Virginia
|
0-15204
|
54-1375874
|
(State or other jurisdiction of incorporation or organization)
|
(Commission File No.)
|
(I.R.S. Employer Identification No.)
|
(a)
|
Exhibits
|
By: /s/ JAMES G. RAKES
|
James G. Rakes
Chairman
President and CEO
|
($ in thousands, except for per share data)
|
December 31, 2011
|
December 31, 2010
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 11,897 | $ | 9,858 | ||||
Interest-bearing deposits
|
98,355 | 69,400 | ||||||
Federal funds sold
|
--- | --- | ||||||
Securities available for sale
|
174,918 | 184,907 | ||||||
Securities held to maturity
|
143,995 | 131,000 | ||||||
Total securities
|
318,913 | 315,907 | ||||||
Mortgage loans held for sale
|
2,623 | 2,460 | ||||||
Loans:
|
||||||||
Real estate construction loans
|
48,531 | 46,169 | ||||||
Consumer real estate loans
|
150,224 | 153,405 | ||||||
Commercial real estate loans
|
303,192 | 293,171 | ||||||
Commercial non-real estate loans
|
39,274 | 37,547 | ||||||
Public sector IDA
|
15,571 | 12,553 | ||||||
Consumer non-real estate loans
|
33,072 | 34,543 | ||||||
Total loans
|
589,864 | 577,388 | ||||||
Less: unearned income and deferred fees
|
(952 | ) | (945 | ) | ||||
Loans, net of unearned income and deferred fees
|
588,912 | 576,443 | ||||||
Less: allowance for loan losses
|
(8,510 | ) | (7,664 | ) | ||||
Loans, net
|
580,402 | 568,779 | ||||||
Bank premises and equipment, net
|
10,393 | 10,470 | ||||||
Accrued interest receivable
|
6,304 | 6,016 | ||||||
Other real estate owned
|
1,489 | 1,723 | ||||||
Intangible assets
|
10,460 | 11,543 | ||||||
Other assets
|
26,266 | 26,082 | ||||||
Total assets
|
$ | 1,067,102 | $ | 1,022,238 | ||||
Liabilities and Stockholders' Equity
|
||||||||
Noninterest-bearing deposits
|
$ | 142,163 | $ | 131,540 | ||||
Interest-bearing demand deposits
|
404,801 | 365,040 | ||||||
Savings deposits
|
61,298 | 55,800 | ||||||
Time deposits
|
311,071 | 332,203 | ||||||
Total deposits
|
919,333 | 884,583 | ||||||
Other borrowed funds
|
--- | --- | ||||||
Accrued interest payable
|
206 | 257 | ||||||
Other liabilities
|
6,264 | 8,211 | ||||||
Total liabilities
|
925,803 | 893,051 | ||||||
Stockholders' Equity
|
||||||||
Preferred stock of no par value.
|
||||||||
Authorized 5,000,000 shares; none issued and outstanding
|
--- | --- | ||||||
Common stock of $1.25 par value.
|
||||||||
Authorized 10,000,000 shares; issued and outstanding 6,939,974 shares at December 31, 2011 and 6,933,474 at December 31, 2010
|
8,675 | 8,667 | ||||||
Retained earnings
|
133,945 | 123,161 | ||||||
Accumulated other comprehensive gain, net
|
(1,321 | ) | (2,641 | ) | ||||
Total stockholders' equity
|
141,299 | 129,187 | ||||||
Total liabilities and stockholders' equity
|
$ | 1,067,102 | $ | 1,022,238 |
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31, 2011
|
December 31, 2010
|
December 31, 2011
|
December 31, 2010
|
|||||||||||||
($ in thousands, except for per share data)
|
||||||||||||||||
Interest Income
|
||||||||||||||||
Interest and fees on loans
|
$ | 9,128 | $ | 9,199 | $ | 36,514 | $ | 36,919 | ||||||||
Interest on federal funds
|
--- | --- | --- | --- | ||||||||||||
Interest on interest-bearing deposits
|
51 | 43 | 155 | 128 | ||||||||||||
Interest on securities - taxable
|
1,630 | 1,354 | 6,745 | 5,588 | ||||||||||||
Interest on securities - nontaxable
|
1,620 | 1,669 | 6,532 | 6,504 | ||||||||||||
Total interest income
|
12,429 | 12,265 | 49,946 | 49,139 | ||||||||||||
Interest Expense
|
||||||||||||||||
Interest on time deposits of $100,000 or more
|
468 | 744 | 2,019 | 3,439 | ||||||||||||
Interest on other deposits
|
1,709 | 1,859 | 7,165 | 7,719 | ||||||||||||
Interest on borrowed funds
|
--- | --- | --- | --- | ||||||||||||
Total interest expense
|
2,177 | 2,603 | 9,184 | 11,158 | ||||||||||||
Net interest income
|
10,252 | 9,662 | 40,762 | 37,981 | ||||||||||||
Provision for loan losses
|
753 | 1,200 | 2,949 | 3,409 | ||||||||||||
Net interest income after provision for loan losses
|
9,499 | 8,462 | 37,813 | 34,572 | ||||||||||||
Noninterest Income
|
||||||||||||||||
Service charges on deposit accounts
|
665 | 666 | 2,617 | 2,858 | ||||||||||||
Other service charges and fees
|
113 | 103 | 287 | 317 | ||||||||||||
Credit card fees
|
832 | 783 | 3,197 | 2,954 | ||||||||||||
Trust income
|
270 | 272 | 1,087 | 1,118 | ||||||||||||
Bank-owned life insurance
|
203 | 202 | 762 | 760 | ||||||||||||
Other income
|
156 | 139 | 449 | 354 | ||||||||||||
Realized securities gains (losses), net
|
18 | (13 | ) | 11 | (14 | ) | ||||||||||
Total noninterest income
|
2,257 | 2,152 | 8,410 | 8,347 | ||||||||||||
Noninterest Expense
|
||||||||||||||||
Salaries and employee benefits
|
2,796 | 2,758 | 11,357 | 10,963 | ||||||||||||
Occupancy and furniture and fixtures
|
392 | 456 | 1,599 | 1,875 | ||||||||||||
Data processing and ATM
|
412 | 379 | 1,701 | 1,499 | ||||||||||||
FDIC assessment
|
(372 | ) | 275 | 677 | 1,080 | |||||||||||
Credit card processing
|
614 | 620 | 2,485 | 2,300 | ||||||||||||
Intangibles and goodwill amortization
|
270 | 271 | 1,083 | 1,083 | ||||||||||||
Net costs of other real estate owned
|
237 | 34 | 518 | 214 | ||||||||||||
Franchise taxes
|
161 | 241 | 780 | 963 | ||||||||||||
Other operating expenses
|
832 | 786 | 3,138 | 3,150 | ||||||||||||
Total noninterest expense
|
5,342 | 5,820 | 23,338 | 23,127 | ||||||||||||
Income before income tax expense
|
6,414 | 4,794 | 22,885 | 19,792 | ||||||||||||
Income tax expense
|
1,525 | 987 | 5,247 | 4,223 | ||||||||||||
Net income
|
$ | 4,889 | $ | 3,807 | $ | 17,638 | $ | 15,569 | ||||||||
Basic net income per share
|
$ | 0.70 | $ | 0.55 | $ | 2.54 | $ | 2.25 | ||||||||
Fully diluted net income per share
|
$ | 0.70 | $ | 0.55 | $ | 2.54 | $ | 2.24 | ||||||||
Weighted average outstanding number of common shares
|
||||||||||||||||
Basic
|
6,939,148 | 6,933,474 | 6,936,869 | 6,933,474 | ||||||||||||
Diluted
|
6,949,660 | 6,957,364 | 6,950,788 | 6,949,936 | ||||||||||||
Dividends declared per share
|
$ | 0.52 | $ | 0.47 | $ | 1.00 | $ | 0.91 | ||||||||
Dividend payout ratio
|
--- | --- | 39.34 | 40.52 | ||||||||||||
Book value per share
|
$ | --- | $ | --- | $ | 20.36 | $ | 18.63 |
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
Average Balances
|
December 31, 2011
|
December 31, 2010
|
December 31, 2011
|
December 31, 2010
|
||||||||||||
Cash and due from banks
|
$ | 12,548 | $ | 12,186 | $ | 11,654 | $ | 11,862 | ||||||||
Interest-bearing deposits
|
87,266 | 73,785 | 64,977 | 55,477 | ||||||||||||
Securities available for sale
|
177,387 | 164,993 | 186,296 | 161,504 | ||||||||||||
Securities held to maturity
|
139,318 | 129,123 | 134,612 | 128,028 | ||||||||||||
Mortgage loans held for sale
|
1,411 | 1,811 | 818 | 1,339 | ||||||||||||
Gross loans
|
590,425 | 580,533 | 589,414 | 585,604 | ||||||||||||
Loans, net
|
580,766 | 571,961 | 580,037 | 577,210 | ||||||||||||
Intangible assets
|
10,614 | 11,698 | 11,019 | 12,102 | ||||||||||||
Total assets
|
1,050,417 | 1,007,740 | 1,031,899 | 989,952 | ||||||||||||
Total deposits
|
902,055 | 866,988 | 888,044 | 852,953 | ||||||||||||
Other borrowings
|
--- | --- | --- | --- | ||||||||||||
Stockholders' equity
|
142,292 | 133,122 | 136,794 | 129,003 | ||||||||||||
Interest-earning assets
|
990,999 | 944,837 | 973,171 | 926,901 | ||||||||||||
Interest-bearing liabilities
|
760,567 | 740,745 | 752,164 | 730,135 | ||||||||||||
Financial ratios
|
||||||||||||||||
Return on average assets
|
1.85 | % | 1.50 | % | 1.71 | % | 1.57 | % | ||||||||
Return on average equity
|
13.63 | % | 11.35 | % | 12.89 | % | 12.07 | % | ||||||||
Net interest margin
|
4.50 | % | 4.47 | % | 4.59 | % | 4.52 | % | ||||||||
Net interest income - fully taxable equivalent
|
$ | 11,230 | $ | 10,654 | $ | 44,635 | $ | 41,914 | ||||||||
Efficiency ratio
|
39.66 | % | 45.40 | % | 44.00 | % | 46.01 | % | ||||||||
Average equity to average assets
|
13.55 | % | 13.21 | % | 13.26 | % | 13.03 | % | ||||||||
Allowance for loan losses
|
||||||||||||||||
Beginning balance
|
$ | 8,719 | $ | 7,794 | $ | 7,664 | $ | 6,926 | ||||||||
Provision for losses
|
753 | 1,200 | 2,949 | 3,409 | ||||||||||||
Charge-offs
|
(983 | ) | (1,351 | ) | (2,186 | ) | (2,810 | ) | ||||||||
Recoveries
|
21 | 21 | 83 | 139 | ||||||||||||
Ending balance
|
$ | 8,510 | $ | 7,664 | $ | 8,510 | $ | 7,664 |
Nonperforming assets
|
December 31, 2011
|
December 31, 2010
|
||||||
Nonaccrual loans
|
$ | 1,229 | $ | 1,938 | ||||
Nonaccrual restructured loans
|
2,742 | 6,133 | ||||||
Total nonperforming loans
|
3,971 | 8,071 | ||||||
Other real estate owned
|
1,489 | 1,723 | ||||||
Total nonperforming assets
|
$ | 5,460 | $ | 9,794 | ||||
Accruing restructured loans
|
$ | 4,820 | $ | 350 | ||||
Loans 90 days or more past due
|
$ | 766 | $ | 1,336 | ||||
Asset quality ratios
|
||||||||
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned
|
0.92 | % | 1.69 | % | ||||
Allowance for loan losses to total loans
|
1.45 | % | 1.33 | % | ||||
Allowance for loan losses to nonperforming loans
|
214.30 | % | 94.96 | % | ||||
Loans past due 90 days or more to loans net of unearned income and deferred fees
|
0.13 | % | 0.23 | % |
0`` M9&5S8P`````````2`````5A9 M6B```````$P)5@!0````5Q_G;65A
D!\@'Z`@,"#`(4`AT")@(O`C@"00)+
M`E0"70)G`G$">@*$`HX"F`*B`JP"M@+!`LL"U0+@`NL"]0,``PL#%@,A`RT#
M.`-#`T\#6@-F`W(#?@.*`Y8#H@.N`[H#QP/3`^`#[`/Y!`8$$P0@!"T$.P1(
M!%4$8P1Q!'X$C`2:!*@$M@3$!-,$X03P!/X%#044%]@8&!A8&)P8W!D@&609J!GL&C`:=!J\&P`;1!N,&]0<'
M!QD'*P<]!T\'80=T!X8'F0>L![\'T@?E!_@("P@?"#((1@A:"&X(@@B6"*H(
MO@C2".<(^PD0"24).@E/"60)>0F/":0)N@G/">4)^PH1"B<*/0I4"FH*@0J8
M"JX*Q0K<"O,+"PLB"SD+40MI"X`+F`NP"\@+X0OY#!(,*@Q##%P,=0R.#*<,
MP`S9#/,-#0TF#4`-6@UT#8X-J0W##=X-^`X3#BX.20YD#G\.FPZV#M(.[@\)
M#R4/00]>#WH/E@^S#\\/[!`)$"800Q!A$'X0FQ"Y$-<0]1$3$3$13Q%M$8P1
MJA')$>@2!Q(F$D429!*$$J,2PQ+C$P,3(Q-#$V,3@Q.D$\43Y10&%"<4211J
M%(L4K13.%/`5$A4T%585>!6;%;T5X!8#%B86219L%H\6LA;6%OH7'1=!%V47
MB1>N%](7]Q@;&$`891B*&*\8U1CZ&2`911EK&9$9MQG=&@0:*AI1&G<:GAK%
M&NP;%!L[&V,;BANR&]H<`APJ'%(<>QRC',P<]1T>'4<=
M:AZ4'KX>Z1\3'SX?:1^4'[\?ZB`5($$@;""8(,0@\"$<(4@A=2&A( &YXS'DJ>8EYYWI&>J5[!'MC>\)\(7R!?.%]07VA?@%^
M8G["?R-_A'_E@$>`J($*@6N!S8(P@I*"](-7@[J$'82`A..%1X6KA@Z&U
M;[R[<:8_=/EW1N-M0:4OHX*LMQ`M:F.YA\6WN8028I'=?ATGHR4?PCWU@OC9
M/T1O?$U$O:OP-_FA=<8O(5]/!_D&X>C_`)25?5.)HMS8\,@E;#[@R^/QF4A/
MZ8O++&X\B/9[Z5U@,3#]2*X'YJ],_GQZ"+>XNVW/-R\S;=.!LG,W)D[*">Z.
M\VX7+&-O+4BM)&?6@(P1T+/R&^,&\:5/YOV]MI[:GS6__E'\UNJ_A_TEAZ:,
M+59:JW;V%LKNS?(I&(M'0U[U%`E3*/VX:>@J7D.E"5*B0CPZ<3Q/S\STE/C!C<;OOX"U='O3&X_=4&V
M\+VO1X5<_14^5..CQ(SRXUZ-JR.8TTU`DA2!TTM$@"H0``+3DI=54TJ1UJ$!
MK4ZA6@/2J^"?4O7.?^,'7&?W-M'"[MRN9H-Q035&[*"EW&M#01;KSU,N*PL&
M6AJJ?"XIO&9)(*98TEG=Y9-3M?W6Z=Q.X#$#Y?9UNUC1H$+*"37CGSZ@?#'#
M46Q>]_F#UEMH2T&Q]L[SVO6[>V_YI9:'#R9:ER\]6E`DKN88V7QQ<&YCAC#$
ME;^_7!+1V[GXB#UZW`26X1?A!'193V9VEU7W-\V]Q=:[2J<[3'L3;$.]-QXR
M.FRNVK
MG^T;4!XGG0GT^SIVU_LETD^'Y5`_R'H..N:-)/DY\GWZGW%V32[H;.8(]CT^
M2V9UGD-I151QM2,$FVZW([\QN?J`O[Q9I8(P3PZ@:3[N_P#8P>(%I3&37_!U
M1!^O/X;-J\\"GY9Z:_C51QI\B>^7V[N/L^IW,FZ<6>\(-V[*ZHHML5%7Y,Q]
MBF%J\+O[(96BI2OGNT$,]H].I;^_3?V,50NFG;0G_-UZ$?K2T9JUS4"G^'IJ
MP4/4\GR:STGQ@R7;U)*D4P[=I>H<)L7(](55>RMI;*U^\MP8O#4&0BM)J7&T
MU2\DA;[