x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE
ACT OF
1934
|
o
|
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. Employer Identification
Number)
|
Large
accelerated filer o
|
Accelerated
filer x
|
Non-accelerated
filer o
|
COMMON
STOCK, $2.00 PAR VALUE
|
9,429,580
|
|
(Class)
|
(Shares
Outstanding at August 1, 2007)
|
Page
|
|||
PART
I.
|
FINANCIAL INFORMATION | ||
Item
1.
|
|||
|
|||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
Item
2.
|
7
|
||
Item
3.
|
22
|
||
|
|||
Item
4.
|
22
|
||
PART
II.
|
OTHER INFORMATION | ||
23
|
|||
24
|
June
30,
|
December
31,
|
|||||||
ASSETS
|
2007
|
2006
|
||||||
Cash
and due from banks
|
$ |
19,255,762
|
$ |
16,510,082
|
||||
Federal
funds sold
|
-
|
13,100,000
|
||||||
Interest
bearing deposits in financial institutions
|
1,010,523
|
1,544,306
|
||||||
Securities
available-for-sale
|
351,099,722
|
354,571,864
|
||||||
Loans
receivable, net
|
441,320,062
|
429,122,541
|
||||||
Loans
held for sale
|
2,094,327
|
525,999
|
||||||
Bank
premises and equipment, net
|
13,761,917
|
12,617,741
|
||||||
Accrued
income receivable
|
7,712,138
|
7,871,365
|
||||||
Deferred
income taxes
|
690,829
|
-
|
||||||
Other
assets
|
3,105,341
|
2,989,090
|
||||||
Total
assets
|
$ |
840,050,621
|
$ |
838,852,988
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Deposits
|
||||||||
Demand,
noninterest bearing
|
$ |
71,606,140
|
$ |
77,638,264
|
||||
NOW
accounts
|
154,583,055
|
158,584,115
|
||||||
Savings
and money market
|
160,263,988
|
159,401,753
|
||||||
Time,
$100,000 and over
|
106,054,915
|
102,230,631
|
||||||
Other
time
|
178,147,623
|
182,501,710
|
||||||
Total
deposits
|
670,655,721
|
680,356,473
|
||||||
Federal
funds purchased and securities sold under agreements
|
||||||||
to
repurchase
|
49,425,759
|
34,727,897
|
||||||
Other
short-term borrowings
|
1,286,770
|
1,470,116
|
||||||
FHLB
term advances
|
2,000,000
|
2,000,000
|
||||||
Dividends
payable
|
2,545,987
|
2,450,503
|
||||||
Deferred
income taxes
|
-
|
1,187,948
|
||||||
Accrued
expenses and other liabilities
|
4,064,406
|
3,736,739
|
||||||
Total
liabilities
|
729,978,643
|
725,929,676
|
||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Common
stock, $2 par value, authorized 18,000,000 shares; 9,429,580
and 9,425,013
shares issued and outstanding at June 30, 2007 and December 31,
2006,
respectively
|
18,859,160
|
18,850,026
|
||||||
Additional
paid-in capital
|
22,588,691
|
22,498,904
|
||||||
Retained
earnings
|
66,114,331
|
65,856,627
|
||||||
Accumulated
other comprehensive income, net unrealized gain on securities
available-for-sale
|
2,509,796
|
5,717,755
|
||||||
Total
stockholders' equity
|
110,071,978
|
112,923,312
|
||||||
Total
liabilities and stockholders' equity
|
$ |
840,050,621
|
$ |
838,852,988
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
Interest
and dividend income:
|
||||||||||||||||
Loans
|
$ |
7,864,594
|
$ |
7,357,897
|
$ |
15,437,801
|
$ |
14,559,841
|
||||||||
Securities
|
||||||||||||||||
Taxable
|
2,322,316
|
2,127,842
|
4,659,405
|
4,168,073
|
||||||||||||
Tax-exempt
|
1,189,988
|
1,040,194
|
2,384,314
|
2,076,557
|
||||||||||||
Federal
funds sold
|
149,213
|
92,691
|
179,390
|
103,994
|
||||||||||||
Dividends
|
383,982
|
359,005
|
774,550
|
698,779
|
||||||||||||
Total
interest income
|
11,910,093
|
10,977,629
|
23,435,460
|
21,607,244
|
||||||||||||
Interest
expense:
|
||||||||||||||||
Deposits
|
5,483,677
|
4,968,077
|
10,808,882
|
9,404,262
|
||||||||||||
Other
borrowed funds
|
522,757
|
257,605
|
1,014,917
|
600,224
|
||||||||||||
Total
interest expense
|
6,006,434
|
5,225,682
|
11,823,799
|
10,004,486
|
||||||||||||
Net
interest income
|
5,903,659
|
5,751,947
|
11,611,661
|
11,602,758
|
||||||||||||
Provision
(credit) for loan losses
|
143,877
|
(302,854 | ) |
153,605
|
(273,230 | ) | ||||||||||
Net
interest income after provision (credit) for loan losses
|
5,759,782
|
6,054,801
|
11,458,056
|
11,875,988
|
||||||||||||
Non-interest
income:
|
||||||||||||||||
Trust
department income
|
721,320
|
389,676
|
1,104,665
|
753,078
|
||||||||||||
Service
fees
|
474,593
|
497,729
|
903,207
|
905,051
|
||||||||||||
Securities
gains, net
|
452,554
|
270,830
|
906,077
|
515,308
|
||||||||||||
Gain
on sale of loans held for sale
|
195,004
|
172,521
|
298,105
|
283,987
|
||||||||||||
Merchant
and ATM fees
|
144,611
|
133,160
|
282,285
|
276,220
|
||||||||||||
Gain
on foreclosure of real estate
|
—
|
—
|
—
|
471,469
|
||||||||||||
Other
|
142,783
|
134,651
|
284,661
|
286,193
|
||||||||||||
Total
non-interest income
|
2,130,865
|
1,598,567
|
3,778,999
|
3,491,306
|
||||||||||||
Non-interest
expense:
|
||||||||||||||||
Salaries
and employee benefits
|
2,563,314
|
2,372,072
|
5,063,267
|
4,787,278
|
||||||||||||
Data
processing
|
557,915
|
582,175
|
1,108,357
|
1,082,277
|
||||||||||||
Occupancy
expenses
|
300,084
|
287,920
|
621,488
|
597,879
|
||||||||||||
Other
operating expenses
|
731,223
|
715,330
|
1,434,372
|
1,384,961
|
||||||||||||
Total
non-interest expense
|
4,152,536
|
3,957,497
|
8,227,484
|
7,852,395
|
||||||||||||
Income
before income taxes
|
3,738,111
|
3,695,871
|
7,009,571
|
7,514,899
|
||||||||||||
Income
tax expense
|
910,680
|
931,053
|
1,661,126
|
1,837,714
|
||||||||||||
Net
income
|
$ |
2,827,431
|
$ |
2,764,818
|
$ |
5,348,445
|
$ |
5,677,185
|
||||||||
Basic
and diluted earnings per share
|
$ |
0.30
|
$ |
0.29
|
$ |
0.57
|
$ |
0.60
|
||||||||
Declared
dividends per share
|
$ |
0.27
|
$ |
0.26
|
$ |
0.54
|
$ |
0.52
|
||||||||
Comprehensive
income (loss)
|
$ | (54,376 | ) | $ |
688,961
|
$ |
2,140,486
|
$ |
2,799,602
|
Six
Months Ended
|
||||||||
June
30,
|
||||||||
2007
|
2006
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net
income
|
$ |
5,348,445
|
$ |
5,677,185
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Provision
(credit) for loan losses
|
153,605
|
(273,230 | ) | |||||
Amortization
and accretion
|
(97,359 | ) |
115,521
|
|||||
Depreciation
|
495,565
|
477,208
|
||||||
Provision
for deferred taxes
|
5,264
|
151,694
|
||||||
Securities
gains, net
|
(906,077 | ) | (515,308 | ) | ||||
Gain
on foreclosure of real estate
|
—
|
(471,469 | ) | |||||
Change
in assets and liabilities:
|
||||||||
Increase
in loans held for sale
|
(1,568,328 | ) | (399,389 | ) | ||||
Decrease
in accrued income receivable
|
159,227
|
66,722
|
||||||
Increase
in other assets
|
(116,251 | ) | (231,553 | ) | ||||
Increase
in accrued expenses and other liabilities
|
327,667
|
1,831,774
|
||||||
Net
cash provided by operating activities
|
3,801,758
|
6,429,155
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchase
of securities available-for-sale
|
(37,789,276 | ) | (30,273,695 | ) | ||||
Proceeds
from sale of securities available-for-sale
|
4,383,029
|
3,765,005
|
||||||
Proceeds
from maturities and calls of securities available-for-sale
|
32,789,825
|
21,891,088
|
||||||
Net
decrease in interest bearing deposits in financial
institutions
|
533,783
|
1,610,394
|
||||||
Net
decrease (increase) in federal funds sold
|
13,100,000
|
(10,850,000 | ) | |||||
Net
decrease (increase) in loans
|
(12,351,126 | ) |
11,042,775
|
|||||
Purchase
of bank premises and equipment
|
(1,639,741 | ) | (1,004,012 | ) | ||||
Net
cash used in investing activities
|
(973,506 | ) | (3,818,445 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Increase
(decrease) in deposits
|
(9,700,752 | ) |
4,109,298
|
|||||
Increase
in federal funds purchased and securities sold under agreements
to
repurchase
|
14,697,862
|
1,327,947
|
||||||
Decrease
in other borrowings, net
|
(183,346 | ) | (2,831,173 | ) | ||||
Dividends
paid
|
(4,995,257 | ) | (4,803,828 | ) | ||||
Proceeds
from issuance of common stock
|
98,921
|
127,013
|
||||||
Net
cash used in financing activities
|
(82,572 | ) | (2,070,743 | ) | ||||
Net
increase in cash and cash equivalents
|
2,745,680
|
539,967
|
||||||
CASH
AND DUE FROM BANKS
|
||||||||
Beginning
|
16,510,082
|
18,092,139
|
||||||
Ending
|
$ |
19,255,762
|
$ |
18,632,106
|
||||
Cash
payments for:
|
||||||||
Interest
|
$ |
12,207,048
|
$ |
9,230,172
|
||||
Income
taxes
|
1,567,209
|
1,867,780
|
1.
|
Significant
Accounting Policies
|
2.
|
Dividends
|
3.
|
Earnings
Per Share
|
4.
|
Off-Balance
Sheet Arrangements
|
5.
|
New
Accounting Pronouncements
|
|
·
|
Accounting
policy regarding classification of interest and
penalties:
|
|
·
|
Unrecognized
tax benefits as of date of
adoption:
|
|
·
|
Total
interest and penalties recognized:
|
|
·
|
Uncertainty
on tax position:
|
|
·
|
Open
tax years:
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
|
·
|
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
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 flatter or slightly inverted since June 30,
2006. Banks have historically earned higher levels of net
interest income by investing in intermediate and 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 for the remainder of 2007, the Company’s net interest margin may
continue to compress.
|
|
·
|
If
interest rates continue to rise, maintaining net interest income
revenues
presents a challenge to the Company in 2007. Continued
increases in interest rates may negatively impact the Company’s net
interest margin particularly if existing trends of interest expense
increases more quickly than interest income continue. 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, and
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
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 June 30, 2007. The Company focuses on stocks that have
historically paid dividends that may lessen the negative effects
of a bear
market.
|
June
30, 2007
|
March
31, 2007
|
Years
Ended December 31,
|
||||||||||||||||||||||||||||||
3
Months Ended
|
6
Months Ended
|
3
Months Ended
|
2006
|
2005
|
||||||||||||||||||||||||||||
Company
|
Company
|
Company
|
Industry*
|
Company
|
Industry
|
Company
|
Industry
|
|||||||||||||||||||||||||
Return
on assets
|
1.33 | % | 1.27 | % | 1.21 | % | 1.21 | % | 1.34 | % | 1.28 | % | 1.40 | % | 1.28 | % | ||||||||||||||||
Return
on equity
|
10.09 | % | 9.54 | % | 9.00 | % | 11.44 | % | 9.99 | % | 12.34 | % | 10.57 | % | 12.46 | % | ||||||||||||||||
Net
interest margin
|
3.31 | % | 3.28 | % | 3.27 | % | 3.32 | % | 3.29 | % | 3.31 | % | 3.56 | % | 3.49 | % | ||||||||||||||||
Efficiency
ratio
|
51.68 | % | 53.46 | % | 55.40 | % | 57.56 | % | 52.27 | % | 56.79 | % | 49.09 | % | 57.24 | % | ||||||||||||||||
Capital
ratio
|
13.19 | % | 13.28 | % | 13.40 | % | 8.23 | % | 13.38 | % | 8.23 | % | 13.21 | % | 8.25 | % |
|
·
|
Return
on Assets
|
|
·
|
Return
on Equity
|
|
·
|
Net
Interest Margin
|
|
·
|
Efficiency
Ratio
|
|
·
|
Capital
Ratio
|
AVERAGE
BALANCE SHEETS AND INTEREST RATES
|
||||||||||||||||||||||||
Three
Months Ended June 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
ASSETS
|
Average
|
Revenue/
|
Yield/
|
Average
|
Revenue/
|
Yield/
|
||||||||||||||||||
(dollars
in thousands)
|
balance
|
expense
|
rate
|
balance
|
expense
|
rate
|
||||||||||||||||||
Interest-earning
assets
|
||||||||||||||||||||||||
Loans
1
|
||||||||||||||||||||||||
Commercial
|
$ |
77,252
|
$ |
1,542
|
7.98 | % | $ |
70,770
|
$ |
1,346
|
7.61 | % | ||||||||||||
Agricultural
|
32,645
|
699
|
8.56 | % |
33,197
|
685
|
8.25 | % | ||||||||||||||||
Real
estate
|
317,904
|
5,273
|
6.63 | % |
308,940
|
4,899
|
6.34 | % | ||||||||||||||||
Installment
and other
|
22,788
|
351
|
6.16 | % |
28,306
|
428
|
6.05 | % | ||||||||||||||||
Total
loans (including fees)
|
$ |
450,589
|
$ |
7,865
|
6.98 | % | $ |
441,213
|
$ |
7,358
|
6.67 | % | ||||||||||||
|
||||||||||||||||||||||||
Investment
securities
|
||||||||||||||||||||||||
Taxable
|
$ |
208,443
|
$ |
2,445
|
4.69 | % | $ |
209,964
|
$ |
2,222
|
4.23 | % | ||||||||||||
Tax-exempt
2
|
135,463
|
2,215
|
6.54 | % |
122,321
|
1,954
|
6.39 | % | ||||||||||||||||
Total
investment securities
|
$ |
343,906
|
$ |
4,660
|
5.42 | % | $ |
332,285
|
$ |
4,176
|
5.03 | % | ||||||||||||
|
||||||||||||||||||||||||
Interest
bearing deposits with banks
|
$ |
1,016
|
$ |
11
|
4.33 | % | $ |
2,538
|
$ |
35
|
5.52 | % | ||||||||||||
Federal
funds sold
|
11,152
|
149
|
5.34 | % |
7,396
|
93
|
5.03 | % | ||||||||||||||||
Total
interest-earning assets
|
$ |
806,663
|
$ |
12,685
|
6.29 | % | $ |
783,432
|
$ |
11,662
|
5.95 | % | ||||||||||||
|
||||||||||||||||||||||||
Non-interest-earning
assets
|
43,022
|
36,184
|
||||||||||||||||||||||
|
||||||||||||||||||||||||
TOTAL
ASSETS
|
$ |
849,685
|
$ |
819,616
|
AVERAGE
BALANCE SHEETS AND INTEREST RATES
|
||||||||||||||||||||||||
Three
Months Ended June 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
Average
|
Revenue/
|
Yield/
|
Average
|
Revenue/
|
Yield/
|
||||||||||||||||||
(dollars
in thousands)
|
balance
|
expense
|
rate
|
balance
|
expense
|
rate
|
||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
Savings,
NOW accounts, and money markets
|
$ |
328,199
|
$ |
2,212
|
2.70 | % | $ |
325,353
|
$ |
2,153
|
2.65 | % | ||||||||||||
Time
deposits < $100,000
|
179,789
|
1,986
|
4.42 | % |
182,333
|
1,721
|
3.78 | % | ||||||||||||||||
Time
deposits> $100,000
|
103,867
|
1,285
|
4.95 | % |
100,740
|
1,094
|
4.34 | % | ||||||||||||||||
Total
deposits
|
$ |
611,855
|
$ |
5,483
|
3.58 | % | $ |
608,426
|
$ |
4,968
|
3.27 | % | ||||||||||||
Other
borrowed funds
|
47,568
|
523
|
4.40 | % |
26,270
|
258
|
3.93 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
$ |
659,423
|
$ |
6,006
|
3.64 | % | $ |
634,696
|
$ |
5,226
|
3.29 | % | ||||||||||||
Non-interest-bearing
liabilities
|
||||||||||||||||||||||||
Demand
deposits
|
$ |
70,209
|
$ |
69,805
|
||||||||||||||||||||
Other
liabilities
|
7,994
|
6,927
|
||||||||||||||||||||||
Stockholders'
equity
|
$ |
112,109
|
$ |
108,188
|
||||||||||||||||||||
TOTAL
LIABILITIES AND
|
||||||||||||||||||||||||
STOCKHOLDERS'
EQUITY
|
$ |
849,685
|
$ |
819,616
|
||||||||||||||||||||
Net
interest: income / margin
|
$ |
6,679
|
3.31 | % | $ |
6,436
|
3.29 | % | ||||||||||||||||
Spread
Analysis
|
||||||||||||||||||||||||
Interest
income/average assets
|
$ |
12,685
|
5.97 | % | $ |
11,662
|
5.69 | % | ||||||||||||||||
Interest
expense/average assets
|
6,006
|
2.83 | % |
5,226
|
2.55 | % | ||||||||||||||||||
Net
interest income/average assets
|
6,679
|
3.14 | % |
6,436
|
3.14 | % |
ASSETS
|
||||||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||
AVERAGE
BALANCE SHEETS AND INTEREST RATES
|
||||||||||||||||||||||||
Six
Months Ended June 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Average
|
Revenue/
|
Yield/
|
Average
|
Revenue/
|
Yield/
|
|||||||||||||||||||
balance
|
expense
|
rate
|
balance
|
expense
|
rate
|
|||||||||||||||||||
Loans
1
|
||||||||||||||||||||||||
Commercial
|
$ |
76,715
|
$ |
3,057
|
7.97 | % | $ |
70,631
|
$ |
2,604
|
7.37 | % | ||||||||||||
Agricultural
|
32,184
|
1,359
|
8.45 | % |
33,107
|
1,331
|
8.04 | % | ||||||||||||||||
Real
estate
|
313,738
|
10,313
|
6.57 | % |
309,065
|
9,682
|
6.27 | % | ||||||||||||||||
Installment
and other
|
23,139
|
709
|
6.13 | % |
31,196
|
943
|
6.05 | % | ||||||||||||||||
Total
loans (including fees)
|
$ |
445,776
|
$ |
15,438
|
6.93 | % | $ |
443,999
|
$ |
14,560
|
6.56 | % | ||||||||||||
Investment
securities
|
||||||||||||||||||||||||
Taxable
|
$ |
210,646
|
$ |
4,906
|
4.66 | % | $ |
208,125
|
$ |
4,340
|
4.17 | % | ||||||||||||
Tax-exempt
2
|
135,986
|
4,440
|
6.53 | % |
122,348
|
3,893
|
6.36 | % | ||||||||||||||||
Total
investment securities
|
$ |
346,632
|
$ |
9,346
|
5.39 | % | $ |
330,473
|
$ |
8,233
|
4.98 | % | ||||||||||||
Interest
bearing deposits with banks
|
$ |
2,225
|
$ |
26
|
2.34 | % | $ |
4,846
|
$ |
73
|
3.01 | % | ||||||||||||
Federal
funds sold
|
7,153
|
179
|
5.00 | % |
4,088
|
103
|
5.04 | % | ||||||||||||||||
Total
interest-earning assets
|
$ |
801,786
|
$ |
24,989
|
6.23 | % | $ |
783,406
|
$ |
22,969
|
5.86 | % | ||||||||||||
|
||||||||||||||||||||||||
Total
noninterest-earning assets
|
$ |
42,408
|
$ |
34,194
|
||||||||||||||||||||
TOTAL
ASSETS
|
$ |
844,194
|
$ |
817,600
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
(dollars
in thousands)
|
||||||||||||||||||||||||
AVERAGE
BALANCE SHEETS AND INTEREST RATES
|
||||||||||||||||||||||||
Six
Months Ended June 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Average
|
Revenue/
|
Yield/
|
Average
|
Revenue/
|
Yield/
|
|||||||||||||||||||
balance
|
expense
|
rate
|
balance
|
expense
|
rate
|
|||||||||||||||||||
Interest-bearing
liabilities
|
||||||||||||||||||||||||
Deposits
|
||||||||||||||||||||||||
Savings,
NOW accounts, and money markets
|
$ |
323,391
|
$ |
4,317
|
2.67 | % | $ |
320,715
|
$ |
3,979
|
2.48 | % | ||||||||||||
Time
deposits < $100,000
|
180,942
|
3,930
|
4.34 | % |
181,526
|
3,321
|
3.66 | % | ||||||||||||||||
Time
deposits> $100,000
|
104,576
|
2,562
|
4.90 | % |
100,272
|
2,104
|
4.20 | % | ||||||||||||||||
Total
deposits
|
$ |
608,909
|
$ |
10,809
|
3.55 | % | $ |
602,513
|
$ |
9,404
|
3.12 | % | ||||||||||||
Other
borrowed funds
|
45,747
|
1,015
|
4.44 | % |
30,824
|
600
|
3.89 | % | ||||||||||||||||
Total
interest-bearing liabilities
|
$ |
654,656
|
$ |
11,824
|
3.61 | % | $ |
633,337
|
$ |
10,004
|
3.16 | % | ||||||||||||
Noninterest-bearing
liabilities
|
||||||||||||||||||||||||
Demand
deposits
|
$ |
69,494
|
$ |
68,764
|
||||||||||||||||||||
Other
liabilities
|
8,007
|
6,754
|
||||||||||||||||||||||
Stockholders'
equity
|
$ |
112,091
|
$ |
108,745
|
||||||||||||||||||||
TOTAL
LIABILITIES AND
|
||||||||||||||||||||||||
STOCKHOLDERS'
EQUITY
|
$ |
844,194
|
$ |
817,600
|
||||||||||||||||||||
Net
interest income / margin
|
$ |
13,165
|
3.28 | % | $ |
12,965
|
3.31 | % | ||||||||||||||||
Spread
Analysis
|
||||||||||||||||||||||||
Interest
income/average assets
|
$ |
24,989
|
5.92 | % | $ |
22,969
|
5.62 | % | ||||||||||||||||
Interest
expense/average assets
|
11,824
|
2.80 | % |
10,004
|
2.45 | % | ||||||||||||||||||
Net
interest income/average assets
|
13,165
|
3.12 | % |
12,965
|
3.17 | % |
|
·
|
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
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market
Risk
|
Item
4.
|
Controls
and Procedures
|
PART
II.
|
OTHER
INFORMATION
|
Item
1.
|
Legal
Proceedings
|
|
Not
applicable
|
Item
1.a.
|
Risk
Factors
|
|
No
changes
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds
|
|
Not
applicable
|
Item
3.
|
Defaults
Upon Senior Securities
|
|
Not
applicable
|
Item
4.
|
Submission
of Matters to a Vote of Security
Holders
|
|
Annual
Shareholders’ Meeting
|
Votes
|
||||||||
In
Favor
|
Withheld
|
|||||||
Steven
D. Forth
|
7,794,382
|
62,896
|
||||||
Daniel
L. Krieger
|
7,794,382
|
63,196
|
||||||
Thomas
H. Pohlman
|
7,794,382
|
62,896
|
||||||
Larry
A. Raymon
|
7,794,382
|
62,896
|
||||||
Frederick
C. Samuelson
|
7,794,382
|
62,896
|
||||||
Marvin
J. Walter
|
7,794,382
|
62,896
|
Item
5.
|
Other
Information
|
|
None
|
Item
6.
|
Exhibits
|
|
(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:
August 8, 2007
|
By:
|
/s/
Thomas H. Pohlman
|
||
Thomas
H. Pohlman, President
|
||||
Principal
Executive Officer
|
||||
By:
|
/s/
John P. Nelson
|
|||
John
P. Nelson, Vice President
|
||||
Principal
Financial Officer
|