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KEY PERFORMANCE
MEASUREMENTS
TOTAL VS. PER SHARE
Treasury Stock increased $485,000 158,000 shares repurchased in 2012
Total Shareholders Equity Down 0.6%
Due to high level of share buy-backs
Shareholders Equity per share UP 2.6%
Total Stock Dividends Paid UP 10.1%
Stock Dividends per Share UP 11.8%
Total Net Income UP 22.4%
4
Net Income per share UP 24.9%
Total Per Share
Equity (Book Value) -0.6% +2.6%
Dividends Paid +10.1% +11.8%
Net Income +22.4% +24.9%
Annual Percentage Change
Total Assets increased $4.5 million
Mortgage Loans increased $4.5 million Loans originated = $9.2 million
Life Ins Reserves increased $0.1 million Deposit Funds increased $0.7 million
Annuities increased $3.7 million
78% of our Company’s
growth since 2008 has
come from the sale of
annuities.
QUESTION:
Is growing our Company
through the sale of annuities
a good business decision?
Is growth through annuities
good business?
Yes, IF:
1. If we can invest the
reserves profitably & safely;
2. If we maintain sufficient
liquidity & solvency.
How our Assets are Invested
10.5%
Interest
4.0%
Interest 0.6%
Interest
4.0%
Interest
What are our Assets Earning?
Weighted Average = 7.8% Interest
Where do our Assets come from?
What do our Assets Cost us?
5.0%
Interest
4.0%
Interest
4.25%
Interest
Company
Profits
(target 8-
10% yield)
Liabilities Weighted Average = 4.1% Interest
Profitability of our Annuity Business
$1,053,000
Interest
Earnings
(avg. 7.8%)
$574,000 Interest
Paid on Annuities
(avg. 4.25%)
$135,000 Cost of
selling & servicing
$144,000 Income
Tax
$200,000 Net Income
from annuities
Is growth through annuities
good business?
Yes, IF:
1. If we can invest the
reserves profitably & safely;
2. If we maintain sufficient
liquidity & solvency.
Liquidity
Available Liquid Assets = 17.4% of Total Assets
Liquidity
Solvency
CONCLUSION 1: Is growth
through annuities good
business?
1. Yes, we are investing the
annuities profitably & safely.
2. Yes, we are maintaining
sufficient liquidity & solvency.
CONCLUSION 2: Increasing Shareholder Returns
We can look forward to increasing
income over the coming years:
1. Non-performing foreclosed real
estate will be sold and begin adding
to our income.
2. We will continue to grow our
annuities and life insurance reserves,
which will add to our income.
THEREFORE,
The shareholders who hold onto their
shares will benefit from these
expected increased returns in future
years.
ANY QUESTIONS?
