U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] Quarterly Report under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
[ ] Transition Report under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the transition period from ____________ to _____________
Commission file number: 0-24159
INDEPENDENT COMMUNITY BANKSHARES, INC.
(Exact Name of Small Business Issuer as Specified in its Charter)
Virginia 54-1696103
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
111 West Washington Street
Middleburg, Virginia 20117
(Address of Principal Executive Offices)
(703) 777-6327
(Issuer's Telephone Number, Including Area Code)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
--- ---
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:
1,739,247 shares of common stock, par value $5.00 per share,
outstanding as of October 31, 2000
<PAGE>
INDEPENDENT COMMUNITY BANKSHARES, INC.
INDEX
<TABLE>
<CAPTION>
Part I. Financial Information Page No.
<S> <C>
Item 1. Financial Statements
Consolidated Balance Sheets 3
Consolidated Statements of Income 4
Consolidated Statements of Changes in Shareholders' Equity 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Results of Operation
and Financial Condition 10
Part II. Other Information
Item 1. Legal Proceedings 13
Item 2. Change in Securities 13
Item 3. Defaults upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
</TABLE>
2
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
INDEPENDENT COMMUNITY BANKSHARES, INC.
Consolidated Balance Sheets
(In Thousands)
<TABLE>
<CAPTION>
(Unaudited)
September 30, December 31,
2000 1999
------------ ------------
<S> <C> <C>
Assets:
Cash and due from banks $ 6,945 $ 8,037
Interest-bearing balances in banks 128 87
Temporary investments:
Federal funds sold 7,250 12,139
Other money market investments 697 293
Securities (fair value: September 30, 2000,
$80,514, December 31, 1999, $67,745) 80,452 67,739
Loans held for sale 1,244 1,232
Loans, net 164,060 141,782
Bank premises and equipment, net 6,324 6,285
Other assets 7,107 6,331
------------ ------------
Total assets $ 274,207 $ 243,925
============ ============
Liabilities and Shareholders' Equity:
Liabilities:
Deposits:
Non-interest bearing $ 50,681 $ 44,900
Savings and interest-bearing demand deposits 93,574 97,208
Time deposits 68,560 61,729
------------ ------------
Total deposits $ 212,815 $ 203,837
Securities sold under agreements to
repurchase $ 13,185 $ 10,811
Federal Home Loan Bank advances 20,000 5,000
Other liabilities 3,035 1,202
------------ ------------
Total liabilities $ 249,035 $ 220,850
------------ ------------
Shareholders' Equity:
Common stock par value $5.00 per
share, authorized 10,000,000 shares;
issued and outstanding at September 30, 2000 - 1,739,247
issued and outstanding at December 31, 1999 - 1,778,994 $ 8,696 $ 8,895
Capital surplus 2,556 1,293
Retained earnings 14,961 14,852
Accumulated other comprehensive (loss) (1,041) (1,965)
------------ ------------
Total shareholders' equity $ 25,172 $ 23,075
------------ ------------
Total liabilities and shareholders' equity $ 274,207 $ 243,925
============ ============
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
3
<PAGE>
INDEPENDENT COMMUNITY BANKSHARES, INC.
Consolidated Statements of Income
(In Thousands, Except Per Share Data)
<TABLE>
<CAPTION>
Unaudited Unaudited
-----------------------------------------------------------
For the Nine Months For the Quarter
Ended September 30, Ended September 30,
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Interest Income
Interest and fees on loans $ 10,192 $ 8,625 $ 3,640 $ 3,028
Interest on investment securities
Taxable 18 29 6 8
Exempt from federal income taxes 269 417 87 134
Interest on securities available for sale
Taxable 2,294 1,182 816 421
Exempt from federal income taxes 852 677 289 239
Dividends 165 201 25 74
Interest on federal funds sold and other 142 323 33 149
------------ ------------ ------------ ------------
Total interest income $ 13,932 $ 11,454 $ 4,896 $ 4,053
Interest Expense
Interest on deposits $ 3,838 $ 3,566 $ 1,368 $ 1,205
Interest on FHLB advances 671 212 318 70
Interest on short-term borrowings 464 172 180 80
------------ ------------ ------------ ------------
Total interest expense $ 4,973 $ 3,950 $ 1,866 $ 1,355
Net interest income $ 8,959 $ 7,504 $ 3,030 $ 2,698
Provision for loan losses 325 328 125 124
------------ ------------ ------------ ------------
Net interest income after provision for loan losses $ 8,634 $ 7,176 $ 2,905 $ 2,574
Other Income
Commissions and fees from fiduciary
activities $ 1,172 $ 805 $ 417 $ 293
Service charges on deposit accounts 886 820 274 268
Net gains (losses) on securities
available for sale (1) (11) - -
Other operating income 612 516 227 206
------------ ------------ ------------ ------------
Total other income $ 2,669 $ 2,130 $ 918 $ 767
Other Expense
Advertising $ 247 $ 242 $ 25 $ 81
Salaries and employee benefits 4,083 3,259 1,477 1,132
Net occupancy expense of premises 874 716 273 253
Other operating expenses 1,842 1,633 687 514
------------ ------------ ------------ ------------
Total other expense $ 7,046 $ 5,850 $ 2,462 $ 1,980
------------ ------------ ------------ ------------
Income before income taxes $ 4,257 $ 3,456 $ 1,361 $ 1,361
Income taxes 1,052 823 321 362
------------ ------------ ------------ ------------
Net income $ 3,205 $ 2,633 $ 1,040 $ 999
============ ============ ============ ============
Earnings per weighted average share:
Basic Shares (2000 - 1,741,353, 1999 - 1,778,994)
Net income per share, basic $ 1.84 $ 1.48 $ 0.60 $ 0.56
Diluted Shares (2000 - 1,754,639, 1999 - 1,795,256)
Net income per share, diluted $ 1.83 $ 1.47 $ 0.60 $ 0.55
Dividends per share $ 0.63 $ 0.51 $ 0.21 $ 0.17
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
4
<PAGE>
INDEPENDENT COMMUNITY BANKSHARES, INC.
Consolidated Statement of Changes in Shareholders' Equity
For the Nine Months ended September 30, 2000 and 1999
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Accumulated
Other
Common Capital Comprehensive Retained Comprehensive
Stock Surplus Income (Loss) Earnings Income Total
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Balances - December 31, 1998 $ 8,895 $ 1,293 $ 180 $ 12,495 $ - $ 22,863
Comprehensive Income
Net income 2,633 2,633 2,633
Other comprehensive income,
net of tax:
Unrealized loss on available for
sale securities (1,565)
Reclassification adjustment for
gains realized in net income 7
------------
Other comprehensive income, net of tax (1,558) (1,558) (1,558)
------------
Total comprehensive income $ 1,075
============
Cash dividends declared (909) (909)
------------ ------------ ------------ ------------ ------------
Balances - September 30, 1999 $ 8,895 $ 1,293 $ (1,378) $ 14,219 $ 23,029
============ ============ ============ ============ ============
Balances - December 31, 1999 $ 8,895 $ 1,293 $ (1,965) $ 14,852 $ - $ 23,075
Comprehensive Income
Net income 3,205 3,205 3,205
Other comprehensive income,
net of tax:
Unrealized loss on available for
sale securities 924
Reclassification adjustment for
gains realized in net income -
------------
Purchase of common shares (57,785 shares) (289) (1,038) (1,327)
Issuance of common shares in stock
option plan (2,000) 10 24 34
Issuance of common shares (16,038 shares) 80 277 357
Discretionary transfer from retained earnings 2,000 (2,000) -
Other comprehensive income, net of tax 924 924 924
------------
Total comprehensive income $ 4,129
============
Cash dividends declared (1,096) (1,096)
------------ ------------ ------------ ------------ ------------
Balances - September 30, 2000 $ 8,696 $ 2,556 $ (1,041) $ 14,961 $ 25,172
============ ============ ============ ============ ============
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
5
<PAGE>
INDEPENDENT COMMUNITY BANKSHARES, INC.
Consolidated Statements of Cash Flows
(In Thousands, Unaudited)
<TABLE>
<CAPTION>
For the Nine Months Ended
-------------------------------
September 30, September 30,
2000 1999
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 3,205 $ 2,633
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for loan losses 325 328
Depreciation and amortization 530 490
Net losses on securities available for sale 1 11
Discount accretion and premium amortization on securities, net (9) 63
Net (gains) on sale of assets - (6)
Net loss on sale of other real estate - 5
Originations of loans held for sale (25,935) (22,136)
Proceeds from sales of loans held for sale 25,923 22,903
(Increase) in other assets (941) (2,548)
Increase (decrease) in other liabilities 1,833 (19)
------------ ------------
Net cash provided by operating activities $ 4,932 $ 1,724
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from maturity, principal paydowns and calls on investment securities $ 542 $ 388
Proceeds from maturity, principal paydowns and calls on securities available for sale 3,248 4,693
Proceeds from sale of investment securities - 501
Proceeds from sale of securities available for sale 490 1,988
Proceeds from sale of bank premises and equipment - 117
Purchase of investment securities - (250)
Purchase of securities available for sale (15,584) (15,168)
Net (increase) in loans (22,603) (19,333)
Proceeds from sale of other real estate - 195
Purchases of bank premises and equipment (524) (1,139)
------------ ------------
Net cash (used in) investing activities $ (34,431) $ (28,008)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in demand deposits, NOW accounts, and savings accounts $ 2,147 $ 18,884
Net increase in certificates of deposits 6,831 4,413
Dividends declared (1,096) (909)
Acquisition of common stock (1,327) -
Issuance of common stock in stock option plan 34
Payment on Federal Home Loan Bank advances (16,900) (7,000)
New borrowings for Federal Home Loan Bank advances 31,900 6,000
Increase in securities sold under agreement to repurchase 2,374 4,538
------------ ------------
Net cash provided by financing activities $ 23,963 $ 25,926
Decrease in cash and cash equivalents $ (5,536) $ (358)
CASH AND CASH EQUIVALENTS
Beginning $ 20,556 $ 12,813
------------ ------------
Ending $ 15,020 $ 12,455
============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest paid to depositors $ 3,745 $ 3,740
Income taxes $ 1,252 $ 879
SUPPLEMENTAL DISCLOSURES FOR NON-CASH
INVESTING AND FINANCING ACTIVITIES
Unrealized gain (loss) on securities available for sale $ 1,400 $ (2,359)
Stock issued under merger agreement (16,038 shares) $ 357 $ -
</TABLE>
See Accompanying Notes to Consolidated Financial Statements.
6
<PAGE>
INDEPENDENT COMMUNITY BANKSHARES, INC.
Notes to Consolidated Financial Statements
For the Nine Months Ended September 30, 2000 and 1999
(Unaudited)
Note 1.
In the opinion of management, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of September 30,
2000 and the results of operations and changes in cash flows for the nine months
ended September 30, 2000 and 1999. The statements should be read in conjunction
with the Notes to Consolidated Financial Statements included in the Company's
Annual Report on Form 10-KSB for the year ended December 31, 1999. The results
of operations for the nine month periods ended September 30, 2000 and 1999 are
not necessarily indicative of the results to be expected for the full year.
Note 2. Securities
Securities being held to maturity as of September 30, 2000 are
summarized as follows:
<TABLE>
<CAPTION>
------------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains (Losses) Value
------------------------------------------------------------
(In Thousands)
<S> <C> <C> <C> <C>
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies $ 250 $ - $ (17) $ 233
Obligations of states and
political subdivisions 6,888 80 (1) 6,967
Mortgaged backed securities 94 - - 94
------------ ------------ ------------ ------------
$ 7,232 $ 80 $ (18) $ 7,294
============ ============ ============ ============
</TABLE>
Securities available for sale as of September 30, 2000 are summarized
below:
<TABLE>
<CAPTION>
------------------------------------------------------------
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains (Losses) Value
------------------------------------------------------------
(In Thousands)
<S> <C> <C> <C> <C>
U.S. Treasury securities
and obligations of U.S.
government corporations
and agencies $ 5,825 $ 17 $ (127) $ 5,715
Corporate securities 3,067 113 (249) 2,931
Obligations of states and
political subdivisions 25,171 65 (729) 24,507
Mortgaged backed securities 34,181 38 (692) 33,527
Other 6,549 25 (34) 6,540
------------ ------------ ------------ ------------
$ 74,793 $ 258 $ (1,831) $ 73,220
============ ============ ============ ============
</TABLE>
7
<PAGE>
Note 3.
The consolidated loan portfolio is composed of the following:
<TABLE>
<CAPTION>
---------------------------------
September 30, December 31,
2000 1999
---------------------------------
(In Thousands)
<S> <C> <C>
Commercial, financial and agricultural $ 22,645 $ 19,055
Real estate construction 19,137 12,151
Real estate mortgage 113,059 102,184
Installment loans to individuals 10,944 9,845
------------- -------------
Total loans 165,785 143,235
Less:
Allowance for loan losses (1,725) (1,453)
------------- -------------
Loans, net $ 164,060 $ 141,782
============= =============
</TABLE>
The Company had $180,849 in non-performing assets at September 30,
2000.
Note 4. Reserve for Loan Losses
The following is a summary of transactions in the reserve for loan
losses:
<TABLE>
<CAPTION>
---------------------------------
September 30, December 31,
2000 1999
---------------------------------
(In Thousands)
<S> <C> <C>
Balance at January 1 $ 1,453 $ 1,064
Provision charged to operating expense 325 420
Recoveries added to the reserve 40 120
Loan losses charged to the reserve (93) (151)
------------- -------------
Balance at the end of the period $ 1,725 $ 1,453
============= =============
</TABLE>
8
<PAGE>
Note 5. Earnings Per Share
The following table shows the weighted average number of shares used in
computing earnings per share and the effect on the weighted average number of
shares of potential dilutive common stock. Potential dilutive common stock has
no effect on income available to common shareholders.
<TABLE>
<CAPTION>
September 30, 2000 September 30 , 1999
Per share Per share
Shares Amount Shares Amount
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Basic EPS 1,741,000 $ 1.84 1,778,994 $ 1.48
============ ============
Effect of dilutive
securities:
stock options(1) 13,639 16,262
------------ ------------
Diluted EPS 1,754,639 $ 1.83 1,795,256 $ 1.47
============ ============ ============ ============
</TABLE>
______________
(1) The anti-dilutive effects of options covering 69,825 shares of
common stock were not included in the calculation for 2000.
Note 6. Derivative Financial Instruments
Interest rate swap agreements:
During May 2000, the Company entered into two agreements to assume
variable market-indexed interest payments in exchange for fixed-rate
interest payments (interest rate swaps). The notional principal amount
of interest rate swaps outstanding was $8,525,000 at September 30,
2000. The original term to maturity was 24 months. The weighted-average
fixed payment rate was 7.0% at September 30, 2000. Variable interest
payments received are based on three-month LIBOR. At September 30,
2000, the weighted average rate of variable market-indexed interest
payment obligations to the Company was 6.35%. The effect of these
agreements was to transform fixed rate liabilities to variable rate
liabilities. The net cost of these agreements was $18,327 for the nine
month period ended September 30, 2000, which is charged to income as it
accrues.
The Company's current credit exposure on swaps is limited to the value
of interest rate swaps that have become assets to the Company. At
September 30, 2000, the fair value of interest rate swaps in an asset
position was $95,066.
9
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Financial Summary
Net income for the nine months ended September 30, 2000 increased 21.7%
to $3.2 million or $1.83 per diluted share compared to $2.6 million or $1.47 per
diluted share for the first nine months of 1999. Annualized returns on average
assets and equity for the nine months ended September 30, 2000 were 1.7% and
18.2%, respectively, compared to 1.6% and 15.3% for the same period in 1999.
Total assets for Independent Community Bankshares, Inc. (the "Company")
increased to $274.2 million at September 30, 2000 compared to $243.9 million at
December 31, 1999, representing an increase of $30.3 million or 12.4%. Total
loans at September 30, 2000 were $164.1 million, an increase of $22.3 million
from the December 31, 1999 balance of $141.8 million. The driving forces behind
the loan growth include a good local economy as well as customers' desire to
seek a local financial institution that has the ability to make decisions
locally regarding credit. The investment portfolio increased 18.9% to $80.5
million at September 30, 2000 compared to $67.7 million at December 31, 1999.
Deposits increased $9.0 million to $212.8 million at September 30, 2000 from
$203.8 million at December 31, 1999. Growth in the transactional accounts and
time deposits account for $5.8 million and $6.9 million, respectively of the
increase during the first nine months of 2000. During the third quarter of 2000
certificates of deposits grew $4.5 million as the result of competitive pricing
to attract deposits to fund loan growth. Securities sold under agreements to
repurchase with commercial checking accounts increased $2.4 million from $10.8
million at December 31, 1999 to $13.2 million at September 30, 2000. Branch
expansion and increased advertising have promoted awareness of the Company are
resulted in additional business.
Shareholders' equity was $25.2 million at September 30, 2000. This
represents an increase of 9.1% from the December 31, 1999 balance of $23.1
million. The book value per common share was $14.47 at September 30, 2000 and
$12.97 at December 31, 1999.
Net Interest Income
Net interest income is the Company's primary source of earnings and
represents the difference between interest and fees earned on earning assets and
the interest expense paid on deposits and other interest bearing liabilities.
Net interest income totaled $9.0 million for the first nine months of 2000
compared to $7.5 million for the same period in 1999. The increase is largely
due to growth in the average earning assets.
Noninterest Income
Noninterest income consisting of fees from deposit accounts, fiduciary
activities as well as mortgage banking was $2.7 million for the first nine
months of 2000 compared to $2.1 million for the same period in 1999. Service
charges on deposit accounts for the first nine months of 2000 totaled $886,000
compared to $820,000 for the same period in 1999, an increase of 8.1%.
Commissions and fees from fiduciary activities were $1.2 million for the nine-
month period ending September 30, 2000 compared to $805,000 for the same period
in 1999. The increase in commission and fees from fiduciary activities is
directly related to the $109.1 million increase in assets under administration
from September 30, 1999 to September 30, 2000. Other operating income increased
$96,000 to $612,000 for the nine months ending September 30, 2000 compared to
$516,000 for the same period in 1999.
10
<PAGE>
Noninterest Expense
Total noninterest expense includes employee-related costs, occupancy
and equipment expense and other overhead. Total noninterest expense was $7.0
million for the first nine months of 2000 compared to $5.9 million for the same
period in 1999. This is a 20.4% increase from 1999 to 2000. Salary and benefit
expense increased 25.2% from $3.3 million for the nine months ending September
30, 1999 to $4.1 million for the nine months ending September 30, 2000. Net
occupancy expense of premises increased 22.1% from $716,000 for the nine months
ending September 30, 1999 to $874,000 for the nine months ending September 30,
2000. Two new branches, continued branch growth on existing branches and
mortgage banking continue to drive the increase in salary and employee benefit
and occupancy expenses.
Allowance for Loan Losses
The allowance for loan losses at September 30, 2000 was $1.7 million
compared to $1.3 million at September 30, 1999. The provision for loan losses
for the first nine months of 2000 was $325,000 compared to $328,000 for the same
period of 1999. The allowance for loan losses was 1.04% of total loans
outstanding at September 30, 2000. Net charge-offs as a percentage of loans was
.01% for the nine months ended September 30, 2000, and loans that were past due
90 days or more totaled $75,000 at September 30, 2000. Non-performing loans
decreased to .11% of total loans outstanding at September 30, 2000 compared to
.32% at September 30, 1999. Management believes the allowance for loan losses is
adequate to cover credit losses inherent in the loan portfolio at September 30,
2000. Loans classified as loss, doubtful, substandard or special mention are
adequately reserved for and are not expected to have a material impact beyond
what has been reserved.
Capital Resources
Shareholders' equity at September 30, 2000 and September 30, 1999 was
$25.2 million and $23.1 million, respectively. During the first quarter of 2000,
the Company completed two privately negotiated stock repurchases totaling 57,785
shares of common stock at a weighted average price of $22.46 per share. The
stock repurchase was 3.3% of the total stock outstanding prior to the
transaction. During the third quarter of 2000 the Company issued 16,038 shares
of common stock, a value of $358,000 to the original shareholders of The
Tredegar Trust Company under the contingent merger consideration agreement
within the terms of the acquisition. Total common shares outstanding at
September 30, 2000 were 1,741,247.
At September 30, 2000 the Company's tier 1 and total risk-based capital
ratios were 12.7% and 13.6%, respectively, compared to 14.0% and 14.8% at
December 31, 1999. The Company's leverage ratio was 9.7% at September 30, 2000
compared to 10.8% at December 31, 1999. The Company's capital structure places
it above the regulatory guidelines, which affords the Company the opportunity to
take advantage of business opportunities while ensuring that it has the
resources to protect against risk inherent in its business.
Forward-Looking Statements
Certain information contained in this discussion may include
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934,
as amended. These forward-looking statements are generally identified by phrases
such as "the Company expects," "the Company believes" or words of similar
import. Such forward-looking statements involve known and unknown risks
including, but not limited to, changes in general economic and business
conditions, interest rate fluctuations, competition within and from outside
11
<PAGE>
the banking industry, new products and services in the banking industry, risk
inherent in making loans such as repayment risks and fluctuating collateral
values, changing trends in customer profiles and changes in laws and regulations
applicable to the Company. Although the Company believes that its expectations
with respect to the forward-looking statements are based upon reliable
assumptions within the bounds of its knowledge of its business and operations,
there can be no assurance that actual results, performance or achievements of
the Company will not differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements.
12
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Change in Securities.
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
a) Exhibits
27 Financial Data Schedule (filed electronically only).
b) Reports on Form 8-K - None
13
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INDEPENDENT COMMUNITY BANKSHARES, INC.
--------------------------------------
(Registrant)
Date: 11/14/00 /s/ Joseph L. Boling
----------------- --------------------------------------
Joseph L. Boling
Chairman of the Board & CEO
Date: 11/14/00 /s/ Alice P. Frazier
----------------- --------------------------------------
Alice P. Frazier
Senior Vice President & CFO
14
