10-Q 1 g71182e10-q.txt VALRICO BANCORP, INC 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended June 30, 2001 COMMISSION FILE NUMBER 33 ACT FILE NO. -33-90524 ------------------------- VALRICO BANCORP, INC. --------------------- (Exact name of registrant as specified in its Charter) (FLORIDA) 65-0553757 ---------- ------------ (State of other jurisdiction of (I.R.S. Employee Identification No.) incorporation of organization) 1815 EAST STATE ROAD 60, VALRICO, FLORIDA 33594 ----------------------------------------------- (Address of principal executive offices and Zip Code) (813) 689-1231 -------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has 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 registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. (1) Yes X (2) No ----- ----- AS OF June 30, 2001, THERE WERE 304,224 SHARES OF COMMON STOCK OUTSTANDING 2 VALRICO BANCORP, INC.

2 3 VALRICO BANCORP, INC. CONSOLIDATED BALANCE SHEETS (unaudited)

See Notes to Consolidated Financial Statements 3 4 VALRICO BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

See Notes to Consolidated Financial Statements 4 5 VALRICO BANCORP, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)

See Notes to Consolidated Financial Statements 5 6 VALRICO BANCORP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

See Notes to Consolidated Financial Statements 6 7 VALRICO BANCORP, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) June 30, 2001 BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles. In the opinion of management, all necessary adjustments (consisting of normal recurring entries) have been made for a fair presentation of the accompanying unaudited consolidated financial statements. These financial statements rely, in part, on estimates. The results for the period are not necessarily indicative of the results to be expected for the entire year. Valrico Bancorp, Inc., a one-bank holding company, acquired 100% of the common stock of Valrico State Bank as of May 31, 1995 in a transaction accounted for similar to a pooling of interests. Therefore, the unaudited consolidated financial statements include the accounts of Valrico Bancorp, Inc. (the Company) and its wholly owned subsidiary, Valrico State Bank (the Bank). Significant intercompany balances and transactions have been eliminated in consolidation. Net income per share has been computed by dividing net income by the average number of common shares outstanding of 304,257 as of June 30, 2001, and 301,917 as of June 30, 2000. 7 8 VALRICO BANCORP, INC. MANAGEMENT'S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Company's primary asset is its subsidiary bank, which is in its twelfth year of operation. During the six months ended June 30, 2001, the Bank experienced a growth in deposits with an increase of $8,977,000 or 10.70%. Time deposits greater than $100,000 had the highest percentage of growth at 16.40%, or an increase of $1,883,000 in the six months ended June 30, 2001. Outstanding loans decreased $1,097,000 or 1.61% for the six months ended June 30, 2001. The allowance for credit losses at June 30, 2001 was at $997,000 compared to $943,000 at December 31, 2000. The Bank had $36,000 in charge-offs and had recoveries in the amount of $30,000 during the six months ended June 30, 2001, and has loan classified as troubled in the amount of $60,000 as of June 30, 2001. A total of $60,000 was expensed for provision for loan losses during the period. Management considers the allowance to be adequate at this time. Nonaccrual loans amounted to $483,000 and $654,000 at June 30, 2001 and 2000, respectively. Loans 90 days or more past due amounted to $504,000 and $0 at June 30, 2001 and 2000, respectively. There were restructured loans in the amount of $356,000 and $50,000 at June 30, 2001 and 2000, respectively. The following table sets forth a summary of loan loss experience: Analysis of the Allowance for Loan Losses

8 9 VALRICO BANCORP, INC. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED) Consolidated net income for the six months ending June 30, 2001 was $391,000 or $1.29 per share which compares to $455,000 or $1.51 per share for the same period in 1999. This represents a decrease over the comparable quarter of $64,000. Salaries and benefits represent 56.4% of non-interest expenses for the six months ended June 30, 2001, compared to 57.8% for the six months ended June 30, 2000. Salary expense for the six months ended June 30, 2000 increased 3.4% over the same period for 1999. The Tier I capital ratio was 6.88% and Total Capital ratio was 7.82% at June 30, 2001. The tier I capital to total risk-weighted assets ratio was 9.15% at June 30, 2001. 9 10 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K No reports on Form 8-K were filed for the quarter ended June 30, 2001. 10 11 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on July 14th, 2001 on its behalf by the undersigned thereunto duly authorized. VALRICO BANCORP, INC. By: /s/ Bob Mclean ----------------------------------------- Bob Mclean President and Chief Executive Officer By: /s/ Jerry L. Ball ---------------------------------------- Jerry L. Ball Executive Vice President 11

VALRICO BANCORP INC 10-Q