Virginia
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0-15204
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54-1375874
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(State or other jurisdiction of incorporation or organization)
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(Commission File No.)
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(I.R.S. Employer Identification No.)
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(a)
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Exhibits
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By: /s/ JAMES G. RAKES
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James G. Rakes
Chairman
President and CEO
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($ in thousands, except for per share data)
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September 30, 2012
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September 30, 2011
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December 31, 2011
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|||||||||
Assets
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||||||||||||
Cash and due from banks
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$ | 12,445 | $ | 12,180 | $ | 11,897 | ||||||
Interest-bearing deposits
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67,394 | 70,252 | 98,355 | |||||||||
Federal funds sold
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--- | --- | --- | |||||||||
Securities available for sale
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198,079 | 180,126 | 174,918 | |||||||||
Securities held to maturity
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161,728 | 138,148 | 143,995 | |||||||||
Total securities
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359,807 | 318,274 | 318,913 | |||||||||
Mortgage loans held for sale
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3,015 | 1,108 | 2,623 | |||||||||
Loans:
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||||||||||||
Loans, net of unearned income and deferred fees
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591,461 | 596,416 | 588,470 | |||||||||
Less: allowance for loan losses
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(8,254 | ) | (8,719 | ) | (8,068 | ) | ||||||
Loans, net
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583,207 | 587,697 | 580,402 | |||||||||
Bank premises and equipment, net
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10,491 | 10,328 | 10,393 | |||||||||
Accrued interest receivable
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6,291 | 6,359 | 6,304 | |||||||||
Other real estate owned
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1,894 | 1,759 | 1,489 | |||||||||
Intangible assets
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9,648 | 10,730 | 10,460 | |||||||||
Bank-owned life insurance
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20,346 | 17,580 | 19,812 | |||||||||
Other assets
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6,434 | 5,855 | 6,454 | |||||||||
Total assets
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$ | 1,080,972 | $ | 1,042,122 | $ | 1,067,102 | ||||||
Liabilities and Stockholders' Equity
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||||||||||||
Noninterest-bearing deposits
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$ | 147,346 | $ | 140,609 | $ | 142,163 | ||||||
Interest-bearing demand deposits
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418,482 | 381,571 | 404,801 | |||||||||
Savings deposits
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66,576 | 59,395 | 61,298 | |||||||||
Time deposits
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291,979 | 312,660 | 311,071 | |||||||||
Total deposits
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924,383 | 894,235 | 919,333 | |||||||||
Other borrowed funds
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--- | --- | --- | |||||||||
Accrued interest payable
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178 | 207 | 206 | |||||||||
Other liabilities
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6,013 | 5,860 | 6,264 | |||||||||
Total liabilities
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930,574 | 900,302 | 925,803 | |||||||||
Stockholders' Equity
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||||||||||||
Preferred stock of no par value. Authorized 5,000,000 shares; none issued and outstanding
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--- | --- | --- | |||||||||
Common stock of $1.25 par value. Authorized 10,000,000 shares; issued and outstanding 6,943,974 shares at September 30, 2012, 6,937,974 at September 30, 2011 and 6,939,974 at December 31,2011
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8,680 | 8,672 | 8,675 | |||||||||
Retained earnings
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143,383 | 132,638 | 133,945 | |||||||||
Accumulated other comprehensive gain (loss), net
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(1,665 | ) | 510 | (1,321 | ) | |||||||
Total stockholders' equity
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150,398 | 141,820 | 141,299 | |||||||||
Total liabilities and stockholders' equity
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$ | 1,080,972 | $ | 1,042,122 | $ | 1,067,102 |
Three Months Ended
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Nine Months Ended
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|||||||||||||||
September 30, 2012
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September 30, 2011
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September 30, 2012
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September 30, 2011
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|||||||||||||
($ in thousands, except for per share data)
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||||||||||||||||
Interest Income
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||||||||||||||||
Interest and fees on loans
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$ | 8,923 | $ | 9,184 | $ | 26,554 | $ | 27,386 | ||||||||
Interest on federal funds
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--- | --- | --- | --- | ||||||||||||
Interest on interest-bearing deposits
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60 | 37 | 187 | 104 | ||||||||||||
Interest on securities – taxable
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1,620 | 1,740 | 4,991 | 5,115 | ||||||||||||
Interest on securities – nontaxable
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1,634 | 1,616 | 4,801 | 4,912 | ||||||||||||
Total interest income
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12,237 | 12,577 | 36,533 | 37,517 | ||||||||||||
Interest Expense
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||||||||||||||||
Interest on time deposits of $100,000 or more
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355 | 485 | 1,171 | 1,551 | ||||||||||||
Interest on other deposits
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1,581 | 1,797 | 4,900 | 5,456 | ||||||||||||
Interest on borrowed funds
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--- | -- | --- | --- | ||||||||||||
Total interest expense
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1,936 | 2,282 | 6,071 | 7,007 | ||||||||||||
Net interest income
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10,301 | 10,295 | 30,462 | 30,510 | ||||||||||||
Provision for loan losses
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778 | 643 | 2,554 | 2,196 | ||||||||||||
Net interest income after provision for loan losses
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9,523 | 9,652 | 27,908 | 28,314 | ||||||||||||
Noninterest Income
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||||||||||||||||
Service charges on deposit accounts
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674 | 692 | 1,956 | 1,952 | ||||||||||||
Other service charges and fees
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40 | 57 | 130 | 174 | ||||||||||||
Credit card fees
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807 | 805 | 2,441 | 2,365 | ||||||||||||
Trust income
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271 | 264 | 1,037 | 817 | ||||||||||||
Bank-owned life insurance
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205 | 189 | 605 | 559 | ||||||||||||
Other income
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130 | 125 | 341 | 293 | ||||||||||||
Realized securities gains (losses), net
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(19 | ) | (3 | ) | 33 | (7 | ) | |||||||||
Total noninterest income
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2,108 | 2,129 | 6,543 | 6,153 | ||||||||||||
Noninterest Expense
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||||||||||||||||
Salaries and employee benefits
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3,104 | 2,834 | 9,014 | 8,561 | ||||||||||||
Occupancy and furniture and fixtures
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387 | 349 | 1,181 | 1,207 | ||||||||||||
Data processing and ATM
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390 | 416 | 1,206 | 1,289 | ||||||||||||
FDIC assessment
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133 | 353 | 343 | 1,049 | ||||||||||||
Credit card processing
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607 | 639 | 1,817 | 1,871 | ||||||||||||
Intangibles and goodwill amortization
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270 | 271 | 812 | 813 | ||||||||||||
Net costs of other real estate owned
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58 | 52 | 209 | 281 | ||||||||||||
Franchise taxes
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258 | 162 | 646 | 619 | ||||||||||||
Other operating expenses
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881 | 811 | 2,302 | 2,306 | ||||||||||||
Total noninterest expense
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6,088 | 5,887 | 17,530 | 17,996 | ||||||||||||
Income before income tax expense
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5,543 | 5,894 | 16,921 | 16,471 | ||||||||||||
Income tax expense
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1,250 | 1,385 | 3,859 | 3,722 | ||||||||||||
Net income
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$ | 4,293 | $ | 4,509 | $ | 13,062 | $ | 12,749 | ||||||||
Basic net income per share
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$ | 0.62 | $ | 0.65 | $ | 1.88 | $ | 1.84 | ||||||||
Fully diluted net income per share
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$ | 0.62 | $ | 0.65 | $ | 1.88 | $ | 1.83 | ||||||||
Weighted average outstanding number of common shares
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||||||||||||||||
Basic
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6,941,757 | 6,937,974 | 6,940,573 | 6,936,100 | ||||||||||||
Diluted
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6,962,852 | 6,945,174 | 6,958,316 | 6,951,155 | ||||||||||||
Dividends declared per share
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--- | --- | $ | 0.53 | $ | 0.48 | ||||||||||
Dividend payout ratio
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--- | --- | 28.16 | 26.11 | ||||||||||||
Book value per share
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$ | --- | $ | --- | $ | 21.66 | $ | 20.44 |
Three Months Ended
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||||||||
($ in thousands, except for per share data)
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September 30, 2012
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September 30, 2011
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||||||
Net Income
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$ | 4,293 | $ | 4,509 | ||||
Other Comprehensive Income, net of tax
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||||||||
Unrealized holding gains (losses) on available for sale securities net of deferred taxes of ($351) and $536
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(653 | ) | 996 | |||||
Reclassification adjustment, net of income taxes of $6 and $4
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12 | 7 | ||||||
Other comprehensive income (loss), net of tax of ($345) and $540
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$ | (641 | ) | $ | 1,003 | |||
Total Comprehensive Income
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$ | 3,652 | $ | 5,512 | ||||
Nine Months Ended
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||||||||
($ in thousands, except for per share data)
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September 30, 2012
|
September 30, 2011
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||||||
Net Income
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$ | 13,062 | $ | 12,749 | ||||
Other Comprehensive Income, net of tax
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||||||||
Unrealized holding gains (losses) on available for sale securities net of deferred taxes of ($178) and $1,689
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(331 | ) | 3,137 | |||||
Reclassification adjustment, net of income taxes of $(7) and $8
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(13 | ) | 14 | |||||
Other comprehensive income (loss), net of tax of ($185) and $1,697
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$ | (344 | ) | $ | 3,151 | |||
Total Comprehensive Income
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$ | 12,718 | $ | 15,900 |
Three Months Ended
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Nine Months Ended
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|||||||||||||||
Average Balances
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September 30, 2012
|
September 30, 2011
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September 30, 2012
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September 30, 2011
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||||||||||||
Cash and due from banks
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$ | 11,942 | $ | 11,709 | $ | 11,860 | $ | 11,807 | ||||||||
Interest-bearing deposits
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89,899 | 57,402 | 96,410 | 56,998 | ||||||||||||
Securities available for sale
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188,648 | 191,763 | 188,885 | 189,298 | ||||||||||||
Securities held to maturity
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153,877 | 134,519 | 142,860 | 133,160 | ||||||||||||
Mortgage loans held for sale
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2,028 | 647 | 1,503 | 618 | ||||||||||||
Gross loans
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593,634 | 593,544 | 588,298 | 589,074 | ||||||||||||
Loans, net
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584,341 | 583,960 | 578,993 | 579,827 | ||||||||||||
Intangible assets
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9,803 | 10,886 | 10,072 | 11,155 | ||||||||||||
Total assets
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1,084,118 | 1,032,823 | 1,073,887 | 1,025,778 | ||||||||||||
Total deposits
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928,783 | 887,218 | 923,739 | 883,309 | ||||||||||||
Other borrowings
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--- | --- | --- | --- | ||||||||||||
Stockholders' equity
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149,049 | 138,767 | 143,685 | 135,069 | ||||||||||||
Interest-earning assets
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1,022,861 | 973,705 | 1,012,756 | 966,796 | ||||||||||||
Interest-bearing liabilities
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785,441 | 749,626 | 783,049 | 749,332 | ||||||||||||
Financial ratios
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||||||||||||||||
Return on average assets
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1.58 | % | 1.75 | % | 1.62 | % | 1.66 | % | ||||||||
Return on average equity
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11.46 | % | 13.03 | % | 12.14 | % | 12.62 | % | ||||||||
Net interest margin
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4.39 | % | 4.64 | % | 4.40 | % | 4.62 | % | ||||||||
Net interest income – fully taxable equivalent
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$ | 11,298 | $ | 11,259 | $ | 33,357 | $ | 33,405 | ||||||||
Efficiency ratio
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45.41 | % | 43.96 | % | 43.93 | % | 45.49 | % | ||||||||
Average equity to average assets
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13.75 | % | 13.44 | % | 13.38 | % | 13.17 | % | ||||||||
Allowance for loan losses
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||||||||||||||||
Beginning balance
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$ | 8,168 | $ | 8,494 | $ | 8,068 | $ | 7,664 | ||||||||
Provision for losses
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778 | 643 | 2,554 | 2,196 | ||||||||||||
Charge-offs
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(716 | ) | (446 | ) | (2,444 | ) | (1,205 | ) | ||||||||
Recoveries
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24 | 28 | 76 | 64 | ||||||||||||
Ending balance
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$ | 8,254 | $ | 8,719 | $ | 8,254 | $ | 8,719 |
Nonperforming assets
|
September 30, 2012
|
September 30, 2011
|
||||||
Nonaccrual loans
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$ | 3,876 | $ | 1,263 | ||||
Nonaccrual restructured loans
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2,254 | 3,081 | ||||||
Total nonperforming loans
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6,130 | 4,344 | ||||||
Other real estate owned
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1,894 | 1,759 | ||||||
Total nonperforming assets
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$ | 8,024 | $ | 6,103 | ||||
Accruing restructured loans
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$ | 2,021 | $ | 5,524 | ||||
Loans 90 days or more past due
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$ | 114 | $ | 339 | ||||
Asset quality ratios
|
||||||||
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned
|
1.35 | % | 1.02 | % | ||||
Allowance for loan losses to total loans
|
1.40 | % | 1.46 | % | ||||
Allowance for loan losses to nonperforming loans
|
134.65 | % | 200.71 | % | ||||
Loans past due 90 days or more to loans net of unearned income and deferred fees
|
0.02 | % | 0.06 | % |
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