Virginia
|
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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By: /s/ JAMES G. RAKES
|
James G. Rakes
Chairman
President and CEO
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($ in thousands, except for per share data)
|
December 31, 2012
|
December 31, 2011
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$ | 14,783 | $ | 11,897 | ||||
Interest-bearing deposits
|
96,597 | 98,355 | ||||||
Federal funds sold
|
--- | --- | ||||||
Securities available for sale
|
191,504 | 174,918 | ||||||
Securities held to maturity
|
160,539 | 143,995 | ||||||
Total securities
|
352,043 | 318,913 | ||||||
Mortgage loans held for sale
|
2,796 | 2,623 | ||||||
Loans:
|
||||||||
Loans, net of unearned income and deferred fees
|
592,162 | 588,470 | ||||||
Less allowance for loan losses
|
(8,349 | ) | (8,068 | ) | ||||
Loans, net
|
583,813 | 580,402 | ||||||
Bank premises and equipment, net
|
10,401 | 10,393 | ||||||
Accrued interest receivable
|
6,247 | 6,304 | ||||||
Other real estate owned
|
1,435 | 1,489 | ||||||
Intangible assets
|
9,377 | 10,460 | ||||||
Bank-owned life insurance
|
20,523 | 19,812 | ||||||
Other assets
|
6,346 | 6,454 | ||||||
Total assets
|
$ | 1,104,361 | $ | 1,067,102 | ||||
Liabilities and Stockholders' Equity
|
||||||||
Noninterest-bearing deposits
|
$ | 144,252 | $ | 142,163 | ||||
Interest-bearing demand deposits
|
455,713 | 404,801 | ||||||
Savings deposits
|
69,063 | 61,298 | ||||||
Time deposits
|
277,738 | 311,071 | ||||||
Total deposits
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946,766 | 919,333 | ||||||
Accrued interest payable
|
139 | 206 | ||||||
Other liabilities
|
7,347 | 6,264 | ||||||
Total liabilities
|
954,252 | 925,803 | ||||||
Stockholders' Equity
|
||||||||
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 6,947,974 shares at December 31, 2012 and 6,939,974 at December 31, 2011
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8,685 | 8,675 | ||||||
Retained earnings
|
144,162 | 133,945 | ||||||
Accumulated other comprehensive loss
|
(2,738 | ) | (1,321 | ) | ||||
Total stockholders' equity
|
150,109 | 141,299 | ||||||
Total liabilities and stockholders' equity
|
$ | 1,104,361 | $ | 1,067,102 |
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
December 31, 2012
|
December 31, 2011
|
December 31, 2012
|
December 31, 2011
|
|||||||||||||
($ in thousands, except for per share data)
|
||||||||||||||||
Interest Income
|
||||||||||||||||
Interest and fees on loans
|
$ | 8,800 | $ | 9,128 | $ | 35,354 | $ | 36,514 | ||||||||
Interest on federal funds
|
--- | --- | --- | --- | ||||||||||||
Interest on interest-bearing deposits
|
53 | 51 | 240 | 155 | ||||||||||||
Interest on securities – taxable
|
1,622 | 1,630 | 6,613 | 6,745 | ||||||||||||
Interest on securities – nontaxable
|
1,662 | 1,620 | 6,463 | 6,532 | ||||||||||||
Total interest income
|
12,137 | 12,429 | 48,670 | 49,946 | ||||||||||||
Interest Expense
|
||||||||||||||||
Interest on time deposits of $100,000 or more
|
320 | 468 | 1,491 | 2,019 | ||||||||||||
Interest on other deposits
|
1,496 | 1,709 | 6,396 | 7,165 | ||||||||||||
Total interest expense
|
1,816 | 2,177 | 7,887 | 9,184 | ||||||||||||
Net interest income
|
10,321 | 10,252 | 40,783 | 40,762 | ||||||||||||
Provision for loan losses
|
580 | 753 | 3,134 | 2,949 | ||||||||||||
Net interest income after provision for loan losses
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9,741 | 9,499 | 37,649 | 37,813 | ||||||||||||
Noninterest Income
|
||||||||||||||||
Service charges on deposit accounts
|
638 | 665 | 2,594 | 2,617 | ||||||||||||
Other service charges and fees
|
113 | 113 | 243 | 287 | ||||||||||||
Credit card fees
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837 | 832 | 3,278 | 3,197 | ||||||||||||
Trust income
|
276 | 270 | 1,313 | 1,087 | ||||||||||||
Bank-owned life insurance
|
209 | 203 | 814 | 762 | ||||||||||||
Other income
|
131 | 156 | 472 | 449 | ||||||||||||
Realized securities gains (losses), net
|
(8 | ) | 18 | 25 | 11 | |||||||||||
Total noninterest income
|
2,196 | 2,257 | 8,739 | 8,410 | ||||||||||||
Noninterest Expense
|
||||||||||||||||
Salaries and employee benefits
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2,991 | 2,796 | 12,005 | 11,357 | ||||||||||||
Occupancy and furniture and fixtures
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408 | 392 | 1,589 | 1,599 | ||||||||||||
Data processing and ATM
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387 | 412 | 1,593 | 1,701 | ||||||||||||
FDIC assessment
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132 | (372 | ) | 475 | 677 | |||||||||||
Credit card processing
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625 | 614 | 2,442 | 2,485 | ||||||||||||
Intangibles and goodwill amortization
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271 | 270 | 1,083 | 1,083 | ||||||||||||
Net costs of other real estate owned
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(1 | ) | 237 | 208 | 518 | |||||||||||
Franchise taxes
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255 | 161 | 901 | 780 | ||||||||||||
Other operating expenses
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798 | 832 | 3,100 | 3,138 | ||||||||||||
Total noninterest expense
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5,866 | 5,342 | 23,396 | 23,338 | ||||||||||||
Income before income tax expense
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6,071 | 6,414 | 22,992 | 22,885 | ||||||||||||
Income tax expense
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1,386 | 1,525 | 5,245 | 5,247 | ||||||||||||
Net income
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$ | 4,685 | $ | 4,889 | $ | 17,747 | $ | 17,638 | ||||||||
Basic net income per share
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$ | 0.67 | $ | 0.70 | $ | 2.56 | $ | 2.54 | ||||||||
Fully diluted net income per share
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$ | 0.67 | $ | 0.70 | $ | 2.55 | $ | 2.54 | ||||||||
Weighted average outstanding number of common shares
|
||||||||||||||||
Basic
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6,947,887 | 6,939,148 | 6,942,411 | 6,936,869 | ||||||||||||
Diluted
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6,964,482 | 6,949,960 | 6,959,867 | 6,950,863 | ||||||||||||
Dividends declared per share
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$ | 0.57 | $ | 0.52 | $ | 1.10 | $ | 1.00 | ||||||||
Dividend payout ratio
|
--- | --- | 43.04 | 39.34 | ||||||||||||
Book value per share
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$ | --- | $ | --- | $ | 21.60 | $ | 20.36 |
Three Months Ended
|
||||||||
($ in thousands)
|
December 31, 2012
|
December 31, 2011
|
||||||
Net Income
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$ | 4,685 | $ | 4,889 | ||||
Other Comprehensive Income, Net of Tax
|
||||||||
Unrealized holding losses on available for sale securities net of deferred taxes of ($141) in 2012 and ($222) in 2011
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(261 | ) | (412 | ) | ||||
Reclassification adjustment, net of income taxes of $3 in 2012 and $2 in 2011
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6 | 3 | ||||||
Net pension loss arising during the period, net of taxes of ($405) in 2012 and ($731) in 2011
|
(752 | ) | (1,356 | ) | ||||
Less: amortization of prior service cost included in net periodic pension cost, net taxes of ($35) in 2012 and ($35) in 2011
|
(66 | ) | (66 | ) | ||||
Other comprehensive loss, net of tax of ($578) and ($986)
|
$ | (1,073 | ) | $ | (1,831 | ) | ||
Total Comprehensive Income
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$ | 3,612 | $ | 3,058 |
Twelve Months Ended
|
||||||||
($ in thousands)
|
December 31, 2012
|
December 31, 2011
|
||||||
Net Income
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$ | 17,747 | $ | 17,638 | ||||
Other Comprehensive Income, Net of Tax
|
||||||||
Unrealized holding gains (losses) on available for sale securities net of deferred taxes of ($320) in 2012 and $1,468 in 2011
|
(592 | ) | 2,725 | |||||
Reclassification adjustment, net of income taxes of ($3) in 2012 and $9 in 2011
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(7 | ) | 17 | |||||
Net pension loss arising during the period, net of taxes of ($405) in 2012 and ($731) in 2011
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(752 | ) | (1,356 | ) | ||||
Less: amortization of prior service cost included in net periodic pension cost, net taxes of ($35) in 2012 and ($35) in 2011
|
(66 | ) | (66 | ) | ||||
Other comprehensive income (loss), net of tax of ($763) and $711
|
$ | (1,417 | ) | $ | 1,320 | |||
Total Comprehensive Income
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$ | 16,330 | $ | 18,958 |
Three Months Ended
|
Twelve Months Ended
|
|||||||||||||||
Average Balances
|
December 31, 2012
|
December 31, 2011
|
December 31, 2012
|
December 31, 2011
|
||||||||||||
Cash and due from banks
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$ | 8,958 | $ | 12,548 | $ | 11,129 | $ | 11,654 | ||||||||
Interest-bearing deposits
|
89,703 | 87,266 | 94,724 | 64,977 | ||||||||||||
Securities available for sale
|
192,724 | 177,387 | 189,850 | 186,296 | ||||||||||||
Securities held to maturity
|
161,344 | 139,318 | 149,566 | 134,612 | ||||||||||||
Mortgage loans held for sale
|
2,543 | 1,411 | 1,765 | 818 | ||||||||||||
Gross loans
|
591,604 | 590,425 | 589,129 | 589,414 | ||||||||||||
Loans, net
|
582,272 | 580,766 | 579,817 | 580,037 | ||||||||||||
Intangible assets
|
9,531 | 10,614 | 9,936 | 11,019 | ||||||||||||
Total assets
|
1,091,032 | 1,050,417 | 1,080,351 | 1,031,899 | ||||||||||||
Total deposits
|
932,678 | 902,055 | 925,986 | 888,044 | ||||||||||||
Other borrowings
|
--- | --- | --- | --- | ||||||||||||
Stockholders' equity
|
151,660 | 142,292 | 147,812 | 136,794 | ||||||||||||
Interest-earning assets
|
1,032,929 | 990,999 | 1,019,887 | 973,171 | ||||||||||||
Interest-bearing liabilities
|
789,684 | 760,567 | 784,717 | 752,164 | ||||||||||||
Financial ratios
|
||||||||||||||||
Return on average assets
|
1.71 | % | 1.85 | % | 1.64 | % | 1.71 | % | ||||||||
Return on average equity
|
12.29 | % | 13.63 | % | 12.01 | % | 12.89 | % | ||||||||
Net interest margin
|
4.37 | % | 4.50 | % | 4.39 | % | 4.59 | % | ||||||||
Net interest income – fully taxable equivalent
|
$ | 11,354 | $ | 11,230 | $ | 44,712 | $ | 41,914 | ||||||||
Efficiency ratio
|
43.29 | % | 39.66 | % | 43.77 | % | 44.00 | % | ||||||||
Average equity to average assets
|
13.90 | % | 13.55 | % | 13.68 | % | 13.26 | % | ||||||||
Allowance for loan losses
|
||||||||||||||||
Beginning balance
|
$ | 8,254 | $ | 8,719 | $ | 8,068 | $ | 7,664 | ||||||||
Provision for losses
|
580 | 753 | 3,134 | 2,949 | ||||||||||||
Charge-offs
|
(509 | ) | (1,423 | ) | (2,953 | ) | (2,628 | ) | ||||||||
Recoveries
|
24 | 19 | 100 | 83 | ||||||||||||
Ending balance
|
$ | 8,349 | $ | 8,068 | $ | 8,349 | $ | 8,068 |
Nonperforming assets
|
December 31, 2012
|
December 31, 2011
|
||||||
Nonaccrual loans
|
$ | 3,466 | $ | 1,398 | ||||
Nonaccrual restructured loans
|
2,151 | 3,806 | ||||||
Total nonperforming loans
|
5,617 | 5,204 | ||||||
Other real estate owned
|
1,435 | 1,489 | ||||||
Total nonperforming assets
|
$ | 7,052 | $ | 6,693 | ||||
Accruing restructured loans
|
$ | 2,005 | $ | 3,756 | ||||
Loans 90 days or more past due
|
$ | 170 | $ | 481 | ||||
Asset quality ratios
|
||||||||
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned
|
1.19 | % | 1.13 | % | ||||
Allowance for loan losses to total loans
|
1.41 | % | 1.37 | % | ||||
Allowance for loan losses to nonperforming loans
|
148.64 | % | 155.03 | % | ||||
Loans past due 90 days or more to loans net of unearned income and deferred fees
|
0.03 | % | 0.08 | % |
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