Exhibit 99.1
May 3, 2012
Quarterly Report
First Quarter 2012
We are pleased to report that for the quarter ended March 31, 2012,
earnings for your company were up 28.2% over those of March 31, 2011. For
the first quarter, we earned $1.62 million compared to $1.26 million for
the same period in 2011. Earnings per share, on a fully diluted basis,
increased from $0.46 to $0.60 which represents a 30.4% increase.
Our strategy to improve our net interest margin has increased the margin
from 4.14% for the three months ending March 31, 2011 to 4.24% for the
same period in 2012. As a result, our net interest income has totaled
$6.1 million for the first quarter of 2012, which was a 5 % increase over
March 31, 2011.
Loan demand is starting to show incremental improvement over last year.
Over the last three months we have begun to see some slight improvement
in demand. In many markets in which we do business, unemployment numbers
are improving gradually.
The low interest rate environment created by the Federal Reserve Bank has
helped consumers? ability to refinance their homes. Recently, we are
seeing a slight shift from refinancing requests to purchase financing,
which is a good sign for the housing market. Additionally, businesses are
showing increased interest in needs for loans to support their improved
positions. Our loan officers are working diligently to assist our
customers and prospects in meeting their current financial requests.
Nationally, the economy is starting to show some signs of improvement.
The unemployment rate is slowly declining. The economy showed some
improvement in 2011 and grew at a 2.2% rate for the first quarter of
2012. While we believe the economy is making progress, it is still being
classified as the slowest recovery in modern economic history.
The stock market is continuing to show some resilience over the last
year. Along those lines we were pleased to see your company?s stock show
improvement in price. At the end of the first quarter the stock was at
$22.00 per share, up from $19.01 at the close of business on December 31,
2011.
We will be working hard to continue our momentum into 2012. As always, we
appreciate your support.
/s/Louis Prichard
Louis Prichard
President, CEO
UNAUDITED
CONSOLIDATED BALANCE SHEET
Percentage
3/31/2012 3/31/2011 Change
<s> <c> <c> <c>
Assets
Cash & Due From Banks $ 24,295,638 $ 14,467,772 67.9%
Securities 190,152,902 176,318,253 7.8
Loans Held For Sale 598,489 - n/m
Loans 412,454,249 414,231,816 -0.4
Reserve for Loan Losses 5,994,251 5,640,859 6.3
Net Loans 406,459,998 408,590,957 -0.5
Federal Funds Sold 361,000 151,000 139.1
Other Assets 55,227,208 56,973,176 -3.1
Total Assets $ 677,095,235 $ 656,501,158 3.1%
Liabilities & Stockholders' Equity
Deposits
Demand $ 138,346,868 $ 132,005,504 4.8%
Savings & Interest Checking 225,251,552 194,439,567 15.8
Certificates of Deposit 199,251,250 212,333,998 -6.2
Total Deposits 562,849,670 538,779,069 4.5
Repurchase Agreements 3,239,865 4,321,885 -25.0
Other Borrowed Funds 37,020,467 47,977,504 -22.8
Other Liabilities 4,548,972 2,417,266 88.2
Total Liabilities 607,658,974 593,495,724 2.4
Stockholders' Equity 69,436,261 63,005,434 10.2
Total Liabilities & Stockholders' Equity $ 677,095,235 $ 656,501,158 3.1%
CONSOLIDATED INCOME STATEMENT
Three Months Ending
Percentage
3/31/2012 3/31/2011 Change
<s> <c> <c> <c>
Interest Income $ 7,162,373 $ 7,457,556 -4.0%
Interest Expense 1,052,677 1,637,482 -35.7
Net Interest Income 6,109,696 5,820,074 5.0
Loan Loss Provision 450,000 750,000 -40.0
Net Interest Income After Provision 5,659,696 5,070,074 11.6
Other Income 2,496,148 1,827,467 36.6
Other Expenses 6,207,614 5,429,513 14.3
Income Before Taxes 1,948,230 1,468,028 32.7
Income Taxes 330,204 205,619 60.6
Net Income $ 1,618,026 $ 1,262,409 28.2
Net Change in Unrealized Gain (loss)
on Securities (491,427) 1,294,151 -138.0
Comprehensive Income $ 1,126,599 $ 2,556,560 -55.9%
Selected Ratios
Return on Average Assets 0.96% 0.76%
Return on Average Equity 9.21 8.24
Earnings Per Share $ 0.60 $ 0.46
Earnings Per Share - assuming dilution 0.60 0.46
Cash Dividends Per Share 0.23 0.22
Book Value Per Share 25.52 22.97
Market Price High Low Close
First Quarter '11 $23.49 $19.05 $22.00
Fourth Quarter '10 $19.01 $17.75 $19.01