-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IAFLV99ijmo3oeXzmJU04s31M0aBQKfNRHvZfoib5MYXYYtrS8ROAxYmCUFw/CPv Ko/sSA8QFDsXfGnXWB0Hlw== 0000908834-03-000436.txt : 20031024 0000908834-03-000436.hdr.sgml : 20031024 20031024145446 ACCESSION NUMBER: 0000908834-03-000436 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031024 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031024 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LINCOLN BANCORP /IN/ CENTRAL INDEX KEY: 0001070259 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 352055553 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25219 FILM NUMBER: 03956312 BUSINESS ADDRESS: STREET 1: 1121 EAST MAIN STREET CITY: PLAINFIELD STATE: IN ZIP: 46168-0510 BUSINESS PHONE: 3178396539 MAIL ADDRESS: STREET 1: 1121 EAST MAIN STREET CITY: PLAINFIELD STATE: IN ZIP: 46168-0510 8-K 1 lin_8k1024.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------------ FORM 8-K ------------------------ CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 22, 2003 LINCOLN BANCORP (Exact name of registrant as specified in its charter) INDIANA (State or other jurisdiction of incorporation) 000-25219 35-2055553 (Commission File Number) (IRS Employer Identification No.) 1121 East Main Street Plainfield, Indiana 46168-0510 (Address of principal executive offices, including Zip Code) (317) 839-6539 (Registrant's telephone number, including area code) Item 7. Financial Statements and Exhibits. (c) Exhibits 99.1 Press Release dated October 22, 2003. Item 12. Results of Operations and Financial Condition. Lincoln Bancorp, an Indiana corporation ("Registrant"), issued a press release which was publicly disseminated on October 22, 2003 announcing its results of operations for the quarter ended September 30, 2003. A copy of the press release is furnished herewith as Exhibit 99.1. Pursuant to General Instruction B.6 of Form 8-K, this exhibit is not "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, but is instead furnished as required by that instruction. 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 hereunto duly authorized. /s/ John M. Baer ------------------------------------- John M. Baer, Secretary and Treasurer Dated: October 24, 2003 EX-99 3 lin_8k1024ex.txt Exhibit 99.1 ------------ LINCOLN BANK - -------------------------------------------------------------------------------- 1121 East Main St. Plainfield, Indiana 46168 LINCOLN BANCORP REPORTS THIRD QUARTER EARNINGS For Immediate Release Wednesday, October 22, 2003 Lincoln Bancorp (Nasdaq: LNCB) (the "Company"), the holding company of Lincoln Bank (the "Bank"), announced today that net income for the third quarter ended September 30, 2003 was $838,000, or $.21 for basic and $.20 for diluted earnings per share. This compared to net income for the comparable period in 2002 of $1,443,000, or $.33 for basic and $.32 for diluted earnings per share. Return on assets was .59% and return on equity was 4.25% for the third quarter of 2003 compared to 1.13% and 6.75%, respectively, for the same period last year. Net income for the nine-month period ended September 30, 2003 was $2,778,000, or $.70 for basic and $.68 for diluted earnings per share. This compared to $3,495,000, or $.80 for basic and $.77 for diluted earnings per share for the same period of 2002. Return on average assets was .67% and return on average equity was 4.67% compared to .93% and 5.45%, respectively, for same period ended September 30, 2002. Assets totaled $578.6 million at September 30, 2003, an increase from December 31, 2002 of $56.7 million for an annualized growth rate of over 14%. This growth occurred in net loans, up $73.4 million from yearend 2002. Cash and interest-bearing deposits in other banks declined by $12.9 million and investment securities available for sale declined $6.3 million. Deposits totaled $325.0 million at September 30, 2003, an increase of $54.6 million or an annualized rate of nearly 27% from December 31, 2002. The majority of this growth was demand deposits, up $14.8 million; money market deposits, up $29.4 million; and certificates of deposit, up $7.8 million from yearend 2002. Federal Home Loan Bank advances increased $5.0 million to $168.0 million. Net interest income for the third quarter of 2003 was $3,907,000 compared to $4,209,000 for the same period in 2002. Net interest margin was 2.89% for the three-month period ended September 30, 2003 compared to 3.42% for the same period in 2002. The average yield on earning assets decreased .95% for the third quarter of 2003 compared to the same period in 2002. The average cost of interest-bearing liabilities decreased .64% from the third quarter of 2002 to the third quarter of 2003. This decreased spread from 2.77% to 2.46%, or .31%. Although spreads have declined 31 basis points from the third quarter of 2002 to the third quarter of 2003, the effect has not been as significant as seen in much of the industry. During 2003 the Bank has been taking steps to help mitigate the effect of continued shrinking spreads. This has been accomplished by reducing the amount of residential real estate loans sold and maintaining a growth mode in commercial lending with greater spreads than alternative short-term cash investments. Net interest income year-to-date through September 30, 2003 was $11,642,000 compared to $12,064,000 for the same period in 2002. Net interest margin was 2.97% through September 30, 2003 down from 3.33% for the same nine-month period one year ago. Net interest income was down from one year ago as a result of declining margins and reduced spreads. The Bank's provision for loan losses for the third quarter 2003 was $189,000 compared to $83,000 for the same period in 2002. Non-performing loans to total loans at September 30, 2003 were .50% compared to .58% at December 31, 2002, while non-performing assets to total assets were .49% at September 30, 2003 compared to .44% at December 31, 2002. Net charge-offs for the quarter ended September 30, 2003 were $5,000 compared to $10,000 for the same period in 2002. The provision for the first nine months of 2003 was $623,000 compared to $163,000 last year for the same nine-month period. The increased provision in 2003 was primarily the result of loan growth and added risk in the loan portfolio due to a higher concentration of commercial loans. Net charge-offs totaled $111,000 for the nine months ended September 30, 2003 compared to $0 for the same period last year. The allowance for loan losses at September 30, 2003 was $3.4 million and .80% as a percentage of total loans compared to a balance at December 31, 2002 of $2.9 million and .82% of total loans. The lower ratio was the result of an increase in the mix of residential real estate loans compared to other loan categories. Residential real estate loans typically have less risk than other types of loans and thus require less allocated allowance. Other income for the three months ended September 30, 2003 was $744,000 compared to $1,267,000 for the same quarter of 2002. Net realized and unrealized gains (losses) on sale of loans declined to $75,000 from $665,000 during the same period in 2002. There were no gains on sale of securities for the third quarter of 2003 compared to $165,000 of gains during the third quarter of 2002. Miscellaneous other income increased to $474,000 during the third quarter of 2003 from $285,000 during the same quarter of 2002. Other income for the nine months ended September 30, 2003 was $2,732,000 compared to $2,510,000 for the same period last year. This improvement was led by an increase in miscellaneous other income, up $664,000 over the same nine-month period in 2002 due primarily to additional bank owned life insurance. This was offset by a reduction in gain on the sale of loans totaling $738,000 this year compared to $1,087,000 last year and by a $200,000 reduction in gain on sale of securities. Other expenses were $3,318,000 for the three months ended September 30, 2003 compared to $3,170,000 for the same three months of 2002. Primary reasons for the increase were from normal operating cost increases plus the addition of our second de novo branch in the Greenwood market during October 2002. Other expenses for the nine months ended September 30, 2003 were $10,032,000 compared to $9,118,000 for the same period last year, an increase of $914,000. Salaries and employee benefits increased $397,000, net occupancy expenses increased $131,000, equipment expenses increased $184,000, data processing increased $144,000 and other expenses increased $152,000 during the nine months ended September 30, 2003 over the same period in 2002. A majority of the increase was due to the addition of the new Greenwood branch, remodeling of our Brownsburg branch and improvements made to our information technology infrastructure. The book value of Lincoln Bancorp common stock was $17.78 per share at September 30, 2003 compared to $17.56 at December 31, 2002. On September 1, 2003, Lincoln Federal Savings Bank changed its name to Lincoln Bank. Lincoln Bancorp and Lincoln Bank are headquartered in Plainfield, Indiana with additional offices in Avon, Brownsburg, Crawfordsville, Frankfort, Greenwood and Mooresville. Statements contained in this news release that are not historical facts may constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Lincoln Bancorp intends such forward-looking statements to be covered by the Private Securities Litigation Reform Act of 1995, and include this statement for purposes of invoking these safe-harbor provisions. The ability to predict results or the actual effect of future plans or strategies is inherently uncertain, and involves a number of risks and uncertainties. In particular, among the factors that could cause actual results to differ materially from actual results are general economic conditions, unforeseen international political events, changes in interest rates, increased competition, changes in consumer demand for financial services, the possibility of unforeseen events affecting the industry generally, substantial changes in financial markets, changes in real estate values and the real estate market, regulatory changes, or unanticipated results in pending legal proceedings or regulatory filings. The fact that there are various risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company undertakes no obligation to release revisions to these forward-looking statements publicly to reflect events or circumstances after the date hereof or to reflect the occurrence of unforeseen events, except as required to be reported under the rules and regulations of the Securities and Exchange Commission. Contact: Tim Unger President and CEO tunger@lincolnbank.biz 317-839-6539
LINCOLN BANCORP SELECTED CONSOLIDATED FINANCIAL DATA OF THE COMPANY (Unaudited) (Dollars in Thousands, Except Per Share Amounts) September 30 December 31 2003 2002 ------------ ----------- Balance Sheet Data: Total assets $ 578,578 $ 521,857 Loans, net (including loans held for sale) 429,660 356,268 Cash and interest-bearing deposits in other banks 14,431 27,298 Investment securities available for sale 93,273 99,600 Investment securities held to maturity 1,745 1,780 Deposits 324,963 270,367 Federal Home Loan Bank advances and repurchase agreements 168,035 163,009 Note payable - 249 Stockholders' equity 78,397 82,120 Book value per common share $ 17.78 $ 17.56 Shares outstanding 4,409,791 4,676,401 Equity to assets 13.55% 15.74% Non-performing assets to total assets 0.49% 0.44% Non-performing loans to total loans 0.50% 0.58% Allowance for loan losses to total loans 0.80% 0.82% Three Months Ended September 30 Nine Months Ended September 30 2003 2002 2003 2002 ---------------- ------------- ------------ --------------- Operating Data: Interest Income: Loans $6,549 $6,303 $19,126 $18,707 Investment securities 866 1,521 2,962 4,409 Deposits with financial institutions 23 90 130 250 Dividends on FHLB stock 104 122 326 357 ------ ------ ------- ------- Total interest income 7,542 8,036 22,544 23,723 ------ ------ ------- ------- Interest Expense: Deposits 1,593 1,904 4,881 5,883 Borrowings 2,042 1,923 6,021 5,776 ------ ------ ------- ------- Total interest expense 3,635 3,827 10,902 11,659 ------ ------ ------- ------- Net Interest Income 3,907 4,209 11,642 12,064 Provision for loan losses 189 83 623 163 ------ ------ ------- ------- Net Interest Income After Provision for Loan Losses 3,718 4,126 11,019 11,901 ------ ------ ------- ------- Other Income (Losses): Service charges on deposit accounts 228 191 636 541 Net realized and unrealized gains on sale of loans 75 665 738 1,087 Net realized gains on sale of securities available for sale - 165 (35) 165 Equity in losses of limited partnership (33) (39) (105) (117) Other 474 285 1,498 834 ------ ------ ------- ------- Total other income (losses) 744 1,267 2,732 2,510 ------ ------ ------- ------- Other Expenses: Salaries and employee benefits 1,819 1,685 5,263 4,866 Net occupancy expenses 200 170 613 482 Equipment expenses 211 171 691 507 Data processing expense 304 259 955 811 Professional fees 91 116 292 297 Mortgage servicing rights amortization 22 81 155 243 Advertising and business development 105 111 314 308 Goodwill and core deposit intangible amortization 23 26 71 78 Other 543 551 1,678 1,526 ------ ------ ------- ------- Total other expenses 3,318 3,170 10,032 9,118 ------ ------ ------- ------- Income before income taxes 1,144 2,223 3,719 5,293 Income taxes 306 780 941 1,798 ------ ------ ------- ------- Net income $ 838 $1,443 $ 2,778 $ 3,495 ====== ====== ======= ======= Basic earnings per share $ 0.21 $ 0.33 $ 0.70 $ 0.80 ====== ====== ======= ======= Diluted earnings per share $ 0.20 $ 0.32 $ 0.68 $ 0.77 ====== ====== ======= ======= Other Data: Interest rate spread 2.46% 2.77% 2.51% 2.66% Net interest margin 2.89% 3.42% 2.97% 3.33% Return on average assets 0.59% 1.13% 0.67% 0.93% Return on average equity 4.25% 6.75% 4.67% 5.45%
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