Exhibit 13.1
Annual Report to Stockholders
[Revised Statement of Cash Flows]
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
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1999 1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
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<S> <C> <C> <C>
Interest received $ 18,763,094 $ 15,327,426 $ 10,807,007
Other income received 1,998,570 612,881 472,126
Net change in loans held-for-sale (658,303) (802,000) --
Interest paid (8,630,980) (7,432,558) (4,975,588)
Cash paid to suppliers and employees (7,746,344) (5,039,712) (3,797,835)
Income taxes paid (1,261,716 (773,000) (990,584)
---------- --------- ---------
Net cash provided by operating activities $ 2,464,321 $ 1,893,037 $ 1,515,126
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CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities and principal payments on
securities held-to-maturity $ 12,433,085 $ 28,336,313 $ 10,000,000
Proceeds from maturities and principal payments on 1,267,829 41,587,366 6,000,000
securities available-for-sale
Proceeds from sales of securities available-for-sale -- -- 2,000,000
Purchases of securities held-to-maturity (4,932,500) (21,075,395) (18,500,469)
Purchases of securities available-for-sale (1,171,438) (56,616,242) (10,123,110)
Net increase in loans made to customers (55,552,589) (48,171,838) (24,865,877)
Purchase of bank premises and equipment (1,387,586) (777,464) (3,441,580)
----------- --------- -----------
Net cash (used in) investing activities $ (49,343,199) $ (56,717,260) $ (38,931,036)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in demand, NOW, money market and savings
accounts $ 35,745,569 $ 28,500,083 $ 16,489,207
Net increase in time deposits 18,556,265 17,814,931 22,215,747
Net increase in securities sold under agreement to
repurchase 2,110,432 7,769,324 2,562,388
Net increase (decrease) in other borrowed funds 1,900,000 (1,800,000) --
Net proceeds from issuance of capital stock 33,000 2,958,823 --
Cash paid in lieu of fractional shares (3,352) (4,304) (4,560)
------- ------- -------
Net cash provided by financing activities $ 58,341,914 $ 55,238,857 $ 41,262,782
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Increase in cash and cash equivalents $ 11,463,036 $ 414,634 $ 3,846,872
CASH AND CASH EQUIVALENTS:
Beginning 11,251,685 10,837,051 6,990,179
---------- ----------- ---------
Ending $ 22,714,721 $ 11,251,685 $ 10,837,051
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</TABLE>
See Notes to Consolidated Financial Statements.
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<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
<TABLE>
<CAPTION>
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RECONCILIATION OF NET INCOME TO NET CASH 1999 1998 1997
PROVIDED BY OPERATING ACTIVITIES:
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<S> <C> <C> <C>
Net income $2,165,744 $ 1,503,612 $ 1,132,380
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 646,364 433,560 314,345
Provision for loan losses 480,000 450,950 261,500
Deferred tax expense (benefit) (191,579) (159,748) (118,204)
(Gain) on sale of securities -- -- (5,625)
Amortization of security premiums and
accretion of discounts 67,447 75,085 58,509
Origination of loans held-for-sale (73,738,370) (802,000) --
Sale of loans 73,080,067 -- --
(Increase) decrease in other assets (50,244) (55,748) 63,187
Increase (decrease) in other liabilities 112,732 401,100 (280,642)
(Increase) in accrued interest receivable (155,719) (32,173) (327,565)
Increase in accrued interest payable 47,879 78,399 192,381
Loss on disposition of leasehold improvement -- -- 224,860
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 2,464,321 $ 1,893,037 $ 1,515,126
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SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING
ACTIVITIES:
Unrealized gain (loss) on securities $ (815,621) $ 152,412 $ 138,022
Transfer of securities from held-to-maturity to
available-for-sale $ -- 1,165,925 --
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</TABLE>
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