Exhibit 99.1
GRAYSON BANKSHARES, INC.
Financial Report
March 31, 2005
113 West Main Street, Post Office Box 186
Independence, Virginia 24348
(276) 773-2811
East Independence
(276) 773-2821
Elk Creek
(276) 655-4011
Galax
(276) 238-2411
Troutdale
(276) 677-3722
Sparta
(336) 372-2811
Carroll
(276) 238-8112
Hillsville
(276) 728-2810
Message to Stockholders
Dear Stockholder,
It is our pleasure to present our 1st Quarter 2005 Financial Report to you.
Our total assets have increased from $270,214,881 to $273,552,959 during the quarter, representing an increase of 1.24%. Our total loans increased $6,959,972 during this period while deposits increased $2,543,170.
Our net income was $752,122 compared to $749,057 for the same period last year. Increases in loans led to an increase in net interest income which was offset by increases in operating expenses resulting from recent growth and branching activity.
Stockholders’ equity increased $293,808 for the quarter resulting in total stockholders’ equity of $26,470,854 at March 31, 2005. The book value of our stock is now $15.40 per share. We paid a first quarter dividend of 15 cents per share on March 31.
We would like to thank everyone who helped to make 2004 another successful year for your Bank. We look forward to continued growth and prosperity in the future.
As always, we appreciate your support, welcome your comments and the opportunity to serve you.
Sincerely,
Jacky K. Anderson
President and CEO
Consolidated Balance Sheets
March 31,
December 31,
2005
2004
Assets
Cash and due from banks
$
7,324,676
$
10,032,399
Federal funds sold
8,672,819
8,833,069
Investment securities
36,959,724
37,909,290
Loans
206,481,602
199,521,630
Less allowance for loan losses
2,686,858
2,609,759
Net loans
203,794,744
196,911,871
Properties and equipment
7,238,804
7,316,750
Accrued interest receivable
1,827,912
1,833,728
Other assets
7,734,280
7,377,774
Total assets
$
273,552,959
$
270,214,881
Liabilities
Demand deposits
32,351,023
31,569,179
Interest-bearing demand deposits
21,129,970
21,352,601
Savings deposits
49,066,941
51,489,408
Large denomination time deposits
39,619,243
36,668,682
Other time deposits
91,435,337
89,979,474
Total deposits
233,602,514
231,059,344
FHLB Advances
12,000,000
12,000,000
Accrued interest payable
536,333
253,652
Other liabilities
943,258
724,839
Total liabilities
247,082,105
244,037,835
Stockholders’ equity
Preferred stock; $25 par value; 500,000
shares authorized; none outstanding
-
-
Common stock; $1.25 par value; 5,000,000
shares authorized; 1,718,968 shares
issued and outstanding
2,148,710
2,148,710
Surplus
521,625
521,625
Retained earnings
24,291,566
23,797,289
Accumulated other comprehensive income (loss)
(491,047)
(290,578)
Total stockholders’ equity
26,470,854
26,177,046
Total liabilities and stockholders’ equity
$
273,552,959
$
270,214,881
Officers
Julian L. Givens
Chairman of the Board
Jacky K. Anderson
President & CEO
Dennis B. Gambill
Vice President
Brenda C. Smith
Secretary
Blake M. Edwards
Chief Financial Officer
Consolidated Statements of Operations
Three Months Ended March 31,
2005
2004
Interest income
Loans and fees on loans
$
3,494,437
$
3,075,099
Interest on securities
400,669
468,507
Interest expense
Deposits
1,026,048
1,036,532
FHLB Advances
124,000
115,268
Total interest expense
1,150,048
1,151,800
Net interest income
2,795,218
2,424,849
Provision for loan losses
105,000
90,000
Net interest income after provision
2,690,218
2,334,849
Other income
Service charges on deposit accounts
106,040
116,619
Other income
179,196
157,596
Total other income
285,236
274,215
Other expenses
Salaries and employee benefits
1,214,972
1,021,995
Occupancy expense
69,490
58,477
Equipment expense
192,397
155,113
Other expense
466,473
362,422
Total other expense
1,943,332
1,598,007
Net income before income taxes
1,032,122
1,011,057
Income taxes
280,000
262,000
Net income
$
752,122
$
749,057
Net income per share
$
.44
$
.44
Weighted average shares outstanding
1,718,968
1,718,968
Board of Directors
Julian L. Givens
Retired Physician
Carl J. Richardson
Retired – Grayson BankShares, Inc. and Grayson National Bank
Jacky K. Anderson
Grayson BankShares, Inc. and Grayson National Bank
Jean W. Lindsey
Walters’ Drug, Inc.
Fred B. Jones
Farmer
Dennis B. Gambill
Grayson BankShares, Inc. and Grayson National Bank
Jack E. Guynn, Jr.
Guynn Enterprises, Inc.
Charles T. Sturgill
Grayson County Clerk of Court
J. David Vaughan
Vaughan Furniture
Thomas M. Jackson, Jr.
Attorney
Member Federal Deposit Insurance Corporation
