of deposit over
$100,000 (included in total
deposits above) $ 9,389,759 $ 8,952,875 436,884 4.88%
</TABLE>
The $2,933,454 increase in deposits included a $436,884 increase in certificates
of deposit over $100,000. The deposit growth has resulted from continuing
growth in the Bartow County and Cartersville areas accompanied by the location
of new retail and other businesses to the area. Competitive rates are paid on
deposits but not above the local market.
The increase in other borrowings was due entirely to an increase in advances
from The Federal Home Loan Bank of Atlanta to fund the continued strong loan
demand.
The Company's ratio of loans to deposits at March 31, 1997 was 85.20% as
compared to 81.87% at December 31, 1996 and the increase is primarily due to a
strong increase during 1997 in residential development and construction loan
demand.
Liquidity and Interest Rate Sensitivity
- ---------------------------------------
Liquidity, as defined by net cash, short-term investments and other marketable
investments as a percent of deposits, was 23.47% at March 31, 1997, and is
considered adequate. The Company has an $8,500,000 line of credit with the
Federal Home Loan Bank of which $7,324,300 has been advanced, a $3,750,000
unsecured line of credit with correspondent banks. These lines are available
should liquidity needs increase.
9
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
The following summarizes the cumulative interest sensitivity position of the
Company at March 31, 1997.
<TABLE>
<CAPTION>
Time Horizon
---------------------------------------
Months
---------------------------------------
0 to 3 0 to 12 0 to 60 Total
----------- --------- ----------- --------
(Dollars in Thousands)
---------------------------------------------------
<S> <C> <C> <C> <C>
Interest sensitive assets $ 33,533 $ 42,217 $ 72,586 $ 77,378
Interest sensitive liabilities 34,073 52,811 63,536 63,536
-------- --------- ----------- --------
Assets less liabilities $ (540) $ (10,594) $ 9,050 $ 13,842
======== ========= =========== ========
Ratio:
Interest sensitive assets to
interest sensitive liabilities 0.98 0.79 1.14 1.22
======== ========= =========== ========
</TABLE>
The current interest sensitivity position indicates a close match of interest-
sensitive assets and interest-sensitive liabilities, particularly in the one
year time horizon. Increases or decreases in interest rates should not have
significant effect on the Company's net interest margin.
Capital Resources
- -----------------
The minimum capital requirements for banks and bank holding companies require a
leverage capital to total assets ratio of at least 3%, core capital to total
assets ratio of at least 4% and total risk-based capital to total adjusted
assets ratio of 8%.
Selected financial information relating to the Company's minimum capital
requirements at March 31, 1997 is as follows:
<TABLE>
<CAPTION>
Percent
-------
<S> <C>
Leverage capital ratio 8.47%
Core capital ratio 12.18%
Risk-based capital ratio 13.42%
</TABLE>
10
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
Results of Operations For The Three Months Ended March 31, 1997 and 1996
- -----------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Increase (Decrease)
March 31 -----------------------
1997 1996 Amount Percent
----------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Total interest income $ 1,828,508 $ 1,507,749 $ 320,759 21.27%
Total interest expense 725,601 629,348 96,253 15.29%
Net interest income 1,102,907 878,401 224,506 25.56%
Provision for loan losses 75,000 54,000 21,000 38.89%
Other operating income 224,865 198,874 25,991 13.07%
Other operating expenses 765,942 652,195 113,747 17.44%
Provision for income taxes 177,289 134,930 42,359 31.39%
Net income 309,542 236,150 73,392 31.08%
</TABLE>
The increase in total interest income was due to the increased volume of
interest-earning assets, principally loans. Total interest expense for the same
period increased as indicated in the above table primarily due to the increase
in deposits and borrowings from the Federal Home Loan Bank. The resulting
increase in net interest margin is due primarily to the stated growth in loan
portfolio rather than an increase in the spread between yields on earning assets
and the cost of interest-bearing liabilities.
The provision for loan losses is the charge to operating earnings that
management feels is necessary to maintain an adequate allowance for loan losses.
It is based on the growth of the loan portfolio, the amount of net loan losses
incurred and management's estimate of potential future loan losses based on an
evaluation of loan portfolio risks and certain economic factors. The provision
for loan losses increased by $21,000 or 38.89% for the three month period ended
March 31, 1997 as compared to the same period in 1996 due to the growth in the
loan portfolio. The loan loss reserve as a percentage of total loans was 1.66%
and 1.71% at March 31, 1997 and March 31, 1996, respectively. There were no non
performing loans as March 31, 1997 and management believes that the allowance
for loan losses is adequate to absorb anticipated loan losses.
The 13.07% increase in other operating income is the net result of increased
mortgage loan origination fees and gains on the sale of Small Business
Administration (SBA) loans.
The increase of other operating expenses for the three month period ending March
31, 1997 as compared to the comparable period in 1996 as shown in the preceding
table resulted primarily from the increase in personnel and other expenses
necessary to service an increasing deposit and loan customer base including
additional staffing in the mortgage origination and accounts receivable
factoring and servicing areas.
11
<PAGE>
The increase in income taxes shown in the preceding table resulted primarily
from increased net income before taxes for the three month period ended March
31, 1997 as compared to the similar period in 1996. The effective tax rate was
36.42% and 36.36%, respectively, for the three month periods ended March 31,
1997 and 1996.
Net income for the three month period ended March 31, 1997 as compared to the
same period in 1996 increased $73,392 or 31.08%.
12
<PAGE>
FIRST COMMUNITY BANCORP, INC.
AND SUBSIDIARY
PART II. OTHER INFORMATION
ITEM 6.
(a) Exhibits filed in accordance with Item 601 of Regulation S-K.
27. Financial Data Schedule.
(b) The Company has not filed any reports on Form 8-K with the
Securities and Exchange Commission during the three months
ended March 31,1997.
13
<PAGE>
SIGNATURES
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 thereunto duly authorized.
FIRST COMMUNITY BANCORP, INC.
BY: /s/ J. Steven Walraven
-------------------------------------
J. Steven Walraven
President and Chief Executive Officer
(Principal Executive Officer)
DATE: May 13, 1997
-------------------------------------
BY: /s/ Danny F. Dukes
-------------------------------------
Danny F. Dukes
Vice President, Chief Financial and
Operations Officer
DATE: May 13, 1997
-------------------------------------
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 3,239,047
<INT-BEARING-DEPOSITS> 4,604,959
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 11,211,226
<INVESTMENTS-CARRYING> 4,202,452
<INVESTMENTS-MARKET> 4,142,493
<LOANS> 58,196,277
<ALLOWANCE> 968,535
<TOTAL-ASSETS> 84,754,097
<DEPOSITS> 68,307,000
<SHORT-TERM> 0
<LIABILITIES-OTHER> 1,946,777
<LONG-TERM> 7,324,300
0
0
<COMMON> 423,364
<OTHER-SE> 6,752,656
<TOTAL-LIABILITIES-AND-EQUITY> 84,754,097
<INTEREST-LOAN> 1,584,020
<INTEREST-INVEST> 244,488
<INTEREST-OTHER> 0
<INTEREST-TOTAL> 1,828,508
<INTEREST-DEPOSIT> 649,956
<INTEREST-EXPENSE> 725,600
<INTEREST-INCOME-NET> 1,102,907
<LOAN-LOSSES> 75,000
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 765,942
<INCOME-PRETAX> 486,831
<INCOME-PRE-EXTRAORDINARY> 309,542
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 309,542
<EPS-PRIMARY> .73
<EPS-DILUTED> 0
<YIELD-ACTUAL> 5.64
<LOANS-NON> 0
<LOANS-PAST> 233,895
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 914,266
<CHARGE-OFFS> 29,334
<RECOVERIES> 8,593
<ALLOWANCE-CLOSE> 968,525
<ALLOWANCE-DOMESTIC> 968,525
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
