Exhibit 99
Regional Bankshares, Inc.
and its subsidiary,
HERITAGE
Community Bank
September 30, 2005
Financial Report
206 South Fifth Street, Hartsville
(843) 383-4333
Financial Highlights
Income Statement Data Nine Months Ended September 30
------------------------------
2005 2004 Percent
(unaudited) (unaudited) Change
----------- ----------- ------
Net Interest Income ................ $2,318,678 $1,923,814 20.53%
Loan Loss Provision ................ 84,000 100,000 (16.00)%
Noninterest Income ................. 402,139 412,855 (2.60)%
Income Taxes ....................... 199,207 141,322 40.96%
Net Income ......................... 339,193 242,049 40.13%
Per Share Data
Average Shares Outstanding (1) ..... 586,985 581,208 0.99%
Basic (2) .......................... $ 0.58 $ 0.42 38.10%
Diluted (3) ........................ $ 0.56 $ 0.40 40.00%
Three Months Ended September 30
-------------------------------
2005 2004 Percent
---- ---- -------
(unaudited) (unaudited) Change
Net Interest Income ................... $790,671 $684,046 15.59%
Loan Loss Provision ................... 24,000 45,000 (46.67)%
Noninterest Income .................... 153,530 153,741 (0.14)%
Income Taxes .......................... 81,986 61,218 33.92%
Net Income ............................ 139,597 105,660 32.12%
Per Share Data
Average Shares Outstanding (1) ........ 613,165 606,541 1.09%
Basic (2) ............................. $ 0.23 $ 0.17 35.29%
Diluted (3) ........................... $ 0.22 $ 0.17 29.41%
Balance Sheet Data September 30, December 31, Percent
2005 2004 Change
---- ---- ------
(unaudited)
Total Assets .................. $ 74,684,009 $ 70,260,401 6.30%
Gross Loans ................... 56,205,697 55,052,377 2.09%
Allowance for Loan Losses ..... (650,293) (589,765) 10.26%
Investment Securities ......... 7,292,762 4,001,705 82.24%
Total Deposits ................ 61,493,022 57,691,196 6.59%
Total Interest-Bearing ........ 60,455,712 56,660,219 6.70%
Liabilities
Shareholders' Equity .......... 5,467,067 5,093,599 7.33%
Shares Outstanding (1) ........ 692,759 684,684 1.18%
Book Value per Share .......... $ 7.89 $ 7.44 6.05%
1 Adjusted to reflect 20% stock dividend paid in 2005.
2 Net income divided by average shares outstanding.
3 Net income divided by average shares outstanding plus exercisable options
and warrants.
To Our Shareholders and Friends:
We are pleased to report the results of our operations for the first nine months
of 2005 and the quarter ended September 30, 2005. The results continue to show
strong growth in earnings. Loan demand has slowed somewhat, while credit quality
continues to be excellent.
During the first nine months of 2005:
o total assets of the Bank grew from $70,260,401 to $74,684,009 an
increase of 6.30%
o loans outstanding grew from $55,052,377, to $56,205,697, an increase
of 2.09%
o deposits grew from $57,691,196 to $61,493,022, an increase of 6.59%
o net income after taxes grew from $242,049 in 2004 to $339,193 in 2005,
an increase of 40.13%.
During the quarter ended September 30, 2005 compared to 2004:
o net interest income grew from $684,046 to $790,671 an increase of
15.59%
o net income after taxes grew from $105,660 to $139,597, an increase of
32.12%.
We are excited to be occupying our permanent office in McBee and invite you to
drop in and visit as you travel through the community. We will also be moving in
to our new operations center on Westfield Street in Hartsville by the end of
November. These improvements will allow us to better serve you.
In appreciation for your investment in Regional Bankshares and our improved
profitability, the Board of Directors approved a 20% stock dividend to
shareholders of record as of August 31, 2005. The dividend was paid on September
1, 2005. Thank you for your continued confidence.
Goz Segars
Chairman
Curtis A. Tyner, Sr.
President & CEO
Corporate Information
Stock Transfer Agent
Regional Bankshares, Inc.
206 South Fifth Street
Hartsville, SC 29550
For Additional inquiries
Mr. Curtis A. Tyner, Sr., President and CEO
Regional Bankshares, Inc.
206 South Fifth Street
Hartsville, South Carolina 29550