(dollars
in thousands, except per share data) |
2004 |
2003 |
|||||
BALANCE
SHEET |
|||||||
Assets |
$ |
499,347 |
$ |
463,878 |
|||
Deposits |
419,074
|
385,691
|
|||||
Net
Loans |
355,774
|
314,037
|
|||||
Investments |
95,747
|
106,587
|
|||||
Stockholders'
Equity |
40,789
|
38,529
|
|||||
STATEMENT
OF INCOME |
|||||||
Interest
Income |
26,606
|
25,615
|
|||||
Interest
Expense |
9,235
|
8,826
|
|||||
Net
Interest Income |
17,371
|
16,789
|
|||||
Net
Income |
5,267
|
4,879
|
|||||
PER
SHARE DATA |
|||||||
Net
Income |
1.85
|
1.70
|
|||||
Cash
Dividends |
0.78
|
0.74
|
|||||
TRUST
DEPARTMENT |
|||||||
Trust
Assets Managed |
67,459
|
70,384
|
|
Randall E. Black |
CEO & President |
December
31, |
|||||||
(in
thousands, except share data) |
2004 |
2003 |
|||||
ASSETS: |
|||||||
Cash
and due from banks: |
|||||||
Noninterest-bearing |
$ |
9,162 |
$ |
9,624 |
|||
Interest-bearing |
177
|
327
|
|||||
Total
cash and cash equivalents |
9,339
|
9,951
|
|||||
Available-for-sale
securities |
95,747
|
106,587
|
|||||
Loans
(net of allowance for loan losses |
|||||||
2004,
$3,919; 2003, $3,620) |
355,774
|
314,037
|
|||||
Premises
and equipment |
11,833
|
10,645
|
|||||
Accrued
interest receivable |
1,736
|
1,703
|
|||||
Goodwill |
8,605
|
6,905
|
|||||
Core
deposit intangible |
1,262
|
978
|
|||||
Bank
owned life insurance |
7,449
|
7,142
|
|||||
Other
assets |
7,602
|
5,930
|
|||||
TOTAL
ASSETS |
$ |
499,347 |
$ |
463,878 |
|||
LIABILITIES: |
|||||||
Deposits: |
|||||||
Noninterest-bearing |
$ |
46,866 |
$ |
46,820 |
|||
Interest-bearing |
372,208
|
338,871
|
|||||
Total
deposits |
419,074
|
385,691
|
|||||
Borrowed
funds |
34,975
|
35,296
|
|||||
Accrued
interest payable |
1,870
|
1,888
|
|||||
Other
liabilities |
2,639
|
2,474
|
|||||
TOTAL
LIABILITIES |
458,558
|
425,349
|
|||||
STOCKHOLDERS'
EQUITY: |
|||||||
Common
Stock |
|||||||
$1.00
par value; authorized 10,000,000 shares; |
|||||||
issued
2,937,519 and 2,909,849 |
|||||||
shares
in 2004 and 2003, respectively |
2,938
|
2,910
|
|||||
Additional
paid-in capital |
10,804
|
10,213
|
|||||
Retained
earnings |
28,894
|
26,455
|
|||||
TOTAL |
42,636
|
39,578
|
|||||
Accumulated
other comprehensive income |
164
|
956
|
|||||
Less:
Treasury stock, at cost |
|||||||
97,262
and 96,962 shares for 2004 and 2003, respectively |
(2,011 |
) |
(2,005 |
) | |||
TOTAL
STOCKHOLDERS' EQUITY |
40,789
|
38,529
|
|||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
499,347 |
$ |
463,878 |
|||
See
accompanying notes to consolidated financial
statements. |
|
Year
Ended December 31, |
|||||||||
(in
thousands, except per share data) |
2004 |
2003 |
2002 |
|||||||
INTEREST
INCOME: |
||||||||||
Interest
and fees on loans |
$ |
22,600 |
$ |
21,593 |
$ |
21,600 |
||||
Interest-bearing
deposits with banks |
10
|
29
|
65
|
|||||||
Investment
securities: |
||||||||||
Taxable |
3,413
|
3,222
|
4,711
|
|||||||
Nontaxable |
301
|
457
|
634
|
|||||||
Dividends |
282
|
314
|
367
|
|||||||
TOTAL
INTEREST INCOME |
26,606
|
25,615
|
27,377
|
|||||||
INTEREST
EXPENSE: |
||||||||||
Deposits |
8,283
|
8,501
|
10,012
|
|||||||
Borrowed
funds |
952
|
325
|
392
|
|||||||
TOTAL
INTEREST EXPENSE |
9,235
|
8,826
|
10,404
|
|||||||
NET
INTEREST INCOME |
17,371
|
16,789
|
16,973
|
|||||||
Provision
for loan losses |
-
|
435
|
435
|
|||||||
NET
INTEREST INCOME AFTER PROVISION FOR |
||||||||||
LOAN
LOSSES |
17,371
|
16,354
|
16,538
|
|||||||
NON-INTEREST
INCOME: |
||||||||||
Service
charges |
3,017
|
3,018
|
3,130
|
|||||||
Trust |
434
|
422
|
467
|
|||||||
Brokerage |
185
|
200
|
95
|
|||||||
Gains
on loans sold |
54
|
349
|
185
|
|||||||
Investment
securities (losses) gains, net |
(235 |
) |
553
|
254
|
||||||
Earnings
on bank owned life insurance |
307
|
142
|
-
|
|||||||
Other |
530
|
628
|
915
|
|||||||
TOTAL
NON-INTEREST INCOME |
4,292
|
5,312
|
5,046
|
|||||||
NON-INTEREST
EXPENSES: |
||||||||||
Salaries
and employee benefits |
7,636
|
8,304
|
7,120
|
|||||||
Occupancy
|
1,072
|
1,025
|
998
|
|||||||
Furniture
and equipment |
695
|
713
|
881
|
|||||||
Professional
fees |
630
|
694
|
667
|
|||||||
Amortization
of intangibles |
506
|
435
|
457
|
|||||||
Other |
4,383
|
4,330
|
4,103
|
|||||||
TOTAL
NON-INTEREST EXPENSES |
14,922
|
15,501
|
14,226
|
|||||||
Income
before provision for income taxes |
6,741
|
6,165
|
7,358
|
|||||||
Provision
for income taxes |
1,474
|
1,286
|
1,763
|
|||||||
NET
INCOME |
$ |
5,267 |
$ |
4,879 |
$ |
5,595 |
||||
NET
INCOME - EARNINGS PER SHARE |
$ |
1.85 |
$ |
1.70 |
$ |
1.94 |
||||
CASH
DIVIDENDS PER SHARE |
$ |
0.78 |
$ |
0.74 |
$ |
0.67 |
||||
See
accompanying notes to consolidated financial
statements. |
Accumulated |
||||||||||||||||||||||
Additional |
Other |
|||||||||||||||||||||
Common
Stock |
Paid-in |
Retained |
Comprehensive |
Treasury |
||||||||||||||||||
(in
thousands, except share data) |
Shares |
Amount |
Capital |
Earnings |
Income(Loss) |
Stock |
Total |
|||||||||||||||
Balance,
December 31, 2001 |
2,854,582
|
$
2,855 |
$
9,017 |
$
21,253 |
$
1,213 |
$
(949 |
) |
$
33,389 |
||||||||||||||
Comprehensive
income: |
||||||||||||||||||||||
Net
income |
5,595
|
5,595
|
||||||||||||||||||||
Change
in net unrealized gain on securities |
||||||||||||||||||||||
available-for-sale,
net of taxes of $690 |
1,340
|
1,340
|
||||||||||||||||||||
Total
comprehensive income |
6,935
|
|||||||||||||||||||||
Stock
dividend |
27,488
|
27
|
456
|
(483 |
) |
|||||||||||||||||
Cash
dividends, $.67 per share |
(1,918 |
) |
(1,918 |
) | ||||||||||||||||||
Balance,
December 31, 2002 |
2,882,070
|
2,882
|
9,473
|
24,447
|
2,553
|
(949 |
) |
38,406
|
||||||||||||||
Comprehensive
income: |
||||||||||||||||||||||
Net
income |
4,879
|
4,879
|
||||||||||||||||||||
Change
in net unrealized loss on securities |
||||||||||||||||||||||
available-for-sale,
net of tax benefit of $823 |
(1,597 |
) |
(1,597 |
) | ||||||||||||||||||
Total
comprehensive income |
3,282
|
|||||||||||||||||||||
Stock
dividend |
27,779
|
28
|
740
|
(768 |
) |
|||||||||||||||||
Purchase
of treasury stock (41,800 shares) |
(1,056 |
) |
(1,056 |
) | ||||||||||||||||||
Cash
dividends, $.74 per share |
(2,103 |
) |
(2,103 |
) | ||||||||||||||||||
Balance,
December 31, 2003 |
2,909,849
|
2,910
|
10,213
|
26,455
|
956
|
(2,005 |
) |
38,529
|
||||||||||||||
Comprehensive
income: |
||||||||||||||||||||||
Net
income |
5,267
|
5,267
|
||||||||||||||||||||
Change
in net unrealized loss on securities |
||||||||||||||||||||||
available-for-sale,
net of tax benefit of $408 |
(792 |
) |
(792 |
) | ||||||||||||||||||
Total
comprehensive income |
4,475
|
|||||||||||||||||||||
Stock
dividend |
27,670
|
28
|
591
|
(619 |
) |
|
||||||||||||||||
Purchase
of treasury stock (300 shares) |
(6 |
) |
(6 |
) | ||||||||||||||||||
Cash
dividends, $.78 per share |
(2,209 |
) |
(2,209 |
) | ||||||||||||||||||
Balance,
December 31, 2004 |
2,937,519
|
$ |
2,938 |
$ |
10,804 |
$ |
28,894 |
$ |
164 |
$ |
(2,011 |
) |
$ |
40,789 |
2004
|
2003
|
2002
|
||||||||
Components
of comprehensive income (loss): |
||||||||||
Change
in net unrealized gain (loss) on investment |
||||||||||
securities
available-for-sale |
$ |
(947 |
) |
$ |
(1,232 |
) |
$ |
1,508 |
||
Investment
losses (gains) included in net income, net |
|
|||||||||
of
taxes (benefits) of $(80), $188 and $86 |
155
|
(365 |
) |
(168 |
) | |||||
Total |
$ |
(792 |
) |
$ |
(1,597 |
) |
$ |
1,340 |
Year
Ended December 31, | ||||||||||
(in
thousands) |
2004 |
2003 |
2002 |
|||||||
Cash
Flows from Operating Activities: |
||||||||||
Net
income |
$ |
5,267 |
$ |
4,879 |
$ |
5,595 |
||||
Adjustments
to reconcile net income to net |
||||||||||
cash
provided by operating activities: |
||||||||||
Provision
for loan losses |
-
|
435
|
435
|
|||||||
Depreciation
and amortization |
1,444
|
1,358
|
1,447
|
|||||||
Amortization
and accretion on investment securities |
912
|
1,129
|
690
|
|||||||
Deferred
income taxes |
(166 |
) |
(141 |
) |
116
|
|||||
Investment
securities losses (gains), net |
235
|
(553 |
) |
(254 |
) | |||||
Earnings
on bank owned life insurance |
(307 |
) |
(142 |
) |
-
|
|||||
Realized
gains on loans sold |
(54 |
) |
(349 |
) |
(185 |
) | ||||
Originations
of loans held for sale |
(3,048 |
) |
(22,435 |
) |
(11,857 |
) | ||||
Proceeds
from sales of loans held for sale |
3,102
|
23,749
|
13,119
|
|||||||
Decrease
(increase) in accrued interest receivable |
(33 |
) |
273
|
10
|
||||||
Decrease
in accrued interest payable |
(18 |
) |
(189 |
) |
(208 |
) | ||||
Other,
net |
(167 |
) |
1,626
|
(1,128 |
) | |||||
Net
cash provided by operating activities |
7,167
|
9,640
|
7,780
|
|||||||
Cash
Flows from Investing Activities: |
||||||||||
Available-for-sale
securities: |
||||||||||
Proceeds
from sales of available-for-sale securities |
14,045
|
12,108
|
13,927
|
|||||||
Proceeds
from maturity and principal repayments of securities |
24,571
|
49,343
|
34,090
|
|||||||
Purchase
of securities |
(30,122 |
) |
(71,320 |
) |
(32,899 |
) | ||||
Proceeds
from redemption of Regulatory Stock |
1,585
|
746
|
1,082
|
|||||||
Purchase
of Regulatory Stock |
(1,814 |
) |
(1,757 |
) |
(421 |
) | ||||
Net
increase in loans |
(15,405 |
) |
(20,819 |
) |
(28,045 |
) | ||||
Purchase
of loans |
(27,340 |
) |
-
|
-
|
||||||
Purchase
of bank owned life insurance |
-
|
(7,000 |
) |
-
|
||||||
Purchase
of premises and equipment |
(2,319 |
) |
(490 |
) |
(473 |
) | ||||
Proceeds
from sale of premises and equipment |
34
|
-
|
275
|
|||||||
Deposit
acquisition premium |
(2,200 |
) |
-
|
-
|
||||||
Proceeds
from sale of foreclosed assets held for sale |
338
|
155
|
422
|
|||||||
Net
cash used in investing activities |
(38,627 |
) |
(39,034 |
) |
(12,042 |
) | ||||
Cash
Flows from Financing Activities: |
||||||||||
Net
increase in deposits |
12,720
|
12,641
|
2,577
|
|||||||
Proceeds
from long-term borrowings |
654
|
18,202
|
1,268
|
|||||||
Repayments
of long-term borrowings |
(1,519 |
) |
(2,569 |
) |
(949 |
) | ||||
Net
increase in short-term borrowed funds |
545
|
2,636
|
3,398
|
|||||||
Dividends
paid |
(2,209 |
) |
(2,103 |
) |
(1,918 |
) | ||||
Deposits
of acquired branches |
20,663
|
-
|
-
|
|||||||
Purchase
of treasury stock |
(6 |
) |
(1,056 |
) |
-
|
|||||
Net
cash provided by financing activities |
30,848
|
27,751
|
4,376
|
|||||||
Net
(decrease) increase in cash and cash equivalents |
(612 |
) |
(1,643 |
) |
114
|
|||||
Cash
and Cash Equivalents at Beginning of Year |
9,951
|
11,594
|
11,480
|
|||||||
Cash
and Cash Equivalents at End of Year |
$ |
9,339 |
$ |
9,951 |
$ |
11,594 |
||||
Supplemental
Disclosures of Cash Flow Information: |
||||||||||
Interest
paid |
$ |
9,253 |
$ |
9,015 |
$ |
10,612 |
||||
Income
taxes paid |
$ |
1,780 |
$ |
1,265 |
$ |
1,755 |
||||
Noncash
activities: |
||||||||||
Real
estate acquired in settlement of loans |
$ |
718 |
$ |
218 |
$ |
162 |
||||
See
accompanying notes to consolidated financial
statements. |
Gross |
Gross |
Estimated |
|||||||||||
Amortized |
Unrealized |
Unrealized |
Fair |
||||||||||
December
31, 2004 |
Cost |
Gains |
Losses |
Value |
|||||||||
Available-for-sale
securities: |
|||||||||||||
U.S.
Agency securities |
$ |
5,829 |
$ |
- |
$ |
(17 |
) |
$ |
5,812 |
||||
Obligations
of state and |
|||||||||||||
political
subdivisions |
7,203
|
249
|
-
|
7,452
|
|||||||||
Corporate
obligations |
8,523
|
412
|
-
|
8,935
|
|||||||||
Mortgage-backed
securities |
70,845
|
204
|
(600 |
) |
70,449
|
||||||||
Equity
securities |
3,099
|
-
|
-
|
3,099
|
|||||||||
Total
available-for-sale |
$ |
95,499 |
$ |
865 |
$ |
(617 |
) |
$ |
95,747 |
Gross |
Gross |
Estimated |
|||||||||||
Amortized |
Unrealized |
Unrealized |
Fair |
||||||||||
December
31, 2003 |
Cost |
Gains |
Losses |
|
|
Value |
|||||||
Available-for-sale
securities: |
|||||||||||||
U.S.
Agency securities |
$ |
1,005 |
$ |
28 |
$ |
- |
$ |
1,033 |
|||||
Obligations
of state and |
|||||||||||||
political
subdivisions |
8,011
|
292
|
-
|
8,303
|
|||||||||
Corporate
obligations |
13,656
|
1,018
|
-
|
14,674
|
|||||||||
Mortgage-backed
securities |
78,080
|
671
|
(375 |
) |
78,376
|
||||||||
Equity
securities |
4,387
|
35
|
(221 |
) |
4,201
|
||||||||
Total
available-for-sale |
$ |
105,139 |
$ |
2,044 |
$ |
(596 |
) |
$ |
106,587 |
Less
than Twelve Months |
|
Twelve
Months or Greater |
|
Total |
|||||||||||||||
Approx |
Gross |
Approx |
Gross |
Approx |
Gross |
||||||||||||||
Market |
Unrealized |
Market |
Unrealized |
Market |
Unrealized |
||||||||||||||
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
|
|
Value |
|
|
Losses |
| |
U.S.
Government agencies |
|||||||||||||||||||
and
corporations |
$ |
4,131 |
$ |
17 |
$ |
- |
$ |
- |
$ |
4,131 |
$ |
17 |
|||||||
Mortgage-backed
securities |
47,525
|
472
|
12,006
|
128
|
59,531
|
600
|
|||||||||||||
Total |
$ |
51,656 |
$ |
489 |
$ |
12,006 |
$ |
128 |
$ |
63,662 |
$ |
617 |
2004 |
2003 |
|
2002 |
|||||||
Gross
gains |
$ |
517 |
$ |
553 |
$ |
287 |
||||
Gross
losses |
26
|
-
|
33
|
|||||||
Net
gains (losses) |
$ |
491 |
$ |
553 |
$ |
254 |
Amortized |
Estimated |
||||||
Cost |
|
Fair
Value |
|||||
Available-for-sale
securities: |
|||||||
Due
in one year or less |
$ |
- |
$ |
- |
|||
Due
after one year through five years |
16,522
|
16,943
|
|||||
Due
after five years through ten years |
59,814
|
59,529
|
|||||
Due
after ten years |
16,064
|
16,176
|
|||||
Total |
$ |
92,400 |
$ |
92,648 |
December
31, |
|||||||
2004 |
2003 |
||||||
Real
estate loans: |
|||||||
Residential |
$ |
189,803 |
$ |
180,333 |
|||
Commercial |
75,228
|
57,370
|
|||||
Agricultural |
11,564
|
7,594
|
|||||
Construction |
7,282
|
5,784
|
|||||
Loans
to individuals for household, |
|||||||
family
and other purchases |
12,657
|
13,145
|
|||||
Commercial
and other loans |
28,069
|
16,219
|
|||||
State
and political subdivision loans |
35,090
|
37,212
|
|||||
359,693
|
317,657
|
||||||
Less
allowance for loan losses |
3,919
|
3,620
|
|||||
Loans,
net |
$ |
355,774 |
$ |
314,037 |
2004 |
2003 |
|
2002 |
|||||||
Impaired
loans without related allowance for loan losses |
$ |
229 |
$ |
1,197 |
$ |
- |
||||
Impaired
loans with related allowance for loan losses |
832
|
729
|
1,916
|
|||||||
Related
allowance for loan losses |
6
|
35
|
327
|
|||||||
Average
recorded balance of impaired loans |
1,091
|
1,772
|
1,967
|
|||||||
Interest
income recognized on impaired loans |
18
|
35
|
-
|
Year
Ended December 31, | ||||||||||
|
2004 |
|
|
2003 |
|
|
2002 |
|||
Balance,
beginning of year |
$ |
3,620 |
$ |
3,621 |
$ |
3,250 |
||||
Provision
charged to income |
-
|
435
|
435
|
|||||||
Increase
related to acquisition |
290
|
-
|
-
|
|||||||
Recoveries
on loans previously |
||||||||||
charged
against the allowance |
324
|
116
|
115
|
|||||||
4,234
|
4,172
|
3,800
|
||||||||
Loans
charged against the allowance |
(315 |
) |
(552 |
) |
(179 |
) | ||||
Balance,
end of year |
$ |
3,919 |
$ |
3,620 |
$ |
3,621 |
December
31, 2004 | ||||||||||
Past
Due |
Past
Due |
|
||||||||
|
|
|
30
- 89 days |
|
|
90
days or more |
|
|
Nonaccrual |
|
Real
estate loans |
$ |
1,811 |
$ |
346 |
$ |
1,542 |
||||
Installment
loans |
153
|
23
|
36
|
|||||||
Credit
cards and related loans |
20
|
3
|
-
|
|||||||
Commercial
and all other loans |
199
|
65
|
205
|
|||||||
Total |
$ |
2,183 |
$ |
437 |
$ |
1,783 |
December
31, 2003 | ||||||||||
|
Past
Due |
Past
Due |
|
|||||||
|
|
|
30
- 89 days |
|
|
90
days or more |
|
|
Nonaccrual |
|
Real
estate loans |
$ |
1,420 |
$ |
170 |
$ |
2,491 |
||||
Installment
loans |
167
|
12
|
13
|
|||||||
Credit
cards and related loans |
27
|
-
|
-
|
|||||||
Commercial
and all other loans |
38
|
3
|
-
|
|||||||
Total |
$ |
1,652 |
$ |
185 |
$ |
2,504 |
December
31, | |||||||
2004 |
|
|
2003 |
||||
Land |
$ |
2,767 |
$ |
1,867 |
|||
Buildings |
10,484
|
9,723
|
|||||
Furniture,
fixtures and equipment |
6,765
|
6,598
|
|||||
Construction
in process |
56
|
32
|
|||||
20,072
|
18,220
|
||||||
Less
accumulated depreciation |
8,239
|
7,575
|
|||||
Premises
and equipment, net |
$ |
11,833 |
$ |
10,645 |
2005 |
$ |
95,738 |
||
2006 |
44,458
|
|||
2007 |
41,147
|
|||
2008 |
18,581
|
|||
2009 |
12,997
|
|||
Thereafter |
2,856
|
|||
Total
certificates of deposit |
$ |
215,777 |
|
Securities |
|
|
|
|
|
|||||||||||||
|
Sold
Under |
|
|
|
|
Total |
|||||||||||||
|
Agreements
to |
TT&L |
FHLB |
Notes |
Term |
Borrowed |
|||||||||||||
(dollars
in thousands) |
|
Repurchase(a) |
|
Borrowings(b) |
|
Advances(c) |
|
Payable(d) |
|
Loans(e) |
|
Funds |
|||||||
2004 |
|||||||||||||||||||
Balance
at December 31 |
$ |
10,390 |
$ |
- |
$ |
7,085 |
$ |
7,500 |
$ |
10,000 |
$ |
34,975 |
|||||||
Highest
balance at any month-end |
12,927
|
3,217
|
8,062
|
7,500
|
15,821
|
47,527
|
|||||||||||||
Average
balance |
8,325
|
413
|
3,623
|
7,500
|
15,256
|
35,117
|
|||||||||||||
Weighted
average interest rate: |
|||||||||||||||||||
Paid
during the year |
2.69 |
% |
2.96 |
% |
1.73 |
% |
4.36 |
% |
2.14 |
% |
2.27 |
% | |||||||
As
of year-end |
2.93 |
% |
0.00 |
% |
2.21 |
% |
5.30 |
% |
2.35 |
% |
2.53 |
% | |||||||
2003 |
|||||||||||||||||||
Balance
at December 31 |
$ |
8,495 |
$ |
2,203 |
$ |
1,160 |
$ |
7,500 |
$ |
15,938 |
$ |
35,296 |
|||||||
Highest
balance at any month-end |
14,460
|
4,602
|
8,670
|
7,500
|
15,938
|
51,170
|
|||||||||||||
Average
balance |
10,019
|
461
|
2,322
|
308
|
1,167
|
14,277
|
|||||||||||||
Weighted
average interest rate: |
|||||||||||||||||||
Paid
during the year |
2.44 |
% |
2.08 |
% |
1.29 |
% |
4.03 |
% |
2.46 |
% |
2.24 |
% | |||||||
As
of year-end |
2.50 |
% |
0.69 |
% |
1.03 |
% |
3.97 |
% |
2.05 |
% |
2.05 |
% | |||||||
2002 |
|||||||||||||||||||
Balance
at December 31 |
$ |
7,647 |
$ |
- |
$ |
7,380 |
$ |
- |
$ |
2,000 |
$ |
17,027 |
|||||||
Highest
balance at any month-end |
14,897
|
-
|
7,380
|
-
|
2,000
|
24,277
|
|||||||||||||
Average
balance |
11,096
|
-
|
1,208
|
-
|
2,000
|
14,304
|
|||||||||||||
Weighted
average interest rate: |
|||||||||||||||||||
Paid
during the year |
2.69 |
% |
0.00 |
% |
1.59 |
% |
0.00 |
% |
3.64 |
% |
2.73 |
% | |||||||
As
of year-end |
2.94 |
% |
0.00 |
% |
1.31 |
% |
0.00 |
% |
3.13 |
% |
2.25 |
% |
December
31, |
December
31, |
|||||||||
Interest
Rate |
Maturity |
2004 |
2003 |
|||||||
Variable: |
||||||||||
(f) |
August
31, 2005 |
$ |
- |
$ |
938 |
|||||
Fixed: |
||||||||||
2.34% |
December
29, 2004 |
-
|
5,000
|
|||||||
1.81% |
June
17, 2005 |
3,000
|
3,000
|
|||||||
2.45% |
June
19, 2006 |
4,000
|
4,000
|
|||||||
2.76% |
December
18, 2006 |
3,000
|
3,000
|
|||||||
Total
term loans |
$ |
10,000 |
$ |
15,938 |
2005 |
$ |
17,949 |
||
2006 |
8,689
|
|||
2007 |
727
|
|||
2008 |
7,500
|
|||
2009 |
-
|
|||
Thereafter |
110
|
|||
Total
borrowed funds |
$ |
34,975 |
Pension
Benefits | |||||||
2004 |
2003 |
||||||
Change
in benefit obligation |
|||||||
Benefit
obligation at beginning of year |
$ |
4,785 |
$ |
3,926 |
|||
Service
cost |
336
|
340
|
|||||
Interest
cost |
295
|
267
|
|||||
Amendments |
(3 |
) |
222
|
||||
Assumption
change |
498
|
117
|
|||||
Benefits
paid |
(127 |
) |
(87 |
) | |||
Benefit
obligation at end of year |
5,784
|
4,785
|
|||||
Change
in plan assets |
|||||||
Fair
value of plan assets at beginning of year |
4,014
|
3,117
|
|||||
Actual
return on plan assets |
253
|
530
|
|||||
Employer
contribution |
459
|
454
|
|||||
Benefits
paid |
(127 |
) |
(87 |
) | |||
Fair
value of plan assets at end of year |
4,599
|
4,014
|
|||||
Funded
status |
(1,185 |
) |
(771 |
) | |||
Transition
adjustment |
(10 |
) |
(25 |
) | |||
Unrecognized
prior service cost |
25
|
23
|
|||||
Unrecognized
net gain from past experience |
|||||||
different
from that assumed |
1,540
|
1,007
|
|||||
Prepaid
benefit cost |
$ |
370 |
$ |
234 |
Pension
Benefits | |||||||
2004 |
2003 |
||||||
Service
cost |
$ |
336 |
$ |
340 |
|||
Interest
cost |
295
|
267
|
|||||
Return
on plan assets |
(332 |
) |
(530 |
) | |||
Net
amortization and deferral |
24
|
325
|
|||||
Net
periodic benefit cost |
$ |
323 |
$ |
402 |
Pension
Benefits | |||||||
2004 |
|
|
2003 |
||||
Discount
rate |
5.75
|
% |
6.25
|
% | |||
Rate
of compensation increase |
3.25
|
3.25
|
Pension
Benefits | |||||||
2004 |
2003 |
||||||
Discount
rate |
5.75
|
% |
6.25
|
% | |||
Expected
long-term return on plan assets |
8.00
|
8.00
|
|||||
Rate
of compensation increase |
3.25
|
3.25
|
Plan
Assets | |||||||
at
December 31 | |||||||
2004 |
|
|
2003 |
||||
Equity
securities |
67.4
|
% |
67.4
|
% | |||
Debt
securities |
25.0
|
30.3
|
|||||
Other
|
7.6
|
2.3
|
|||||
Total |
100.0
|
% |
100.0
|
% |
2005 |
$ |
115,299 |
||
2006 |
135,675 |
|||
2007 |
149,299 |
|||
2008 |
174,451 |
|||
2009 |
176,270 |
|||
Thereafter |
1,203,940 |
Year
Ended December 31, | ||||||||||
2004 |
|
|
2003 |
|
|
2002 |
||||
Currently
payable |
$ |
1,640 |
$ |
1,427 |
$ |
1,647 |
||||
Deferred
liability (benefit) |
(166 |
) |
(141 |
) |
116
|
|||||
Provision
for income taxes |
$ |
1,474 |
$ |
1,286 |
$ |
1,763 |
2004 |
2003 |
||||||
Deferred
tax assets: |
|||||||
Allowance
for loan losses |
$ |
1,146 |
$ |
1,038 |
|||
Deferred
compensation |
556
|
546
|
|||||
Goodwill
and core deposit intangibles |
-
|
19
|
|||||
Merger
& acquisition costs |
49
|
24
|
|||||
Allowance
for losses on available-for-sale securities |
247
|
-
|
|||||
Foreclosed
assets held for sale |
7
|
3
|
|||||
Total |
2,005
|
1,630
|
|||||
|
|||||||
Deferred
tax liabilities: |
|||||||
Unrealized
gains on available-for-sale securities |
(84 |
) |
(492 |
) | |||
Depreciation
and amortization |
(315 |
) |
(301 |
) | |||
Bond
accretion |
(29 |
) |
(81 |
) | |||
Pension
expense |
(126 |
) |
(80 |
) | |||
Loan
fees and costs |
(94 |
) |
(77 |
) | |||
Goodwill
and core deposit intangibles |
(170 |
) |
-
|
||||
Investment
tax credits |
(28 |
) |
-
|
||||
Mortgage
servicing rights |
(75 |
) |
(88 |
) | |||
Total
|
(921 |
) |
(1,119 |
) | |||
Deferred
tax asset, net |
$ |
1,084 |
$ |
511 |
|
Year
Ended December 31, | |||||||||
2004 |
|
|
2003 |
|
|
2002 |
||||
Provision
at statutory rates on |
||||||||||
pre-tax
income |
$ |
2,287 |
$ |
2,096 |
$ |
2,502 |
||||
Effect
of tax-exempt income |
(648 |
) |
(710 |
) |
(693 |
) | ||||
Tax
credits |
(130 |
) |
(130 |
) |
(130 |
) | ||||
Bank
owned life insurance |
(105 |
) |
(48 |
) |
-
|
|||||
Nondeductible
interest |
54
|
62
|
67
|
|||||||
Other
items |
16
|
16
|
17
|
|||||||
Provision
for income taxes |
$ |
1,474 |
$ |
1,286 |
$ |
1,763 |
||||
Statutory
tax rates |
34 |
% |
34 |
% |
34 |
% | ||||
Effective
tax rates |
21.9 |
% |
20.9 |
% |
24.0 |
% |
Year
Ended December 31, | ||||||||||
2004 |
|
|
2003 |
|
|
2002 |
||||
Balance,
beginning of year |
$ |
3,345 |
$ |
3,678 |
$ |
3,972 |
||||
New
loans |
808
|
1,243
|
847
|
|||||||
Repayments |
(1,063 |
) |
(1,576 |
) |
(1,141 |
) | ||||
Balance,
end of year |
$ |
3,090 |
$ |
3,345 |
$ |
3,678 |
2004 |
2003 | ||||||||||||
Amount |
Ratio |
Amount |
Ratio |
||||||||||
Total
capital (to risk weighted assets) |
|||||||||||||
Company |
$ |
42,156 |
12.86 |
% |
$ |
40,655 |
14.07 |
% | |||||
For
capital adequacy purposes |
26,215
|
8.00 |
% |
23,115
|
8.00 |
% | |||||||
To
be well capitalized |
32,768
|
10.00 |
% |
28,894
|
10.00 |
% | |||||||
Tier
I capital (to risk weighted assets) |
|||||||||||||
Company |
$ |
38,236 |
11.67 |
% |
$ |
37,042 |
12.82 |
% | |||||
For
capital adequacy purposes |
13,107
|
4.00 |
% |
11,557
|
4.00 |
% | |||||||
To
be well capitalized |
19,661
|
6.00 |
% |
17,336
|
6.00 |
% | |||||||
Tier
I capital (to average assets) |
|||||||||||||
Company |
$ |
38,236 |
7.84 |
% |
$ |
37,042 |
8.50 |
% | |||||
For
capital adequacy purposes |
19,504
|
4.00 |
% |
17,437
|
4.00 |
% | |||||||
To
be well capitalized |
24,379
|
5.00 |
% |
21,796
|
5.00 |
% |
2004 |
2003 | ||||||||||||
Amount |
Ratio |
Amount |
Ratio |
||||||||||
Total
capital (to risk weighted assets) |
|||||||||||||
Bank |
$ |
34,184 |
10.44 |
% |
$ |
33,862 |
11.73 |
% | |||||
For
capital adequacy purposes |
26,190
|
8.00 |
% |
23,090
|
8.00 |
% | |||||||
To
be well capitalized |
32,738
|
10.00 |
% |
28,863
|
10.00 |
% | |||||||
Tier
I capital (to risk weighted assets) |
|||||||||||||
Bank |
$ |
30,265 |
9.24 |
% |
$ |
30,254 |
10.48 |
% | |||||
For
capital adequacy purposes |
13,095
|
4.00 |
% |
11,545
|
4.00 |
% | |||||||
To
be well capitalized |
19,643
|
6.00 |
% |
17,318
|
6.00 |
% | |||||||
Tier
I capital (to average assets) |
|||||||||||||
Bank |
$ |
30,265 |
6.21 |
% |
$ |
30,254 |
6.94 |
% | |||||
For
capital adequacy purposes |
19,491
|
4.00 |
% |
17,433
|
4.00 |
% | |||||||
To
be well capitalized |
24,364
|
5.00 |
% |
21,792
|
5.00 |
% |
2004 |
2003 |
||||||
Commitments
to extend credit |
$ |
55,285 |
$ |
41,094 |
|||
Standby
letters of credit |
$ |
1,528 |
$ |
1,404 |
December
31, | |||||||||||||
2004 |
|
2003 |
|
||||||||||
|
|
Carrying |
Estimated |
Carrying |
Estimated |
||||||||
|
|
Amount |
|
Fair
Value |
|
Amount |
|
Fair
Value |
|||||
Financial
assets: |
|||||||||||||
Cash
and due from banks |
$ |
9,339 |
$ |
9,339 |
$ |
9,951 |
$ |
9,951 |
|||||
Available-for-sale
securities |
95,747
|
95,747
|
106,587
|
106,587
|
|||||||||
Net
loans |
355,774
|
362,672
|
314,037
|
322,813
|
|||||||||
Bank
owned life insurance |
7,449
|
7,449
|
7,142
|
7,142
|
|||||||||
Regulatory
stock |
2,769
|
2,769
|
2,540
|
2,540
|
|||||||||
Accrued
interest receivable |
1,736
|
1,736
|
1,703
|
1,703
|
|||||||||
Financial
liabilities: |
|||||||||||||
Deposits |
$ |
419,074 |
$ |
420,878 |
$ |
385,691 |
$ |
391,282 |
|||||
Borrowed
funds |
34,975
|
34,952
|
35,296
|
35,498
|
|||||||||
Accrued
interest payable |
1,870
|
1,870
|
1,888
|
1,888
|
December
31, | ||||||||||
2004 |
|
|
2003 |
|
|
2002 |
||||
Beginning
carrying amount |
$ |
7,685 |
$ |
7,685 |
$ |
7,685 |
||||
Add:
amount related to acquisition |
1,700
|
-
|
-
|
|||||||
Gross
carrying amount |
9,385
|
7,685
|
7,685
|
|||||||
Less:
accumulated amortization |
780
|
780
|
780
|
|||||||
Net
carrying amount |
$ |
8,605 |
$ |
6,905 |
$ |
6,905 |
December
31, | ||||||||||
2004 |
|
|
2003 |
|
|
2002 |
||||
Beginning
carrying amount |
$ |
2,763 |
$ |
2,763 |
$ |
2,763 |
||||
Add:
amount related to acquisition |
790
|
-
|
-
|
|||||||
Gross
carrying amount |
3,553
|
2,763
|
2,763
|
|||||||
Less:
accumulated amortization |
2,291
|
1,785
|
1,350
|
|||||||
Net
carrying amount |
$ |
1,262 |
$ |
978 |
$ |
1,413 |
Core
deposit |
||||
|
|
intangibles |
||
For
the year ended December 31, 2005 |
$ |
578 |
||
For
the year ended December 31, 2006 |
252
|
|||
For
the year ended December 31, 2007 |
144
|
|||
For
the year ended December 31, 2008 |
144
|
|||
For
the year ended December 31, 2009 |
144
|
December
31, | |||||||
(in
thousands) |
2004 |
|
2003 |
||||
Assets: |
|||||||
Cash |
$ |
7,549 |
$ |
7,680 |
|||
Investment
in subsidiary, |
|||||||
First
Citizens National Bank |
40,317
|
39,241
|
|||||
Other
assets |
497
|
306
|
|||||
Total
assets |
$ |
48,363 |
$ |
47,227 |
|||
Liabilities: |
|||||||
Other
liabilities |
$ |
74 |
$ |
260 |
|||
Borrowed
funds |
7,500
|
8,438
|
|||||
Total
liabilities |
7,574
|
8,698
|
|||||
Stockholders'
equity |
40,789
|
38,529
|
|||||
Total
liabilities and stockholders' equity |
$ |
48,363 |
$ |
47,227 |
Year
Ended December 31, | ||||||||||
(in
thousands) |
2004 |
|
|
2003 |
|
|
2002 |
|||
Dividends
from: |
||||||||||
Bank
subsidiary |
$ |
3,776 |
$ |
4,142 |
$ |
1,478 |
||||
Available-for-sale
securities |
-
|
3
|
19
|
|||||||
Interest-bearing
deposits with banks |
-
|
-
|
2
|
|||||||
Total
income |
3,776
|
4,145
|
1,499
|
|||||||
Investment
securities gains, net |
-
|
150
|
178
|
|||||||
Expenses |
377
|
186
|