Attached files
Exhibit 99.1
July 31, 2013
Earnings Report
June 30, 2013
We are pleased to announce year to date net income increased 2.9% to
$3.49 million as of June 30, 2013 from $3.40 million as of June 30, 2012.
Year to date diluted earnings per share increased 3.2% to $1.29 from
$1.25 during the same period last year. The increase in year to date
earnings is largely attributable to lower provision expense and higher
non-interest income.
Quarter to date net income increased from $1.78 million as of June 30,
2012 to $1.79 million as of June 30, 2013. Quarter to date diluted
earnings per share increased 1.5% to $0.66 from $0.65 during the same
period last year. The increase in quarterly earnings is primarily due to
lower provision for loan losses and higher non-interest income relative
to the same period last year.
Total assets were $709.2 million at June 30, 2013, which represents a
5.8% increase from the period ended June 30, 2012. The overall net
increase in total assets was driven by a 6.2% increase in securities and
a 7.5% increase in net loans which were funded by a 6.0% increase in
deposits.
We are excited about the recent opening of our Lexington branch located
at 360 East Vine Street. We have assembled a strong, experienced team to
lead our efforts in the Fayette County market, and believe this branch
expansion aligns with our desire to grow franchise value. We will
continue to consider appropriate opportunities that further our growth
and profitability. As always, we will continue to pursue strategic growth
through effective relationship management and new products and services.
As an example, we released our fraud alert service on July 16, 2013.
This service adds increased security for our customers by providing
immediate access to potential fraudulent account activity.
We continue to see an increase in lending opportunities which is
reflected in the 7.5% increase in net loans compared to the same period
last year. While this increase is encouraging, the outlook on loan
demand and the overall economic conditions remain uncertain. Recent
fluctuations in state and national unemployment ratios, combined with
uncertain Federal monetary policy and heightened regulatory pressure,
continue to make for a challenging banking environment. That said, we
will continue doing everything possible for 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
6/30/2013 6/30/2012 Change
Assets
Cash & Due From Banks $ 14,229,877 $ 15,204,048 -6.4%
Securities 196,435,636 184,962,107 6.2
Loans Held for Sale 418,600 92,000 355.0
Loans 452,244,676 421,398,577 7.3
Reserve for Loan Losses 5,497,774 5,788,737 -5.0
Net Loans 446,746,902 415,609,840 7.5
Federal Funds Sold 76,000 110,000 -30.9
Other Assets 51,248,111 54,564,593 -6.1
Total Assets $ 709,155,126 $ 670,542,588 5.8%
Liabilities & Stockholders' Equity
Deposits
Demand $ 147,212,209 $ 137,710,763 6.9%
Savings & Interest Checking 238,417,339 214,859,811 11.0
Certificates of Deposit 190,114,597 190,560,577 -0.2
Total Deposits 575,744,145 543,131,151 6.0
Repurchase Agreements 12,731,563 4,691,782 171.4
Other Borrowed Funds 45,196,278 44,115,466 2.4
Other Liabilities 5,303,127 6,239,616 -15.0
Total Liabilities 638,975,113 598,178,015 6.8
Stockholders' Equity 70,180,013 72,364,573 -3.0
Total Liabilities & Stockholders' Equity $ 709,155,126 $ 670,542,588 5.8%
CONSOLIDATED INCOME STATEMENT
Six Months Ending Three Months Ending
Percentage Percentage
6/30/2013 6/30/2012 Change 6/30/2013 6/30/2012 Change
Interest Income $ 13,792,916 $ 14,483,259 -4.8% $ 6,837,165 $ 7,320,886 -6.6%
Interest Expense 1,637,927 2,014,356 -18.7 816,244 961,679 -15.1
Net Interest Income 12,154,989 12,468,903 -2.5 6,020,921 6,359,207 -5.3
Loan Loss Provision 600,000 1,000,000 -40.0 150,000 550,000 -72.7
Net Interest Income After Provision 11,554,989 11,468,903 0.8 5,870,921 5,809,207 1.1
Other Income 5,429,884 4,977,591 9.1 2,827,632 2,481,443 14.0
Other Expenses 12,620,721 12,292,554 2.7 6,444,636 6,084,940 5.9
Income Before Taxes 4,364,152 4,153,940 5.1 2,253,917 2,205,710 2.2
Income Taxes 869,910 758,035 14.8 468,690 427,831 9.6
Net Income $ 3,494,242 $ 3,395,905 2.9% $ 1,785,227 $ 1,777,879 0.4%
Net Change in Unrealized Gain (Loss)
on Securities (5,976,917) 1,276,805 -568.1 (4,725,054) 1,768,232 -367.2
Comprehensive Income (Loss) $ (2,482,675) $ 4,672,710 -153.1% $(2,939,827) $ 3,546,111 -182.9%
Selected Ratios
Return on Average Assets 0.98% 1.00% 1.00% 1.05%
Return on Average Equity 9.43 9.61 9.63 10.01
Earnings Per Share $ 1.29 $ 1.25 $ 0.66 $ 0.65
Earnings Per Share - assuming dilution 1.29 1.25 0.66 0.65
Cash Dividends Per Share 0.48 0.46 0.24 0.23
Book Value Per Share 25.78 26.61
Market Price High Low Close
Second Quarter '13 $25.00 $23.03 $25.00
First Quarter '13 $24.50 $18.50 $23.03
