-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, MLli0KXUvNk8xje5LD6Kgfzl4WVm8G8i8l6zZsQoY08EDTRN/Gta3x+BnOwPt57p nFL6ICFvvaBs7iF73et7XQ== 0000946275-97-000058.txt : 19970222 0000946275-97-000058.hdr.sgml : 19970222 ACCESSION NUMBER: 0000946275-97-000058 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970212 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MISSISSIPPI VIEW HOLDING CO CENTRAL INDEX KEY: 0000933404 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 411795363 STATE OF INCORPORATION: MN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-25546 FILM NUMBER: 97526294 BUSINESS ADDRESS: STREET 1: 35 E BROADWAY CITY: LITTLE FALLS STATE: MN ZIP: 56345 BUSINESS PHONE: 6126325461 MAIL ADDRESS: STREET 1: 35 EAST BROADWAY CITY: LITTLE FALLS STATE: MN ZIP: 56345-3093 10QSB 1 U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OF 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1996 OR [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT For the transition period from___________ to ___________ Commission File No. 0-25546 Mississippi View Holding Company ------------------------------------------------------ (Exact name of registrant as specified in its charter) Minnesota 41-1795363 - ------------------------------------------------------------------------------- (State or other jurisdiction (I.R.S. Employer of incorporation or jurisdiction) Identification No.) 35 East Broadway, Little Falls, Minnesota 56345-3093 ---------------------------------------------------- (address of principal executive offices) (320) 632-5461 ---------------------------------------------------- (Registrant's telephone number, including area code) Check whether the issuer (1) filed all reports required to be filed by Sections 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. Class: Common Stock, par value $.10 per share Outstanding shares at February 7, 1997: 818,743 MISSISSIPPI VIEW HOLDING COMPANY INDEX TO FORM 10-QSB Page ---- PART I. FINANCIAL INFORMATION ------ --------------------- Item 1. Financial Statements Consolidated statements of Financial Condition at December 31, 1996 (unaudited) and September 30, 1996 (audited) 2 Consolidated Statements of Income for the three months ended December 31, 1996 and 1995 (unaudited) 3 Consolidated Statements of Cash Flows for the three months ended December 31, 1996 and 1995 (unaudited) 4 Notes to Condensed Consolidated Financial Statements (unaudited) 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Non-Performing and Problem Assets 10 Capital Compliance 11 Liquidity Resources 12 Key Operating Ratios 13 PART II. OTHER INFORMATION ------- ----------------- Item 1. Legal Proceedings 14 Item 2. Changes in Securities 14 Item 3. Default Upon Senior Securities 14 Item 4. Submission of Matters to a Vote of Security Holders 14 Item 5. Other Information 14 Item 6. Exhibits and Reports on Form 8-K 14 SIGNATURES EXHIBITS Page 1 MISSISSIPPI VIEW HOLDING COMPANY AND SUBSIDIARY CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
December September 31, 30, 1996 1996 ----------- ---------- ASSETS (Unaudited) (Audited) ------ ----------- ---------- Cash and cash equivalents: Cash and due from banks .................................... $ 213,244 $ 317,777 Interest bearing deposits with banks ....................... 2,684,660 2,265,877 Securities available for sale, at fair value ................. 12,700,706 12,235,145 Securities held to maturity, at amortized cost ............... 8,330,501 9,294,092 FHLB Stock, at cost .......................................... 650,700 650,700 Loans held for sale .......................................... 57,966 178,663 Loans receivable, net of allowance for loan losses of $876,794 in 1997 and $877,094 in 1996 ...................... 43,799,358 43,070,281 Accrued interest receivable .................................. 476,879 450,327 Premises and equipment, net of depreciation .................. 780,160 788,846 Foreclosed real estate (net of allowance for losses of $15,700 for 1997 and $15,700 for 1996) .................. -- -- Deferred tax asset (net of valuation allowance) .............. -- 163,903 Other assets ................................................. 634,613 595,208 ------------ ------------ Total Assets ........................................... $ 70,328,787 $ 70,010,819 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Liabilities: Demand deposits ............................................ $ 4,257,629 $ 4,471,137 Savings deposits ........................................... 14,548,431 14,087,832 Time deposits .............................................. 37,536,245 37,972,225 ------------ ------------ Total deposits 56,342,305 56,531,194 Advances from borrowers for taxes and insurance ........... 50,376 138,530 Deferred tax liability .................................... 431,125 -- Other liabilities.......................................... 469,803 900,850 ------------ ------------ Total Liabilities....................................... 57,293,609 57,570,574 Commitments and contingencies Stockholders' equity: Serial Preferred Stock, no par value; 5,000,000 shares authorized, no shares issued ...................... -- -- Common Stock, $.10 par value, 10,000,000 shares authorized; 1,007,992 shares issued; 757,190 and 776,713 outstanding ...................................... 100,799 100,799 Paid in Capital............................................ 7,517,901 7,510,397 Treasury Stock (153,278 and 130,278 shares), at cost....... (1,811,689) (1,536,689) Retained Earnings, substantially restricted................ 7,289,911 7,116,646 Unearned ESOP shares (64,511 and 66,527 shares) at cost ... (552,378) (566,736) Unearned Management Stock Bonus Plan shares (33,013 and 34,474 shares), at cost................................... (371,703) (387,412) Net unrealized gain/(loss) on available for sale securities 862,337 203,240 ------------ ------------ Total Stockholders' Equity........................ 13,035,178 12,440,245 ------------ ------------ Total Liabilities and Stockholders' Equity ....... $ 70,328,787 $ 70,010,819 ============= ============
See Notes to consolidated financial statements. Page 2 MISSISSIPPI VIEW HOLDING COMPANY UNAUDITED CONSOLIDATED STATEMENTS OF INCOME For the Three Months Ended December 31, -------------------- 1996 1995 ------- -------- Interest Income: Loans receivable ..................... $ 942,489 $ 939,475 Securities available for sale ........ 162,547 74,096 Securities held to maturity .......... 187,901 293,227 ---------- ---------- Total interest income .............. 1,292,937 1,306,798 Interest Expense: Demand deposits ...................... 9,973 9,525 Savings deposits ..................... 94,223 77,033 Time deposits ........................ 530,099 535,522 ---------- ---------- Total interest expense ............. 634,295 622,080 ---------- ---------- Net interest income ................. 658,642 684,718 Provision for loan losses ........... -- -- ---------- ---------- Net interest income after provision for loan loss ....... 658,642 684,718 Noninterest Income: Other fees and service charges ...... 22,175 2,246 Gain on sale of loans ............... 2,246 59,897 Net gain on sale of real estate owned -- 1,186 Contingency recovery ................ -- 81,023 Other ............................... 13,096 14,267 ---------- ---------- Total noninterest income 37,517 158,619 Noninterest Expense: Compensation and employee benefits .. 225,574 230,904 Occupancy ........................... 21,933 19,716 Deposit insurance premium ........... 38,185 37,456 Data processing ..................... 21,402 18,788 Advertising ......................... 8,086 7,970 Real estate owned expense, net ...... 346 2,810 Other ............................... 123,294 94,266 ---------- ---------- Total noninterest expense ... 438,820 411,910 ---------- ---------- Income before income taxes ............ 257,339 431,427 Income tax expense .................... 84,074 173,819 ---------- ---------- Net income ............................ $ 173,265 $ 257,608 ========== ========== Dividends Declared Per Share .......... $ -- $ -- ========== ========== Primary Earnings Per Share ............ $ 0.22 $ 0.29 ========== ========== See Notes to consolidated financial statements. Page 3 MISSISSIPPI VIEW HOLDING COMPANY AND SUBSIDIARY UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended December 31, --------------------------- 1996 1995 ----------- ------------ OPERATING ACTIVITIES Interest received on loans and investments .................. $ 1,256,833 $ 1,264,318 Interest paid ............................................... (634,127) (622,300) Other fees, commissions, and interest received .............. 61,506 57,174 Cash paid to suppliers, employees and others ................ (781,205) (353,926) Contributions to charities .................................. (3,749) (1,579) Income taxes paid ........................................... -- (228,360) Loans originated for sale ................................... (170,400) (265,140) Proceeds from sale of loans ................................. 231,391 325,656 Net cash provided by (used in) operating activities .... (39,751) 175,843 INVESTING ACTIVITIES Loans originations and principal payment on loans, net ...... (677,459) (110,282) Proceeds from maturities of: Debt securities held to maturity .......................... 1,792,000 2,668,346 Securities available for sale ............................. 468,306 -- Mortgage-backed securities held to maturity ............... 159,990 214,794 Mortgage-backed securities available for sale ............. 164,554 1,837 Proceeds from sale of: Real estate ............................................... -- 1,186 Purchase of: Debt securities held to maturity .......................... (988,000) (693,000) Securities available for sale ............................. -- (1,037,498) Mortgage-backed securities held to maturity ............... -- (327,531) Equipment and property improvements ....................... (12,266) (1,504) Net cash provided by (used in) investing activities ....... 907,125 716,348 FINANCING ACTIVITIES Net increase (decrease) in demand accounts, passbook accounts and certificates of deposit accounts ..................... (189,058) (817,186) Net increase (decrease) in mortgage escrow funds ............ (88,154) (109,536) Acquisition of treasury stock ............................... (275,000) -- Net increase (decrease) in unearned MSBP shares ............. (912) (458,628) Net cash provided by (used in) financing activities ....... (553,124) (1,385,350) INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS .................. 314,250 (493,159) CASH AND CASH EQUIVALENTS - Beginning of year ..................... 2,583,654 2,837,070 CASH AND CASH EQUIVALENTS - End of period ......................... $ 2,897,904 $ 2,343,911
See Notes to consolidated financial statements. Page 4 MISSISSIPPI VIEW HOLDING COMPANY UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
For the Three Months Ended December 31, -------------------------- 1996 1995 ----------- ------------- RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Net Income ............................................................. $ 173,265 $ 257,608 Adjustments: Depreciation ......................................................... 20,951 20,943 Federal Home Loan Bank stock dividends ............................... -- (12,800) Non-cash dividends ................................................... (1,319) (1,286) ESOP fair value adjustment ........................................... 4,451 4,613 Amortization of ESOP compensation .................................... 14,359 23,016 Amortization of MSBP compensation .................................... 16,622 16,622 Tax benefit of MSBP vesting activities ............................... 3,052 -- Net amortization and accretion of premiums and discounts on securities 993 762 Net (gains) on sale of real estate owned ............................. -- (1,186) Net loan fees deferred and amortized ................................. 10,334 (4,077) Net mortgage loan servicing fees deferred and amortized .............. 363 (12,700) Contingency recovery ................................................. -- (81,023) (Increase) decrease in: Loans held for sale ............................................... 58,745 57,974 Accrued interest receivable ....................................... (26,552) (10,217) Tax refund receivable ............................................. (71,640) -- Deferred tax assets ............................................... 163,903 14,056 Other assets ...................................................... 31,873 14,339 Increase (decrease) in: Accrued interest payable ............................................. 168 (220) Accrued income taxes ................................................. (8,272) (73,210) Other liabilities .................................................... (431,047) (37,371) ---------- ---------- Net cash provided by operating activities ............................ $ (39,751) $ 175,843 ========== ========== SUPPLEMENTAL SCHEDULE OF NON CASH INVESTING AND FINANCING ACTIVITIES Refinancing of sales of real estate owned .............................. $ -- $ 13,800 Non cash dividends ..................................................... $ 1,319 $ 1,286 Federal Home Loan Bank stock dividend .................................. $ -- $ 12,800 Transfer of debt securities to available for sale from securities held to maturity .................................................... $ -- $2,449,446 Transfer of loans to held for sale from loans for portfolio ............ $ -- $2,135,339 Contingency Recovery ................................................... $ -- $ 81,023
See Notes to consolidated financial statements. Page 5 MISSISSIPPI VIEW HOLDING COMPANY AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 1996 (Unaudited) Note 1: PRINCIPLES OF CONSOLIDATION The unaudited consolidated financial statements as of and for the three month period ended December 31, 1996, include the accounts of Mississippi View Holding Company (the "Company") and its wholly owned subsidiary Community Federal Savings & Loan Association of Little Falls (the "Association"). All significant intercompany accounts and transactions have been eliminated in consolidation. Note 2: BASIS OF PRESENTATION General: The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and instructions per Form 10-QSB. Accordingly, they do not include all information and disclosures required by generally accepted accounting principles for complete financial statements. The accompanying consolidated financial statements do not purport to contain all the necessary financial disclosures required by generally accepted accounting principles that might otherwise be necessary in the circumstances and should be read with the fiscal 1996 consolidated financial statements and notes of Mississippi View Holding Company and Subsidiary included in their annual audit report for the year ended September 30, 1996. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentations have been included. The results of operations for the three month period ended December 31, 1996, are not necessarily indicative of the results that may be expected for the entire fiscal year or any other period. Reclassification: Certain items previously reported have been reclassified to conform with the current period's reporting format. Page 6 Management's Discussion and Analysis of Financial Condition for September 30, 1996 and December 31, 1996 General. Total assets of Mississippi View Holding Company, (the "Company") increased by $317,968 from September 30, 1996, to December 31, 1996. The asset growth was the net result of increased loans receivable of $608,380 and increased cash equivalents of $314,250 offset by reduced securities of $498,030 and reduced tax deferred assets of $163,903. Cash and Cash Equivalents. Cash and cash equivalents consisting of interest-bearing and noninterest bearing deposits, increased $314,250. Liquidity increased due to maturing security investments exceeding cash disbursements for loan originations and deposit withdrawals. Securities available for sale. Securities available for sale increased $465,561. Security maturities and principal payments reduced the portfolio by $971,667. This decrease was offset by an increase in the mark to market value of these securities of $1,437,228 of which $995,958 was due to an error in the recorded number of shares of stock of the Federal Home Loan Mortgage Corporation (FHLMC) owned by the Association. The additional shares issued in a previous 3-for-1 stock split were not recorded which resulted in the amount of stock owned being understated by 8,792 shares. The market value adjustment had no effect on net income or earnings per share but did have an effect on certain balance sheet items and their corresponding ratios. Any future increase or decrease in the market value of such securities will have a corresponding positive or negative effect on stockholders' equity. Securities held to maturity. Debt and mortgage-backed securities held to maturity decreased $963,591, or 10.37%, from $9,294,092 on September 30, 1996, to $8,330,501 on December 31, 1996. Net debt securities of $803,972 matured and mortgage-backed securities decreased $159,619 due to principal amortization. These funds were used to supplement increased lending activities and deposit withdrawals. Loans Held for Sale. Loans held for sale decreased $120,697 from $178,663 (3 loans) on September 30, 1996, to $57,966 (2 loans) on December 31, 1996. This decrease was the result of seasonal activity. Management's strategy is to sell in the secondary market lower-yielding fixed rate mortgage loans rather than maintaining them for portfolio. These loans are pre sold in the secondary market prior to origination. The balance is the amount sold, yet unfunded as of the period end. Loans Receivable, Net. Loans receivable increased $729,077, or 1.69%, from $43,070,281 on September 30, 1996, to $43,799,358 on December 31, 1996. This increase was due to new loan originations exceeding principal amortizations and loan payoffs. Deferred Tax Asset. Deferred tax asset, net of valuation allowance, decreased $163,903 during this three month period as a result of a tax deferred liability being incurred due to the increase in the mark to market value of available for sale securities. Other Assets. Other assets increased $39,405, or 6.62%, from $595,208 as of September 30, 1996, to $634,613 as of December 31, 1996. This increase was a result of an accrued income tax refund of $71,640 offset by a reduced prepaid federal deposit insurance premium of $38,185. Page 7 Advances from Borrowers for Taxes and Insurance. Advances from borrowers for taxes and insurance decreased $88,154 from $138,530 on September 30, 1996, to $50,376 on December 31, 1996, due to the cyclical nature of these payments. Other Liabilities. Other liabilities decreased by $431,047, or 47.85%, from $900,850 on September 30, 1996, to $469,803 on December 31, 1996. Decreased liabilities resulted from reduced loan escrow balances for taxes and insurance of $21,842, payment of the Savings Association Insurance Fund (SAIF) assessment this quarter of $362,557, and payment of accrued compensation and bonus expenses after the fiscal year ended of $70,550. These liability decreases were offset by a five year pledge/commitment of $26,250, of which $20,250 is outstanding at December 31, 1996, to Unity Family Healthcare/St. Gabriel's Hospital, a local healthcare/hospital facility, for renovation and expansion. Stockholders' Equity. Stockholders' equity increased by $594,933, or 4.78%, from $12,440,245 on September 30, 1996, to $13,035,178 on December 31, 1996. This increase is the net effect of the following changes in equity: a paid in capital increase of $7,504 resulting from the fair market value adjustment to earned and committed to be released Employee Stock Ownership Plan ("ESOP") shares, net of taxes, and the permanent tax/book benefit resulting from the vesting of Management Stock Bonus Plan (MSBP) shares; an increase of $14,358 as a result of accounting for earned ESOP shares; an increase of $15,709 as a result of accounting for earned MSBP shares; an increase of $659,097 resulting from market valuation adjustments on available for sale securities (see also "Securities Available for Sale"); an increase of $173,265 from net operational income for the three month period just ended; and a decrease of $275,000 resulting from open market purchases of common stock of the Company. Comparison of Operating Results for the Three Months Ended December 31, 1996 and 1995 Net Income. Net income decreased $84,343, or 32.74%, for the three months ended December 31, 1996, when compared to the three months ended December 31, 1995. The reduced earnings was primarily due to decreased noninterest income primarily due to a gain on sale of loans and a contingency recovery recorded during the three months ended December 31, 1995, both of which were not present during the quarter ended December 31, 1996. Total Interest Income. Interest income decreased $13,861, or 1.061%, from $1,306,798 for the three month period ended December 31, 1995, to $1,292,937 for the three month period ended December 31, 1996. Interest income from loans receivable increased $3,014 due to the increase in the average loan balances along with lower rates paid on such balances over the period. Available for sale security investment income increased $88,451 due to the increased average rate of return of these investments. Held to maturity investment security income decreased $105,326 due to a decrease in the average balance of such securities as maturities were not reinvested in such investments. Total Interest Expense. Interest expense increased $12,215, or 1.96%, for the comparative three month periods ending December 31, 1995 and 1996. This increase was due to transfers from a lower rate passbook to a higher rate tiered passbook. Page 8 Net Interest Income. Net interest income decreased $26,076, or 3.81%, from $684,718 for the three months ended December 31, 1995, to $658,642 for the three month period ended December 31, 1996. This was primarily due to the decreased interest income from interest earning assets coupled with increased interest expense from higher deposit rates. Furthermore, the Company's interest rate spread decreased from 3.12% to 3.03% as the cost of interest-bearing deposits increased at a faster rate than yields earned on interest-earning assets. Provision for Loan Losses. The Association currently maintains an allowance for loan losses based upon management's periodic evaluation of known and inherent risks in the loan portfolio, the Association's past loss experience, adverse situations that may affect the borrowers' ability to repay loans, estimated value of the underlying collateral, and current and expected market conditions. Provisions for loan losses remained unchanged at $0.00 for the periods ended December 31, 1995 and 1996. Management's assessment of the loan portfolio and market conditions determined that no provisions needed to be recorded at this time. While management maintains its allowance for losses at a level which it considers to be adequate to provide for potential losses, there can be no assurances that further additions will not be made to the loss allowances and that such losses will not exceed the estimated amounts. Due to the size of the institution and the minimal amount of nonperforming loans the percentage of nonperforming loans to allowance for loan losses will seem high. Movement of even one loan into or out of nonperforming status per reporting period may result in a large percentage change due to the size of the portfolio. Noninterest Income. Noninterest income decreased by $121,102, or 76.35%, during the three month period ended December 31, 1996, as compared to the same period ended December 31, 1995. This decrease was primarily due to the net gain on the sale of real estate owned of $1,186, a gain on sale of loans of $57,651 and a contingency recovery of $81,023 recorded during the three months ended December 31, 1995, all of which were not present during the quarter in December 1996. In addition, other noninterest income reduced $1,711. The decreases were offset by an increase in other fees and service charges of $19,929. Noninterest Expense. Noninterest expense increased $26,910, or 6.53%, from $411,910 to $438,820 during the comparative three month periods ending December 31, 1995 and 1996, respectively. The increased noninterest expense was primarily the result of the Association's five year pledge/commitment of $26,250 to Unity Family Healthcare/St. Gabriel's Hospital, the entire amount was expensed during the period. Income Tax. Income tax expense decreased $84,343, or 32.74%, from $257,608 for the three month period ended December 31, 1995, to $173,265 for the three month period ended December 31, 1996, primarily due to decreased earnings. Page 9 Non-performing and Problem Assets Non-performing Assets. The following table sets forth information regarding non-accrual loans, real estate owned, and other repossessed assets, and loans 90 days or more delinquent but on which the Association was accruing interest at the date indicated. As of the date indicated, the Association had no loans categorized as trouble debt restructuring within the meaning of SFAS 15. At December 31, 1996 1995 ------ ------ (In Thousands) Loans accounted for on a non-accrual basis: Mortgage loans: Permanent loans secured by 1-4 dwelling units ....... $120 $ 2 All other mortgages .................................. -- -- Non-mortgage loans: Commercial business loans ........................... 3 -- Consumer loans ...................................... 62 -- ------ ------- Total .................................................. 185 2 Accruing loans which are contractually past due 90 days or more: Mortgage loans: Construction loans .................................. -- -- Permanent loans secured by 1-4 dwelling units ....... 30 37 All other mortgage loans ............................ -- -- Non-mortgage loans: Consumer loans ...................................... 45 11 ------ ------- Total .................................................. 75 48 ------ ------- Total non-accrual and accrual loans .................... 260 50 ------ ------- REO (net) .............................................. -- 13 Other non-performing assets ............................ -- -- ------ ------- Total non-performing assets ............................ $ 260 $ 63 ====== ======= Total non-accrual and accrual loans to net loans ....... 0.59% 0.11% Total non-accrual and accrual loans to total assets..... 0.37% 0.07% Total non-performing assets to total assets ............ 0.37% 0.09% Allowance for loan losses to non-performing loans ...... 336.52% 1778.98% Interest income that would have been recorded on loans accounted for on a nonaccrual basis under the original terms of such loans was $6,175 for the three month period ended December 31, 1996. No interest income on non-accrual loans was included in income for the three month period ended December 31, 1996. Page 10 Capital Compliance The following table sets forth the Association's capital position at December 31, 1996, as compared to the minimum regulatory capital requirements imposed on the Association by the Office of Thrift Supervision ("OTS") at that date. At December 31, 1996 ----------------------------- Percentage of Amount Adjusted Assets -------------- --------------- GAAP Capital ............................... $ 11,503,760 16.36% ============== ===== Tangible Capital: (1) Regulatory Requirement .................. $ 1,041,611 1.50% Actual Capital .......................... 10,638,190 15.32% -------------- ----- Excess ............................... $ 9,596,579 13.82% ============== ===== Core Capital: (1) Regulatory Requirement .................. $ 2,083,223 3.00% Actual Capital .......................... 10,638,190 15.32% -------------- ----- Excess ............................... $ 8,554,967 12.32% ============== ===== Risk-Based Capital: (2) Regulatory Requirement .................. $ 2,723,336 8.00% Actual Capital .......................... 11,066,733 32.51% Excess ............................... $ 8,343,397 24.51% ============== ===== (1) Regulatory capital reflects modifications from GAAP capital due to valuation adjustments for available for sale securities and unallowable mortgage servicing rights. (2) Based on risk weighted assets of $34,041,699. Page 11 Liquidity Resources The Association is required to maintain minimum levels of liquid assets as defined by the OTS regulations. The OTS minimum required liquidity ratio is 5% and the minimum short term liquidity is 1%. At December 31, 1996, the Association's total liquidity was 24.95%. Short term liquidity at December 31, 1996, was 16.15%. Both levels were well in excess of regulation requirements. The Association adjusts its liquidity levels in order to meet funding needs for deposit outflows, payment of real estate taxes from escrow accounts on mortgage loans, loan funding commitments, and repayment of borrowings, when applicable. The Association adjusts it liquidity level as appropriate to meet its asset/liability objectives. The primary sources of funds are deposits, amortization and prepayments of loans and mortgage-backed securities, maturity of investments, and funds provided from operations. As an alternative to supplement liquidity needs, the Association has the ability to borrow from the Federal Home Loan Bank of Des Moines. Scheduled loan amortization and maturing investment securities are a relatively predictable source of funds, however, deposit flow and loan prepayments are greatly influenced by, among other things, market interest rates, economic conditions and competition. The Association's liquidity, represented by cash, cash equivalents, securities (held to maturity and available for sale), is a product of its operating, investing, and financing activities. Impact of Inflation and Changing Prices The unaudited consolidated financial statements of the Company and notes thereto, presented elsewhere herein, have been prepared in accordance with GAAP, which requires the measurement of financial position and operating results in terms of historical dollars without considering the change in the relative purchasing power of money over time due to inflation. The impact of inflation is reflected in the increased cost of the Company's operations. Unlike most industrial companies, nearly all the assets and liabilities of the Company are financial. As a result, interest rates have a greater impact on the Company's performance than do the general levels of inflation. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services. Page 12 Key Operating Ratios The table below sets forth certain performance ratios of the Company for the periods indicated.
At or for the Three Months Ended December 31, --------------------------- 1996 (1) 1995 (1) ---------- ---------- Performance Ratios: Return on average assets (net income divided by average total assets) ........................................... 1.01% 1.49% Return on average equity (net income divided by average equity) ................................................. 5.65% 7.46% Average interest earning assets to average interest bearing liabilities ............................................. 123.03% 125.38% Net interest rate spread ................................... 3.03% 3.12% Net yield on average interest-earning assets ............... 3.90% 4.06% Net interest income after provision for loan losses to total other expenses .......................................... 150.09% 166.23% Capital Ratios: Book value per share (2) ................................... 15.25 13.60 Average equity to average assets ratio (average equity divided by average total assets) ........................ 17.80% 20.04% Stockholders' equity to assets at period end ............... 18.53% 20.07%
(1) The ratios for the three month period are annualized. (2) Based upon shares outstanding at December 31, 1996 and 1995, of 854,714 and 1,007,992 respectively. Page 13 PART II - OTHER INFORMATION Item 1. Legal Proceedings Not Applicable Item 2. Changes in Securities Not Applicable Item 3. Default Upon Senior Securities Not Applicable Item 4. Submission of Matters to a Vote of Security Holders Not Applicable Item 5. Other Information On January 22, 1997, the Company declared a cash dividend of $0.08 per share payable to stockholders of record on February 3, 1997. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits - Exhibit 11 - Statement re Computation of Per Share Earnings. - Exhibit 27 - Financial Data Schedule (only included in electronic filing) (b) Reports on Form 8-K - None Page 14 MISSISSIPPI VIEW HOLDING COMPANY 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. Mississippi View Holding Company Date: 02-10-97 By: /s/ Thomas J. Leiferman -------------- -------------------------- Thomas J. Leiferman President and Chief Executive Officer (Principal Executive Officer) Date: 02-10-97 By: /s/ Larry D. Hartwig -------------- --------------------------- Larry D. Hartwig Treasurer/Controller (Principal Accounting and Financial Officer) EX-11 2 EXHIBIT 11 MISSISSIPPI VIEW HOLDING COMPANY EXHIBIT 11 STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
For the Three Months Ended December 31, ------------------------- 1996 1995 --------- ---------- Net Income ....................................................... $ 173,265 $ 257,608 ========= ========= Weighted Average Shares Outstanding .............................. 800,695 894,545 Common stock equivalents due to dilutive effect of stock options . 5,054 432 --------- --------- Total weighted average common shares and equivalents outstanding ................................................... 805,749 894,977 ========= ========= Primary Earnings Per Share ....................................... $ 0.22 $ 0.29 ========= ========= Weighted Average Shares Outstanding .............................. 800,695 894,545 Additional dilutive shares using end of period market value versus average market value for period when utilizing the treasury stock method regarding stock options .......................... 5,250 -- --------- --------- Total weighted average common shares and equivalents outstanding for fully diluted computation .................... 805,945 894,545 ========= ========= Fully diluted earnings per share ................................. $ 0.21 $ 0.29 ========= =========
Earnings per share of common stock for the three month periods ended December 31, 1995 and 1996, have been determined by dividing net income for the period by the weighted average number of shares of common stock outstanding, net of unearned ESOP shares. EX-27 3 ARTICLE 9 FDS FOR FORM 10QSB
9 1000 3-MOS SEP-30-1997 DEC-31-1996 213 2,685 0 0 12,701 8,331 8,402 44,981 877 70,329 56,342 0 951 0 0 0 101 12,934 70,329 942 350 0 1,293 634 634 659 0 0 439 257 173 0 0 173 0.22 0.21 7.58 185 75 0 1,669 877 0 0 877 877 0 670
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