EXHIBIT 99.1
MEDIA CONTACT: Jim Adams, 419-783-8910 rfcmkt@rurban.net
INVESTOR CONTACT: Valda Colbart, 419-784-2759, rfcinv@rurban.net
RURBAN FINANCIAL CORP. REPORTS THIRD QUARTER EARNINGS
DEFIANCE, Ohio, October 20, 2005 - - Rurban Financial Corp. (Nasdaq: RBNF) today
reported third quarter earnings of $492.2 thousand, or $0.11 per diluted share,
compared with a net loss of $113.7 thousand, or $0.02 per diluted share, for the
second quarter of this year, and with net income of $698.6 thousand, or $0.15
per diluted share, for the third quarter of 2004. The current quarter's
favorable comparison with the linked quarter resulted from increased net
interest income, a decline in non-interest expense, and a reduction in the loan
loss provision as asset quality improvements were again noted. The
year-over-year comparison reflects modest revenue growth and improved asset
quality offset by higher levels of non-interest expense associated with
expansion initiatives. On a year-to-date basis, 2005 net income amounted to $1.0
million, or $0.22 per diluted share, compared with 2004 net income of $2.0
million, or $0.44 per diluted share.
Kenneth A. Joyce, President and Chief Executive Officer, commented, "Once again,
improved asset quality has contributed to improved earnings. We are pleased with
our success to date in resolving problem assets and continue to gradually reduce
our overall exposure. Meanwhile, we are making progress with our expansion plans
- - gaining recognition in the Lima market and obtaining shareholder approval from
the Exchange Bancshares, Inc. shareholders so that we can move ahead to complete
the acquisition, pending regulatory approval.
"Our data processing services continue to drive revenue growth while we work to
increase loan demand and prepare for the interest rate environment to stabilize.
The modest improvement we have experienced in revenue growth has been
overshadowed by costs associated with our recent expansion initiatives.
Year-over-year, these higher levels of spending reflect our strong commitment to
Rurban's future. Yet, we are pleased to announce that this phase is drawing to a
close. Expenses are beginning to moderate, loans are gradually trending upward,
and we have an excellent team in place to take advantage of market
opportunities."
Earnings: (Three months ended) September 2005 June 2005 September 2004
- ------------------------------ -------------- --------- --------------
(dollars in thousands except per share data)
-------------------------------------------
Diluted EPS $ 0.11 $ (0.02) $ 0.15
Net interest income $ 2,982 $ 2,927 $ 3,154
Provision for loan losses $ (382) $ 352 $ 320
Non-interest income $ 4,386 $ 4,419 $ 4,080
Non-interest expense $ 7,010 $ 7,245 $ 5,911
Net income $ 492 $ (114) $ 699
Total revenue for the third quarter of 2005, consisting of net interest income
plus non-interest income, was $7.4 million. Excluding gains on the sale of
investment securities and of repossessed assets, total revenue increased 1.1%
over the prior quarter and 3.3% over the linked
year quarter. Net interest income was $3.0 million, an improvement of $55
thousand from the second quarter of 2005, principally as a result of the Lima
market expansion; average earning assets rose nearly 6% since the beginning of
the year while the net interest margin remained flat at 3.10%. Compared with the
prior-year quarter, net interest income declined by $172 thousand as a result of
margin compression; the net interest margin narrowed 25 basis points.
Non-interest income has been a bright spot in Rurban's performance. For the
third quarter of 2005, non-interest income was $4.4 million; excluding gains on
the sale of investment securities and of repossessed assets, non-interest income
increased 10.3% from the prior-year quarter. This growth primarily reflected an
increase of $267.9 thousand, or 10.4% in data service fees, a $63.9 thousand or
73.1% increase in other income, and a $41.6 thousand or 5.7% improvement in
trust fees.
Non-interest expense for the third quarter of 2005 was $7.0 million, a decrease
of $234.5 thousand, or 3.2%, from the second quarter of 2005 and an increase of
$1.1 million or 18.6%, from the prior-year quarter. The linked quarter
comparison reflects a gradual improvement in operating efficiencies throughout
the Corporation, despite the $445.8 thousand increase in quarterly operating
expense related to the Lima market branch acquisition. The year-over-year
comparison, however was impacted by expansion initiatives, with non-interest
expenses up 10.7% from the acquisition, integration and staffing of the two Lima
branches, costs associated with the pending Exchange acquisition, and the branch
market optimization study.
CREDIT QUALITY: September 2005 June 2005 September 2004
- --------------- -------------- --------- --------------
(dollars in thousands)
--------------------------------------------
Net charge-offs/(recoveries) $ 14 $ (58) $ 1,875
Net charge-offs/avg. loans 0.02% (0.09)% 2.76%
Allowance for loan loss $ 4,814 $ 5,210 $ 5,369
Allowance for loan loss/loans 1.77% 1.91% 1.97%
Non-performing loans + OREO $ 14,734 $ 15,734 $ 16,524
Classified Loans:
Substandard $ 8,430 $ 11,116 $ 18,637
Doubtful 9,056 9,918 13,214
-------- -------- --------
Total Classified Loans $ 17,486 $ 21,034 $ 31,851
"Asset quality continues to improve with each passing quarter," commented Mr.
Joyce. "Non-performing assets (non-performing loans plus OREO) were $14.7
million at the end of the third quarter of 2005, a decline of $1.0 million from
the previous quarter and $1.8 million from the third quarter of 2004. Even
greater improvement is evident in the classified loan portfolio," Mr. Joyce
added. Classified loans were $17.5 million at September 30, 2005, down $3.5
million from the second quarter of 2005 and $14.4 million from the year-ago
period. With the reduction in classified assets, Rurban reduced its allowance
for loan losses during the current quarter by the reserve amount that was
associated with each of the credits resolved. During the current quarter, Rurban
reported net charge-offs of $14 thousand compared with a net recovery of $58
thousand in the second quarter of 2005, and a net charge-off of $1.9 million in
the third quarter of 2004. The loan loss reserve now stands at 1.77% of
period-end loans.
Stockholders' equity at third quarter-end totaled $50.3 million, equivalent to
11.5% of total assets. The total risk-based capital ratio was 22.5% at
period-end, well in excess of the "well-capitalized" regulatory threshold.
"We recently announced the results of the vote by Exchange shareholders to
approve this acquisition. We are excited to enter this dynamic suburban area on
the outskirts of Toledo. We believe that our brand of community banking will
thrive in this more urban market, providing us with access to small businesses
as well as retail customers. Both the Lima and the metropolitan Toledo markets
are natural extensions of our franchise; we believe they will enhance our
already strong position in Northwest Ohio," Joyce concluded.
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
4,575,702 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.
RURBAN FINANCIAL CORP.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(UNAUDITED)
3RD QTR 2ND QTR 1ST QTR 4TH QTR 3RD QTR
(dollars in thousands except per share data) 2005 2005 2005 2004 2004
- --------------------------------------------- ------- ------- ------- ------- -------
EARNINGS
Net interest income $ 2,982 2,927 2,997 3,029 3,154
Provision for loan loss $ (382) 352 0 (529) 320
Other income $ 4,386 4,419 4,411 4,193 4,080
Revenue (net interest income plus other income) $ 7,368 7,346 7,408 7,222 7,234
Other expense $ 7,010 7,245 6,520 6,560 5,911
NET INCOME $ 492 (114) 638 715 699
PER SHARE DATA
Basic earnings per share $ 0.11 (0.02) 0.14 0.16 0.15
Diluted earnings per share $ 0.11 (0.02) 0.14 0.16 0.15
Book value per share $ 10.99 11.07 10.90 11.01 10.95
Tangible book value per share $ 9.39 9.41 10.31 10.42 10.37
Cash dividend per share $ 0.05 0.05 0.05 0 0
PERFORMANCE RATIOS
Return on average assets 0.44% -0.11% 0.62% 0.69% 0.66%
Return on average equity 3.90% -0.90% 5.08% 5.69% 5.73%
Net interest margin (tax equivalent) 3.10% 3.10% 3.28% 3.24% 3.35%
Other expense / Average assets 6.30% 6.91% 6.29% 6.32% 5.58%
Efficiency Ratio Tax Equivalent - consolidated 94.39% 98.16% 87.66% 90.45% 81.39%
Efficiency Ratio - bank (non-GAAP) 85.54% 84.81% 79.83% 81.90% 67.75%
Other income/Total operating revenue (net
interest income plus other income) 59.53% 60.16% 59.54% 58.06% 56.40%
MARKET DATA PER SHARE
Market value per share -- Period end $ 12.75 12.90 14.15 13.90 12.88
Market as a % of book 1.16 1.17 1.30 1.26 1.18
Cash dividend yield 1.57% 1.55% 1.41% 0.00% 0.00%
Common stock dividend payout ratio 45.45% N/A 35.71% 0.00% 0.00%
Period-end common shares outstanding (000) 4,576 4,571 4,568 4,568 4,568
Common stock market capitalization ($000) $ 58,340 58,966 64,637 63,495 58,835
CAPITAL & LIQUIDITY
Equity to assets 11.5% 11.2% 12.0% 12.1% 12.0%
Period-end tangible equity to assets 9.8% 9.5% 11.4% 11.5% 11.4%
Tier 1 risk-based capital ratio 19.0% 18.1% 21.3% 21.8% 20.0%
Total risk-based capital ratio 22.5% 19.4% 22.5% 23.1% 21.2%
Average loans to average deposits 84.1% 89.5% 93.6% 93.0% 93.1%
ASSET QUALITY
Net charge-offs / (Recoveries) $ 14 (58) 99 (60) 1,875
Net loan charge-offs (Ann.) / Average loans 0.02% (0.09%) 0.15% (0.09%) 2.76%
Non-performing loans (includes 90-days past due) $ 12.5 13.5 15.9 14.4 16.5
OREOs $ 2.2 2.3 0.8 0.7 0.0
Classified assets $ 20,970 24,638 26,829 30,049 33,487
90-day past dues $ 8.7 9.6 11.3 11.8 10.3
Non-performing Assets + 90-day past due/
Total assets - consolidated 3.42% 3.77% 4.10% 3.71% 4.05%
Allowance for loan losses/ Total loans 1.77% 1.91% 1.81% 1.85% 1.97%
Allowance for loan losses/Non-performing Assets
(includes 90 days past due) 32.0% 32.3% 28.4% 31.2% 32.7%
END OF PERIOD BALANCES
Total loans, net of unearned income $ 271,409 271,827 266,046 264,481 272,956
Total assets $ 438,582 451,048 414,480 415,349 415,827
Deposits $ 318,492 340,405 284,917 279,624 289,982
Stockholders' equity $ 50,281 50,600 49,777 50,306 50,004
Full-time equivalent employees 238 230 229 225 223
AVERAGE BALANCES
Loans $ 270,985 265,488 264,815 266,079 271,387
Total earning assets $ 396,616 379,601 374,307 375,290 377,308
Total assets $ 444,815 419,522 414,544 415,344 423,419
Deposits $ 322,225 296,714 282,864 286,213 291,616
Stockholders' equity $ 50,441 50,476 50,259 50,256 48,801
</Table>
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Third Quarter Ended September 30, 2005 and 2004
Third Quarter Third Quarter Increase/(Decrease)
------------------
2005 2004 $
----------- ----------- ------------------
Interest income
Loans
Taxable $ 4,187,543 $ 4,071,529 $ 116,014
Tax-exempt 17,898 15,282 2,616
Securities
Taxable 1,095,151 925,549 169,602
Tax-exempt 71,264 39,497 31,767
Other 57,498 11,994 45,504
----------- ----------- -----------
Total interest income 5,429,354 5,063,851 365,503
Interest expense
Deposits 1,615,308 1,050,918 564,390
Other borrowings 67,162 64,335 2,827
Retail Repurchase Agreements 23,874 8,052 15,822
Federal Home Loan Bank advances 440,175 495,192 (55,017)
Trust preferred securities 300,360 290,855 9,505
----------- ----------- -----------
Total interest expense 2,446,879 1,909,352 537,527
----------- ----------- -----------
NET INTEREST INCOME 2,982,475 3,154,499 (172,024)
Provision for loan losses (382,000) 319,517 701,517
----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,364,475 2,834,982 529,493
Noninterest income
Data service fees 2,834,357 2,566,485 267,872
Trust fees 767,969 726,417 41,552
Customer service fees 526,197 499,528 26,669
Net gain on sales of loans 28,895 7,043 21,852
Net realized gains (losses) on sales of
available-for-sale securities 34,050 112,394 (78,344)
Loan servicing fees 79,186 91,216 (12,030)
Gain (loss) on sale of assets (36,011) (10,508) (25,503)
Other income 151,328 87,432 63,896
----------- ----------- -----------
Total noninterest income 4,385,971 4,080,007 305,964
Noninterest expense
Salaries and employee benefits 3,607,270 3,080,476 526,794
Net occupancy expense 312,661 235,173 77,488
Equipment expense 1,294,686 1,099,129 195,557
Data processing fees 99,085 75,702 23,383
Professional fees 467,951 512,476 (44,525)
Marketing expense 144,954 84,663 60,291
Printing and office supplies 115,320 73,506 41,814
Telephone and communication 180,261 171,529 8,732
Postage and delivery expense 77,979 85,747 (7,768)
State, local and other taxes 146,683 (5,493) 152,176
Employee expense 225,032 165,510 59,522
Other expenses 338,556 332,110 6,446
----------- ----------- -----------
Total noninterest expense 7,010,438 5,910,528 1,099,910
----------- ----------- -----------
INCOME BEFORE INCOME TAX EXPENSE 740,008 1,004,461 (264,453)
Income tax expense 247,824 305,819 (57,995)
----------- ----------- -----------
NET INCOME $ 492,184 $ 698,642 $ (206,458)
=========== =========== ===========
Earnings per common share:
Basic $ 0.11 $ 0.15 $ (0.04)
=========== =========== ===========
Diluted $ 0.11 $ 0.15 $ (0.04)
=========== =========== ===========
Average diluted shares outstanding 4,574,492 4,557,019
=========== ===========
</Table>
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Third Quarter Ended September 30, 2005 and Second Quarter 2005
Third Quarter Second Quarter Increase/(Decrease)
-------------------
2005 2005 $
------------- -------------- -------------------
Interest income
Loans
Taxable $ 4,187,543 $ 3,997,200 $ 190,343
Tax-exempt 17,898 14,823 3,075
Securities
Taxable 1,095,151 984,949 110,202
Tax-exempt 71,264 52,173 19,091
Other 57,498 83,959 (26,461)
----------- ----------- -----------
Total interest income 5,429,354 5,133,104 296,250
Interest expense
Deposits 1,615,308 1,293,323 321,985
Other borrowings 67,162 66,929 233
Retail Repurchase Agreements 23,874 18,806 5,068
Federal Home Loan Bank advances 440,175 554,324 (114,149)
Trust preferred securities 300,360 272,402 27,958
----------- ----------- -----------
Total interest expense 2,446,879 2,205,784 241,095
----------- ----------- -----------
NET INTEREST INCOME 2,982,475 2,927,320 55,155
Provision for loan losses (382,000) 352,000 734,000
----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 3,364,475 2,575,320 789,155
Noninterest income
Data service fees 2,834,357 2,872,763 (38,406)
Trust fees 767,969 779,047 (11,078)
Customer service fees 526,197 446,286 79,911
Net gain on sales of loans 28,895 9,278 19,617
Net realized gains (losses) on sales of
available-for-sale securities 34,050 0 34,050
Loan servicing fees 79,186 79,297 (111)
Gain (loss) on sale of assets (36,011) 56,034 (92,045)
Other income 151,328 175,981 (24,653)
----------- ----------- -----------
Total noninterest income 4,385,971 4,418,686 (32,715)
Noninterest expense
Salaries and employee benefits 3,607,270 3,501,021 106,249
Net occupancy expense 312,661 294,243 18,418
Equipment expense 1,294,686 1,283,692 10,994
Data processing fees 99,085 113,499 (14,414)
Professional fees 467,951 710,539 (242,588)
Marketing expense 144,954 83,254 61,700
Printing and office supplies 115,320 130,591 (15,271)
Telephone and communication 180,261 164,134 16,127
Postage and delivery expense 77,979 83,975 (5,996)
State, local and other taxes 146,683 88,825 57,858
Employee expense 225,032 265,459 (40,427)
Other expenses 338,556 525,708 (187,152)
----------- ----------- -----------
Total noninterest expense 7,010,438 7,244,940 (234,502)
----------- ----------- -----------
INCOME BEFORE INCOME TAX EXPENSE 740,008 (250,934) 990,942
Income tax expense 247,824 (137,232) 385,056
----------- ----------- -----------
NET INCOME $ 492,184 $ (113,702) $ 605,886
=========== =========== ===========
Earnings per common share:
Basic $ 0.11 $ (0.02) $ 0.13
=========== =========== ===========
Diluted $ 0.11 $ (0.02) $ 0.13
=========== =========== ===========
Average diluted shares outstanding 4,574,492 4,569,316
=========== ===========
</Table>
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
For The Nine Months Ended September 30, 2005 and 2004
Nine Months Nine Months Increase/(Decrease)
-------------------
2005 2004 $
------------ ------------ --------------------
Interest income
Loans
Taxable $ 12,098,708 $ 12,233,058 $ (134,350)
Tax-exempt 48,227 50,508 (2,281)
Securities
Taxable 3,134,559 2,570,230 564,329
Tax-exempt 165,462 119,990 45,472
Other 159,716 53,059 106,657
------------ ------------ ------------
Total interest income 15,606,672 15,026,845 579,827
Interest expense
Deposits 4,012,052 3,481,494 530,558
Other borrowings 204,365 297,538 (93,173)
Retail Repurchase Agreements 60,328 23,147 37,181
Federal Home Loan Bank advances 1,581,052 1,332,752 248,300
Trust preferred securities 842,170 843,356 (1,186)
------------ ------------ ------------
Total interest expense 6,699,967 5,978,287 721,680
------------ ------------ ------------
NET INTEREST INCOME 8,906,705 9,048,558 (141,853)
Provision for loan losses (30,000) 129,517 159,517
------------ ------------ ------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 8,936,705 8,919,041 17,664
Noninterest income
Data service fees 8,662,825 7,683,585 979,240
Trust fees 2,351,509 2,302,406 49,103
Customer service fees 1,409,199 1,518,714 (109,515)
Net gain on sales of loans 46,243 27,090 19,153
Net realized gains (losses) on sales of
available-for-sale securities 25,300 236,356 (211,056)
Loan servicing fees 225,326 285,247 (59,921)
Gain (loss) on sale of assets (18,935) 67,823 (86,758)
Other income 513,714 376,685 137,029
------------ ------------ ------------
Total noninterest income 13,215,181 12,497,906 717,275
Noninterest expense
Salaries and employee benefits 10,339,614 9,631,372 708,242
Net occupancy expense 897,058 721,878 175,180
Equipment expense 3,831,477 3,158,707 672,770
Data processing fees 303,781 284,159 19,622
Professional fees 1,697,020 1,658,423 38,597
Marketing expense 308,925 263,444 45,481
Printing and office supplies 397,153 327,145 70,008
Telephone and communication 494,198 483,998 10,200
Postage and delivery expense 236,006 262,147 (26,141)
State, local and other taxes 380,036 409,108 (29,072)
Employee expense 726,561 553,739 172,822
Other expenses 1,163,450 1,010,319 153,131
------------ ------------ ------------
Total noninterest expense 20,775,279 18,764,439 2,010,840
------------ ------------ ------------
INCOME BEFORE INCOME TAX EXPENSE 1,376,607 2,652,508 (1,275,901)
Income tax expense 359,661 632,801 (273,140)
------------ ------------ ------------
NET INCOME $ 1,016,946 $ 2,019,707 $ (1,002,761)
============ ============ ============
Earnings per common share:
Basic $ 0.22 $ 0.44 $ (0.22)
============ ============ ============
Diluted $ 0.22 $ 0.44 $ (0.22)
============ ============ ============
Average diluted shares outstanding 4,584,070 4,570,010
============ ============
</Table>
RURBAN FINANCIAL CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - UNAUDITED
September 30, 2005, December 31, 2004 and September 30, 2004
September December September
2005 2004 2004
------------- ------------- -------------
ASSETS
Cash and due from banks $ 8,794,880 $ 10,617,766 $ 12,111,512
Federal funds sold -- -- 4,500,000
------------- ------------- -------------
Cash and cash equivalents 8,794,880 10,617,766 16,611,512
Interest-earning deposits in other financial institutions 150,000 150,000 250,000
Available-for-sale securities 119,075,282 108,720,491 95,599,129
Loans held for sale -- 112,900 --
Loans, net of unearned income 271,409,384 264,480,789 272,955,578
Allowance for loan losses (4,813,956) (4,899,063) (5,368,515)
Premises and equipment, net 9,614,849 7,740,442 7,530,485
Purchased software 4,120,523 4,564,474 4,747,030
Federal Reserve and Federal Home Loan Bank Stock 2,875,400 2,793,000 2,814,100
Foreclosed assets held for sale, net 2,227,581 720,000 --
Accrued interest receivable 2,469,046 1,984,452 2,033,254
Deferred income taxes -- -- 2,583,235
Goodwill 6,092,072 2,144,304 2,144,304
Core deposits and other intangibles 1,208,095 542,978 567,992
Cash value of life insurance 9,339,022 9,146,816 9,051,215
Other assets 6,019,922 6,529,397 4,307,877
------------- ------------- -------------
Total assets $ 438,582,100 $ 415,348,746 $ 415,827,196
============= ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Demand $ 37,940,995 $ 37,831,810 $ 36,640,451
Savings, interest checking and money market 104,535,697 87,795,630 94,495,084
Time 176,014,845 153,996,874 158,846,720
------------- ------------- -------------
Total deposits 318,491,537 279,624,314 289,982,255
Notes payable 2,052,794 3,079,656 3,428,574
Advances from Federal Home Loan Bank 34,000,000 56,000,000 56,000,000
Fed Funds Purchased 2,100,000 7,500,000 --
Retail Repurchase Agreements 6,600,152 4,059,151 3,017,151
Trust preferred securities 20,620,000 10,310,000 10,310,000
Accrued interest payable 1,171,173 994,114 734,751
Deferred income taxes 404,334 523,111 --
Other liabilities 2,861,352 2,952,605 2,350,706
------------- ------------- -------------
Total liabilities 388,301,342 365,042,951 365,823,437
Shareholders' Equity
Common stock: stated value $2.50 per share;
shares authorized: 10,000,000; shares issued: 4,575,702;
shares outstanding: 2005 - 4,575,702, December 31, 2004 -
4,568,388 and September 30, 2004 - 4,567,968 11,428,293 11,439,255 11,439,255
Additional paid-in capital 10,773,550 11,003,642 11,004,876
Retained earnings 29,275,237 28,943,736 28,229,151
Accumulated other comprehensive income (loss),
net of tax of ($616,287) in 2005 and ($413,764) in December 31,
2004 and ($175,383) in September 30, 2004 (1,196,322) (803,189) (340,450)
Unearned ESOP shares -- -- (45,539)
Treasury stock -- (277,649) (283,534)
------------- ------------- -------------
Total shareholders' equity 50,280,758 50,305,795 50,003,759
------------- ------------- -------------
Total liabilities and shareholders' equity $ 438,582,100 $ 415,348,746 $ 415,827,196
</Table>