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<PAGE>
U.S. 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 September 30, 1997
[ ] 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 Small Business Issuer as
Specified in Its Charter)
WASHINGTON 91-1602736
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization Identification Number)
501 ROOSEVELT AVENUE
ENUMCLAW, WASHINGTON 98022
(Address of Principal Executive Offices)
(360) 825-0100
(Issuer's Telephone Number, Including Area Code)
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
--- ---
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 706,296 (September 30,1997)
-----------------------------
Transitional Small Business Disclosure Format: Yes X No
--- ---
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following Consolidated Financial Statements are presented for the
Registrant, Mountain Bank Holding Company, and its wholly owned subsidiary, Mt.
Rainier National Bank.
PAGE:
1. Consolidated Balance Sheet for September 30, 1997, and December 31, 1996
2. Consolidated Statements of Income for the three months and the nine months
ended September 30, 1997 and 1996
3. Consolidated Statements of Cash Flows for the nine months ended September
30, 1997 and 1996.
4. Notes to consolidated financial statements.
PART II - OTHER INFORMATION
5. Item 6 Exhibits and Reports on Form 8-K
Signatures
<PAGE>
MOUNTAIN BANK HOLDING COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
<TABLE>
<CAPTION>
September 30, December 31,
1997 1996
(in thousands)
<S> <C> <C>
Assets
Cash and due from banks $ 3,185 $ 3,651
Federal funds sold 1,775 7,550
Securities available for sale 20,776 13,455
Loans held for sale 255 --
Loans 41,464 37,543
Less allowance for possible credit losses (500) (391)
-------- --------
Loans, net 40,964 37,152
-------- --------
Premises and equipment 2,180 2,206
Accrued interest receivable and other assets 713 547
-------- --------
Total assets $ 69,848 $ 64,561
======== ========
Liabilities
Deposits:
Non-interest bearing $ 8,980 $ 8,565
Interest bearing 47,178 43,442
Certificates of deposit of $100,000 and over 7,354 6,797
-------- --------
Total deposits 63,512 58,804
-------- --------
Long-term debt 45 46
Accrued interest and other liabilities 516 433
-------- --------
Total liabilities 64,073 59,283
-------- --------
Shareholders' Equity
Common stock (par value $1); authorized 5,000,000 shares;
issued and outstanding: 1997 - 706,296 shares; 1996 - 704,398 shares 706 704
Paid-in capital 3,986 3,969
Retained earnings 1,038 630
Net unrealized gain (loss) on securities
available for sale, net of tax 45 (25)
-------- --------
Total shareholders' equity 5,775 5,278
-------- --------
Total liabilities and shareholders' equity $ 69,848 $ 64,561
======== ========
</TABLE>
See notes to consolidated financial statements
Page 1
<PAGE>
MOUNTAIN BANK HOLDING COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
--------------------- ---------------------
1997 1996 1997 1996
(in thousands, (in thousands,
except per share data) except per share data)
<S> <C> <C> <C> <C>
Interest Income
Loans $ 1,064 $ 888 $ 3,008 $ 2,545
Securities available for sale 329 178 884 454
Federal funds sold 34 23 121 87
------- ------ ------- -------
Total interest income 1,427 1,089 4,013 3,086
Interest Expense
Deposits 555 422 1,599 1,249
Long term debt 1 -- 3 3
------- ------ ------- -------
Total 556 422 1,602 1,252
Net interest income 871 667 2,411 1,834
Provision for possible credit losses (24) (21) (124) (41)
------- ------ ------- -------
Net interest income after provision for possible
credit loss 847 646 2,287 1,793
------- ------ ------- -------
Non-interest income
Service charges on deposit accounts 89 91 267 266
Origination fees and gains on loans sold 60 66 157 178
Loss on securities sales (2) (10) (14) (11)
Other 18 31 83 85
------- ------ ------- -------
Total non-interest income 165 178 493 518
------- ------ ------- -------
Non-interest income
Salaries and employee benefits 358 340 1,067 983
Occupancy and equipment 100 118 321 334
Other 239 255 740 704
------- ------ ------- -------
Total non-interest expenses 697 713 2,128 2,021
------- ------ ------- -------
Income before income taxes 315 111 652 290
Income taxes (112) (43) (244) (113)
------- ------ ------- -------
Net income $ 203 $ 68 $ 408 $ 177
======= ====== ======= =======
Per share data:
Primary:
Average adjusted Common shares outstanding 706,296 704,398 705,452 661,034
Net income $ 0.29 $ 0.10 $ 0.58 $ 0.27
Fully diluted:
Average adjusted Common shares outstanding 753,375 762,997 752,531 719,633
Net income $ 0.27 $ 0.09 $ 0.54 $ 0.25
</TABLE>
See notes to consolidated financial statements
Page 2
<PAGE>
MOUNTAIN BANK HOLDING COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
-------------------------------
1997 1996
(in thousands)
<S> <C> <C>
Net income $ 408 $ 177
Adjustments to reconcile net income to net cash
provided by operating activities:
Provision for possible credit losses 109 21
Depreciation 203 192
Losses on sales of securities available for sale 14 11
Amortization, net or accretion (6) 6
Gain on loans sold (157) (60)
Originations of loans held for sale (6,446) (8,491)
Proceeds from sales of loans 6,348 8,783
Other (119) (74)
--------- --------
Net cash provided by (used in) operating activities 354 565
--------- --------
Cash Flows from Investing Activities
Net decrease in Federal funds sold 5,775 1,700
Purchase of securities available for sale (15,610) (9,290)
Proceeds from maturities and sales of securities available for sale 8,386 5,343
Increase in loans, net of principal collections (3,921) (4,655)
Additions to premises and equipment (177) (21)
--------- --------
Net cash used in investing activities (5,547) (6,923)
--------- --------
Cash Flows from Financing
Net increase in deposits 4,708 5,846
Repayment of long term debt
Common stock sold 19 7
--------- --------
Net cash provided by financing activities 4,727 5,853
--------- --------
Net decrease in cash $ (466) $ (505)
Cash and Due from Banks
Beginning of period 3,651 4,346
--------- --------
End of period $ 3,185 $ 3,841
========= ========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest Paid $ 1,062 $ 1,203
Interest Taxes Paid $ 235 $ 60
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Increase (decrease) in unrealized gain/(loss) on securities
available for sale, net of deferred tax 70 (81)
</TABLE>
See notes to consolidated financial statements
Page 3
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The consolidated financial statements include the accounts of Mountain Bank
Holding Company (the Company) and its wholly owned subsidiaries, Mt. Rainier
National Bank (the Bank), and Mountain Real Estate Holdings, Inc. The
consolidated financial statements have been prepared in conformity with
generally accepted accounting principles for interim financial information and
with instructions to Form 10-KSB and Rule 10-01 of Regulation S-X. Accordingly
they do not include all the information and footnotes required by generally
accepted accounting principles for complete financial statements. Significant
intercompany transactions and amounts have been eliminated.
In the opinion of management, all adjustments necessary for a fair
presentation are included. Reference is hereby made to the notes to
consolidated financial statements contained in the Company's Annual Report on
Form 10-KSB for the year ended December 31, 1996. The results of operations for
the nine months ended September 30, 1997, are not necessarily indicative of the
results which may be obtained for the full year ending December 31, 1997.
NOTE 2 - EARNINGS PER COMMON SHARE
Primary earnings per share is based on the average number of common shares
outstanding, assuming no dilution. Fully diluted earnings per common share is
computed assuming the exercise of stock options.
NOTE 3 - SUBSEQUENT EVENT
On September 29, 1997, the Company filed a registration statement on Form
SB-1 with the Securities and Exchange Commission for the sale of 100,000 shares
of common stock at $12.50 per share. The registration statement was declared
effective October 17, 1997, and the offering is still in process.
Page 4
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
27 Financial Data Schedule
(b) Reports on Form 8-K:
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MOUNTAIN BANK HOLDING COMPANY
(Registrant)
Dated: October 24, 1997 /s/ Roy T. Brooks
-----------------------------------
Roy T. Brooks, President and Chief
Executive Officer
Dated: October 24, 1997 /s/ Sheila Brumley
-----------------------------------
Sheila Brumley, Chief Financial
Officer
Page 5
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,185
<INT-BEARING-DEPOSITS> 1,775
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 20,776
<INVESTMENTS-CARRYING> 0
<INVESTMENTS-MARKET> 0
<LOANS> 41,464
<ALLOWANCE> 500
<TOTAL-ASSETS> 69,848
<DEPOSITS> 63,512
<SHORT-TERM> 0
<LIABILITIES-OTHER> 516
<LONG-TERM> 45
0
0
<COMMON> 706
<OTHER-SE> 5,069
<TOTAL-LIABILITIES-AND-EQUITY> 69,848
<INTEREST-LOAN> 3,008
<INTEREST-INVEST> 884
<INTEREST-OTHER> 121
<INTEREST-TOTAL> 4,013
<INTEREST-DEPOSIT> 1,599
<INTEREST-EXPENSE> 1,602
<INTEREST-INCOME-NET> 2,411
<LOAN-LOSSES> 124
<SECURITIES-GAINS> (14)
<EXPENSE-OTHER> 2,128
<INCOME-PRETAX> 652
<INCOME-PRE-EXTRAORDINARY> 652
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 408
<EPS-PRIMARY> 0.58
<EPS-DILUTED> 0.54
<YIELD-ACTUAL> 5.63
<LOANS-NON> 61
<LOANS-PAST> 12
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 5
<ALLOWANCE-OPEN> 391
<CHARGE-OFFS> 15
<RECOVERIES> 1
<ALLOWANCE-CLOSE> 500
<ALLOWANCE-DOMESTIC> 500
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
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