 |
|
First
State Bank and Trust Comparative Balance Sheet (Unaudited) |
| |
December
31 |
December
31 |
| ASSETS |
2008 |
2007 |
| |
|
| Cash
and cash equivalents |
$
12,155,000 |
$
6,918,000 |
| Investment
securities |
$
48,673,000 |
$
50,981,000 |
| Federal
funds sold |
$
9,136,000 |
$
11,881,000 |
Loans:
Less loan loss reserve
of $1,905,000 (2008) |
$
124,726,000 |
$
119,326,000 |
| Bank
premises and equipment |
$
4,910,000 |
$
4,888,000 |
| Interest
receivable |
$
995,000 |
$
1,207,000 |
| Other
assets |
$
2,048,000 |
$
2,368,000 |
|
Total Assets |
$
202,643,000 |
$
197,569,000 |
| |
|
|
| LIABILITIES |
|
|
| Deposits: |
|
|
Noninterest-bearing
|
$
38,157,000 |
$
37,797,000 |
Interest-bearing
|
$
139,237,000 |
$
139,643,000 |
Total
deposits
|
$
177,394,000 |
$
177,440,000 |
| Borrowings |
$
6,259,000 |
$
2,132,000 |
| Other
liabilities |
$
2,498,000 |
$
2,978,000 |
| Total
liabilities |
$
186,151,000 |
$
182,550,000 |
| |
|
|
| STOCKHOLDERS
EQUITY |
|
|
| Common
stock, par value $40/share-121,500 shares authorized and
outstanding |
$ 4,860,000 |
$ 4,860,000 |
| Capital
surplus |
$ 7,640,000 |
$ 7,640,000 |
| Gain/Loss
on AFS securities |
$
580,000 |
$
41,000 |
| FAS 158 Postretirement account |
$
263,000 |
$
153,000 |
| Retained
earnings |
$
3,149,000 |
$
2,325,000 |
| Total
stockholders equity |
$
16,492,000 |
$
15,019,000 |
Total
liabilities
&
stockholders
equity |
$
206,643,000 |
$
197,569,000 |
Thank You for the continued confidence you have placed in First State Bank and
Trust. We appreciate your loyalty as our dedicated staff and experienced Board continue
to successfully manage the bank in the best interest of our customers, community,
and shareholders.
In spite of the many economic challenges faced in 2008, we ended the year with
good earnings. Our “return-on-assets,” a common measure of bank profitability,
was 1.0%, a solid performance in our industry. The bank’s capital position remains
very strong and stable.
While asset quality remains high, we anticipate a continued weakened economy,
and we have set aside a larger part of our 2008 earnings for the loan loss reserve.
We feel we have well positioned our balance sheet to deal with the financial impact
of higher unemployment, a weak housing market, and general economic uncertainty.
We are diligently working with borrowers who are struggling financially, seeking
reasonable solutions that will benefit both the customer and the bank.
As for the government financial assistance currently available to banks
(Capital
Purchase Plan / TARP funds), we have decided to not apply for those funds.
Our strong capital position, good asset quality, solid earnings, and current
strategic/growth plans do not necessitate any government capital injection in our
bank. We continue to lend locally to businesses and individuals: we loaned over $9
million in new funds in the St. Croix Valley in 2008 to buy/remodel homes, expand
businesses, and purchase vehicles.
Since 1914, we have been an independent, community-owned bank focused on
attracting local deposits and local lending. Our plans continue to focus on serving
the many financial needs of the community in 2009 and beyond. We are the
bankers on “Your Street” not “Wall Street.”
Sincerely,
Peter Clements
President
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