To Our Shareholders, Customers, and Friends:
We are pleased to report another year of
good financial performance. Comparative data for the years
2012 and 2013, as audited by Crowe Horwath LLP, is available
for your review.
The growth in assets leveled off in 2013 after the rapid
increase of 2012. Year-end assets in 2013 were $283,546,663, an increase
of $1,034,164. The bank was able to reduce the level of fed funds, and total
loans reached $169,617,389 at year’s end. This was an improvement
Net income for 2013 was $2,792,188. This is a decrease of
$220,750 from the record year of 2012. A large portion of the decrease can be
attributed to net interest income, which was $159,871 less than the previous year.
Also, the FDIC insurance premium cost rose $78,140 in 2013. However, we are
proud to report that net income for 2013 still remains one of the top three
most profitable years in the bank’s history. Shareholder equity at year’s end
was $43,124,030, and the book value per share was $269.53.
Locally, the economy continues to perform at a fairly constant
level as we experience some unemployment and shifting of jobs. But we are seeing
growth within the manufacturing sector, thanks to Champion Laboratories, Inc.
(now FRAM Filtration). FRAM is the largest manufacturing employer in Edwards County
and remains a valued presence in our community. By relocating full manufacturing
operations from its plants in China and South Carolina, FRAM has been able to
increase employment at the Albion facility.
After a disappointing year in 2012 due to the drought, our grain farmers
had significantly better crops in 2013. Recent USDA yield data for our four bank
locations in the counties of Richland, Edwards, Wayne and White ranged from 147.7
to 187.1 bushels per acre. Average county soybean yields ranged from 36.5 to 43.5
bushels per acre. With the better yields, we have seen extremely volatile commodity
prices. In fact, corn and soybean prices have dropped back to pre-drought 2012
Oil prices continue to be strong, even while drilling regulations
and roadblocks in obtaining permits through the state of Illinois pose major challenges
to our oil producers. Consequently, drilling in southern Illinois has only increased
mildly as compared to our neighboring state of Indiana.
In 2013, we celebrated the retirement of Jerome Shultz and
recognize his nearly 25 years of service. We thank our past and present employees
and Board of Directors for their hard work and their contributions to the success
of the bank. Also, we greatly appreciate all the support from our shareholders,
customers, and surrounding community over the past seventy-three years. We wish
you well in 2014.
Jan D. Ridgely
President & CEO
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