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)
|
March 31, 2013
|
March 31, 2012
|
December 31, 2012
|
|||||||||
Assets
|
||||||||||||
Cash and due from banks
|
$
|
10,674
|
$
|
12,241
|
$
|
14,783
|
||||||
Interest-bearing deposits
|
107,176
|
101,301
|
96,597
|
|||||||||
Securities available for sale
|
192,954
|
198,346
|
191,504
|
|||||||||
Securities held to maturity
|
166,947
|
139,367
|
160,539
|
|||||||||
Total securities
|
359,901
|
337,713
|
352,043
|
|||||||||
Mortgage loans held for sale
|
313
|
1,371
|
2,796
|
|||||||||
Loans:
|
||||||||||||
Loans, net of unearned income and deferred fees
|
574,958
|
584,564
|
592,162
|
|||||||||
Less: allowance for loan losses
|
(8,291
|
)
|
(8,063
|
)
|
(8,349
|
)
|
||||||
Loans, net
|
566,667
|
576,501
|
583,813
|
|||||||||
Bank premises and equipment, net
|
10,237
|
10,563
|
10,401
|
|||||||||
Accrued interest receivable
|
5,878
|
6,175
|
6,247
|
|||||||||
Other real estate owned
|
1,094
|
940
|
1,435
|
|||||||||
Intangible assets
|
9,106
|
10,189
|
9,377
|
|||||||||
Bank-owned life insurance
|
20,690
|
19,991
|
20,523
|
|||||||||
Other assets
|
6,767
|
6,857
|
6,346
|
|||||||||
Total assets
|
$
|
1,098,503
|
$
|
1,083,842
|
$
|
1,104,361
|
||||||
Liabilities and Stockholders' Equity
|
||||||||||||
Noninterest-bearing deposits
|
$
|
144,815
|
$
|
145,070
|
$
|
144,252
|
||||||
Interest-bearing demand deposits
|
449,992
|
415,352
|
455,713
|
|||||||||
Savings deposits
|
72,420
|
65,322
|
69,063
|
|||||||||
Time deposits
|
269,892
|
306,048
|
277,738
|
|||||||||
Total deposits
|
937,119
|
931,792
|
946,766
|
|||||||||
Accrued interest payable
|
146
|
191
|
139
|
|||||||||
Other liabilities
|
7,878
|
7,067
|
7,347
|
|||||||||
Total liabilities
|
945,143
|
939,050
|
954,252
|
|||||||||
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 6,947,974 shares at March 31, 2013, 6,939,974 at March 31, 2012 and 6,947,974 at December 31, 2012
|
8,685
|
8,675
|
8,685
|
|||||||||
Retained earnings
|
148,378
|
138,374
|
144,162
|
|||||||||
Accumulated other comprehensive loss, net
|
(3,703
|
)
|
(2,257
|
)
|
(2,738
|
)
|
||||||
Total stockholders' equity
|
153,360
|
144,792
|
150,109
|
|||||||||
Total liabilities and stockholders' equity
|
$
|
1,098,503
|
$
|
1,083,842
|
$
|
1,104,361
|
Three Months Ended
|
||||||||
March 31, 2013
|
March 31, 2012
|
|||||||
($ in thousands, except for per share data)
|
||||||||
Interest Income
|
||||||||
Interest and fees on loans
|
$
|
8,319
|
$
|
8,878
|
||||
Interest on interest-bearing deposits
|
58
|
71
|
||||||
Interest on securities – taxable
|
1,539
|
1,589
|
||||||
Interest on securities – nontaxable
|
1,648
|
1,576
|
||||||
Total interest income
|
11,564
|
12,114
|
||||||
Interest Expense
|
||||||||
Interest on time deposits of $100,000 or more
|
268
|
425
|
||||||
Interest on other deposits
|
1,411
|
1,692
|
||||||
Total interest expense
|
1,679
|
2,117
|
||||||
Net interest income
|
9,885
|
9,997
|
||||||
Provision for loan losses
|
671
|
672
|
||||||
Net interest income after provision for loan losses
|
9,214
|
9,325
|
||||||
Noninterest Income
|
||||||||
Service charges on deposit accounts
|
588
|
631
|
||||||
Other service charges and fees
|
60
|
49
|
||||||
Credit card fees
|
740
|
794
|
||||||
Trust income
|
289
|
326
|
||||||
Bank-owned life insurance
|
188
|
200
|
||||||
Other income
|
150
|
99
|
||||||
Realized securities gains, net
|
95
|
53
|
||||||
Total noninterest income
|
2,110
|
2,152
|
||||||
Noninterest Expense
|
||||||||
Salaries and employee benefits
|
2,940
|
2,956
|
||||||
Occupancy and furniture and fixtures
|
432
|
397
|
||||||
Data processing and ATM
|
393
|
392
|
||||||
FDIC assessment
|
136
|
109
|
||||||
Credit card processing
|
552
|
572
|
||||||
Intangibles and goodwill amortization
|
271
|
271
|
||||||
Net costs of other real estate owned
|
75
|
48
|
||||||
Franchise taxes
|
258
|
162
|
||||||
Other operating expenses
|
889
|
804
|
||||||
Total noninterest expense
|
5,946
|
5,711
|
||||||
Income before income tax expense
|
5,378
|
5,766
|
||||||
Income tax expense
|
1,162
|
1,337
|
||||||
Net income
|
$
|
4,216
|
$
|
4,429
|
||||
Basic net income per share
|
$
|
0.61
|
$
|
0.64
|
||||
Fully diluted net income per share
|
$
|
0.60
|
$
|
0.64
|
||||
Weighted average outstanding number of common shares
|
||||||||
Basic
|
6,947,974
|
6,939,974
|
||||||
Diluted
|
6,969,073
|
6,954,637
|
||||||
Dividends declared per share
|
---
|
---
|
||||||
Dividend payout ratio
|
---
|
---
|
||||||
Book value per share
|
$
|
22.07
|
$
|
20.86
|
Three Months Ended
|
||||||||
($ in thousands, except for per share data)
|
March 31, 2013
|
March 31, 2012
|
||||||
Net Income
|
$
|
4,216
|
$
|
4,429
|
||||
Other Comprehensive Income, net of tax
|
||||||||
Unrealized holding losses on available for sale securities net of deferred taxes of ($486) and ($489)
|
(903
|
)
|
(907
|
)
|
||||
Reclassification adjustment, net of income taxes of ($33) and ($15)
|
(62
|
)
|
(29
|
)
|
||||
Other comprehensive loss, net of tax of ($1,485) and ($504)
|
$
|
(965
|
)
|
$
|
(936
|
)
|
||
Total Comprehensive Income
|
$
|
3,251
|
$
|
3,493
|
Average Balances
|
March 31, 2013
|
March 31, 2012
|
||||||
Cash and due from banks
|
$
|
12,023
|
$
|
11,865
|
||||
Interest-bearing deposits
|
99,216
|
110,901
|
||||||
Securities available for sale
|
190,938
|
175,232
|
||||||
Securities held to maturity
|
162,264
|
140,743
|
||||||
Mortgage loans held for sale
|
1,507
|
1,213
|
||||||
Gross loans
|
583,337
|
585,080
|
||||||
Loans, net
|
574,030
|
575,583
|
||||||
Intangible assets
|
9,262
|
10,344
|
||||||
Total assets
|
1,092,880
|
1,068,848
|
||||||
Total deposits
|
933,185
|
918,387
|
||||||
Other borrowings
|
---
|
---
|
||||||
Stockholders' equity
|
151,852
|
143,603
|
||||||
Interest-earning assets
|
1,033,967
|
1,012,224
|
||||||
Interest-bearing liabilities
|
795,321
|
780,804
|
||||||
Financial ratios
|
||||||||
Return on average assets
|
1.56
|
%
|
1.67
|
%
|
||||
Return on average equity
|
11.26
|
%
|
12.40
|
%
|
||||
Net interest margin
|
4.28
|
%
|
4.36
|
%
|
||||
Net interest income – fully taxable equivalent
|
$
|
10,906
|
$
|
10,940
|
||||
Efficiency ratio
|
45.68
|
%
|
43.63
|
%
|
||||
Average equity to average assets
|
13.89
|
%
|
13.44
|
%
|
||||
Allowance for loan losses
|
||||||||
Beginning balance
|
$
|
8,349
|
$
|
8,068
|
||||
Provision for losses
|
671
|
672
|
||||||
Charge-offs
|
(754
|
)
|
(700
|
)
|
||||
Recoveries
|
25
|
23
|
||||||
Ending balance
|
$
|
8,291
|
$
|
8,063
|
Nonperforming assets
|
March 31, 2013
|
March 31, 2012
|
||||||
Nonaccrual loans
|
$
|
10,734
|
$
|
1,789
|
||||
Nonaccrual restructured loans
|
1,691
|
3,539
|
||||||
Total nonperforming loans
|
12,425
|
5,328
|
||||||
Other real estate owned
|
1,094
|
940
|
||||||
Total nonperforming assets
|
$
|
13,519
|
$
|
6,268
|
||||
Accruing restructured loans
|
$
|
5,732
|
$
|
3,742
|
||||
Loans 90 days or more past due
|
$
|
568
|
$
|
210
|
||||
Asset quality ratios
|
||||||||
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned
|
2.35
|
%
|
1.07
|
%
|
||||
Allowance for loan losses to total loans
|
1.44
|
%
|
1.38
|
%
|
||||
Allowance for loan losses to nonperforming loans
|
66.73
|
%
|
151.33
|
%
|
||||
Loans past due 90 days or more to loans net of unearned income and deferred fees
|
0.10
|
%
|
0.04
|
%
|
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