x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
IOWA
|
42-1039071
|
(State
or Other Jurisdiction of Incorporation or Organization)
|
(I.
R. S. EmployerIdentification
Number)
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
Non-accelerated
filer ¨
|
COMMON
STOCK, $2.00 PAR VALUE
|
9,425,013
|
(Class)
|
(Shares
Outstanding at November 1, 2006)
|
Page
|
||||||
PART
I.
|
FINANCIAL
INFORMATION
|
|||||
Item
1.
|
Consolidated
Financial Statements (Unaudited)
|
|||||
3
|
||||||
4
|
||||||
5
|
||||||
6
|
||||||
|
||||||
Item
2.
|
7
|
|||||
Item
3.
|
22
|
|||||
Item
4.
|
22
|
|||||
PART
II.
|
OTHER
INFORMATION
|
|||||
23
|
||||||
24
|
ASSETS
|
September
30,
2006
|
December
31,
2005
|
|||||
Cash
and due from banks
|
$
|
18,014,733
|
$
|
18,092,139
|
|||
Federal
funds sold
|
50,000
|
300,000
|
|||||
Interest
bearing deposits in financial institutions
|
3,331,089
|
5,983,542
|
|||||
Securities
available-for-sale
|
351,928,869
|
333,510,152
|
|||||
Loans
receivable, net
|
424,848,430
|
440,317,685
|
|||||
Loans
held for sale
|
591,185
|
981,280
|
|||||
Bank
premises and equipment, net
|
11,913,843
|
11,030,840
|
|||||
Accrued
income receivable
|
8,328,348
|
6,633,795
|
|||||
Deferred
income taxes
|
-
|
343,989
|
|||||
Other
assets
|
2,895,230
|
2,190,652
|
|||||
Total
assets
|
$
|
821,901,727
|
$
|
819,384,074
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
LIABILITIES
|
|||||||
Deposits
|
|||||||
Demand,
noninterest bearing
|
$
|
73,742,114
|
$
|
74,155,477
|
|||
NOW
accounts
|
150,119,248
|
151,680,984
|
|||||
Savings
and money market
|
149,674,765
|
160,998,014
|
|||||
Time,
$100,000 and over
|
92,706,421
|
101,042,024
|
|||||
Other
time
|
183,418,287
|
180,465,836
|
|||||
Total
deposits
|
649,660,835
|
668,342,335
|
|||||
Federal
funds purchased and securities sold under agreements to
repurchase
|
49,069,784
|
34,659,983
|
|||||
Other
short-term borrowings
|
2,272,894
|
2,861,130
|
|||||
FHLB
term advances
|
2,000,000
|
-
|
|||||
Dividend
payable
|
2,450,503
|
2,354,818
|
|||||
Deferred
income taxes
|
717,188
|
-
|
|||||
Accrued
expenses and other liabilities
|
3,954,891
|
1,938,507
|
|||||
Total
liabilities
|
710,126,095
|
710,156,773
|
|||||
STOCKHOLDERS'
EQUITY
|
|||||||
Common
stock, $2 par value, authorized 18,000,000 shares; 9,425,013 shares
issued
and outstanding September 30, 2006 and 9,419,271 shares issued
and
outstanding December 31, 2005
|
18,850,026
|
18,838,542
|
|||||
Additional
paid-in capital
|
22,498,904
|
22,383,375
|
|||||
Retained
earnings
|
65,586,270
|
64,713,530
|
|||||
Accumulated
other comprehensive income, net unrealized gain on securities
available-for-sale
|
4,840,432
|
3,291,854
|
|||||
Total
stockholders' equity
|
111,775,632
|
109,227,301
|
|||||
Total
liabilities and stockholders' equity
|
$
|
821,901,727
|
$
|
819,384,074
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Interest
and dividend income:
|
|||||||||||||
Loans
|
$
|
7,504,606
|
$
|
7,036,222
|
$
|
22,064,447
|
$
|
19,888,720
|
|||||
Securities
|
|||||||||||||
Taxable
|
2,320,638
|
2,121,380
|
6,488,712
|
6,469,383
|
|||||||||
Tax-exempt
|
1,045,124
|
1,040,237
|
3,121,681
|
3,162,676
|
|||||||||
Federal
funds sold
|
40,918
|
3,277
|
144,911
|
131,557
|
|||||||||
Dividends
|
353,659
|
333,722
|
1,052,437
|
1,053,311
|
|||||||||
Total
interest income
|
11,264,945
|
10,534,838
|
32,872,188
|
30,705,647
|
|||||||||
Interest
expense:
|
|||||||||||||
Deposits
|
5,111,121
|
3,691,821
|
14,515,383
|
10,237,119
|
|||||||||
Other
borrowed funds
|
497,354
|
482,849
|
1,097,577
|
1,148,575
|
|||||||||
Total
interest expense
|
5,608,475
|
4,174,670
|
15,612,960
|
11,385,694
|
|||||||||
Net
interest income
|
5,656,470
|
6,360,168
|
17,259,228
|
19,319,953
|
|||||||||
Provision
(credit) for loan losses
|
45,859
|
118,431
|
(227,371
|
)
|
247,038
|
||||||||
Net
interest income after provision (credit) for loan losses
|
5,610,611
|
6,241,737
|
17,486,599
|
19,072,915
|
|||||||||
Non-interest
income:
|
|||||||||||||
Trust
department income
|
336,207
|
271,730
|
1,089,285
|
1,015,260
|
|||||||||
Service
fees
|
474,633
|
465,027
|
1,379,684
|
1,335,672
|
|||||||||
Securities
gains, net
|
330,827
|
265,771
|
846,135
|
633,554
|
|||||||||
Gain
on sale of loans held for sale
|
173,163
|
186,812
|
457,150
|
468,833
|
|||||||||
Merchant
and ATM fees
|
127,108
|
145,006
|
403,328
|
429,209
|
|||||||||
Gain
on sale or foreclosure of real estate
|
10,734
|
—
|
482,203
|
—
|
|||||||||
Other
|
118,701
|
110,473
|
404,894
|
351,314
|
|||||||||
Total
non-interest income
|
1,571,373
|
1,444,819
|
5,062,679
|
4,233,842
|
|||||||||
Non-interest
expense:
|
|||||||||||||
Salaries
and employee benefits
|
2,341,368
|
2,354,097
|
7,128,646
|
7,065,595
|
|||||||||
Data
processing
|
541,865
|
469,622
|
1,624,142
|
1,515,026
|
|||||||||
Occupancy
expenses
|
294,113
|
285,962
|
891,991
|
864,370
|
|||||||||
Other
operating expenses
|
639,067
|
697,397
|
2,024,029
|
1,999,283
|
|||||||||
Total
non-interest expense
|
3,816,413
|
3,807,078
|
11,668,808
|
11,444,274
|
|||||||||
Income
before income taxes
|
3,365,571
|
3,879,478
|
10,880,470
|
11,862,483
|
|||||||||
Income
tax expense
|
819,999
|
962,102
|
2,657,713
|
2,962,871
|
|||||||||
Net
income
|
$
|
2,545,572
|
$
|
2,917,376
|
$
|
8,222,757
|
$
|
8,899,612
|
|||||
Basic
and diluted earnings per share
|
$
|
0.27
|
$
|
0.31
|
$
|
0.87
|
$
|
0.95
|
|||||
Declared
dividends per share
|
$
|
0.26
|
$
|
0.25
|
$
|
0.78
|
$
|
0.75
|
|||||
Comprehensive
Income
|
$
|
6,971,733
|
$
|
473,204
|
$
|
9,771,335
|
$
|
5,744,755
|
Nine
Months Ended
|
|||||||
September
30,
|
|||||||
|
2006
|
2005
|
|||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|||||||
Net
income
|
$
|
8,222,757
|
$
|
8,899,612
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
Provision
(credit) for loan losses
|
(227,371
|
)
|
247,038
|
||||
Amortization
and accretion
|
133,426
|
396,565
|
|||||
Depreciation
|
720,603
|
667,635
|
|||||
Provision
for deferred taxes
|
151,694
|
(58,535
|
)
|
||||
Securities
gains, net
|
(846,135
|
)
|
(633,554
|
)
|
|||
Gain
on foreclosure of real estate
|
(482,203
|
)
|
-
|
||||
Change
in assets and liabilities:
|
|||||||
Decrease
(increase) in loans held for sale
|
390,095
|
(521,750
|
)
|
||||
Decrease
in accrued income receivable
|
(1,694,553
|
)
|
(1,208,925
|
)
|
|||
Decrease
(increase) in other assets
|
(222,375
|
)
|
747,923
|
||||
Increase
in accrued expenses and other liabilities
|
2,016,384
|
914,481
|
|||||
Net
cash provided by operating activities
|
8,162,322
|
9,450,490
|
|||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|||||||
Purchase
of securities available-for-sale
|
(51,901,443
|
)
|
(49,455,168
|
)
|
|||
Proceeds
from sale of securities available-for-sale
|
4,925,519
|
21,228,870
|
|||||
Proceeds
from maturities and calls of securities available-for-sale
|
31,727,977
|
43,417,229
|
|||||
Net
decrease in interest bearing deposits in financial
institutions
|
2,652,453
|
2,601,605
|
|||||
Net
decrease in federal funds sold
|
250,000
|
19,765,000
|
|||||
Net
decrease (increase) in loans
|
15,696,626
|
(24,316,546
|
)
|
||||
Purchase
of bank premises and equipment
|
(1,603,606
|
)
|
(1,098,384
|
)
|
|||
Net
cash provided by investing activities
|
1,747,526
|
12,142,606
|
|||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|||||||
Decrease
in deposits
|
(18,681,500
|
)
|
(736,220
|
)
|
|||
Increase
(decrease) in federal funds purchased and securities sold under
agreements
to repurchase
|
14,409,801
|
(13,394,158
|
)
|
||||
Increase
in other borrowings, net
|
1,411,764
|
-
|
|||||
Dividends
paid
|
(7,254,332
|
)
|
(6,244,780
|
)
|
|||
Proceeds
from issuance of common stock
|
127,013
|
287,937
|
|||||
Net
cash used in financing activities
|
(9,987,254
|
)
|
(20,087,221
|
)
|
|||
Net
increase in cash and cash equivalents
|
(77,406
|
)
|
1,505,875
|
||||
CASH
AND DUE FROM BANKS
|
|||||||
Beginning
|
18,092,139
|
18,759,086
|
|||||
Ending
|
$
|
18,014,733
|
$
|
20,264,961
|
|||
Cash
payments for:
|
|||||||
Interest
|
$
|
15,515,486
|
11,359,468
|
||||
Income
taxes
|
2,869,358
|
3,068,666
|
·
|
Challenges
|
·
|
Key
Performance Indicators and Industry
Results
|
·
|
Income
Statement Review
|
·
|
Balance
Sheet Review
|
·
|
Asset
Quality and Credit Risk Management
|
·
|
Liquidity
and Capital Resources
|
·
|
Forward-Looking
Statements and Business Risks
|
· |
Short-term
federal fund interest rates have risen 1.50% since September
of last year.
This rapid increase has negatively impacted the Company’s net interest
margin as interest expense on interest bearing liabilities increased
more
quickly than interest income on earning assets. Additional rapid
increases
in short term rates may create additional downward pressure on
the
Company’s earnings. As a result of the short term rate increases and
the
competitive nature of the Company’s markets, the net interest margin has
fallen to 3.25% for the three months ended September 30, 2006
compared to
3.58% for the three months ended September 30, 2005. The Company’s earning
assets (primarily its loan and investment portfolio) have longer
maturities than its interest bearing liabilities (primarily deposits
and
other borrowings); therefore, in a rising interest rate environment,
interest expense will increase more quickly than interest income
as the
interest bearing liabilities reprice more quickly than earning
assets. In
response to this challenge, the Banks model quarterly the changes
in
income that would result from various changes in interest rates.
Management believes Bank assets have the appropriate maturity
and
repricing characteristics to optimize earnings and the Banks’ interest
rate risk positions.
|
· |
The
Company’s market in central Iowa has numerous banks, credit unions, and
investment and insurance companies competing for similar business
opportunities. This competitive environment will continue to put
compression pressure on the Banks’ customer interest rates, both loans and
deposits, ultimately, narrowing the net interest margin and, affecting
profitability. Strategic planning efforts at the Company and Banks
continue to focus on capitalizing on the Banks’ strengths in local markets
while working to identify opportunities for improvement to gain
competitive advantages.
|
· |
A
potential challenge to the Company’s earnings would be poor performance in
the Company’s equity portfolio, thereby reducing the historical level of
realized security gains. The Company, on an unconsolidated basis,
invests
capital that may be utilized for future expansion in a portfolio
of
primarily financial and utility stocks totaling $23 million as
of
September 30, 2006. The Company focuses on stocks that have historically
paid dividends that may lessen the negative effects of a bear
market.
|
September
30, 2006
|
June
30, 2006
|
Years
Ended December 31,
|
|||||||||||||||||||||||
3
Months
Ended
|
9
Months
Ended
|
3
Months
Ended
|
2005
|
2004
|
|||||||||||||||||||||
Company
|
Company
|
Company
|
Industry*
|
Company
|
Industry
|
Company
|
Industry
|
||||||||||||||||||
Return
on assets
|
1.25
|
%
|
1.34
|
%
|
1.35
|
%
|
1.34
|
%
|
1.40
|
%
|
1.28
|
%
|
1.56
|
%
|
1.29
|
%
|
|||||||||
Return
on equity
|
9.36
|
%
|
10.08
|
%
|
10.22
|
%
|
12.99
|
%
|
10.57
|
%
|
12.46
|
%
|
11.47
|
%
|
13.28
|
%
|
|||||||||
Net
interest margin
|
3.25
|
%
|
3.29
|
%
|
3.29
|
%
|
3.46
|
%
|
3.56
|
%
|
3.49
|
%
|
3.97
|
%
|
3.53
|
%
|
|||||||||
Efficiency
ratio
|
52.80
|
%
|
52.26
|
%
|
53.84
|
%
|
56.00
|
%
|
49.09
|
%
|
57.24
|
%
|
46.59
|
%
|
58.03
|
%
|
|||||||||
Capital
ratio
|
13.32
|
%
|
13.32
|
%
|
13.20
|
%
|
8.24
|
%
|
13.21
|
%
|
8.25
|
%
|
13.62
|
%
|
8.12
|
%
|
·
|
Return
on Assets
|
·
|
Return
on Equity
|
· |
Net
Interest Margin
|
· |
Efficiency
Ratio
|
· |
Capital
Ratio
|
Three
Months Ended September 30,
|
|||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
ASSETS
(dollars
in thousands)
|
Average
balance
|
Revenue
|
Yield
|
Average
balance
|
Revenue
|
Yield
|
|||||||||||||
Interest-earning
assets
|
|||||||||||||||||||
Loans
|
|||||||||||||||||||
Commercial
|
$
|
70,593
|
$
|
1,427
|
8.09
|
%
|
$
|
66,715
|
$
|
1,103
|
6.61
|
%
|
|||||||
Agricultural
|
33,813
|
727
|
8.60
|
%
|
30,352
|
572
|
7.54
|
%
|
|||||||||||
Real
estate
|
305,662
|
4,979
|
6.52
|
%
|
312,650
|
4,922
|
6.30
|
%
|
|||||||||||
Installment
and other
|
23,846
|
372
|
6.24
|
%
|
30,914
|
439
|
5.68
|
%
|
|||||||||||
Total
loans (including fees)
|
$
|
433,914
|
$
|
7,505
|
6.92
|
%
|
$
|
440,631
|
$
|
7,036
|
6.39
|
%
|
|||||||
Investment
securities
|
|||||||||||||||||||
Taxable
|
$
|
218,684
|
$
|
2,409
|
4.41
|
%
|
$
|
213,712
|
$
|
2,180
|
4.08
|
%
|
|||||||
Tax-exempt
|
121,696
|
1,962
|
6.45
|
%
|
125,579
|
1,960
|
6.24
|
%
|
|||||||||||
Total
investment securities
|
$
|
340,380
|
$
|
4,371
|
5.14
|
%
|
$
|
339,291
|
$
|
4,140
|
4.88
|
%
|
|||||||
Interest
bearing deposits with banks
|
$
|
3,921
|
$
|
35
|
3.57
|
%
|
$
|
6,962
|
$
|
42
|
2.41
|
%
|
|||||||
Federal
funds sold
|
2,853
|
41
|
5.75
|
%
|
215
|
3
|
5.58
|
%
|
|||||||||||
Total
interest-earning assets
|
$
|
781,068
|
$
|
11,952
|
6.12
|
%
|
$
|
787,099
|
$
|
11,221
|
5.70
|
%
|
|||||||
Non-interest-earning
assets
|
35,605
|
38,288
|
|||||||||||||||||
TOTAL
ASSETS
|
$
|
816,673
|
$
|
825,387
|
1
|
Average
loan balances include nonaccrual loans, if any. Interest income
on
nonaccrual loans has been included.
|
2
|
Tax-exempt
income has been adjusted to a tax-equivalent basis using an incremental
tax rate of 35%.
|
Three
Months Ended September 30,
|
|||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
(dollars
in thousands)
|
Average
balance
|
Revenue/
expense
|
Yield/
rate
|
Average
balance
|
Revenue/
expense
|
Yield/
rate
|
|||||||||||||
Interest-bearing
liabilities
|
|||||||||||||||||||
Deposits
|
|||||||||||||||||||
Savings,
NOW accounts, and money markets
|
$
|
307,788
|
$
|
2,165
|
2.81
|
%
|
$
|
305,367
|
$
|
1,407
|
1.84
|
%
|
|||||||
Time
deposits < $100,000
|
182,885
|
1,837
|
4.02
|
%
|
174,961
|
1,426
|
3.26
|
%
|
|||||||||||
Time
deposits > $100,000
|
95,887
|
1,109
|
4.63
|
%
|
96,165
|
859
|
3.57
|
%
|
|||||||||||
Total
deposits
|
$
|
586,560
|
$
|
5,111
|
3.49
|
%
|
$
|
576,493
|
$
|
3,692
|
2.56
|
%
|
|||||||
Other
borrowed funds
|
42,953
|
498
|
4.64
|
%
|
61,674
|
483
|
3.13
|
%
|
|||||||||||
Total
interest-bearing
|
$
|
629,513
|
$
|
5,609
|
3.56
|
%
|
$
|
638,167
|
$
|
4,175
|
2.62
|
%
|
|||||||
liabilities
|
|||||||||||||||||||
Non-interest-bearing
liabilities
|
|||||||||||||||||||
Demand
deposits
|
$
|
71,010
|
$
|
68,543
|
|||||||||||||||
Other
liabilities
|
7,345
|
7,966
|
|||||||||||||||||
Stockholders'
equity
|
$
|
108,805
|
$
|
110,711
|
|||||||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
816,673
|
$
|
825,387
|
|||||||||||||||
Net
interest: income / margin
|
$
|
6,343
|
3.25
|
%
|
$
|
7,046
|
3.58
|
%
|
|||||||||||
Spread
Analysis
|
|||||||||||||||||||
Interest
income/average assets
|
$
|
11,952
|
5.85
|
%
|
$
|
11,221
|
5.44
|
%
|
|||||||||||
Interest
expense/average assets
|
$
|
5,609
|
2.75
|
%
|
$
|
4,175
|
2.02
|
%
|
|||||||||||
Net
interest income/average assets
|
$
|
6,343
|
3.11
|
%
|
$
|
7,046
|
3.41
|
%
|
1
|
Tax-exempt
income has been adjusted to a tax-equivalent basis using an incremental
tax rate of 35%.
|
Nine
Months Ended September 30,
|
|||||||||||||||||||
2006
|
2005
|
||||||||||||||||||
ASSETS
(dollars
in thousands)
|
Average
balance
|
Revenue
|
Yield
|
Average
balance
|
Revenue
|
Yield
|
|||||||||||||
Interest-earning
assets
|
|||||||||||||||||||
Loans
|
|||||||||||||||||||
Commercial
|
$
|
70,619
|
$
|
4,031
|
7.61
|
%
|
$
|
65,781
|
$
|
3,092
|
6.27
|
%
|
|||||||
Agricultural
|
33,345
|
2,058
|
8.23
|
%
|
29,657
|
1,598
|
7.18
|
%
|
|||||||||||
Real
estate
|
307,917
|
14,661
|
6.35
|
%
|
310,383
|
14,077
|
6.05
|
%
|
|||||||||||
Installment
and other
|
28,719
|
1,314
|
6.10
|
%
|
27,866
|
1,123
|
5.37
|
%
|
|||||||||||
Total
loans (including fees)
|
$
|
440,600
|
$
|
22,064
|
6.68
|
%
|
$
|
433,687
|
$
|
19,890
|
6.12
|
%
|
|||||||
Investment
securities
|
|||||||||||||||||||
Taxable
|
$
|
211,711
|
$
|
6,750
|
4.25
|
%
|
$
|
219,253
|
$
|
6,659
|
4.05
|
%
|
|||||||
Tax-exempt
|
122,100
|
5,853
|
6.39
|
%
|
127,256
|
6,000
|
6.29
|
%
|
|||||||||||
Total
investment securities
|
$
|
333,811
|
$
|
12,603
|
5.03
|
%
|
$
|
346,509
|
$
|
12,659
|
4.87
|
%
|
|||||||
Interest
bearing deposits with banks
|
$
|
4,534
|
$
|
108
|
3.18
|
%
|
$
|
7,099
|
$
|
127
|
2.39
|
%
|
|||||||
Federal
funds sold
|
3,672
|
145
|
5.27
|
%
|
6,341
|
130
|
2.73
|
%
|
|||||||||||
Total
interest-earning assets
|
$
|
782,617
|
$
|
34,920
|
5.95
|
%
|
$
|
793,636
|
$
|
32,806
|
5.51
|
%
|
|||||||
Total
noninterest-earning assets
|
$
|
33,738
|
$
|
36,900
|
|||||||||||||||
TOTAL
ASSETS
|
$
|
816,355
|
$
|
830,536
|
Nine
Months Ended September 30,
|
|||||||||||||||||||
|
2006
|
2005
|
|||||||||||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
(dollars
in thousands)
|
Average
balance
|
Revenue/
expense
|
Yield/
rate
|
Average
balance
|
Revenue/
expense
|
Yield/
rate
|
|||||||||||||
Interest-bearing
liabilities
|
|||||||||||||||||||
Deposits
|
|||||||||||||||||||
Savings,
NOW accounts, and money markets
|
$
|
316,359
|
$
|
6,144
|
2.59
|
%
|
$
|
325,671
|
$
|
4,066
|
1.66
|
%
|
|||||||
Time
deposits < $100,000
|
181,984
|
5,158
|
3.78
|
%
|
172,485
|
3,980
|
3.08
|
%
|
|||||||||||
Time
deposits > $100,000
|
98,794
|
3,214
|
4.34
|
%
|
89,030
|
2,191
|
3.28
|
%
|
|||||||||||
Total
deposits
|
$
|
597,137
|
$
|
14,516
|
3.24
|
%
|
$
|
587,186
|
$
|
10,237
|
2.32
|
%
|
|||||||
Other
borrowed funds
|
34,911
|
1,097
|
4.19
|
%
|
59,643
|
1,149
|
2.57
|
%
|
|||||||||||
Total
interest-bearing
|
$
|
632,048
|
$
|
15,613
|
3.29
|
%
|
$
|
646,829
|
$
|
11,386
|
2.35
|
%
|
|||||||
liabilities
|
|||||||||||||||||||
Noninterest-bearing
liabilities
|
|||||||||||||||||||
Demand
deposits
|
$
|
69,520
|
$
|
66,036
|
|||||||||||||||
Other
liabilities
|
6,027
|
7,596
|
|||||||||||||||||
Stockholders'
equity
|
$
|
108,760
|
$
|
110,075
|
|||||||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
816,355
|
$
|
830,536
|
|||||||||||||||
Net
interest income / margin
|
$
|
19,307
|
3.29
|
%
|
$
|
21,420
|
3.60
|
%
|
|||||||||||
Spread
Analysis
|
|||||||||||||||||||
Interest
income/average assets
|
$
|
34,920
|
5.70
|
%
|
$
|
32,806
|
5.27
|
%
|
|||||||||||
Interest
expense/average assets
|
15,613
|
2.55
|
%
|
11,386
|
1.83
|
%
|
|||||||||||||
Net
interest income/average assets
|
19,307
|
3.15
|
%
|
21,420
|
3.44
|
%
|
1
|
Tax-exempt
income has been adjusted to a tax-equivalent basis using an incremental
tax rate of 35%.
|
·
|
Review
the Company’s Current Liquidity
Sources
|
·
|
Review
of the Statements of Cash Flows
|
·
|
Company
Only Cash Flows
|
·
|
Review
of Commitments for Capital Expenditures, Cash Flow Uncertainties
and Known
Trends in Liquidity and Cash Flows
Needs
|
·
|
Capital
Resources
|
(a)
|
Exhibits
|
Certification
of Principal Executive Officer Pursuant to Section 302 of Sarbanes-Oxley
Act of 2002.
|
Certification
of Principal Financial Officer Pursuant to Section 302 of Sarbanes-Oxley
Act of 2002.
|
Certification
of Principal Executive Officer Pursuant to 18 U.S.C. Section
1350.
|
Certification
of Principal Financial Officer Pursuant to 18 U.S.C. Section
1350.
|
AMES
NATIONAL CORPORATION
|
||
DATE:
November 8, 2006
|
By:
|
/s/
Daniel L. Krieger
|
Daniel
L. Krieger, President
|
||
Principal
Executive Officer
|
||
By: |
/s/
John P. Nelson
|
|
John
P. Nelson, Vice President
|
||
Principal
Financial Officer
|