TABLE 1
INTEREST INCOME AND AVERAGE BALANCES
(Dollars in Thousands)
1996 1995
----------------------------------------- ------------------------------------
Average Interest Average Average Interest Average
Balance Inc/Exp. Yld/Rate Balance Inc/Exp. Yld/Rate
----------------------------------------- ------------------------------------
INTEREST EARNING ASSETS
Investment Securities and
Interest Bearing Deposits $ 369,179 $ 22,030 5.97% $ 272,551 $ 16,703 6.13%
Federal Funds Sold 5,462 296 5.42% 9,165 525 5.73%
Loans, net** 707,863 67,633 9.55% 580,066 56,497 9.74%
------------------------------------ ----------------------------------
Total Interest Earning Assets 1,082,504 89,959 8.31% 861,782 73,725 8.55%
------------------------------------ ----------------------------------
Noninterest Earning Assets 91,766 78,624
---------- ----------
TOTAL ASSETS $1,174,270 $ 940,406
========== ==========
INTEREST BEARING LIABILITIES
Demand Deposits $ 135,592 3,415 2.52% $ 121,447 3,315 2.73%
Savings Deposits 168,376 5,555 3.30% 131,340 4,431 3.37%
Time Deposits 524,220 30,007 5.72% 416,142 23,542 5.66%
Borrowed Funds 98,467 5,345 5.43% 50,811 2,981 5.87%
------------------------------------ ----------------------------------
Total Interest Bearing Liabilities 926,655 44,322 4.78% 719,740 34,269 4.76%
------------------------------------ ----------------------------------
Noninterest Bearing Liabilities 147,187 130,636
---------- ----------
TOTAL LIABILITIES 1,073,842 850,376
STOCKHOLDERS' EQUITY 100,428 90,030
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,174,270 $ 940,406
========== ==========
INTEREST RATE SPREAD 3.53% 3.79%
======== =======
NET YIELD ON INTEREST-BEARING
ASSETS $ 45,637 4.22% $ 39,456 4.58%
===================== =====================
1994
--------------------------------------
Average Interest Average
Balance Inc/Exp. Yld/Rate
--------------------------------------
INTEREST EARNING ASSETS
Investment Securities and
Interest Bearing Deposits $ 232,814 $ 12,774 5.49%
Federal Funds Sold 14,307 601 4.20%
Loans, net** 499,868 44,652 8.93%
---------------------------------
Total Interest Earning Assets 746,989 58,027 7.77%
---------------------------------
Noninterest Earning Assets 74,630
---------
TOTAL ASSETS $ 821,619
=========
INTEREST BEARING LIABILITIES
Demand Deposits $ 113,697 2,578 2.27%
Savings Deposits 128,870 3,658 2.84%
Time Deposits 352,140 15,199 4.32%
Borrowed Funds 38,878 2,181 5.61%
---------------------------------
Total Interest Bearing Liabilities 633,585 23,616 3.73%
---------------------------------
Noninterest Bearing Liabilities 105,889
----------
TOTAL LIABILITIES 739,474
STOCKHOLDERS' EQUITY 82,145
----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 821,619
===========
INTEREST RATE SPREAD 4.04%
=========
NET YIELD ON INTEREST-BEARING
ASSETS $34,411 4.61%
===================
* Yield is not computed on a tax equivalent basis.
** Includes non-accrual loans and loans held for sale.
TABLE 2
RATE/VOLUME VARIANCE ANALYSIS
(IN THOUSANDS)
1996 COMPARED TO 1995 1995 COMPARED TO 1994
--------------------- ---------------------
VARIANCE VARIANCE
ATTRIBUTABLE TO ATTRIBUTABLE TO
---------------------- -------------------
INTEREST INTEREST
INCOME INCOME
EXPENSE EXPENSE
VARIANCE RATE VOLUME VARIANCE RATE VOLUME
-------- ---- ------ -------- ---- ------
INTEREST EARNING ASSETS
Investment Securities and Time Deposits $ 5,327 $ (450) $ 5,777 $ 3,929 $ 1,606 $ 2,168
Federal Funds Sold (229) (27) (202) (76) 179 (255)
Loans, net 11,136 (1,093) 12,229 11,845 4,267 7,578
-------------------------------------- -----------------------------------
TOTAL INTEREST EARNINGS ASSETS $ 16,234 $ (1,570) $ 17,804 $ 15,698 $ 6,052 $ 9,491
====================================== ===================================
INTEREST BEARING LIABILITIES
Demand Deposits $ 100 $ (268) $ 368 $ 737 $ 552 $ 185
Savings Deposits 1,124 (100) 1,224 773 702 71
Time Deposits 6,465 282 6,183 8,343 5,264 3,079
Borrowed Funds 2,364 (238) 2,602 800 104 696
====================================== ===================================
TOTAL INTEREST BEARING LIABILITIES $ 10,053 $ (324) $ 10,377 $ 10,653 $ 6,622 $ 4,031
====================================== ===================================
TABLE 3
LOANS
(In Thousands)
At December 31,
-----------------------------------------------------------------------
ANALYSIS OF LOANS: 1996 1995 1994 1993 1992
-----------------------------------------------------------------------
Commercial, Financial and Agricultural $ 194,726 $ 181,024 $ 167,423 $ 152,709 $ 108,548
Real Estate, Construction and Land Development 107,538 81,892 84,391 59,442 41,090
Real Estate, Mortgage 331,986 258,243 178,388 158,441 115,169
Real Estate, Equity Lines of Credit 40,288 36,594 30,666 27,499 21,371
Installment Loans to Individuals 82,505 81,712 65,321 60,659 37,038
Other 6,246 9,750 10,046 2,688 4,889
-----------------------------------------------------------------------
TOTAL $ 763,289 $ 649,215 $ 536,235 $ 461,438 $ 328,105
=======================================================================
TABLE 3 (CONTINUED)
ALLOCATION OF THE RESERVE FOR LOAN LOSSES
At December 31,
(Dollars in Thousands)
---------------------------------------------------------------------------------------------
1996 1995 1994
---------------------------------------------------------------------------------------------
Percent of Percent of Percent of
loans in each loans in each loans in each
Category to Category to Category to
Amount Total loans Amount Total loans Amount Total loans
--------------------------------------------------------------------------------------------
Commercial, Financial and
Agricultural $ 4,115 27.88% $ 3,665 31.22% $ 3,632 25.51%
Real Estate, Construction and
Land Development 169 12.61% 272 15.74% 708 14.09%
Real Estate, Mortgage 1,995 39.78% 1,912 33.27% 2,812 43.49%
Real Estate, Equity Lines of Credit 402 5.64% 340 5.72% 274 5.28%
Installment Loans to Individuals 1,289 12.59% 1,220 12.18% 1,006 10.81%
Other 57 1.50% 76 1.87% 23 0.82%
Unallocated 2,863 0.00% 2,173 0.00% 1,706 0.00%
---------------------------------------------------------------------------------------------
TOTAL $ 10,890 100.00% $ 9,658 100.00% $ 10,161 100.00%
=============================================================================================
-------------------------------------------------------------
1993 1992
-------------------------------------------------------------
Percent of Percent of
loans in each loans in each
Category to Category to
Amount Total loans Amount Total loans
-------------------------------------------------------------
Commercial, Financial and
Agricultural
$ 4,724 33.09% $ 1,598 33.09%
Real Estate, Construction and
Land Development
653 12.88% 680 12.52%
Real Estate, Mortgage
3,254 34.34% 1,691 35.10%
Real Estate, Equity Lines of Credit
260 5.96% 86 6.51%
Installment Loans to Individuals
823 13.15% 307 11.29%
Other
19 0.58% 23 1.49%
Unallocated
2,036 0.00% 1,087 0.00%
-----------------------------------------------------------
TOTAL $ 11,769 100.00% $ 5,472 100.00%
============================================================
TABLE 3 (CONTINUED)
RESERVE FOR LOAN LOSSES AND NON-PERFORMING ASSETS
(Dollars in Thousands)
At December 31
-----------------------------------------------------------------------
Analysis of Reserve for Loan Losses: 1996 1995 1994 1993 1992
-----------------------------------------------------------------------
Beginning Balance $ 9,658 $ 10,161 $ 11,769 $ 5,472 $ 5,107
Net Charge-Offs (742) (1,026) (3,005) (874) (1,755)
Additions Charged to Operations 2,072 523 1,299 2,272 2,120
Provision for acquired loans (98) - 98 110 -
Allowance acquired - - - 4,789 -
-----------------------------------------------------------------------
Ending Balance $ 10,890 $ 9,658 $ 10,161 $ 11,769 $ 5,472
=======================================================================
Ratio of Net Charge-Offs During the Period to
Average Loans outstanding during the period 0.10% 0.18% 0.60% 0.24% 0.56%
TABLE 3 (CONTINUED)
ANALYSIS OF NONPERFORMING ASSETS
(In Thousands)
At December 31,
1996 1995 1994 1993 1992
-----------------------------------------------------------------------
Nonaccrual Loans $ 1,666 $ 1,532 $ 1,934 $ 3,948 $ 1,182
Loans contractually past due 90 or more days as
to principal or interest 2,107 1,033 1,028 220 892
Foreclosed Assets 507 499 799 1,859 2,742
-----------------------------------------------------------------------
$ 4,280 $ 3,064 $ 3,761 $ 6,027 $ 4,816
=======================================================================
TABLE 4
SECURITIES
(Dollars in Thousands)
BOOK VALUE AT DECEMBER 31, 1996
--------------------------------------------------------------------
Due After Due After
One Year Five Years
Due in One Through Through Due After Market Average
Year or Less Five Years Ten Years Ten Years Total Value Maturity In Years
--------------------------------------------------------------------------------------------
AVAILABLE FOR SALE
U.S. Treasury Securities $34,696 $83,206 $ - $ - $118,902 $117,901 1.31
U.S. Agencies 1,511 1,703 - 8,943 12,157 12,157 4.81
Mortgage Backed Securities - - 1,267 125,763 127,030 128,030 13.93
State and Political Subdivisions 675 466 521 12,679 14,391 14,341 6.04
Collateralized Mortgaged Obligations - - 465 1,643 2,108 2,108 12.68
Other Investments - - 4,188 4,188 4,188
End User Derivatives 197 2,048 1,605 - 3,850 3,850
============================================================================================
Total $38,079 $87,423 $ 3,858 $153,216 $282,576 $278,725 7.75
============================================================================================
HELD TO MATURITY
U.S. Agencies $ 26,876 $ 39,356 $ 3,857 $ 2,045 $ 72,134 $ 72,583 4.83
State and Political Subdivisions 1,026 3,725 4,803 4,109 13,663 13,918 5.9
Mortgage Backed Securities 1,173 4,214 875 2,449 8,711 8,564 5.75
Collateralized Mortgaged Obligations - - 2,037 1,013 3,050 3,025 15.67
Other Investments - 554 - - 554 577 3.7
============================================================================================
Total $ 29,075 $ 47,849 $11,572 $ 9,616 $ 98,112 $ 98,667 7.16
============================================================================================
TABLE 4 (CONT'D)
SECURITIES
WEIGHTED AVERAGE YIELDS* AT DECEMBER 31, 1996
Due After Due After
One Year Five Years
Due in One Through Through Due After
Year or Less Five Years Ten Years Ten Years Total
------------------------------------------------------------------------------
Available for Sale
U.S. Treasury Securities 5.84% 5.98% - - 5.93%
U.S. Agencies 4.87% 5.52% - 7.41% 6.58%
Mortgage Backed Securities - - 6.07% 7.00% 6.98%
State and Political Subdivisions 3.53% 4.27% 4.78% 5.14% 5.04%
Collateralized Mortgage Obligations - - 5.42% 5.31% 5.43%
Other Investments - - - 6.62% 6.62%
-----------------------------------------------------------------------
Total 5.76% 5.95% 5.42% 6.84% 6.40%
=======================================================================
Held to Maturity
U.S. Agencies 5.63% 6.27% 7.58% 4.80% 6.02%
State and Political Subdivisions 4.83% 5.08% 5.42% 5.59% 5.23%
Mortgage Backed Securities 5.47% 5.92% 5.65% 6.86% 6.20%
Collateralized Mortgage Obligations - - 6.17% 4.66% 5.72%
Other Investments - 8.89% - - 8.89%
-----------------------------------------------------------------------
Total 5.37% 5.66% 6.29% 5.65% 5.89%
=======================================================================
*Yields are not computed on a tax equivalent basis.
TABLE 4 (CONT'D)
SECURITIES
(IN THOUSANDS)
December 31,
--------------------------------------------------------------------------
1996 1995
AVAILABLE FOR SALE Book Value Market Value Book Value Market Value
------------------------------- ---------------------------
U.S. Treasury Securities $ 117,732 $ 117,902 $ 92,966 $ 94,113
U.S. Agencies 12,179 12,157 23,471 23,407
State and Political Subdivisions 14,369 14,341 2,587 2,596
Mortgage Backed Securities 127,818 128,030 85,888 86,219
Collateralized Mortgage Obligations 2,145 2,108 2,766 2,715
Other Investments 4,188 4,188 3,449 3,449
End-User Derivatives $ 4,293 $ 3,850
--------------------------------------------------------------------------
$ 282,724 $ 282,576 $211,127 $ 212,499
==========================================================================
HELD TO MATURITY
U.S. Agencies $ 72,134 $ 72,583 $ 49,047 $ 52,190
State and Political Subdivisions 13,663 13,918 22,101 22,502
Mortgage Backed Securities 8,711 8,564 13,598 13,529
Collateralized Mortgage Obligations 3,050 3,025 3,068 3,067
Other Investments 554 577 1,638 1,680
--------------------------------------------------------------------------
$ 98,112 $ 98,667 $ 89,452 $ 92,968
==========================================================================
TABLE 5
LARGE TIME DEPOSIT MATURITIES
Analysis of Time Deposits of $100,000 or more at December 31, 1996 (In
Thousands):
Total
-----------
Remaining maturity of three months or less $ 52,427
Remaining maturity of over three through 12 months 42,508
Remaining maturity of over twelve months 10,035
=========
Total time deposits of $100,000 or more $ 104,970
=========
TABLE 6
SHORT-TERM BORROWINGS
(DOLLARS IN THOUSANDS)
AT DECEMBER 31,
-------------------------------------------------------------------------------------
1996 1995
------------------------------------------------------ ------------------------------
Securities Securities
Sold Under Federal Home Sold Under
Federal Funds Agreement to Loan Federal Funds Agreement to
Purchased Repurchase Bank Combined Purchased Repurchase
------------------------------------------------------ ------------------------------
END OF YEAR:
Amount Outstanding $ 3,900 $ 34,738 $ 8,000 $ 46,638 $ 16,155 $ 23,667
Weighted Average
Interest Rate 7.00% 4.90% 6.95% 5.43% 5.98% 4.49%
Maximum amount outstanding
at any month end during
the year $ 35,745 $ 39,466 $ 44,500 $ 119,711 $ 21,125 $ 25,394
AVERAGES:
Average outstanding
balance during the
year $ 10,876 $ 31,502 $ 17,695 $ 60,073 $ 4,544 $ 18,952
Weighted average
interest rate during
the year 5.74% 5.17% 5.70% 5.43% 6.06% 5.10%
------------------------- -----------------------------------------------------------------
1995 1994
------------------------- -----------------------------------------------------------------
Securities
Federal Home Sold Under Federal Home
Loan Federal Funds Agreement to Loan
Bank Combined Purchased Repurchase Bank Combined
------------------------- ---------------------------------------------------------------
END OF YEAR:
Amount Outstanding $ 29,500 $ 69,322 $ 5,900 $ 18,852 $ - $ 24,752
Weighted Average
Interest Rate 5.66% 5.34% 6.35% 5.07% - 5.37%
Maximum amount outstanding
at any month end during
the year $ 29,500 $ 76,019 $ 27,025 $ 17,749 $ - $ 44,774
AVERAGES:
Average outstanding
balance during the
year $ 10,730 $ 34,226 $ 7,989 $ 12,390 $ - $ 20,379
Weighted average
interest rate during
the year 5.82% 5.45% 4.32% 3.73% - 3.96%
TABLE 7
SELECTED KEY FINANCIAL RATIOS (1)
1996 1995 1994
---------------- --------------- -------------
Return on Assets 1.13% 0.97% 0.63%
Return on Equity 13.16% 10.12% 6.31%
Dividend Payout Ratio 26.70% 22.10% 17.60%
Equity to Assets 8.55% 9.57% 10.00%
(1) All ratios are computed on average daily balances, except dividend payout.
TABLE 8
INTEREST SENSITIVITY (2)
December 31, 1996
(Dollars in Thousands)
12/31/96 0-3 4-12 1 to 5 Over
Balance Months Months Years 5 years
-------------------------------------------------------------------------------------
Federal Funds Sold $ 2,011 $ 2,011
Interest Bearing Deposits in Banks 879 879
Securities 380,688 19,730 $ 56,075 $ 137,553 $ 167,330
Loans Held for Sale 2,413 2,413
Loans 763,289 410,635 107,924 217,027 27,703
-------------------------------------------------------------------------------------
Earning Assets 1,149,280 435,668 163,999 354,580 195,033
-------------------------------------------------------------------------------------
Total Assets $ 1,241,394
=================
Interest Bearing Demand Deposits $ 135,841 108,967 26,874
Savings and Money Market Account 187,619 59,415 113,731 14,473
Time Deposits 548,277 201,200 255,633 88,323 3,121
Other Borrowings 96,980 46,980 50,000
-------------------------------------------------------------------------------------
Costing Liabilities $ 968,717 248,180 315,048 361,021 44,468
-------------------------------------------------------------------------------------
GAP $ 187,488 $ (151,049) $ (6,441) $ 150,565
--------------------------------------------------------------------
% of Total Assets 15.10% -12.17% -0.52% 12.13%
--------------------------------------------------------------------
Cumulative GAP $ 187,488 $ 36,439 $ 29,998 $ 180,563
--------------------------------------------------------------------
% of Total Assets 15.10% 2.94% 2.42% 14.55%
--------------------------------------------------------------------
(2) Assumptions used include the maturity distribution units for non-maturity
deposits and no pre-payments on loans.