Geauga record. [volume] (Chardon, Geauga County, Ohio) 1952-1962, 1961-02-09

banking in spite of the fact
that many businesses are
scarcely out of the countdoWn
stage. Your bank in 1860 re-
corded new highs in every
significant balance sheet item
as well as in operating in
come and operating profit.
On December 81 total assets
were eleven and One-third
million dollars and capital
funds and reserves reached a
point just short Of one million
dollars. Cash dividends of 10
per cent were paid during the
year and about $500 per
share was added to capital
funds. Whether you consider
1860 the close Of a decade Of
progress or the start Of a pro-
sperous decade, the results
are highly gratifying.
Operating income increas-
ed 15.5 per cent during the
year to a total of $3.50, 1870.
This is the first year our
gross income has reached the
half million dollar figure. The
1860 figure is double our gross
earnings for 1855 and five
times the 1916 total. Operat-
ing expense, including de-
probation and all taxes, rose
only IA per cent to $446, ,958.
In times like these, we feel
it is a real accomplishment
to hold the rate Of rise in
expense below the rate Of rise
in income.
"T h e resulting operating
profit of $83, 172 was used in
the following manner: $36, ,665
was paid in cash dividends to
stockholders: SIT ,595 was
transferred to valuation reser-
yes for securities and loans;
$28,912 was added to capital
funds in the undivided profits
account. Total capital funds
at the end Of the year, in
Guiding valuation reserves
mot shown as a separate fig
ure in the Statement, were
$685. 1t seems reasonable
TO predict that capital funds
will be we'll over the million
dollar mark by the end Of 1861
"AsSetS of the bank show a
better distribution than a
year ago. Our cash position
is much easier. Government
securities are slightly larger
with maturitieS averaging
we'll within five years. Mum
icipal holdings are SubStanti-
ally larger with most of the
increase in short term gov
ernment agency bonds. Mat
uritieS of municipal bonds
during the year were re-
placed and the pattern OF
evenly spaced maturities ov-
er the next eight years was
ept. Most Of our purchases
of both governments and mu,
nicipals were made early in
the year while yields were
still relatively high.
Loans have increased 6.S
per cent during the year tC
a new high of $6,111, ,998. De,
mand for loans has held ur
reasonably we'll throughout
the year. Consumer loans
have levelled off in recen'
weeks and we expect a lower
level of activity in this ares
for some months. Real estate
MORTGAGE loans are at an all
time high. We have been very
selective in this type Of loar
and believe our portfolio tt
be of excellent quality. Money
became exceedingly short du
ring the first half Of 1860 anc
we have followed q strict DO
1icv of lending only to eStab
liShed depoSitors in the bank
To the best of our knowledge
no customer was refused
legitimate loan request. w,
have been able to ease TIL
restrictions somewhat. bu
have proceeded cautiously he
cause we believe it is hiphl'
important to provide for tn
credit needs Of established
depositors first.
Demand deposits increaS
ed 7.9 per cent from year-en
to year-end and time deposit
increased 1l.9 per cent. Bot
classificationS were higher a
various periods during tn
year and settled back to ney
December 81 record highs
The rate of growth points ou
our continuing problem of
high percentage of time de
poSits. We shall continue t
seek deposits in all forms, bu
we must be constantly alel
to opportunities for NOR
commercial funds.
"The most spectacular az
dition to our equipment tn.
year, as far as results ar
concerned, is the Address,
graph. This machine, in a
hour and a half. does one jC
that an experienced typi
would be hard pressed to {
in a week. During the yea
we were able to start uSir
.1o4,,V,f Vo,,y,olhorc in fNncfir