American National Bankshares Inc. Reports Second Quarter 2015 Earnings
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DANVILLE, VA -- (Marketwired) -- 07/23/15 -- American National Bankshares Inc. ("American National") (NASDAQ: AMNB)
- Organic loan growth of $61.5 million (7.6%) over last four quarters
- Completed integration of MainStreet BankShares, Inc.
- Q2 2015 net income of $2.9 million and diluted EPS of $0.33
- Net interest margin of 3.69% for Q2 2015
- Average shareholders' equity of $197 million is 12.85% of average assets
American National Bankshares Inc. ("American National") (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced twelve month organic loan growth of 7.6%, the completion of the integration of MainStreet BankShares, Inc., and $2,880,000 net income for the second quarter 2015.
The net income of $2,880,000 compared to $3,233,000 for the second quarter of 2014, is a $353,000 or 10.9% decrease. Basic and diluted net income per common share was $0.33 for the 2015 quarter compared to $0.41 for the 2014 quarter. Net income for the second quarter of 2015 produced a return on average assets of 0.75%, a return on average equity of 5.86%, and a return on average tangible equity of 8.26%.
Net income for the first six months of 2015 was $6,395,000 compared to $6,683,000 for the comparable period of 2014, a $288,000 or 4.3% decrease. Basic and diluted net income per common share was $0.73 for the 2015 period compared to $0.85 for the 2014 period.
The 2015 quarter and six month period were negatively impacted by nonrecurring, merger related costs associated with the January acquisition of MainStreet BankShares, Inc. ("MainStreet"). Merger related costs for the 2015 quarter were $1,502,000 and for the six month period $1,861,000.
Financial Performance and Overview Jeffrey V. Haley, President and Chief Executive Officer, reported, "One major story for early 2015 continues to be our acquisition of MainStreet and its banking subsidiary, Franklin Community Bank, N.A. ("Franklin Community Bank"). This merger closed on January 1, 2015, and we completed the operational and technology aspects of the union in mid-May. We are extremely pleased with the integration progress made during the first half of this year and we are fortunate to have the employees and customers of Franklin Community Bank as part of our growing American National corporate family.
"The merger has had a positive impact on our balance sheet and we are also seeing organic balance sheet growth in our other markets.
"At June 30, 2015, American National had $982,905,000 in loans compared to $813,057,000 at June 30, 2014, an increase of $169,848,000 or 20.9%. Of this increase, $108,326,000 or 63.8% relates directly to the MainStreet acquisition.
"Our other major story for early 2015 is organic growth. Organic loan growth over the past year was $61,522,000 or 7.6%. We are very encouraged that a combination of active business development and gradually improving local market economic conditions are beginning to result in high quality growth.
"At June 30, 2015, American National had $1,234,018,000 in deposits compared to $1,035,800,000 at June 30, 2014, an increase of $198,218,000 or 19.1%. Of this increase, $125,320,000 or 63.2% relates directly to the MainStreet acquisition. The deposit growth was strong in all categories, but most notably in non-maturity (core) deposits. We are continuously working to grow core deposits and their affiliated relationships, but the challenge in this ongoing low rate environment is to do that in a cost effective and yet competitive manner. Our cost of interest bearing deposits for the second quarter was 0.50%, compared to 0.57% for the 2014 quarter.
"On the earnings side, our net income for the second quarter was $2,880,000, down from $3,233,000 in the 2014 quarter, a decrease of $353,000 or 10.9%.
"We had several drivers that impacted the 2015 quarter compared to the 2014 quarter.
"The merger with MainStreet had a significant and positive impact to operating results by adding substantially to earning assets.
"The provision for loan loss decreased by $50,000 during the quarter. This decrease was primarily related to improving economic conditions and continuing strong asset quality metrics, but was offset by loan growth during the quarter.
"Noninterest income was higher in the 2015 quarter by $558,000 or 20.7%, related mostly to the MainStreet merger.
"Noninterest expense was higher in the 2015 quarter by $3,277,000 or 39.2%, related mostly to the merger and to merger related, nonrecurring expenses. The nonrecurring merger costs were $1,502,000 for the quarter."
Haley concluded, "The first half of 2015 has been busy and productive for American National. The Franklin Community Bank merger in January and operational conversion in May were major accomplishments and I want to thank all people that worked so hard and successfully to make them happen.
"On another front, we are extremely pleased to see the beginning of significant organic loan growth. This is our favorite leading indicator of improving business conditions.
"American National will continue to grow its balance sheet and maintain high asset quality. Asset quality is a fundamental value for us. But, at the same time, we are constantly seeking ways to better deploy our capital. Among those ways is our ongoing stock repurchase plan, which during the quarter bought almost 52,000 shares. These efforts will continue to manifest themselves through continuing consideration of future merger and acquisition opportunities, continuing timely and economical stock repurchase activity, and an ongoing review of our dividend policy."
Capital American National's capital ratios remain strong and exceed all regulatory requirements.
For the quarter ended June 30, 2015, average shareholders' equity was 12.85% of average assets, compared to 13.22% for the quarter ended June 30, 2014.
Book value per common share was $22.43 at June 30, 2015, compared to $21.95 at June 30, 2014.
Tangible book value per common share was $16.96 at June 30, 2015, compared to $16.65 at June 30, 2014.
Credit Quality Measurements Non-performing assets ($3,772,000 of non-performing loans and $2,113,000 of other real estate owned) represented 0.39% of total assets at June 30, 2015, compared to 0.60% at June 30, 2014.
Annualized net charge offs to average loans was six basis points (0.06%) for the 2015 second quarter, compared to zero basis points (0.00%) for the same quarter in 2014.
The allowance for loan losses as a percentage of total loans was 1.30% at June 30, 2015 compared to 1.57% at June 30, 2014. The largest driver of this decrease was the merger with MainStreet, whose loans have been marked to fair value at the merger date and whose related allowance for loan loss was eliminated in the valuation process.
Other real estate owned was $2,113,000 at June 30, 2015, compared to $2,622,000 at June 30, 2014, a decrease of $509,000 or 19.4%.
Merger related financial impact The fair value adjustments related to our two recent mergers have had a favorable impact on net interest income and income before income tax for American National. The adjustments are summarized below (dollars in thousands):
MainStreet June 30, 2015
-------------------- ---------------------------
For the three For the six
months ended months ended
------------- -------------
Net Interest Income $ 316 $ 1,019
Income Before Income
Taxes $ 243 $ 872
MidCarolina June 30, 2015 June 30, 2014
-------------------- --------------------------- ---------------------------
For the three For the six For the three For the six
months ended months ended months ended months ended
------------- ------------- ------------- -------------
Net Interest Income $ 528 $ 938 $ 604 $ 1,500
Income Before Income
Taxes $ 301 $ 485 $ 368 $ 1,029
The MainStreet merger was effective January 1, 2015; therefore, no comparative 2014 information is presented.
Net Interest Income Net interest income before provision for loan losses increased to $12,382,000 in the second quarter of 2015 from $10,351,000 in the second quarter of 2014, an increase of $2,031,000 or 19.6%.
For the 2015 quarter, the net interest margin was 3.69% compared to 3.68% for the same quarter in 2014, an increase of one basis point (0.01%).
Provision for loan losses Provision expense for the second quarter of 2015 was $100,000 compared to $150,000 for the second quarter of 2014.
The need for provision expense in the 2015 quarter was driven primarily by an increase in loan volume of approximately $17 million. It was partially mitigated by improving economic conditions and continuing strong asset quality metrics.
Noninterest Income Noninterest income totaled $3,258,000 in the second quarter of 2015, compared with $2,700,000 in the second quarter of 2014, an increase of $558,000 or 20.7%. Almost all income categories showed substantial increases, most of which were related to increased transaction volumes resulting from the MainStreet transaction.
Noninterest Expense Noninterest expense totaled $11,642,000 in the second quarter of 2015, compared to $8,365,000 in the second quarter of 2014, an increase of $3,277,000 or 39.2%.
All expense categories were impacted by the MainStreet merger and the integration of Franklin Community Bank into American National's operations.
However, the major driver of the increase was nonrecurring, merger related expenses, related to the MainStreet acquisition, which accounted for $1,502,000 or 45.8% of the increase. The operational conversion of Franklin Community Bank was completed in mid-May and substantially all of the related technology costs have been recognized. Accordingly, management expects no substantial expense in this category in future periods.
About American National As of January 1, 2015, with the closing of the acquisition of MainStreet BankShares, Inc., 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 southern and central Virginia and north central North Carolina with 27 banking offices and two loan production offices. American National Bank and Trust Company also manages an additional $767 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. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share and per share data)
Unaudited
June 30
-------------------------
ASSETS 2015 2014
----------- -----------
Cash and due from banks $ 24,548 $ 21,295
Interest-bearing deposits in other banks 50,758 22,948
Federal funds sold 408 -
Securities available for sale, at fair value 355,595 349,719
Restricted stock, at cost 5,581 4,998
Loans held for sale 2,720 118
Loans 982,905 813,057
Less allowance for loan losses (12,793) (12,763)
----------- -----------
Net Loans 970,112 800,294
----------- -----------
Premises and equipment, net 24,182 23,083
Other real estate owned, net 2,113 2,622
Goodwill 44,210 39,043
Core deposit intangibles, net 3,283 2,498
Bank owned life insurance 17,376 14,945
Accrued interest receivable and other assets 23,470 19,085
----------- -----------
Total assets $ 1,524,356 $ 1,300,648
=========== ===========
Liabilities
Demand deposits -- noninterest-bearing $ 294,342 $ 228,588
Demand deposits -- interest-bearing 239,582 189,700
Money market deposits 190,799 165,090
Savings deposits 109,732 88,539
Time deposits 399,563 363,883
----------- -----------
Total deposits 1,234,018 1,035,800
----------- -----------
Short-term borrowings:
Customer repurchase agreements 50,123 38,420
Other short-term borrowings - 12,000
Long-term borrowings 9,947 9,924
Trust preferred capital notes 27,571 27,470
Accrued interest payable and other liabilities 7,814 4,951
----------- -----------
Total liabilities 1,329,473 1,128,565
----------- -----------
Shareholders' equity
Preferred stock, $5 par, 2,000,000 shares
authorized, none outstanding
Common stock, $1 par, 20,000,000 shares
authorized, 8,688,480 shares outstanding at
June 30, 2015 and 7,840,132 shares
outstanding at June 30, 2014 8,671 7,840
Capital in excess of par value 76,826 56,944
Retained earnings 106,984 102,152
Accumulated other comprehensive income, net 2,402 5,147
----------- -----------
Total shareholders' equity 194,883 172,083
----------- -----------
Total liabilities and shareholders' equity $ 1,524,356 $ 1,300,648
=========== ===========
American National Bankshares Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
Unaudited
Three Months Ended Six Months Ended
June 30 June 30
----------------------- -----------------------
2015 2014 2015 2014
----------- ----------- ----------- -----------
Interest and Dividend
Income:
Interest and fees on
loans $ 11,767 $ 9,687 $ 23,537 $ 19,534
Interest on federal funds
sold 1 - 5 -
Interest and dividends on
securities:
Taxable 994 968 1,969 1,932
Tax-exempt 940 1,016 1,900 2,051
Dividends 85 74 167 149
Other interest income 50 35 98 68
----------- ----------- ----------- -----------
Total interest and
dividend income 13,837 11,780 27,676 23,734
----------- ----------- ----------- -----------
Interest Expense:
Interest on deposits 1,184 1,161 2,378 2,390
Interest on short-term
borrowings 2 2 5 4
Interest on long-term
borrowings 81 81 161 161
Interest on trust
preferred capital notes 188 185 372 369
----------- ----------- ----------- -----------
Total interest
expense 1,455 1,429 2,916 2,924
----------- ----------- ----------- -----------
Net Interest Income 12,382 10,351 24,760 20,810
Provision for loan losses 100 150 700 150
----------- ----------- ----------- -----------
Net Interest Income After
Provision
for Loan Losses 12,282 10,201 24,060 20,660
----------- ----------- ----------- -----------
Noninterest Income:
Trust fees 1,005 1,017 1,957 2,139
Service charges on
deposit accounts 525 431 1,022 844
Other fees and
commissions 607 493 1,195 937
Mortgage banking income 389 275 611 538
Securities gains, net 237 150 547 189
Other 495 334 1,082 756
----------- ----------- ----------- -----------
Total noninterest
income 3,258 2,700 6,414 5,403
----------- ----------- ----------- -----------
Noninterest Expense:
Salaries 4,308 3,638 8,455 7,176
Employee benefits 1,111 847 2,186 1,822
Occupancy and equipment 1,024 910 2,196 1,846
FDIC assessment 195 165 380 329
Bank franchise tax 220 231 455 453
Core deposit intangible
amortization 300 330 601 661
Data processing 483 345 945 693
Software 277 235 560 497
Other real estate owned,
net 133 (9) 186 7
Merger related expenses 1,502 - 1,861 -
Other 2,089 1,673 3,864 3,304
----------- ----------- ----------- -----------
Total noninterest
expense 11,642 8,365 21,689 16,788
----------- ----------- ----------- -----------
Income Before Income Taxes 3,898 4,536 8,785 9,275
Income Taxes 1,018 1,303 2,390 2,592
----------- ----------- ----------- -----------
Net Income $ 2,880 $ 3,233 $ 6,395 $ 6,683
=========== =========== =========== ===========
Net Income Per Common
Share:
Basic $ 0.33 $ 0.41 $ 0.73 $ 0.85
Diluted $ 0.33 $ 0.41 $ 0.73 $ 0.85
Weighted Average Common
Shares Outstanding:
Basic 8,707,504 7,872,079 8,713,528 7,886,232
Diluted 8,715,934 7,879,854 8,722,266 7,896,541
American National Bankshares Inc. and Subsidiaries
Financial Highlights
(In thousands,
except share, ratio
and
nonfinancial data,
unaudited) 2nd Qtr 1st Qtr 2nd Qtr YTD YTD
2015 2015 2014 2015 2014
---------- ---------- ---------- ---------- ----------
EARNINGS
Interest income $ 13,837 $ 13,839 $ 11,780 $ 27,676 $ 23,734
Interest expense 1,455 1,461 1,429 2,916 2,924
Net interest
income 12,382 12,378 10,351 24,760 20,810
Provision for loan
losses 100 600 150 700 150
Noninterest income 3,258 3,156 2,700 6,414 5,403
Noninterest
expense 11,642 10,047 8,365 21,689 16,788
Income taxes 1,018 1,372 1,303 2,390 2,592
Net income 2,880 3,515 3,233 6,395 6,683
PER COMMON SHARE
Income per share -
basic $ 0.33 $ 0.40 $ 0.41 $ 0.73 $ 0.85
Income per share -
diluted 0.33 0.40 0.41 0.73 0.85
Cash dividends
paid 0.23 0.23 0.23 0.46 0.46
Book value per
share (a) 22.43 22.58 21.95 22.43 21.95
Book value per
share - tangible
(a) (b) 16.96 17.09 16.65 16.96 16.65
Closing market
price 23.81 22.58 21.73 23.81 21.73
FINANCIAL RATIOS
Return on average
assets 0.75% 0.93% 1.00% 0.84% 1.03%
Return on average
equity 5.86 7.17 7.53 6.51 7.82
Return on average
tangible equity
(c) 8.26 10.02 10.67 9.14 11.10
Average equity to
average assets 12.85 12.91 13.22 12.88 13.14
Tangible equity to
tangible assets
(b) 9.98 9.98 10.37 9.98 10.37
Net interest
margin, taxable
equivalent 3.69 3.73 3.68 3.71 3.69
Efficiency ratio
(d) 72.76 63.90 62.87 68.36 62.34
Effective tax rate 26.12 28.07 28.73 27.21 27.95
PERIOD-END BALANCES
Securities $ 361,176 $ 357,544 $ 354,717 $ 361,176 $ 354,717
Loans held for
sale 2,720 1,936 118 2,720 118
Loans, net of
unearned income 982,905 965,902 813,057 982,905 813,057
Goodwill and other
intangibles 47,493 47,793 41,541 47,493 41,541
Assets 1,524,356 1,540,098 1,300,648 1,524,356 1,300,648
Assets - tangible
(b) 1,476,863 1,492,305 1,259,107 1,476,863 1,259,107
Deposits 1,234,018 1,242,675 1,035,800 1,234,018 1,035,800
Customer
repurchase
agreements 50,123 53,664 38,420 50,123 38,420
Other short-term
borrowings - - 12,000 - 12,000
Long-term
borrowings 37,518 37,487 37,394 37,518 37,394
Shareholders'
equity 194,883 196,689 172,083 194,883 172,083
Shareholders'
equity - tangible
(b) 147,390 148,896 130,542 147,390 130,542
AVERAGE BALANCES
Securities $ 349,813 $ 345,800 $ 347,726 $ 347,816 $ 346,446
Loans held for
sale 2,836 939 1,685 1,893 1,858
Loans, net of
unearned income 972,083 954,882 793,060 963,530 790,752
Interest-earning
assets 1,397,448 1,382,817 1,183,559 1,390,172 1,185,172
Goodwill and other
intangibles 47,682 47,988 41,738 47,834 41,907
Assets 1,530,867 1,518,449 1,299,535 1,524,693 1,301,078
Assets - tangible
(b) 1,483,185 1,470,461 1,257,797 1,476,859 1,259,171
Interest-bearing
deposits 945,931 938,064 820,342 942,019 825,258
Deposits 1,236,626 1,221,037 1,043,479 1,228,874 1,047,524
Customer
repurchase
agreements 51,417 53,181 40,720 52,294 39,267
Long-term
borrowings 37,499 37,469 37,376 37,484 37,374
Shareholders'
equity 196,663 196,086 171,784 196,376 170,920
Shareholders'
equity - tangible
(b) 148,981 148,098 130,046 148,542 129,013
American National Bankshares Inc. and Subsidiaries
Financial Highlights
(In thousands,
except share, ratio
and
nonfinancial data,
unaudited) 2nd Qtr 1st Qtr 2nd Qtr YTD YTD
2015 2015 2014 2015 2014
---------- ---------- ---------- ---------- ----------
CAPITAL
Weighted average
shares
outstanding -
basic 8,707,504 8,723,633 7,872,079 8,713,528 7,886,232
Weighted average
shares
outstanding -
diluted 8,715,934 8,732,679 7,879,854 8,722,266 7,896,541
ALLOWANCE FOR LOAN
LOSSES
Beginning balance $ 12,844 $ 12,427 $ 12,614 $ 12,427 $ 12,600
Provision for loan
losses 100 600 150 700 150
Charge-offs (321) (309) (95) (630) (168)
Recoveries 170 126 94 296 181
---------- ---------- ---------- ---------- ----------
Ending balance $ 12,793 $ 12,844 $ 12,763 $ 12,793 $ 12,763
LOANS
Construction and
land development $ 66,543 $ 68,069 $ 50,856 $ 66,543 $ 50,856
Commercial real
estate 432,315 436,562 366,722 432,315 366,722
Residential real
estate 220,778 211,261 175,387 220,778 175,387
Home equity 97,866 97,811 89,725 97,866 89,725
Commercial and
industrial 159,015 146,280 125,163 159,015 125,163
Consumer 6,388 5,919 5,204 6,388 5,204
---------- ---------- ---------- ---------- ----------
Total $ 982,905 $ 965,902 $ 813,057 $ 982,905 $ 813,057
NONPERFORMING ASSETS
AT PERIOD-END
Nonperforming
loans:
90 days past due
and accruing $ - $ - $ - $ - $ -
Nonaccrual 3,772 5,123 5,224 3,772 5,224
Other real estate
owned 2,113 2,653 2,622 2,113 2,622
---------- ---------- ---------- ---------- ----------
Nonperforming
assets $ 5,885 $ 7,776 $ 7,846 $ 5,885 $ 7,846
ASSET QUALITY RATIOS
Allowance for loan
losses to total
loans 1.30% 1.33% 1.57% 1.30% 1.57%
Allowance for loan
losses to
nonperforming
loans 339.16 250.71 244.31 339.16 244.31
Nonperforming
assets to total
assets 0.39 0.50 0.60 0.39 0.60
Nonperforming
loans to total
loans 0.38 0.53 0.64 0.38 0.64
Annualized net
charge-offs
(recoveries) to
average loans 0.06 0.08 0.00 0.07 0.00
OTHER DATA
Fiduciary assets
at period-end (e)
(f) $ 509,289 $ 502,779 $ 450,352 $ 509,289 $ 450,352
Retail brokerage
assets at period-
end (e) (f) $ 257,306 $ 244,725 $ 197,625 $ 257,306 $ 197,625
Number full-time
equivalent
employees (g) 322 318 291 322 291
Number of full
service offices 27 27 25 27 25
Number of loan
production
offices 2 2 2 2 2
Number of ATM's 34 34 31 34 31
Notes:
(a) - Unvested restricted stock of 17,761 shares are not included in the
calculation.
(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 June 30, 2015 and 2014
(in thousands, except rates)
Interest
Average Balance Income/Expense Yield/Rate
--------------------- ----------------- --------------
2015 2014 2015 2014 2015 2014
---------- ---------- -------- -------- ------ ------
Loans:
Commercial $ 155,752 $ 120,216 $ 1,760 $ 1,285 4.53% 4.29%
Real estate 807,605 669,537 9,841 8,325 4.87 4.97
Consumer 11,562 4,992 205 87 7.11 6.99
---------- ---------- -------- -------- ------ ------
Total loans 974,919 794,745 11,806 9,697 4.85 4.88
---------- ---------- -------- -------- ------ ------
Securities:
Federal agencies &
GSEs 86,815 79,284 324 227 1.49 1.15
Mortgage-backed &
CMOs 61,738 62,356 334 368 2.16 2.36
State and
municipal 185,848 190,821 1,719 1,866 3.70 3.91
Other 15,412 15,265 125 121 3.24 3.17
---------- ---------- -------- -------- ------ ------
Total securities 349,813 347,726 2,502 2,582 2.86 2.97
---------- ---------- -------- -------- ------ ------
Federal funds sold 6,480 - 2 - 0.12 -
Deposits in other
banks 66,236 41,088 50 35 0.30 0.34
---------- ---------- -------- -------- ------ ------
Total interest-
earning assets 1,397,448 1,183,559 14,360 12,314 4.11 4.16
-------- -------- ------ ------
Non-earning assets 133,419 115,976
---------- ----------
Total assets $1,530,867 $1,299,535
========== ==========
Deposits:
Demand $ 237,102 $ 185,601 22 19 0.04 0.04
Money market 195,578 171,466 61 50 0.13 0.12
Savings 109,397 89,485 14 11 0.05 0.05
Time 403,854 373,790 1,087 1,081 1.08 1.16
---------- ---------- -------- -------- ------ ------
Total deposits 945,931 820,342 1,184 1,161 0.50 0.57
Customer repurchase
agreements 51,417 40,720 2 1 0.02 0.01
Other short-term
borrowings - 571 - 1 - -
Long-term borrowings 37,499 37,376 269 266 2.87 2.85
---------- ---------- -------- -------- ------ ------
Total interest-
bearing
liabilities 1,034,847 899,009 1,455 1,429 0.56 0.64
-------- -------- ------ ------
Noninterest bearing
demand deposits 290,695 223,137
Other liabilities 8,662 5,605
Shareholders' equity 196,663 171,784
---------- ----------
Total liabilities
and
shareholders'
equity $1,530,867 $1,299,535
========== ==========
Interest rate spread 3.55% 3.52%
====== ======
Net interest margin 3.69% 3.68%
====== ======
Net interest income
(taxable equivalent
basis) 12,905 10,885
Less: Taxable
equivalent
adjustment 523 534
-------- --------
Net interest income $ 12,382 $ 10,351
======== ========
Net Interest Income Analysis
For the Six Months Ended June 30, 2015 and 2014
(in thousands, except rates)
Interest
Average Balance Income/Expense Yield/Rate
--------------------- ----------------- --------------
2015 2014 2015 2014 2015 2014
---------- ---------- -------- -------- ------ ------
Loans:
Commercial $ 147,482 $ 120,460 $ 3,586 $ 2,757 4.90% 4.62%
Real estate 804,507 667,168 19,560 16,621 4.86 4.98
Consumer 13,434 4,982 445 176 6.68 7.12
---------- ---------- -------- -------- ------ ------
Total loans 965,423 792,610 23,591 19,554 4.89 4.94
---------- ---------- -------- -------- ------ ------
Securities:
Federal agencies &
GSEs 80,866 73,850 569 405 1.41 1.10
Mortgage-backed &
CMOs 63,637 64,482 712 771 2.24 2.39
State and
municipal 188,020 192,174 3,482 3,765 3.70 3.92
Other 15,293 15,940 248 248 3.24 3.11
---------- ---------- -------- -------- ------ ------
Total securities 347,816 346,446 5,011 5,189 2.88 3.00
---------- ---------- -------- -------- ------ ------
Federal funds sold 10,508 - 6 - 0.12 -
Deposits in other
banks 66,425 46,116 98 68 0.30 0.30
---------- ---------- -------- -------- ------ ------
Total interest-
earning assets 1,390,172 1,185,172 28,706 24,811 4.13 4.19
-------- -------- ------ ------
Non-earning assets 134,521 115,906
---------- ----------
Total assets $1,524,693 $1,301,078
========== ==========
Deposits:
Demand $ 224,955 $ 176,889 40 41 0.04 0.05
Money market 199,236 182,109 132 125 0.13 0.14
Savings 108,545 88,199 26 25 0.05 0.06
Time 409,283 378,061 2,180 2,199 1.07 1.17
---------- ---------- -------- -------- ------ ------
Total deposits 942,019 825,258 2,378 2,390 0.51 0.58
Customer repurchase
agreements 52,294 39,267 5 3 0.02 0.02
Other short-term
borrowings - 287 - 1 - -
Long-term borrowings 37,484 37,374 533 530 2.84 2.84
---------- ---------- -------- -------- ------ ------
Total interest-
bearing
liabilities 1,031,797 902,186 2,916 2,924 0.57 0.65
-------- -------- ------ ------
Noninterest bearing
demand deposits 286,855 222,266
Other liabilities 9,665 5,706
Shareholders' equity 196,376 170,920
---------- ----------
Total liabilities
and
shareholders'
equity $1,524,693 $1,301,078
========== ==========
Interest rate spread 3.56% 3.54%
====== ======
Net interest margin 3.71% 3.69%
====== ======
Net interest income
(taxable equivalent
basis) 25,790 21,887
Less: Taxable
equivalent
adjustment 1,030 1,077
-------- --------
Net interest income $ 24,760 $ 20,810
======== ========
Source: American National Bankshares Inc.
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