Exhibit 99.1
January 31, 2011
Quarterly Report
Fourth Quarter 2010
We are pleased to report for the year ended December 31, 2010, earnings
for your Company were up 1.9% when compared to December 31, 2009. On a
year to date basis, we earned $4.9 million for the year ended December
31, 2010 as compared to $4.8 million for the same period in 2009. For
the fourth quarter 2010, our earnings were $1.2 million compared to $1.4
million for the same period in 2009. Additionally, I am pleased to
announce that our earnings per share for the year increased from $1.77
per share on a fully diluted basis, to $1.81 which is a 2.26% increase.
Total assets at December 31, 2010 were $658.9 million compared to $675.2
million for 2009, which represented a 2.4% decrease in total assets. The
main contributor to the decline in assets was represented by a 3.2%
decline in loans from $425.4 million at December 31, 2009, to $411.8
million at December 31, 2010. Deposits were virtually flat from the
previous year as reflected by the $537.4 million total at December 31,
2010 versus the $536.4 million figure at December 31, 2009.
The state of the national and local economies is still in a relative
period of uncertainty, although we are starting to see some signs that
the economy may be showing slight improvement through the first quarter,
and perhaps into 2011. However, one lingering problem is the unemployment
situation, which is reflected in the relatively high numbers both at the
national and at the local levels. The housing market continues to be
slow, with a high level of inventory of unsold homes still facing the
marketplace. The stock market recently has shown considerable strength,
beginning in the third quarter and continuing through the fourth quarter
of 2010. In the past, this has been an indicator of the economy
improving, and we hope that this continues to be the case.
As has been stated in prior quarterly reports, we are continuing our
efforts to move market share in those areas where troubled banks continue
to struggle. Our strategy has been to call on businesses and individuals
who may not be receiving the level of service and commitment that they
have experienced in the past, while at the same time providing Premier
Customer Service to our existing customer base to ensure that we can
retain those very important relationships.
The financial year of 2010, as has been the case for the last several
years, has been challenging to say the least. We will continue to do
everything possible to meet those challenges so that we can accomplish
what is in the long term best interest of our shareholders, customers,
and employees.
As always, we appreciate your support.
/s/Louis Prichard
Louis Prichard
President, CEO
UNAUDITED
CONSOLIDATED BALANCE SHEET
Percentage
12/31/2010 12/31/2009 Change
<s> <c> <c> <c>
Assets
Cash & Due From Banks $ 12,516,420 $ 12,387,128 1.0%
Securities 176,866,771 168,411,026 5.0
Loans Held for Sale - 191,000 n/m
Loans 411,830,266 425,418,387 -3.2
Reserve for Loan Losses 4,924,806 7,600,594 -35.2
Net Loans 406,905,460 417,817,793 -2.6
Federal Funds Sold 5,108,000 22,034,005 -76.8
Other Assets 57,546,163 54,390,244 5.8
Total Assets $ 658,942,814 $ 675,231,196 -2.4%
Liabilities & Stockholders' Equity
Deposits
Demand $ 105,519,332 $ 97,005,532 8.8%
Savings & Interest Checking 191,837,038 180,904,194 6.0
Certificates of Deposit 240,044,257 258,536,772 -7.2
Total Deposits 537,400,627 536,446,498 0.2
Repurchase Agreements 5,079,100 4,806,967 5.7
Other Borrowed Funds 52,523,477 66,731,250 -21.3
Other Liabilities 2,896,276 6,280,906 -53.9
Total Liabilities 597,899,480 614,265,621 -2.7
Stockholders' Equity 61,043,334 60,965,575 0.1
Total Liabilities & Stockholders? Equity $ 658,942,814 $ 675,231,196 -2.4%
CONSOLIDATED INCOME STATEMENT
Twelve Months Ending Three Months Ending
Percentage Percentage
12/31/2010 12/31/2009 Change 12/31/2010 12/31/2009 Change
<s> <c> <c> <c> <c> <c> <c>
Interest Income $ 30,275,545 $ 31,928,802 -5.2% $ 7,351,335 $ 7,912,649 -7.1%
Interest Expense 10,066,601 12,508,978 -19.5 2,054,150 2,843,106 -27.7
Net Interest Income 20,208,944 19,419,824 4.1 5,297,185 5,069,543 4.5
Loan Loss Provision 3,250,000 3,450,000 -5.8 1,300,000 2,100,000 -38.1
Net Interest Income After Provision 16,958,944 15,969,824 6.2 3,997,185 2,969,543 34.6
Other Income 10,566,430 10,214,052 3.4 3,143,478 3,359,023 -6.4
Other Expenses 22,020,594 21,151,583 4.1 5,803,239 4,998,643 16.1
Income Before Taxes 5,504,780 5,032,293 9.4 1,337,424 1,329,923 0.6
Income Taxes 565,358 184,554 206.3 98,057 (92,957) -205.5
Net Income $ 4,939,422 $ 4,847,739 1.9 $ 1,239,367 $ 1,422,880 -12.9
Net Change in Unrealized Gain (loss)
on Securities (2,587,821) 1,321,561 -295.8 (4,267,755) (2,787,257) -53.1
Comprehensive Income $ 2,351,601 $ 6,169,300 -61.9% $(3,028,388) $(1,364,377) -122.0%
Selected Ratios
Return on Average Assets 0.71% 0.72% 0.74% 0.85%
Return on Average Equity 7.8 8.1 7.6 9.0
Earnings Per Share $ 1.81 $ 1.77 $ 0.46 $ 0.52
Earnings Per Share - assuming dilution 1.81 1.77 0.46 0.52
Cash Dividends Per Share 0.84 0.80 0.21 0.20
Book Value Per Share 22.29 22.25
Market Price High Low Close
Fourth Quarter ?10 $17.45 $16.25 $16.75
Third Quarter '10 $17.50 $15.00 $17.00