Exhibit 99.1
FIRST NATIONAL BANC, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Unaudited
September 30, 2005 | December 31, 2004 | |||||
(Unaudited) | (Audited) | |||||
ASSETS | ||||||
Cash and due from banks | 6,890,849 | 10,668,009 | ||||
Federal funds sold | 36,064,000 | 2,403,000 | ||||
Cash and cash equivalents | 42,954,849 | 13,071,009 | ||||
Interest-bearing deposits in other banks | 548,342 | 528,401 | ||||
Securities available-for-sale | 19,302,225 | 17,578,770 | ||||
Loans | 200,820,277 | 220,311,351 | ||||
Less allowance for loan losses | (5,653,974 | ) | (4,172,000 | ) | ||
Loans, net | 195,166,303 | 216,139,351 | ||||
Premises and equipment, net | 8,018,742 | 8,242,844 | ||||
Foreclosed real estate, net | 663,711 | 1,335,390 | ||||
Other investments | 1,786,400 | 1,490,250 | ||||
Intangible assets | 2,347,098 | 2,474,741 | ||||
Other assets | 3,426,093 | 4,774,192 | ||||
Total assets | 274,213,763 | 265,634,948 | ||||
LIABILITIES | ||||||
Deposits: | ||||||
Noninterest-bearing | 31,525,086 | 23,811,209 | ||||
Interest-bearing | 208,298,112 | 205,818,012 | ||||
Total deposits | 239,823,198 | 229,629,221 | ||||
Federal Home Loan Bank advances | 9,000,000 | 10,750,000 | ||||
Subordinated debentures | 5,155,000 | 5,155,000 | ||||
Other liabilities | 2,786,418 | 1,960,849 | ||||
Total liabilities | 256,764,615 | 247,495,070 | ||||
SHAREHOLDERS’ EQUITY | ||||||
Common stock - par value $.001 per share; 9,000,000 shares authorized; 1,033,802 and 1,033,802 issued in 2005 and 2004, respectively | 1,033 | 1,033 | ||||
Preferred stock - par value $.001 per share 1,000,000 shares authorized; none issued | ||||||
Additional paid-in capital | 16,646,096 | 16,646,096 | ||||
Retained earnings | 1,753,904 | 2,392,060 | ||||
Accumulated other comprehensive loss | (120,083 | ) | (72,109 | ) | ||
18,280,950 | 18,967,080 | |||||
Treasury stock, at cost - 17,426 shares in 2005 and 17,326 shares in 2004 | (831,802 | ) | (827,202 | ) | ||
Total shareholders’ equity | 17,449,148 | 18,139,878 | ||||
Total liabilities and shareholders’ equity | 274,213,763 | 265,634,948 | ||||
FIRST NATIONAL BANC, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
INTEREST INCOME | ||||||||||||||||
Loans, including fees | $ | 3,882,524 | $ | 3,944,481 | $ | 12,075,716 | $ | 10,075,482 | ||||||||
Investment securities: | ||||||||||||||||
Taxable | 125,503 | 114,512 | 363,531 | 253,000 | ||||||||||||
Tax-exempt | 9,000 | 10,500 | 28,382 | 31,500 | ||||||||||||
Other interest | 257,089 | 13,846 | 344,971 | 35,981 | ||||||||||||
Total interest income | 4,274,116 | 4,083,339 | 12,812,600 | 10,395,963 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | 1,510,915 | 926,304 | 4,094,954 | 2,336,431 | ||||||||||||
Federal Home Loan Bank advances | 137,795 | 140,667 | 387,197 | 418,805 | ||||||||||||
Other borrowed funds | 88,229 | 74,930 | 252,328 | 143,671 | ||||||||||||
Total interest expense | 1,736,938 | 1,141,901 | 4,734,478 | 2,898,907 | ||||||||||||
NET INTEREST INCOME | 2,537,178 | 2,941,438 | 8,078,122 | 7,497,056 | ||||||||||||
PROVISION FOR LOAN LOSSES | (57,500 | ) | (49,000 | ) | (3,654,500 | ) | (314,658 | ) | ||||||||
NET INTEREST INCOME AFTER | ||||||||||||||||
PROVISION FOR LOAN LOSSES | 2,479,678 | 2,892,438 | 4,423,622 | 7,182,398 | ||||||||||||
NONINTEREST INCOME | ||||||||||||||||
Service charges on deposit accounts | 127,636 | 140,221 | 362,131 | 352,254 | ||||||||||||
Mortgage origination fees | 109,831 | 196,668 | 561,186 | 442,059 | ||||||||||||
Other service charges and fees | 93,019 | 209,030 | 239,340 | 568,637 | ||||||||||||
Other income | 346,488 | 77,791 | 580,687 | 198,893 | ||||||||||||
Total noninterest income | 676,974 | 623,710 | 1,743,344 | 1,561,843 | ||||||||||||
NONINTEREST EXPENSES | ||||||||||||||||
Salaries and employee benefits | 1,260,781 | 1,008,361 | 3,146,071 | 2,608,202 | ||||||||||||
Net occupancy expense | 137,776 | 131,092 | 409,281 | 336,953 | ||||||||||||
Other expenses | 1,175,541 | 1,471,057 | 3,424,414 | 3,032,114 | ||||||||||||
Total noninterest expense | 2,574,098 | 2,610,510 | 6,979,766 | 5,977,269 | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 582,554 | 905,638 | (812,800 | ) | 2,766,972 | |||||||||||
PROVISION FOR INCOME TAXES (BENEFITS) | 219,653 | 306,953 | (377,926 | ) | 1,037,190 | |||||||||||
NET INCOME (LOSS) | 362,901 | 598,685 | (434,874 | ) | 1,729,782 | |||||||||||
Earnings (loss) per share: | ||||||||||||||||
Basic | $ | 0.36 | $ | 0.59 | $ | (0.43 | ) | $ | 1.89 | |||||||
Diluted | $ | 0.35 | $ | 0.58 | $ | (0.43 | ) | $ | 1.86 | |||||||
FIRST NATIONAL BANC, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Nine Months Ended September 30, 2005 and 2004
Unaudited
Common Stock | Additional Capital | Retained Earnings | Accumulated Income (Loss) | Treasury Stock | Total | ||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||
BALANCE - DECEMBER 31, 2003 | 492,441 | $ | 492 | $ | 7,113,867 | $ | 4,881,686 | $ | 11,161 | $ | (217,110 | ) | $ | 11,790,096 | |||||||||||
Comprehensive income: | |||||||||||||||||||||||||
Net income | 1,729,782 | 1,729,782 | |||||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||
Net change in unrealized gain on securities available-for-sale, net tax effects | 8,704 | 8,704 | |||||||||||||||||||||||
Total comprehensive income | 1,738,486 | ||||||||||||||||||||||||
Exercise of options | 10,775 | 11 | 353,344 | (132,367 | ) | 220,988 | |||||||||||||||||||
Cash dividends | (424,658 | ) | (424,658 | ) | |||||||||||||||||||||
Purchase of treasury stock (11,332 shares) | (427,749 | ) | (427,749 | ) | |||||||||||||||||||||
Stock issuance in merger | 204,000 | 204 | 9,179,211 | 9,179,415 | |||||||||||||||||||||
Stock dividend effected in form of a stock split | 325,811 | 326 | (326 | ) | |||||||||||||||||||||
BALANCE - SEPTEMBER 30, 2004 | 1,033,027 | $ | 1,033 | $ | 16,646,096 | $ | 6,186,810 | $ | 19,865 | $ | (777,226 | ) | $ | 22,076,578 | |||||||||||
BALANCE - DECEMBER 31, 2004 | 1,033,802 | $ | 1,033 | $ | 16,646,096 | $ | 2,392,060 | $ | (72,109 | ) | $ | (827,202 | ) | $ | 18,139,878 | ||||||||||
Comprehensive income: | |||||||||||||||||||||||||
Net income | (434,874 | ) | (434,874 | ) | |||||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||||
Net change in unrealized gain on securities available-for-sale, net tax effects | (47,974 | ) | (47,974 | ) | |||||||||||||||||||||
Total comprehensive income | (482,848 | ) | |||||||||||||||||||||||
Cash dividends | (203,282 | ) | (203,282 | ) | |||||||||||||||||||||
Purchase of treasury stock (100 shares) | (4,600 | ) | (4,600 | ) | |||||||||||||||||||||
BALANCE - SEPTEMBER 30, 2005 | 1,033,802 | $ | 1,033 | $ | 16,646,096 | $ | 1,753,904 | $ | (120,083 | ) | $ | (831,802 | ) | $ | 17,449,148 | ||||||||||
FIRST NATIONAL BANC, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2005 AND 2004
2005 | 2004 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income | $ | (434,874 | ) | $ | 1,729,782 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 492,677 | 263,651 | ||||||
Net (gains) losses on sale of securities available for sale | — | 26,075 | ||||||
Provision for loan losses | 3,654,500 | 314,658 | ||||||
Net other operating activities | 3,504,437 | (262,676 | ) | |||||
Total adjustments | 7,651,614 | 341,708 | ||||||
Net cash provided by operating activities | 7,216,740 | 2,071,490 | ||||||
INVESTING ACTIVITIES | ||||||||
(Increase) decrease in interest-bearing deposits in banks | (19,941 | ) | 448,920 | |||||
Purchases of securities available for sale | (6,680,829 | ) | (12,321,631 | ) | ||||
Proceeds from maturities of securities available for sale | 4,836,477 | 6,516,410 | ||||||
Proceeds from sale of securities available for sale | — | 1,973,290 | ||||||
(Increase) decrease in other investments | (296,150 | ) | 371,242 | |||||
(Increase) decrease in loans, net | 16,684,171 | (32,424,828 | ) | |||||
Purchase of premises and equipment | (92,723 | ) | (331,552 | ) | ||||
Net cash received in bank acquisition | — | 4,475,712 | ||||||
Net cash provided by (used in) investing activities | 14,431,005 | (31,292,437 | ) | |||||
FINANCING ACTIVITIES | ||||||||
Increase (decrease) in deposits | 10,193,977 | 16,643,940 | ||||||
Increase (decrease) in federal funds purchased and securities sold under agreements to repurchase | — | 1,557,000 | ||||||
Increase (decrease) in Federal Home Loan Bank Advances | (1,750,000 | ) | 5,250,000 | |||||
Proceeds from issuance of subordinated debentures | — | 5,155,000 | ||||||
Dividends paid | (203,282 | ) | (424,658 | ) | ||||
Proceeds from exercise of stock options | — | 111,988 | ||||||
Purchase of treasury shares | (4,600 | ) | (427,749 | ) | ||||
Net cash provided by (used in) financing activities | 8,236,095 | 27,865,521 | ||||||
Net decrease in cash and due from banks | 29,883,840 | (1,355,426 | ) | |||||
Cash and due from banks at beginning of year | 13,071,009 | 9,620,226 | ||||||
Cash and due from banks at end of year | $ | 42,954,849 | $ | 8,264,800 | ||||
FIRST NATIONAL BANC, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1. | METHOD OF PRESENTATION |
The accompanying unaudited consolidated financial statements, which are for interim periods, do not include all disclosures provided in the annual consolidated financial statements. These financial statements and the notes thereto should be read in conjunction with the annual financial statements and the notes thereto for the year ended December 31, 2004 included in the Company’s annual report on Form 10-KSB. |
All material intercompany balances and transactions have been eliminated. |
In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (which are of a normal recurring nature) necessary for a fair presentation of the financial statements. The results of operations for the nine months ended September 30, 2005 are not necessarily indicative of the results to be expected for the full year. |
NOTE 2. | PENDING MERGER |
The directors of the Company entered into a definitive merger agreement with Ameris Bancorp, formerly ABC Bancorp, a multi-bank holding company with headquarters in Moultrie, Georgia, whereby Ameris Bancorp would acquire all the outstanding common stock of the Company in exchange for cash and common stock of Ameris Bancorp. The merger is subject to approval by the Company’s shareholders and certain regulatory authorities. Upon completion of the merger, First National Bank, St. Mary’s will be merged with and into The First Bank of Brunswick and will thereafter be operated as a branch of The First Bank of Brunswick. First National Bank, Orange Park, will be operated as a separate subsidiary. |
The merger was approved by the Company’s shareholders and certain regulatory authorities and was closed on December 16, 2005. |