Shareholder Services
A Message from the Chairman
As reported to
you in our mid- year report, the large loan loss
suffered in the first half of 2007 resulted in
your bank reporting a loss for the year of $1.4
million. A lawsuit is in process against the
company and guarantors with the intent of
recovery.
It is important for you to know that
even with the loss in 2007, your bank remains a very
strong organization with a capital to asset ratio of
10.8%. An adequately capitalized bank per
regulatory guidelines is 8%.
After delaying our building plans for
2007, we are now back on schedule to start our new
main office project this Spring. The Board still
feels strongly that the future growth of your Bank
is dependent upon a location that allows for easy
accessibility, adequate parking, and room to grow.
Convenience is still the reason a large percentage
of people bank where they do.
We are experiencing an interesting
and challenging time in our economy. On the
national/world scene, we are seeing the severe
effects of the sub prime real estate debacle. In
addition, we have the high cost of oil and all its
related products, which leads to the high grain
prices that are feeding the ethanol industry. On
top of all of this, we have a slowing economy that
is causing interest rates to fall in hopes of
boosting economic growth. Maintaining a
satisfactory interest margin in light of the above
and with ever increasing competition will make 2008
an interesting year.
The cash position of First Shares,
Inc. allowed for a dividend of $2.05 per share. Our
stock continues to trade at 115% of book value and
as of 12/31/07 the suggested market value is $64.06,
down $0.05 from 6/30/07.
Thank you for your
continued support.
Roger L. Elver
Chairman of the Board
Board of Directors
 | Dr. Roger L. Elver, Chairman
of the Board, Dentist |
| Dr. Jerome A. Huebner,
Physician |
| Dr. George R. Kieler,
Veterinarian |
| Mac A. McKichan, Jr.,
Attorney, Of Counsel, Kopp, McKichan, Geyer, Skemp,
and Stombaugh, LLP |
| Stanley A. Nodolf, Farmer |
| Emma L. Probst, Co-Owner,
Rountree Realty |
| Charles J. Runde, President
& CEO, First National Bank of Platteville |
| James T. Schneller, Jr.,
President, Avista, Inc. |
| Diane M. VanDeest, Retired
Faculty - UW-Platteville |
Report of Condition as of December 31, 2007
| Assets |
| Cash and Due
from Banks |
$ 8,430,000 |
| U.S.
Obligations |
$ 1,006,000 |
| Obligations of
State and Other Political Subdivisions |
$
12,383,000 |
| Obligations of
Federal Agencies and Corporations |
$
20,232,000 |
| Other
Securities |
$
437,000 |
| Fed Funds Sold |
$
8,598,000 |
| Loans |
$
86,649,000 |
| Bank Premises |
$
2,938,000 |
| Other Assets |
$ 3,971,000 |
|
TOTAL
ASSETS |
$144,644,000 |
| Liabilities
and Shareholders Equity |
|
| Liabilities |
| Non-Interest
Bearing |
$16,563,000 |
|
| Interest
Bearing |
$90,307,000 |
|
| Total Deposits |
|
$106,870,000 |
| Repurchase
Agreements |
|
$ 22,549,000 |
| Other
Liabilities |
|
$ 1,115,000 |
| Tax Adjustment |
|
($ 1,516,000) |
|
TOTAL
LIABILITIES |
|
$129,018,000 |
| |
|
| Shareholders
Equity |
| Common Stock,
300,000 shares authorized 279,782 shares
outstanding |
|
$
70,000 |
| Paid in Capital |
|
$
2,345,000 |
| Retained
Earnings |
|
$ 13,244,000 |
| Net Unrealized
Loss on AFS Securities |
|
$
41,000 |
| Less Treasury
Stock |
|
$ (74,000) |
|
TOTAL
EQUITY |
|
$ 15,626,000 |
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
$144,644,000 |
|
|
|
