Financial Information

To Our Shareholders, Customers, and Friends:

Jan D. Ridgely                    


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 of $7,641,600.

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 levels.

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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