Grayson Bankshares 8K Results of Operations and Financial Condition | GSON 14 Apr 06

Exhibit 99.1

Consolidated Balance Sheets


		March 31, 2006	December 31, 2005
*Assets*
	Cash and due from banks	$ 10,271,637	$ 8,394,366
	Federal funds sold	16,031,415	21,914,513
	Investment securities	38,910,059	39,279,408
	Loans	226,782,804	219,769,122
	Less allowance for loan losses	2,576,866	2,678,055
	Net loans	224,205,938	217,091,067
	Properties and equipment	7,144,547	7,249,704
	Accrued interest receivable	2,240,468	2,177,475
	Other assets	8,487,804	8,058,684
	Total assets	$ 307,291,868	$ 304,165,217

*Liabilities*
	Demand deposits	37,047,963	36,242,161
	Interest-bearing demand deposits	22,290,460	22,975,642
	Savings deposits	44,561,943	46,569,058
	Large denomination time deposits	49,597,296	46,132,454
	Other time deposits	103,962,704	98,480,204
	Total deposits	257,460,366	250,399,519
	FHLB Advances	10,000,000	20,000,000
	Other borrowings	10,000,000	5,000,000
	Accrued interest payable	767,223	467,686
	Other liabilities	824,598	544,670
	Total liabilities	279,052,187	276,411,875

*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	26,231,338	25,736,698
	Accumulated other comprehensive income (loss)	(661,992)	(653,691)
	Total stockholders’ equity	28,239,681	27,753,342
	Total liabilities and stockholders’ equity	$ 307,291,868	$ 304,165,217

Consolidated Statements of Operations


		Three Months Ended March 31,
		2006	2005
*Interest income*
	Loans and fees on loans	$4,128,953	$3,494,437
	Interest on securities	430,017	400,669
	Federal funds sold	204,047	50,160
	Total interest income	4,763,017	3,945,266

*Interest expense*
	Deposits	1,597,468	1,026,048
	FHLB Advances	114,000	124,000
	Other Borrowings	126,000	-
	Total interest expense	1,837,468	1,150,048
	Net interest income	2,925,549	2,795,218

*Provision for loan losses*		112,500	105,000
	Net interest income after provision	2,813,049	2,690,218

*Other income*
	Service charges on deposit accounts	135,592	106,040
	Other income	269,268	179,196
	Total other income	404,860	285,236

*Other expenses*
	Salaries and employee benefits	1,258,512	1,214,972
	Occupancy expense	69,913	69,490
	Equipment expense	203,030	192,397
	Other expense	484,018	466,473
	Total other expense	2,015,473	1,943,332
	Net income before income taxes	1,202,436	1,032,122

*Income taxes*		364,000	280,000
	Net income	$ 838,436	$ 752,122
*Net income per share*		$ .49	$ .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.
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
Bryan L. Edwards	Sparta Town Manager

Member Federal Deposit Insurance Corporation

Grayson Bankshares (GSON) Inactive 8-KResults of Operations and Financial Condition