|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: HAMILTON BANCORP INC, DEF 14A, 2000-09-14 |
Next: VIRTUAL GAMING ENTERPRISES INC, 10KSB, 2000-09-14 |
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): July 1, 2000
COWLITZ BANCORPORATION
(Exact name of registrant as specified by its charter)
| Washington | 000-23881 | 91-1529841 | ||
| (State of jurisdiction of incorporation) |
(Commission file No.) | (I.R.S. Employer Identification No.) |
927 Commerce Avenue
Longview, Washington 98632
(Address of principal executive offices and zip code)
Registrant's telephone number, including area code: (360)423-9800
ITEM 7. Financial Statements and Exhibits
The response to this item is incorporated by reference to the Northern Bank of Commerce December 31, 1999 10-KSB and March 31, 2000 10-QSB.
Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.
| COWLITZ BANCORPORATION | ||||
| |
|
By: |
|
/s/ HARVE MENKENS Harve Menkens President |
Date: September 11, 2000
COWLITZ BANCORPORATION
PRO FORMA CONSOLIDATED BALANCE SHEET
(unaudited)
(in thousand of dollars, except number of shares)
| |
Historical |
|
|
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
March 31, 2000 Cowlitz |
March 31, 2000 Northern |
Pro forma Adjustment |
Pro forma Consolidated |
||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | 20,261 | $ | 7,979 | $ | (3,039 | )(2) | $ | 25,201 | |||||
| Investment securities | ||||||||||||||
| Investments available-for-Sale | 4,431 | 4,692 | — | 9,123 | ||||||||||
| Investments held-to-maturity | 4,564 | — | — | 4,564 | ||||||||||
| Loans, net | 167,519 | 36,228 | — | 203,747 | ||||||||||
| Loans held for sale | 5,283 | — | — | 5,283 | ||||||||||
| Premises and equipment | 5,802 | 116 | — | 5,918 | ||||||||||
| Federal Home Loan Bank stock | 3,147 | — | — | 3,147 | ||||||||||
| Intangible assets | 4,832 | — | 765 | (4) | 5,597 | |||||||||
| Other assets | 3,177 | 611 | 1,224 | (7) | 5,012 | |||||||||
| TOTAL ASSETS | $ | 219,016 | $ | 49,626 | $ | (1,050 | ) | $ | 267,592 | |||||
| LIABILITIES |
|
|||||||||||||
| Deposits | $ | 154,458 | $ | 47,457 | $ | — | $ | 201,915 | ||||||
| Borrowings | 31,761 | — | — | 31,761 | ||||||||||
| Other liabilities | 1,827 | 207 | 605 | (3) | 2,639 | |||||||||
| Total Liabilities | 188,046 | 47,664 | 605 | 236,315 | ||||||||||
| SHAREHOLDERS' EQUITY |
|
|||||||||||||
| Preferred stock | — | — | — | — | ||||||||||
| Common stock | 18,292 | 1,226 | (1,226 | )(6) | 18,292 | |||||||||
| Additional paid in capital | 1,538 | 2,961 | (2,961 | )(6) | 1,538 | |||||||||
| Retained earnings | 11,178 | (2,176 | ) | 2,176 | (6) | |||||||||
| 307 | (7) | 11,485 | ||||||||||||
| Net unrealized loss on investments available-for-sale | (38 | ) | (49 | ) | 49 | (6) | (38 | ) | ||||||
| Total shareholders' equity | 30,970 | 1,962 | (1,655 | ) | 31,277 | |||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 219,016 | $ | 49,626 | $ | (1,050 | ) | $ | 267,592 | |||||
2
COWLITZ BANCORPORATION
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(unaudited)
(in thousand of dollars, except number of shares and per share amounts)
| |
Historical |
|
|
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
March 31, 2000 |
Pro forma Adjustment |
Pro forma Consolidated |
||||||||||||
| |
Cowlitz |
Northern |
|||||||||||||
| INTEREST INCOME | |||||||||||||||
| Interest and fees on loans | $ | 4,840 | $ | 1,020 | $ | — | $ | 5,860 | |||||||
| Interest investment securities | 219 | 70 | — | 289 | |||||||||||
| Interest from other banks | 86 | 88 | — | 174 | |||||||||||
| Total interest income | 5,145 | 1,178 | — | 6,323 | |||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 1,286 | 488 | — | 1,774 | |||||||||||
| Borrowings | 385 | — | — | 385 | |||||||||||
| Total interest expense | 1,671 | 488 | — | 2,159 | |||||||||||
| Net interest income before provision for loan losses | 3,474 | 690 | — | 4,164 | |||||||||||
| PROVISION FOR LOAN LOSSES |
|
|
370 |
|
|
772 |
|
|
— |
|
|
1,142 |
|
||
| Net interest income after provision For loan losses |
3,104 | (82 | ) | — | 3,022 | ||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Service charge on deposit accounts | 171 | 19 | — | 190 | |||||||||||
| Other income | 363 | 17 | — | 380 | |||||||||||
| Net gain on sale of available-for-sale securities | 6 | — | — | 6 | |||||||||||
| Total noninterest income | 540 | 36 | — | 576 | |||||||||||
| NONINTEREST EXPENSE | |||||||||||||||
| Salaries and employee benefits | 2,581 | 362 | — | 2,943 | |||||||||||
| Net occupancy and equipment expense | 461 | 64 | — | 525 | |||||||||||
| Other operating expense | 892 | 431 | 13 | (5) | 1,336 | ||||||||||
| Total noninterest expense | 3,934 | 857 | 13 | 4,804 | |||||||||||
| Income before income taxes | (290 | ) | (903 | ) | (13 | ) | (1,206 | ) | |||||||
| INCOME TAXES |
|
|
(80 |
) |
|
— |
|
|
(307 |
) |
|
(387 |
) |
||
| Net income | (210 | ) | (903 | ) | 294 | (819 | ) | ||||||||
| BASIC EARNINGS PER SHARE | $ | 0.05 | $ | (0.74 | ) | $ | (0.20 | ) | |||||||
| DILUTED EARNINGS PER SHARE | $ | 0.05 | $ | (0.74 | ) | $ | (0.20 | ) | |||||||
| Average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Basic | 4,008,851 | 1,225,597 | 4,008,851 | ||||||||||||
| Diluted | 4,008,851 | 1,225,597 | 4,008,851 | ||||||||||||
3
COWLITZ BANCORPORATION
PRO FORMA CONSOLIDATED STATEMENT OF INCOME
(unaudited)
(in thousands of dollars, except number of shares and per share amounts)
| |
Historical |
|
|
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| |
December 31, 1999 |
Pro forma Adjustment |
Pro forma Consolidated |
||||||||||||
| |
Cowlitz |
Northern |
|||||||||||||
| INTEREST INCOME | |||||||||||||||
| Interest and fees on loans | $ | 15,344 | $ | 5,459 | $ | — | $ | 20,803 | |||||||
| Interest on investment securities | 902 | 146 | — | 1,048 | |||||||||||
| Interest from other banks | 473 | 409 | — | 882 | |||||||||||
| Total interest income | 16,719 | 6,014 | — | 22,733 | |||||||||||
| INTEREST EXPENSE | |||||||||||||||
| Deposits | 3,801 | 2,503 | — | 6,304 | |||||||||||
| Borrowings | 1,447 | — | — | 1,447 | |||||||||||
| Total interest expense | 5,248 | 2,503 | — | 7,751 | |||||||||||
| Net interest income before provision for loan losses | 11,471 | 3,511 | — | 14,982 | |||||||||||
| PROVISION FOR LOAN LOSSES |
|
|
1,349 |
|
|
1,529 |
|
|
— |
|
|
2,878 |
|
||
| Net interest income after provision For loan losses |
10,122 | 1,982 | — | 12,104 | |||||||||||
| NONINTEREST INCOME | |||||||||||||||
| Service charge on deposit accounts | 698 | 71 | — | 769 | |||||||||||
| Other income | 1,129 | 93 | — | 1,222 | |||||||||||
| Net gain on sale of available-for-sale securities | (2 | ) | — | — | (2 | ) | |||||||||
| Total noninterest income | 1,825 | 164 | — | 1,989 | |||||||||||
| NONINTEREST EXPENSE | |||||||||||||||
| Salaries and employee benefits | 6,088 | 1,441 | — | 7,529 | |||||||||||
| Net occupancy and equipment expense | 1,457 | 245 | — | 1,702 | |||||||||||
| Other operating expense | 3,326 | 1,898 | 51 | (5) | 5,275 | ||||||||||
| Total noninterest expense | 10,871 | 3,584 | 51 | 14,506 | |||||||||||
| Income before income taxes | 1,076 | (1,438 | ) | (51 | ) | (413 | ) | ||||||||
| INCOME TAXES |
|
|
420 |
|
|
382 |
|
|
(871 |
) |
|
(69 |
) |
||
| Net income | 656 | (1,820 | ) | 820 | (344 | ) | |||||||||
| BASIC EARNINGS PER SHARE | $ | 0.16 | $ | (1.49 | ) | $ | (0.09 | ) | |||||||
| DILUTED EARNINGS PER SHARE | $ | 0.16 | $ | (1.49 | ) | $ | (0.08 | ) | |||||||
| Average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
| Basic | 4,054,657 | 1,225,597 | 4,054,657 | ||||||||||||
| Diluted | 4,097,248 | 1,225,597 | 4,097,248 | ||||||||||||
4
Notes to the pro forma combined financial statements:
The unaudited pro forma combined balance sheet combines the historical consolidated balance sheets of Cowlitz Bancorp and Northern Bank as if the merger had become effective on March 31, 2000. The pro forma combined statements of income for the three months ended March 31, 2000 and the year ended December 31, 1999 combine the historical consolidated statements of income of Cowlitz Bancorp and Northern Bank as if the merger had become effective on January 1, 1999.
The merger is accounted for as a purchase. Under this method of accounting, assets and liabilities of Northern Bank are adjusted to their estimated fair value and combined with the recorded book values of the assets and liabilities of Cowlitz. Fair value adjustments are subject to update as additional information becomes available.
Under the terms of the merger agreement, the purchase price is up to $3.35 per share of Northern Bank stock, paid in cash. The purchase price is based on Northern Bank's shareholders' equity of $2,348,199. The purchase price is subject to adjustment based upon Northern Bank's shareholders' equity at the time of closing. If Northern Bank's shareholders' equity immediately prior to closing is less than $2,348,199, the merger consideration will be reduced by an amount equal to 1.75 times the difference between $2,348,199 and Northern Banks' shareholders' equity immediately prior to closing. The purchase price was based on closing equity on July 1, 2000 of $1,736,846 or $2.48 per Northern Bank share.
In addition to the cash, also included in the purchase price are other direct acquisition costs, such as legal, accounting and other professional fees. These costs are preliminarily expected to be approximately $605,000.
The unaudited pro forma combined financial statements assume the following with respect to the allocation of the purchase price and determination of goodwill and other intangibles:
| Cash paid | $ | 3,039,481 | ||
| Estimated direct costs | 605,000 | |||
| Total purchase price | 3,644,481 | |||
| Estimated fair value of Northern Bank's net assets at June 30, 2000 | 2,878,746 | |||
| Estimated goodwill | $ | 765,735 | ||
For purposes of the pro forma combined balance sheet, estimates have been made of the fair value of Northern Bank's assets and liabilities as of June 30, 2000.
Fair value adjustments are subject to update as additional information becomes available.
The goodwill recorded in connection with the merger will be amortized on a straight-line basis over a fifteen-year period.
For purposes of the pro forma combined financial statements, Northern Bank's equity has been eliminated.
5
The additional tax benefit in the pro forma income statement for the three month period ended March 31, 2000 represents Cowlitz Bancorp's utilization of Northern Banks pretax loss for that period.
A deferred tax asset of $734,000 has been added to the pro forma combined balance sheet. Northern Bank had provided a valuation allowance against these assets since it was uncertain if they would be able to utilize these assets in future periods. Cowlitz expects to be able to utilize these assets.
6
|
|