<PAGE>
Exhibit 20
CHIEF EXECUTIVE OFFICER'S MESSAGE
Dear Shareholder:
We are pleased with our second quarter results. As the numbers below
reflect, second quarter earnings per fully diluted share of $0.38 are a 15.15%
increase over the second quarter of 1999. Earnings per share for the first six
months of 2000 compared to the first half of 1999 resulted in a 17.4% increase.
While we are pleased with the financial results, we are also pleased
with several strategic accomplishments that will contribute to future earnings.
As of May 8, all of the banks in the Century South family are operating under
the brand name "Century South Bank." The response to this change, both
internally and externally, has been positive beyond our expectations. Century
South Payroll Systems continues its growth and now has over 50 clients. In May,
newly acquired Lanier National Bank was merged with our Georgia First Bank to
form Century South Bank of Northeast Georgia, which significantly increases our
presence in the Gainesville, Georgia market.
It is a credit to the hard work of our entire team that we are able to
report earnings growth taking place simultaneously with projects of the
magnitude of company-wide branding and the merger of two affiliate banks.
We appreciate your continued support of our company and welcome your
comments and questions.
Sincerely,
Joseph W. Evans
President and
Chief Executive Officer
<PAGE>
Century South Banks, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
<TABLE>
<S> <C> <C>
June 30, June 30,
2000 1999
-------------------------------------------
(amounts in thousands)
Assets
Cash and due from banks $ 48,420 $ 47,237
Federal funds sold 3,860 27,110
Interest-earning deposits in other banks 3,267 3,082
Investment securities 283,491 227,181
Loans, net of unearned income 1,196,905 966,955
Allowance for loan losses (17,448) (14,598)
Premises and equipment, net 32,522 30,251
Other assets 46,753 33,929
-------------------------------------------
Total assets $1,597,770 $1,321,147
===========================================
Liabilities
Noninterest-bearing deposits $ 168,261 $ 153,174
Interest-bearing deposits 1,143,795 988,375
Other short-term borrowings 31,910 11,500
Federal Home Loan Bank advances 87,081 15,553
Long-term debt 29 33
Other liabilities 16,780 12,881
-------------------------------------------
Total liabilities 1,447,856 1,181,516
-------------------------------------------
Shareholders' Equity
Common stock 13,967 13,520
Additional paid-in capital 46,884 40,205
Retained earnings 100,345 88,332
Unearned compensation-restricted stock awards (628) (869)
Common stock in treasury, at cost (6,122) -
Accumulated other comprehensive income (4,532) (1,557)
-------------------------------------------
Total shareholders' equity 149,914 139,631
-------------------------------------------
Total liabilities and shareholders' equity $1,597,770 $1,321,147
===========================================
</TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
<S> <C> <C> <C> <C>
2000 1999 2000 1999
--------------------------------------------------------------
(amounts in thousands, except per share data)
Interest income $33,537 $27,142 $65,191 $53,320
Interest expense 15,320 11,269 29,334 22,082
--------------------------------------------------------------
Net interest income 18,217 15,873 35,857 31,238
Provision for loan losses 662 722 1,345 1,269
Noninterest income 3,529 3,348 6,858 6,620
Noninterest expense 13,293 11,786 26,125 23,689
Income tax expense 2,595 2,161 5,020 4,278
--------------------------------------------------------------
Net income $ 5,196 $ 4,552 $10,225 $ 8,622
==============================================================
Weighted average common shares outstanding
assuming dilution 13,842 13,613 13,814 13,622
Net income per share assuming dilution $ 0.38 $ 0.33 $ 0.74 $ 0.63
Dividends declared per share $ 0.13 $ 0.12 $ 0.26 $ 0.24
</TABLE>
<PAGE>
CenturySouthbanks
-----------------
Inc.
Executive Officers
--------------------------------------------------------------------------------
William H. Anderson, II Chairman
James A. Faulkner Vice Chairman
J. Russell Ivie Vice Chairman
Joseph W. Evans President & CEO
Tony E. Collins Executive Vice President & CAO
Stephen W. Doughty Executive Vice President, CRMO & CFO
J. Thomas Wiley, Jr. Executive Vice President & CBO
E. Max Crook. Executive Vice President
Sidney J. Wooten Executive Vice President
Directors
--------------------------------------------------------------------------------
William H. Anderson, II, Chairman Thomas T. Folger, Jr.
James A. Faulkner, Vice Chairman Quill O. Healey
J. Russell Ivie, Vice Chairman Frank C. Jones
James R. Balkcom, Jr. John B. McKibbon, III
William L. Chandler E. Paul Stringer
Joseph W. Evans
Affiliates
--------------------------------------------------------------------------------
<TABLE>
<C> <S>
Century South Bank of Dahlonega Century South Bank of Lavonia
60 Main Street West 10 Silo Lane
Dahlonega, GA 30533 Lavonia, GA 30553
J. Bronson Lavender, President J. Douglas Cleveland, President
706-864-3314 706-356-8040
Century South Bank of Ellijay Century South Bank of Danielsville
53 Sand Street 220 Courthouse Square
Ellijay, GA 30540 Danielsville, GA 30633
Britt H. Henderson, President L. Banister Sexton, President
706-276-3400 706-795-2121
Century South Bank of Polk County Century South Bank of Central Georgia, N.A.
40 Ocoee Street 502 Mulberry Street
Copperhill, TN 37317 Macon, GA 31210
Sidney J. Wooten, Chief Executive Officer E. Max Crook, Chief Executive Officer
James R. Quintrell, President James A. LaHaise, President
423-496-3261 912-757-2000
Century South Bank of Northeast Georgia, N.A. Century South Bank of the Coastal Region, N.A.
455 Jesse Jewell Parkway 7 East Congress Street
Gainesville, GA 30501 Savannah, GA 31406
Joseph D. Chipman, President Heys E. McMath, III, President
770-535-8000 912-232-3800
Century South Bank of Fannin County, N.A. Century South Bank of Alabama
480 W. First Street 402 Main Street
Blue Ridge, GA 30513 Oxford, AL 36203
Steve M. Eaton, President Joel B. Carter, President
706-632-2075 256-835-1776
Century South Bank of Dawsonville Century South Bank of the Carolinas
136 Highway 400 South 370 North Main Street
Dawsonville, Georgia 30534 Waynesville, NC 28786
J.Clint Hood, President John L. Lewis, President
706-216-5050 828-456-9092
</TABLE>
<PAGE>
Financial Highlights (Unaudited)
Selected Balances
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
As of and for six months
Ended June 30,
<S> <C> <C> <C>
2000 1999* Percentage Change
-----------------------------------------------------------
(amounts in thousands, except per share data)
Loans, net $1,179,457 $ 952,357 23.85%
Deposits 1,312,056 1,141,549 14.94
Total assets 1,597,770 1,321,147 20.94
Shareholders' equity 149,914 139,631 7.36
Net income 10,225 8,622 18.59
Book value per share 10.94 10.66 2.63
Net income per share assuming dilution 0.74 0.63 17.46
Weighted average common shares outstanding
assuming dilution 13,814 13,622 1.41
Nonperforming loans 5,370 4,260 26.06
Other nonperforming assets 3,049 5,174 (41.07)
Financial Ratios
-----------------------------------------------------------------------------------------------------------------------
Return on average assets 1.34% 1.35% (0.74)%
Return on average shareholders' equity 13.96 12.52 11.50
Net interest margin (taxable equivalent) 5.08 5.37 (5.40)
Allowance for loan losses to loans 1.46 1.51 (3.31)
Nonperforming assets to total assets 0.53 0.71 (25.35)
</TABLE>
<PAGE>
SHAREHOLDER INFORMATION
--------------------------------------------------------------------------------
Stock Information
Century South Banks, Inc. ("CSBI") lists its stock for trading on the Nasdaq
National Market tier of The Nasdaq Stock Market under the Symbol "CSBI." Market
price for the quarter ended June 30, 2000:
Three month high ............................. $ 21.75
Three month low .............................. $ 18.50
Closing price ................................ $ 19.375
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Shareholder Services
Shareholders wishing to change the name or address on their stock, to report
lost certificates or to consolidate accounts should contact:
Registrar and Transfer Company
Attn: Investor Relations
10 Commerce Drive
Cranford, New Jersey 07016
(800) 368-5948
--------------------------------------------------------------------------------
Dividend Reinvestment Plan/Cash Contributions
Shareholders wishing to automatically reinvest quarterly dividends into Century
South Banks, Inc. common stock or make voluntary cash contributions should
contact:
Registrar and Transfer Company
Attn: Investor Relations
10 Commerce Drive
Cranford, New Jersey 07016
(800) 368-5948
--------------------------------------------------------------------------------
Investor Relations
Shareholders, analysts, and others seeking financial information on Century
South Banks, Inc. should contact one of the following:
James A. Faulkner Susan J. Anderson Joseph W. Evans
Vice Chairman Senior Vice President, Corporate President & CEO
(706) 864-3915 Controller, Secretary & Treasurer (678) 624-1366
(678) 624136
