U.S. SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-Q
| x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
For the quarterly period ended March 31, 2005
| ¨ | Transition Report Under Section 13 or 15(d) of the Exchange Act |
For the transition period from to
Commission File Number : 0-28394
MOUNTAIN BANK HOLDING COMPANY
(Exact Name of Registrant as Specified in Its Charter)
| WASHINGTON | 91-1602736 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification Number) |
501 Roosevelt Avenue
Enumclaw, Washington 98022
(Address of Principal Executive Offices)
(360) 825-0100
(Issuer’s Telephone Number, Including Area Code)
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 by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act):
Yes ¨ No x
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 APRIL 15, 2005 | |
| Common Stock - no par value |
2,273,991 Shares |
PART I - Financial Information
PART II - Other Information
| 16 | ||
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
16 | |
| 17 | ||
| 17 | ||
| 17 | ||
| 17 | ||
| 17 | ||
MOUNTAIN BANK HOLDING COMPANY AND SUBSIDIARY
CONSOLIDATED CONDENSED BALANCE SHEETS
| March 31, 2005 |
December 31, 2004 |
|||||||
| (unaudited) | ||||||||
| (in thousands, except per share data) |
||||||||
| Assets |
||||||||
| Cash and due from banks |
$ | 2,176 | $ | 2,364 | ||||
| Interest bearing deposits at other financial institutions |
13,945 | 6,185 | ||||||
| Securities available for sale |
33,964 | 37,502 | ||||||
| Federal Home Loan Bank and Federal Reserve Bank stock, at cost |
734 | 734 | ||||||
| Loans held for sale |
355 | 529 | ||||||
| Loans |
119,268 | 120,403 | ||||||
| Allowance for credit losses |
1,430 | 1,376 | ||||||
| Net loans |
117,838 | 119,027 | ||||||
| Premises and equipment |
6,182 | 6,194 | ||||||
| Accrued interest receivable |
704 | 681 | ||||||
| Bank owned life insurance |
3,806 | 3,771 | ||||||
| Other assets |
839 | 658 | ||||||
| Total assets |
$ | 180,543 | $ | 177,645 | ||||
| Liabilities |
||||||||
| Deposits: |
||||||||
| Demand, non-interest bearing |
$ | 31,408 | $ | 28,984 | ||||
| Savings and interest-bearing demand |
74,120 | 74,300 | ||||||
| Time |
54,322 | 54,316 | ||||||
| Total deposits |
159,850 | 157,600 | ||||||
| Securities sold under agreements to repurchase |
526 | — | ||||||
| Accrued interest payable |
182 | 180 | ||||||
| Note payable |
31 | 32 | ||||||
| Executive retirement |
1,105 | 981 | ||||||
| Deferred compensation |
59 | 57 | ||||||
| Other liabilities |
295 | 227 | ||||||
| Total liabilities |
162,048 | 159,077 | ||||||
| Shareholders’ Equity |
||||||||
| Common stock (no par value); authorized 10,500,000 shares; issued and outstanding: 2005 - 2,273,991 shares; 2004 - 2,260,968 shares |
1,137 | 1,130 | ||||||
| Additional paid-in capital |
10,731 | 10,632 | ||||||
| Retained earnings |
6,990 | 6,909 | ||||||
| Accumulated other comprehensive income(loss) |
(363 | ) | (103 | ) | ||||
| Total shareholders’ equity |
18,495 | 18,568 | ||||||
| Total liabilities and shareholders’ equity |
$ | 180,543 | $ | 177,645 | ||||
1
MOUNTAIN BANK HOLDING COMPANY AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
| Three Months Ended March 31, |
||||||||
| 2005 |
2004 |
|||||||
| (in thousands, except per share data) |
||||||||
| Interest and Dividend Income |
||||||||
| Loans |
$ | 2,077 | $ | 1,836 | ||||
| Deposits in banks |
38 | 41 | ||||||
| Investment Income: |
||||||||
| Taxable |
295 | 250 | ||||||
| Tax-exempt |
2 | 2 | ||||||
| Dividends on stock |
— | 5 | ||||||
| Total interest and dividend income |
2,412 | 2,134 | ||||||
| Interest Expense |
||||||||
| Deposits |
520 | 451 | ||||||
| Note payable |
1 | 1 | ||||||
| Total interest expense |
521 | 452 | ||||||
| Net interest income |
1,891 | 1,682 | ||||||
| Provision for credit losses |
54 | 69 | ||||||
| Net interest income after provision for credit losses |
1,837 | 1,613 | ||||||
| Noninterest income |
||||||||
| Service charges on deposit accounts |
135 | 145 | ||||||
| Gains on mortgage loans sold |
109 | 46 | ||||||
| Gain on sale of securities available for sale-net |
— | 12 | ||||||
| Bank owned life insurance income |
36 | 41 | ||||||
| Other |
58 | 60 | ||||||
| Total noninterest income |
338 | 304 | ||||||
| Noninterest expense |
||||||||
| Salaries and employee benefits |
950 | 969 | ||||||
| Occupancy and equipment |
221 | 228 | ||||||
| Other |
391 | 404 | ||||||
| Total noninterest expenses |
1,562 | 1,601 | ||||||
| Income before income tax expense |
613 | 316 | ||||||
| Income tax expense |
(192 | ) | (93 | ) | ||||
| Net income |
$ | 421 | $ | 223 | ||||
| Comprehensive income(loss) |
$ | 161 | $ | 338 | ||||
| Earnings per share: |
||||||||
| Basic |
$ | 0.19 | $ | 0.10 | ||||
| Diluted |
$ | 0.18 | $ | 0.10 | ||||
| Average shares: |
||||||||
| Basic |
2,266,964 | 2,181,069 | ||||||
| Diluted |
2,334,172 | 2,254,009 | ||||||
See notes to consolidated condensed financial statements
2
MOUNTAIN BANK HOLDING COMPANY AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS’ EQUITY (Unaudited) (In thousands)
Balance Ended March 31, 2004, As Restated
| Common Stock |
Additional Capital |
Retained Earnings |
Accumulated Other Comprehensive Income(Loss) |
Total |
||||||||||||||
| Balance at December 31, 2003 |
$ | 1,088 | $ | 9,655 | $ | 5,711 | $ | 150 | $ | 16,604 | ||||||||
| Exercise of options, including tax benefit |
6 | 66 | — | — | 72 | |||||||||||||
| Payment of cash dividend ($.10 per share) |
— | — | (218 | ) | (218 | ) | ||||||||||||
| Comprehensive income: |
||||||||||||||||||
| Net income |
— | — | 223 | — | 223 | |||||||||||||
| Other comprehensive income, net of tax: |
||||||||||||||||||
| Change in fair value of securities, available for sale |
— | — | — | 115 | 115 | |||||||||||||
| Comprehensive Income |
— | — | — | — | 338 | |||||||||||||
| Balance Ended March 31, 2004 |
$ | 1,094 | $ | 9,721 | $ | 5,716 | $ | 265 | $ | 16,796 | ||||||||
| Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Income(Loss) |
Total |
||||||||||||||
| Balance at December 31, 2004 |
$ | 1,130 | $ | 10,632 | $ | 6,910 | $ | (103 | ) | $ | 18,569 | |||||||
| Exercise of options, including tax benefit |
6 | 74 | — | — | 80 | |||||||||||||
| Sale of common stock under employee stock purchase plan |
1 | 25 | — | — | 26 | |||||||||||||
| Payment of cash dividend ($.15 per share) |
— | — | (341 | ) | — | (341 | ) | |||||||||||
| Comprehensive income: |
||||||||||||||||||
| Net income |
— | — | 421 | — | 421 | |||||||||||||
| Other comprehensive income, net of tax: |
||||||||||||||||||
| Change in fair value of securities, available for sale |
— | — | — | (260 | ) | (260 | ) | |||||||||||
| Comprehensive Income |
— | — | — | — | 161 | |||||||||||||
| Balance Ended March 31, 2005 |
$ | 1,137 | $ | 10,731 | $ | 6,990 | $ | (363 | ) | $ | 18,495 | |||||||
See notes to consolidated condensed financial statements
3
MOUNTAIN BANK HOLDING COMPANY AND SUBSIDIARY
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
| Three Months Ended March 31, |
||||||||
| 2005 |
2004 |
|||||||
| (in thousands) | ||||||||
| Net income |
$ | 421 | $ | 223 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Provision for credit losses |
54 | 69 | ||||||
| Depreciation and amortization |
112 | 143 | ||||||
| Net amortization and accretion of bond premiums and discounts |
59 | |||||||