SEC Comment Letter for GBC BANCORP INC (CIK 0001026231) — Jul 6, 2005
GBC BANCORP INC (CIK 0001026231)
Date: July 6, 2005 · CIK: 0001026231 · Accession: 0000000000-05-034279
AI Filing Summary & Sentiment
Letter
Mail Stop 6010 July 6, 2005 Mr. Larry D. Keys President and Chief Executive Officer GBC Bancorp Inc. 165 Nash St. Lawrenceville, GA 30045
Re: GBC Bancorp Inc. Form 10-KSB for December 31, 2004 Filed March 23, 2005 Form 10-QSB for March 31, 2005 File No. 0-50265
Dear Mr. Keys:
We have reviewed your filings and have the following comments. Where indicated, we think you should re vise your document in response to these comments. If you disagree, we will consider your explanation as to why our comment is inapplicable or a revision is unnecessary. Please be as deta iled as necessary in your explanation. In some of our comments, we may ask you to provi de us with information so we may better understand your disclosure. After reviewing th is information, we may raise additional comments.
Please understand that the purpose of our re view process is to assist you in your compliance with the applicable disclosure requirements and to enhance the overall disclosure in your filing. We look forward to working with you in these respects. We welcome any questions you may have about our comments or any other aspect of our review. Feel free to call us at the telephone numbers listed at the end of this letter.
Cash Flow Statement
1. You have recognized significant gain s on loan sales however you do not present the amount of proceeds from loan sales. Revise the statement of cash flows to present separately 1) originations of, and 2) proceeds from sales of loans held for sale as operating cash flows. Revi se Form 10-K for December 31, 2004 and Form 10-Q for March 31, 2005. In addition, loan s held for sale should be reported separately on the balance sheet.
2. Explain why gains on sale of loans is not presented as a re conciling item when reconciling net income to cash provided by operations in the cash flow statement for the quarter ended March 31, 2005.
GBC Bancorp Inc. July 6, 2005 Page 2 of 3
3. The line item captioned “net other oper ating activities” in the 2004 cash flow statement is significant. Disaggregate th is line further. Explain significant changes in line items from year to year in MD&A.
Management’s Discussion and Analysis
4. MD&A does not explain the reasons for changes in financial statement line items but merely repeats the change reported in the financial statements. Revise MD&A to fully explain the underlying r easons, quantifying each separately, for each factor causing a change in for example, revenue and expense.
* * * * * * *
As appropriate, please amend your filing and respond to these comments within 10 business days or tell us when you will provid e us with a response. You may wish to provide us with marked copies of the amendm ent to expedite our review. Please furnish a cover letter with your amendment that keys your responses to our comments and provides any requested information. Detailed co ver letters greatly faci litate our review. Please understand that we may have addi tional comments after reviewing your amendment and responses to our comments.
We urge all persons who are responsi ble for the accuracy an d adequacy of the disclosure in the filing to be certain that the filing includes all in formation required under the Securities Exchange Act of 1934 and th at they have provided all information investors require for an informed invest ment decision. Since the company and its management are in possession of all facts re lating to a company’s disclosure, they are responsible for the accuracy and adequacy of the disclosures they have made.
In connection with responding to our comments, please provide, in writing, a statement from the company acknowledging that:
• the company is responsible for the adequacy and accuracy of the disclosure in the filing;
• staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and
• the company may not assert staff comme nts as a defense in any proceeding initiated by the Commission or any person under the federal secu rities laws of the United States.
In addition, please be advise d that the Division of Enfo rcement has access to all information you provide to the staff of the Divi sion of Corporation Fi nance in our review of your filing or in response to our comments on your filing.
GBC Bancorp Inc. July 6, 2005 Page 3 of 3
You may contact Lisa Vanjoske at 202-551-3614 or me at 202-551-3679 with questions regarding the comments.
Sincerely,
J i m B . R o s e n b e r g Senior Assistant Chief Accountant
Show Raw Text
Mail Stop 6010
July 6, 2005
Mr. Larry D. Keys
President and Chief Executive Officer
GBC Bancorp Inc.
165 Nash St.
Lawrenceville, GA 30045
Re: GBC Bancorp Inc.
Form 10-KSB for December 31, 2004
Filed March 23, 2005
Form 10-QSB for March 31, 2005
File No. 0-50265
Dear Mr. Keys:
We have reviewed your filings and have the following comments. Where
indicated, we think you should re vise your document in response to these comments. If
you disagree, we will consider your explanation as to why our comment is inapplicable or
a revision is unnecessary. Please be as deta iled as necessary in your explanation. In
some of our comments, we may ask you to provi de us with information so we may better
understand your disclosure. After reviewing th is information, we may raise additional
comments.
Please understand that the purpose of our re view process is to assist you in your
compliance with the applicable disclosure requirements and to enhance the overall
disclosure in your filing. We look forward to working with you in these respects. We
welcome any questions you may have about our comments or any other aspect of our
review. Feel free to call us at the telephone numbers listed at the end of this letter.
Cash Flow Statement
1. You have recognized significant gain s on loan sales however you do not present
the amount of proceeds from loan sales. Revise the statement of cash flows to present separately 1) originations of, and 2) proceeds from sales of loans held for
sale as operating cash flows. Revi se Form 10-K for December 31, 2004 and Form
10-Q for March 31, 2005. In addition, loan s held for sale should be reported
separately on the balance sheet.
2. Explain why gains on sale of loans is not presented as a re conciling item when
reconciling net income to cash provided by operations in the cash flow statement for the quarter ended March 31, 2005.
GBC Bancorp Inc.
July 6, 2005
Page 2 of 3
3. The line item captioned “net other oper ating activities” in the 2004 cash flow
statement is significant. Disaggregate th is line further. Explain significant
changes in line items from year to year in MD&A.
Management’s Discussion and Analysis
4. MD&A does not explain the reasons for changes in financial statement line items
but merely repeats the change reported in the financial statements. Revise
MD&A to fully explain the underlying r easons, quantifying each separately, for
each factor causing a change in for example, revenue and expense.
* * * * * * *
As appropriate, please amend your filing and respond to these comments within
10 business days or tell us when you will provid e us with a response. You may wish to
provide us with marked copies of the amendm ent to expedite our review. Please furnish
a cover letter with your amendment that keys your responses to our comments and
provides any requested information. Detailed co ver letters greatly faci litate our review.
Please understand that we may have addi tional comments after reviewing your
amendment and responses to our comments.
We urge all persons who are responsi ble for the accuracy an d adequacy of the
disclosure in the filing to be certain that the filing includes all in formation required under
the Securities Exchange Act of 1934 and th at they have provided all information
investors require for an informed invest ment decision. Since the company and its
management are in possession of all facts re lating to a company’s disclosure, they are
responsible for the accuracy and adequacy of the disclosures they have made.
In connection with responding to our comments, please provide, in writing, a
statement from the company acknowledging that:
• the company is responsible for the adequacy and accuracy of the disclosure in the
filing;
• staff comments or changes to disclosure in response to staff comments do not
foreclose the Commission from taking any action with respect to the filing; and
• the company may not assert staff comme nts as a defense in any proceeding
initiated by the Commission or any person under the federal secu rities laws of the
United States.
In addition, please be advise d that the Division of Enfo rcement has access to all
information you provide to the staff of the Divi sion of Corporation Fi nance in our review
of your filing or in response to our comments on your filing.
GBC Bancorp Inc.
July 6, 2005
Page 3 of 3
You may contact Lisa Vanjoske at 202-551-3614 or me at 202-551-3679 with questions regarding the comments.
Sincerely,
J i m B . R o s e n b e r g Senior Assistant Chief Accountant