SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
[ ] Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from ____________ to _____________
Commission file number: 0-30535
GRAYSON BANKSHARES, INC.
(Exact Name of Registrant as Specified in its Charter)
Virginia 54-1647596
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
113 West Main Street
Independence, Virginia 24348
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (540) 773-2811
Indicate by check mark whether the registrant: (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes __X__ No _____
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of September 30, 2000.
1,718,968 shares of common stock, par value $1.25 per share
GRAYSON BANKSHARES, INC.
TABLE OF CONTENTS
Page No.
Part I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheets
September 30, 2000 and December 31, 1999.....................................3
Consolidated Statements of Income
For the Nine Months Ended September 30, 2000 and 1999 and
For the Three Months Ended September 30, 2000 and 1999.......................4
Consolidated Statements of Stockholders' Equity
For the Nine Months Ended September 30, 2000 and
the Year Ended December 31, 1999.............................................6
Consolidated Statements of Cash Flows
For the Nine Months Ended September 30, 2000 and 1999........................7
Notes to Consolidated Financial Statements...................................8
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations...................................................10
Item 3. Quantitative and Qualitative Disclosures About Market Risk..................12
Part II. Other Information
Item 1. Legal Proceedings...........................................................14
Item 2. Changes in Securities and Use of Proceeds...................................14
Item 3. Defaults Upon Senior Securities.............................................14
Item 4. Submission of Matters to a Vote of Security Holders.........................14
Item 5. Other Information...........................................................14
Item 6. Exhibits and Reports on Form 8-K............................................14
Signatures
2
Part I: Financial Information
Item 1: Financial Statements
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Grayson Bankshares, Inc. and Subsidiary
Consolidated Balance Sheets
September 30, 2000 and December 31, 1999
- --------------------------------------------------------------------------------
September 30, December 31,
2000 1999
Assets ------------- -------------
(Unaudited) (Audited)
Cash and due from banks $ 5,597,889 $ 7,773,049
Interest-bearing deposits with banks - -
Federal funds sold 3,329,783 6,871,535
Investment securities available for sale 17,474,380 16,643,344
Investment securities held to maturity 10,905,303 12,786,424
Loans, net of allowance for loan losses of $1,872,751
at September 30, 2000 and $1,731,096 at December 31, 1999 134,861,177 121,498,141
Property and equipment, net 2,657,102 2,119,422
Accrued income 1,883,011 1,412,088
Other assets 1,301,602 1,230,853
------------- -------------
$ 178,010,247 $ 170,334,856
============= =============
Liabilities and Stockholders' Equity
Liabilities
Demand deposits $ 18,929,967 $ 18,755,128
Interest-bearing demand deposits 13,031,690 13,446,904
Savings deposits 30,668,013 30,575,219
Large denomination time deposits 25,631,491 24,082,169
Other time deposits 69,130,539 64,760,605
------------- -------------
Total deposits 157,391,700 151,620,025
Accrued interest payable 680,620 239,061
Other liabilities 612,537 585,698
------------- -------------
158,684,857 152,444,784
Commitments and contingencies
Stockholders' equity
Preferred stock, $25 par value; 500,000
shares authorized; none issued - -
Common stock, $1.25 par value; 2,000,000 shares
authorized; 1,718,968 shares issued and
outstanding in 2000 and 1999 2,148,710 2,148,710
Surplus 521,625 521,625
Retained earnings 16,901,618 15,559,063
Unrealized appreciation (depreciation) on investment
securities available for sale, net of income taxes (246,563) (339,326)
------------- -------------
19,325,390 17,890,072
------------- -------------
$ 178,010,247 $ 170,334,856
============= =============
See Notes to Consolidated Financial Statements
3
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Grayson Bankshares, Inc. and Subsidiary
Consolidated Statements of Income
For the Nine Months ended September 30, 2000 and 1999
- --------------------------------------------------------------------------------
Nine Months Ended
September 30,
2000 1999
------------- -------------
(Unaudited) (Unaudited)
Interest income:
Loans and fees on loans $ 8,283,122 $ 6,975,471
Federal funds sold 297,698 406,153
Investment securities:
Taxable 756,486 742,837
Exempt from federal income tax 479,940 554,249
Deposits with banks - -
------------- -------------
9,817,246 8,678,710
Interest expense:
Deposits 4,953,432 4,397,432
Interest on borrowings - -
------------- -------------
4,953,432 4,397,432
Net interest income 4,863,814 4,281,278
Provision for loan losses 200,000 220,000
------------- -------------
Net interest income after
provision for loan losses 4,663,814 4,061,278
------------- -------------
Noninterest income:
Service charges on deposit accounts 138,750 117,314
Other income 76,214 72,946
------------- -------------
214,964 190,260
------------- -------------
Noninterest expense:
Salaries and employee benefits 1,814,290 1,651,618
Occupancy expense 79,133 61,001
Equipment expense 195,256 145,614
Other expense 617,130 639,040
------------- -------------
2,705,809 2,497,273
Income before income taxes 2,172,969 1,754,265
Income tax expense 521,000 346,000
------------- -------------
Net income $ 1,651,969 $ 1,408,265
============= =============
Basic earnings per share $ .96 $ .82
============= =============
Weighted average shares outstanding 1,718,968 1,718,968
============= =============
See Notes to Consolidated Financial Statements
4
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Grayson Bankshares, Inc. and Subsidiary
Consolidated Statements of Income
For the Three Months ended September 30, 2000 and 1999
- --------------------------------------------------------------------------------
Three Months Ended
September 30,
2000 1999
------------- -------------
(Unaudited) (Unaudited)
Interest income:
Loans and fees on loans $ 2,937,195 $ 2,471,620
Federal funds sold 68,240 121,548
Investment securities:
Taxable 253,826 242,629
Exempt from federal income tax 149,411 186,605
Deposits with banks - -
------------- -------------
3,408,672 3,022,402
Interest expense:
Deposits 1,747,280 1,477,083
Interest on borrowings - -
------------- -------------
1,747,280 1,477,083
Net interest income 1,661,392 1,545,319
Provision for loan losses 80,000 65,000
------------- -------------
Net interest income after
provision for loan losses 1,581,392 1,480,319
------------- -------------
Noninterest income:
Service charges on deposit accounts 60,691 43,111
Other income 27,086 23,930
------------- -------------
87,777 67,041
------------- -------------
Noninterest expense:
Salaries and employee benefits 599,443 583,182
Occupancy expense 26,691 20,613
Equipment expense 59,294 48,996
Other expense 219,304 238,830
------------- -------------
904,732 891,621
------------- -------------
Income before income taxes 764,437 655,739
Income tax expense 214,000 110,000
------------- -------------
Net income $ 550,437 $ 545,739
============= =============
Basic earnings per share $ .32 $ .32
============= =============
Weighted average shares outstanding 1,718,968 1,718,968
============= =============
See Notes to Consolidated Financial Statements
5
================================================================================
Grayson Bankshares, Inc. and Subsidiary
Consolidated Statements of Stockholders' Equity
For the Nine Months ended September 30, 2000 (unaudited)
and the Year ended December 31, 1999 (audited)
- --------------------------------------------------------------------------------
Accumulated
Other
Common Stock Retained Comprehensive
Shares Amount Surplus Earnings Income (Loss) Total
----------- ----------- ----------- ----------- ----------- -----------
Balance, December 31, 1998 859,484 $ 1,074,355 $ 521,625 $15,256,525 $ 175,695 $17,028,200
Comprehensive income
Net income - - - 1,944,153 - 1,944,153
Net change in unrealized
depreciation on investment
securities available for
sale, net of taxes of $(265,314) - - - - (515,021) (515,021)
-----------
Total comprehensive income 1,429,132
Dividends paid
($.33 per share) - - - (567,260) - (567,260)
Stock split, effected in the
form of a dividend 859,484 1,074,355 - (1,074,355) - -
----------- ----------- ----------- ----------- ----------- -----------
Balance, December 31, 1999 1,718,968 2,148,710 521,625 15,559,063 (339,326) 17,890,072
Comprehensive income
Net income - - - 1,651,969 - 1,651,969
Net change in unrealized
depreciation on investment
securities available for
sale, net of taxes of $47,787 - - - - 92,763 92,763
-----------
Total comprehensive income 1,744,732
Dividends paid
($.18 per share) - - - (309,414) - (309,414)
----------- ----------- ----------- ----------- ----------- -----------
Balance, September 30, 2000 1,718,968 $ 2,148,710 $ 521,625 $16,901,618 $ (246,563) $19,325,390
=========== =========== =========== =========== =========== ===========
See Notes to Consolidated Financial Statements
6
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Grayson Bankshares, Inc. and Subsidiary
Consolidated Statements of Cash Flows
For the Nine Months ended September 30, 2000 and 1999
- --------------------------------------------------------------------------------
Nine Months Ended
September 30,
2000 1999
------------ ------------
(Unaudited) (Unaudited)
Cash flows from operating activities:
Net income $ 1,651,969 $ 1,408,265
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation and amortization 170,400 135,000
Provision for loan losses 200,000 220,000
Deferred income taxes (67,000) (4,000)
Net realized gains on securities (4,738) -
Accretion of discount on securities, net of
amortization of premiums 7,086 10,319
Deferred compensation 44,848 41,705
Changes in assets and liabilities:
Accrued income (470,923) (144,706)
Other assets (51,536) (34,784)
Accrued interest payable 441,559 397,889
Other liabilities (18,009) 59,876
------------ ------------
Net cash provided by operating activities 1,903,656 2,089,564
------------ ------------
Cash flows from investing activities:
(Increase) decrease in interest-bearing deposits with banks - -
Net (increase) decrease in federal funds sold 3,541,752 3,419,644
Purchases of investment securities (1,904,605) (3,764,163)
Sales of investment securities 380,500 2,674,500
Maturities of investment securities 2,712,392 1,940,837
Net increase in loans (13,563,036) (11,580,681)
Purchases of property and equipment, net of sales (708,080) (345,563)
------------ ------------
Net cash used in investing activities (9,541,077) (7,655,426)
------------ ------------
Cash flows from financing activities:
Net increase (decrease) in demand,
savings and NOW deposits (147,581) 2,468,638
Net increase in time deposits 5,919,256 3,277,777
Dividends paid (309,414) (275,036)
Net increase (decrease) in short-term debt - -
------------ ------------
Net cash provided by financing activities 5,462,261 5,471,379
------------ ------------
Net increase (decrease) in cash and cash equivalents (2,175,160) (94,483)
Cash and cash equivalents, beginning 7,773,049 5,017,069
------------ ------------
Cash and cash equivalents, ending $ 5,597,889 $ 4,922,586
============ ============
Supplemental disclosure of cash flow information:
Interest paid $ 4,511,873 $ 3,999,543
============ ============
Taxes paid $ 580,500 $ 350,000
============ ============
See Notes to Consolidated Financial Statements
7
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Grayson Bankshares, Inc. and Subsidiary
Notes to Consolidated Financial Statements
- --------------------------------------------------------------------------------
Note 1. Organization and Summary of Significant Accounting Policies
Organization
Grayson Bankshares, Inc. (the Company) was incorporated as a Virginia
corporation on February 3, 1992 to acquire the stock of The Grayson National
Bank (the Bank). The Bank was acquired by the Company on July 1, 1992.
The Bank was organized under the laws of the United States in 1900 and currently
serves Grayson County, Virginia and surrounding areas through six banking
offices. As an FDIC insured, National Banking Association, the Bank is subject
to regulation by the Comptroller of the Currency. The Company is regulated by
the Federal Reserve.
The consolidated financial statements as of September 30, 2000 and for the
periods ended September 30, 2000 and 1999 included herein have been prepared by
the Company without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. In the opinion of management, the
information furnished in the interim consolidated financial statements reflects
all adjustments necessary to present fairly the Company's consolidated financial
position, results of operations, changes in stockholders' equity and cash flows
for such interim periods. Management believes that all interim period
adjustments are of a normal recurring nature. These consolidated financial
statements should be read in conjunction with the Company's audited financial
statements and the notes thereto as of December 31, 1999, included in the
Company's annual report to shareholders for the fiscal year ended December 31,
1999 and the Company's registration statement on Form 10, as filed with the
Securities and Exchange Commission.
The accounting and reporting policies of the Company and the Bank follow
generally accepted accounting principles and general practices within the
financial services industry.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and
the Bank, which is wholly owned. All significant, intercompany transactions and
balances have been eliminated in consolidation.
Note 2. Allowance for Loan Losses
The following is an analysis of the allowance for loan losses for the nine
months ended September 30.
2000 1999
------------- -------------
Balance, beginning $ 1,731,096 $ 1,677,171
Provision charged to expense 200,000 220,000
Recoveries of amounts charged off 43,402 138,002
Amounts charged off (101,747) (378,121)
------------- -------------
Balance, ending $ 1,872,751 $ 1,657,052
============= =============
8
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Grayson Bankshares, Inc. and Subsidiary
Notes to Consolidated Financial Statements
- --------------------------------------------------------------------------------
Note 3. Income Taxes
A reconciliation of income tax expense computed at the statutory federal income
tax rate to income tax expense included in the statements of income for the nine
months ended September 30, 2000 and 1999 follows:
2000 1999
------------- -------------
Tax at statutory federal rate $ 738,809 $ 596,450
Tax exempt interest income (163,180) (188,445)
Alternative minimum tax credit (77,064) (86,154)
Other 22,435 24,149
------------- -------------
$ 521,000 $ 346,000
============= =============
Note 4. Commitments and Contingencies
Financial Instruments with Off-Balance-Sheet Risk
The Bank is party to financial instruments with off-balance-sheet risk in the
normal course of business to meet the financing needs of its customers. These
financial instruments include commitments to extend credit and standby letters
of credit. These instruments involve, to varying degrees, credit risk in excess
of the amount recognized in the consolidated balance sheets.
The Bank's exposure to credit loss in the event of nonperformance by the other
party to the financial instrument for commitments to extend credit and standby
letters of credit is represented by the contractual amount of those instruments.
The Bank uses the same credit policies in making commitments and conditional
obligations as for on-balance-sheet instruments. A summary of the Bank's
commitments at September 30, 2000 and 1999 is as follows:
2000 1999
------------- -------------
Commitments to extend credit $ 3,930,983 $ 5,431,726
Standby letters of credit - -
------------- -------------
$ 3,930,983 $ 5,431,726
============= =============
Commitments to extend credit are agreements to lend to a customer as long as
there is no violation of any condition established in the contract. Commitments
generally have fixed expiration dates or other termination clauses and may
require payment of a fee. Since many of the commitments are expected to expire
without being drawn upon, the total commitment amounts do not necessarily
represent future cash requirements. The Bank evaluates each customer's
creditworthiness on a case-by-case basis. The amount of collateral obtained, if
deemed necessary by the Bank upon extension of credit, is based on management's
credit evaluation of the party. Collateral held varies, but may include accounts
receivable, inventory, property and equipment, residential real estate and
income-producing commercial properties.
Standby letters of credit are conditional commitments issued by the Bank to
guarantee the performance of a customer to a third party. Those guarantees are
primarily issued to support public and private borrowing arrangements. The
credit risk involved in issuing letters of credit is essentially the same as
that involved in extending loan facilities to customers. Collateral held varies
as specified above and is required in instances which the Bank deems necessary.
9
================================================================================
Part I: Financial Information
Item 2: Management's Discussion and Analysis of Financial Condition and Results
of Operations
- --------------------------------------------------------------------------------
General
The following discussion provides information about the major components of the
results of operations and financial condition of the Company. This discussion
and analysis should be read in conjunction with the Consolidated Financial
Statements and Notes to Consolidated Financial Statements included in this
report.
Results of Operations
Net income for the quarter ended September 30, 2000, was $550,437 compared to
$545,739 for the quarter ended September 30, 1999. Net income before taxes for
the third quarter was up $108,698, or 16.58% over the same quarter last year.
Income tax expense increased by $104,000 compared to the same quarter last year
as alternative minimum tax credits, which were available in 1999, were exhausted
in the first quarter of 2000. Net interest income increased by $116,073 to
$1,661,392 for the quarter ended September 30, 2000 compared to $1,545,319 for
the quarter ended September 30, 1999. The increase in net income and net
interest income was due to an increase in loans of over $17.7 million from
September 30, 1999 to September 30, 2000, accompanied by an overall increase in
yields on average earning assets.
Interest expense for the quarter ended September 30, 2000 was $1,747,280, up
$270,197 from $1,477,083 for the quarter ended September 30, 1999. The increase
was due to an increase in total interest bearing deposits, primarily in
higher-yielding time deposits.
The provision for credit losses was $80,000 for the quarter ended September 30,
2000 and $65,000 for the quarter ended September 30, 1999. As of September 30,
2000, the allowance for loan losses represented 1.37% of total loans. Management
believes that the current provision and the resulting allowance for loan losses
are adequate.
Net income for the nine months ended September 30, 2000, was $1,651,969 compared
to $1,408,265 for the nine months ended September 30, 1999, representing an
increase of 17.31%. Net interest income increased by $582,536 to $4,863,814 for
the nine months ended September 30, 2000 compared to $4,281,278 for the nine
months ended September 30, 1999. The increase in net income and net interest
income was again due to an increase in loans accompanied by an overall increase
in yields on average earning assets.
Interest expense for the nine months ended September 30, 2000 was $4,953,432, up
$556,000 from $4,397,432 for the nine months ended September 30, 1999. The
increase was due to an increase in total interest bearing deposits as well as an
increase in the percentage of higher yielding time deposits.
Financial Condition
Total assets increased by $7,675,391 from December 31, 1999 to September 30,
2000. Net loans increased by $13,363,036. Cash and balances due from banks
decreased by $2,175,160 during the nine-month period as excess cash reserves,
which had been accumulated due to Y2K concerns, were eliminated.
Federal funds sold decreased by $3,541,752 from December 31, 1999 to September
30, 2000 as excess balances were used to fund increased loan demand. Management
believes, however, that liquidity remains sufficient to meet financial
commitments and to fund additional loan demand or withdrawal of existing
deposits. The Bank's primary sources of liquidity include remaining balances in
federal funds sold, investment securities classified as "available for sale" as
well as unused lines of credit with correspondent banks.
10
Shareholders' equity totaled $19,325,390 at September 30, 2000 compared to
$17,890,072 at December 31, 1999. The $1,435,318 increase was the result of
earnings for the nine months and an increase in the market value of securities
that are classified as available for sale, less the payment of dividends
totaling $309,414.
Regulatory guidelines relating to capital adequacy provide minimum risk-based
ratios at the Bank level which assess capital adequacy while encompassing all
credit risks, including those related to off-balance sheet activities. The Bank
(a wholly owned subsidiary of the Company) exceeds all regulatory capital
guidelines and is considered to be well capitalized.
Forward-Looking Statements
Certain information contained in this discussion may include "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended.
These forward-looking statements are generally identified by phrases such as
"the Company expects," "the Company believes" or words of similar import. Such
forward-looking statements involve known and unknown risks including, but not
limited to, changes in general economic and business conditions, interest rate
fluctuations, competition within and from outside the banking industry, new
products and services in the banking industry, risk inherent in making loans
such as repayment risks and fluctuating collateral values, problems with
technology utilized by the Company, changing trends in customer profiles and
changes in laws and regulations applicable to the Company. Although the Company
believes that its expectations with respect to the forward-looking statements
are based upon reliable assumptions within the bounds of its knowledge of its
business and operations, there can be no assurance that actual results,
performance or achievements of the Company will not differ materially from any
future results, performance or achievements expressed or implied by such
forward-looking statements.
11
Item 3: Quantitative and Qualitative Disclosures about Market Risk
- --------------------------------------------------------------------------------
The principal goals of the Bank's asset and liability management strategy are
the maintenance of adequate liquidity and the management of interest rate risk.
Liquidity is the ability to convert assets to cash to fund depositors'
withdrawals or borrowers' loans without significant loss. Interest rate risk
management balances the effects of interest rate changes on assets that earn
interest or liabilities on which interest is paid, to protect the Bank from wide
fluctuations in its net interest income which could result from interest rate
changes.
Management must insure that adequate funds are available at all times to meet
the needs of its customers. On the asset side of the balance sheet, maturing
investments, loan payments, maturing loans, federal funds sold, and unpledged
investment securities are principal sources of liquidity. On the liability side
of the balance sheet, liquidity sources include core deposits, the ability to
increase large denomination certificates, federal fund lines from correspondent
banks, borrowings from the Federal Reserve Bank, as well as the ability to
generate funds through the issuance of long-term debt and equity.
Interest rate risk is the effect that changes in interest rates would have on
interest income and interest expense as interest-sensitive assets and
interest-sensitive liabilities either reprice or mature. Management attempts to
maintain the portfolios of interest-earning assets and interest-bearing
liabilities with maturities or repricing opportunities at levels that will
afford protection from erosion of net interest margin, to the extent practical,
from changes in interest rates.
The Bank uses a number of tools to manage its interest rate risk, including
simulating net interest income under various scenarios, monitoring the present
value change in equity under the same scenarios, and monitoring the difference
or gap between rate sensitive assets and rate sensitive liabilities over various
time periods.
The earnings simulation model forecasts annual net income under a variety of
scenarios that incorporate changes in the absolute level of interest rates,
changes in the shape of the yield curve and changes in interest rate
relationships. Management evaluates the effect on net interest income and
present value equity from gradual changes in rates of up to 400 basis points up
or down over a 12-month period. The following table presents the Bank's
forecasts for changes in net income and market value of equity as of September
30, 2000.
12
Table: Interest Rate Risk (dollars in thousands)
- ------------------------------------------------------------------------------------------------------------------------------
Rate Shocked Interest Margin and Market Value of Equity
- ------------------------------------------------------------------------------------------------------------------------------
Rate Change -400bp -300bp -200bp -100bp 0bp +100bp +200bp +300bp +400bp
-------- -------- -------- -------- -------- -------- -------- -------- --------
Interest Income:
Federal funds sold $ 171 $ 189 $ 207 $ 225 $ 244 $ 262 $ 280 $ 298 $ 316
Investments 1,784 1,796 1,808 1,820 1,832 1,844 1,855 1,867 1,879
Loans 10,669 10,968 11,267 11,565 11,841 12,108 12,372 12,637 12,898
------------------------------------------------------------------------------------------------
Total interest income 12,624 12,953 13,282 13,610 13,917 14,214 14,507 14,802 15,093
Interest Expense:
Deposits 6,283 6,477 6,671 6,865 7,060 7,250 7,441 7,632 7,823
Federal funds purchased - - - - - - - - -
Other borrowings - - - - - - - - -
------------------------------------------------------------------------------------------------
Total interest expense 6,283 6,477 6,671 6,865 7,060 7,250 7,441 7,632 7,823
Interest Margin $ 6,341 $ 6,476 $ 6,611 $ 6,745 $ 6,857 $ 6,964 $ 7,066 $ 7,170 $ 7,270
Actual Dollars at Risk $ 516 $ 381 $ 246 $ 112 $ - $ - $ - $ - $ -
Market value of assets $183,131 $181,397 $179,677 $177,942 $176,103 $174,240 $172,400 $170,595 $168,787
Market value of liabilities 168,818 167,247 165,675 164,104 162,533 160,962 159,391 157,819 156,248
------------------------------------------------------------------------------------------------
Market Value of Equity $ 14,313 $ 14,150 $ 14,002 $ 13,838 $ 13,570 $ 13,278 $ 13,009 $ 12,776 $ 12,539
13
================================================================================
Grayson Bankshares, Inc. and Subsidiary
Part II: Other Information
- --------------------------------------------------------------------------------
Item 1. Legal Proceedings
There are no matters pending legal proceedings to which the Company or
its subsidiary is a party or of which any of their property is subject.
Item 2. Changes in Securities and Use of Proceeds
Not applicable
Item 3. Defaults Upon Senior Securities
Not applicable
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule (filed electronically only)
(b) Reports on 8-K
None
14
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
GRAYSON BANKSHARES, INC.
Date: November 6, 2000 By: /s/Jacky K. Anderson
President and CEO
By: /s/Blake M. Edwards
Chief Financial Officer
15