SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

Quarterly Report under Section 13 or 15(d)

of The Securities Exchange Act of 1934

 

For the Quarter Ended March 31, 2003 Commission filenumber 0-16213

| GBC BANCORP
 
(Exact name of registrant as specified in its charter)

California
95-3586596
(State or other jurisdiction of (I.R.S. EmployerIdentification No.)

incorporation or organization)

800 West 6th Street, Los Angeles,
California 90017
(Address of principal executive offices) (Zip code)

Registrant's telephone number, including area code 213/972-4174
Former name address and former fiscal year, if changed      since last report.
 
Indicate by check mark whether the registrant (1) has filedall reports required to be filed by Section 13 or 15(d) of the SecuritiesExchange Act of 1934 during the preceding 12 months (or for such shorter periodthat the registrant was required to file such reports), and (2) has been subjectto such filing requirements for the past 90 days.

Yes X No _______
Indicate by check mark whether the registrant is anaccelerated filer (as defined in Rule 12 b-2 of the Exchange Act.)

Yes X No _______
Indicate the number of shares outstanding of each of theissuer's classes of common stock, as of the close of the period covered by thisreport.

Common stock, no par value, 11,557,562 shares issued andoutstanding as of March 31, 2003.

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

 

PART I -
FINANCIAL INFORMATION      .............................................................
3
Item 1.
Financial Statements      ..............................................................................
4
Item 2.
Management's Discussion and Analysis of Financial      Condition and Results of Operations      .........................................................................................
       16
Item 3.
Qualitative and Quantitative Disclosure about Market      Risk ......................
37
Item 4.
Controls and Procedures      .......................................................................
39
PART II -
OTHER INFORMATION      ......................................................................
41
Item 1.
Legal Proceedings      ..................................................................................
42
Item 2.
Changes In Securities      .............................................................................
42
Item 3.
Default Upon Senior Securities      ..............................................................
42
Item 4.
Submission Of Matters To A Vote Of Securities Holders      .....................
42
Item 5.
Other Information      ...................................................................................
42
Item 6.
Exhibits And Reports On Form 8-K      ......................................................
42
SIGNATURES      .......................................................................................
43
Certifications      ..........................................................................................
44
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART I - FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

<TABLE>

<CAPTION>

GBC Bancorp and Subsidiaries
Consolidated Balance Sheets
                                                                               (Unaudited)
March 31,
December 31,
(Dollars In Thousands)
2003
 
2002
ASSETS


<c>
<c>
Cash and Due From Banks
$ 39,326
$ 46,889
Federal Funds Sold and Securities Purchased Under Agreements to Resell
146,500
181,000
Cash and Cash Equivalents
185,826
227,889
Securities Available-for-Sale at Fair Value (Amortized Cost of      $1,028,045 at
March 31, 2003 and $1,050,600 at December 31, 2002 , respectively)
1,051,092
1,075,697
Trading Securities
1
1
Loans and Leases
1,260,672
1,198,628
Less: Allowance for Credit Losses
(27,635)
(25,534)
Deferred Loan Fees
(6,106)
(6,595)
Loans and Leases, net
1,226,931
1,166,499
Bank Premises and Equipment, net
5,967
6,286
Due From Customers on Acceptances
9,020
6,525
Real Estate Held for Investment
1,463
1,484
Other Investments
6,821
7,509
Accrued Interest Receivable and Other Assets
20,060
18,854
Total Assets
$ 2,507,181
$ 2,510,744
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Demand
$ 250,056
$ 251,197
Interest Bearing Demand
534,262
543,969
Savings
94,795
87,540
Time Deposits of $100,000 or More
883,377
879,494
Other Time Deposits
151,072
141,943
Total Deposits
1,913,562
1,904,143
Federal Funds Purchased and Securities Sold Under Repurchase
Agreements
4,500
-
Borrowings from the Federal Home Loan Bank
297,400
322,400
Subordinated Debt
39,432
39,400
Acceptances Outstanding
9,020
6,525
Liability on Securities Awaiting Settlement
-
5,157
Accrued Expenses and Other Liabilities
37,431
29,018
Total Liabilities
2,301,345
2,306,643
Stockholders' Equity
Common Stock, No Par or Stated Value;
40,000,000 Shares Authorized; 11,557,562 shares (net of 79,001
shares held in trust) at March 31, 2003 and 11,540,762 shares (net of      79,001
shares held in trust) at December 31, 2002
73,265
72,932
Retained Earnings
115,498
112,774
Accumulated Other Comprehensive Income
14,970
16,292
Deferred Compensation
2,103
2,103
Total Stockholders' Equity
205,836
204,101
Total Liabilities and Stockholders' Equity
$ 2,507,181
$ 2,510,744
See Accompanying Notes to Unaudited Consolidated Financial Statements
</TABLE>

<TABLE>

<CAPTION>

 

GBC Bancorp and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended
March 31,
(In Thousands, Except Per Share and Share Data)
 
2003
 
2002


<c>
<c>
INTEREST INCOME
Loans and Leases, Including Fees
$ 19,729
$ 19,825
Securities Available-for-Sale
11,084
16,917
Federal Funds Sold and Securities
Purchased under Agreements to Resell
489
392
Other
3
3
Total Interest Income
31,305
37,137
INTEREST EXPENSE
Interest Bearing Demand
1,240
1,843
Savings
159
291
Time Deposits of $100,000 or More
5,676
6,497
Other Time Deposits
756
941
Federal Funds Purchased and Securities
Sold under Repurchase Agreements
2
3
Borrowings from the Federal Home Loan Bank
3,080
2,649
Subordinated Debt
871
871
Total Interest Expense
11,784
13,095
Net Interest Income
19,521
24,042
Provision for Credit Losses
4,618
18,514
Net Interest Income after Provision
 
 
for Credit Losses
14,903
5,528
NON-INTEREST INCOME
Service Charges and Commissions
1,730
1,774
Trading Account Revenue
-
19
Expense from Other Investments
(783)
(3,363)
Other
30
67
Total Non-Interest Income
977
(1,503)
NON-INTEREST EXPENSE
Salaries and Employee Benefits
5,244
5,032
Occupancy Expense
1,010
960
Furniture and Equipment Expense
639
900
Net Other Real Estate Owned Income
-
(25)
Other
2,500
1,645
Change of Fair Value of Derivatives
257
96
Total Non-interest Expense
9,650
8,608
Income/(Loss) before Income Taxes
6,230
(4,583)
Provision/(Benefit) for Income Taxes
2,110
(1,677)
Net Income/(Loss)
4,120
(2,906)
Net Income/(Loss)
Basic
$ 0.35
$ (0.25)
Diluted
0.35
(0.25)
Weighted Average Basic Shares Outstanding
11,627,801
11,589,833
Weighted Average Diluted Shares Outstanding
11,641,486
11,589,833
See Accompanying Notes to Unaudited Consolidated Financial Statements
 

</TABLE>

<TABLE>

<CAPTION>

GBC Bancorp and      Subidiaries
Consolidated Statements of Changes in Stockholder's      Equity and Comprehensive Income
(Unaudited)
(In Thousands, Except per Share Amounts)
Accumulated
Other
Total
Common Stock
Retained
Deferred
Comprehensive
Comprehensive |
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