American National Bankshares Inc. Reports Fourth Quarter 2015 Earnings
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DANVILLE, VA -- (Marketwired) -- 01/21/16 -- American National Bankshares Inc. (NASDAQ: AMNB)
- Q4 2015 net income of $4.6 million
- Diluted EPS $0.53 for Q4 2015 compared to $0.37 for Q4 2014
- Net interest margin of 3.68% for Q4 2015
- Average shareholders' equity for Q4 of $197.7 million is 12.88% of average assets
- Organic loan growth for 2015 of 7%
American National Bankshares Inc. ("American National") (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced net income for the fourth quarter of 2015 of $4,607,000 compared to $2,890,000 for the fourth quarter of 2014, a $1,717,000 or 59.4% increase. Basic and diluted net income per common share was $0.53 for the fourth quarter of 2015 compared to $0.37 for 2014. Net income for the fourth quarter of 2015 produced a return on average assets of 1.20%, a return on average equity of 9.32%, and a return on average tangible equity of 12.77%.
Net income for the year ended December 31, 2015 was $15,039,000 compared to $12,741,000 for 2014, a $2,298,000 or 18.04% increase. Basic and diluted net income per common share was $1.73 for the 2015 period compared to $1.62 for the 2014 period.
The quarter and the year were positively impacted by the January 2015 acquisition of MainStreet BankShares and its subsidiary Franklin Community Bank.
Financial Performance and Overview Jeffrey V. Haley, President and Chief Executive Officer, reported, "As we think about 2015, it was an exciting, productive, challenging, and ultimately very successful year for American National.
"American National has a long and enviable legacy of strong capital. We are working to deploy this capital more effectively and efficiently, while still maintaining that fundamental legacy strength. This past year we've seen the results of those strategic efforts: the acquisition of MainStreet, significant organic growth in our existing markets, an increase in our cash dividend to the shareholders, and an active stock repurchase program.
"Acquiring another financial institution is one of the most important and complicated activities any bank ever undertakes. Under any circumstances it brings a host of operational, technical, personnel and customer related challenges. The acquisition of MainStreet, consummated early in 2015, went remarkably well, thanks to the combined efforts of our employees and our new colleagues from MainStreet.
"Organic growth has been difficult during the recent economic downturn. This past year our loan portfolio grew $165 million (19.6%). Of that growth, $106 million related to the MainStreet merger and $59 million was organic. Put another way, our loans, exclusive of acquired loans, grew 7.0% last year. To fund these loans our deposits grew $187 million (17.4%) last year. Of that growth, $117 million related to the MainStreet merger and $70 million was organic growth. Legacy deposit growth, on its own, was 6.6%. We're very pleased with the growth on both sides of our balance sheet.
"American National considers the payment of appropriate dividends a vital part of its capital planning strategy. The Company adheres to a dividend policy based on a review of earnings, growth, capital and other factors that are relevant to the dividend decision process. Accordingly, the Company increased its cash dividend in the fourth quarter to $0.24 per share, an increase of one cent or 4.3% and the first change in the dividend payment since 2007. Based on the current price of the stock, the dividend yield on American National is approximately 4.2%.
"The Company also realizes that, in some circumstances, an efficient capital management strategy can be repurchase of its common stock. During 2015, the Company has repurchased approximately 155,000 shares at an average price of $23.31. Any future repurchase activity will ebb and flow with changes in circumstances and as alternative uses for our capital may develop.
"On the earnings side, our net income for the fourth quarter was $4,607,000, up from $2,890,000 in the 2014 quarter, an increase of $1,717,000 or 59.4%.
"The biggest driver of that increase was the MainStreet merger, which had a significant and positive impact to operating results by adding substantially to earning assets. Net interest income for the quarter is up by $1,989,000 and of that increase 61.3% relates to the MainStreet acquisition.
"Noninterest income was higher in the 2015 quarter by $1,026,000 or 36.7%. Almost all categories showed notable improvement compared to the prior year quarter.
"Noninterest expense was higher in the 2015 quarter by $523,000 or 5.8%. The size of the increase was reduced by a decrease in merger related expenses.
Haley concluded, "We had a really good year in 2015. The merger with MainStreet went well. We had solid organic growth on both sides of the balance sheet -- loans and deposits. Earnings were strong, even after allowing for almost $2 million in merger related costs during the year. But that's behind us now and we are focused on 2016 and making it an even better year."
Capital American National's capital ratios remain strong and exceed all regulatory requirements.
For the quarter ended December 31, 2015, average shareholders' equity was 12.88% of average assets, compared to 13.04% for the quarter ended December 31, 2014.
Book value per common share was $22.95 at December 31, 2015, compared to $22.07 at December 31, 2014.
Tangible book value per common share was $17.55 at December 31, 2015, compared to $16.86 at December 31, 2014.
Credit Quality Measurements Non-performing assets ($5,205,000 of non-performing loans and $2,184,000 of other real estate owned) represented 0.48% of total assets at December 31, 2015, compared to 0.46% at December 31, 2014.
Annualized net charge offs to average loans were eleven basis points (0.11%) for the 2015 fourth quarter, compared to twenty-two basis points (0.22%) for the same quarter in 2014.
Other real estate owned was $2,184,000 at December 31, 2015, compared to $2,119,000 at December 31, 2014, a decrease of $65,000 or 3.1%.
Merger related financial impact The fair value adjustments related to our two recent mergers have had and continue to have a positive impact on net interest income and income before income tax for American National. The impact of the adjustments is summarized below (dollars in thousands):
----------------------------------------------------
MainStreet December 31, 2015
----------------------------------------------------
For the For the
three twelve
months months
ended ended
----------- -----------
Net Interest Income $ (232) $ 864
Income Before Income Taxes $ (306) $ 569
MidCarolina December 31, 2015 December 31, 2014
---------------------------------------------------- -----------------------
For the For the For the For the
three twelve three twelve
months months months months
ended ended ended ended
----------- ----------- ----------- -----------
Net Interest Income $ 1,052 $ 2,459 $ 605 $ 2,669
Income Before Income Taxes $ 826 $ 1,553 $ 378 $ 1,744
The MainStreet merger was effective January 1, 2015; therefore, no comparative 2014 information is presented.
During the fourth quarter 2015, management evaluated the performance of the MainStreet purchased credit impaired ("PCI") loan portfolio. A large dollar volume of principal payoffs, in excess of $4 million, indicated the possibility that the initial valuation assumptions at the merger date may have been overly pessimistic. The Company conducted a detailed review that resulted in a measurement period adjustment of the PCI portfolio. The net result was a $533,000 reduction in year-to-date accretion income and adjustments to goodwill.
In addition, during the fourth quarter, the Company received a payoff of a PCI loan in the MidCarolina portfolio that resulted in $540,000 in current quarter cash-basis accretion income.
Net Interest Income Net interest income before provision for loan losses increased to $12,444,000 in the fourth quarter of 2015 from $10,455,000 in the fourth quarter of 2014, an increase of $1,989,000 or 19.0%.
For the 2015 quarter, the net interest margin was 3.68% compared to 3.59% for the same quarter in 2014, an increase of 0.09%.
Provision for Loan Losses and Allowance for Loan Losses Provision expense for both the fourth quarters of 2015 and 2014 was $250,000.
The allowance for loan losses as a percentage of total loans was 1.25% at December 31, 2015 compared to 1.48% at December 31, 2014. The largest driver of this decrease was the merger with MainStreet, whose loans were marked to fair value at the merger date and whose related allowance for loan loss was eliminated in the accounting for the business combination.
There was significant growth in the loans outstanding in the fourth quarter, a net of $24.5 million. The need for additional loan loss provision was partially mitigated by some improvement in various qualitative factors used in the determination of the allowance.
Noninterest Income Noninterest income totaled $3,818,000 in the fourth quarter of 2015, compared with $2,792,000 in the fourth quarter of 2014, an increase of $1,026,000 or 36.7%. Almost all income categories showed increases, much of which were related to increased transaction volumes resulting from the MainStreet transaction.
Trust fees showed a decrease of $93,000 (8.7%); revenue for this category is directly impacted by changes in the equity markets. Securities gains showed a $313,000 increase from the fourth quarter of 2014; this was related to actions resulting from asset/liability strategy decisions. Other income showed an increase of $543,000, most of which was related to income from investments in a Small Business Investment Corporation (SBIC).
Noninterest Expense Noninterest expense totaled $9,466,000 in the fourth quarter of 2015, compared to $8,943,000 in the fourth quarter of 2014, an increase of $523,000 or 5.8%.
All expense categories were impacted by the MainStreet merger and the integration of Franklin Community Bank into American National's operations.
The increase in noninterest expense was mitigated by a $462,000 reduction in nonrecurring merger related expense, which were $50,000 in the current quarter and $512,000 in the prior year quarter.
About American National American National Bankshares Inc. is a multi-state bank holding company with total assets of approximately $1.5 billion. Headquartered in Danville, Virginia, American National is the parent company of American National Bank and Trust Company. American National Bank is a community bank serving Virginia and North Carolina with 25 banking offices and two loan production offices. American National Bank and Trust Company also manages an additional $749 million of trust, investment and brokerage assets in its Trust and Investment Services Division. Additional information about the company and the bank is available on the bank's website at www.amnb.com.
Shares of American National are traded on the NASDAQ Global Select Market under the symbol "AMNB."
Forward-Looking Statements This press release contains forward-looking statements within the meaning of federal securities laws. Certain of the statements involve significant risks and uncertainties. The statements herein are based on certain assumptions and analyses by American National and are factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies or guidelines; significant changes in the economic scenario; significant changes in regulatory requirements; significant changes in securities markets; and changes regarding acquisitions and dispositions. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in American National's most recent Form 10-K report and other documents filed with the Securities and Exchange Commission. American National does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
American National Bankshares Inc.
Consolidated Balance Sheets
(Dollars in thousands, except share and per share data)
Unaudited
---------------------------------------------------------------------------
December 31
----------------------------
ASSETS 2015 2014
------------- -------------
Cash and due from banks $ 19,352 $ 29,272
Interest-bearing deposits in other banks 75,985 38,031
Securities available for sale, at fair value 340,349 344,716
Restricted stock, at cost 5,312 4,367
Loans held for sale 3,266 616
Loans 1,005,525 840,925
Less allowance for loan losses (12,601) (12,427)
------------- -------------
Net Loans 992,924 828,498
------------- -------------
Premises and equipment, net 23,567 23,025
Other real estate owned, net 2,184 2,119
Goodwill 43,872 39,043
Core deposit intangibles, net 2,683 2,045
Bank owned life insurance 17,658 15,193
Accrued interest receivable and other assets 19,737 19,567
------------- -------------
Total assets $ 1,546,889 $ 1,346,492
============= =============
Liabilities
Demand deposits -- noninterest-bearing $ 322,442 $ 254,458
Demand deposits -- interest-bearing 227,030 193,432
Money market deposits 200,495 174,000
Savings deposits 115,383 90,130
Time deposits 397,310 363,817
------------- -------------
Total deposits 1,262,660 1,075,837
Customer repurchase agreements 40,611 53,480
Long-term borrowings 9,958 9,935
Junior subordinated debt 27,622 27,521
Accrued interest payable and other
liabilities 8,203 5,939
------------- -------------
Total liabilities 1,349,054 1,172,712
------------- -------------
Shareholders' equity
Preferred stock, $5 par, 2,000,000 shares
authorized, none outstanding - -
Common stock, $1 par, 20,000,000 shares
authorized, 8,622,007 shares outstanding at
December 31, 2015 and 7,873,474 shares
outstanding at December 31, 2014 8,605 7,872
Capital in excess of par value 75,375 57,650
Retained earnings 111,565 104,594
Accumulated other comprehensive income, net 2,290 3,664
------------- -------------
Total shareholders' equity 197,835 173,780
------------- -------------
Total liabilities and shareholders' equity $ 1,546,889 $ 1,346,492
============= =============
American National Bankshares Inc.
Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
Unaudited
----------------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31 December 31
----------------------- -----------------------
2015 2014 2015 2014
----------- ----------- ----------- -----------
Interest and Dividend
Income:
Interest and fees on loans $ 11,849 $ 9,859 $ 46,860 $ 39,257
Interest on federal funds
sold - - 6 -
Interest and dividends on
securities:
Taxable 1,051 925 4,072 3,775
Tax-exempt 882 954 3,681 3,971
Dividends 88 75 346 296
Other interest income 81 56 204 156
----------- ----------- ----------- -----------
Total interest and
dividend income 13,951 11,869 55,169 47,455
----------- ----------- ----------- -----------
Interest Expense:
Interest on deposits 1,228 1,144 4,811 4,654
Interest on short-term
borrowings 2 1 9 9
Interest on long-term
borrowings 81 82 324 325
Interest on junior
subordinated debt 196 187 760 742
----------- ----------- ----------- -----------
Total interest expense 1,507 1,414 5,904 5,730
----------- ----------- ----------- -----------
Net Interest Income 12,444 10,455 49,265 41,725
Provision for loan losses 250 250 950 400
----------- ----------- ----------- -----------
Net Interest Income After
Provision for Loan Losses 12,194 10,205 48,315 41,325
----------- ----------- ----------- -----------
Noninterest Income:
Trust fees 972 1,065 3,935 4,196
Service charges on deposit
accounts 523 450 2,066 1,735
Other fees and commissions 590 487 2,377 1,903
Mortgage banking income 333 246 1,320 1,126
Securities gains (losses),
net 314 1 867 505
Other 1,086 543 2,722 1,711
----------- ----------- ----------- -----------
Total noninterest income 3,818 2,792 13,287 11,176
----------- ----------- ----------- -----------
Noninterest Expense:
Salaries 3,920 3,798 16,554 14,688
Employee benefits 1,096 367 4,311 2,988
Occupancy and equipment 1,135 948 4,425 3,727
FDIC assessment 185 161 750 647
Bank franchise tax 223 232 898 901
Core deposit intangible
amortization 300 226 1,201 1,114
Data processing 414 394 1,725 1,448
Software 308 274 1,158 1,019
Other real estate owned,
net 39 92 99 240
Merger related expenses 50 512 1,998 780
Other 1,796 1,939 7,424 7,006
----------- ----------- ----------- -----------
Total noninterest
expense 9,466 8,943 40,543 34,558
----------- ----------- ----------- -----------
Income Before Income Taxes 6,546 4,054 21,059 17,943
Income Taxes 1,939 1,164 6,020 5,202
----------- ----------- ----------- -----------
Net Income $ 4,607 $ 2,890 $ 15,039 $ 12,741
=========== =========== =========== ===========
Net Income Per Common Share:
Basic $ 0.53 $ 0.37 $ 1.73 $ 1.62
Diluted $ 0.53 $ 0.37 $ 1.73 $ 1.62
Weighted Average Common
Shares Outstanding:
Basic 8,627,414 7,855,872 8,680,502 7,867,198
Diluted 8,634,570 7,866,111 8,688,648 7,877,576
American National Bankshares Inc.
Financial Highlights
(In thousands,
except share,
ratio and
nonfinancial
data,
unaudited) 4th Qtr 3rd Qtr 4th Qtr YTD YTD
2015 2015 2014 2015 2014
---------- ---------- ---------- ----------- -----------
EARNINGS
Interest
income $ 13,951 $ 13,542 $ 11,869 $ 55,169 $ 47,455
Interest
expense 1,507 1,481 1,414 5,904 5,730
Net interest
income 12,444 12,061 10,455 49,265 41,725
Provision for
loan losses 250 - 250 950 400
Noninterest
income 3,818 3,055 2,792 13,287 11,176
Noninterest
expense 9,466 9,388 8,943 40,543 34,558
Income taxes 1,939 1,691 1,164 6,020 5,202
Net income 4,607 4,037 2,890 15,039 12,741
PER COMMON SHARE
Net income per
share - basic $ 0.53 $ 0.47 $ 0.37 $ 1.73 $ 1.62
Net income per
share -
diluted 0.53 0.47 0.37 1.73 1.62
Cash dividends
paid 0.24 0.23 0.23 0.93 0.92
Book value per
share (a) 22.95 22.81 22.07 22.95 22.07
Book value per
share -
tangible (a)
(b) 17.55 17.32 16.86 17.55 16.86
Closing market
price 25.61 23.45 24.81 25.61 24.81
FINANCIAL RATIOS
Return on
average
assets 1.20% 1.07% 0.86% 0.99% 0.97%
Return on
average
equity 9.32 8.25 6.63 7.65 7.40
Return on
average
tangible
equity (c) 12.77 11.42 9.12 10.62 10.31
Average equity
to average
assets 12.88 12.95 13.04 12.90 13.12
Tangible
equity to
tangible
assets (b) 10.08 10.18 10.16 10.08 10.16
Net interest
margin,
taxable
equivalent 3.68 3.64 3.59 3.70 3.66
Efficiency
ratio (d) 57.52 61.25 64.60 63.81 63.41
Effective tax
rate 29.62 29.52 28.71 28.59 28.99
PERIOD-END
BALANCES
Securities $ 345,661 $ 363,614 $ 349,250 $ 345,661 $ 349,083
Loans held for
sale 3,266 2,998 616 3,266 616
Loans, net of
unearned
income 1,005,525 980,984 840,925 1,005,525 840,925
Goodwill and
other
intangibles 46,555 47,316 41,088 46,555 41,088
Assets 1,546,894 1,512,437 1,346,492 1,546,894 1,346,492
Assets -
tangible (b) 1,500,339 1,465,121 1,305,404 1,500,339 1,305,404
Deposits 1,262,660 1,226,521 1,075,837 1,262,660 1,075,837
Customer
repurchase
agreements 40,611 43,579 53,480 40,611 53,480
Long-term
borrowings 37,580 37,549 37,456 37,580 37,456
Shareholders'
equity 197,835 196,451 173,780 197,835 173,780
Shareholders'
equity -
tangible (b) 151,280 149,135 132,692 151,280 132,692
AVERAGE BALANCES
Securities $ 349,116 $ 357,427 $ 331,785 $ 349,116 $ 338,468
Loans held for
sale 3,446 2,873 982 2,531 1,672
Loans, net of
unearned
income 983,725 982,212 815,271 973,329 803,187
Interest-
earning
assets 1,386,256 1,380,576 1,220,818 1,391,486 1,196,095
Goodwill and
other
intangibles 47,193 47,446 41,222 47,575 41,620
Assets 1,534,247 1,511,464 1,338,240 1,523,766 1,312,472
Assets -
tangible (b) 1,487,054 1,464,018 1,297,018 1,476,191 1,270,852
Interest-
bearing
deposits 931,223 923,840 816,965 934,716 818,381
Deposits 1,247,612 1,223,328 1,069,995 1,232,199 1,052,530
Customer
repurchase
agreements 42,524 45,444 50,493 48,105 43,724
Long-term
borrowings 37,561 37,531 37,438 37,515 37,398
Shareholders'
equity 197,658 195,660 174,453 196,518 172,207
Shareholders'
equity -
tangible (b) 150,465 148,214 133,231 148,943 130,587
American National Bankshares Inc.
Financial Highlights
(In thousands,
except share,
ratio and
nonfinancial
data, unaudited) 4th Qtr 3rd Qtr 4th Qtr YTD YTD
2015 2015 2014 2015 2014
---------- ---------- ---------- ----------- -----------
CAPITAL
Weighted
average
shares
outstanding -
basic 8,627,414 8,668,618 7,855,872 8,680,502 7,867,198
Weighted
average
shares
outstanding -
diluted 8,634,570 8,676,571 7,866,111 8,688,648 7,877,576
ALLOWANCE FOR
LOAN LOSSES
Beginning
balance $ 12,611 $ 12,793 $ 12,620 $ 12,427 $ 12,600
Provision for
loan losses 250 - 250 950 400
Charge-offs (317) (253) (566) (1,200) (964)
Recoveries 57 71 123 424 391
---------- ---------- ---------- ---------- ----------
Ending balance $ 12,601 $ 12,611 $ 12,427 $ 12,601 $ 12,427
LOANS
Construction
and land
development $ 72,968 $ 68,692 $ 50,863 $ 72,968 $ 50,863
Commercial
real estate 428,932 424,404 391,472 428,932 391,472
Residential
real estate 221,688 219,415 175,293 221,688 175,293
Home equity 98,449 98,249 91,075 98,449 91,075
Commercial and
industrial 177,481 164,025 126,981 177,481 126,981
Consumer 6,007 6,199 5,241 6,007 5,241
---------- ---------- ---------- ---------- ----------
Total $1,005,525 $ 980,984 $ 840,925 $1,005,525 $ 840,925
NONPERFORMING
ASSETS AT
PERIOD-END
Nonperforming
loans:
90 days past
due and
accruing $ - $ - $ - $ - $ -
Nonaccrual 5,205 5,360 4,112 5,205 4,112
Other real
estate owned 2,184 1,333 2,119 2,184 2,119
---------- ---------- ---------- ---------- ----------
Nonperforming
assets $ 7,389 $ 6,693 $ 6,231 $ 7,389 $ 6,231
ASSET QUALITY
RATIOS
Allowance for
loan losses
to total
loans 1.25% 1.29% 1.48% 1.25% 1.48%
Allowance for
loan losses
to
nonperforming
loans 242.09 235.28 302.21 242.09 302.21
Nonperforming
assets to
total assets 0.48 0.44 0.46 0.48 0.46
Nonperforming
loans to
total loans 0.52 0.55 0.49 0.52 0.49
Annualized net
charge-offs
(recoveries)
to average
loans 0.11 0.07 0.22 0.08 0.07
OTHER DATA
Fiduciary
assets at
period-end
(e) (f) $ 491,681 $ 486,173 $ 450,498 $ 491,681 $ 450,498
Retail
brokerage
assets at
period-end
(e) (f) $ 257,546 $ 247,258 $ 210,265 $ 257,546 $ 210,265
Number full-
time
equivalent
employees (g) 303 310 284 303 284
Number of full
service
offices 25 25 24 25 24
Number of loan
production
offices 2 2 2 2 2
Number of
ATM's 33 34 31 33 31
Notes:
(a) - Unvested restricted stock of 16,649 shares are not included in
the calculation at 12-31-15.
(b) - Excludes goodwill and other intangible assets.
(c) - Excludes amortization expense, net of tax, of intangible
assets.
(d) - The efficiency ratio is calculated by dividing noninterest
expense excluding gains or losses on the sale of OREO by net interest
income including tax equivalent income on nontaxable loans and
securities and excluding (i) gains or losses on securities and (ii)
gains or losses on sale of premises and equipment.
(e) - Market value.
(f) - Assets are not owned by the Company and are not reflected in
the consolidated balance sheet.
(g) - Average for quarter.
Net Interest Income Analysis
For the Three Months Ended December 31, 2015 and 2014
(in thousands, except rates)
Interest
Average Balance Income/Expense Yield/Rate
--------------------- --------------- ----------
2015 2014 2015 2014 2015 2014
---------- ---------- ------- ------- ---- ----
Loans:
Commercial $ 166,771 $ 122,414 $ 1,506 $ 1,340 3.58% 4.34%
Real estate 814,502 689,167 10,245 8,436 5.03 4.90
Consumer 5,898 4,672 135 93 9.08 7.90
---------- ---------- ------- ------- ---- ----
Total loans 987,171 816,253 11,886 9,869 4.81 4.83
---------- ---------- ------- ------- ---- ----
Securities:
Federal agencies 88,255 77,015 364 235 1.65 1.22
Mortgage-backed & CMO's 62,652 58,281 352 337 2.25 2.31
State and municipal 176,148 182,501 1,613 1,759 3.66 3.86
Other 16,970 13,988 144 115 3.39 3.29
---------- ---------- ------- ------- ---- ----
Total securities 344,025 331,785 2,473 2,446 2.88 2.95
---------- ---------- ------- ------- ---- ----
Deposits in other banks 74,449 72,780 81 56 0.43 0.31
---------- ---------- ------- ------- ---- ----
Total interest-earning
assets 1,405,645 1,220,818 14,440 12,371 4.11 4.05
---- ----
Non-earning assets 128,602 117,422
---------- ----------
Total assets $1,534,247 $1,338,240
========== ==========
Deposits:
Demand $ 223,724 $ 192,757 22 15 0.04 0.03
Money market 197,230 176,353 65 56 0.13 0.13
Savings 111,742 89,648 14 12 0.05 0.05
Time 398,527 358,207 1,127 1,061 1.12 1.18
---------- ---------- ------- ------- ---- ----
Total deposits 931,223 816,965 1,228 1,144 0.52 0.56
Customer repurchase
agreements 42,524 50,493 2 1 0.02 0.01
Long-term borrowings 37,561 37,438 277 269 2.95 2.87
---------- ---------- ------- ------- ---- ----
Total interest-bearing
liabilities 1,011,308 904,896 1,507 1,414 0.59 0.62
------- ------- ---- ----
Noninterest bearing demand
deposits 316,389 253,030
Other liabilities 8,892 5,861
Shareholders' equity 197,658 174,453
---------- ----------
Total liabilities and
shareholders' equity $1,534,247 $1,338,240
========== ==========
Interest rate spread 3.52% 3.43%
==== ====
Net interest margin 3.68% 3.59%
==== ====
Net interest income (taxable
equivalent basis) 12,933 10,957
Less: Taxable equivalent
adjustment 489 502
------- -------
Net interest income $12,444 $10,455
======= =======
Net Interest Income Analysis
For the Years Ended December 31, 2015 and 2014
(in thousands, except yields and rates)
Interest
Average Balance Income/Expense Yield/Rate
--------------------- --------------- ----------
2015 2014 2015 2014 2015 2014
---------- ---------- ------- ------- ---- ----
Loans:
Commercial $ 156,646 $ 122,434 $ 6,893 $ 5,436 4.40% 4.44%
Real estate 809,545 677,633 39,362 33,508 4.86 4.94
Consumer 9,669 4,792 730 354 7.55 7.39
---------- ---------- ------- ------- ---- ----
Total loans 975,860 804,859 46,985 39,298 4.81 4.88
---------- ---------- ------- ------- ---- ----
Securities:
Federal agencies 88,384 74,390 1,364 852 1.54 1.15
Mortgage-backed & CMO's 61,741 61,377 1,346 1,453 2.18 2.37
State and municipal 183,208 187,595 6,746 7,307 3.68 3.90
Other 15,783 15,106 532 477 3.37 3.16
---------- ---------- ------- ------- ---- ----
Total securities 349,116 338,468 9,988 10,089 2.86 2.98
---------- ---------- ------- ------- ---- ----
Federal funds sold 5,230 - 6 - 0.11 -
Deposits in other banks 61,280 52,768 204 156 0.33 0.30
---------- ---------- ------- ------- ---- ----
Total interest-earning
assets 1,391,486 1,196,095 57,183 49,543 4.11 4.14
------- ------- ---- ----
Non-earning assets 132,280 116,377
---------- ----------
Total assets $1,523,766 $1,312,472
========== ==========
Deposits:
Demand $ 223,825 $ 183,994 82 71 0.04 0.04
Money market 196,828 177,046 260 232 0.13 0.13
Savings 109,697 88,629 53 47 0.05 0.05
Time 404,366 368,712 4,416 4,304 1.09 1.17
---------- ---------- ------- ------- ---- ----
Total deposits 934,716 818,381 4,811 4,654 0.51 0.57
Customer repurchase
agreements 48,105 43,724 9 7 0.02 0.02
Other short-term borrowings 14 701 - 2 0.36 0.29
Long-term borrowings 37,515 37,398 1,084 1,067 2.89 2.85
---------- ---------- ------- ------- ---- ----
Total interest-bearing
liabilities 1,020,350 900,204 5,904 5,730 0.58 0.64
------- ------- ---- ----
Noninterest bearing demand
deposits 297,483 234,149
Other liabilities 9,415 5,912
Shareholders' equity 196,518 172,207
---------- ----------
Total liabilities and
shareholders' equity $1,523,766 $1,312,472
========== ==========
Interest rate spread 3.53% 3.50%
==== ====
Net interest margin 3.69% 3.66%
==== ====
Net interest income (taxable
equivalent basis) 51,279 43,813
Less: Taxable equivalent
adjustment 2,014 2,088
------- -------
Net interest income $49,265 $41,725
======= =======
Source: American National Bankshares Inc.
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