For
the fiscal year ended December 31, 2006.
|
Commission
File Number 0-32637.
|
IOWA
|
42-1039071
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
405
FIFTH STREET, AMES, IOWA
|
50010
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o
|
Part
I
|
||||
Item
1.
|
||||
Item
1A.
|
||||
Item
1B.
|
||||
Item
2.
|
||||
Item
3.
|
||||
Item
4.
|
||||
Part
II
|
||||
Item
5.
|
||||
Item
6.
|
||||
Item
7.
|
||||
Item
7A.
|
||||
Item
8.
|
||||
Item
9.
|
||||
Item
9 A.
|
||||
Item
9 B.
|
||||
Part
III
|
||||
Item
10.
|
||||
Item
11.
|
||||
Item
12.
|
||||
Item
13.
|
||||
Item
14.
|
||||
Part
IV
|
||||
Item
15.
|
ITEM
1.
|
BUSINESS
|
|
-
|
financing
guaranteed under Small Business Administration
programs
|
|
-
|
operating
and working capital loans
|
|
-
|
loans
to finance equipment and other capital
purchases
|
|
-
|
commercial
real estate loans
|
|
-
|
business
lines of credit
|
|
-
|
term
loans
|
|
-
|
loans
to professionals
|
|
-
|
letters
of credit
|
|
-
|
automobiles
and trucks
|
|
-
|
boats
and recreational vehicles
|
|
-
|
personal
loans and lines of credit
|
|
-
|
home
equity lines of credit
|
|
-
|
home
improvement and rehabilitation
loans
|
|
-
|
consumer
real estate loans
|
Name
|
Age
|
Position
with the Company or Bank and Principal Occupation and Employment
During
the Past Five Years
|
||
Kevin
G. Deardorff
|
52
|
Vice
President & Technology Director of the Company.
|
||
Leo
E. Herrick
|
65
|
President
of United Bank commencing June, 2002. Previously, employed as Chairman
of
the Board and President of F&M Bank-Iowa, Marshalltown,
Iowa.
|
||
Daniel
L. Krieger
|
70
|
Chairman
of the Company since 2003 and President of Company since 1997. Previously
served as President of First National. Also serves as a Director
of the
Company, Chairman of the Board and Trust Officer of First National
and
Chairman of the Board of Boone Bank and United Bank.
|
||
Stephen
C. McGill
|
52
|
President
of State Bank since 2003. Previously served as Senior Vice
President of State Bank.
|
||
John
P. Nelson
|
40
|
Vice
President, Secretary and Treasurer of Company. Also serves as Director
of
Randall-Story Bank and State Bank.
|
||
Thomas
H. Pohlman
|
56
|
Named
Chief Operating Officer of the Company in 2006 and also serves as
President of First National since 1999.
|
||
|
||||
Jeffrey
K. Putzier
|
45
|
President
of Boone Bank since 1999.
|
||
Harold
E. Thompson
|
61
|
President
of Randall Story Bank since 2003. Previously served as
Executive Vice President of Randall-Story State Bank.
|
||
Terrill
L. Wycoff
|
63
|
Executive
Vice President of First National since
2000.
|
ITEM
1A.
|
RISK
FACTORS
|
|
·
|
changes
in regulations;
|
|
·
|
changes
in technology and product delivery systems;
and
|
|
·
|
the
accelerating pace of consolidation among financial services
providers.
|
|
·
|
the
payment of dividends to the Company’s
shareholders;
|
|
·
|
the
payment of dividends to the Company from the
Banks;
|
|
·
|
possible
mergers with or acquisitions of or by other
institutions;
|
|
·
|
investment
policies;
|
|
·
|
loans
and interest rates on loans;
|
|
·
|
interest
rates paid on deposits;
|
|
·
|
expansion
of branch offices; and/or
|
|
·
|
the
possibility to provide or expand securities or trust
services.
|
ITEM
1B.
|
UNRESOLVED
STAFF COMMENTS
|
ITEM
2.
|
PROPERTIES
|
ITEM
3.
|
LEGAL
PROCEEDINGS
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF
SHAREHOLDERS
|
ITEM
5.
|
MARKET
FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS, AND ISSUER
PURCHASES OF EQUITY
SECURITIES
|
2006
|
|
2005
|
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
Market
Price
|
|
Market
Price
|
|
||||||||||||||
|
|
|
|
|
|
|
|
||||||||||
Quarter
|
|
High
|
|
|
Low
|
|
Quarter
|
|
High
|
|
|
Low
|
|
||||
1st
|
|
$
|
28.57
|
|
|
$
|
22.85
|
|
1st
|
|
$
|
32.67
|
|
|
$
|
27.57
|
|
2nd
|
|
$
|
26.00
|
|
|
$
|
19.75
|
|
2nd
|
|
$
|
40.00
|
|
|
$
|
30.00
|
|
3rd
|
|
$
|
22.75
|
|
|
$
|
21.41
|
|
3rd
|
|
$
|
42.82
|
|
|
$
|
25.57
|
|
4th
|
|
$
|
22.69
|
|
|
$
|
19.82
|
|
4th
|
|
$
|
29.00
|
|
|
$
|
23.12
|
|
|
2006
|
|
|
2005
|
|
|||
|
|
|
|
|||||
Quarter
|
|
Cash
dividends declared per share
|
|
|
Cash
dividends declared per share
|
|
||
|
|
|
|
|||||
1st
|
|
$
|
0.26
|
|
|
$
|
0.25
|
|
2nd
|
|
|
0.26
|
|
|
|
0.25
|
|
3rd
|
|
|
0.26
|
|
|
|
0.25
|
|
4th
|
|
|
0.26
|
|
|
|
0.25
|
|
ITEM
6.
|
SELECTED
FINANCIAL DATA
|
|
Year
Ended December 31
|
|
||||||||||||||||||
(dollars
in thousands, except per share amounts)
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|
2003
|
|
|
2002
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
STATEMENT
OF INCOME DATA
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
income
|
|
$
|
44,296
|
|
|
$
|
41,306
|
|
|
$
|
37,354
|
|
|
$
|
35,314
|
|
|
$
|
36,270
|
|
Interest
expense
|
|
|
21,306
|
|
|
|
15,933
|
|
|
|
10,564
|
|
|
|
10,339
|
|
|
|
11,663
|
|
Net
interest income
|
|
|
22,990
|
|
|
|
25,373
|
|
|
|
26,790
|
|
|
|
24,975
|
|
|
|
24,607
|
|
Provision
(credit) for loan losses
|
|
|
(183
|
)
|
|
|
331
|
|
|
|
479
|
|
|
|
645
|
|
|
|
688
|
|
Net
interest income after provision (credit) for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
loan
losses
|
|
|
23,173
|
|
|
|
25,042
|
|
|
|
26,311
|
|
|
|
24,330
|
|
|
|
23,919
|
|
Noninterest
income
|
|
|
6,674
|
|
|
|
5,613
|
|
|
|
5,269
|
|
|
|
6,435
|
|
|
|
5,135
|
|
Noninterest
expense
|
|
|
15,504
|
|
|
|
15,210
|
|
|
|
14,935
|
|
|
|
14,819
|
|
|
|
13,276
|
|
Income
before provision for income tax
|
|
|
14,343
|
|
|
|
15,445
|
|
|
|
16,645
|
|
|
|
15,946
|
|
|
|
15,778
|
|
Provision
for income tax
|
|
|
3,399
|
|
|
|
3,836
|
|
|
|
4,255
|
|
|
|
4,321
|
|
|
|
4,438
|
|
Net
Income
|
|
$
|
10,944
|
|
|
$
|
11,609
|
|
|
$
|
12,390
|
|
|
$
|
11,625
|
|
|
$
|
11,340
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|
2003
|
|
|
2002
|
|
||||||
DIVIDENDS
AND EARNINGS PER SHARE DATA
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash
dividends declared
|
|
$
|
9,801
|
|
|
$
|
9,417
|
|
|
$
|
7,590
|
|
|
$
|
7,142
|
|
|
$
|
6,820
|
|
Cash
dividends declared per share
|
|
$
|
1.04
|
|
|
$
|
1.00
|
|
|
$
|
0.81
|
|
|
$
|
0.76
|
|
|
$
|
0.73
|
|
Basic
and diluted earnings per share
|
|
$
|
1.16
|
|
|
$
|
1.23
|
|
|
$
|
1.32
|
|
|
$
|
1.24
|
|
|
$
|
1.21
|
|
Weighted
average shares outstanding
|
|
|
9,422,402
|
|
|
|
9,415,599
|
|
|
|
9,405,705
|
|
|
|
9,393,672
|
|
|
|
9,381,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
BALANCE
SHEET DATA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total
assets
|
|
$
|
838,853
|
|
|
$
|
819,384
|
|
|
$
|
839,753
|
|
|
$
|
752,786
|
|
|
$
|
677,229
|
|
Net
loans
|
|
|
429,123
|
|
|
|
440,318
|
|
|
|
411,639
|
|
|
|
355,533
|
|
|
|
329,593
|
|
Deposits
|
|
|
680,356
|
|
|
|
668,342
|
|
|
|
658,176
|
|
|
|
619,549
|
|
|
|
550,622
|
|
Stockholders'
equity
|
|
|
112,923
|
|
|
|
109,227
|
|
|
|
110,924
|
|
|
|
107,325
|
|
|
|
101,523
|
|
Equity
to assets ratio
|
|
|
13.46
|
%
|
|
|
13.33
|
%
|
|
|
13.21
|
%
|
|
|
14.26
|
%
|
|
|
14.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
FIVE
YEAR FINANCIAL PERFORMANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net
income
|
|
$
|
10,944
|
|
|
$
|
11,609
|
|
|
$
|
12,390
|
|
|
$
|
11,625
|
|
|
$
|
11,340
|
|
Average
assets
|
|
|
818,450
|
|
|
|
831,198
|
|
|
|
793,076
|
|
|
|
726,945
|
|
|
|
635,816
|
|
Average
stockholders' equity
|
|
|
109,508
|
|
|
|
109,802
|
|
|
|
108,004
|
|
|
|
104,141
|
|
|
|
98,282
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Return
on assets (net income divided by average assets)
|
|
|
1.34
|
%
|
|
|
1.40
|
%
|
|
|
1.56
|
%
|
|
|
1.60
|
%
|
|
|
1.78
|
%
|
Return
on equity (net income divided by average
equity)
|
|
|
9.99
|
%
|
|
|
10.57
|
%
|
|
|
11.47
|
%
|
|
|
11.16
|
%
|
|
|
11.54
|
%
|
Net
interest margin (net interest income divided by average earning
assets)
|
|
|
3.29
|
%
|
|
|
3.56
|
%
|
|
|
3.97
|
%
|
|
|
4.02
|
%
|
|
|
4.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Efficiency
ratio (noninterest expense divided by noninterest income plus net
interest
income)
|
|
|
52.27
|
%
|
|
|
49.09
|
%
|
|
|
46.59
|
%
|
|
|
47.18
|
%
|
|
|
44.64
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Dividend
payout ratio (dividends per share divided by net income per
share)
|
|
|
89.66
|
%
|
|
|
81.30
|
%
|
|
|
61.27
|
%
|
|
|
61.46
|
%
|
|
|
60.05
|
%
|
Dividend
yield (dividends per share divided by closing year-end market
price)
|
|
|
4.95
|
%
|
|
|
3.89
|
%
|
|
|
3.01
|
%
|
|
|
3.91
|
%
|
|
|
4.69
|
%
|
Equity
to assets ratio (average equity divided by average assets)
|
|
|
13.38
|
%
|
|
|
13.21
|
%
|
|
|
13.62
|
%
|
|
|
14.33
|
%
|
|
|
15.46
|
%
|
ITEM
7.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
|
·
|
Challenges
|
|
·
|
Key
Performance Indicators
|
|
·
|
Industry
Results
|
|
·
|
Income
Statement Review
|
|
·
|
Balance
Sheet Review
|
|
·
|
Asset
Quality and Credit Risk Management
|
|
·
|
Liquidity
and Capital Resources
|
|
·
|
Interest
Rate Risk
|
|
·
|
Inflation
|
|
·
|
Forward-Looking
Statements
|
|
·
|
Short-term
interest rates have increased significantly since June of 2004 while
longer term rates (10 to 20 years) are relatively unchanged since
2004. This movement in short-term rates has caused the yield
curve to be flat or slightly inverted for most of 2006. Banks
have historically earned higher levels of net interest income by
investing
in longer term loans and investments at higher yields and paying
lower
deposit expense rates on shorter maturity deposits. If the
yield curve remains flat or inverted in 2007, the Company’s net interest
margin may continue to compress.
|
|
·
|
Rising
interest rates will present a challenge to the Company in
2007. Continued increases in interest rates may negatively
impact the Company’s net interest margin if interest expense increases
more quickly than interest income. 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 earning 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,
investment and insurance companies competing for similar business
opportunities. This competitive environment will continue to
put downward pressure on the Banks’ net interest margins and thus affect
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
substandard performance in the Company’s equity portfolio could lead to a
reduction in the historical level of realized security gains, thereby
negatively impacting the Company’s earnings. The Company
invests capital that may be utilized for future expansion in a portfolio
of primarily financial and utility stocks with an estimated fair
market
value of approximately $24 million as of December 31, 2006. The
Company focuses on stocks that have historically paid dividends in
an
effort to lessen the negative effects of a bear
market.
|
|
Year
Ended December 31,
|
|
||||||||||||||||||||||
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||||||||||||||
|
Company
|
|
|
Industry
|
|
|
Company
|
|
|
Industry
|
|
|
Company
|
|
|
Industry
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Return
on assets
|
|
|
1.34
|
%
|
|
|
1.28
|
%
|
|
|
1.40
|
%
|
|
|
1.28
|
%
|
|
|
1.56
|
%
|
|
|
1.29
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Return
on equity
|
|
|
9.99
|
%
|
|
|
12.34
|
%
|
|
|
10.57
|
%
|
|
|
12.46
|
%
|
|
|
11.47
|
%
|
|
|
13.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net
interest margin
|
|
|
3.29
|
%
|
|
|
3.31
|
%
|
|
|
3.56
|
%
|
|
|
3.49
|
%
|
|
|
3.97
|
%
|
|
|
3.53
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Efficiency
ratio
|
|
|
52.27
|
%
|
|
|
56.79
|
%
|
|
|
49.09
|
%
|
|
|
57.24
|
%
|
|
|
46.59
|
%
|
|
|
58.03
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Capital
ratio
|
|
|
13.38
|
%
|
|
|
8.23
|
%
|
|
|
13.21
|
%
|
|
|
8.25
|
%
|
|
|
13.62
|
%
|
|
|
8.12
|
%
|
|
·
|
Return
on Assets
|
|
·
|
Return
on Equity
|
|
·
|
Net
Interest Margin
|
|
·
|
Efficiency
Ratio
|
|
·
|
Capital
Ratio
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||||||||||||||||||||||||||
|
Average
balance
|
|
|
Revenue
|
|
|
Yield
|
|
|
Average
balance
|
|
|
Revenue
|
|
|
Yield
|
|
|
Average
balance
|
|
|
Revenue
|
|
|
Yield
|
|
||||||||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest-earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Loans
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Commercial
|
|
$
|
70,581
|
|
|
$
|
5,490
|
|
|
|
7.78
|
%
|
|
$
|
66,581
|
|
|
$
|
4,286
|
|
|
|
6.44
|
%
|
|
$
|
48,775
|
|
|
$
|
2,548
|
|
|
|
5.22
|
%
|
Agricultural
|
|
|
33,054
|
|
|
|
2,758
|
|
|
|
8.34
|
%
|
|
|
29,772
|
|
|
|
2,143
|
|
|
|
7.20
|
%
|
|
|
28,406
|
|
|
|
1,839
|
|
|
|
6.47
|
%
|
Real
estate
|
|
|
306,991
|
|
|
|
19,655
|
|
|
|
6.40
|
%
|
|
|
310,438
|
|
|
|
18,912
|
|
|
|
6.09
|
%
|
|
|
285,087
|
|
|
|
17,169
|
|
|
|
6.02
|
%
|
Consumer
and other
|
|
|
27,540
|
|
|
|
1,691
|
|
|
|
6.14
|
%
|
|
|
29,206
|
|
|
|
1,638
|
|
|
|
5.61
|
%
|
|
|
23,079
|
|
|
|
1,317
|
|
|
|
5.71
|
%
|
Total
loans (including fees)
|
|
$
|
438,166
|
|
|
$
|
29,594
|
|
|
|
6.75
|
%
|
|
$
|
435,997
|
|
|
$
|
26,979
|
|
|
|
6.19
|
%
|
|
$
|
385,347
|
|
|
$
|
22,873
|
|
|
|
5.94
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Taxable
|
|
$
|
212,897
|
|
|
$
|
9,195
|
|
|
|
4.32
|
%
|
|
$
|
216,785
|
|
|
$
|
8,823
|
|
|
|
4.07
|
%
|
|
$
|
213,043
|
|
|
$
|
8,911
|
|
|
|
4.18
|
%
|
Tax-exempt
2
|
|
|
123,427
|
|
|
|
7,913
|
|
|
|
6.41
|
%
|
|
|
126,323
|
|
|
|
8,006
|
|
|
|
6.34
|
%
|
|
|
127,048
|
|
|
|
8,125
|
|
|
|
6.40
|
%
|
Total
investment securities
|
|
$
|
336,324
|
|
|
$
|
17,108
|
|
|
|
5.09
|
%
|
|
$
|
343,108
|
|
|
$
|
16,829
|
|
|
|
4.90
|
%
|
|
$
|
340,091
|
|
|
$
|
17,036
|
|
|
|
5.01
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
bearing deposits with banks
|
|
$
|
4,114
|
|
|
$
|
139
|
|
|
|
3.38
|
%
|
|
$
|
7,037
|
|
|
$
|
169
|
|
|
|
2.40
|
%
|
|
$
|
8,713
|
|
|
$
|
130
|
|
|
|
1.49
|
%
|
Federal
funds sold
|
|
|
4,229
|
|
|
|
224
|
|
|
|
5.30
|
%
|
|
|
4,833
|
|
|
|
131
|
|
|
|
2.71
|
%
|
|
|
11,630
|
|
|
|
159
|
|
|
|
1.37
|
%
|
Total
Interest-earning assets
|
|
$
|
782,833
|
|
|
$
|
47,065
|
|
|
|
6.01
|
%
|
|
$
|
790,975
|
|
|
$
|
44,108
|
|
|
|
5.58
|
%
|
|
$
|
745,781
|
|
|
$
|
40,198
|
|
|
|
5.39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-earning
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cash
and due from banks
|
|
$
|
17,056
|
|
|
|
|
|
|
|
|
$
|
22,885
|
|
|
|
|
|
|
|
|
$
|
27,581
|
|
|
|
|
|
|
|
||||||
Premises
and equipment, net
|
|
|
11,005
|
|
|
|
|
|
|
|
|
|
9,229
|
|
|
|
|
|
|
|
|
|
8,517
|
|
|
|
|
|
|
|
||||||
Other,
less allowance for loan losses
|
|
|
7,556
|
|
|
|
|
|
|
|
|
|
8,109
|
|
|
|
|
|
|
|
|
|
11,197
|
|
|
|
|
|
|
|
||||||
Total
noninterest-earning assets
|
|
$
|
35,617
|
|
|
|
|
|
|
|
|
$
|
40,223
|
|
|
|
|
|
|
|
|
$
|
47,295
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
TOTAL
ASSETS
|
|
$
|
818,450
|
|
|
|
|
|
|
|
|
$
|
831,198
|
|
|
|
|
|
|
|
|
$
|
793,076
|
|
|
|
|
|
|
|
1
|
Average
loan balance includes nonaccrual loans, if any. Interest income
collected 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%.
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||||||||||||||||||||||||||
|
Average
balance
|
|
|
Revenue/
expense
|
|
|
Yield/
rate
|
|
|
Average
balance
|
|
|
Revenue/
expense
|
|
|
Yield/
rate
|
|
|
Average
balance
|
|
|
Revenue/
expense
|
|
|
Yield/
rate
|
|
||||||||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Savings,
NOW accounts, and money markets
|
|
$
|
314,567
|
|
|
$
|
8,250
|
|
|
|
2.62
|
%
|
|
$
|
323,334
|
|
|
$
|
5,757
|
|
|
|
1.78
|
%
|
|
$
|
329,410
|
|
|
$
|
3,210
|
|
|
|
0.97
|
%
|
Time
deposits < $100,000
|
|
|
182,241
|
|
|
|
7,071
|
|
|
|
3.88
|
%
|
|
|
173,966
|
|
|
|
5,530
|
|
|
|
3.18
|
%
|
|
|
173,581
|
|
|
|
4,974
|
|
|
|
2.87
|
%
|
Time
deposits> $100,000
|
|
|
99,123
|
|
|
|
4,422
|
|
|
|
4.46
|
%
|
|
|
90,687
|
|
|
|
3,095
|
|
|
|
3.41
|
%
|
|
|
70,076
|
|
|
|
1,759
|
|
|
|
2.51
|
%
|
Total
deposits
|
|
$
|
595,931
|
|
|
$
|
19,743
|
|
|
|
3.31
|
%
|
|
$
|
587,987
|
|
|
$
|
14,382
|
|
|
|
2.45
|
%
|
|
$
|
573,067
|
|
|
$
|
9,943
|
|
|
|
1.74
|
%
|
Other
borrowed funds
|
|
|
36,388
|
|
|
|
1,563
|
|
|
|
4.30
|
%
|
|
|
56,443
|
|
|
|
1,551
|
|
|
|
2.75
|
%
|
|
|
38,211
|
|
|
|
620
|
|
|
|
1.62
|
%
|
Total
Interest-bearing liabilities
|
|
$
|
632,319
|
|
|
$
|
21,306
|
|
|
|
3.37
|
%
|
|
$
|
644,430
|
|
|
$
|
15,933
|
|
|
|
2.47
|
%
|
|
$
|
611,278
|
|
|
$
|
10,563
|
|
|
|
1.73
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand
deposits
|
|
$
|
70,095
|
|
|
|
|
|
|
|
|
$
|
69,577
|
|
|
|
|
|
|
|
|
$
|
65,785
|
|
|
|
|
|
|
|
||||||
Other
liabilities
|
|
|
6,528
|
|
|
|
|
|
|
|
|
|
7,389
|
|
|
|
|
|
|
|
|
|
8,009
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders'
equity
|
|
$
|
109,508
|
|
|
|
|
|
|
|
|
$
|
109,802
|
|
|
|
|
|
|
|
|
$
|
108,004
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
818,450
|
|
|
|
|
|
|
|
|
$
|
831,198
|
|
|
|
|
|
|
|
|
$
|
793,076
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net
interest income
|
|
|
|
|
$
|
25,759
|
|
|
|
3.29
|
%
|
|
|
|
|
$
|
28,177
|
|
|
|
3.56
|
%
|
|
|
|
|
$
|
29,635
|
|
|
|
3.97
|
%
|
|||
Spread
Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Interest
income/average assets
|
|
|
|
|
$
|
47,065
|
|
|
|
5.75
|
%
|
|
|
|
|
$
|
44,108
|
|
|
|
5.31
|
%
|
|
|
|
|
$
|
40,198
|
|
|
|
5.07
|
%
|
|||
Interest
expense/average assets
|
|
|
|
|
|
21,306
|
|
|
|
2.60
|
%
|
|
|
|
|
|
15,931
|
|
|
|
1.92
|
%
|
|
|
|
|
|
10,563
|
|
|
|
1.33
|
%
|
|||
Net
interest income/average assets
|
|
|
|
|
|
25,759
|
|
|
|
3.15
|
%
|
|
|
|
|
|
28,177
|
|
|
|
3.39
|
%
|
|
|
|
|
|
29,635
|
|
|
|
3.74
|
%
|
(dollars
in thousands)
|
|
2006
Compared to 2005
|
|
|
2005
Compared to 2004
|
|
||||||||||||||||||
|
Volume
|
|
|
Rate
|
|
|
Total 1
|
|
|
Volume
|
|
|
Rate
|
|
|
Total
|
|
|||||||
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commercial
|
|
$
|
270
|
|
|
$
|
934
|
|
|
$
|
1,204
|
|
|
$
|
1,060
|
|
|
$
|
678
|
|
|
$
|
1,738
|
|
Agricultural
|
|
|
253
|
|
|
|
362
|
|
|
|
615
|
|
|
|
91
|
|
|
|
213
|
|
|
|
304
|
|
Real
estate
|
|
|
(212
|
)
|
|
|
955
|
|
|
|
743
|
|
|
|
1,541
|
|
|
|
202
|
|
|
|
1,743
|
|
Consumer
and other
|
|
|
(97
|
)
|
|
|
150
|
|
|
|
53
|
|
|
|
344
|
|
|
|
(23
|
)
|
|
|
321
|
|
Total
loans (including fees)
|
|
$
|
214
|
|
|
$
|
2,401
|
|
|
$
|
2,615
|
|
|
$
|
3,036
|
|
|
$
|
1,070
|
|
|
$
|
4,106
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Investment
securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxable
|
|
$
|
(161
|
)
|
|
$
|
533
|
|
|
$
|
372
|
|
|
$
|
152
|
|
|
$
|
(240
|
)
|
|
$
|
(88
|
)
|
Tax-exempt
|
|
|
(182
|
)
|
|
|
89
|
|
|
|
(93
|
)
|
|
|
(45
|
)
|
|
|
(74
|
)
|
|
|
(119
|
)
|
Total
investment securities
|
|
$
|
(343
|
)
|
|
$
|
622
|
|
|
|
279
|
|
|
$
|
107
|
|
|
$
|
(314
|
)
|
|
$
|
(207
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest
bearing deposits with banks
|
|
$
|
(84
|
)
|
|
$
|
53
|
|
|
$
|
(31
|
)
|
|
$
|
(29
|
)
|
|
$
|
68
|
|
|
$
|
39
|
|
Federal
funds sold
|
|
|
(18
|
)
|
|
|
112
|
|
|
|
94
|
|
|
|
(127
|
)
|
|
|
99
|
|
|
|
(28
|
)
|
Total
Interest-earning assets
|
|
$
|
(231
|
)
|
|
$
|
3,188
|
|
|
$
|
2,957
|
|
|
$
|
2,987
|
|
|
$
|
923
|
|
|
$
|
3,910
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Interest-bearing
liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Deposits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Savings,
NOW accounts, and money markets
|
|
$
|
(160
|
)
|
|
$
|
2,653
|
|
|
$
|
2,493
|
|
|
$
|
(60
|
)
|
|
$
|
2,605
|
|
|
$
|
2,545
|
|
Time
deposits < $100,000
|
|
|
274
|
|
|
|
1,267
|
|
|
|
1,541
|
|
|
|
12
|
|
|
|
544
|
|
|
|
556
|
|
Time
deposits> $100,000
|
|
|
308
|
|
|
|
1,020
|
|
|
|
1,328
|
|
|
|
602
|
|
|
|
734
|
|
|
|
1,336
|
|
Total
deposits
|
|
$
|
422
|
|
|
$
|
4,940
|
|
|
$
|
5,362
|
|
|
$
|
554
|
|
|
$
|
3,883
|
|
|
$
|
4,437
|
|
Other
borrowed funds
|
|
|
(672
|
)
|
|
|
683
|
|
|
|
11
|
|
|
|
378
|
|
|
|
553
|
|
|
|
931
|
|
Total
Interest-bearing liabilities
|
|
$
|
(250
|
)
|
|
$
|
5,623
|
|
|
$
|
5,373
|
|
|
$
|
932
|
|
|
$
|
4,436
|
|
|
$
|
5,368
|
|
Net
interest income/earning assets
|
|
$
|
19
|
|
|
$
|
(2,435
|
)
|
|
$
|
(2,416
|
)
|
|
$
|
2,055
|
|
|
$
|
(3,513
|
)
|
|
$
|
(1,458
|
)
|
1
|
The
change in interest due to both volume and yield/rate has been allocated
to
change due to volume and change ue to yield/rate in proportion to
the
absolute value of the change in
each.
|
(dollars
in thousands)
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|
2003
|
|
|
2002
|
|
|||||
Real
Estate
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Construction
|
|
$
|
30,600
|
|
|
$
|
23,973
|
|
|
$
|
21,042
|
|
|
$
|
13,126
|
|
|
$
|
13,518
|
|
1-4
family residential
|
|
|
103,620
|
|
|
|
102,043
|
|
|
|
97,612
|
|
|
|
84,645
|
|
|
|
81,239
|
|
Commercial
|
|
|
139,149
|
|
|
|
153,920
|
|
|
|
160,176
|
|
|
|
150,723
|
|
|
|
136,351
|
|
Agricultural
|
|
|
31,092
|
|
|
|
30,606
|
|
|
|
27,443
|
|
|
|
24,297
|
|
|
|
21,693
|
|
Commercial
|
|
|
73,760
|
|
|
|
71,430
|
|
|
|
57,189
|
|
|
|
38,555
|
|
|
|
40,097
|
|
Agricultural
|
|
|
33,434
|
|
|
|
32,216
|
|
|
|
30,713
|
|
|
|
27,815
|
|
|
|
26,022
|
|
Consumer
and other
|
|
|
24,276
|
|
|
|
33,340
|
|
|
|
24,584
|
|
|
|
23,242
|
|
|
|
19,921
|
|
Total
loans
|
|
|
435,931
|
|
|
|
447,528
|
|
|
|
418,759
|
|
|
|
362,403
|
|
|
|
338,841
|
|
Deferred
loan fees, net
|
|
|
276
|
|
|
|
445
|
|
|
|
644
|
|
|
|
819
|
|
|
|
777
|
|
Total
loans net of deferred fees
|
|
$
|
435,655
|
|
|
$
|
447,083
|
|
|
$
|
418,115
|
|
|
$
|
361,584
|
|
|
$
|
338,064
|
|
|
Within
one
year
|
|
|
After
one
year
but
within
five
years
|
|
|
After
five
years
|
|
|
Total
|
|
|||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||
Real
Estate
|
|
|
|
|
|
|
|
|
||||||||
Construction
|
|
$
|
24,304
|
|
|
$
|
5,823
|
|
|
$
|
473
|
|
|
$
|
30,600
|
|
1-4
family residential
|
|
|
6,129
|
|
|
|
45,227
|
|
|
|
52,264
|
|
|
|
103,620
|
|
Commercial
|
|
|
23,027
|
|
|
|
88,078
|
|
|
|
28,044
|
|
|
|
139,149
|
|
Agricultural
|
|
|
2,528
|
|
|
|
5,105
|
|
|
|
23,459
|
|
|
|
31,092
|
|
Commercial
|
|
|
30,653
|
|
|
|
34,349
|
|
|
|
8,758
|
|
|
|
73,760
|
|
Agricultural
|
|
|
22,310
|
|
|
|
9,769
|
|
|
|
1,355
|
|
|
|
33,434
|
|
Consumer
and other
|
|
|
4,212
|
|
|
|
16,365
|
|
|
|
3,699
|
|
|
|
24,276
|
|
Total
loans
|
|
$
|
113,163
|
|
|
$
|
204,716
|
|
|
$
|
118,052
|
|
|
$
|
435,931
|
|
|
After
one
year
but
within
five
years
|
|
|
After
five
years
|
|
|||
Loan
maturities after one year with:
|
|
|
|
|
||||
Fixed
rates
|
|
$
|
175,326
|
|
|
$
|
24,159
|
|
Variable
rates
|
|
|
29,390
|
|
|
|
93,893
|
|
|
$
|
204,716
|
|
|
$
|
118,052
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
(dollars
in thousands)
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|||||||
U.S.
treasury securities
|
|
$
|
509
|
|
|
$
|
516
|
|
|
$
|
531
|
|
U.S.
government agencies
|
|
|
139,745
|
|
|
|
134,288
|
|
|
|
137,634
|
|
States
and political subdivisions
|
|
|
119,908
|
|
|
|
108,373
|
|
|
|
113,818
|
|
Corporate
bonds
|
|
|
60,624
|
|
|
|
59,567
|
|
|
|
77,573
|
|
Equity
securities
|
|
|
33,786
|
|
|
|
30,766
|
|
|
|
33,904
|
|
Total
|
|
$
|
354,572
|
|
|
$
|
333,510
|
|
|
$
|
363,460
|
|
|
Within
one
year
|
|
|
After
one
year
but
within
five
years
|
|
|
After
five
years
but
within
ten
years
|
|
|
After
ten
years
|
|
|
Total
|
|
||||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S.
treasury securities
|
|
|
-
|
|
|
$
|
509
|
|
|
|
-
|
|
|
|
-
|
|
|
$
|
509
|
|
U.S.
government agencies
|
|
$
|
39,959
|
|
|
|
65,484
|
|
|
$
|
26,273
|
|
|
$
|
3,441
|
|
|
|
139,745
|
|
States
and political subdivisions
|
|
|
15,763
|
|
|
|
38,733
|
|
|
|
56,692
|
|
|
|
13,307
|
|
|
|
124,495
|
|
Corporate
bonds
|
|
|
10,246
|
|
|
|
35,366
|
|
|
|
15,012
|
|
|
|
-
|
|
|
|
60,624
|
|
Total
|
|
$
|
65,968
|
|
|
$
|
140,092
|
|
|
$
|
97,977
|
|
|
$
|
16,748
|
|
|
$
|
320,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted
average yield
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
U.S.
treasury
|
|
|
-
|
|
|
|
5.20
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
5.20
|
%
|
U.S.
government agencies
|
|
|
3.36
|
%
|
|
|
4.22
|
%
|
|
|
6.43
|
%
|
|
|
6.38
|
%
|
|
|
4.21
|
%
|
States
and political subdivisions*
|
|
|
5.40
|
%
|
|
|
6.14
|
%
|
|
|
6.45
|
%
|
|
|
6.33
|
%
|
|
|
6.21
|
%
|
Corporate
bonds
|
|
|
3.88
|
%
|
|
|
5.28
|
%
|
|
|
5.92
|
%
|
|
|
-
|
|
|
|
5.20
|
%
|
Total
|
|
|
3.93
|
%
|
|
|
5.02
|
%
|
|
|
6.36
|
%
|
|
|
6.34
|
%
|
|
|
5.24
|
%
|
*
|
Yields
on tax-exempt obligations of states and political subdivisions have
been
computed on a tax-equivalent basis.
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||||||||||||||
|
Amount
|
|
|
Rate
|
|
|
Amount
|
|
|
Rate
|
|
|
Amount
|
|
|
Rate
|
|
|||||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Noninterest
bearing demand deposits
|
|
$
|
70,095
|
|
|
|
-
|
|
|
$
|
69,577
|
|
|
|
-
|
|
|
$
|
65,785
|
|
|
|
-
|
|
Interest
bearing demand deposits
|
|
|
153,619
|
|
|
|
2.44
|
%
|
|
|
154,156
|
|
|
|
1.63
|
%
|
|
|
154,332
|
|
|
|
0.80
|
%
|
Money
market deposits
|
|
|
134,078
|
|
|
|
3.16
|
%
|
|
|
141,492
|
|
|
|
2.12
|
%
|
|
|
146,479
|
|
|
|
1.25
|
%
|
Savings
deposits
|
|
|
26,870
|
|
|
|
0.99
|
%
|
|
|
27,686
|
|
|
|
0.90
|
%
|
|
|
28,599
|
|
|
|
0.47
|
%
|
Time
certificates < $100,000
|
|
|
182,241
|
|
|
|
3.88
|
%
|
|
|
173,966
|
|
|
|
3.18
|
%
|
|
|
173,581
|
|
|
|
2.87
|
%
|
Time
certificates> $100,000
|
|
|
99,123
|
|
|
|
4.46
|
%
|
|
|
90,687
|
|
|
|
3.41
|
%
|
|
|
70,076
|
|
|
|
2.51
|
%
|
|
$
|
666,026
|
|
|
|
|
|
$
|
657,564
|
|
|
|
|
|
$
|
638,852
|
|
|
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
(dollars
in thousands)
|
|
|
|
|
|
|
||||||
3
months or less
|
|
$
|
33,393
|
|
|
$
|
25,933
|
|
|
$
|
20,613
|
|
Over
3 through 12 months
|
|
|
45,898
|
|
|
|
47,279
|
|
|
|
29,217
|
|
Over
12 through 36 months
|
|
|
20,047
|
|
|
|
26,431
|
|
|
|
17,131
|
|
Over
36 months
|
|
|
2,893
|
|
|
|
1,399
|
|
|
|
2,103
|
|
Total
|
|
$
|
102,231
|
|
|
$
|
101,042
|
|
|
$
|
69,064
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||||||||||||||
|
Balance
|
|
|
Average
Rate
|
|
|
Balance
|
|
|
Average
Rate
|
|
|
Balance
|
|
|
Average
Rate
|
|
|||||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Federal
funds purchased and repurchase agreements
|
|
$
|
34,728
|
|
|
|
4.42
|
%
|
|
$
|
34,660
|
|
|
|
3.38
|
%
|
|
$
|
64,072
|
|
|
|
1.99
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other
short-term borrowings
|
|
|
1,470
|
|
|
|
4.92
|
%
|
|
|
2,861
|
|
|
|
4.52
|
%
|
|
$
|
-
|
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
FHLB
term advances
|
|
|
2,000
|
|
|
|
5.03
|
%
|
|
|
-
|
|
|
|
-
|
%
|
|
|
-
|
|
|
|
-
|
%
|
Total
|
|
$
|
38,198
|
|
|
|
4.47
|
%
|
|
$
|
37,521
|
|
|
|
3.46
|
%
|
|
$
|
64,072
|
|
|
|
1.99
|
%
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||||||||||||||
|
Average
Balance
|
|
|
Average
Rate
|
|
|
Average
Balance
|
|
|
Average
Rate
|
|
|
Average
Balance
|
|
|
Average
Rate
|
|
|||||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Federal
funds purchased & repurchase agreements
|
|
$
|
34,692
|
|
|
|
4.24
|
%
|
|
$
|
55,337
|
|
|
|
2.72
|
%
|
|
$
|
38,211
|
|
|
|
1.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other
short-term borrowings
|
|
|
1,029
|
|
|
|
5.73
|
%
|
|
|
1,096
|
|
|
|
4.29
|
%
|
|
|
-
|
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
FHLB
term advances
|
|
|
667
|
|
|
|
5.03
|
%
|
|
|
-
|
|
|
|
-
|
%
|
|
|
-
|
|
|
|
-
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total
|
|
$
|
36,388
|
|
|
|
4.30
|
%
|
|
$
|
56,443
|
|
|
|
2.75
|
%
|
|
$
|
38,211
|
|
|
|
1.62
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Maximum
Amount Outstanding during the year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Federal
funds purchased and repurchase agreements
|
|
$
|
44,928
|
|
|
|
|
|
$
|
70,489
|
|
|
|
|
|
$
|
65,391
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Other
short-term borrowings
|
|
|
2,415
|
|
|
|
|
|
$
|
5,000
|
|
|
|
|
|
|
-
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
FHLB
term advances
|
|
|
2,000
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
Payments
due by period
|
|
||||||||||||||||
Contractual
Obligations
|
|
Total
|
|
|
Less
than
1
year
|
|
|
1-3
years
|
|
|
3-5
years
|
|
|
More
than
5
years
|
|
|||||
Deposits
|
|
$
|
680,356
|
|
|
$
|
608,990
|
|
|
$
|
67,236
|
|
|
$
|
4,130
|
|
|
$
|
-
|
|
Other
Borrowings
|
|
|
38,198
|
|
|
|
36,198
|
|
|
|
-
|
|
|
|
2,000
|
|
|
|
-
|
|
Operating
Lease Obligation
|
|
|
84
|
|
|
|
21
|
|
|
|
42
|
|
|
|
21
|
|
|
|
-
|
|
Purchase
Obligations
|
|
|
1,966
|
|
|
|
624
|
|
|
|
1,248
|
|
|
|
94
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total
|
|
$
|
720,604
|
|
|
$
|
645,833
|
|
|
$
|
68,526
|
|
|
$
|
6,245
|
|
|
$
|
-
|
|
(dollars
in thousands)
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|
2003
|
|
|
2002
|
|
|||||
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Nonaccrual
loans
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
90 days or more past due
|
|
$
|
291
|
|
|
$
|
606
|
|
|
$
|
1,896
|
|
|
$
|
1,756
|
|
|
$
|
2,015
|
|
and
still accruing
|
|
|
758
|
|
|
|
83
|
|
|
|
80
|
|
|
|
431
|
|
|
|
394
|
|
Total
non-performing loans
|
|
|
1,049
|
|
|
|
689
|
|
|
|
1,976
|
|
|
|
2,187
|
|
|
|
2,409
|
|
Other
real estate owned
|
|
|
2,808
|
|
|
|
1,742
|
|
|
|
772
|
|
|
|
159
|
|
|
|
295
|
|
Total
non-performing assets
|
|
$
|
3,857
|
|
|
$
|
2,431
|
|
|
$
|
2,748
|
|
|
$
|
2,346
|
|
|
$
|
2,704
|
|
(dollars
in thousands)
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|
2003
|
|
|
2002
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance
at beginning of period
|
|
$
|
6,765
|
|
|
$
|
6,476
|
|
|
$
|
6,051
|
|
|
$
|
5,758
|
|
|
$
|
5,446
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real
Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
24
|
|
|
|
-
|
|
1-4
Family Residential
|
|
|
6
|
|
|
|
-
|
|
|
|
19
|
|
|
|
5
|
|
|
|
-
|
|
Commercial
|
|
|
-
|
|
|
|
28
|
|
|
|
93
|
|
|
|
-
|
|
|
|
40
|
|
Agricultural
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Commercial
|
|
|
-
|
|
|
|
-
|
|
|
|
3
|
|
|
|
392
|
|
|
|
235
|
|
Agricultural
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Consumer
and other
|
|
|
99
|
|
|
|
119
|
|
|
|
115
|
|
|
|
43
|
|
|
|
155
|
|
|
|
105
|
|
|
|
147
|
|
|
|
230
|
|
|
|
464
|
|
|
|
430
|
|
|
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Real
Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Construction
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
1-4
Family Residential
|
|
|
1
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
20
|
|
Commercial
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Agricultural
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Commercial
|
|
|
6
|
|
|
|
33
|
|
|
|
13
|
|
|
|
100
|
|
|
|
14
|
|
Agricultural
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Consumer
and other
|
|
|
49
|
|
|
|
72
|
|
|
|
163
|
|
|
|
12
|
|
|
|
20
|
|
|
|
56
|
|
|
|
105
|
|
|
|
176
|
|
|
|
112
|
|
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Net
charge-offs
|
|
|
49
|
|
|
|
42
|
|
|
|
54
|
|
|
|
352
|
|
|
|
376
|
|
Additions
(deductions) charged (credited) to operations
|
|
|
(183
|
)
|
|
|
331
|
|
|
|
479
|
|
|
|
645
|
|
|
|
688
|
|
Balance
at end of period
|
|
$
|
6,533
|
|
|
$
|
6,765
|
|
|
$
|
6,476
|
|
|
$
|
6,051
|
|
|
$
|
5,758
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Average
Loans Outstanding
|
|
$
|
438,166
|
|
|
$
|
435,997
|
|
|
$
|
385,347
|
|
|
$
|
349,812
|
|
|
$
|
317,521
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ratio
of net charge-offs during the period to average loans
outstanding
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.01
|
%
|
|
|
0.10
|
%
|
|
|
0.12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Ratio
of allowance for loan losses to total loans net of deferred
fees
|
|
|
1.50
|
%
|
|
|
1.51
|
%
|
|
|
1.55
|
%
|
|
|
1.67
|
%
|
|
|
1.70
|
%
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|
2003
|
|
|
2002
|
|
||||||||||||||||||||||||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
Amount
|
|
|
%*
|
|
|
Amount
|
|
|
%*
|
|
|
Amount
|
|
|
%*
|
|
|
Amount
|
|
|
%*
|
|
|
Amount
|
|
|
%*
|
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Balance
at end of period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
applicable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Real
Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
$
|
372
|
|
|
|
7.02
|
%
|
|
$
|
258
|
|
|
|
5.36
|
%
|
|
$
|
429
|
|
|
|
5.02
|
%
|
|
$
|
196
|
|
|
|
3.62
|
%
|
|
$
|
210
|
|
|
|
3.99
|
%
|
1-4
family residential
|
|
|
1,231
|
|
|
|
23.77
|
%
|
|
|
1,127
|
|
|
|
22.80
|
%
|
|
|
1,021
|
|
|
|
23.31
|
%
|
|
|
948
|
|
|
|
23.36
|
%
|
|
|
892
|
|
|
|
23.98
|
%
|
Commercial
|
|
|
2,396
|
|
|
|
31.92
|
%
|
|
|
2,534
|
|
|
|
34.39
|
%
|
|
|
2,676
|
|
|
|
38.25
|
%
|
|
|
2,663
|
|
|
|
41.59
|
%
|
|
|
2,453
|
|
|
|
40.24
|
%
|
Agricultural
|
|
|
428
|
|
|
|
7.13
|
%
|
|
|
421
|
|
|
|
6.84
|
%
|
|
|
486
|
|
|
|
6.55
|
%
|
|
|
458
|
|
|
|
6.70
|
%
|
|
|
302
|
|
|
|
6.40
|
%
|
Commercial
|
|
|
983
|
|
|
|
16.92
|
%
|
|
|
1,158
|
|
|
|
15.96
|
%
|
|
|
809
|
|
|
|
13.66
|
%
|
|
|
775
|
|
|
|
10.64
|
%
|
|
|
910
|
|
|
|
11.83
|
%
|
Agricultural
|
|
|
499
|
|
|
|
7.67
|
%
|
|
|
511
|
|
|
|
7.20
|
%
|
|
|
360
|
|
|
|
7.33
|
%
|
|
|
488
|
|
|
|
7.68
|
%
|
|
|
504
|
|
|
|
7.68
|
%
|
Consumer
and other
|
|
|
276
|
|
|
|
5.57
|
%
|
|
|
390
|
|
|
|
7.45
|
%
|
|
|
302
|
|
|
|
5.87
|
%
|
|
|
255
|
|
|
|
6.41
|
%
|
|
|
235
|
|
|
|
5.88
|
%
|
Unallocated
|
|
|
348
|
|
|
|
|
|
|
366
|
|
|
|
|
|
|
393
|
|
|
|
|
|
|
268
|
|
|
|
|
|
|
252
|
|
|
|
|
|||||
|
$
|
6,533
|
|
|
|
100
|
%
|
|
$
|
6,765
|
|
|
|
100
|
%
|
|
$
|
6,476
|
|
|
|
100
|
%
|
|
$
|
6,051
|
|
|
|
100
|
%
|
|
$
|
5,758
|
|
|
|
100
|
%
|
*
|
Percent
of loans in each category to total
loans.
|
|
·
|
Review
of the Company’s Current Liquidity
Sources
|
|
·
|
Review
of the Consolidated Statements of Cash
Flows
|
|
·
|
Review
of Company Only Cash Flows
|
|
·
|
Review
of Commitments for Capital Expenditures, Cash Flow Uncertainties
and Known
Trends in Liquidity and Cash Flows
Needs
|
|
·
|
Capital
Resources
|
ITEM
7A.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
|
$
Change
|
|
|
%
Change
|
|
|||
(dollars
in thousands)
|
|
|
|
|
||||
+200
Basis Points
|
|
|
-2,417
|
|
|
|
-10.4
|
%
|
+100
Basis Points
|
|
|
-1,164
|
|
|
|
-5.0
|
%
|
-100
Basis Points
|
|
|
1,664
|
|
|
|
7.1
|
%
|
-200
Basis Points
|
|
|
2,832
|
|
|
|
12.1
|
%
|
|
Less
than
three
months
|
|
|
Three
months
to
one
year
|
|
|
One
to
five
years
|
|
|
Over
five
years
|
|
|
Cumulative
Total
|
|
||||||
(dollars
in thousands)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Interest
- earning assets
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest
- bearing deposits with banks
|
|
$
|
1,144
|
|
|
$
|
400
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
1,544
|
|
Federal
funds sold
|
|
|
13,100
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
13,100
|
|
Investments
*
|
|
|
6,787
|
|
|
|
59,181
|
|
|
|
140,092
|
|
|
|
148,512
|
|
|
|
354,572
|
|
Loans
|
|
|
92,579
|
|
|
|
62,836
|
|
|
|
245,474
|
|
|
|
35,043
|
|
|
|
435,932
|
|
Loans
held for sale
|
|
|
526
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
526
|
|
Total
interest - earning assets
|
|
$
|
114,136
|
|
|
$
|
122,417
|
|
|
$
|
385,566
|
|
|
$
|
183,555
|
|
|
$
|
805,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest
- bearing liabilities Interest bearing demand deposits
|
|
$
|
158,584
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
158,584
|
|
Money
market and savings deposits
|
|
|
159,402
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
159,402
|
|
Time
certificates < $100,000
|
|
|
40,231
|
|
|
|
93,844
|
|
|
|
48,427
|
|
|
|
-
|
|
|
|
182,502
|
|
Time
certificates> $100,000
|
|
|
33,393
|
|
|
|
45,898
|
|
|
|
22,940
|
|
|
|
-
|
|
|
|
102,231
|
|
Other
borrowed funds
|
|
|
36,198
|
|
|
|
-
|
|
|
|
2,000
|
|
|
|
-
|
|
|
|
38,198
|
|
Total
interest - bearing liabilities
|
|
$
|
427,808
|
|
|
$
|
139,742
|
|
|
$
|
73,367
|
|
|
|
-
|
|
|
$
|
640,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest
sensitivity gap
|
|
$
|
(313,672
|
)
|
|
$
|
(17,325
|
)
|
|
$
|
312,199
|
|
|
$
|
183,555
|
|
|
$
|
164,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cumulative
interest sensitivity gap
|
|
$
|
(313,672
|
)
|
|
$
|
(330,997
|
)
|
|
$
|
(18,798
|
)
|
|
$
|
164,757
|
|
|
$
|
164,757
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cumulative
interest sensitivity gap as a percent of total assets
|
|
|
-37.39
|
%
|
|
|
-39.46
|
%
|
|
|
-2.24
|
%
|
|
|
19.64
|
%
|
|
|
|
*
|
Investments
with maturities over 5 years include the market value of equity securities
of $33,787.
|
ITEM
8.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTARY
DATA
|
/s/
Daniel L. Krieger
|
|
Daniel
L. Krieger, Chairman and President
|
|
(Principal
Executive Officer)
|
|
/s/
John P. Nelson
|
|
John
P. Nelson, Vice President
|
|
(Principal
Financial Officer)
|
|
|
|
|
|||||
ASSETS
|
|
2006
|
|
|
2005
|
|
||
|
|
|
|
|||||
Cash
and due from banks
|
|
$
|
16,510,082
|
|
|
$
|
18,092,139
|
|
Federal
funds sold
|
|
|
13,100,000
|
|
|
|
300,000
|
|
Interest
bearing deposits in financial institutions
|
|
|
1,544,306
|
|
|
|
5,983,542
|
|
Securities
available-for-sale
|
|
|
354,571,864
|
|
|
|
333,510,152
|
|
Loans
receivable, net
|
|
|
429,122,541
|
|
|
|
440,317,685
|
|
Loans
held for sale
|
|
|
525,999
|
|
|
|
981,280
|
|
Bank
premises and equipment, net
|
|
|
12,617,741
|
|
|
|
11,030,840
|
|
Accrued
income receivable
|
|
|
7,871,365
|
|
|
|
6,633,795
|
|
Deferred
income taxes
|
|
|
-
|
|
|
|
343,989
|
|
Other
assets
|
|
|
2,989,090
|
|
|
|
2,190,652
|
|
|
|
|
|
|
|
|||
Total
assets
|
|
$
|
838,852,988
|
|
|
$
|
819,384,074
|
|
|
|
|
|
|
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|||
LIABILITIES
|
|
|
|
|
|
|
||
Deposits
|
|
|
|
|
|
|
||
Demand,
noninterest bearing
|
|
$
|
77,638,264
|
|
|
$
|
74,155,477
|
|
NOW
accounts
|
|
|
158,584,115
|
|
|
|
151,680,984
|
|
Savings
and money market
|
|
|
159,401,753
|
|
|
|
160,998,014
|
|
Time,
$100,000 and over
|
|
|
102,230,631
|
|
|
|
101,042,024
|
|
Other
time
|
|
|
182,501,710
|
|
|
|
180,465,836
|
|
Total
deposits
|
|
|
680,356,473
|
|
|
|
668,342,335
|
|
|
|
|
|
|
|
|||
Federal
funds purchased and securities sold under agreements to
repurchase
|
|
|
34,727,897
|
|
|
|
34,659,983
|
|
Other
short-term borrowings
|
|
|
1,470,116
|
|
|
|
2,861,130
|
|
FHLB
term advances
|
|
|
2,000,000
|
|
|
|
-
|
|
Dividend
payable
|
|
|
2,450,503
|
|
|
|
2,354,818
|
|
Deferred
income taxes
|
|
|
1,187,948
|
|
|
|
-
|
|
Accrued
expenses and other liabilities
|
|
|
3,736,739
|
|
|
|
1,938,507
|
|
Total
liabilities
|
|
|
725,929,676
|
|
|
|
710,156,773
|
|
|
|
|
|
|
|
|||
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
||
Common
stock, $2 par value, authorized 18,000,000 shares; 9,425,013 and
9,419,271
shares issued and outstanding as of December 31, 2006 and 2005,
respectively
|
|
|
18,850,026
|
|
|
|
18,838,542
|
|
Additional
paid-in capital
|
|
|
22,498,904
|
|
|
|
22,383,375
|
|
Retained
earnings
|
|
|
65,856,627
|
|
|
|
64,713,530
|
|
Accumulated
other comprehensive income - net unrealized gain on securities
available-for-sale
|
|
|
5,717,755
|
|
|
|
3,291,854
|
|
Total
stockholders' equity
|
|
|
112,923,312
|
|
|
|
109,227,301
|
|
|
|
|
|
|
|
|||
Total
liabilities and stockholders' equity
|
|
$
|
838,852,988
|
|
|
$
|
819,384,074
|
|
|
|
|
|
|
|
|||||||
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|||
|
|
|
|
|
|
|||||||
Interest
and dividend income:
|
|
|
|
|
|
|
||||||
Loans,
including fees
|
|
$
|
29,593,896
|
|
|
$
|
26,979,358
|
|
|
$
|
22,872,764
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|||
Taxable
|
|
|
8,830,356
|
|
|
|
8,558,156
|
|
|
|
8,536,759
|
|
Tax-exempt
|
|
|
4,226,941
|
|
|
|
4,190,268
|
|
|
|
4,274,033
|
|
Federal
funds sold
|
|
|
224,882
|
|
|
|
130,182
|
|
|
|
159,438
|
|
Dividends
|
|
|
1,419,617
|
|
|
|
1,447,663
|
|
|
|
1,510,665
|
|
Total
interest income
|
|
|
44,295,692
|
|
|
|
41,305,627
|
|
|
|
37,353,659
|
|
Interest
expense:
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
|
19,742,379
|
|
|
|
14,380,214
|
|
|
|
9,942,250
|
|
Other
borrowed funds
|
|
|
1,563,149
|
|
|
|
1,552,894
|
|
|
|
621,077
|
|
Total
interest expense
|
|
|
21,305,528
|
|
|
|
15,933,108
|
|
|
|
10,563,327
|
|
|
|
|
|
|
|
|
|
|
||||
Net
interest income
|
|
|
22,990,164
|
|
|
|
25,372,519
|
|
|
|
26,790,332
|
|
|
|
|
|
|
|
|
|
|
||||
Provision
(credit) for loan losses
|
|
|
(182,686
|
)
|
|
|
331,282
|
|
|
|
479,355
|
|
|
|
|
|
|
|
|
|
|
||||
Net
interest income after provision (credit) for loan
losses
|
|
|
23,172,850
|
|
|
|
25,041,237
|
|
|
|
26,310,977
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest
income:
|
|
|
|
|
|
|
|
|
|
|||
Trust
department income
|
|
|
1,462,734
|
|
|
|
1,375,308
|
|
|
|
1,185,681
|
|
Service
fees
|
|
|
1,840,699
|
|
|
|
1,796,503
|
|
|
|
1,813,795
|
|
Securities
gains, net
|
|
|
1,135,136
|
|
|
|
795,780
|
|
|
|
324,030
|
|
Gain
on sales of loans held for sale
|
|
|
564,819
|
|
|
|
606,277
|
|
|
|
610,077
|
|
Merchant
and ATM fees
|
|
|
645,517
|
|
|
|
570,914
|
|
|
|
534,897
|
|
Gain
on sale or foreclosure of real estate
|
|
|
482,203
|
|
|
|
-
|
|
|
|
-
|
|
Other
|
|
|
542,924
|
|
|
|
468,410
|
|
|
|
800,835
|
|
Total
noninterest income
|
|
|
6,674,032
|
|
|
|
5,613,192
|
|
|
|
5,269,315
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest
expense:
|
|
|
|
|
|
|
|
|
|
|||
Salaries
and employee benefits
|
|
|
9,408,293
|
|
|
|
9,208,902
|
|
|
|
9,019,139
|
|
Data
processing
|
|
|
2,185,478
|
|
|
|
2,126,040
|
|
|
|
2,241,441
|
|
Occupancy
expenses
|
|
|
1,159,750
|
|
|
|
1,148,738
|
|
|
|
1,048,323
|
|
Other
operating expenses
|
|
|
2,750,341
|
|
|
|
2,726,222
|
|
|
|
2,626,451
|
|
Total
noninterest expense
|
|
|
15,503,862
|
|
|
|
15,209,902
|
|
|
|
14,935,354
|
|
|
|
|
|
|
|
|
|
|
||||
Income
before income taxes
|
|
|
14,343,020
|
|
|
|
15,444,527
|
|
|
|
16,644,938
|
|
|
|
|
|
|
|
|
|
|
||||
Provision
for income taxes
|
|
|
3,399,403
|
|
|
|
3,835,992
|
|
|
|
4,255,392
|
|
|
|
|
|
|
|
|
|
|
||||
Net
income
|
|
$
|
10,943,617
|
|
|
$
|
11,608,535
|
|
|
$
|
12,389,546
|
|
|
|
|
|
|
|
|
|
|
||||
Basic
earnings per share
|
|
$
|
1.16
|
|
|
$
|
1.23
|
|
|
$
|
1.32
|
|
|
|
|
|
|
|
|
|
|
||||
See
Notes to Consolidated Financial Statements.
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
Income
|
|
|
Common
Stock
|
|
|
Additional
Paid-in
Capital
|
|
|
Retained
Earnings
|
|
|
Treasury
Stock
|
|
|
Accumulated
Other
Comprehensive
Income
|
|
|
Total
Stockholders'
Equity
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance,
December 31, 2003
|
|
|
|
$
|
18,919,380
|
|
|
$
|
22,198,749
|
|
|
$
|
58,400,660
|
|
|
$
|
(1,109,735
|
)
|
|
$
|
8,915,941
|
|
|
$
|
107,324,995
|
|
||
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net
income
|
|
$
|
12,389,546
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,389,546
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,389,546
|
|
Other
comprehensive income, unrealized (losses) on securities, net of
reclassification adjustment, net of tax benefit
|
|
|
(1,448,229
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,448,229
|
)
|
|
|
(1,448,229
|
)
|
Total
comprehensive income
|
|
$
|
10,941,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash
dividends declared, $0.81 per share
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,589,854
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,589,854
|
)
|
|
Sale
of 12,039 shares of treasury stock
|
|
|
|
|
|
-
|
|
|
|
26,767
|
|
|
|
-
|
|
|
|
220,715
|
|
|
|
-
|
|
|
|
247,482
|
|
|
Balance,
December 31, 2004
|
|
|
|
|
|
18,919,380
|
|
|
|
22,225,516
|
|
|
|
63,200,352
|
|
|
|
(889,020
|
)
|
|
|
7,467,712
|
|
|
|
110,923,940
|
|
|
Comprehensive
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net
income
|
|
$
|
11,608,535
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,608,535
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,608,535
|
|
Other
comprehensive income, unrealized (losses) on securities, net of
reclassification adjustment, net of tax benefit
|
|
|
(4,175,858
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,175,858
|
)
|
|
|
(4,175,858
|
)
|
Total
comprehensive income
|
|
$
|
7,432,677
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash
dividends declared, $1.00 per share
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,417,253
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,417,253
|
)
|
|
Retirement
of treasury stock
|
|
|
|
|
|
(96,984
|
)
|
|
|
(113,932
|
)
|
|
|
(678,104
|
)
|
|
|
889,020
|
|
|
|
|
|
|
-
|
|
||
Sale
of 8,073 shares of common stock
|
|
|
|
|
|
16,146
|
|
|
|
271,791
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
287,937
|
|
|
Balance,
December 31, 2005
|
|
|
|
|
|
18,838,542
|
|
|
|
22,383,375
|
|
|
|
64,713,530
|
|
|
|
-
|
|
|
|
3,291,854
|
|
|
|
109,227,301
|
|
|
Net
income
|
|
$
|
10,943,617
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,943,617
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,943,617
|
|
Other
comprehensive income, unrealized gain on securities, net of
reclassification adjustment, net of tax benefit
|
|
|
2,425,901
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,425,901
|
|
|
|
2,425,901
|
|
Total
comprehensive income
|
|
$
|
13,369,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash
dividends declared, $1.04 per share
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,800,520
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
(9,800,520
|
)
|
|
Sale
of 5,742 shares of common stock
|
|
|
|
|
|
11,484
|
|
|
|
115,529
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
127,013
|
|
|
Balance,
December 31, 2006
|
|
|
|
|
$
|
18,850,026
|
|
|
$
|
22,498,904
|
|
|
$
|
65,856,627
|
|
|
$
|
-
|
|
|
$
|
5,717,755
|
|
|
$
|
112,923,312
|
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|||
|
|
|
|
|
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net
income
|
|
$
|
10,943,617
|
|
|
$
|
11,608,535
|
|
|
$
|
12,389,546
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|||
Provision
(credit) for loan losses
|
|
|
(182,686
|
)
|
|
|
331,282
|
|
|
|
479,355
|
|
Amortization
and accretion
|
|
|
131,704
|
|
|
|
478,244
|
|
|
|
683,012
|
|
Depreciation
|
|
|
973,257
|
|
|
|
915,213
|
|
|
|
951,477
|
|
Provision
for deferred taxes
|
|
|
107,200
|
|
|
|
(226,170
|
)
|
|
|
(53,448
|
)
|
Securities
gains, net
|
|
|
(1,135,136
|
)
|
|
|
(795,778
|
)
|
|
|
(324,030
|
)
|
Change
in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|||
Decrease
(increase) in loans held for sale
|
|
|
455,281
|
|
|
|
(675,561
|
)
|
|
|
624,670
|
|
Increase
in accrued income receivable
|
|
|
(1,237,570
|
)
|
|
|
(371,371
|
)
|
|
|
(420,177
|
)
|
Increase
in other assets
|
|
|
(798,438
|
)
|
|
|
(1,022,681
|
)
|
|
|
(835,415
|
)
|
Increase
(decrease) in accrued expenses and other liabilities
|
|
|
1,798,232
|
|
|
|
(770,194
|
)
|
|
|
(325,969
|
)
|
Net
cash provided by operating activities
|
|
|
11,055,461
|
|
|
|
9,471,519
|
|
|
|
13,169,021
|
|
|
|
|
|
|
|
|
|
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Purchase
of securities available-for-sale
|
|
|
(69,015,999
|
)
|
|
|
(59,049,297
|
)
|
|
|
(163,349,539
|
)
|
Proceeds
from sale of securities available-for-sale
|
|
|
6,013,192
|
|
|
|
24,937,433
|
|
|
|
5,045,102
|
|
Proceeds
from maturities and calls of securities available-for-sale
|
|
|
46,795,165
|
|
|
|
57,750,361
|
|
|
|
115,303,131
|
|
Net
(increase) decrease in interest bearing deposits in financial
institutions
|
|
|
4,439,236
|
|
|
|
3,591,632
|
|
|
|
(3,211,636
|
)
|
Net
(increase) decrease in federal funds sold
|
|
|
(12,800,000
|
)
|
|
|
19,565,000
|
|
|
|
515,000
|
|
Net
(increase) decrease in loans
|
|
|
11,377,830
|
|
|
|
(29,081,652
|
)
|
|
|
(56,584,801
|
)
|
Purchase
of bank premises and equipment
|
|
|
(2,560,158
|
)
|
|
|
(3,155,417
|
)
|
|
|
(1,364,306
|
)
|
Net
cash provided by (used in) investing activities
|
|
|
(15,750,734
|
)
|
|
|
14,558,060
|
|
|
|
(103,647,049
|
)
|
|
|
|
|
|
|
|
|
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Increase
in deposits
|
|
|
12,014,138
|
|
|
|
10,166,496
|
|
|
|
38,627,312
|
|
Increase
(decrease) in federal funds purchased and securities sold under agreements
to repurchase
|
|
|
67,914
|
|
|
|
(29,412,492
|
)
|
|
|
45,874,072
|
|
Proceeds
from other borrowing, net
|
|
|
608,986
|
|
|
|
2,861,130
|
|
|
|
-
|
|
Dividends
paid
|
|
|
(9,704,835
|
)
|
|
|
(8,599,597
|
)
|
|
|
(7,493,896
|
)
|
Proceeds
from issuance of stock
|
|
|
127,013
|
|
|
|
287,937
|
|
|
|
247,482
|
|
Net
cash provided by (used in) financing activities
|
|
|
3,113,216
|
|
|
|
(24,696,526
|
)
|
|
|
77,254,970
|
|
|
|
|
|
|
|
|
|
|
||||
Net
decrease in cash and cash equivalents
|
|
|
(1,582,057
|
)
|
|
|
(666,947
|
)
|
|
|
(13,223,058
|
)
|
|
|
|
|
|
|
|
|
|
||||
CASH
AND DUE FROM BANKS
|
|
|
|
|
|
|
|
|
|
|||
Beginning
|
|
|
18,092,139
|
|
|
|
18,759,086
|
|
|
|
31,982,144
|
|
Ending
|
|
$
|
16,510,082
|
|
|
$
|
18,092,139
|
|
|
$
|
18,759,086
|
|
AMES
NATIONAL CORPORATION AND SUBSIDIARIES
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|||||||
CONSOLIDATED
STATEMENTS OF CASH FLOWS (Continued)
|
|
|
|
|||||||||
Years
Ended December 31, 2006, 2005 and 2004
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|||||||
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|||
|
|
|
|
|
|
|||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW
|
|
|
|
|
|
|||||||
INFORMATION
|
|
|
|
|
|
|
||||||
Cash
payments for:
|
|
|
|
|
|
|
||||||
Interest
|
|
$
|
21,064,363
|
|
|
$
|
15,154,109
|
|
|
$
|
10,623,125
|
|
Income
taxes
|
|
|
3,461,781
|
|
|
|
3,979,665
|
|
|
|
4,516,823
|
|
Note
1.
|
Summary
of Significant Accounting
Policies
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
Basic
earning per share computation:
|
|
|
|
|
|
|
||||||
Net
income
|
|
$
|
10,943,617
|
|
|
$
|
11,608,535
|
|
|
$
|
12,389,546
|
|
Weighted
average common shares outstanding
|
|
|
9,422,402
|
|
|
|
9,415,599
|
|
|
|
9,405,705
|
|
Basic
EPS
|
|
$
|
1.16
|
|
|
$
|
1.23
|
|
|
$
|
1.32
|
|
Note
2.
|
Restrictions
on Cash and Due from Banks
|
Note
3.
|
Debt
and Equity Securities
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Estimated
Fair
Value
|
|
|||||
2006:
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||
U.S.
treasury
|
|
$
|
496,493
|
|
|
$
|
12,199
|
|
|
$
|
-
|
|
|
$
|
508,692
|
|
U.S.
government agencies
|
|
|
141,184,462
|
|
|
|
467,416
|
|
|
|
(1,907,201
|
)
|
|
|
139,744,677
|
|
State
and political subdivisions
|
|
|
119,698,521
|
|
|
|
969,283
|
|
|
|
(759,686
|
)
|
|
|
119,908,118
|
|
Corporate
bonds
|
|
|
60,204,400
|
|
|
|
853,289
|
|
|
|
(433,822
|
)
|
|
|
60,623,867
|
|
Equity
securities
|
|
|
23,912,185
|
|
|
|
9,914,125
|
|
|
|
(39,800
|
)
|
|
|
33,786,510
|
|
|
$
|
345,496,061
|
|
|
$
|
12,216,312
|
|
|
$
|
(3,140,509
|
)
|
|
$
|
354,571,864
|
|
|
Amortized
Cost
|
|
|
Gross
Unrealized
Gains
|
|
|
Gross
Unrealized
Losses
|
|
|
Estimated
Fair
Value
|
|
|||||
2005:
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|||||||||
U.S.
treasury
|
|
$
|
495,748
|
|
|
$
|
20,600
|
|
|
$
|
-
|
|
|
$
|
516,348
|
|
U.S.
government agencies
|
|
|
136,815,035
|
|
|
|
251,357
|
|
|
|
(2,778,021
|
)
|
|
|
134,288,371
|
|
State
and political subdivisions
|
|
|
108,432,912
|
|
|
|
1,121,566
|
|
|
|
(1,181,983
|
)
|
|
|
108,372,495
|
|
Corporate
bonds
|
|
|
59,523,220
|
|
|
|
936,527
|
|
|
|
(892,575
|
)
|
|
|
59,567,172
|
|
Equity
securities
|
|
|
23,018,072
|
|
|
|
7,869,194
|
|
|
|
(121,500
|
)
|
|
|
30,765,766
|
|
|
$
|
328,284,987
|
|
|
$
|
10,199,244
|
|
|
$
|
(4,974,079
|
)
|
|
$
|
333,510,152
|
|
|
Amortized
Cost
|
|
|
Estimated
Fair
Value
|
|
|||
|
|
|
|
|||||
Due
in one year or less
|
|
$
|
66,571,021
|
|
|
$
|
65,967,568
|
|
Due
after one year through five years
|
|
|
141,056,137
|
|
|
|
140,092,220
|
|
Due
after five years through ten years
|
|
|
97,159,187
|
|
|
|
97,977,214
|
|
Due
after ten years
|
|
|
16,797,531
|
|
|
|
16,748,352
|
|
|
|
|
321,583,876
|
|
|
|
320,785,354
|
|
Equity
securities
|
|
|
23,912,185
|
|
|
|
33,786,510
|
|
|
$
|
345,496,061
|
|
|
$
|
354,571,864
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
Unrealized
holding gains (losses) arising during the period
|
|
$
|
4,985,773
|
|
|
$
|
(5,832,566
|
)
|
|
$
|
(1,974,746
|
)
|
Reclassification
adjustment for net gains realized in net income
|
|
|
(1,135,136
|
)
|
|
|
(795,780
|
)
|
|
|
(324,030
|
)
|
Net
unrealized gains (losses) before tax effect
|
|
|
3,850,637
|
|
|
|
(6,628,346
|
)
|
|
|
(2,298,776
|
)
|
Tax
effect
|
|
|
(1,424,736
|
)
|
|
|
2,452,488
|
|
|
|
850,547
|
|
Other
comprehensive income - Net unrealized gains (losses) on
securities
|
|
$
|
2,425,901
|
|
|
$
|
(4,175,858
|
)
|
|
$
|
(1,448,229
|
)
|
|
Less
than 12 Months
|
|
|
12
Months or More
|
|
|
Total
|
|
||||||||||||||||
|
Fair
Value
|
|
|
Unrealized
Losses
|
|
|
Fair
Value
|
|
|
Unrealized
Losses
|
|
|
Fair
Value
|
|
|
Unrealized
Losses
|
|
|||||||
2006:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Securities
available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
government agencies
|
|
$
|
5,314,294
|
|
|
$
|
(19,792
|
)
|
|
$
|
99,623,211
|
|
|
$
|
(1,887,409
|
)
|
|
$
|
104,937,505
|
|
|
$
|
(1,907,201
|
)
|
State
and political subsidivisions
|
|
|
13,580,743
|
|
|
|
(51,720
|
)
|
|
|
39,705,322
|
|
|
|
(707,966
|
)
|
|
|
53,286,065
|
|
|
|
(759,686
|
)
|
Corporate
obligations
|
|
|
1,964,337
|
|
|
|
(29,997
|
)
|
|
|
23,139,560
|
|
|
|
(403,825
|
)
|
|
|
25,103,897
|
|
|
|
(433,822
|
)
|
Equity
securities
|
|
|
960,200
|
|
|
|
(39,800
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
960,200
|
|
|
|
(39,800
|
)
|
|
$
|
21,819,574
|
|
|
$
|
(141,309
|
)
|
|
$
|
162,468,093
|
|
|
$
|
(2,999,200
|
)
|
|
$
|
184,287,667
|
|
|
$
|
(3,140,509
|
)
|
|
Less
than 12 Months
|
|
|
12
Months or More
|
|
|
Total
|
|
||||||||||||||||
|
Fair
Value
|
|
|
Unrealized
Losses
|
|
|
Fair
Value
|
|
|
Unrealized
Losses
|
|
|
Fair
Value
|
|
|
Unrealized
Losses
|
|
|||||||
2005:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Securities
available for sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
U.S.
government agencies
|
|
$
|
50,630,566
|
|
|
$
|
(845,216
|
)
|
|
$
|
75,540,778
|
|
|
$
|
(1,932,805
|
)
|
|
$
|
126,171,344
|
|
|
$
|
(2,778,021
|
)
|
State
and political subsidivisions
|
|
|
36,928,098
|
|
|
|
(585,753
|
)
|
|
|
20,290,028
|
|
|
|
(596,230
|
)
|
|
|
57,218,126
|
|
|
|
(1,181,983
|
)
|
Corporate
obligations
|
|
|
6,025,437
|
|
|
|
(196,195
|
)
|
|
|
26,460,433
|
|
|
|
(696,380
|
)
|
|
|
32,485,870
|
|
|
|
(892,575
|
)
|
Equity
securities
|
|
|
1,956,000
|
|
|
|
(44,000
|
)
|
|
|
1,332,500
|
|
|
|
(77,500
|
)
|
|
|
3,288,500
|
|
|
|
(121,500
|
)
|
|
$
|
95,540,101
|
|
|
$
|
(1,671,164
|
)
|
|
$
|
123,623,739
|
|
|
$
|
(3,302,915
|
)
|
|
$
|
219,163,840
|
|
|
$
|
(4,974,079
|
)
|
Note
4.
|
Loans
Receivable
|
|
2006
|
|
|
2005
|
|
|||
|
|
|
|
|||||
Commercial
and agricultural
|
|
$
|
107,193,787
|
|
|
$
|
103,646,036
|
|
Real
estate - mortgage
|
|
|
273,861,154
|
|
|
|
286,570,239
|
|
Real
estate - construction
|
|
|
30,599,880
|
|
|
|
23,972,594
|
|
Consumer
|
|
|
11,834,070
|
|
|
|
12,449,551
|
|
Other
|
|
|
12,442,698
|
|
|
|
20,890,051
|
|
|
|
435,931,589
|
|
|
|
447,528,471
|
|
|
Less:
|
|
|
|
|
|
|
||
Allowance
for loan losses
|
|
|
(6,532,617
|
)
|
|
|
(6,765,356
|
)
|
Deferred
loan fees
|
|
|
(276,431
|
)
|
|
|
(445,430
|
)
|
|
$
|
429,122,541
|
|
|
$
|
440,317,685
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
|
|
|
|
|
|
|||||||
Balance,
beginning
|
|
$
|
6,765,356
|
|
|
$
|
6,475,530
|
|
|
$
|
6,050,989
|
|
Provision
(credit) for loan losses
|
|
|
(182,686
|
)
|
|
|
331,282
|
|
|
|
479,355
|
|
Recoveries
of loans charged-off
|
|
|
55,055
|
|
|
|
105,400
|
|
|
|
174,703
|
|
Loans
charged-off
|
|
|
(105,108
|
)
|
|
|
(146,856
|
)
|
|
|
(229,517
|
)
|
Balance,
ending
|
|
$
|
6,532,617
|
|
|
$
|
6,765,356
|
|
|
$
|
6,475,530
|
|
|
2006
|
|
|
2005
|
|
|||
|
|
|
|
|||||
Balance,
beginning of year
|
|
$
|
28,505,102
|
|
|
$
|
28,655,993
|
|
New
loans
|
|
|
9,804,923
|
|
|
|
13,201,498
|
|
Repayments
|
|
|
(12,961,377
|
)
|
|
|
(13,140,392
|
)
|
Change
in status
|
|
|
(3,248,435
|
)
|
|
|
(211,997
|
)
|
Balance,
end of year
|
|
$
|
22,100,213
|
|
|
$
|
28,505,102
|
|
Note
5.
|
Bank
Premises and Equipment
|
|
2006
|
|
|
2005
|
|
|||
|
|
|
|
|||||
Land
|
|
$
|
3,032,448
|
|
|
$
|
3,000,803
|
|
Buildings
and improvements
|
|
|
12,622,808
|
|
|
|
10,734,396
|
|
Furniture
and equipment
|
|
|
6,522,487
|
|
|
|
6,378,610
|
|
|
|
22,177,743
|
|
|
|
20,113,809
|
|
|
|
|
|
|
|
|
|||
Less
accumulated depreciation
|
|
|
9,560,002
|
|
|
|
9,082,969
|
|
|
$
|
12,617,741
|
|
|
$
|
11,030,840
|
|
Note
6.
|
Deposits
|
2007
|
|
$
|
213,366,069
|
|
2008
|
|
|
40,445,425
|
|
2009
|
|
|
18,930,195
|
|
2010
|
|
|
7,861,441
|
|
2011
|
|
|
4,129,211
|
|
|
$
|
284,732,341
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
|
|
|
|
|
|
|||||||
NOW
accounts
|
|
$
|
2,362,608
|
|
|
$
|
2,009,186
|
|
|
$
|
1,237,381
|
|
Savings
and money market
|
|
|
5,886,737
|
|
|
|
3,745,885
|
|
|
|
1,972,211
|
|
Time,
$100,000 and over
|
|
|
4,421,595
|
|
|
|
3,094,834
|
|
|
|
1,758,187
|
|
Other
time
|
|
|
7,071,439
|
|
|
|
5,530,309
|
|
|
|
4,974,471
|
|
|
$
|
19,742,379
|
|
|
$
|
14,380,214
|
|
|
$
|
9,942,250
|
|
Note
7.
|
Borrowings
|
Note
8.
|
Employee
Benefit Plans
|
Note
9.
|
Income
Taxes
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
|
|
|
|
|
|
|||||||
Federal:
|
|
|
|
|
|
|
||||||
Current
|
|
$
|
2,633,706
|
|
|
$
|
3,282,266
|
|
|
$
|
3,493,176
|
|
Deferred
|
|
|
90,186
|
|
|
|
(202,533
|
)
|
|
|
(48,519
|
)
|
|
|
|
2,723,892
|
|
|
|
3,079,733
|
|
|
|
3,444,657
|
|
State:
|
|
|
|
|
|
|
|
|
|
|||
Current
|
|
|
658,497
|
|
|
|
779,897
|
|
|
|
815,664
|
|
Deferred
|
|
|
17,014
|
|
|
|
(23,638
|
)
|
|
|
(4,929
|
)
|
|
|
|
675,511
|
|
|
|
756,259
|
|
|
|
810,735
|
|
|
|
|
|
|
|
|
|
|
|
|||
Income
tax expense
|
|
$
|
3,399,403
|
|
|
$
|
3,835,992
|
|
|
$
|
4,255,392
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
|
|
|
|
|
|
|||||||
Income
taxes at 35% federal tax rate
|
|
$
|
5,020,058
|
|
|
$
|
5,405,585
|
|
|
$
|
5,825,727
|
|
Increase
(decrease) resulting from:
|
|
|
|
|
|
|
|
|
|
|||
Tax-exempt
interest and dividends
|
|
|
(1,797,533
|
)
|
|
|
(1,860,143
|
)
|
|
|
(1,870,264
|
)
|
State
taxes, net of federal tax benefit
|
|
|
437,893
|
|
|
|
460,694
|
|
|
|
522,929
|
|
Other
|
|
|
(261,015
|
)
|
|
|
(170,144
|
)
|
|
|
(223,000
|
)
|
Total
income tax expense
|
|
$
|
3,399,403
|
|
|
$
|
3,835,992
|
|
|
$
|
4,255,392
|
|
|
2006
|
|
|
2005
|
|
|||
|
|
|
|
|||||
Deferred
tax assets:
|
|
|
|
|
||||
Allowance
for loan losses
|
|
$
|
1,921,102
|
|
|
$
|
2,009,069
|
|
Other
items
|
|
|
595,168
|
|
|
|
447,057
|
|
|
|
2,516,270
|
|
|
|
2,456,126
|
|
|
Deferred
tax liabilities:
|
|
|
|
|
|
|
||
Net
unrealized gains on securities available for sale
|
|
|
(3,358,048
|
)
|
|
|
(1,933,311
|
)
|
Other
|
|
|
(346,170
|
)
|
|
|
(178,826
|
)
|
|
|
(3,704,218
|
)
|
|
|
(2,112,137
|
)
|
|
|
|
|
|
|
|
|||
Net
deferred tax assets (liabilities)
|
|
$
|
(1,187,948
|
)
|
|
$
|
343,989
|
|
Note
10.
|
Commitments,
Contingencies and Concentrations of Credit
Risk
|
|
2006
|
|
|
2005
|
|
|||
|
|
|
|
|||||
Commitments
to extend credit
|
|
$
|
79,629,000
|
|
|
$
|
77,099,000
|
|
Standby
letters of credit
|
|
|
1,995,000
|
|
|
|
1,433,000
|
|
|
$
|
81,624,000
|
|
|
$
|
78,532,000
|
|
Note
11.
|
Regulatory
Matters
|
|
|
|
|
|
For
Capital
|
|
|
To
Be Well
Capitalized
Under
Prompt
Corrective
|
|
|||||||||||||||
|
Actual
|
|
|
Adequacy
Purposes
|
|
|
Action
Provisions
|
|
||||||||||||||||
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As
of December 31, 2006:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
113,738
|
|
|
|
18.8
|
%
|
|
$
|
48,299
|
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
||
Boone
Bank & Trust
|
|
|
13,405
|
|
|
|
16.3
|
|
|
|
6,594
|
|
|
|
8.0
|
|
|
$
|
8,243
|
|
|
|
10.0
|
%
|
First
National Bank
|
|
|
44,420
|
|
|
|
15.3
|
|
|
|
23,247
|
|
|
|
8.0
|
|
|
|
29,059
|
|
|
|
10.0
|
|
Randall-Story
State Bank
|
|
|
8,497
|
|
|
|
15.8
|
|
|
|
4,302
|
|
|
|
8.0
|
|
|
|
5,378
|
|
|
|
10.0
|
|
State
Bank & Trust
|
|
|
12,449
|
|
|
|
15.0
|
|
|
|
6,625
|
|
|
|
8.0
|
|
|
|
8,282
|
|
|
|
10.0
|
|
United
Bank & Trust
|
|
|
8,729
|
|
|
|
12.5
|
|
|
|
5,609
|
|
|
|
8.0
|
|
|
|
7,011
|
|
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tier
1 capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated
|
|
$
|
107,205
|
|
|
|
17.8
|
%
|
|
$
|
24,149
|
|
|
|
4.0
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Boone
Bank & Trust
|
|
|
12,477
|
|
|
|
15.1
|
|
|
|
3,297
|
|
|
|
4.0
|
|
|
$
|
4,946
|
|
|
|
6.0
|
%
|
First
National Bank
|
|
|
41,106
|
|
|
|
14.1
|
|
|
|
11,623
|
|
|
|
4.0
|
|
|
|
17,435
|
|
|
|
6.0
|
|
Randall-Story
State Bank
|
|
|
7,874
|
|
|
|
14.6
|
|
|
|
2,151
|
|
|
|
4.0
|
|
|
|
3,227
|
|
|
|
6.0
|
|
State
Bank & Trust
|
|
|
11,538
|
|
|
|
13.9
|
|
|
|
3,313
|
|
|
|
4.0
|
|
|
|
4,969
|
|
|
|
6.0
|
|
United
Bank & Trust
|
|
|
7,842
|
|
|
|
11.2
|
|
|
|
2,804
|
|
|
|
4.0
|
|
|
|
4,207
|
|
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tier
1 capital (to average-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated
|
|
$
|
107,205
|
|
|
|
13.0
|
%
|
|
$
|
33,103
|
|
|
|
4.0
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Boone
Bank & Trust
|
|
|
12,477
|
|
|
|
12.0
|
|
|
|
4,167
|
|
|
|
4.0
|
|
|
$
|
5,209
|
|
|
|
5.0
|
%
|
First
National Bank
|
|
|
41,106
|
|
|
|
9.9
|
|
|
|
16,662
|
|
|
|
4.0
|
|
|
|
20,830
|
|
|
|
5.0
|
|
Randall-Story
State Bank
|
|
|
7,874
|
|
|
|
11.2
|
|
|
|
2,824
|
|
|
|
4.0
|
|
|
|
3,530
|
|
|
|
5.0
|
|
State
Bank & Trust
|
|
|
11,538
|
|
|
|
10.2
|
|
|
|
4,538
|
|
|
|
4.0
|
|
|
|
5,673
|
|
|
|
5.0
|
|
United
Bank & Trust
|
|
|
7,842
|
|
|
|
8.0
|
|
|
|
3,946
|
|
|
|
4.0
|
|
|
|
4,932
|
|
|
|
5.0
|
|
|
|
|
|
|
|
|
|
|
To
Be Well
Capitalized
Under
|
|
||||||||||||||
|
|
|
|
|
For
Capital
|
|
|
Prompt
Corrective
|
|
|||||||||||||||
|
Actual
|
|
|
Adequacy
Purposes
|
|
|
Action
Provisions
|
|
||||||||||||||||
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
As
of December 31, 2005:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total
capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated
|
|
$
|
112,700
|
|
|
|
18.9
|
%
|
|
$
|
47,680
|
|
|
|
8.0
|
%
|
|
N/A
|
|
|
N/A
|
|
||
Boone
Bank & Trust
|
|
|
13,399
|
|
|
|
17.3
|
|
|
|
6,221
|
|
|
|
8.0
|
|
|
$
|
7,776
|
|
|
|
10.0
|
%
|
First
National Bank
|
|
|
43,903
|
|
|
|
14.7
|
|
|
|
23,868
|
|
|
|
8.0
|
|
|
|
29,835
|
|
|
|
10.0
|
|
Randall-Story
State Bank
|
|
|
8,367
|
|
|
|
16.2
|
|
|
|
4,130
|
|
|
|
8.0
|
|
|
|
5,163
|
|
|
|
10.0
|
|
State
Bank & Trust
|
|
|
12,336
|
|
|
|
15.2
|
|
|
|
6,490
|
|
|
|
8.0
|
|
|
|
8,113
|
|
|
|
10.0
|
|
United
Bank & Trust
|
|
|
8,558
|
|
|
|
13.1
|
|
|
|
5,233
|
|
|
|
8.0
|
|
|
|
6,541
|
|
|
|
10.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tier
1 capital (to risk-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated
|
|
$
|
105,935
|
|
|
|
17.8
|
%
|
|
$
|
23,840
|
|
|
|
4.0
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Boone
Bank & Trust
|
|
|
12,441
|
|
|
|
16.0
|
|
|
|
3,111
|
|
|
|
4.0
|
|
|
$
|
4,666
|
|
|
|
6.0
|
%
|
First
National Bank
|
|
|
40,352
|
|
|
|
13.5
|
|
|
|
11,934
|
|
|
|
4.0
|
|
|
|
17,901
|
|
|
|
6.0
|
|
Randall-Story
State Bank
|
|
|
7,721
|
|
|
|
15.0
|
|
|
|
2,065
|
|
|
|
4.0
|
|
|
|
3,098
|
|
|
|
6.0
|
|
State
Bank & Trust
|
|
|
11,428
|
|
|
|
14.1
|
|
|
|
3,245
|
|
|
|
4.0
|
|
|
|
4,868
|
|
|
|
6.0
|
|
United
Bank & Trust
|
|
|
7,740
|
|
|
|
11.8
|
|
|
|
2,617
|
|
|
|
4.0
|
|
|
|
3,925
|
|
|
|
6.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Tier
1 capital (to average-weighted assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Consolidated
|
|
$
|
105,935
|
|
|
|
12.9
|
%
|
|
$
|
32,803
|
|
|
|
4.0
|
%
|
|
|
N/A
|
|
|
|
N/A
|
|
Boone
Bank & Trust
|
|
|
12,441
|
|
|
|
11.4
|
|
|
|
4,374
|
|
|
|
4.0
|
|
|
$
|
5,467
|
|
|
|
5.0
|
%
|
First
National Bank
|
|
|
40,352
|
|
|
|
9.8
|
|
|
|
16,406
|
|
|
|
4.0
|
|
|
|
20,508
|
|
|
|
5.0
|
|
Randall-Story
State Bank
|
|
|
7,721
|
|
|
|
11.0
|
|
|
|
2,810
|
|
|
|
4.0
|
|
|
|
3,513
|
|
|
|
5.0
|
|
State
Bank & Trust
|
|
|
11,428
|
|
|
|
9.8
|
|
|
|
4,643
|
|
|
|
4.0
|
|
|
|
5,803
|
|
|
|
5.0
|
|
United
Bank & Trust
|
|
|
7,740
|
|
|
|
8.2
|
|
|
|
3,778
|
|
|
|
4.0
|
|
|
|
4,722
|
|
|
|
5.0
|
|
Note
12.
|
Fair
Value of Financial
Instruments
|
|
2006
|
|
|
2005
|
|
|||||||||||
|
Carrying
Amount
|
|
|
Fair
Value
|
|
|
Carrying
Amount
|
|
|
Fair
Value
|
|
|||||
|
|
|
|
|
|
|
|
|||||||||
Financial
assets:
|
|
|
|
|
|
|
|
|
||||||||
Cash
and due from banks
|
|
$
|
16,510,082
|
|
|
$
|
16,510,082
|
|
|
$
|
18,092,139
|
|
|
$
|
18,092,139
|
|
Federal
funds sold
|
|
|
13,100,000
|
|
|
|
13,100,000
|
|
|
|
300,000
|
|
|
|
300,000
|
|
Interest-bearing
deposits
|
|
|
1,544,306
|
|
|
|
1,544,306
|
|
|
|
5,983,542
|
|
|
|
5,983,542
|
|
Securities
available-for-sale
|
|
|
354,571,864
|
|
|
|
354,571,864
|
|
|
|
333,510,152
|
|
|
|
333,510,152
|
|
Loans,
net
|
|
|
429,122,541
|
|
|
|
418,432,339
|
|
|
|
440,317,685
|
|
|
|
431,056,183
|
|
Loans
held for sale
|
|
|
525,999
|
|
|
|
525,999
|
|
|
|
981,280
|
|
|
|
981,280
|
|
Accrued
income receivable
|
|
|
7,871,365
|
|
|
|
7,871,365
|
|
|
|
6,633,795
|
|
|
|
6,633,795
|
|
Financial
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deposits
|
|
$
|
680,356,473
|
|
|
$
|
679,713,963
|
|
|
$
|
668,342,335
|
|
|
$
|
667,871,250
|
|
Other
borrowings
|
|
|
38,198,013
|
|
|
|
38,198,013
|
|
|
|
37,521,113
|
|
|
|
37,521,113
|
|
Accrued
interest payable
|
|
|
2,322,185
|
|
|
|
2,322,185
|
|
|
|
2,081,020
|
|
|
|
2,081,020
|
|
Note
13.
|
Ames
National Corporation (Parent Company Only) Financial
Statements
|
|
2006
|
|
|
2005
|
|
|||
|
|
|
|
|||||
ASSETS
|
|
|
|
|
||||
|
|
|
|
|||||
Cash
and due from banks
|
|
$
|
35,174
|
|
|
$
|
8,153
|
|
Interest-bearing
deposits in banks
|
|
|
299,654
|
|
|
|
1,616,488
|
|
Securities
available-for-sale
|
|
|
36,059,486
|
|
|
|
32,673,908
|
|
Investment
in bank subsidiaries
|
|
|
80,524,802
|
|
|
|
78,120,998
|
|
Loans
receivable, net
|
|
|
1,247,000
|
|
|
|
1,247,000
|
|
Premises
and equipment, net
|
|
|
751,992
|
|
|
|
781,431
|
|
Accrued
income receivable
|
|
|
247,502
|
|
|
|
237,888
|
|
Other
assets
|
|
|
10,000
|
|
|
|
235,584
|
|
|
|
|
|
|
|
|||
Total
assets
|
|
$
|
119,175,610
|
|
|
$
|
114,921,450
|
|
|
|
|
|
|
|
|||
LIABILITIES
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|||
|
|
|
|
|
|
|||
Dividends
payable
|
|
$
|
2,450,503
|
|
|
$
|
2,354,818
|
|
Deferred
income taxes
|
|
|
3,358,619
|
|
|
|
2,689,836
|
|
Accrued
expenses and other liabilities
|
|
|
443,176
|
|
|
|
649,495
|
|
|
|
|
|
|
|
|||
Total
liabilities
|
|
|
6,252,298
|
|
|
|
5,694,149
|
|
|
|
|
|
|
|
|||
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|||
Common
stock
|
|
|
18,850,026
|
|
|
|
18,838,542
|
|
Additional
paid-in capital
|
|
|
22,498,904
|
|
|
|
22,383,375
|
|
Retained
earnings
|
|
|
65,856,627
|
|
|
|
64,713,530
|
|
Accumulated
other comprehensive income
|
|
|
5,717,755
|
|
|
|
3,291,854
|
|
Total
stockholders' equity
|
|
|
112,923,312
|
|
|
|
109,227,301
|
|
|
|
|
|
|
|
|
||
Total
liabilities and stockholders' equity
|
|
$
|
119,175,610
|
|
|
$
|
114,921,450
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
Operating
income:
|
|
|
|
|
|
|
||||||
Equity
in net income of bank subsidiaries
|
|
$
|
9,728,640
|
|
|
$
|
10,660,583
|
|
|
$
|
11,857,298
|
|
Interest
|
|
|
690,704
|
|
|
|
570,325
|
|
|
|
473,375
|
|
Dividends
|
|
|
919,039
|
|
|
|
993,460
|
|
|
|
1,063,203
|
|
Rents
|
|
|
81,306
|
|
|
|
35,665
|
|
|
|
70,425
|
|
Securities
gains, net
|
|
|
1,333,136
|
|
|
|
1,130,072
|
|
|
|
308,273
|
|
|
|
|
12,752,825
|
|
|
|
13,390,105
|
|
|
|
13,772,574
|
|
|
|
|
|
|
|
|
|
|
||||
Provision
for loan losses
|
|
|
-
|
|
|
|
-
|
|
|
|
16,000
|
|
|
|
|
|
|
|
|
|
|
||||
Operating
income after provision for loan losses
|
|
|
12,752,825
|
|
|
|
13,390,105
|
|
|
|
13,756,574
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating
expenses
|
|
|
1,609,208
|
|
|
|
1,696,570
|
|
|
|
1,517,028
|
|
|
|
|
|
|
|
|
|
|
|
|||
Income
before income taxes
|
|
|
11,143,617
|
|
|
|
11,693,535
|
|
|
|
12,239,546
|
|
|
|
|
|
|
|
|
|
|
|
|||
Income
tax expense (benefit)
|
|
|
200,000
|
|
|
|
85,000
|
|
|
|
(150,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|||
Net
income
|
|
$
|
10,943,617
|
|
|
$
|
11,608,535
|
|
|
$
|
12,389,546
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
||||||
Net
income
|
|
$
|
10,943,617
|
|
|
$
|
11,608,535
|
|
|
$
|
12,389,546
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|||
Depreciation
|
|
|
65,498
|
|
|
|
64,216
|
|
|
|
66,473
|
|
Provision
for loan losses
|
|
|
-
|
|
|
|
-
|
|
|
|
16,000
|
|
Amortization
and accretion, net
|
|
|
(18,575
|
)
|
|
|
(5,757
|
)
|
|
|
(6,004
|
)
|
Provision
for deferred taxes
|
|
|
(22,320
|
)
|
|
|
(50,652
|
)
|
|
|
-
|
|
Securities
gains, net
|
|
|
(1,333,136
|
)
|
|
|
(1,130,072
|
)
|
|
|
(308,273
|
)
|
Equity
in net income of bank subsidiaries
|
|
|
(9,728,640
|
)
|
|
|
(10,660,583
|
)
|
|
|
(11,857,299
|
)
|
Dividends
received from bank subsidiaries
|
|
|
8,734,000
|
|
|
|
8,634,000
|
|
|
|
8,384,000
|
|
Increase
in accrued income receivable
|
|
|
(9,614
|
)
|
|
|
(77,351
|
)
|
|
|
(9,202
|
)
|
Decrease
(increase) in other assets
|
|
|
225,584
|
|
|
|
(92,646
|
)
|
|
|
(135,740
|
)
|
Increase
(decrease) in accrued expense payable and other
liabilities
|
|
|
(206,319
|
)
|
|
|
311,454
|
|
|
|
(350,540
|
)
|
Net
cash provided by operating activities
|
|
$
|
8,650,095
|
|
|
$
|
8,601,144
|
|
|
$
|
8,188,961
|
|
|
|
|
|
|
|
|
|
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Purchase
of securities available-for-sale
|
|
|
(7,130,088
|
)
|
|
|
(8,893,910
|
)
|
|
|
(1,454,604
|
)
|
Proceeds
from sale of securities available-for-sale
|
|
|
4,629,061
|
|
|
|
7,830,546
|
|
|
|
4,200,716
|
|
Proceeds
from maturities and calls of securities available-for-sale
|
|
|
2,335,000
|
|
|
|
800,000
|
|
|
|
519,223
|
|
Decrease
(increase) in interest bearing deposits in banks
|
|
|
1,316,834
|
|
|
|
1,101,638
|
|
|
|
(1,129,131
|
)
|
Increase
in loans
|
|
|
-
|
|
|
|
(170,000
|
)
|
|
|
(1,093,000
|
)
|
Purchase
of bank premises and equipment
|
|
|
(36,059
|
)
|
|
|
(406,588
|
)
|
|
|
(29,981
|
)
|
Investment
in bank subsidiaries
|
|
|
(160,000
|
)
|
|
|
(550,000
|
)
|
|
|
(1,950,000
|
)
|
Net
cash provided by (used in) investing activities
|
|
$
|
954,748
|
|
|
$
|
(288,314
|
)
|
|
$
|
(936,777
|
)
|
|
|
|
|
|
|
|
|
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|||
Dividends
paid
|
|
|
(9,704,835
|
)
|
|
|
(8,599,597
|
)
|
|
|
(7,493,896
|
)
|
Proceeds
from issuance of stock
|
|
|
127,013
|
|
|
|
287,937
|
|
|
|
247,482
|
|
Net
cash used in financing activities
|
|
$
|
(9,577,822
|
)
|
|
$
|
(8,311,660
|
)
|
|
$
|
(7,246,414
|
)
|
|
|
|
|
|
|
|
|
|
||||
Net
increase in cash and cash equivalents
|
|
|
27,021
|
|
|
|
1,170
|
|
|
|
5,770
|
|
|
|
|
|
|
|
|
|
|
||||
CASH
AND DUE FROM BANKS
|
|
|
|
|
|
|
|
|
|
|||
Beginning
|
|
|
8,153
|
|
|
|
6,983
|
|
|
|
1,213
|
|
Ending
|
|
$
|
35,174
|
|
|
$
|
8,153
|
|
|
$
|
6,983
|
|
Note
14.
|
Selected
Quarterly Financial Data
(Unaudited)
|
|
2006
|
|
||||||||||||||
|
March
31
|
|
|
June
30
|
|
|
September
30
|
|
|
December
31
|
|
|||||
|
|
|
|
|
|
|
|
|||||||||
Total
interest income
|
|
$
|
10,629,614
|
|
|
$
|
10,977,629
|
|
|
$
|
11,264,945
|
|
|
$
|
11,423,504
|
|
Total
interest expense
|
|
|
4,778,803
|
|
|
|
5,225,682
|
|
|
|
5,608,475
|
|
|
|
5,692,568
|
|
Net
interest income
|
|
|
5,850,811
|
|
|
|
5,751,947
|
|
|
|
5,656,470
|
|
|
|
5,730,936
|
|
Provision
(credit) for loan losses
|
|
|
29,624
|
|
|
|
(302,854
|
)
|
|
|
45,859
|
|
|
|
44,685
|
|
Net
income
|
|
|
2,912,368
|
|
|
|
2,764,818
|
|
|
|
2,545,572
|
|
|
|
2,720,859
|
|
Basic
and diluted earnings per common share
|
|
|
0.31
|
|
|
|
0.29
|
|
|
|
0.27
|
|
|
|
0.29
|
|
|
2005
|
|
||||||||||||||
|
March
31
|
|
|
June
30
|
|
|
September
30
|
|
|
December
31
|
|
|||||
|
|
|
|
|
|
|
|
|||||||||
Total
interest income
|
|
$
|
9,943,736
|
|
|
$
|
10,227,074
|
|
|
$
|
10,534,838
|
|
|
$
|
10,599,979
|
|
Total
interest expense
|
|
|
3,348,899
|
|
|
|
3,862,127
|
|
|
|
4,174,670
|
|
|
|
4,547,412
|
|
Net
interest income
|
|
|
6,594,837
|
|
|
|
6,364,947
|
|
|
|
6,360,168
|
|
|
|
6,052,567
|
|
Provision
for loan losses
|
|
|
53,725
|
|
|
|
74,882
|
|
|
|
118,431
|
|
|
|
84,244
|
|
Net
income
|
|
|
3,013,924
|
|
|
|
2,968,312
|
|
|
|
2,917,376
|
|
|
|
2,708,923
|
|
Basic
and diluted earnings per common share
|
|
|
0.32
|
|
|
|
0.32
|
|
|
|
0.31
|
|
|
|
0.29
|
|
Note
15.
|
Stock
Repurchase Program
|
ITEM
9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
ITEM
9A.
|
CONTROLS
AND PROCEDURES
|
ITEM
9B.
|
OTHER
INFORMATION
|
ITEM
10.
|
DIRECTORS,
EXECUTIVE OFFICERS AND CORPORATE
GOVERNANCE
|
ITEM
11.
|
EXECUTIVE
COMPENSATION
|
ITEM
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
SHAREHOLDER MATTERS
|
ITEM
13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
|
ITEM
14.
|
PRINCIPAL
ACCOUNTANT FEES AND
SERVICES
|
ITEM
15.
|
EXHIBITS
AND FINANCIAL STATEMENT
SCHEDULES
|
(a)
|
List
of Financial Statements and
Schedules.
|
|
1.
|
Financial
Statements
|
|
Reports
of Clifton Gunderson LLP, Independent Registered Public Accounting
Firm
|
|
Report
of McGladrey & Pullen LLP, Independent Registered Public Accounting
Firm
|
|
Consolidated
Balance Sheets, December 31, 2006 and
2005
|
|
Consolidated Statements
of Income for the Years ended December 31, 2006, 2005 and
2004
|
|
Consolidated
Statements of Stockholders' Equity for the Years ended December 31,
2006,
2005 and 2004
|
|
Consolidated
Statements of Cash Flows for the Years ended December 31, 2006, 2005
and
2004
|
|
Notes
to Consolidated Financial
Statements
|
|
2.
|
Financial
Statement Schedules
|
(b)
|
List
of Exhibits.
|
|
3.1
|
-
|
Restated
Articles of Incorporation of the Company, as amended (incorporated
by
reference to Exhibit 3.1 to Form 8-K as filed June 16,
2005)
|
|
3.2
|
-
|
Bylaws
of the Company, as amended (incorporated by reference to Exhibit
3.2 to
Form 8-K as filed June 16, 2005)
|
|
10.1
|
-
|
Management
Incentive Compensation Plan (incorporated by reference to Exhibit
10 filed
with the Company’s Annual Report on Form 10K for the year ended December
31, 2002)*
|
|
16
|
-
|
Letter
regarding change in certifying Accountant (incorporated by reference
to
Exhibit 16 to Form 8-K as filed February 13,
2006)
|
|
21
|
-
|
Subsidiaries
of the Registrant
|
|
23.1
|
-
|
Consent
of Independent Registered Public Accounting
Firm
|
|
23.2
|
-
|
Consent
of Independent Registered Public Accounting
Firm
|
|
31.1
|
-
|
Certification
of Principal Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
31.2
|
-
|
Certification
of Principal Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
32.1
|
-
|
Certification
of Principal Executive Officer Pursuant to 18 U.S.C. Section
1350
|
|
32.2
|
-
|
Certification
of Principal Financial Officer Pursuant to 18 U.S.C. Section
1350
|
|
*
|
Indicates
a management compensatory plan or
arrangement.
|
AMES
NATIONAL CORPORATION
|
||||
March
15, 2007
|
By:
|
/s/
Daniel L. Krieger
|
||
Daniel
L. Krieger, Chairman and President
|
||||
(Principal
Executive Officer)
|
||||
March
15, 2007
|
By:
|
/s/
John P. Nelson
|
||
John
P. Nelson, Vice President
|
||||
(Principal
Financial and Accounting Officer)
|
/s/ Betty A. Baudler Horras | ||
Betty
A. Baudler Horras, Director
|
||
/s/ Robert L. Cramer | ||
Robert
L. Cramer, Director
|
||
/s/ Douglas C. Gustafson | ||
Douglas
C. Gustafson, Director
|
||
/s/ Charles D. Jons | ||
Charles
D. Jons, Director
|
||
/s/ Jami R. Larson II | ||
Jami
R. Larson II, Director
|
||
/s/ Warren R. Madden | ||
Warren
R. Madden, Director
|
||
/s/ Fred C. Samuelson | ||
Fred
C. Samuelson, Director
|
||
/s/ Marvin J. Walter | ||
Marvin
J. Walter, Director
|
Exhibit
No.
|
Description
|
|
-Subsidiaries
of the Registrant
|
||
-Consent
of Independent Registered Public Accounting Firm.
|
||
-Consent
of Independent Registered Public Accounting Firm.
|
||
-Certification
of Principal Executive Officer pursuant to Section 302 of the Sarbanes
Oxley Act of 2002
|
||
-Certification
of Principal Financial Officer pursuant to Section 302 of the 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
|