Text - centered in top one-third of the page:
More Than A Bank
Photographs - center of page spreading from left edge to right edge of page -
faded faces of three people. On the top of the photographs is a circular
graphic with lines leading to the right edge of the page.
Text - centered on the bottom two-thirds of the page:
BRENTON
Text - centered at the bottom of the page:
Brenton Banks, Inc.
1999 Summary Annual Report
Text - left hand column of the page:
Table of Contents:
Financial Highlights 2
The Year in Review 3
Letter to Shareholders 13
Financial Summary 15
Officers & Locations 21
For more information about Brenton's products and
services, visit our Web sites at www.brentonbank.com
and www.brentoninvestments.com.
Text - middle to right hand edge of the page:
It takes more than a bank to serve the growing
financial needs of Iowa families, communities,
businesses and ag enterprises. It takes more than
a bank to recruit and reward experienced, moti-
vated sales and support professionals. It takes
more than a bank to create mutually profitable
partnerships with clients, trade associations,
builders, local governments - even other banks.
It takes more than a bank to win! During 1999,
Brenton Banks, Inc. continued to invest in the
people, systems and strategies that are already
helping our Company become more than a bank-
and creating more opportunities than ever before.
Founded in 1881, Brenton Banks, Inc. is the largest Iowa-based
bank holding company with 44 service locations in metropolitan
markets and regional economic centers across the state. The
Company offers a complete range of financial products and services -
including personal, agricultural, commercial and small business
banking; trust and investment management services; investment
and insurance brokerage; mortgage banking; cash management and
international banking services; as well as proprietary mutual funds.
To help make banking more convenient for our clients, we deliver
banking, mortgage, insurance and investment products and services
over the phone through Brenton Direct. Clients can review their
accounts and perform transactions 24 hours a day via our new
Anytime Banking Internet system and Anytime Line telephone system.
Clients also enjoy the convenient advantages of our Brenton Photo
SmartCheck debit cards, ATMs, direct deposit and automatic
payment programs.
The Company's stock trades on the NASDAQ stock market under
the symbol BRBK.
Text - centered at the bottom of the page:
1 Brenton Banks, Inc. 1999 Summary Annual Report
Financial Highlights
Brenton Banks, Inc. and Subsidiaries
1999 1998 1997
Operating Results
Net interest income $ 62,599,137 61,387,326 60,133,764
Provision for loan losses 4,250,000 4,200,000 3,900,000
Total noninterest income 29,793,656 33,357,827 27,505,789
Total noninterest expense 65,374,270 61,391,528 57,698,564
Income before income
taxes and minority
interest 22,768,523 29,153,625 26,040,989
Net income 16,560,117 20,350,921 18,010,107
Per Common Share*
Net income-basic $ .81 .98 .85
Net income-diluted .80 .96 .83
Cash dividends .346 .317 .225
Book value, including
unrealized gains
(losses)** 6.48 6.55 6.17
Book value, excluding
unrealized gains
(losses)*** 6.76 6.39 6.02
Closing price 10.13 15.23 16.53
At December 31
Assets $1,985,454,701 1,939,556,765 1,718,483,797
Loans 1,195,986,791 1,033,554,556 993,189,110
Nonperforming loans 9,452,000 11,289,000 6,712,000
Deposits 1,530,083,303 1,496,675,131 1,364,270,491
Realized common
stockholders' equity*** 137,568,254 131,891,522 126,159,453
Total common stockholders'
equity** 131,933,451 135,210,319 129,379,299
Market capitalization of
common stock 206,088,847 314,102,382 346,646,292
Ratios
Return on average total
common stockholders'
equity (ROE)** 12.35% 15.37 14.47
Return on average realized
common stockholders'
equity (ROE)*** 12.31 15.77 14.68
Return on average assets
(including minority
interest) (ROA) .89 1.18 1.14
Net interest margin 3.73 3.97 4.16
Net noninterest margin (1.84) (1.61) (1.86)
Efficiency ratio 67.99 62.71 63.66
Loan to deposit ratio 78.16 69.06 72.80
Allowance for loan losses
to total loans 1.21 1.37 1.28
Equity to assets*** 6.91 6.81 7.36
Risk-based capital ratio 10.18 11.37 11.95
Tier 1 leverage capital
ratio*** 6.80 7.17 7.63
Nonperforming loans as a
percent of loans .79 1.09 .68
Net charge-offs as a percent
of average loans .36 .28 .26
Allowance for loan losses as
a percent of nonperforming
loans 152.49 125.54 189.69
<FN>
* Restated for the 2-for-1 stock split effective February 1998
and the 10 percent common stock dividends effective in
1999 and 1998.
** Including unrealized gains (losses) on securities available for
sale.
*** Excluding unrealized gains (losses) on securities available for
sale.
Three bar graphs on the right hand side of the page:
Graph showing Net Income (In thousands) (1995-1999):
95 96 97 98 99
$10,407 $14,015 $18,010 $20,351 $16,560
Dual Graph showing Diluted Net Income per Common Share and Dividends per
Common Share (Restated for stock splits/dividends) (1995-1999):
95 96 97 98 99
Net Income $ .46 $ .63 $ .83 $ .96 $ .80
Dividends $.154 $.171 $.225 $.317 $.346
Graph showing Total Assets (In millions) (1995-1999);
95 96 97 98 99
$1,583 $1,632 $1,718 $1,940 $1,985
2
Text - centered in middle of one-third of page:
GROWING BY QUANTUM LEAPS
Small graphic on a graph showing two lines of growth.
Text - centered underneath graphic:
Strategic Quantum
Leap proposals were
submitted by every
line of business and
several support
areas during 1999.
Text - centered in middle, to the left of the graphic:
In today's highly competitive financial
services industry, companies can no
longer afford to let their growth poten-
tial be dictated by the whims of the
marketplace. That's why Brenton has
formalized a strategic growth process
called "Quantum Leap." It's a grassroots
initiative built on the experience and
creativity of Brenton associates. And,
it underscores our willingness to
carefully explore and develop niche
opportunities for significant growth
within our established core businesses.
A Quantum Leap idea can be submitted
by any associate. Each idea is formulated
into a plan, then tested for viability.
Plans that survive the testing phase are
budgeted and implemented, with an
oversight committee meeting twice each
month to review progress, cull out projects
that aren't meeting expectations and
encourage those that are.
During 1999, nearly 30 Quantum
Leap proposals were considered. More
than a dozen were implemented - many
of which are discussed on the pages of
this report.
Text - centered at the bottom of the page:
3 Brenton Banks, Inc. 1999 Summary Annual Report
Photograph of eleven employees located in the upper center of the page.
Text - left side of the photograph:
As part of our Quantum Leap
initiative, 38
experienced sales people joined the Brenton team
in 1999.
Text - right side of the photograph:
There's much more to Quantum Leap than the
development of new products and services. What's
key is our focus on adding new sales associates in
lines of business where genuine growth and profit
opportunities have been identified.
Text - underneath the photograph located from one-third of page to right hand
edge of paper:
FIRST, WE IDENTIFY PROFITABLE OPPORTUNITIES.
THEN, WE PUT "MORE FEET ON THE STREET!"
Photograph of Salisbury House, a historic mansion in Des Moines, Iowa located
from left hand edge of the page to two-thirds of page.
Text - underneath photograph: Photo courtesy of Scott Little
Text - bottom half of the page located two-thirds of page to right hand edge
of paper:
PARTNERING TO PRESERVE HISTORY
Des Moines' Salisbury House is a historic 42-room mansion and
museum modeled after the King's House in Salisbury, England. It has
been featured on the A&E series, "America's Castles," and has been
home to the Iowa State Education Association (ISEA) since 1954.
By the mid 90s, the ISEA had outgrown its available office space and
began to explore the mansion's sale, with a goal of preserving its
collections
and museum status. Working closely with the Salisbury House Foundation,
a not-for-profit community group, Brenton was able to facilitate the
transaction in a number of ways.
We developed a creative financing package to fund the purchase, secured
by pledges to the Foundation (in addition to making our own charitable
contribution). Next, we helped them structure a $6 million tax-exempt
bond issue for ongoing maintenance and improvements. Along the way,
we also won over the ISEA, who used its proceeds to fund an endowment
managed by Brenton.
4
Text - centered in middle of top one-third of page:
HELPING LOCAL IOWA GOVERNMENTS
PUT THEIR MONEY TO WORK AT HOME
Photograph of State Capital building located from left hand edge of the page
to one-third of page.
Text - centered in the middle, located directly to the right of the
photograph:
Many community banks are too
small to serve the sophisticated
needs of Iowa municipalities and
agencies. That's why we created a
Quantum Leap initiative to expand
our expertise, while developing new
and existing relationships among
those preferring to work with an
Iowa-based banking company.
What could make
more sense than
Iowa Communities
partnering with an
Iowa bank?
Text - bottom two-thirds of page from center of page to three-fourths of the
page:
WORKING TO KEEP BUSINESS IN IOWA THROUGH
FOCUSED ECONOMIC DEVELOPMENT ACTIVITIES
Brenton associates have long worked with community leaders to help attract
and retain local businesses. In 1999, this resulted in the relocation of
Percival Scientific, a manufacturer of environmental research chambers
for universities and biogenetic and pharmaceutical businesses, to Perry
from Boone. The company's owners had considered out-of-state locations,
but Rich Jones, our local market manager in Perry, worked with the community
to develop a package of financial incentives and services that were
instrumental in keeping the firm in Iowa.
Photograph of architect's rendering of the Percival Scientific's (a client)
new building - located from one-third of page to the right hand side of the
page.
Text - centered at the bottom of the page:
5 Brenton Banks, Inc. 1999 Summary Annual Report
Photograph of combine in a soybean field with tractor and wagon from one-
third of page to right hand edge of page.
Text - centered in the middle of the page in the bottom two-thirds of the
page, located underneath the photograph:
SERVING THE UNIQUE FINANCIAL NEEDS
OF AGRI-BUSINESSES AND FARM PRODUCERS
Brenton's century-plus experience in satisfying the
financial needs of agricultural producers and businesses
has positioned us well for continued success in serving
these important markets. Through Brenton Agri-Access TM,
we develop mutually profitable relationships with large
producers and businesses, such as seed companies,
elevators, dairies and processors. Small farmers are
served through our business banking group. By putting
the right banker in front of the right client, we are not
only realizing greater efficiency and sales success, we
are better serving our clients by matching our services
and expertise with their specific needs.
6
Text - left hand edge of the page to the middle of the page:
IMAGINE A BANK
WITH NO TELLER LINE
Nowhere in the Brenton organization is
our sales focus more evident than in Coral-
ville, an Iowa City suburb, where we opened
our prototype "office of the future" in
November. Dedicated to business and private
banking, it's staffed by ten Brenton associates,
eight of whom spend most of their time
outside the office.
Rather than forcing clients to come to the
bank, associates deliver our entire range of
products and services directly to clients'
homes or offices. Clients appreciate the
convenience and our dedication to total
service. And, we value the opportunity to
develop strong multi-account relationships
among those we're perfectly positioned
to serve.
Clients are still welcome to stop by the
office whenever they like. Instead of a tradi-
tional teller line, there's a semicircular
counter staffed by two associates who can
handle everything from loans to deposits.
Conference rooms are available to provide
dedicated, private services in an uncluttered,
fully networked environment.
A similar Brenton sales office will be
opening in Moline, Illinois, during 2000.
It will be our first office outside of Iowa.
Photograph of outside front of Brenton Bank office building in Coralville,
Iowa - located on the top of the page on the right hand side of the text.
Floor plan of Coralville, Iowa office - located on the bottom of the page on
the right hand side of the text.
Text - centered at the bottom of the page:
7 Brenton Banks, Inc. 1999 Summary Annual Report
Photograph of a pen on top of paper - located at the top of the page in the
right hand corner of the page.
Text - located underneath the photograph from one-third of the page to the
right hand edge of the page:
IMAGINE A DEDICATED TEAM OF WEALTH MANAGEMENT
EXPERTS, SERVING YOUR EVERY FINANCIAL NEED
During 1999, we developed a unique approach for serving our affluent
clients by providing complete private banking, financial planning, risk
management, estate planning, trust services and more - through a single
relationship manager working with a team of experts from across our
lines of business.
Text - located in center of page, bottom two-thirds of the page:
IMAGINE HOW MUCH
SIMPLER IT COULD BE
TO BUILD AND FINANCE
A NEW HOME
Wouldn't it be great if you could secure both
construction financing and your new home mortgage with
a single closing (and a single set of fees)? That's the
thinking behind Brenton's new, construction real estate
lending program - a Quantum Leap initiative that
produced more than $70 million in residential construction
originations during 1999. Builders appreciate the
program, too-not only because it creates business,
but also because the construction loans can be made
directly to homeowners, freeing up builders' lines of credit.
Photograph of a home under construction - located next to the text in the
bottom right hand corner of the page.
8
Text - centered in the middle of the page:
Brenton clients can now handle just about
all their banking business with a keyboard and
mouse, thanks to Anytime Banking on our Web
site at www.brentonbank.com. They'll enjoy
secure, 'round-the-clock access to their
accounts, plus information on everything
from CDs, deposits and loans to their IRAs,
mortgage and more.
Text centered across the page:
BRENTON DELIVERS ONLINE CONVENIENCE
FOR BANK AND INVESTMENT CLIENTS
Text - centered in the middle of the page:
Also, Brenton Investment Direct clients will soon
find a remarkable range of information, savings
and convenience at www.brentoninvestments.com
- - including free real time quotes, personalized
portfolio tracking, free check writing, free
dividend reinvestment for most U.S. stocks,
year-end tax information, discounted com-
missions and more. Plus, they can place limit
or market orders from anywhere they have
Internet access.
Both of these new, Internet-based Brenton
services are supported by our successful
telephone services. The Brenton Anytime
Line provides 24 hour access, 7 days a week, to
account information and transfers. Brenton
Direct is an extended hours telephone service,
staffed by experienced associates who can help
clients open accounts, apply for loans and
satisfy a variety of financial needs.
Clients can also trade by phone and receive
immediate transaction confirmations from a
licensed Brenton Investment representative.
Four small photographs of a finger on a keyboard, man sitting at a keyboard,
graphic of first part of an Internet address, and $ signs on a circuit board
- - located in a column going down the page on the right hand side of the page
next to the text
Text - centered at the bottom of the page:
9 Brenton Banks, Inc. 1999 Summary Annual Report
Text - centered across the top of the page is:
SHOOTING FOR PERFECTION DURING A "TELLER PERFECT HOUR"
Text - located in the left hand corner of the page:
A 200% increase in
teller referrals was
generated during
Brenton's Teller
Perfect Hour on
February 10, 2000.
Text - centered in the middle of the page:
To engage Brenton tellers in our sales process and culture, we created
a six-week training process focused on building relationships, providing
superior service and promoting opportunities to our clients. The process
culminated in an event called the "Teller Perfect Hour," during which
we worked to achieve 100 percent performance, 100 percent of the
time. The first Teller Perfect Hour was piloted by our Ames bank,
last fall. A statewide Teller Perfect Hour was successfully completed
on February 10, 2000, with 44 out of 125 participating tellers
delivering perfect scores. Three offices achieved total perfection,
with all tellers producing perfect scores.
Photograph of a teller line in a bank office from the teller's view - located
next to the text in the upper right hand corner of the page:
Photograph of a windmill during the Pella Tulip Festival in Pella, Iowa -
centered in the middle on the bottom half of the page.
Text - located two-thirds of the page (next to the photograph) to the right
hand edge of the paper:
BANK ACQUISITIONS IN PELLA
AND KNOXVILLE EXPAND TWO
BRENTON COMMUNITIES
During 1999, Brenton acquired two U.S. Bank branches
in Pella and Knoxville and immediately began to develop
important new client relationships in these dynamic
community markets. As a result of these acquisitions,
Brenton is now the largest financial institution in
Marion County. Growth through acquisition continues
to be a core Brenton strategy.
"In one evening, we had completely
transformed the office into a working
Brenton Bank. The teamwork was
incredible!" said Steve Agan, President
of Brenton Bank-Knoxville/Pella.
10
Graphic in the shape of an oval, with four smaller ovals inside representing
lines of business (Business Banking, Personal Banking, Investments, Insurance
Services). An inner circle states Relationship Manager with the innermost
circle showing Client - located in the upper left hand corner of the page.
Text - from the middle to the right hand edge of the page:
LEADING THE ONEBANKism
REVOLUTION
Text - from left hand edge of the page to the middle of the page:
Since 1996, Brenton has worked closely
with Cohen Brown Management Group, Inc., an
internationally recognized sales management
training firm, to expand the boundaries of
sales culture development within the banking
industry. As a result of our success in this
effort, we were selected to be the pilot organi-
zation for Cohen Brown's "ONEBANKism"
concept. Our sales culture accomplishments
have been the subject of several presentations
and articles, most recently in the American
Banker Association's Community Banking Quarterly.
The heart of the ONEBANKism concept is
partnership, whereby associates from different
lines of business formally agree not only to refer certain numbers of
targeted clients to each other, but also to support each other from the
referral through the sale. Formalized as "mutual charter agreements,"
these partnerships are tracked and tied to individual goals and incentives.
The goal is to deliver the entire bank to every targeted client at every
opportunity, enabling us to strengthen client relationships and generate
additional sales.
"ONEBANKism" and "Mutual Charter Agreement"(c) 1998 Cohen Brown Picture Co.,
Inc.
Picture of stock certificates - located in lower right hand corner of the
page.
Text - centered at the bottom of the page:
11 Brenton Banks, Inc. 1999 Summary Annual Report
Text - centered in the middle:
THE POWER OF PARTNERSHIP MEANS DELIVERING
MORE DOLLARS TO THE BOTTOM LINE
Photograph of two women looking down at a desktop - located two-thirds of the
page.
Text - two-thirds (to the right of the photograph) of the page to the right
hand edge of the page:
Through an innovative Brenton-developed partner-
ship program, Brenton lines of business commit to
produce specific revenues for other Brenton lines
by identifying clients' financial needs and proactively
referring them to appropriate Brenton specialists.
During 1999, this powerful initiative created over
3,900 sales, producing approximately $1.9 million
in revenues.
Text - left hand edge of the page to middle:
SHARING PRIDE OF OWNERSHIP
None of our plans or accomplishments would be possible without the
enthusiastic commitment and support of Brenton associates across Iowa.
That's why, last year, we began to reward their efforts with shares of the
Company's common stock. Early in 1999, we distributed shares to most
employees in recognition of our record-setting performance from 1996 through
1998. On January 14, 2000, we presented additional shares to celebrate our
many 1999 accomplishments.
The distribution took place at special breakfast meetings, simultaneously
held at every Brenton location. During these meetings, each department and
associate was individually recognized for their accomplishments, as we shared
our vision for continued future growth.
Text - bottom left hand corner of the page:
Brenton associates were
rewarded for their
dedication, flexibility
and innovation with a gift
of Brenton common stock.
12
Text - middle to the right hand edge of the paper:
TO OUR SHAREHOLDERS:
During 1999, Brenton Banks, Inc. continued to implement and
refine our leading edge growth strategy, while positioning ourselves to
identify and serve the ever-growing needs of our targeted clients across
Iowa. We have historically been a strong competitor within our selected
markets. During the past year, we became even stronger.
We invested in several key initiatives, and thanks to the work of
Brenton associates, many of these initiatives have already begun to
produce results.
Our municipality and association initiatives drew encouraging
amounts of business from local and regional governments, agencies
and organizations. We expanded our presence in key markets, including
Knoxville, Iowa City and Pella. We produced significant growth in average
core deposits, which rose 11.4 percent in 1999. Our success in sales
culture development was noted in the American Banker Association's
Community Banking Quarterly. And we were one of ten banks, nationwide,
selected by BAI and Action Systems, Inc. to participate in a research
project studying the development of an effective sales culture.
Expenses tied to these growth initiatives and other factors, including
continued compression of net interest margin, led to 1999 earnings of
$16.6 million, compared to net income of $20.4 million in 1998.
Diluted earnings per common share were $.80, compared to $.96 for
the prior year, which has been restated to reflect the June 1999 ten per-
cent common stock dividend. The Company's return on average equity
(ROE) was 12.35 percent. Average assets grew by 9.2 percent, ending
the year at nearly $2.0 billion.
Net interest income rose 2.0 percent to $62.6 million, compared to
$61.4 million in 1998, as favorable volume variances were tempered by
unfavorable rate variances. While average interest-earning assets grew
8.7 percent, net interest margin declined 24 basis points to 3.73 percent,
thus limiting net interest income growth. Continued compression of
net interest margin, primarily caused by aggressive competition in
Iowa's banking marketplace, is one reason the Company is committed to
long-term growth in financial services and other sources of fee income.
Total average loans grew 10.0 percent to $1.1 billion, compared to
$1.0 billion in 1998. Average indirect consumer loans increased by
$51.2 million (31 percent). Average direct consumer loans grew by
Two bar graphs on the left hand side of the page:
Graph showing Return on Average Equity (1995-1999):
95 96 97 98 99
9.04% 11.76% 14.47% 15.37% 12.35%
Graph showing Noninterest Income as a Percent of Total Operating Income (1995
- - 1999):
95 96 97 98 99
25.08% 29.10% 31.00% 34.75% 32.09%
Text - centered at the bottom of the page:
13 Brenton Banks, Inc. 1999 Summary Annual Report
Text - left hand corner of the page:
$26.9 million (12
percent). Average
commercial/business/ag
loans rose $29.0
million (7 percent).
Average residential real
estate loans declined
Text - caption from two-thirds of the page to the right hand side of the
page:
DURING THE PAST YEAR, WE BECAME EVEN STRONGER. WE INVESTED
IN SEVERAL KEY INITIATIVES, AND THANKS TO THE WORK OF BRENTON
ASSOCIATES, MANY OF THESE INITIATIVES HAVE ALREADY BEGUN TO
PRODUCE RESULTS.
Text - left side of the page to the middle:
$12.7 million (9 percent), primarily due to refinancings and normal
run-off. Refinanced loans are generally sold in the secondary market to
reduce the risk of holding long-term, fixed-rate loans in the portfolio.
Nonperforming loans declined to $9.5 million or .79 percent of total
loans on December 31, 1999, compared to $11.3 million or 1.09 percent
of total loans at year-end 1998. Loan quality remained strong at year-end
1999, with reserves standing at 152.49 percent of nonperforming loans
and 1.21 percent of total loans. Net charge-offs were .36 percent of
average loans, up slightly from .28 percent in 1998.
Brenton's 1999 noninterest income (excluding securities gains)
declined 9.5 percent to $29.6 million. Rising mortgage interest rates
and higher than anticipated losses on sales of originated loans led to a
decline of $3.6 million in mortgage banking revenue. Lower transaction
volume resulted in a 22.0 percent decline in investment brokerage
commissions. Growing numbers of commercial and business clients, as
well as a revised fee schedule, pushed service charges on deposit accounts
18.9 percent higher during the year. Securities gains for 1999 totaled
$215,640, compared to gains of $665,450 for 1998.
Noninterest expenses grew 6.5 percent to $65.4 million, up from
$61.4 million in 1998. Normal annual salary adjustments and increasing
numbers of employees due to the Company's growth initiative resulted in
a 3.7 percent increase in compensation expense. Employee benefits
expense rose $.7 million (13.4 percent), as a result of the increased
compensation expense and higher medical insurance premiums, as well
as an award of Brenton stock to most employees during the first quarter
of 1999. Furniture and equipment expense grew $1.1 million (27.2 percent),
due to depreciation on technology upgrades and higher costs for software
maintenance agreements. All other operating expenses increased a net
4.8 percent.
Text - middle to the right hand side of the page:
During 1999, shareholders' equity (excluding unrealized gains or
losses on securities available for sale) increased 4.3 percent to $137.6
million. Cash dividends were $.346 per share, up 9.2 percent from
$.317 in 1998. As part of its capital management plan, the Company
repurchased 300,624 shares of common stock in 1999 at a cost of
$4.0 million.
The full financial statements and management's discussion and
analysis are included in the Appendix to the Proxy Statement filed with
the Securities and Exchange Commission, which has been provided to
all shareholders.
We are gratified by the confidence of shareholders and investment
bankers who believe in Brenton's vision. The past two years were not
favorable for bank stocks in general, as rising interest rates, narrowing
margins, fewer mergers and Y2K worries drove down prices across
the banking industry. But all cycles come to an end.
At Brenton, we are very well positioned to seize and profit from
the opportunities that lie ahead. We believe our strategies of growth,
partnership, and continued sales culture development will enable us to
provide the value clients and investors will be looking for in 2000
and beyond.
/s/
C. Robert Brenton
Chairman of the Board
/s/
Robert L. DeMeulenaere
President and Chief Executive Officer
14
Selected Financial Data
Brenton Banks, Inc. and Subsidiaries
Year-end Balances
(in thousands) 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
Total assets $ 1,985,455 1,939,557 1,718,484 1,632,095 1,582,779 1,581,327 1,480,596 1,431,140 1,360,942 1,274,301
Interest-earning assets 1,805,943 1,788,081 1,578,923 1,497,600 1,461,218 1,475,473 1,400,709 1,323,252 1,267,402 1,181,172
Interest-bearing
liabilities 1,645,684 1,590,493 1,406,258 1,335,609 1,300,508 1,315,378 1,224,951 1,181,013 1,141,008 1,052,597
Noninterest-bearing
deposits 189,333 190,625 161,007 153,284 143,220 136,548 127,132 137,212 115,479 125,626
Long-term borrowings 27,704 41,546 36,662 34,860 38,178 28,939 20,055 13,284 13,634 12,675
Common stockholders'
equity** 131,933 135,210 129,379 121,954 119,534 110,430 112,418 97,430 86,712 77,258
Results of Operations
(in thousands)
Interest income $ 128,979 124,026 118,239 111,383 111,040 101,223 98,656 106,560 115,561 106,826
Interest expense 66,380 62,639 58,105 55,331 57,708 45,772 44,427 54,773 68,687 64,431
Net interest income 62,599 61,387 60,134 56,052 53,332 55,451 54,229 51,787 46,874 42,395
Provision for loan losses 4,250 4,200 3,900 2,900 1,865 1,988 1,252 1,411 799 869
Net interest income after
provision for loan losses 58,349 57,187 56,234 53,152 51,467 53,463 52,977 50,376 46,075 41,526
Noninterest income 29,794 33,358 27,506 23,327 17,847 16,593 17,863 14,684 12,715 11,554
Noninterest expense 65,374 61,392 57,699 56,090 55,051 56,657 50,415 46,591 42,284 37,820
Income before income
taxes and minority
interest 22,769 29,153 26,041 20,389 14,263 13,399 20,425 18,469 16,506 15,260
Income taxes 5,565 8,082 7,288 5,771 3,205 2,701 5,508 4,884 4,308 4,388
Minority interest 644 720 743 603 651 591 667 632 539 533
Net income $ 16,560 20,351 18,010 14,015 10,407 10,107 14,250 12,953 11,659 10,339
Average common shares
outstanding
(in thousands)* 20,498 20,853 21,181 21,891 22,469 23,105 22,983 22,782 22,716 22,677
Per Common Share*
Net income-basic $ .81 .98 .85 .64 .46 .44 .62 .57 .51 .46
Net income-diluted .80 .96 .83 .63 .46 .43 .61 .56 .51 .45
Cash dividends .346 .317 .225 .171 .154 .150 .137 .120 .110 .093
Common stockholders'
equity*** 6.76 6.39 6.02 5.62 5.27 5.01 4.74 4.26 3.81 3.40
Closing price 10.13 15.23 16.53 10.38 7.26 6.23 5.98 5.92 4.72 3.07
Selected Operating
Ratios
Return on total average
common stockholders'
equity** 12.35% 15.37 14.47 11.76 9.04 9.03 13.82 14.13 14.27 14.39
Return on average realized
common stockholders'
equity*** 12.31 15.77 14.68 11.79 8.91 8.99 13.82 14.12 14.26 14.39
Return on average assets
(including minority
interest) .89 1.18 1.14 .92 .71 .70 1.04 .98 .93 .95
Equity to assets*** 6.91 6.81 7.36 7.41 7.47 7.28 7.40 6.81 6.37 6.06
Common dividend
payout 43.25 33.02 27.11 27.14 33.48 34.88 22.46 21.43 21.57 20.67
Allowance for loan
losses as a percent
of loans 1.21 1.37 1.28 1.20 1.22 1.12 1.12 1.20 1.14 1.25
Net charge-offs as a
percent of average
loans .36 .28 .26 .29 .18 .10 .05 .13 .15 .12
<FN>
* Restated for 2-for-1 stock split effective February 1998, 10 percent common stock dividends effective in 1999, 1998, 1997
and 1996 and 3-for-2 stock split effective in 1994.
** Including unrealized gains (losses) on securities available for sale.
*** Excluding unrealized gains (losses) on securities available for sale.
Text - centered at the bottom of the page:
Financials 15 Brenton Banks, Inc. 1999 Summary Annual Report
Consolidated Statements of Condition
Brenton Banks, Inc. and Subsidiaries
December 31 1999 1998
Assets:
Cash and due from banks $ 85,064,053 76,460,049
Interest-bearing deposits with banks 2,361,784 2,167,288
Federal funds sold and securities purchased
under agreements to resell - 6,000,000
Investment securities:
Available for sale 556,191,355 605,183,788
Held to maturity (market value of
$25,351,000 and $44,011,000
at December 31, 1999, and 1998,
respectively) 25,201,876 43,027,501
Total investment securities 581,393,231 648,211,289
Loans held for sale 26,201,221 98,147,391
Loans 1,195,986,791 1,033,554,556
Allowance for loan losses (14,413,104) (14,172,264)
Loans, net 1,181,573,687 1,019,382,292
Premises and equipment 37,978,240 32,523,113
Accrued interest receivable 15,856,895 16,458,066
Other assets 55,025,590 40,207,277
1,985,454,701 1,939,556,765
Liabilities and Stockholders' Equity:
Deposits:
Noninterest-bearing 189,333,019 190,625,140
Interest-bearing:
Demand 145,131,184 131,602,358
Savings 640,963,380 603,367,340
Time 554,655,720 571,080,293
Total deposits 1,530,083,303 1,496,675,131
Federal funds purchased and securities sold
under agreements to repurchase 166,806,442 155,847,300
Other short-term borrowings 110,423,584 87,050,000
Accrued expenses and other liabilities 13,896,056 18,315,348
Long-term borrowings 27,704,000 41,546,000
Total liabilities 1,848,913,385 1,799,433,779
Minority interest in consolidated
subsidiaries 4,607,865 4,912,667
Redeemable preferred stock, $1 par;
500,000 shares authorized; issuable
in series, none issued - -
Common stockholders' equity:
Common stock, $2.50 par; 50,000,000
shares authorized; 20,354,454 and
18,752,381 shares issued and outstanding
at December 31, 1999, and 1998, respectively 50,886,135 46,880,953
Capital surplus - -
Retained earnings 86,682,119 85,010,569
Accumulated other comprehensive income
(loss)-- unrealized gains (losses) on
securities available for sale (5,634,803) 3,318,797
Total common stockholders' equity 131,933,451 135,210,319
$ 1,985,454,701 1,939,556,765
16
Consolidated Statements of Operations
Brenton Banks, Inc. and Subsidiaries
Years Ended December 31 1999 1998 1997
Interest Income:
Interest and fees on loans $ 94,493,565 89,739,711 86,020,464
Interest and dividends on investments:
Available for sale--taxable 25,125,818 23,770,870 21,969,148
Available for sale--tax-exempt 7,058,222 5,866,972 4,929,898
Held to maturity--taxable 101,816 277,075 811,729
Held to maturity--tax-exempt 1,677,406 2,536,082 2,647,149
Interest on federal funds sold and
securities purchased under agreements
to resell 349,298 1,659,405 1,742,284
Other interest income 172,918 175,678 118,695
Total interest income 128,979,043 124,025,793 118,239,367
Interest Expense:
Interest on deposits 51,330,450 50,772,501 49,310,346
Interest on federal funds purchased
and securities sold under
agreements to repurchase 6,630,927 5,092,162 3,413,432
Interest on other short-term
borrowings 6,403,143 3,756,817 3,183,053
Interest on long-term borrowings 2,015,386 3,016,987 2,198,772
Total interest expense 66,379,906 62,638,467 58,105,603
Net interest income 62,599,137 61,387,326 60,133,764
Provision for loan losses 4,250,000 4,200,000 3,900,000
Net interest income after provision
for loan losses 58,349,137 57,187,326 56,233,764
Noninterest Income:
Service charges on deposit accounts 9,372,840 7,885,513 7,290,765
Mortgage banking income 4,225,351 7,797,577 3,274,215
Investment brokerage commissions 4,160,138 5,334,309 4,808,048
Fiduciary income 3,685,449 3,497,030 3,136,078
Insurance commissions and fees 1,608,661 1,382,917 2,803,983
Other service charges, collection
and exchange charges, commissions
and fees 4,791,432 4,634,529 3,879,609
Net realized gains from securities
available for sale 215,640 665,450 493,822
Other operating income 1,734,145 2,160,502 1,819,269
Total noninterest income 29,793,656 33,357,827 27,505,789
Noninterest Expense:
Compensation 30,225,317 29,141,441 26,824,307
Employee benefits 5,525,097 4,873,271 4,303,104
Occupancy expense of premises, net 6,063,984 5,807,559 5,609,600
Furniture and equipment expense 5,295,734 4,163,137 3,634,336
Data processing expense 2,873,419 2,623,727 2,850,395
Marketing 1,784,474 1,472,632 1,361,963
Supplies 1,404,316 1,226,212 1,195,762
Other operating expense 12,201,929 12,083,549 11,919,097
Total noninterest expense 65,374,270 61,391,528 57,698,564
Income before income taxes and
minority interest 22,768,523 29,153,625 26,040,989
Income taxes 5,564,805 8,082,355 7,287,628
Income before minority interest 17,203,718 21,071,270 18,753,361
Minority interest 643,601 720,349 743,254
Net income $ 16,560,117 20,350,921 18,010,107
Per common share*:
Net income-basic $ .81 .98 .85
Net income-diluted .80 .96 .83
Cash dividends .346 .317 .225
<FN>
* Restated for the 2-for-1 stock split effective February 1998 and 10 percent common
stock dividends effective in 1999 and 1998.
Text - centered at the bottom of the page:
Financials 17 Brenton Banks, Inc. 1999 Summary Annual Report
Consolidated Statements of Changes in Common Stockholders' equity
Brenton Banks, Inc. and Subsidiaries
Years Ended December 31 1999 1998 1997
Common Stock
Beginning of year balance $ 46,880,953 43,335,120 40,428,420
Ten percent common stock
dividend 4,655,915 4,315,398 3,966,905
Issuance of shares of common stock
under the stock option plan 33,680 99,825 501,760
Issuance of shares of common stock
under the long-term stock
compensation plan - 268,960 82,945
Issuance of shares of common stock
under the employee stock purchase
plan 33,647 94,150 93,790
Shares reacquired under the common
stock repurchase plan (718,060) (1,232,500) (1,738,700)
End of year balance 50,886,135 46,880,953 43,335,120
Capital Surplus
Beginning of year balance - - -
Ten percent common stock dividend - (78,529) -
Issuance of shares of common stock
under the stock option plan (29,667) 190,214 784,397
Issuance of shares of common stock
under the long-term stock
compensation plan - 842,685 163,970
Issuance of shares of common stock
under the employee stock purchase
plan 209,926 664,018 457,457
Shares reacquired under the common
stock repurchase plan (180,259) (1,618,388) (1,405,824)
End of year balance - - -
Retained Earnings
Beginning of year balance 85,010,569 82,824,333 80,448,768
Net income 16,560,117 20,350,921 18,010,107
Dividends on common stock
($.346, $.317, and $.225 per share,
respectively) (7,112,542) (6,622,340) (4,781,675)
Ten percent common stock dividend (4,655,915) (4,236,869) (3,966,905)
Fractional shares resulting from
common stock dividend (14,003) (13,961) (16,399)
Issuance of shares of common stock
under the long-term stock
compensation plan - (141,425) -
Issuance of shares of common stock
under the employee stock purchase
plan - (78) -
Shares reacquired under the common
stock repurchase plan (3,106,107) (7,150,012) (6,869,563)
End of year balance 86,682,119 85,010,569 82,824,333
Total Stockholders' Equity before
Accumulated Other Comprehensive
Income (Loss) 137,568,254 131,891,522 126,159,453
Accumulated Other Comprehensive
Income (Loss)
Beginning of year balance 3,318,797 3,219,846 1,077,041
Change in unrealized holding
gains (losses) on securities
available for sale (8,953,600) 98,951 2,142,805
End of year balance (5,634,803) 3,318,797 3,219,846
Total Stockholders' Equity $ 131,933,451 135,210,319 129,379,299
18
Consolidated Average Balances and Rates
Brenton Banks, Inc. and Subsidiaries
Average Balances (in thousands) 1999 1998 1997 1996 1995
Assets:
Cash and due from banks $ 72,186 65,874 58,681 65,439 57,138
Interest-bearing deposits with
banks 3,526 3,706 2,460 1,393 1,076
Federal funds sold and
securities purchased under
agreements to resell 7,118 31,048 31,472 26,188 39,763
Trading account securities - - 12 - -
Investment securities:
Available for sale--taxable 430,740 390,591 348,232 330,002 244,786
Available for sale--tax-exempt 155,558 125,237 99,868 85,471 100,859
Held to maturity--taxable 1,514 3,998 12,700 46,271 65,959
Held to maturity--tax-exempt 33,982 53,130 56,204 51,639 50,235
Loans held for sale 56,218 37,841 10,284 7,983 5,908
Loans 1,098,732 999,232 970,115 919,578 945,724
Allowance for loan losses (14,519) (13,738) (12,171) (11,440) (11,166)
Premises and equipment 36,010 31,883 29,841 31,728 31,436
Other assets 62,761 51,318 41,771 28,642 29,508
$ 1,943,826 1,780,120 1,649,469 1,582,894 1,561,226
Liabilities and Stockholders'
Equity:
Deposits:
Noninterest-bearing $ 192,211 164,403 139,480 131,051 128,770
Interest-bearing:
Demand 109,535 90,589 81,430 376,259 355,819
Savings 641,308 585,598 551,509 241,250 231,633
Time 546,868 556,056 567,258 583,508 626,497
Total deposits 1,489,922 1,396,646 1,339,677 1,332,068 1,342,719
Federal funds purchased and
securities sold under
agreements to repurchase 150,387 116,388 78,234 59,276 40,237
Other short-term borrowings 117,377 65,205 53,223 17,295 6,536
Accrued expenses and other
liabilities 15,940 17,020 17,097 17,520 14,896
Long-term borrowings 31,330 47,605 32,056 33,094 37,264
Total liabilities 1,804,956 1,642,864 1,520,287 1,459,253 1,441,652
Minority interest in
consolidated subsidiaries 4,734 4,834 4,691 4,471 4,391
Common stockholders' equity 134,136 132,422 124,491 119,170 115,183
$ 1,943,826 1,780,120 1,649,469 1,582,894 1,561,226
Summary of Average Interest
Rates:
Average yields earned:
Interest-bearing deposits with
banks 4.90% 4.74 4.80 4.87 6.20
Trading account securities - - 4.26 - -
Federal funds sold and
securities purchased under
agreements to resell 4.91 5.35 5.54 5.41 5.69
Investment securities:
Available for sale--taxable 5.83 6.09 6.31 6.08 5.96
Available for sale--tax-exempt
(tax equivalent basis) 6.46 6.69 7.04 7.13 6.71
Held to maturity--taxable 6.72 6.93 6.39 6.22 6.17
Held to maturity--tax-exempt
(tax equivalent basis) 7.03 6.82 6.72 6.68 8.05
Loans held for sale 7.07 7.11 7.89 8.47 6.71
Loans 8.26 8.74 8.82 8.69 8.69
Average rates paid:
Deposits 3.96% 4.12 4.11 4.12 4.37
Federal funds purchased and
securities sold under
agreements to repurchase 4.41 4.38 4.36 4.17 4.08
Other short-term borrowings 5.46 5.76 5.98 5.87 5.67
Long-term borrowings 6.43 6.34 6.86 7.07 7.03
Average yield on interest-
earning assets 7.44% 7.78 7.95 7.80 7.86
Average rate paid on interest-
bearing liabilities 4.16 4.29 4.26 4.22 4.45
Net interest spread 3.28 3.49 3.69 3.58 3.41
Net interest margin 3.73 3.97 4.16 4.03 3.89
Text - centered at the bottom of the page:
Financials 19 Brenton Banks, Inc. 1999 Summary Annual Report
Stock Information
Brenton Banks, Inc. common stock is traded on the NASDAQ Stock Market and
quotations are furnished by the NASDAQ System. There were 2,095 common
stockholders of record on December 31, 1999.
MARKET AND DIVIDEND INFORMATION
1999 High Low Dividends
1st quarter $15.91 11.82 .086
2nd quarter 17.25 12.55 .086
3rd quarter 17.00 11.63 .087
4th quarter 15.00 9.00 .087
1998 High Low Dividends
1st quarter $18.18 14.87 .070
2nd quarter 19.09 16.74 .079
3rd quarter 22.05 16.59 .082
4th quarter 17.39 14.32 .086
The above table sets forth the high and low sales prices and cash dividends
per share for the Company's common stock, after the effect of the
June 1999 and June 1998 ten percent common stock dividends. The market
quotations, reported by NASDAQ, represent prices between dealers
and do not include retail markup, markdown or commissions.
NASDAQ Symbol: BRBK
Wall Street Journal and
Other Newspapers: BrentB
Market Makers
ABN AMRO Incorporated
Herzog, Heine, Geduld, Inc.
Howe, Barnes Investments, Inc.
Keefe, Bruyette & Woods, Inc.
Sandler, O'Neill & Partners, L.P.
Stifel, Nicolaus & Co., Inc.
FORM 10-K
COPIES OF BRENTON BANKS, INC. ANNUAL REPORT TO THE SECURITIES AND
EXCHANGE COMMISSION FORM 10-K WILL BE MAILED WHEN AVAILABLE WITHOUT
CHARGE TO SHAREHOLDERS UPON WRITTEN REQUEST TO STEVEN T. SCHULER, CHIEF
FINANCIAL OFFICER/TREASURER/SECRETARY, AT THE CORPORATE HEADQUARTERS.
IT IS ALSO AVAILABLE ON THE SECURITIES AND EXCHANGE COMMISSION'S
INTERNET WEB SITE AT HTTP://WWW.SEC.GOV/CGI-BIN/SRCH-EDGAR.
________________________________________________________________________
Independent Auditors' Report
The Board of Directors of Brenton Banks, Inc.:
We have audited, in accordance with generally accepted auditing standards,
the consolidated statements of condition of Brenton Banks, Inc. and
subsidiaries as of December 31, 1999, and 1998, and the related consolidated
statements of operations, comprehensive income, changes in stockholders'
equity and cash flows for each of the years in the three-year period ended
December 31, 1999 (not presented herein); and in our report dated January 28,
2000, we expressed an unqualified opinion on those consolidated financial
statements.
In our opinion, the information set forth in the condensed consolidated
financial information appearing on pages 16 through 18 is fairly presented,
in all material respects, in relation to the consolidated financial
statements from which it has been derived.
KPMG LLP
Des Moines, Iowa
January 28, 2000
20
Corporate Structure
BRENTON BANKS, INC.
BOARD OF DIRECTORS
C. Robert Brenton
Chairman of the Board
Brenton Banks, Inc.
William H. Brenton
Past Chairman and President
Brenton Banks, Inc.
J. C. Brenton
Past President
Brenton Banks, Inc.
Robert C. Carr
Retired
Gary M. Christensen
President & CEO
Pella Corporation
Robert J. Currey
President
21st Century Telecom Group, Inc.
Robert L. DeMeulenaere
President and Chief Executive Officer
Brenton Banks, Inc.
BRENTON BANKS, INC.
EXECUTIVE OFFICERS
C. Robert Brenton
Chairman of the Board
Robert L. DeMeulenaere
President and Chief Executive Officer
Steven T. Schuler
CFO/Treasurer/Secretary
BRENTON BANK SENIOR SALES
SUPPORT OFFICERS
Robert L. DeMeulenaere
Chairman and Chief Executive Officer
Larry A. Mindrup
President
Phillip L. Risley
Executive Vice President
Steven T. Schuler
CFO/Treasurer/Secretary
Judy S. Bohrofen
Human Resources Director
Woodward G. Brenton
Chief Commercial Banking Officer
Gregory M. Cole
Loan Development Center Director
W. Bradley Cunningham
Investment/ALCO Director
Marsha A. Findlay
Professional Development Director
Douglas R. Gulling
Corporate Controller/Cashier
Monica L. Haun
Operations and Technology Director
Douglas F. Lenehan
Chief Sales Officer
Catherine I. Reed
Marketing Director
Norman D. Schuneman
Chief Credit Officer
BRENTON LINE OF BUSINESS
AND REGIONAL BANK MANAGERS
Woodward G. Brenton
Mortgage Banking
Douglas F. Lenehan
Diversified Commercial Services
David W. Mackaman
Commercial Banking
Larry A. Mindrup
Retail Banking
Elizabeth M. Piper/Bach
Financial Services
Allen W. Shafer
Business Banking
Thomas J. Vincent
Agricultural Banking
Charles N. Funk
Central Regional Manager
Dennis H. Hanson
East Central Regional Manager
G. Darryl Harmon
Davenport/Moline Regional Manager
Ronald D. Larson
Cedar Rapids/Iowa City Regional Manager
Marc J. Meyer
Western Regional Manager
Text - centered at the bottom of the page:
21 Brenton Banks, Inc. 1999 Summary Annual Report
Brenton Service Locations - Iowa
Adel
Ames, 424 Main Street
Ames, North Grand Mall
Ames, South Duff Avenue
Ankeny
Cedar Rapids, 150 First Avenue, NE
Cedar Rapids, 3010 Williams Blvd., SW
Cedar Rapids, 1800 51st Street, NE
Clarion
Clive, 10101 University
Clive, 13631 University
Coralville
Dallas Center
Davenport, 1618 N. Main Street
Davenport, Village Shopping Center
Davenport, West Third and Division
Davenport, 53rd and Utica Ridge
Des Moines, 400 Locust Street
Des Moines, 29th & Ingersoll
Des Moines, 2805 Beaver
Des Moines, S.W. 9th and McKinley
Dexter
Dubuque*
Eagle Grove
Emmetsburg
Granger
Grinnell
Indianola
Jefferson
Johnston
Knoxville
Marion
Marshalltown, 102 South Center
Marshalltown, 1724 South Center
Newton*
Pella
Perry
Redfield
Story City
Urbandale
Van Meter
Waukee
West Des Moines**
Woodward
* Loan and investment office
** Telebanking Center
Stockholder Information
Corporate Headquarters
Suite 200, Capital Square
400 Locust Street
Des Moines, Iowa 50309
Telephone 800/627-3686
Annual Shareholders' Meeting
Wednesday, May 17, 2000, 5:00 p.m.
Polk County Convention Complex
501 Grand Avenue
Des Moines, Iowa 50309
Transfer Agent/Registrar/
Dividend Disbursing Agent
Harris Trust and Savings Bank
311 West Monroe Street
Chicago, Illinois 60606
Legal Counsel
Brown, Winick, Graves, Gross,
Baskerville and Schoenebaum, P.L.C.
Suite 1100, Two Ruan Center
601 Locust Street
Des Moines, Iowa 50309
Independent Auditors
KPMG LLP
2500 Ruan Center
666 Grand Avenue
Des Moines, Iowa 50309
22
Text - centered in the top one-third of the page:
The Brenton Difference
Circular graphic in the middle of the page - with outer layer showing four
lines of business with subheadings listing products and services available in
each line of business.
Business Banking
Cash Management
Deposit Accounts
Business and Ag Loans
International Banking Services
Risk Management
Insurance
Employee Benefits
Personal Banking
Credit Cards
Personal & Private Banking
Residential Mortgages
Home Equity Loans/Lines of Credit
Investments
Retirement Planning
Investment Management
Trust and Estate Planning
Next inner circle shows four methods of gaining access to the lines of
business.
Brenton Direct
Branch
Brenton Online
Anytime Line
Next small circle shows Relationship Manager and the innermost rectangle
shows YOU (referring to clients).
Text - centered in the bottom of the page:
Brenton Bank
Brenton Banks, Inc.
Suite 200, Capital Square
400 Locust Street
Des Moines, Iowa 50309
Telephone 800/627-3686
www.brentonbank.com
www.brentoninvestments.com
Appendix to Annual Report
Referencing Graphic and Image Material
All graphic and image material has been described in text of the annual
report. Set forth below is a list of such material.
1. Cover - first unnumbered page of the Annual Report - center of page
spreading from left edge to right edge of page are photographs of faded faces
of three people. On the top of the photographs is a circular graphic with
lines leading to the right edge of the page.
2. Text on cover page - first unnumbered page of the Annual Report -
centered on top one-third of the page:
More Than A Bank
3. Text on cover page - first unnumbered page of the Annual Report -
centered on bottom two-thirds of the page:
BRENTON
4. Text on cover page - first unnumbered page of the Annual Report -
centered at the bottom of the page:
Brenton Banks, Inc.
1999 Summary Annual Report
5. Text (left hand side) - Table of Contents, on page 1 of the Annual
Report.
6. Three bar graphs (right hand side), on page 2 of the Annual Report,
showing Net Income from 1995-1999; Diluted Net Income per Common Share and
Dividends per Common Share (Restated for stock splits/dividends) from 1995-
1999; and Total Assets from 1995-1999.
7. Small graphic, on page 3 of the Annual Report, on a graph showing two
lines of growth, with text centered underneath.
8. One photograph and text (upper center of the page), on page 4 of the
Annual Report, of eleven employees.
9. One photograph and text (left hand edge of page), on page 4 of the Annual
Report, of Salisbury House, a historic mansion in Des Moines, Iowa.
10. Text (bottom of photograph), on page 4 of the Annual Report, stating who
took the photograph (Photo courtesy of Scott Little).
11. Photograph and text (left hand edge of the page), on page 5 of the
Annual Report, of State Capital building.
12. Photograph and text (right hand corner of the page), on page 5 of the
Annual Report, of architect's rendering of the Percival Scientific's (a
client) new building.
13. Photograph (one-third of page to right hand edge of page), on page 6 of
the Annual Report, of soybean field with tractor and wagon.
14. Photograph (top of page on the right hand side of the page), on page 7
of the Annual Report, of outside front of Brenton Bank office building in
Coralville, Iowa.
15. Floor plan (bottom of page on the right hand side of the page), on page
7 of the Annual Report, of Coralville, Iowa office.
16. Photograph (top of page in the right hand corner of the page), on page 8
of the Annual Report, of pen on top of paper.
17. Photograph (bottom right hand corner of the page), on page 8 of the
Annual Report, of a home under construction.
18. Four small photographs (column going down the page on the right side of
the page), on page 9 of the Annual Report, of a finger on a keyboard, man
sitting at a keyboard, graphic of first part of an Internet address, and $
signs on a circuit board.
19. Photograph with text (upper right hand corner of the page), on page 10
of the Annual Report, of a teller line in a bank office from the teller's
view.
20. Photograph with text (centered in the middle of the bottom half of the
page), on page 10 of the Annual Report, of a windmill during the Pella Tulip
Festival in Pella, Iowa.
21. Graphic (upper left hand corner of the page), on page 11 of the Annual
Report, in the shape of an oval, with four smaller ovals inside representing
lines of business (Business Banking, Personal Banking, Investments, Insurance
Services). An inner circle states Relationship Manager with the innermost
circle showing Client.
22. Photograph (lower right hand corner of the page), on page 11 of the
Annual Report, of stock certificates.
23. Photograph (two-thirds of the page), on page 12 of the Annual Report, of
two women looking down at a desktop.
24. Text (lower left hand corner of the page) - on page 12 of the Annual
Report, that goes along with the stock certificates that are located on page
11 (lower right hand corner of the page) of the Annual Report.
25. Two bar graphs (left hand side), on page 13 of the Annual Report,
showing Return on Average Equity from 1995-1999 and Noninterest Income as a
Percent of Total Operating Income from 1995-1999.
26. Back Cover - last unnumbered page of the Annual Report - Text (centered
in the top one-third of the page):
The Brenton Difference
27. Back Cover - last unnumbered page of the Annual Report - circular
graphic (middle of the page), titled "The Brenton Difference", with outer
layer showing four lines of business with subheadings listing products and
services available in each line of business.
Business Banking
Cash Management
Deposit Accounts
Business and Ag Loans
International Banking Services
Risk Management
Insurance
Employee Benefits
Personal Banking
Credit Cards
Personal & Private Banking
Residential Mortgages
Home Equity Loans/Lines of Credit
Investments
Retirement Planning
Investment Management
Trust and Estate Planning
Next inner circle shows four methods of gaining access to the lines of
business.
Brenton Direct
Branch
Brenton Online
Anytime Line
Next small circle shows Relationship Manager and the innermost rectangle
shows YOU (referring to clients).
28. Back Cover - last unnumbered page of the Annual Report - Text (centered
in the bottom of the page):
Brenton Bank
Brenton Banks, Inc.
Suite 200, Capital Square
400 Locust Street
Des Moines, Iowa 50309
Telephone 800/627-3686
www.brentonbank.com
www.brentoninvestments.com