---

---

 

 

 

 

 

 

 

Item 1.	Financial Statements	3
	Consolidated Balance Sheets - March 31, 2005 and December 31, 2004	3
	Consolidated Statements of Income and Comprehensive Income for Three Months Ended March 31, 2005 and 2004	4
	Consolidated Statements of Cash Flows - Three Months Ended March 31, 2005 and 2004	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	14
Item 4.	Controls and Procedures
		15
PART II.  OTHER INFORMATION
Item 1.	Legal Proceedings	16
Item 2.	Unregistered Sale of Equity Securities and Use of Proceeds	16
Item 3.	Defaults Upon Senior Securities	16
Item 4.	Submission of Matters to a Vote of Security Holders	16
Item 6.	Exhibits	16
Signatures		17

 

Assets			2005			2004
Cash and due from banks		$	38,628		$	30,507
Interest-bearing deposits in banks			718			487
Federal funds sold			23,050			0
Securities available-for-sale			112,336			114,883
Securities held-to-maturity (fair value $19,874 and $21,330)			18,999			20,217
Restricted equity securities, at cost			2,810			2,469
Loans, net of unearned income			659,582			645,500
Less allowance for loan losses			9,621			9,170
Loans, net			649,961			636,330
Premises and equipment, net			18,483			18,330
Intangible assets, net			742			812
Goodwill			968			968
Other real estate			4,042			3,901
Other assets			14,652			14,474
Total assets		$	885,389		$	843,378
Liabilities, Redeemable Common Stock and Shareholders’ Equity
Liabilities: Deposits: Noninterest-bearing		$	129,009		$	119,097
Interest-bearing demand			206,927			197,927
Savings			41,787			39,043
Time, $100,000 and over			143,568			135,940
Other time			242,461			234,968
Total deposits			763,752			726,975
Other borrowings			30,703			25,794
Other liabilities			10,831			11,569
Total liabilities			805,286			764,338
Redeemable common stock held by ESOP, net of unearned ESOP shares related to ESOP debt guarantee of $487,971 and $585,218, at March 31, 2005 and December 31, 2004 respectively			19,023			18,925
Shareholders' equity Common stock, par value $1; 5,000,000 shares authorized; 2,211,330 and 2,211,330 shares issued at March 31, 2005 and December 31, 2004, respectively			2,211			2,211
Capital surplus			6,477			6,477
Retained earnings			55,364			53,536
Accumulated other comprehensive income			39			884
Less cost of 70,055 and 69,745 shares of treasury stock at March 31, 2005 and December 31, 2004, respectively			(3,011	)		(2,993	)
Total shareholders' equity			61,080			60,115
Total liabilities, redeemable common stock and shareholders' equity		$	885,389		$	843,378

 

		Three Months Ended March 31,
		2005			2004
Interest income: Loans, including fees		$	11,225		$	9,904
Taxable securities			654			616
Nontaxable securities			651			691
Interest-bearing deposits in other banks			4			2
Federal funds sold			94			35
Total interest income			12,628			11,248
Interest expense: Deposits			3,576			2,743
Other borrowings			269			209
Total interest expense			3,845			2,952
Net interest income			8,783			8,296
Provision for loan losses			713			1,129
Net interest income after Provision for loan losses			8,070			7,167
Other income: Service charges on deposit accounts			2,150			2,270
Other service charges, commissions and fees			625			530
Trust department fees			64			51
Gains on sale of loans			106			11
Nonbank subsidiary income			1,850			1,494
Security gains, net			(1	)		36
Other operating income			97			97
Total other income			4,891			4,489
Other expenses: Salaries and employee benefits			5,585			4,866
Equipment expense			936			814
Occupancy expense			638			524
Other operat