HENDERSONVILLE, N.C., April 14 /PRNewswire-FirstCall/ -- Mountain 1st Bank & Trust Company (BULLETIN BOARD: MOBT) announced today that it is amending its previously filed Quarterly Reports on Form 10-Q for the second and third quarters of 2005 in order to correct its unaudited financial statements for each of those periods, and it is correcting its previously announced results of operations for the year ended December 31, 2005.
In connection with the audit of its financial statements, and discussions with its independent registered public accounting firm, Mountain 1st concluded that a one-time charge to record stock compensation expense of $2.2 million (net of income taxes) associated with its stock option plans would be necessary in the quarter ended June 30, 2005. Third quarter year to date net income and net income for the year ended December 31, 2005 will also reflect this charge. The Bank's 2005 Annual Report on Form 10-K being filed with the Federal Deposit Insurance Corporation will reflect a net loss for the year of $1.07 million rather than net income of $1.15 million as previously announced by the Bank.
The amended Quarterly Reports on Form 10-Q will reflect as stock compensation expense the increase in the fair market value of the Bank's common stock covered by stock options granted pursuant to the Bank's stock option plans between the grant dates of those options in June and July 2004 and the approval of the plans by the Bank's shareholders and the North Carolina Commissioner of Banks in June 2005. The options were granted at fair market value on their grant dates and were expected to require no recognition of compensation expense in the Bank's income statement. During the annual audit of its financial statements, however, the Bank concluded that technical components of Financial Accounting Standards Board Interpretation No. 44 further interpreted Accounting Principles Board Opinion No. 25 in a manner which required the appreciation in fair value of options between their grant dates and date of shareholders' approval of the plans to be treated as compensation expense.
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Mountain 1st Bank & Trust Company. Those statements include, but are not limited to statements regarding the company's plans, objectives, expectations and intentions and other statements that are not historical facts; as well as other statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects," "would be," and similar expressions. These statements are based upon the current beliefs and expectations of the management of Mountain 1st Bank & Trust Company and are subject to significant risks and uncertainties. Actual or future results or events may differ from those set forth in the forward- looking statements.
Mountain 1st Bank & Trust Company, one of the most rapidly growing community banks in the Southeast, is a state-chartered, non-member community bank headquartered in Hendersonville, N.C.
