NOTES TO FINANCIAL STATEMENTS DATED MARCH 31, 1995
1)Summary of interim financial statement adjustments.
The accompanying statements reflect all adjustments
(all of which are normal and recurring in nature) which are, in
the opinion of management, necessary to present a fair statement
of the results for the interim periods presented. The financial
statements should be read in conjunction with the Consolidated
Financial Statements and related Notes included in the Bank's
1994 Annual Report.
MARCH 31, 1995
CARRYING MARKET
2)INVESTMENT SECURITIES: VALUE VALUE
a: U.S. Treasury and other
government agencies $64,274,708 $62,820,680
b: States of the U.S. and other
political subdivisions 14,390,108 14,760,746
c: Other securities 13,942,069 13,724,342
Total Securities $92,606,885 $91,305,768
March 31, December 31,
3)LOANS: 1995 1994
a: Commercial, agricultural
and other loans $41,216,434 $41,221,396
b: Real Estate - Construction 5,561,341 7,980,026
c: Real Estate - Mortgage 128,056,793 121,491,0
d: Installment loans 15,624,845 15,301,322
Total Loans $190,459,413 $185,993,806
4)CHANGES IN ALLOWANCE FOR POSSIBLE LOAN LOSSES:
March 31, March 31,
1995 1994
Balance, beginning January 1: $3,891,835 $3,369,387
Provision charged to income 240,000 240,000
Recoveries of amounts charged 31,964 22,508
Losses charged to provision 103,501 47,691
Balance, ending March 31 $4,060,298 $3,584,204
5)The aggregate dollar amount of loans made to directors,
executive officers or principal holders of equity securities
as of March 31, 1995 and December 31, 1994 respectively were:
Aggregate amount, beginning 1-1 $3,409,868 $3,482,587
New loans 190,296 862,194
Repayments 302,375 934,913
Aggregate amount, ending 3-31-95 $3,297,789
Aggregate amount, ending 12-31-94 $3,409,868
March 31, December 31,
6)OTHER ASSETS: 1995 1994
a: Interest earned but not paid on:
Loans $1,617,074 $1,286,864
Investments 1,083,082 907,931
b: Other Real Estate Owned 422,807 611,054
7)INCOME TAXES:
The company adopted Financial Accounting Standards No.
109 "Accounting for Income Taxes" effective January 1, 1993.
The standard requires adoption of a liability method of
accounting for income taxes. The accounting change had no
effect on the company's net income or retained earnings.
Components of income tax expense for the period ended March 31,
1995 are as follows:
Current
Federal $651,499
State 26,184
$677,683
Deferred (101,813)
$575,870
Actual tax expense differs from the expected tax
expense computed by applying the applicable federal corporate
income tax rate of 34% is as follows for the three months ended
March 31, 1995:
Computed tax expense $508,429
Tax exempt interest (81,443)
Other 148,884
$575,870
At March 31, 1995, items giving rise to the deferred
income tax assets and liabilities, using a tax rate of 34%, are
as follows:
ASSET LIABILITY
Allowance for possible losses
on loans and real estate owned $1,232,180
Deferred and accrued employee
benefits 884,785
Deferred loan origination fees 143,373
Securities losses not currently
deductible 19,595
Core deposit intangibles 121,447
Depreciation 161
Other 8,595
$2,409,975 $161
No valuation allowance is deemed necessary for the deferred tax
asset.
8)INCOME TAX EXPENSE: 1995 1994
Federal Income Tax $549,686 $491,473
State Income Tax 26,184 23,341