EXHIBIT 99.1
FOR IMMEDIATE RELEASE
MEDIA CONTACT: James E. Adams, 419-783-8910, rfcmkt@rurban.net
INVESTOR CONTACT: Valda Colbart, 419-784-2759, rfcinv@rurban.net
RURBAN FINANCIAL CORP. ANNOUNCES SECOND QUARTER 2005 RESULTS
DEFIANCE, Ohio, July 21, 2005 - - Rurban Financial Corp. (Nasdaq: RBNF) today
announced a net loss of $113.7 thousand, or $0.02 per diluted share, for the
second quarter of 2005, compared with net income of $709.0 thousand, or $0.16
per diluted share, for the second quarter of 2004. Current quarter results were
impacted by the acquisition and integration on June 17th of two branches located
in the Lima, Ohio market and the pending acquisition of Exchange Bancshares,
Inc., located in the metropolitan Toledo, Ohio market, as well as a higher loan
loss provision to address changing collateral values in the auto lease portfolio
in response to recent automakers' discount programs. On a year-to-date basis,
net income totaled $524.8 thousand, or $0.11 per diluted share, in 2005 compared
with $1.3 million, or $0.29 per diluted share, for the same period a year ago.
Kenneth A. Joyce, President and Chief Executive Officer, commented, "We continue
to execute the expansion strategy we implemented following our release from the
Regulatory Written Agreement earlier this year, and have commissioned a formal
study to identify and optimize branch locations within our expanded footprint.
We are making progress on several fronts, and we have begun to receive
recognition for our efforts. This quarter, Rurban was included in the Russell
Microcap Index as one of the top 4,000 publicly-traded companies in the U.S.
based on our market cap.
"We are pleased with our initial reception in the Lima market. Our new regional
president has made exciting progress in the short period of time he has been on
board with Rurban. However, the additional expenses associated with establishing
the Lima region have offset the progress we have made in cost reductions
elsewhere in the company. We have also been incurring additional expenses
associated with our pending acquisition of Exchange Bancshares, which is
scheduled for completion later this year. The costs of these expansion
initiatives and a branch market optimization study for the second quarter were
$326.0. We believe we are making an investment in Rurban's future, and we look
forward to the long-term positive impact our expansion efforts will have on
Rurban's revenue growth."
Mr. Joyce continued, "Overall asset quality continues to improve. Classified
assets were $2.5 million lower this quarter compared with the first quarter of
this year, and lower by over $14.7 million since a year ago. Net charge-offs
continue to be minimized as we work our problems assets down without the need
for significant additional reserves.
"However, we have recently noticed a significant drop in used car values in
response to the recent automakers' campaigns to provide employee vehicle-buying
discounts to the general public. We have adjusted collateral valuations
appropriately, and felt it was
prudent to add an additional $352.0 thousand to our loan loss reserve this
quarter."
Earnings: (Three months ended) June 2005 March 2005 June 2004
- ---------------------------------- --------- ---------- ---------
(dollars in thousands except per share data)
--------------------------------------------
Diluted EPS $ (0.02) $ 0.14 $ 0.16
Net interest income $ 2,927 $ 2,997 $ 2,910
Provision (credit) for loan losses $ 352 $ 0 $ (340)
Non-interest income $ 4,419 $ 4,411 $ 4,083
Non-interest expense $ 7,245 $ 6,520 $ 6,565
Net income (loss) $ (114) $ 638 $ 709
Total revenue for the second quarter of 2005, consisting of net interest income
plus non-interest income, increased 5.1% over the prior-year second quarter to
$7.3 million. Net interest income was virtually unchanged from the prior-year
second quarter and the preceding first quarter of 2005. The 18 basis point
decline in net interest margin from 3.28% to 3.10% from the preceding quarter
was offset by a 1.4% increase in average earning assets (5.6% annualized).
Rurban has begun utilizing the excess liquidity from its recently acquired
branches to pay down higher-cost time deposits and borrowings as they mature.
Non-interest income rose 8.2% from year-ago levels, primarily from growth in
data processing fees. Mr. Joyce noted that, "RDSI continues to expand its
revenue base, and provide benefits to Rurban beyond fee income. Exchange
Bancshares, a client of RDSI, is on the same data processing system as Rurban,
so that integration costs and complexities in the acquisition will be
minimized." Data service fees were $2.9 million for the second quarter, up 18.4%
from the prior-year quarter. Year-to-date, data service fees were $5.8 million,
an increase of 13.9%.
Non-interest expense for the second quarter of 2005 increased 10.4%, or $680.2
thousand, from prior-year second quarter levels of $7.2 million. Included in the
$680.2 thousand increase were internal costs of approximately $326.0 thousand
related to our expansion initiatives, namely the acquisition, integration and
staffing of the two Lima branches, costs associated with the pending Exchange
Bancshares acquisition and the branch market optimization study. Expense growth
was partially offset by eligible tax credits from an Ohio Education Tax Program.
CREDIT QUALITY: June 2005 March 2005 June 2004
- ----------------------------- --------- ---------- ---------
(dollars in thousands)
----------------------
Net charge-offs/(recoveries) $ (58) $ 99 $ 982
Net charge-offs/avg. loans (0.09)% 0.15% 1.45%
Allowance for loan loss $ 5,210 $ 4,800 $ 6,923
Allowance for loan loss/loans 1.91% 1.81% 2.56%
Classified Loans:
Substandard $ 10,785 $ 9,383 $ 19,102
Doubtful 9,917 14,226 17,751
--------- ---------- ---------
Total Classified Loans $ 20,702 $ 23,609 $ 36,853
"Asset quality has shown consistent improvement over the past six quarters,"
noted Mr. Joyce. Non-performing assets (non-performing loans plus OREO) were
$15.8 million at the end of the second quarter of 2005, a decline of $900.0
thousand from the previous quarter and $1.3 million from the second quarter of
2004. Additionally, classified loans were $20.7 million at June 30, 2005, down
$2.9 million from the first quarter of 2005 and $16.2 million from the year-ago
period. During the current quarter, Rurban experienced net recoveries on loans
previously charged off of $58.0 thousand compared with net charge-offs of $99.0
thousand in the first quarter of 2005 and $982.0 thousand in the second quarter
of 2004. The loan loss reserve now stands at 1.91% of period-end loans.
Stockholders' equity at second quarter-end totaled $50.6 million, an increase of
$2.4 million, or 4.9%, from twelve months ago, and equivalent to 11.2% of total
assets. The total risk-based capital ratio was 19.8% at period-end, well in
excess of the "well-capitalized" regulatory threshold.
"We are excited about the attractive new markets in which we are establishing a
community banking presence," Joyce concluded. "We look forward to expanding our
presence in these markets and enhancing profitability as a full-service provider
of high-quality banking services."
ABOUT RURBAN FINANCIAL CORP.
Rurban Financial Corp. is a publicly-held financial services holding company
based in Defiance, Ohio. Rurban's wholly-owned subsidiaries are The State Bank
and Trust Company, Reliance Financial Services, N.A., Rurbanc Data Services,
Inc. (RDSI) and RFCBC, Inc. The bank offers a full range of financial services
through its 13 offices in Defiance, Paulding, Fulton and Allen Counties.
Reliance Financial Services offers a diversified array of trust and financial
services to customers throughout the Midwest. RDSI provides data processing
services to community banks in Ohio, Michigan, Indiana, Illinois and Missouri.
Rurban's common stock is quoted on the Nasdaq National Market under the symbol
RBNF. The Company currently has 10,000,000 shares of stock authorized and
4,571,317 shares outstanding. The Company's website is
http://www.rurbanfinancial.net.
FORWARD-LOOKING STATEMENTS
Certain statements within this document, which are not statements of historical
fact, constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties and actual results may differ materially from those
predicted by the forward-looking statements. These risks and uncertainties
include, but are not limited to, risks and uncertainties inherent in the
national and regional banking, insurance and mortgage industries, competitive
factors specific to markets in which Rurban and its subsidiaries operate, future
interest rate levels, legislative and regulatory actions, capital market
conditions, general economic conditions, geopolitical events, the loss of key
personnel and other factors.
Forward-looking statements speak only as of the date on which they are made, and
Rurban undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which the statement is made.
All subsequent written and oral forward-looking statements attributable to
Rurban or any person acting on our behalf are qualified by these cautionary
statements.
ADDITIONAL INFORMATION
Rurban will be filing a Registration Statement on Form S-4, which will include
the joint proxy statement/prospectus of Rurban and Exchange Bancshares, with the
SEC concerning the proposed merger. INVESTORS AND SHAREHOLDERS ARE URGED TO READ
THE JOINT PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE BECAUSE
IT WILL CONTAIN IMPORTANT INFORMATION. Investors and shareholders will be able
to obtain a free copy of the joint proxy statement/prospectus, as well as other
filings containing information about Rurban and Exchange Bancshares, without
charge, at the SEC's web site (http://www.sec.gov). In addition, investors and
shareholders may obtain free copies of the documents filed with the SEC by
Rurban at Rurban's web site at http://www.rurbanfinancial.net or by contacting
Rurban's investor relations via telephone at (419) 784-2759.
Rurban, Exchange Bancshares and their respective directors and executive
officers may be deemed to be participants in the solicitation of proxies from
the shareholders of Exchange Bancshares in connection with the proposed merger
transaction. Information regarding directors and executive officers of Rurban
and Exchange Bancshares and their respective interests in the proposed merger
transaction will be available in the joint proxy statement/prospectus and other
relevant materials to be filed with the SEC when they become available. This
communication shall not constitute an offer to sell or the solicitation of an
offer to buy any securities.
RURBAN FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(UNAUDITED)
2ND QTR 1ST QTR 4TH QTR 3RD QTR 2ND QTR
(dollars in thousands except per share data) 2005 2005 2004 2004 2004
- ----------------------------------------------------- --------- ------- ------- ------- -------
EARNINGS
Net interest income $ 2,927 2,997 3,029 3,154 2,910
Provision for loan loss $ 352 0 (529) 320 (340)
Other income $ 4,419 4,411 4,193 4,080 4,083
Revenue (net interest income plus other income) $ 7,346 7,408 7,222 7,234 6,993
Other expense $ 7,245 6,520 6,560 5,911 6,565
NET INCOME $ (114) 638 715 699 709
PER SHARE DATA
Basic earnings per share $ (0.02) 0.14 0.16 0.15 0.16
Diluted earnings per share $ (0.02) 0.14 0.16 0.15 0.16
Book value per share $ 11.07 10.90 11.01 10.95 10.56
Tangible book value per share $ 9.63 10.31 10.42 10.37 9.96
Cash dividend per share $ 0.05 0.05 0 0 0
PERFORMANCE RATIOS
Return on average assets -0.11% 0.62% 0.69% 0.66% 0.68%
Return on average equity -0.90% 5.08% 5.69% 5.73% 5.84%
Net interest margin (tax equivalent) 3.10% 3.28% 3.24% 3.35% 3.10%
Other expense / Average assets 6.91% 6.29% 6.32% 5.58% 6.28%
Efficiency Ratio Tax Equivalent - consolidated 98.16% 87.66% 90.45% 81.39% 93.88%
Efficiency Ratio - bank (non-GAAP) 84.81% 79.83% 81.90% 67.75% 80.68%
Other income/Total operating revenue (net interest
income plus other income) 60.16% 59.54% 58.06% 56.40% 58.39%
MARKET DATA PER SHARE
Market value per share -- Period end $ 12.90 14.15 13.90 12.88 12.28
Market as a % of book 1.17 1.30 1.26 1.18 1.16
Cash dividend yield 1.55% 1.41% 0.00% 0.00% 0.00%
Common stock dividend payout ratio - 35.71% 0.00% 0.00% 0.00%
Period-end common shares outstanding (000) 4,571 4,568 4,568 4,568 4,567
Common stock market capitalization ($000) $ 58,966 64,637 63,495 58,835 56,086
CAPITAL & LIQUIDITY
Equity to assets 11.2% 12.0% 12.1% 12.0% 11.6%
Period-end tangible equity to assets 9.5% 11.4% 11.5% 11.4% 11.0%
Tier 1 risk-based capital ratio 18.5% 21.3% 21.8% 20.0% 19.7%
Total risk-based capital ratio 19.8% 22.5% 23.1% 21.2% 21.0%
Average loans to average deposits 89.5% 93.6% 93.0% 93.1% 90.0%
ASSET QUALITY
Net charge-offs / (Recoveries) $ (58) 99 (60) 1,875 982
Net loan charge-offs (Ann.) / Average loans (0.09%) 0.15% (0.09%) 2.76% 1.45%
Non-performing loans (includes 90-days past due) $ 13.5 15.9 14.4 16.5 16.5
OREOs $ 2.3 0.8 0.7 0.0 0.6
Classified assets $ 24,315 26,829 30,049 33,487 39,016
90-day past dues $ 9.6 11.3 11.8 10.3 10.1
Non-performing Assets + 90-day past due/ Total
assets - consolidated 3.77% 4.10% 3.71% 4.05% 4.14%
Allowance for loan losses/ Total loans 1.91% 1.81% 1.85% 1.97% 2.56%
Allowance for loan losses/Non-performing Assets
(includes 90 days past due) 28.4% 28.4% 31.2% 32.7% 40.1%
END OF PERIOD BALANCES
Total loans, net of unearned income $ 271,827 266,046 264,481 272,956 270,692
Total assets $ 451,048 414,480 415,349 415,827 415,026
Deposits $ 340,405 284,917 279,624 289,982 290,991
Stockholders' equity $ 50,600 49,777 50,306 50,004 48,227
Full-time equivalent employees 230 229 225 223 223
AVERAGE BALANCES
Loans $ 265,488 264,815 266,079 271,387 271,333
Total earning assets $ 379,601 374,307 375,290 377,308 380,135
Total assets $ 419,522 414,544 415,344 423,419 418,388
Deposits $ 296,714 282,864 286,213 291,616 301,493
Stockholders' equity $ 50,476 50,259 50,256 48,801 48,538
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Second Quarter Ended June 30, 2005 and 2004
Second Quarter Second Quarter Increase/(Decrease)
2005 2004 $
-------------- -------------- -------------------
Interest income
Loans
Taxable $ 3,997,200 $ 3,920,218 $ 76,982
Tax-exempt 14,823 16,580 (1,757)
Securities
Taxable 984,949 862,159 122,790
Tax-exempt 52,173 39,171 13,002
Other 83,959 10,990 72,969
-------------- ------------ ------------
Total interest income 5,133,104 4,849,118 283,986
Interest expense
Deposits 1,293,323 1,151,545 141,778
Other borrowings 66,929 74,846 (7,917)
Retail Repurchase Agreements 18,806 6,600 12,206
Federal Home Loan Bank advances 554,324 429,997 124,327
Trust preferred securities 272,402 276,251 (3,849)
-------------- ------------ ------------
Total interest expense 2,205,784 1,939,239 266,545
-------------- ------------ ------------
NET INTEREST INCOME 2,927,320 2,909,879 17,441
Provision for loan losses 352,000 (340,000) (692,000)
-------------- ------------ ------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 2,575,320 3,249,879 (674,559)
Noninterest income
Data service fees 2,872,763 2,425,862 446,901
Trust fees 779,047 732,459 46,588
Customer service fees 446,286 505,340 (59,054)
Net gain on sales of loans 9,278 9,919 (641)
Net realized gains (losses) on sales of
available-for-sale securities 0 62,887 (62,887)
Loan servicing fees 79,297 97,266 (17,969)
Gain (loss) on sale of assets 56,034 96,746 (40,712)
Other income 175,981 152,405 23,576
-------------- ------------ ------------
Total noninterest income 4,418,686 4,082,884 335,802
Noninterest expense
Salaries and employee benefits 3,501,021 3,295,728 205,293
Net occupancy expense 294,243 235,279 58,964
Equipment expense 1,283,692 1,020,485 263,207
Data processing fees 113,499 68,023 45,476
Professional fees 710,539 677,428 33,111
Marketing expense 83,254 74,571 8,683
Printing and office supplies 130,591 107,863 22,728
Telephone and communication 164,134 166,643 (2,509)
Postage and delivery expense 83,975 85,811 (1,836)
State, local and other taxes 88,825 211,502 (122,677)
Employee expense 265,459 231,049 34,410
Other expenses 525,708 390,330 135,378
-------------- ------------ ------------
Total noninterest expense 7,244,940 6,564,712 680,228
-------------- ------------ ------------
INCOME BEFORE INCOME TAX EXPENSE (250,934) 768,051 (1,018,985)
Income tax expense (137,232) 59,008 (196,240)
-------------- ------------ ------------
NET INCOME $ (113,702) $ 709,043 $ (822,745)
============== ============ ============
Earnings per common share:
Basic $ (0.02) $ 0.16 $ (0.18)
============== ============ ============
Diluted $ (0.02) $ 0.16 $ (0.18)
============== ============ ============
Average diluted shares outstanding 4,569,316 4,557,335
============== ============
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Second Quarter Ended June 30, 2005 and First Quarter 2005
Second Quarter First Quarter Increase/(Decrease)
2005 2005 $
-------------- ------------- -------------------
Interest income
Loans
Taxable $ 3,997,200 $ 3,913,966 $ 83,234
Tax-exempt 14,823 15,506 (683)
Securities
Taxable 984,949 1,054,459 (69,510)
Tax-exempt 52,173 42,024 10,149
Other 83,959 18,258 65,701
-------------- ------------- ------------
Total interest income 5,133,104 5,044,213 88,891
Interest expense
Deposits 1,293,323 1,103,421 189,902
Other borrowings 66,929 70,274 (3,345)
Retail Repurchase Agreements 18,806 17,648 1,158
Federal Home Loan Bank advances 554,324 586,552 (32,228)
Trust preferred securities 272,402 269,408 2,994
-------------- ------------- ------------
Total interest expense 2,205,784 2,047,303 158,481
-------------- ------------- ------------
NET INTEREST INCOME 2,927,320 2,996,910 (69,590)
Provision for loan losses 352,000 0 (352,000)
-------------- ------------- ------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 2,575,320 2,996,910 (421,590)
Noninterest income
Data service fees 2,872,763 2,955,705 (82,942)
Trust fees 779,047 804,493 (25,446)
Customer service fees 446,286 436,716 9,570
Net gain on sales of loans 9,278 8,070 1,208
Net realized gains (losses) on sales of
available-for-sale securities 0 (8,750) 8,750
Loan servicing fees 79,297 66,843 12,454
Gain (loss) on sale of assets 56,034 (38,958) 94,992
Other income 175,981 186,406 (10,425)
-------------- ------------- ------------
Total noninterest income 4,418,686 4,410,525 8,161
Noninterest expense
Salaries and employee benefits 3,501,021 3,231,323 269,698
Net occupancy expense 294,243 290,155 4,088
Equipment expense 1,283,692 1,253,099 30,593
Data processing fees 113,499 91,197 22,302
Professional fees 710,539 518,530 192,009
Marketing expense 83,254 80,716 2,538
Printing and office supplies 130,591 151,242 (20,651)
Telephone and communication 164,134 149,803 14,331
Postage and delivery expense 83,975 74,051 9,924
State, local and other taxes 88,825 144,527 (55,702)
Employee expense 265,459 236,071 29,388
Other expenses 525,708 299,186 226,522
-------------- ------------- ------------
Total noninterest expense 7,244,940 6,519,900 725,040
-------------- ------------- ------------
INCOME BEFORE INCOME TAX EXPENSE (250,934) 887,535 (1,138,469)
Income tax expense (137,232) 249,070 (386,302)
-------------- ------------- ------------
NET INCOME $ (113,702) $ 638,465 $ (752,167)
============== ============= ============
Earnings per common share:
Basic $ (0.02) $ 0.14 $ (0.16)
============== ============= ============
Diluted $ (0.02) $ 0.14 $ (0.16)
============== ============= ============
Average diluted shares outstanding 4,569,316 4,572,788
============== =============
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Six Months Ended June 30, 2005 and 2004
Six Months Six Months Increase/(Decrease)
2005 2004 $
----------- ------------ -------------------
Interest income
Loans
Taxable $ 7,911,166 $ 8,161,530 $ (250,364)
Tax-exempt 30,329 35,226 (4,897)
Securities
Taxable 2,039,407 1,644,681 394,726
Tax-exempt 94,198 80,493 13,705
Other 102,217 41,065 61,152
----------- ------------ ------------
Total interest income 10,177,317 9,962,995 214,322
Interest expense
Deposits 2,396,744 2,430,576 (33,832)
Other borrowings 137,204 233,204 (96,000)
Retail Repurchase Agreements 36,453 15,095 21,358
Federal Home Loan Bank advances 1,140,876 837,560 303,316
Trust preferred securities 541,810 552,501 (10,691)
----------- ------------ ------------
Total interest expense 4,253,087 4,068,936 184,151
----------- ------------ ------------
NET INTEREST INCOME 5,924,230 5,894,059 30,171
Provision for loan losses 352,000 (190,000) (542,000)
----------- ------------ ------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 5,572,230 6,084,059 (511,829)
Noninterest income
Data service fees 5,828,468 5,117,100 711,368
Trust fees 1,583,540 1,575,989 7,551
Customer service fees 883,002 1,019,186 (136,184)
Net gain on sales of loans 17,348 20,047 (2,699)
Net realized gains (losses) on sales of
available-for-sale securities (8,750) 123,962 (132,712)
Loan servicing fees 146,140 194,031 (47,891)
Gain (loss) on sale of assets 17,076 78,331 (61,255)
Other income 362,386 289,253 73,133
----------- ------------ ------------
Total noninterest income 8,829,210 8,417,899 411,311
Noninterest expense
Salaries and employee benefits 6,732,345 6,550,896 181,449
Net occupancy expense 584,398 486,705 97,693
Equipment expense 2,536,791 2,059,578 477,213
Data processing fees 204,697 208,547 (3,850)
Professional fees 1,229,070 1,145,947 83,123
Marketing expense 163,971 178,781 (14,810)
Printing and office supplies 281,833 253,639 28,194
Telephone and communication 313,937 312,469 1,468
Postage and delivery expense 158,027 176,400 (18,373)
State, local and other taxes 233,353 414,601 (181,248)
Employee expense 501,530 388,229 113,301
Other expenses 824,888 678,119 146,769
----------- ------------ ------------
Total noninterest expense 13,764,840 12,853,911 910,929
----------- ------------ ------------
INCOME BEFORE INCOME TAX EXPENSE 636,600 1,648,047 (1,011,447)
Income tax expense 111,838 326,982 (215,144)
----------- ------------ ------------
NET INCOME $ 524,762 $ 1,321,065 $ (796,303)
=========== ============ ============
Earnings per common share:
Basic $ 0.11 $ 0.29 $ (0.18)
=========== ============ ============
Diluted $ 0.11 $ 0.29 $ (0.17)
=========== ============ ============
Average diluted shares outstanding 4,578,981 4,566,066
=========== ============
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
June 30, 2005, December 31, 2004 and June 30, 2004
June December June
2005 2004 2004
------------- ------------- -------------
ASSETS
Cash and due from banks $ 7,893,845 $ 10,617,766 $ 13,171,717
Federal funds sold 23,200,000 0 3,000,000
------------- ------------- -------------
Cash and cash equivalents 31,093,845 10,617,766 16,171,717
Interest-earning deposits in other financial institutions 150,000 150,000 250,000
Available-for-sale securities 108,719,426 108,720,491 98,097,284
Loans held for sale 350,800 112,900 0
Loans, net of unearned income 271,827,036 264,480,789 270,692,050
Allowance for loan losses (5,210,464) (4,899,063) (6,922,995)
Premises and equipment, net 9,405,152 7,740,442 6,884,088
Purchased software 4,378,941 4,564,474 3,960,466
Federal Reserve and Federal Home Loan Bank Stock 2,846,600 2,793,000 2,789,700
Foreclosed assets held for sale, net 2,287,981 720,000 405,000
Accrued interest receivable 2,094,732 1,984,452 1,881,886
Deferred income taxes - - 3,114,552
Goodwill 6,506,320 2,144,304 2,144,304
Core deposits and other intangibles 1,068,890 542,978 593,005
Cash value of life insurance 9,287,891 9,146,816 10,005,213
Other assets 6,240,743 6,529,397 4,959,292
------------- ------------- -------------
Total assets $ 451,047,893 $ 415,348,746 $ 415,025,562
============= ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Demand $ 41,422,203 $ 37,831,810 $ 33,300,989
Savings, interest checking and money market 108,232,569 87,795,630 94,934,794
Time 190,750,003 153,996,874 162,755,279
------------- ------------- -------------
Total deposits 340,404,775 279,624,314 290,991,062
Notes payable 2,405,527 3,079,656 3,050,037
Advances from Federal Home Loan Bank 38,000,000 56,000,000 54,000,000
Fed Funds Purchased 0 7,500,000 -
Retail Repurchase Agreements 4,623,964 4,059,151 3,115,032
Trust preferred securities 10,310,000 10,310,000 10,310,000
Accrued interest payable 1,115,358 994,114 2,708,568
Deferred income taxes 274,597 523,111 -
Other liabilities 3,314,136 2,952,605 2,623,647
------------- ------------- -------------
Total liabilities 400,448,357 365,042,951 366,798,346
Shareholders' Equity
Common stock: stated value $2.50 per share;
shares authorized: 10,000,000; shares issued: 4,575,702;
shares outstanding: 2005 - 4,571,317, December 31, 2004 -
4,568,388 and June 30, 2004 - 4,567,296 11,439,255 11,439,255 11,439,255
Additional paid-in capital 10,999,484 11,003,642 11,007,086
Retained earnings 29,011,619 28,943,736 27,530,508
Accumulated other comprehensive income (loss),
net of tax of ($316,265) in 2005 and ($413,764) in December 31,
2004 and ($706,700) in June 30, 2004 (613,926) (803,189) (1,371,828)
Unearned ESOP shares - - (84,857)
Treasury stock (236,896) (277,649) (292,948)
------------- ------------- -------------
Total shareholders' equity 50,599,536 50,305,795 48,227,216
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Total liabilities and shareholders' equity $ 451,047,893 $ 415,348,746 $ 415,025,562
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