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<TITLE>Grayson Bankshares, Inc.</TITLE>
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<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Washington, D.C. &nbsp;20549</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>___________</P>
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<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>FORM 8-K</B></P>
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<P style="margin:0pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>CURRENT REPORT</B></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Pursuant to Section 13 or 15(d) of the</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Securities Exchange Act of 1934</B></P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Date of Report: &nbsp;April 13, 2004</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Date of Earliest Event Reported)</P>
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<P style="margin:0pt; line-height:18pt; font-family:Times New Roman; font-size:16pt" align=center><B>GRAYSON BANKSHARES, INC.</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Exact Name of Registrant as Specified in its Charter)</P>
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<P style="margin:0pt; text-indent:72pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<TABLE cellspacing=0 align=center><TR><TD valign=top width=208><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Virginia</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(State or Other Jurisdiction</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>of Incorporation)</P>
</TD><TD valign=top width=208 colspan=2><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><B>0-30535 </B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Commission File Number)</P>
</TD><TD valign=top width=208><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>54-1647596</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(IRS Employer</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Identification No.)</P>
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<TR><TD valign=top width=208><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
</TD><TD valign=top width=208 colspan=2>&nbsp;</TD><TD valign=top width=208>&nbsp;</TD></TR>
<TR><TD valign=top width=312 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>113 West Main Street</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Independence, Virginia</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Address of Principal Executive Offices)</P>
</TD><TD valign=top width=312 colspan=2><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>24348</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Zip Code)</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Registrant&#146;s telephone number, including area code:</P>
<P style="margin:0pt; line-height:13.5pt; font-family:Times New Roman; font-size:12pt" align=center><B>(276) 773-2811</B></P>
<P style="margin:0pt; line-height:13.5pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:13.5pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
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<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-72pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B>Item 12.</B></P>
<P style="margin:0pt; padding-left:72pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B>Results of Operations and Financial Condition.</B></P>
<P style="margin:0pt; padding-left:72pt; text-indent:-72pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>On April 13, 2004, the Registrant presented at its 2004 Annual Meeting of Shareholders the following financial results for the quarter ended March 31, 2004.</P>
<BR>
<TABLE cellspacing=0 cellpadding=0><TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B>Consolidated Balance Sheets</B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>March 31, </B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>December 31,</B></P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>2004</B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>2003</B></P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Assets</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Cash and due from banks</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,435,887</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;11,748,139</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Federal funds sold</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>16,847,364</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>15,305,544</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Investment securities</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>46,449,582</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>46,281,767</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Loans</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>183,731,228</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>178,550,118</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:35pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Less allowance for loan losses</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>2,412,176</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>2,395,387</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Net loans</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>181,319,052</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>176,154,731</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Properties and equipment</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>6,144,837</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>6,228,192</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Accrued interest receivable</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,839,888</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,891,116</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Other assets</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>6,780,624</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>6,255,439</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total assets</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;265,817,234</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>263,864,928</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Liabilities</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Demand deposits</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>25,314,457</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>26,708,360</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Interest-bearing demand deposits</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>19,164,777</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>19,359,587</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Savings deposits</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>52,088,836</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>53,415,745</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Large denomination time deposits</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>34,872,176</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>34,695,733</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Other time deposits</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>92,795,052</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>94,039,723</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total deposits</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>224,235,298</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>228,219,148</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">FHLB Advances</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>15,000,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>10,000,000</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Accrued interest payable</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>548,272</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>264,640</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Other liabilities</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>601,527</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>780,344</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total liabilities</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>240,385,097</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>239,264,132</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Stockholders&#146; equity</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Preferred stock; $25 par value; 500,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">shares authorized; none outstanding</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Common stock; $1.25 par value; 5,000,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">shares authorized; 1,718,968 shares</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">issued and outstanding</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>2,148,710</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>2,148,710</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:17pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Surplus</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>521,625</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>521,625</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:17pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Retained earnings</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>22,112,793</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>21,587,202</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:17pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Accumulated other comprehensive income (loss)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>649,009</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>343,259</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total stockholders&#146; equity</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>25,432,137</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>24,600,796</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total liabilities and stockholders&#146; equity</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;265,817,234</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;263,864,928</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
</TABLE>
<BR>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center>2</P>
<P style="PAGE-BREAK-BEFORE: always">
<HR align=center width="100%" color=#999999 SIZE=3>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<TABLE cellspacing=0><TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B>Consolidated Statements of Operations</B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=246 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=246 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>Three Months Ended March 31,</B></P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>2004</B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>2003</B></P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Interest income</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Loans and fees on loans</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,075,099</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,815,234</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Interest on securities</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>468,507</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>584,467</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Federal funds sold</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>33,043</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>70,079</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total interest income</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>3,576,649</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>3,469,780</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Interest expense</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Deposits</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,036,532</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,416,177</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">FHLB Advances</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>115,268</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>114,001</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total interest expense</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,151,800</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,530,178</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Net interest income</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>2,424,849</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,939,602</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Provision for loan losses</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>90,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>90,000</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Net interest income after provision</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>2,334,849</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,849,602</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Other income</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Service charges on deposit accounts</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>116,619</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>91,030</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Other income</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>157,596</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,013,305</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total other income</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>274,215</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,104,335</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Other expenses</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Salaries and employee benefits</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,021,995</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>840,442</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:19pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Occupancy expense</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>58,477</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>35,169</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Equipment expense</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>155,113</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>107,441</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:18pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Other expense</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>362,422</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>337,469</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Total other expense</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,598,007</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,320,521</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:71pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Net income before income taxes</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,011,057</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,633,416</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Income taxes</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>262,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>487,000</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; text-indent:72pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Net income</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;749,057</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,146,416</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Net income per share</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; .44</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.67</P>
</TD></TR>
<TR><TD valign=top width=355.2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt"><B><I>Weighted average shares outstanding</I></B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,718,968</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=right>1,718,968</P>
</TD></TR>
<TR><TD valign=top width=355.2>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
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<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The foregoing information is being furnished pursuant to this Item 12 and shall not be deemed to be &#147;filed&#148; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be deemed to be incorporated by reference into any of the Registrant&#146;s filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.</P>
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>SIGNATURES</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
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<B><P style="margin:0pt; text-indent:180pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>GRAYSON BANKSHARES, INC. </B></P>
<P style="margin:0pt; text-indent:216pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</P>
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<P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Date: &nbsp;April 13, 2004</P>
<P style="margin-top:0pt; margin-bottom:-14pt; text-indent:180pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>By: &nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-14pt; text-indent:216pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><U>/s/ Blake M. Edwards, Jr.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>
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<P style="margin:0pt; text-indent:216pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Blake M. Edwards, Jr. &nbsp;</P>
<P style="margin:0pt; text-indent:216pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Chief Financial Officer</P>
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Grayson Bankshares, Inc.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
___________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report:  April 13, 2004
(Date of Earliest Event Reported)
GRAYSON BANKSHARES, INC.
(Exact Name of Registrant as Specified in its Charter)
Virginia
(State or Other Jurisdiction
of Incorporation)
0-30535
(Commission File Number)
54-1647596
(IRS Employer
Identification No.)
113 West Main Street
Independence, Virginia
(Address of Principal Executive Offices)
24348
(Zip Code)
Registrant's telephone number, including area code:
(276) 773-2811
Item 12.
Results of Operations and Financial Condition.
On April 13, 2004, the Registrant presented at its 2004 Annual Meeting of Shareholders the following financial results for the quarter ended March 31, 2004.
Consolidated Balance Sheets
March 31,
December 31,
2004
2003
Assets
Cash and due from banks
$        6,435,887
$     11,748,139
Federal funds sold
16,847,364
15,305,544
Investment securities
46,449,582
46,281,767
Loans
183,731,228
178,550,118
Less allowance for loan losses
2,412,176
2,395,387
Net loans
181,319,052
176,154,731
Properties and equipment
6,144,837
6,228,192
Accrued interest receivable
1,839,888
1,891,116
Other assets
6,780,624
6,255,439
Total assets
$     265,817,234
263,864,928
Liabilities
Demand deposits
25,314,457
26,708,360
Interest-bearing demand deposits
19,164,777
19,359,587
Savings deposits
52,088,836
53,415,745
Large denomination time deposits
34,872,176
34,695,733
Other time deposits
92,795,052
94,039,723
Total deposits
224,235,298
228,219,148
FHLB Advances
15,000,000
10,000,000
Accrued interest payable
548,272
264,640
Other liabilities
601,527
780,344
Total liabilities
240,385,097
239,264,132
Stockholders' equity
Preferred stock; $25 par value; 500,000
shares authorized; none outstanding
-
-
Common stock; $1.25 par value; 5,000,000
shares authorized; 1,718,968 shares
issued and outstanding
2,148,710
2,148,710
Surplus
521,625
521,625
Retained earnings
22,112,793
21,587,202
Accumulated other comprehensive income (loss)
649,009
343,259
Total stockholders' equity
25,432,137
24,600,796
Total liabilities and stockholders' equity
$     265,817,234
$     263,864,928
2
Consolidated Statements of Operations
Three Months Ended March 31,
2004
2003
Interest income
Loans and fees on loans
$        3,075,099
$        2,815,234
Interest on securities
468,507
584,467
Federal funds sold
33,043
70,079
Total interest income
3,576,649
3,469,780
Interest expense
Deposits
1,036,532
1,416,177
FHLB Advances
115,268
114,001
Total interest expense
1,151,800
1,530,178
Net interest income
2,424,849
1,939,602
Provision for loan losses
90,000
90,000
Net interest income after provision
2,334,849
1,849,602
Other income
Service charges on deposit accounts
116,619
91,030
Other income
157,596
1,013,305
Total other income
274,215
1,104,335
Other expenses
Salaries and employee benefits
1,021,995
840,442
Occupancy expense
58,477
35,169
Equipment expense
155,113
107,441
Other expense
362,422
337,469
Total other expense
1,598,007
1,320,521
Net income before income taxes
1,011,057
1,633,416
Income taxes
262,000
487,000
Net income
$           749,057
$        1,146,416
Net income per share
$                  .44
$                 .67
Weighted average shares outstanding
1,718,968
1,718,968
The foregoing information is being furnished pursuant to this Item 12 and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended. In addition, this information shall not be deemed to be incorporated by reference into any of the Registrant's filings with the Securities and Exchange Commission, except as shall be expressly set forth by specific reference in any such filing.
3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GRAYSON BANKSHARES, INC.
(Registrant)
Date:  April 13, 2004
By:
/s/ Blake M. Edwards, Jr.
Blake M. Edwards, Jr.
Chief Financial Officer