UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from ________ to ________
Commission file number 333-83851
Greenville First Bancshares, Inc.
-------------------------------------------
(Exact name of registrant as specified in its charter)
South Carolina 58-2459561
--------------------------- -------------------------------------
(State of Incorporation) (I.R.S. Employer Identification No.)
112 Haywood Road
Greenville, S.C. 29607
----------------------------- ---------------------
(Address of principal executive offices) (Zip Code)
864-679-9000
-------------------------------
(Telephone Number)
Not Applicable
-----------------------------------
(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 CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:
1,150,000 shares of common stock, $.01 par value per share, issued and
outstanding as of August 4, 2001
Transitional Small Business Disclosure Format (check one): YES NO X
-- --
GREENVILLE FIRST BANCSHARES, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
The financial statements of Greenville First Bancshares, Inc. and
Subsidiary are set forth in the following pages.
GREENVILLE FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
June 30, 2001 December 31, 2000
(Unaudited) (Audited)
Assets
Cash and due from bank $ 1,383,349 $ 931,372
Federal funds sold 2,238,608 3,920,000
Investments securities available for sale 13,524,756 9,048,718
Other investments, at cost 395,000 295,800
Loans 65,556,919 46,625,027
Less reserve for loan losses (850,000) (600,000)
--------------------- ---------------------
64,706,919 46,025,027
--------------------- ---------------------
Accrued interest receivable 701,439 541,820
Property and equipment 975,592 616,621
Other assets 34,720 48,830
--------------------- ---------------------
Total assets $ 83,960,383 $ 61,428,188
===================== =====================
Liabilities and Stockholders' Equity
Liabilities:
Deposits $ 73,063,266 $ 49,994,429
Checks outstanding 1,165,123
Accounts payable 2,113 9,068
Accrued expense 178,441 226,394
Accrued interest payable 702,459 558,194
--------------------- ---------------------
Total liabilities 74,557,004 51,953,208
--------------------- ---------------------
Commitments and Contingencies
Stockholders' Equity
Preferred stock, par value $.01 per share
10,000,000 shares authorized, no shares issued - -
Common Stock, par value $.01 per share
10,000,000 shares authorized 1,150,000 issued 11,500 11,500
Additional paid-in capital 10,635,200 10,635,200
Unrealized gain on securities available for sale 90,259 24,162
Retained deficit (1,333,580) (1,195,882)
--------------------- ---------------------
Total stockholders' equity 9,403,379 9,474,980
--------------------- ---------------------
Total liabilities and stockholders' equity $ 83,960,383 $ 61,428,188
===================== =====================
See Notes to Consolidated Financial Statements that are an integral part of
these statements.
GREENVILLE FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
For the Three For the Three Months ended
Months ended June June 30, 2000
30, 2001
Interest income
Investments $ 297,950 $ 189,069
Loans 1,214,829 452,958
------------------------ ------------------------
Total interest income 1,512,779 642,027
Interest expense 834,746 282,112
------------------------ ------------------------
Net interest income 678,033 359,915
Provision for loan loss 128,000 180,000
Other income 60,026 9,490
General & administrative expenses
Salaries and benefits 366,818 255,813
Professional fees 26,607 40,301
Marketing 29,571 10,176
Outside services 39,109 22,101
Occupancy 130,708 69,291
Telephone 4,861 3,902
Other 71,847 27,322
------------------------ ------------------------
Total general & administrative expenses 669,521 428,906
------------------------ ------------------------
Net loss before taxes 59,462 239,501
Provision for income tax benefits - 74,000
------------------------ ------------------------
Net loss $ 59,462 $ 165,501
======================== ========================
Basic loss per share $ .05 $ .14
Weighted average shares outstanding 1,150,000 1,150,000
See Notes to Consolidated Financial Statements that are in integral part of
these statements.
GREENVILLE FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
For the Six Months For the Six Months
ended June 30, 2001 ended June 30, 2000
Interest income
Investments $ 579,509 $ 380,727
Loans 2,345,805 597,257
------------------------ ------------------------
Total interest income 2,925,314 977,984
Interest expense 1,635,243 398,645
------------------------ ------------------------
Net interest income 1,290,071 579,339
Provision for loan loss 250,000 280,000
Other income 104,879 11,852
General & administrative expenses
Salaries and benefits 693,552 500,969
Professional fees 60,694 65,421
Marketing 51,375 12,340
Outside services 73,892 38,099
Occupancy 255,902 140,297
Telephone 10,323 9,863
Other 136,910 57,822
------------------------ ------------------------
Total general & administrative expenses 1,282,648 824,811
------------------------ ------------------------
Net loss before taxes 137,698 513,620
Provision for income tax benefits - 74,000
------------------------ ------------------------
Net loss $ 137,698 $ 439,620
======================== ========================
Basic loss per share $ .12 $ .38
Weighted average shares outstanding 1,150,000 1,150,000
See Notes to Consolidated Financial Statements that are in integral part of
these statements.
GREENVILLE FIRST BANCSHARES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the Six Months ended June 30, 2001
(Unaudited)
Accumulated
Other Total
Common Stock Additional Retained Comprehensive Shareholders
Shares Amount Paid-in Capital Deficit Gain Equity
------- ------ --------------- ------- ----- ------
Balance at December 31, 2000 1,150,000 $11,500 $10,635,200 $ (1,195,882) $ 24,162 $ 9,474,980
Net loss (137,698) (137,698)
Comprehensive gain (loss), net of tax:
Unrealized gain on
investments
held for sale 66,097 66,097
---------- -------- ----------- ------------- --------- -------------
Comprehensive gain (loss) 66,097 (71,601)
---------- -------- ----------- ------------- --------- -------------
Balance at June 30, 2001 1,150,000 $11,500 $10,635,200 $ (1,333,580) $ 90,259 $ 9,403,379
========= ======= =========== ============== ========= =============
For the Six Months ended June 30, 2000
(Unaudited)
Accumulated
Other Total
Common Stock Additional Retained Comprehensive Shareholders
Shares Amount Paid-in Capital Deficit Loss Equity
------- ------ --------------- ------- -------------- --------------
Balance at December 31, 1999 1,150,000 $11,500 $ 10,635,200 $ (534,329) $ - $ 10,112,371
Net loss (439,620) (439,620)
Comprehensive loss, net of tax:
Unrealized loss on
investments
held for sale (11,859) (11,859)
--------- ------- ------------- ----------- ------------ ----------------
Comprehensive loss (439,620) (11,859) (451,479)
--------- ------- ------------- ----------- ------------ ----------------
Balance at June 30, 2000 1,150,000 $11,500 $ 10,635,200 $ (973,949) $ (11,859) $ 9,660,892
========= ======= ============= =========== =========== ================
See Notes to Consolidated Financial Statements that are an integral part of
these statements.
GREENVILLE FIRST BANCSHARES, INC. AND SUBSIDIARY
STATEMENTS OF CASH FLOWS
For the Six For the Six
Months ended Months ended
June 30, 2001 June 30, 2000
Operating activities
Net loss $ (137,698) $ (439,620)
Adjustments to reconcile net loss to cash
provided by (used for) operating activities:
Provision for loan losses 250,000 280,000
Depreciation and other amortization 96,892 31,487
Accretion and amortization of securities
discounts and premium, net (40,809)
Increase in other assets, net (145,508) (157,179)
Increase (decrease) in other liabilities, net (500,089)
------------------ ---------------
Net cash provided by (used for) operating activities (477,212) 981,444
------------------ ---------------
Investing activities
Increase (decrease) in cash realized from:
Origination of loans, net (18,931,892) (25,248,752)
Purchase of property and equipment (455,863) (193,957)
Purchase of securities (10,154,200) (6,544,403)
Payments and maturity of securities
available for sale 5,720,915 8,489,310
----------------- ---------------
Net cash used for investing activities (23,821,040) (23,497,802)
----------------- ---------------
Financing activities
Increase in deposits, net 23,068,837 29,014,216
----------------- ---------------
Net cash provided by financing activities 23,068,837 29,014,216
----------------- ---------------
Net increase (decrease) in cash (1,229,415) 6,497,858
Cash and cash equivalents, beginning of period 4,851,372 1,465,856
----------------- ---------------
Cash and cash equivalents, end of period $ 3,621,957 $ 7,963,714
================= ===============
Supplemental information
Cash paid for
Interest paid $ 1,490,978 $ 273,965
================= ===============
Income taxes paid - -
================= ===============
Supplemental schedule of non-cash transaction
Unrealized gain (loss) on securities, net of income taxes $ 66,097 $ (11,859)
================= ===============
See Notes to Consolidated Financial Statements that are an integral part of
these statements.
GREENVILLE FIRST BANCSHARES AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1 - Nature of Business and Basis of Presentation
Business activity and organization
Greenville First Bancshares, Inc. (the "Company") is a South Carolina
corporation organized for the purpose of owning and controlling all of the
capital stock of Greenville First Bank (the "Bank"). The Bank is a national bank
organized under the laws of the United States located in Greenville County,
South Carolina. The Bank began operations on January 10, 2000.
Until January 10, 2000, the Company engaged in organizational and
pre-opening activities necessary to obtain regulatory approvals and to prepare
its subsidiary, the Bank, to commence business as a financial institution. The
Bank is primarily engaged in the business of accepting demand deposits and
savings insured by the Federal Deposit Insurance Corporation, and providing
commercial, consumer and mortgage loans to the general public.
Basis of Presentation
The accompanying financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB. Accordingly, they do not include all
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the six-month period
ended June 30, 2001 are not necessarily indicative of the results that may be
expected for the year ending December 31, 2001. For further information, refer
to the consolidated financial statements and footnotes thereto included in the
Company's Form 10-KSB (Registration Number 333-83851) as filed with and declared
effective by the Securities and Exchange Commission.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operation.
GENERAL
The following is a discussion of the Company's financial condition as
of June 30, 2001 and the results of operations for the three-month and six-month
periods ended June 30, 2001 and 2000. These comments should be read in
conjunction with the Company's condensed consolidated financial statements and
accompanying footnotes appearing in this report.
The following discussion contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, such as
statements relating to financial results and plans for future business
development activities. Such forward-looking statements are subject to risks,
uncertainties, and other factors, which could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. These statements appear in a number of places in this report and
include all statements that are not statements of historical fact regarding the
Company's intent, belief, or expectations. These forward-looking statements are
not guarantees of future performance and actual results may differ materially
from those projected in the forward-looking statements. Potential risks and
uncertainties include, but are not limited to, the Company's brief operating
history, the Company's ability to manage rapid growth, general economic
conditions, competition, interest rate sensitivity, and exposure to regulatory
and legislative changes. Additional risks are discussed in detail in the
Company's filings with the Securities and Exchange Commission, including the
"Risk Factors" section in the Company's Registration Statement on Form SB-2
(Registration Number 333-83851) as filed with and declared effective by the
Securities and Exchange Commission.
Until January 10, 2000, the Company's principal activities related to
its organization, the conducting of its initial public offering, the pursuit of
approvals from the OCC for its application to charter the Bank, the pursuit of
approvals from the FDIC for its application for insurance of the deposits of the
Bank, hiring the appropriate personnel and implementing operating procedures.
The company received approval from both the FDIC and the OCC on January 7, 2000.
The Bank opened for business on January 10, 2000.
The Company completed its stock offering on November 30, 1999, upon the
issuance of 1,150,000 shares for a total of $11.5 million. The Company initially
capitalized the Bank with $8.5 million of the proceeds from the stock offering.
On April 18, 2000, the Company increased its investment in the Bank by $1.0
million utilizing proceeds from the initial offering. The Company does not
currently anticipate raising additional capital.
FINANCIAL CONDITION
At June 30, 2001, the Company had total assets of $84.0 million,
consisting principally of $64.7 million in loans, $16.2 million in investments
and $1.4 million in cash and due from banks. Liabilities at June 30, 2001
totaled $74.6 million, consisting principally of $73.0 million in deposits. At
June 30, 2001, shareholders' equity was $9.4 million.
At June 30, 2001, the Bank's loan portfolio consisted primarily of
$31.5 million of commercial real estate loans, $13.9 million of commercial
business loans, and $19.9 million of
consumer and home equity loans. At June 30, 2001, there were no non-performing
loans. At June 30, 2001, the Bank's allowance for loan losses was $850 thousand.
Management believes that the reserve for loan losses is adequate to absorb
possible loan losses in the portfolio. Management bases its belief on its
consideration of a number of factors, including internal credit ratings and
assumptions about future events, which assumptions may or may not be accurate.
There can be no assurance that loan losses in future periods will not exceed the
allowance for loan losses or that additional allocations will not be required.
At June 30, 2001 the Bank had $73.1 million in deposits. The $73.1 million in
deposits consisted primarily of $6.3 million in personal checking, $5.3 million
in business checking, $41.3 million in certificates of deposit and $19.1 million
of money market accounts of which 59% are business accounts.
LIQUIDITY
The Company's primary sources of liquidity are a stable base of
deposits, scheduled repayments on the Company's loans, and interest on and
maturities of investments. All of the Company's securities have been classified
as available-for-sale. If necessary, the Company may choose to sell a portion of
the investment securities in connection with the management of interest
sensitivity gap or to manage liquidity. Management may also utilize cash and due
from banks and federal funds sold to meet liquidity needs. Additionally, the
Bank has a federal funds purchased line of credit with a correspondent bank in
the amount of $2.8 million, on which no borrowings have been drawn, that can be
utilized if needed. The Bank also has collateral that supports in excess of $4.5
million of advances from the Federal Home Loan Bank. Management believes that
the Company's liquidity and ability to manage assets will be sufficient to meet
the Company's cash requirements over the near future.
One measure of liquidity is the Bank's loan-to-total borrowed funds
ratio, which was at 88.6% at June 30, 2001. The Bank had commitments to fund
approximately $21.0 million in loans at June 30, 2001.
CAPITAL
The Bank currently maintains a level of capitalization substantially in
excess of the minimum capital requirements set by the regulatory agencies.
Despite anticipated asset growth, management expects its capital ratios to
continue to be adequate for the next 12 to 24 months. However, no assurances can
be given in this regard, as rapid growth, deterioration in loan quality, and
continued losses, or a combination of these factors, could change the Company's
capital position in a relatively short period of time.
As of June 30, 2001, there were no significant firm commitments
outstanding for capital expenditures. Beginning in January 2001, the Bank began
to lease its main office building. The lease is a twenty-year lease with the
monthly rent for the first year of $24 thousand. The lease provides for annual
lease rate escalations based on cost of living adjustments.
RESULTS OF OPERATIONS
Comparison of the three months ended June 30, 2001 and the three months ended
June 30, 2000
The Company's net loss for the three months ended June 30, 2001 was $59
thousand compared to a net loss of $166 thousand for the three-month periods
ended June 30, 2000. Included in the net losses are non-cash expenses for
provision for loan losses. The provision for loan losses for the 2001 period was
$128 thousand compared to $180 thousand for the second quarter of 2000. Net
interest income for the three months ended June 30, 2001 was $678 thousand
compared to only $360 thousand for the same period in 2000. Net interest income
continues to increase each quarter. This increase resulted primarily from growth
in both earning assets and interest bearing deposits. Interest income for the
three months ended June 30, 2001 was $1.5 million compared to $642 thousand for
the second quarter of 2000. Interest expense for the three months ended June 30,
2001 was $835 thousand compared to only $282 thousand for the three months ended
June 30, 2000. During the first six months of 2000 much of the loan and
investment activity was funded with the Company's capital.
Average loans and investments for the second quarter of 2001 were $58.5
million and $19.1 million, respectively. The average loans and investments for
the three months ended June 30, 2001 compared to the second quarter of 2000
increased $40.0 million and $7.1 million, respectively. The average yields on
loans and investments for the three months ended June 30, 2001 were 8.35% and
6.29%, respectively. The average yields on loans and investments for the three
months ended June 30, 2000 were 9.66% and 6.34%.
The average balance of deposits for the three months ended June 30,
2001 was $70.8 million, while the average balance for the second quarter of 2000
was $22.2 million. This represents a $48.6 million increase compared to the same
period in the year 2000. The weighted rate on deposits for the three months
ended June 30, 2001 was 5.00% and 5.12% for the second quarter of the year 2000.
The Company's net margin for the three months ended June 30, 2001 was
2.78% and 3.26% for the three months ended June 30, 2000. The lower net interest
margin in the second quarter of 2001 resulted from the bank being asset
sensitive to rate changes. The Federal Reserve lower rates 275 basis points in
the first six months of 2001. The Bank anticipates that net interest margin will
increase during the third and fourth quarter of 2001, when the Bank's
certificates of deposits renew at lower interest rates. The Bank's net yield on
earning assets was 3.49% for the three months ended June 30, 2001 compared to
4.69% for the three months ended June 30, 2000. The decrease relates primarily
to the fact that interest-bearing liabilities were 90.6% of earning assets in
the 2001 period compared to only 71.9% in the same period of 2000. The higher
percentage in 2001 represents the Company's ability to leverage its capital.
As a result of growth in interest earning assets and interest bearing
deposits, net interest income in the second quarter of 2001 increased $318
thousand compared to the same period in 2000. During this same period other
income increased $50 thousand and general and administrative expenses increased
only $241 thousand. The increase in other income relates primarily to higher
deposit fees and mortgage loan referral fees as a result of the Bank's larger
customer base.
The Bank's provision for loan loss decreased $58 thousand in the second
quarter of 2001 compared to the same period in 2000. The allowance for loan loss
as a percentage of loans was 1.29% at both December 31, 2000 and at June 30,
2001. At June 30, 2001, the allowance for loan losses was $850 thousand. The
Bank has not charged off any loans since commencing operations. There were no
non-accrual or non-performing loans at June 30, 2001. The provisions for loan
losses were made primarily as a result of management's assessment of general
loan loss risk as the Bank recorded loans.
The Bank incurred general and administrative expenses of $670 thousand
for the three months ended June 30, 2001 compared to $429 thousand for the same
period in 2000. The $241 thousand additional general and administrative expenses
resulted primarily from the move into the Bank's new main office building and
the additional staff hired to handle the current and anticipated future growth
in both loans and deposits. Salaries and benefits for the three months ended
June 30, 2001 were $367 thousand and represented 54.8% of the total expense.
Salaries and benefits were $255 thousand second three months of 2000. The other
significant expense in 2001 was $131 thousand for occupancy cost. This expense
increased $61 thousand when comparing the two quarters. The increase relates
primarily to the additional costs associated with the Bank's permanent main
office building compared to the lower cost of the temporary modular facility.
All other expense increased only $68 thousand dollars. This increase relates
primarily to additional marketing expenses and non-capitalizable costs in 2001
associated with the move into the new main office building.
No provision or benefit for income taxes was recorded in the second
quarter of 2001. A benefit of $74 thousand was recognized in the second quarter
of 2000.
RESULTS OF OPERATIONS
Comparison of the six months ended June 30, 2001 and the six months ended June
30, 2000
The Company's net loss for the six months ended June 30, 2001 was $138
thousand compared to a net loss of $440 thousand for the six-month periods ended
June 30, 2000. Included in the net losses are non-cash expenses for provision
for loan losses. The provision for loan losses for the 2001 period was $250
thousand compared to $280 thousand for the first six months of 2000. Net
interest income for the six months ended June 30, 2001 was $1.3 million compared
to only $579 thousand for the same period in 2000. Net interest income continues
to increase each quarter. This increase resulted primarily from growth in both
earning assets and interest bearing deposits. Interest income for the six months
ended June 30, 2001 was $2.9 million compared to $978 thousand for the second
quarter of 2000. Interest expense for the six months ended June 30, 2001 was
$1.6 million compared to only $398 thousand for the six months ended June 30,
2000. During the first six months of 2000 much of the loan and investment
activity was funded with the Company's capital.
Average loans and investments for the first six months of 2001 were
$55.0 million and $18.3 million, respectively. The average loans and investments
for the six months ended June 30, 2001 compared to the first six months of 2000
increased $44.5 million and $5.8 million, respectively. The average yields on
loans and investments for the six months ended June 30, 2001 were 8.60% and
6.39%, respectively. The average yields on loans and investments for the six
months ended June 30, 2000 were 9.56% and 6.10%.
The average balance of deposits for the six months ended June 30, 2001
was $65.6 million, while the average balance for the second quarter of 2000 was
$15.8 million. This represents a $49.8 million increase compared to the same
period in the year 2000. The weighted rate on deposits for the six months ended
June 30, 2001 was 5.16% and 5.05% for the same period in the year 2000.
The Company's net margin for the six months ended June 30, 2001 was
2.91% and 2.80% for the six months ended June 30, 2000. The lower net interest
margin in 2001 resulted from the bank being asset sensitive to rate changes. The
Federal Reserve lower rates 275 basis points in the first six months of 2001.
The Bank anticipates that net interest margin will increase during the third and
fourth quarter of 2001, when the Bank's certificates of deposits renew at lower
interest rates. The Bank's net yield on earning assets was 3.55% for the six
months ended June 30, 2001 compared to 4.64% for the six months ended June 30,
2000. The decrease relates primarily to the fact that interest-bearing
liabilities were 89.5% of earning assets in the 2001 period compared to only
63.2% in the same period of 2000. The higher percentage in 2001 represents the
Company's ability to leverage its capital.
As a result of growth in interest earning assets and interest bearing
deposits, net interest income in 2001 increased $711 thousand compared to the
same period in 2000. During this same period other income increased $93 thousand
and general and administrative expenses increased only $458 thousand. The
increase in other income relates primarily to higher deposit fees and mortgage
loan referral fees as a result of the Bank's larger customer base.
The Bank's provision for loan loss decreased $30 thousand in the 2001
period compared to the same period in 2000. The allowance for loan loss as a
percentage of loans was 1.29% at both December 31, 2000 and at June 30, 2001. At
June 30, 2001, the allowance for loan losses was $850 thousand. The Bank has not
charged off any loans since commencing operations. There were no non-accrual or
non-performing loans at June 30, 2001. The provisions for loan losses were made
primarily as a result of management's assessment of general loan loss risk as
the Bank recorded loans.
The Bank incurred general and administrative expenses of $1.3 million
for the six months ended June 30, 2001 compared to $825 thousand for the same
period in 2000. The $458 thousand additional general and administrative expenses
resulted primarily from the move into the Bank's new main office building and
the additional staff hired to handle the current and anticipated future growth
in both loans and deposits. Salaries and benefits for the six months ended June
30, 2001 were $694 thousand and represented 54.1% of the total expense. Salaries
and benefits were $501 thousand for the six months of 2000. The other
significant expense in 2001 was $256 thousand for occupancy cost. This expense
increased $116 thousand when comparing the two six-month periods. The increase
relates primarily to the additional costs associated with the Bank's permanent
main office building compared to the lower cost of the temporary modular
facility. All other expense increased only $150 thousand dollars. This increase
relates primarily to additional marketing expenses and non-capitalizable costs
in 2001 associated with the move into the new main office building.
No provision or benefit for income taxes was recorded in the first six
months of 2001. A benefit of $74 thousand was recognized in the second quarter
of 2000.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
There are no material pending legal proceedings to which the Company
is a party or of which any of their property is the subject.
Item 2. Changes in Securities
Not applicable
Item 3. Defaults Upon Senior Securities
Not applicable
Item 4. Submission of Matters to a Vote of Security Holders
The Company's Bylaws state that the Board of Directors shall be divided
into three classes with staggered terms, so that the terms of approximately
one-third of the board members expire at each annual meeting. The current Class
I directors are Mark A. Cothran, Rudolph G. Johnson, III, M.D., Keith J.
Marrero, and R. Arthur Seaver, Jr. The current Class II directors are Leighton
M. Cubbage, David G. Ellison, James B. Orders, and William B. Sturgis. The
current Class III directors are Andrew B. Cajka, Anne S. Ellefson, Fred Gilmer,
Jr. and Tecumseh Hooper, Jr. The class II directors were up for reelection at
this year's annual meeting held on June 8, 2001. Each of the existing Class II
directors were reelected at the annual meeting. The annual meeting of
shareholders was held on June 8, 2001. The Company received proxies representing
1,054,306 shares of common stock of the Company of which 1,053,306 shares voted
for the directors, no votes were withheld and 1,000 abstained. The terms of the
Class III directors will expire at the 2002 Annual Shareholders Meeting and the
terms of the Class I directors will expire at the 2003 Annual Shareholders
Meeting.
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
GREENVILLE FIRST BANCSHARES, INC.
Date: August 10, 2001 /s/ R. Arthur Seaver, Jr.
---------------------------------------
R. Arthur Seaver, Jr.
Chief Executive Officer
/s/ James M. Austin
---------------------------------------
James M. Austin, III
Chief Financial Officer