EX-99 2 form8k062ex99.txt EXHIBIT 99 Exhibit 99.1 July 27, 2006 Quarterly Report Second Quarter 2006 We are very pleased to report that our net income for the second quarter ended June 30, 2006 was $1.7 million, which represented a 13.2% increase over the $1.5 million earned for the second quarter ended June 30, 2005. After the effects of dilution, earnings per share for the quarter equaled 64 cents, which represented a 14% increase over the 56 cents per share for the same quarter in 2005. Net income for the first six months of the fiscal year was $3.0 million, which represents a 5.6% increase over the $2.8 million earned through the second quarter of 2005. Pre-tax earnings were up 10.9% when compared to the six months ended June 30, 2005. As a result of these earnings increases, our earnings per share for the year increased from $1.05 to $1.12, a 6.7% increase. Total assets reached $553 million through the first six months of the year compared to $526 million through the first six months of 2005, which represents a 5.2% increase in total assets. Loans were up 4.7% over the previous year, which reflects a steady increase in loan demand. Deposits were up slightly over the previous year and ended on June 30, 2006 at $388.6 million. We continue to be excited about our merger with Peoples Bancorp of Sandy Hook, Inc., which closed on July 7, 2006. The respective management and staff of each institution have worked extremely well together to ensure that we complete this transaction in a timely manner. We are extremely excited about the opportunities that this merger will offer you as shareholders. We are pleased to announce that Lonnie Conley, a local businessman, has agreed to join our Bourbon Regional Advisory Board, and we look forward to his contributions. Louis Prichard President, CEO UNAUDITED
CONSOLIDATED BALANCE SHEET Percentage 6/30/2006 6/30/2005 Change Assets Cash & Due From Banks $ 14,803,215 $ 10,976,945 34.9% Securities 125,496,578 120,385,001 4.2 Loans Held For Sale 103,981 - n/m Loans 384,192,767 366,840,594 4.7 Reserve for Loan Losses 4,407,721 4,431,400 -0.5 Net Loans 379,785,046 362,409,194 4.8 Federal Funds Sold 127,000 216,000 -41.2 Other Assets 33,027,847 31,812,011 3.8 Total Assets $ 553,343,667 $ 525,799,151 5.2% Liabilities & Stockholders' Equity Deposits Demand $ 77,260,984 $ 69,855,638 10.6% Savings & Interest Checking 134,209,671 133,459,608 0.6 Certificates of Deposit 177,158,693 181,676,937 -2.5 Total Deposits 388,629,348 384,992,183 0.9 Repurchase Agreements 15,046,453 15,345,601 -1.9 Other Borrowed Funds 99,376,873 75,468,197 31.7 Other Liabilities 3,488,089 3,686,441 -5.4 Total Liabilities 506,540,763 479,492,422 5.6 Stockholders' Equity 46,802,904 46,306,729 1.1 Total Liabilities & Stockholders' Equity $ 553,343,667 $ 525,799,151 5.2%
CONSOLIDATED INCOME STATEMENT Six Months Ending Three Months Ending Percentage Percentage 6/30/2006 6/30/2005 Change 6/30/2006 6/30/2005 Change Interest Income $16,296,044 $13,753,086 18.5% $8,245,104 $7,032,935 17.2% Interest Expense 7,309,260 5,146,761 42.0 3,734,136 2,648,161 41.0 Net Interest Income 8,986,784 8,606,325 4.4 4,510,968 4,384,774 2.9 Loan Loss Provision 240,000 416,500 -42.4 108,200 166,600 -35.1 Net Interest Income After Provision 8,746,784 8,189,825 6.8 4,402,768 4,218,174 4.4 Other Income 3,301,159 3,388,042 -2.6 1,704,900 1,834,185 -7.0 Other Expenses 7,827,050 7,773,424 0.7 3,729,188 3,954,071 -5.7 Income Before Taxes 4,220,893 3,804,443 10.9 2,378,480 2,098,288 13.4 Income Taxes 1,211,974 955,242 26.9 662,490 582,340 13.8 Net Income 3,008,919 2,849,201 5.6 1,715,990 1,515,948 13.2 Net Change in Unrealized Gain (loss) on Securities (1,482,112) (199,276) 643.7 (778,738) 889,874 -187.5 Comprehensive Income $ 1,526,807 $ 2,649,925 -42.4% $ 937,252 $2,405,822 -61.0% Selected Ratios Return on Average Assets 1.07% 1.09% 1.23% 1.23% Return on Average Equity 12.8 12.6 14.6 14.2 Earnings Per Share $ 1.13 $ 1.06 $ 0.65 $ 0.56 Earnings Per Share - assuming dilution 1.12 1.05 0.64 0.56 Cash Dividends Per Share 0.50 0.46 0.25 0.23 Book Value Per Share 17.51 17.25
Market Price High Low Close Second Quarter '06 $29.75 $27.00 $27.00 First Quarter '06 $30.00 $29.00 $29.00