<PAGE>
Exhibit 20
CHIEF EXECUTIVE OFFICER'S MESSAGE
Dear Shareholder:
We are pleased to report to you third quarter earnings for Century South
Banks, Inc. of $5,273,000, or $0.38 per fully diluted share. Our earnings per
share for the quarter represents an 11.8% improvement over the same quarter in
1999. In addition, year-to-date earnings through September 30, 2000 of $1.12
per share is a 15% increase over the first three quarters of the prior year.
While the earnings improvement came in a wide range of areas, we are
particularly pleased with growth in our fee income producing lines of business.
Expanded mortgage operations, growth in the sale of investment products,
increased retail activity, and the introduction of a new consumer checking
product combined to increase fee revenues 32% over the same quarter a year ago.
We are also pleased with our level of credit losses, which through the
third quarter are running at an annualized rate of 0.11%.
As we enter the final quarter of yet another year, I would like to once
again thank you for your investment in Century South Banks, Inc. on behalf of
our entire Company.
Sincerely,
Joseph W. Evans
President and
Chief Executive Officer
<PAGE>
Century South Banks, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
<TABLE>
<CAPTION>
Sept 30, Sept 30,
2000 1999
---------- ----------
(amounts in thousands)
<S> <C> <C>
Assets
Cash and due from banks $ 47,736 $ 44,042
Federal funds sold 2,870 18,980
Interest-earning deposits in other banks 3,120 2,466
Investment securities 281,292 226,777
Loans, net of unearned income 1,217,184 1,002,097
Allowance for loan losses (17,590) (14,958)
Premises and equipment, net 32,458 30,160
Other assets 47,427 33,631
---------- ----------
Total assets $1,614,497 $1,343,195
========== ==========
Liabilities
Noninterest-bearing deposits $ 159,248 $ 153,763
Interest-bearing deposits 1,150,774 982,629
Other short-term borrowings 20,725 11,095
Federal Home Loan Bank advances 108,050 40,523
Long-term debt 27 32
Other liabilities 19,639 12,791
---------- ----------
Total liabilities 1,458,463 1,200,833
---------- ----------
Shareholders' Equity
Common stock 14,039 13,534
Additional paid-in capital 48,191 40,285
Retained earnings 103,828 91,494
Unearned compensation-restricted stock awards (530) (795)
Common stock in treasury, at cost (6,898) -
Accumulated other comprehensive income (2,596) (2,156)
---------- ----------
Total shareholders' equity 156,034 142,362
---------- ----------
Total liabilities and shareholders' equity $1,614,497 $1,343,195
========== ==========
</TABLE>
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
Sept 30, Sept 30,
2000 1999 2000 1999
------- ------- -------- -------
(amounts in thousands, except per share data)
<S> <C> <C> <C> <C>
Interest income $35,355 $27,840 $100,546 $81,160
Interest expense 16,714 11,561 46,048 33,644
------- ------- -------- -------
Net interest income 18,641 16,279 54,498 47,516
Provision for loan losses 653 594 1,998 1,863
Noninterest income 4,186 3,156 11,044 9,776
Noninterest expense 14,292 12,062 40,417 35,751
Income tax expense 2,609 2,203 7,629 6,480
------- ------- -------- -------
Net income $ 5,273 $ 4,576 $ 15,498 $13,198
======= ======= ======== =======
Weighted average common shares outstanding
assuming dilution 13,846 13,602 13,837 13,620
Net income per share assuming dilution $ 0.38 $ 0.34 $ 1.12 $ 0.97
Dividends declared per share $ 0.13 $ 0.12 $ 0.39 $ 0.36
</TABLE>
<PAGE>
CenturySouthbanks
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Inc.
Executive Officers
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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
Heys E. McMath, III Executive Vice President
Sidney J. Wooten Executive Vice President
Directors
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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
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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
53 Sand Street Danielsville
Ellijay, GA 30540 220 Courthouse Square
Britt H. Henderson, President Danielsville, GA 30633
706-276-3400 L. Banister Sexton, President
706-795-2121
Century South Bank of Polk Century South Bank of Central
County Georgia, N.A.
40 Ocoee Street 502 Mulberry Street
Copperhill, TN 37317 Macon, GA 31210
Kim M. Childers, Chief Executive E. Max Crook, Chief Executive
Officer Officer
James R. Quintrell, President James A. LaHaise, President
423-496-3261 912-757-2000
Century South Bank of Northeast Century South Bank of the
Georgia, N.A. 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 Century South Bank of the
Dawsonville 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
<PAGE>
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Selected Balances
--------------------------------------------------------------------------------------------------------------------------
As of and for nine months
ended September 30,
<S> <C> <C> <C>
2000 1999 Percentage Change
----------------------------------------------------------
(amounts in thousands, except per share data)
Loans, net $1,199,594 $ 987,139 21.52%
Deposits 1,310,022 1,136,392 15.28
Total assets 1,614,497 1,343,195 20.20
Shareholders' equity 156,034 142,362 9.60
Net income 15,498 13,198 17.43
Book value per share 11.36 10.85 4.70
Net income per share assuming dilution 1.12 0.97 15.46
Weighted average common shares outstanding
assuming dilution 13,837 13,620 1.59
Nonperforming loans 6,802 4,260 59.67
Other nonperforming assets 1,622 3,518 (53.89)
</TABLE>
<TABLE>
<CAPTION>
Financial Ratios
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Return on average assets 1.33% 1.35% (1.48)%
Return on average shareholders' equity 13.87 12.66 9.56
Net interest margin (taxable equivalent) 5.05 5.34 (5.43)
Allowance for loan losses to loans 1.45 1.49 (2.68)
Nonperforming assets to total assets 0.52 0.58 (10.34)
</TABLE>
Statements made in this report, other than those containing historical
information, are forward-looking statements made pursuant to the safe-harbor
provisions of the Private Securities Litigation Act of 1995. These forward-
looking statements involve a number of risks and uncertainties. Among others,
factors that could cause actual results to differ materially are the following:
fluctuations in interest rates, inflation, competition in the geographic
business areas in which Century South Banks, Inc. ("CSBI") does business, and
development of trends in the general economy; the highly competitive nature of
the banking industry; the dependence on key personnel who have been hired or
retained by CSBI; changes in regulatory requirements which are applicable to
CSBI's business; and the risk factors listed from time to time in CSBI's
Registration Statements filed with the Securities and Exchange Commission.
<PAGE>
SHAREHOLDER INFORMATION
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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 September 30, 2000:
Three month high ......................... $ 21.875
Three month low .......................... $ 17.125
Closing price ............................ $ 18.375
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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
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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) 624-1366
