Attached files
Exhibit 99.1
January 31, 2012
Quarterly Report
Fourth Quarter 2011
We are pleased to report for the year ended December 31, 2011, earnings for
your Company were up 15.1% when compared to December 31, 2010. On a year to
date basis, we earned $ 5.7 million for the year ended December 31, 2011 as
compared to $4.9 million for the same period in 2010. For the fourth quarter
2011, our earnings at $1.2 million remained level, when compared to the same
period in 2010. Additionally, I am pleased to announce that our earnings per
share for the year increased from $ 1.81 per share on a fully diluted basis
to $ 2.09, which is a 15.5% increase.
Total assets at December 31, 2011 were $ 659.5 million compared to $ 658.9
million for 2010. Remaining virtually flat in asset growth is primarily the
result of the continued instability of our local, regional, and state
economies. Deposits were up 1% from the previous year as reflected by the
$542.9 million total at December 31, 2011 versus the $537.4 million figure at
December 31, 2010.
The state of the national and local economies is still in a relative period
of uncertainty, although we are starting to see some signs that the economy
may be showing slight improvement. As it relates to your bank, we have seen a
slight increase in commercial loan activity. It is too early to predict that
there is momentum behind this activity, but we do feel that there will be
loan growth opportunities in 2012. With the Federal Reserve Bank continuing
its efforts to keep short term interest rates low, we are experiencing
relatively strong refinancing in the residential real estate market. There
has been some increase in purchases but so far those have been minimal. The
unemployment situation, while showing some signs of improvement at the
national, state, and, local levels still does not indicate a robust recovery.
The stock market has been showing resilience. In the past, this has been an
indicator of the economy improving, and we hope that this continues to be the
case.
As has been stated in prior quarterly reports, we are continuing our efforts
to gain market share in those areas where troubled banks continue to
struggle. Our strategy has been to call on businesses and individuals who may
not be receiving the level of service and commitment that they have
experienced in the past, while at the same time providing Premier Customer
Service to our existing customer base to ensure that we can retain those very
important relationships.
The financial year of 2011 has been a nice improvement over 2010. One major
factor has been our ability to manage our balance sheet and cost of funds so
as to positively impact our net interest margin. Challenges and opportunities
will still be prevalent in 2012. We will continue to do everything possible
to meet those challenges so that we can accomplish what is in the long term
best interest of our shareholders, customers, and employees.
As always, we appreciate your support.
/s/Louis Prichard
Louis Prichard
President, CEO
UNAUDITED
CONSOLIDATED BALANCE SHEET
Percentage
12/31/2011 12/31/2010 Change
Assets
Cash & Due From Banks $ 17,128,480 $ 12,516,420 36.8%
Securities 180,419,376 176,866,771 2.0
Loans Held for Sale 625,400 - n/m
Loans 411,866,439 411,830,266 0.0
Reserve for Loan Losses 5,841,719 4,924,806 18.6
Net Loans 406,024,720 406,905,460 -0.2
Federal Funds Sold 528,000 5,108,000 -89.7
Other Assets 54,727,485 57,546,163 -4.9
Total Assets $ 659,453,461 $ 658,942,814 0.1%
Liabilities & Stockholders' Equity
Deposits
Demand $ 130,998,872 $ 105,519,332 24.1%
Savings & Interest Checking 209,326,962 191,837,038 9.1
Certificates of Deposit 202,598,045 240,044,257 -15.6
Total Deposits 542,923,879 537,400,627 1.0
Repurchase Agreements 3,223,526 5,079,100 -36.5
Other Borrowed Funds 38,843,229 52,523,477 -26.0
Other Liabilities 5,509,726 2,896,276 90.2
Total Liabilities 590,500,360 597,899,480 -1.2
Stockholders Equity 68,953,101 61,043,334 13.0
Total Liabilities & Stockholders Equity $ 659,453,461 $ 658,942,814 0.1%
CONSOLIDATED INCOME STATEMENT
Twelve Months Ending Three Months Ending
Percentage Percentage
12/31/2011 12/31/2010 Change 12/31/2011 12/31/2010 Change
Interest Income $ 29,889,329 $ 30,275,545 -1.3% $ 7,284,595 $ 7,351,335 -0.9%
Interest Expense 5,565,428 10,066,601 -44.7 1,161,756 2,054,150 -43.4
Net Interest Income 24,323,901 20,208,944 20.4 6,122,839 5,297,185 15.6
Loan Loss Provision 2,450,000 3,250,000 -24.6 550,000 1,300,000 -57.7
Net Interest Income After Provision 21,873,901 16,958,944 29.0 5,572,839 3,997,185 39.4
Other Income 9,347,106 10,566,430 -11.5 2,855,676 3,143,478 -9.2
Other Expenses 24,614,718 22,020,594 11.8 7,061,165 5,803,239 21.7
Income Before Taxes 6,606,289 5,504,780 20.0 1,367,350 1,337,424 2.2
Income Taxes 919,415 565,358 62.6 137,782 98,057 40.5
Net Income $ 5,686,874 $ 4,939,422 15.1 $ 1,229,568 $ 1,239,367 -0.8
Net Change in Unrealized Gain (loss)
on Securities 5,021,922 (2,587,821) 294.1 310,609 (4,267,755) 107.3
Comprehensive Income $ 10,708,796 $ 2,351,601 355.4% $ 1,540,177 $(3,028,388) -150.9%
Selected Ratios
Return on Average Assets 0.87% 0.71% 0.77% 0.74%
Return on Average Equity 8.74 7.84 7.12 7.61
Earnings Per Share $ 2.09 $ 1.81 $ 0.44 $ 0.46
Earnings Per Share - assuming dilution 2.09 1.81 0.44 0.46
Cash Dividends Per Share 0.88 0.84 0.22 0.21
Book Value Per Share 25.38 22.29
Market Price High Low Close
Fourth Quarter '11 $19.01 $17.75 $19.01
Third Quarter '11 $19.25 $16.00 $18.10
