x |
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
For the quarterly period ended March 31, 2008 |
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
Washington
(State
or other jurisdiction of
incorporation
or organization)
|
91-1815009
(IRS
Employer Identification No.)
|
1101
S. Boone Street
Aberdeen,
Washington 98520-5244
(360)
533-8870
(Address,
including zip code, and telephone number,
including
area code, of Registrant's principal executive
offices)
|
PART
I
|
FINANCIAL
INFORMATION
|
3
|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
3
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
||
MARCH
31, 2008 AND DECEMBER 31, 2007
|
3
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
||
THREE
MONTHS ENDED MARCH 31, 2008 AND 2007
|
4
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
||
THREE
MONTHS ENDED MARCH 31, 2008 AND 2007
|
5
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF SHAREHOLDERS'
|
||
EQUITY
THREE MONTHS ENDED MARCH 31, 2008 AND 2007
|
6
|
|
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
7
|
|
ITEM
2.
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL
|
|
CONDITION
AND RESULTS OF OPERATIONS
|
13
|
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT
|
|
MARKET
RISK
|
20
|
|
ITEM
4.
|
CONTROLS
AND PROCEDURES
|
21
|
PART
II
|
OTHER
INFORMATION
|
22
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
22
|
ITEM
1A.
|
RISK
FACTORS
|
22
|
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND
|
|
USE
OF PROCEEDS
|
22
|
|
ITEM
3.
|
DEFAULTS
UPON SENIOR SECURITIES
|
22
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
22
|
ITEM
5.
|
OTHER
INFORMATION
|
23
|
ITEM
6.
|
EXHIBITS
|
23
|
SIGNATURES
|
23
|
March 31, 2008
|
December 31, 2007
|
||||||
Assets
|
|||||||
Cash
and due from banks
|
$
|
14,512
|
$
|
15,044
|
|||
Interest
bearing balances with banks
|
228
|
253
|
|||||
Federal
funds sold
|
2,910
|
—
|
|||||
Investment
securities available-for-sale
|
45,676
|
42,912
|
|||||
Investment
securities held-to-maturity
|
4,300
|
4,329
|
|||||
Federal
Home Loan Bank stock, at cost
|
1,858
|
1,858
|
|||||
Loans
held for sale
|
17,004
|
17,162
|
|||||
Loans
|
445,119
|
438,911
|
|||||
Allowance
for credit losses
|
5,120
|
5,007
|
|||||
Loans,
net
|
439,999
|
433,904
|
|||||
Premises
and equipment
|
16,270
|
15,427
|
|||||
Accrued
interest receivable
|
3,102
|
3,165
|
|||||
Cash
surrender value of life insurance
|
15,266
|
15,111
|
|||||
Goodwill
|
11,282
|
11,282
|
|||||
Other
intangible assets
|
1,693
|
1,728
|
|||||
Other
assets
|
3,230
|
3,412
|
|||||
Total
assets
|
$
|
577,330
|
$
|
565,587
|
|||
Liabilities
and Shareholders' Equity
|
|||||||
Deposits:
|
|||||||
Non-interest
bearing
|
$
|
84,186
|
$
|
86,883
|
|||
Interest-bearing
|
380,624
|
380,453
|
|||||
Total
deposits
|
464,810
|
467,336
|
|||||
Accrued
interest payable
|
1,158
|
1,399
|
|||||
Secured
borrowings
|
1,404
|
1,418
|
|||||
Short-term
borrowings
|
25,500
|
10,125
|
|||||
Long-term
borrowings
|
15,000
|
12,500
|
|||||
Junior
subordinated debentures
|
13,403
|
13,403
|
|||||
Other
liabilities
|
3,507
|
8,707
|
|||||
Total
liabilities
|
524,782
|
514,888
|
|||||
Commitments
and Contingencies (Note 6)
|
|||||||
Shareholders'
Equity
|
|||||||
Common
Stock (par value $1); 25,000,000 shares authorized; 6,645,917 shares
issued and outstanding at March 31, 2008 and 6,606,545 at
December 31, 2007
|
6,646
|
6,607
|
|||||
Additional
paid-in capital
|
27,685
|
27,163
|
|||||
Retained
earnings
|
18,855
|
17,807
|
|||||
Accumulated
other comprehensive loss
|
(638
|
)
|
(878
|
)
|
|||
Total
shareholders' equity
|
52,548
|
50,699
|
|||||
Total
liabilities and shareholders' equity
|
$
|
577,330
|
$
|
565,587
|
Three Months Ended
March 31,
|
|||||||
2008
|
|
2007
|
|
||||
Interest
and dividend income
|
|||||||
Loans
|
$
|
8,352
|
$
|
9,274
|
|||
Investment
securities and FHLB dividends
|
576
|
467
|
|||||
Deposits
with banks and federal funds sold
|
9
|
70
|
|||||
Total
interest and dividend income
|
8,937
|
9,811
|
|||||
Interest
Expense
|
|||||||
Deposits
|
2,994
|
3,281
|
|||||
Other
borrowings
|
498
|
525
|
|||||
Total
interest expense
|
3,492
|
3,806
|
|||||
Net
Interest Income
|
5,445
|
6,005
|
|||||
Provision
for credit losses
|
126
|
257
|
|||||
Net
interest income after provision for credit losses
|
5,319
|
5,748
|
|||||
Non-interest
Income
|
|||||||
Service
charges on deposits
|
374
|
359
|
|||||
Gain
on sales of loans
|
459
|
425
|
|||||
Loss
on sale of investments available-for-sale
|
—
|
(20
|
)
|
||||
Loss
on sale of premises and equipment
|
—
|
(5
|
)
|
||||
Other
operating income
|
377
|
187
|
|||||
Total
non-interest income
|
1,210
|
946
|
|||||
Non-interest
Expense
|
|||||||
Salaries
and employee benefits
|
3,142
|
2,959
|
|||||
Occupancy
and equipment
|
694
|
581
|
|||||
Other
|
1,321
|
1,280
|
|||||
Total
non-interest expense
|
5,157
|
4,820
|
|||||
Income
before income taxes
|
1,372
|
1,874
|
|||||
Provision
for income taxes
|
324
|
340
|
|||||
Net
Income
|
$
|
1,048
|
$
|
1,534
|
|||
Earnings
per common share:
|
|||||||
Basic
|
$
|
0.16
|
$
|
0.23
|
|||
Diluted
|
0.16
|
0.23
|
|||||
Weighted
Average shares outstanding:
|
|||||||
Basic
|
6,635,082
|
6,558,613
|
|||||
Diluted
|
6,660,900
|
6,671,443
|
2008
|
|
2007
|
|
||||
OPERATING
ACTIVITIES
|
|||||||
Net
income
|
$
|
1,048
|
$
|
1,534
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
Provision
for credit losses
|
126
|
257
|
|||||
Depreciation
and amortization
|
409
|
336
|
|||||
Origination
of loans held for sale
|
(26,533
|
)
|
(26,804
|
)
|
|||
Proceeds
of loans held for sale
|
27,150
|
26,680
|
|||||
Gain
on sales of loans
|
(459
|
)
|
(425
|
)
|
|||
Loss
on sale of investments available for sale
|
—
|
20
|
|||||
Gain
on sale of premises and equipment
|
—
|
5
|
|||||
(Increase)
decrease in accrued interest receivable
|
63
|
(349
|
)
|
||||
Decrease
in accrued interest payable
|
(241
|
)
|
(234
|
)
|
|||
Other,
net
|
(327
|
)
|
(133
|
)
|
|||
Net
cash provided by operating activities
|
1,236
|
887
|
|||||
INVESTING
ACTIVITIES
|
|||||||
Net
(increase) decrease in federal funds sold
|
(2,910
|
)
|
13,420
|
||||
Net
decrease in interest bearing balances with banks
|
25
|
5,147
|
|||||
Purchase
of securities available-for-sale
|
(5,105
|
)
|
(1,498
|
)
|
|||
Proceeds
from maturities of investments held-to-maturity
|
28
|
60
|
|||||
Proceeds
from sales of securities available-for-sale
|
—
|
805
|
|||||
Proceeds
from maturities of securities available-for-sale
|
2,659
|
1,384
|
|||||
Net
increase in loans
|
(6,227
|
)
|
(21,910
|
)
|
|||
Additions
to premises and equipment
|
(1,157
|
)
|
(1,055
|
)
|
|||
Proceeds
from sales of premises and equipment
|
—
|
122
|
|||||
Net
cash used in investing activities
|
(12,687
|
)
|
(3,525
|
)
|
|||
FINANCING
ACTIVITIES
|
|||||||
Net
decrease in deposits
|
(2,526
|
)
|
(1,452
|
)
|
|||
Net
increase in short-term borrowings
|
17,875
|
7,500
|
|||||
Net
decrease in secured borrowings
|
(14
|
)
|
(447
|
)
|
|||
Proceeds
from issuance of long-term borrowings
|
2,500
|
—
|
|||||
Repayments
of long-term borrowings
|
(2,500
|
)
|
—
|
||||
Issuance
of common stock
|
565
|
743
|
|||||
Repurchase
and retirement of common stock
|
(26
|
)
|
—
|
||||
Payment
of cash dividends
|
(4,955
|
)
|
(4,893
|
)
|
|||
Net
cash provided by financing activities
|
10,919
|
1,451
|
|||||
Net
decrease in cash and due from banks
|
(532
|
)
|
(1,187
|
)
|
|||
Cash
and due from Banks
|
|||||||
Beginning
of period
|
15,044
|
14,964
|
|||||
End
of period
|
$
|
14,512
|
$
|
13,777
|
|||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION
|
|||||||
Cash
payments for:
|
|||||||
Interest
|
$
|
3,733
|
$
|
4,040
|
|||
Income
taxes
|
927
|
610
|
|||||
SUPPLEMENTAL
SCHEDULE OF NONCASH INVESTING AND
FINANCING ACTIVITIES
|
|||||||
Change
in fair value of securities available-for-sale, net of tax
|
$
|
222
|
$
|
51
|
|||
Transfer
of securities held-to-maturity to available-for-sale
|
—
|
825
|
|||||
Renewal
of short-term borrowings to long-term borrowings
|
$
|
2,500
|
—
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Loss
|
Total
|
||||||||||||
Balance
January 1, 2007
|
$
|
6,524
|
$
|
26,047
|
$
|
16,731
|
$ |
(318
|
)
|
$
|
48,984
|
|||||
|
||||||||||||||||
Other
comprehensive income:
|
||||||||||||||||
Net
income
|
1,534
|
1,534
|
||||||||||||||
Change
in fair value of securities available-for-sale, net
|
51
|
51
|
||||||||||||||
Comprehensive
income
|
1,585
|
|||||||||||||||
|
||||||||||||||||
Issuance
of common stock
|
25
|
395
|
420
|
|||||||||||||
Stock
options exercised
|
25
|
298
|
323
|
|||||||||||||
Stock
compensation expense
|
30
|
30
|
||||||||||||||
Tax
benefit from exercise of stock Options
|
22
|
22
|
||||||||||||||
|
|
|
|
|
||||||||||||
Balance
March 31, 2007
|
$
|
6,574
|
$
|
26,792
|
$
|
18,265
|
$ |
(267
|
)
|
$
|
51,364
|
|||||
|
||||||||||||||||
Balance
January 1, 2008
|
$
|
6,607
|
$
|
27,163
|
$
|
17,807
|
$ |
(878
|
)
|
$
|
50,699
|
|||||
|
||||||||||||||||
Other
comprehensive income:
|
||||||||||||||||
Net
income
|
1,048
|
1,048
|
||||||||||||||
Change
in fair value of securities available-for-sale, net
|
222
|
222
|
||||||||||||||
Amortization
of unrecognized prior service costs and net gains/losses
|
18
|
18
|
||||||||||||||
Comprehensive
income
|
1,288
|
|||||||||||||||
|
||||||||||||||||
Issuance
of common stock
|
41
|
524
|
565
|
|||||||||||||
Common
stock repurchased and retired
|
(2
|
)
|
(24
|
)
|
(26
|
)
|
||||||||||
Stock
compensation expense
|
22
|
22
|
||||||||||||||
|
|
|
|
|
||||||||||||
Balance
March 31, 2008
|
$
|
6,646
|
$
|
27,685
|
$
|
18,855
|
$ |
(638
|
)
|
$
|
52,548
|
Three
months ended March 31,
|
2008
|
2007
|
|||||
Basic:
|
|||||||
Net
income
|
$
|
1,048
|
$
|
1,534
|
|||
Weighted
average shares outstanding
|
6,635,082
|
6,558,613
|
|||||
Basic
earnings per share
|
$
|
0.16
|
$
|
0.23
|
|||
Diluted:
|
|||||||
Net
income
|
$
|
1,048
|
$
|
1,534
|
|||
Weighted
average shares outstanding
|
6,635,082
|
6,
558,613
|
|||||
Effect
of dilutive stock options
|
25,818
|
112,830
|
|||||
Weighted
average shares outstanding assuming dilution
|
6,660,900
|
6,671,443
|
|||||
Diluted
earnings per share
|
$
|
0.16
|
$
|
0.23
|
|
Amortized
Cost
|
Unrealized
Gains
|
Unrealized
Losses
|
Fair
Value
|
|||||||||
Securities
Held-to-Maturity
|
|||||||||||||
March
31, 2008
|
|||||||||||||
Mortgage-backed
securities
|
$
|
739
|
$
|
9
|
$
|
—
|
$
|
748
|
|||||
State
and municipal securities
|
3,561
|
75
|
—
|
3,636
|
|||||||||
Total
|
$
|
4,300
|
$
|
84
|
$
|
—
|
$
|
4,384
|
|||||
December
31, 2007
|
|||||||||||||
Mortgage-backed
securities
|
$
|
767
|
$
|
—
|
$
|
4
|
$
|
763
|
|||||
State
and municipal securities
|
3,562
|
48
|
5
|
3,605
|
|||||||||
Total
|
$
|
4,329
|
$
|
48
|
$
|
9
|
$
|
4,368
|
Securities
Available-for-Sale
|
|||||||||||||
March
31, 2008
|
|||||||||||||
U.S.
Government securities
|
$
|
1,789
|
$
|
60
|
$
|
—
|
$
|
1,849
|
|||||
State
and municipal securities
|
16,230
|
192
|
158
|
16,264
|
|||||||||
Mortgage-backed
securities
|
23,163
|
165
|
215
|
23,113
|
|||||||||
Corporate
securities
|
1,527
|
11
|
—
|
1,538
|
|||||||||
Mutual
funds
|
3,041
|
—
|
129
|
2,912
|
|||||||||
Total
|
$
|
45,750
|
$
|
428
|
$
|
502
|
$
|
45,676
|
|||||
December
31, 2007
|
|||||||||||||
U.S.
Government securities
|
$
|
3,796
|
$
|
22
|
$
|
—
|
$
|
3,818
|
|||||
State
and municipal securities
|
16,248
|
83
|
195
|
16,136
|
|||||||||
Mortgage-backed
securities
|
18,706
|
23
|
189
|
18,540
|
|||||||||
Corporate
securities
|
1,532
|
—
|
20
|
1,512
|
|||||||||
Mutual
funds
|
3,041
|
—
|
135
|
2,906
|
|||||||||
Total
|
$
|
43,323
|
$
|
128
|
$
|
539
|
$
|
42,912
|
Three Months
Ended
March 31,
|
Twelve Months
Ended
December 31,
|
|||||||||
2008
|
2007
|
2007
|
||||||||
Balance
at beginning of period
|
$
|
5,007
|
$
|
4,033
|
$
|
4,033
|
||||
Provision
for credit losses
|
126
|
257
|
482
|
|||||||
Charge-offs
|
(19
|
)
|
(12
|
)
|
(151
|
)
|
||||
Recoveries
|
6
|
6
|
643
|
|||||||
Net
(charge-offs) recoveries
|
(13
|
)
|
(6
|
)
|
492
|
|||||
Balance
at end of period
|
$
|
5,120
|
$
|
4,284
|
$
|
5,007
|
Shares
|
Weighted
Average
Exercise Price
|
Weighted
Average
Remaining
Contractual
Term (Years)
|
Aggregate
Intrinsic
Value
|
||||||||||
March
31, 2008
|
|||||||||||||
Outstanding
beginning of period
|
627,153
|
$
|
13.80
|
||||||||||
Granted
|
—
|
—
|
|||||||||||
Exercised
|
—
|
—
|
|||||||||||
Forfeited
|
—
|
—
|
|||||||||||
Expired
|
—
|
—
|
|||||||||||
Outstanding
end of period
|
627,153
|
$
|
13.80
|
5.4
|
$
|
439
|
|||||||
Exercisable
end of period
|
489,503
|
$
|
13.38
|
4.4
|
$
|
549
|
|||||||
March
31, 2007
|
|||||||||||||
Outstanding
beginning of period
|
699,729
|
$
|
13.70
|
||||||||||
Granted
|
—
|
—
|
|||||||||||
Exercised
|
(24,326
|
)
|
13.25
|
||||||||||
Forfeited
|
(21,000
|
)
|
17.16
|
||||||||||
Outstanding
end of period
|
654,403
|
$
|
13.60
|
5.8
|
$
|
2,288
|
|||||||
Exercisable
end of period
|
550,695
|
$
|
13.50
|
5.5
|
$
|
1,981
|
2008
|
2007
|
||||||||||||
Shares
|
Weighted
Average Fair
Value
|
Shares
|
Weighted
Average Fair
Value
|
||||||||||
Non-vested
beginning of period
|
176,258
|
$
|
1.98
|
129,206
|
$
|
2.37
|
|||||||
Granted
|
—
|
—
|
—
|
—
|
|||||||||
Vested
|
(38,608
|
)
|
2.57
|
(22,198
|
)
|
2.92
|
|||||||
Forfeited
|
—
|
—
|
(3,300
|
)
|
2.53
|
||||||||
Non-vested
end of period
|
137,650
|
$
|
1.80
|
103,708
|
$
|
2.25
|
Service
Cost
|
$
|
23
|
||
Interest
Cost
|
12
|
|||
Amortization
of prior service cost
|
17
|
|||
Net
periodic pension cost
|
$
|
52
|
Readily Available
Market Prices
Level 1
|
Observable
Market Prices
Level 2
|
Significant
Unobservable
Inputs
Level 3
|
Total
|
||||||||||
Available
for sale securities
|
$
|
4,451
|
$
|
41,225
|
$
|
—
|
$
|
45,676
|
2008
|
2007
|
||||||||||||||||||
Interest
|
Interest
|
||||||||||||||||||
Average
|
Income
|
Avg
|
Average
|
Income
|
Avg
|
||||||||||||||
(dollars in thousands)
|
Balance
|
(Expense)
|
Rate
|
Balance
|
(Expense)
|
Rate
|
|||||||||||||
Interest
Earning Assets
|
|||||||||||||||||||
Loans
(1)
|
$
|
456,233
|
$
|
8,396
|
* |
7.36
|
%
|
$
|
448,754
|
$
|
9,315
|
* |
8.30
|
%
|
|||||
Taxable
securities
|
30,686
|
389
|
5.07
|
25,844
|
296
|
4.58
|
|||||||||||||
Tax-exempt
securities
|
18,119
|
277
|
* |
6.12
|
17,164
|
259
|
* |
6.04
|
|||||||||||
Federal
Home Loan Bank Stock
|
1,858
|
5
|
1.08
|
1,858
|
—
|
—
|
|||||||||||||
Interest
earning balances with banks
|
1,101
|
9
|
3.27
|
5,622
|
70
|
4.98
|
|||||||||||||
Total
interest earning assets
|
$
|
507,997
|
$
|
9,076
|
7.15
|
%
|
$
|
499,242
|
$
|
9,940
|
7.96
|
%
|
|||||||
Cash
and due from banks
|
11,732
|
11,889
|
|||||||||||||||||
Bank
premises and equipment (net)
|
15,667
|
11,952
|
|||||||||||||||||
Other
assets
|
34,181
|
28,477
|
|||||||||||||||||
Allowance
for credit losses
|
(5,057
|
)
|
(4,145
|
)
|
|||||||||||||||
Total
assets
|
$
|
564,520
|
$
|
547,415
|
|||||||||||||||
Interest
Bearing Liabilities
|
|||||||||||||||||||
Savings
and interest bearing demand
|
$
|
202,688
|
$
|
(939
|
)
|
1.85
|
%
|
$
|
191,899
|
$
|
(1,257
|
)
|
2.62
|
%
|
|||||
Time
deposits
|
177,206
|
(2,055
|
)
|
4.64
|
174,197
|
(2,024
|
)
|
4.65
|
|||||||||||
Total
deposits
|
379,894
|
(2,994
|
)
|
3.15
|
366,096
|
(3,281
|
)
|
3.58
|
|||||||||||
|
|||||||||||||||||||
Short-term
borrowings
|
8,126
|
(70
|
)
|
3.45
|
4,560
|
(64
|
)
|
5.61
|
|||||||||||
Long-term
borrowings
|
20,654
|
(199
|
)
|
3.85
|
21,500
|
(204
|
)
|
3.80
|
|||||||||||
Secured
borrowings
|
1,411
|
(25
|
)
|
7.09
|
1,814
|
(32
|
)
|
7.06
|
|||||||||||
Junior
subordinated debentures
|
13,403
|
(204
|
)
|
6.09
|
13,403
|
(225
|
)
|
6.71
|
|||||||||||
Total
borrowings
|
43,594
|
(498
|
)
|
4.57
|
41,277
|
(525
|
)
|
5.09
|
|||||||||||
Total
interest-bearing liabilities
|
$
|
423,488
|
$
|
(3,492
|
)
|
3.30
|
%
|
$
|
407,373
|
$
|
(3,806
|
)
|
3.74
|
%
|
|||||
Demand
deposits
|
82,593
|
84,835
|
|||||||||||||||||
Other
liabilities
|
6,706
|
5,319
|
|||||||||||||||||
Shareholders’
equity
|
51,733
|
49,888
|
|||||||||||||||||
Total
liabilities and shareholders’ equity
|
$
|
564,520
|
$
|
547,415
|
|||||||||||||||
Net
interest income
|
$
|
5,584
|
* |
$
|
6,134
|
* | |||||||||||||
Net
interest spread
|
4.40
|
%
|
4.91
|
%
|
|||||||||||||||
Net
interest margin
|
4.29
|
%
|
4.81
|
%
|
|||||||||||||||
Tax
equivalent adjustment
|
$
|
139
|
* |
$
|
129
|
* |
March 31,
2008
|
December 31,
2007
|
March 31,
2007
|
||||||||
(in
thousands)
|
||||||||||
Accruing
loans past due 90 days or more
|
$
|
119
|
$
|
2,932
|
$
|
9
|
||||
Non-accrual
loans
|
3,934
|
3,479
|
1,810
|
|||||||
Foreclosed
real estate
|
—
|
—
|
—
|
|||||||
TOTAL
|
$
|
4,053
|
$
|
6,411
|
$
|
1,819
|
March 31,
2008
|
December 31,
2007
|
||||||
Commercial
and industrial
|
$
|
110,431
|
$
|
110,499
|
|||
Agricultural
|
16,330
|
17,646
|
|||||
Real
estate mortgage
|
89,347
|
87,094
|
|||||
Real
estate construction
|
97,720
|
93,249
|
|||||
Real
estate commercial
|
140,288
|
137,620
|
|||||
Installment
|
6,123
|
8,140
|
|||||
Credit
cards and other
|
2,491
|
2,506
|
|||||
Less
unearned income
|
(607
|
)
|
(681
|
)
|
|||
Total
Loans
|
462,123
|
456,073
|
|||||
Allowance
for credit losses
|
(5,120
|
)
|
(5,007
|
)
|
|||
Net
Loans
|
$
|
457,003
|
$
|
451,066
|
ITEM 1. |
LEGAL
PROCEEDINGS
|
ITEM 1A. |
RISK
FACTORS
|
ITEM 2. |
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
|
Period
|
Total
Number of
Shares
Purchased
|
Average
Price
Paid Per
Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plan
|
Maximum Number
of Shares that may
yet be Purchased
Under the Plan
|
|||||||||
January
1, 2008 – January 31, 2008
|
2,300
|
$
|
11.50
|
2,300
|
147,700
|
||||||||
February
1, 2008 – February 29, 2008
|
—
|
—
|
—
|
||||||||||
March
1, 2008 – March 31, 2008
|
—
|
—
|
—
|
||||||||||
Total
|
2,300
|
$
|
11.50
|
2,300
|
147,700
|
ITEM 3. |
DEFAULTS
UPON SENIOR SECURITIES
|
ITEM 4. |
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
FOR
|
WITHHELD
|
||||||
4,419,372
|
55,383
|
||||||
Randy
W. Rognlin
|
4,419,361
|
55,394
|
ITEM 5. |
OTHER
INFORMATION
|
ITEM 6. |
EXHIBITS
|
DATED:
May 9, 2008
|
By:
|
/s/
Dennis A. Long
|
|
Dennis
A. Long
|
|||
Chief
Executive Officer
|
|||
By:
|
/s/
Denise Portmann
|
||
Denise
Portmann
|
|||
Chief
Financial Officer
|
EXHIBIT
NO.
|
EXHIBIT
|
|
31.1
|
Certification
of CEO under Rule 13a – 14(a) of the Exchange
Act.
|
|
31.2
|
Certification
of CFO under Rule 13a – 14(a) of the Exchange
Act.
|
|
32
|
Certification
of CEO and CFO under 18 U.S.C. Section
1350.
|