Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. INTERMOUNTAIN COMMUNITY BANCORP (1284506) 10-Q published on Aug 08, 2014 at 3:02 pm
Reporting Period: Jun 29, 2014
On April 2, 2014, the Board amended the 2012 Stock Option and Equity Compensation Plan to increase the number of common stock shares reserved for awards by 175,000 shares. The Board awarded 160,000 shares with vesting dependent upon completion of service and satisfaction of performance conditions over five years. Performance conditions will be determined by the compensation committee in February each year. An estimate for the expense related to the awards schedule to vest in year one is included in compensation expense. Because the performance conditions for awards scheduled to vest in years two through five have not yet been determined, no compensation expense or unearned compensation expense has been recognized for these awards.
Restricted stock transactions for the first six months of 2014 are summarized below. There were no restricted stock transactions in the first six months of 2013.
In June 2014, the FASB issued ASU No. 2014-11, "Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures". ASU 2014-11 changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The new guidance aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements. Going forward, these transactions would all be accounted for as secured borrowings. The ASU also requires new and expanded disclosures. This ASU is effective for the first interim or annual period beginning after December 15, 2014. The adoption of ASU No. 2014-11 is not expected to have a material impact on the Company's consolidated financial statements.
In June 2014, the FASB issued ASU No. 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period". ASU 2014-12 requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation - Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. The amendments in this ASU can be applied prospectively or retrospectively and are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015 with early adoption permitted. The Company is currently reviewing the requirements of ASU No. 2014-12, but does not expect the ASU to have a material impact on the Company's consolidated financial statements.
On July 23, 2014, the Company, jointly with Columbia Banking System, Inc., (“Columbia”), the holding company for Columbia State Bank, announced the signing of a definitive agreement and plan of merger (“Merger Agreement”) whereby the Company and Columbia intend to merge in a transaction valued as of the date of signing at approximately $121.5 million. Subject to the terms and conditions of the Merger Agreement, at the effective time of the merger, the Company’s shareholders will have the right to receive, at their election (but subject to customary proration and allocation procedures applicable to oversubscription and undersubscription for stock consideration), in respect of each share of Company common stock, cash, stock, or a unit consisting of a mix of (a)0.6426 of a share of Columbia common stock and (b)$2.2930 in cash, without interest, for consideration (the “Merger Consideration”). The aggregate Merger Consideration is expected to be approximately (a) 4.2 million shares of Columbia common
On July 23, 2014, the Company, jointly with Columbia Banking System, Inc., (“Columbia”), the holding company for Columbia State Bank, announced the signing of a definitive agreement and plan of merger (“Merger Agreement”) whereby the Company and Columbia intend to merge in a transaction valued as of the date of signing at approximately $121.5 million. See Note 11 to the Consolidated Financial Statements for more information on the transaction.
Overview. Intermountain recorded net income applicable to common stockholders of $2.3 million, or $0.34 per diluted share for the six months ended June 30, 2014, compared with net income of $2.5 million, or $0.39 per diluted share for the six months ended June 30, 2013. The reduction in net income for the period indicated over the comparable period last year resulted from decreases in interest and other income and a higher tax provision, which offset lower interest and other operating expenses. For the quarter ended June 30, 2014, Intermountain recorded net income applicable to common stockholders of $1.3 million, or $0.19 per diluted share, compared with net income of $1.0 million, or $0.16 per diluted share, and $1.5 million, or $0.23 per diluted share for the quarters ended March 31, 2014 and June 30, 2013, respectively. Higher net interest income, a lower loan loss provision and higher other income offset higher operating expenses to produce the improvement over first quarter 2014 results. Stabilizing net interest income and a lower loan loss provision in the second quarter of 2014 were offset by lower other income and a higher tax provision in the comparative results from the same quarter last year.