Exhibit 99.1
February 27, 2006
Quarterly Report
Fourth Quarter 2005
The earnings per share, on a diluted basis, for the year ended December
31, 2005 were up 4.3% over the year ended December 31, 2004. Earnings
per share, on a diluted basis, for the fourth quarter were 57 cents per
share compared to 58 cents last year. Earnings for the year were $5.8
million, an increase of $58 thousand over the year ended December 31,
2004. Net interest income has been affected by a compression of our net
interest margin, as a result of competitive pressure on our short-term
deposit rates.
Assets were $572.8 million as of December 31, 2005, up 8.4% over last
year. Loans exceeded $370.9 million as of December 31, 2005, which was a
3.5% increase over last year. As of December 31, 2005, deposits were
$431.6 million, up 11.3% over the prior year.
We hope to build upon our positive growth in assets and deposits in 2005,
along with the tobacco lump sum payouts offered during the last seven
months of 2005, to produce another profitable year.
Louis Prichard
President, CEO
UNAUDITED
CONSOLIDATED BALANCE SHEET
Percentage
12/31/2005 12/31/2004 Change
<s> <c> <c> <c>
Assets
Cash & Due From Banks $ 11,456,496 $ 12,248,975 -6.5%
Securities 160,652,346 126,766,861 26.7
Loans Held For Sale - 175,471 -100.0
Loans 370,911,882 358,281,554 3.5
Reserve for Loan Losses 4,309,403 4,163,315 3.5
Net Loans 366,602,479 354,118,239 3.5
Federal Funds Sold 2,708,000 3,206,000 -15.5
Other Assets 31,330,974 32,028,100 -2.2
Total Assets $572,750,295 $528,543,646 8.4%
Liabilities & Stockholders' Equity
Deposits
Demand $ 72,192,661 $ 74,048,291 -2.5%
Savings & Interest Checking 174,849,623 127,936,769 36.7
Certificates of Deposit 184,589,094 185,969,762 -0.7
Total Deposits 431,631,378 387,954,822 11.3
Repurchase Agreements 14,346,285 18,314,138 -21.7
Other Borrowed Funds 76,456,929 74,245,372 3.0
Other Liabilities 3,769,460 3,002,503 25.5
Total Liabilities 526,204,052 483,516,835 8.8
Stockholders' Equity 46,546,243 45,026,811 3.4
Total Liabilities & Stockholders' Equity $572,750,295 $528,543,646 8.4%
CONSOLIDATED INCOME STATEMENT
Twelve Months Ending Three Months Ending
Percentage Percentage
12/31/2005 12/31/2004 Change 12/31/2005 12/31/2004 Change
<s> <c> <c> <c> <c> <c> <c>
Interest Income $28,896,977 $25,846,012 11.8% $7,823,278 $6,610,540 18.3%
Interest Expense 11,765,672 9,067,132 29.8 3,543,824 2,421,634 46.3
Net Interest Income 17,131,305 16,778,880 2.1 4,279,454 4,188,906 2.2
Loan Loss Provision 508,100 840,000 -39.5 - 220,000 -100.0
Net Interest Income After Provision 16,623,205 15,938,880 4.3 4,279,454 3,968,906 7.8
Other Income 6,748,653 6,796,182 -0.7 1,641,194 1,675,671 -2.1
Other Expenses 15,474,017 14,755,170 4.9 3,797,630 3,467,503 9.5
Income Before Taxes 7,897,841 7,979,892 -1.0 2,123,018 2,177,074 -2.5
Income Taxes 2,077,741 2,217,783 -6.3 581,923 583,176 -0.2
Net Income 5,820,100 5,762,109 1.0 1,541,095 1,593,898 -3.3
Net Change in Unrealized Gain (loss)
on Securities (1,256,826) (1,195,305) 5.1 (453,964) (450,294) 0.8
Comprehensive Income $ 4,563,274 $ 4,566,804 -0.1% $1,087,131 $1,143,604 -4.9%
Selected Ratios
Return on Average Assets 1.08% 1.11% 1.08% 1.18%
Return on Average Equity 12.7 12.6 13.1 14.2
Earnings Per Share $ 2.17 $ 2.09 $ 0.57 $ 0.59
Earnings Per Share - assuming dilution 2.16 2.07 0.57 0.58
Cash Dividends Per Share 0.92 0.84 0.23 0.21
Book Value Per Share 17.45 16.77
Market Price High Low Close
Fourth Quarter '05 $30.50 $29.25 $29.55
Third Quarter '05 $30.50 $29.50 $30.50