well, I just need a bigger monitor.
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TYPE:ÿÿ10-QÿSEQUENCE:ÿÿ1ÿDESCRIPTION:ÿÿFORM 10-Q
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 the Quarter Ended March 31, 1998 Commission File No. 0-22361
NET.B@NK, INC.
(Exact name of registrant as specified in its charter)
Georgia 58-2224352
---------------------------------- ----------------------------------
(State of incorporation) (I.R.S. Employer
Identification Number)
950 North Point Parkway Suite 350
Alpharetta, Georgia 30005
---------------------------------- ----------------------------------
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (770) 343-6006
----------------------
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. YES X NO
-------- -------
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
Class Shares Outstanding at May 12, 1998
---------------------------------- ----------------------------------
Common Stock, par value $.01 6,145,962
FINANCIAL INFORMATIONFinancial Statements
The following financial statements are included in this report:
1. Consolidated condensed balance sheets as of March 31, 1998 and as of
December 31, 1997.
2. Condensed consolidated statements of operations and comprehensive
income (unaudited) for the three months ended March 31, 1998 and 1997.
3. Statements of shareholders' equity (unaudited) from December 31, 1997
to March 31, 1998.
4. Consolidated condensed statements of cash flows (unaudited) for the
three months ended March 31, 1998 and 1997.
5. Notes to condensed consolidated financial statements as of December
31, 1997 and the three months ended March 31, 1998 and 1997
(unaudited). 2NET.B@NK, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
--------------------------------------------------------------------------------
March 31, December 31,
1998 1997
ASSETS
CASH AND CASH EQUIVALENTS:
Cash $ 1,447,858 $ 250,535
Federal Funds Sold 8,647,074 28,853,057
------------ -----------
Total cash and cash equivalents 10,094,932 29,103,592
SECURITIES AVAILABLE FOR SALE - At fair value (amortized cost of
$46,304,903 and $18,137,209) 46,332,787 18,054,146
STOCK OF FEDERAL HOME LOAN BANK
OF ATLANTA - At cost 251,500 225,000
LOANS RECEIVABLE - Net of allowance for doubtful
accounts of $457,105 and $453,444 104,811,497 44,479,963
ACCRUED INTEREST RECEIVABLE 898,303 372,237
FURNITURE AND EQUIPMENT - Net 530,845 388,508
BANK CHARTER 340,667 344,167
OTHER ASSETS 202,900 252,196
------------ -----------
$163,463,431 $93,219,809
------------ -----------
------------ -----------
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) LIABILITIES:
Deposits $128,681,669 $58,726,763
Other payables and accrued liabilities 681,301 375,649
------------ -----------
129,362,970 59,102,412
SHAREHOLDERS' EQUITY: Preferred stock, no par (10,000,000
shares authorized,none outstanding) Common stock, $.01 par (100,000,000
shares authorized, 6,145,562 shares
issued and outstanding) 61,456 61,456
Additional paid-in capital 43,631,314 43,631,314
Unamortized stock plan expense (52,125) (75,689)
Accumulated deficit (9,568,068) (9,416,621)
Accumulated other comprehensive income
(loss) 27,884 (83,063)
------------ -----------
Total liabilities and shareholders' equity 34,100,461 34,117,397
------------ -----------
$163,463,431 $93,219,809
------------ -----------
------------ -----------
See notes to financial statements. -3-
NET.B@NK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
--------------------------------------------------------------------------------
Three Months Ended
March 31,
1998 1997
-------------------
INTEREST INCOME:
Short-term investments $ 395,003 $ 5,775
Investment securities 453,376
Loans 1,358,235
---------- ------------
Total interest income 2,206,614 5,775
INTEREST EXPENSE - Deposits 1,303,628 102,525
---------- ------------
NET INTEREST INCOME (LOSS) 902,986 (96,750)
PROVISION FOR LOAN LOSSES 3,661
---------- ------------
NET INTEREST INCOME (LOSS) AFTER
PROVISION FOR LOAN LOSSES 899,325 (96,750)
NON-INTEREST INCOME - Service charges and fees 122,495
NON-INTEREST EXPENSES:
Salaries and benefits 434,353 524,971
Marketing 240,018 60,495
Depreciation and amortization 40,037 6,879
Outside services 191,661 21,277
Other 86,872 119,993
Data processing 91,226 71,506
Occupancy 26,093 29,750
Office expenses 47,566
Travel and entertainment 15,441 4,404
Amortization of service contract
with affiliate 864,000
---------- ------------
Total non-interest expenses 1,173,267 1,703,275
---------- ------------
NET LOSS $(151,447) $(1,800,025)
---------- ------------
---------- ------------
NET LOSS PER COMMON SHARE - BASIC AND DILUTED $(0.02) $(1.44)
---------- ------------
---------- ------------
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 6,143,562 1,249,342
---------- ------------
---------- ------------
NET LOSS $ (151,447) $ (1,800,025)
OTHER COMPRHENSIVE INCOME:
Unrealized holding gains arising during period 159,073
Less reclassification adjustment for gains
included in net loss (48,126)
Total other comprehensive income 110,947 -
---------- ------------
COMPREHENSIVE LOSS $(40,500) $(1,800,025)
---------- ------------
---------- ------------
See notes to financial statements.
-4-NET.B@NK, INC.
STATEMENTS OF SHAREHOLDERS' EQUITY (UNAUDITED)
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ACCUMULATED
OTHER
PREFERRED COMMON ADDITIONAL UNAMORTIZED COMPREHENSIVE
STOCK COMMON STOCK PAID-IN STOCK PLAN ACCUMULATED INCOME
(NO PAR) SHARES ($.01 PAR) CAPITAL EXPENSE DEFICIT (LOSS) TOTAL
BALANCE - December 31, 1997 $ - 6,145,562 $61,456 $43,631,314 $(75,689) $(9,416,621) $ (83,063) $34,117,397
Net loss for the three
months ended March 31, 1998 (151,447) (151,447)
Other comprehensive income: Unrealized holding gains
arising during the period
ended March 31, 1998 159,073 159,073
Less reclassification adjustment for gains included
in net loss (48,126) (48,126)
Amortization of stock plan
expense 23,564 23,564
----- --------- ------- ----------- -------- ----------- --------- -----------
BALANCE - March 31, 1998
(unaudited) $ - 6,145,562 $61,456 $43,631,314 $(52,125) $(9,568,068) $ 27,884 $34,100,461
----- --------- ------- ----------- -------- ----------- --------- -----------
----- --------- ------- ----------- -------- ----------- --------- -----------
See notes to financial statements.
-5-
NET.B@NK, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
-------------------------------------------------------------------------------
Three Months Ended
March 31,
------------------
1998 1997
OPERATING ACTIVITIES:
Net loss $ (151,447) $(1,800,025)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 36,537 6,879
Amortization of service contract 864,000
Amortization of stock plan expense 23,564 40,677
Amortization of premiums on investment
securities and loans 73,062
Amortization of premiums on
purchased loans 152,038
Amortization of Bank Charter 3,500
Provision for loan losses 3,661
Changes in assets and liabilities which provide (use) cash:
Accrued interest receivable (526,066)
Other assets 49,296 (128,413)
License agreements - noncurrent 16,060
Payables and accrued liabilities 305,652 111,150
------------ -----------
Net cash used in operating activities (30,203) (899,672)
INVESTING ACTIVITIES:
Purchases of securities available for sale (30,443,211)
Purchase of Federal Home Loan Bank stock (26,500)
Principal repayments on mortgage backed
securities 2,202,455
Purchase of loans (70,683,033)
Principal payments on loans 10,195,800
Capital expenditures (178,874) (8,255)
Proceeds from return of equipment 17,738
------------ -----------
Net cash provided by (used in)
investing activities (88,933,363) 9,483
FINANCING ACTIVITIES:
Increase in deposits 69,954,906
Advances from affiliate 313,401
Net proceeds from the sale of
common stock 2,790
------------ -----------
Net cash provided by financing
activities 69,954,906 316,191
------------ -----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS (19,008,660) (573,998)
CASH AND CASH EQUIVALENTS:
Beginning of period 29,103,592 768,666
------------ -----------
End of period $ 10,094,932 $ 194,668
------------ -----------
------------ -----------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Cash paid during the
year for interest $ 808,000 $ -
------------ -----------
------------ -----------
See notes to financial statements. -6-
NET.B@NK, INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
AS OF DECEMBER 31, 1997 AND THE THREE MONTHS ENDED
MARCH 31, 1998 AND 1997(UNAUDITED)
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I might add more. |
