American National Bankshares Inc. and Subsidiaries | ||||||
Consolidated Balance Sheets | ||||||
(Dollars in thousands, except share data) | ||||||
Unaudited | ||||||
March 31 | ||||||
ASSETS | 2008 | 2007 | ||||
Cash and due from banks | $ | 20,310 | $ | 22,844 | ||
Interest-bearing deposits in other banks | 4,218 | 22,817 | ||||
Securities available for sale, at fair value | 149,636 | 138,533 | ||||
Securities held to maturity | 11,039 | 13,475 | ||||
Total securities | 160,675 | 152,008 | ||||
Loans held for sale | 1,681 | 2,017 | ||||
Loans, net of unearned income | 554,667 | 543,357 | ||||
Less allowance for loan losses | (7,425 | ) | (7,590 | ) | ||
Net Loans | 547,242 | 535,767 | ||||
Premises and equipment, net | 13,392 | 12,759 | ||||
Goodwill | 22,468 | 22,468 | ||||
Core deposit intangibles, net | 2,358 | 2,735 | ||||
Accrued interest receivable and other assets | 12,705 | 14,129 | ||||
Total assets | $ | 785,049 | $ | 787,544 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Liabilities: | ||||||
Demand deposits -- noninterest-bearing | $ | 101,195 | $ | 116,940 | ||
Demand deposits -- interest-bearing | 103,365 | 113,778 | ||||
Money market deposits | 52,574 | 52,856 | ||||
Savings deposits | 64,198 | 69,083 | ||||
Time deposits | 260,207 | 253,377 | ||||
Total deposits | 581,539 | 606,034 | ||||
Repurchase agreements | 58,179 | 44,526 | ||||
FHLB borrowings | 16,125 | 15,050 | ||||
Trust preferred capital notes | 20,619 | 20,619 | ||||
Accrued interest payable and other liabilities | 5,714 | 4,675 | ||||
Total liabilities | 682,176 | 690,904 | ||||
Shareholders' equity: | ||||||
Common stock, $1 par, 10,000,000 shares authorized, | ||||||
6,100,185 shares outstanding at March 31, 2008 and | ||||||
6,156,823 shares outstanding at March 31, 2007 and | 6,100 | 6,157 | ||||
Capital in excess of par value | 26,472 | 26,456 | ||||
Retained earnings | 69,866 | 65,726 | ||||
Accumulated other comprehensive income (loss), net | 435 | (1,699 | ) | |||
Total shareholders' equity | 102,873 | 96,640 | ||||
Total liabilities and shareholders' equity | $ | 785,049 | $ | 787,544 |
American National Bankshares Inc. and Subsidiaries | |||||
Consolidated Statements of Income | |||||
(Dollars in thousands, except share and per share data) | |||||
Unaudited | |||||
Three Months Ended | |||||
March 31 | |||||
2008 | 2007 | ||||
Interest and Dividend Income: | |||||
Interest and fees on loans | $ | 9,444 | $ | 10,079 | |
Interest and dividends on securities: | |||||
Taxable | 1,231 | 1,136 | |||
Tax-exempt | 432 | 423 | |||
Dividends | 77 | 89 | |||
Other interest income | 76 | 171 | |||
Total interest and dividend income | 11,260 | 11,898 | |||
Interest Expense: | |||||
Interest on deposits | 3,582 | 3,783 | |||
Interest on repurchase agreements | 451 | 426 | |||
Interest on other borrowings | 159 | 206 | |||
Interest on trust preferred capital notes | 343 | 343 | |||
Total interest expense | 4,535 | 4,758 | |||
Net Interest Income | 6,725 | 7,140 | |||
Provision for Loan Losses | 140 | 303 | |||
Net Interest Income After Provision | |||||
for Loan Losses | 6,585 | 6,837 | |||
Noninterest Income: | |||||
Trust fees | 880 | 879 | |||
Service charges on deposit accounts | 565 | 622 | |||
Other fees and commissions | 203 | 200 | |||
Mortgage banking income | 195 | 190 | |||
Brokerage fees | 143 | 89 | |||
Securities gains, net | 30 | 25 | |||
Impairment of securities | - | - | |||
Other | 119 | 207 | |||
Total noninterest income | 2,135 | 2,212 | |||
Noninterest Expense: | |||||
Salaries | 2,469 | 2,390 | |||
Employee benefits | 747 | 648 | |||
Occupancy and equipment | 966 | 829 | |||
Bank franchise tax | 177 | 168 | |||
Core deposit intangible amortization | 94 | 94 | |||
Other | 996 | 1,041 | |||
Total noninterest expense | 5,449 | 5,170 | |||
Income Before Income Taxes | 3,271 | 3,879 | |||
Income Taxes | 966 | 1,175 | |||
Net Income | $ | 2,305 | $ | 2,704 | |
Net Income Per Common Share: | |||||
Basic | $ | 0.38 | $ | 0.44 | |
Diluted | $ | 0.38 | $ | 0.44 | |
Average Common Shares Outstanding: | |||||
Basic | 6,107,832 | 6,156,812 | |||
Diluted | 6,121,285 | 6,185,084 |
Net Interest Income Analysis | |||||||||||||||||||
For the Three Months Ended March 31, 2008 and 2007 | |||||||||||||||||||
(in thousands, except rates) | |||||||||||||||||||
Interest | |||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | |||||||||||||||||
2008 | 2007 | 2008 | 2007 | 2008 | 2007 | ||||||||||||||
Loans: | |||||||||||||||||||
Commercial | $ | 85,632 | $ | 88,962 | $ | 1,466 | $ | 1,693 | 6.85 | % | 7.61 | % | |||||||
Real Estate | 460,429 | 444,854 | 7,777 | 8,165 | 6.76 | 7.34 | |||||||||||||
Consumer | 9,524 | 10,346 | 217 | 242 | 9.11 | 9.36 | |||||||||||||
Total loans | 555,585 | 544,162 | 9,460 | 10,100 | 6.81 | 7.42 | |||||||||||||
Securities: | |||||||||||||||||||
Federal agencies | 50,064 | 82,257 | 597 | 857 | 4.77 | 4.17 | |||||||||||||
Mortgage-backed | 47,405 | 20,001 | 603 | 241 | 5.09 | 4.82 | |||||||||||||
State and municipal | 47,847 | 45,963 | 656 | 634 | 5.48 | 5.52 | |||||||||||||
Other | 6,383 | 8,783 | 99 | 129 | 6.20 | 5.87 | |||||||||||||
Total securities | 151,699 | 157,004 | 1,955 | 1,861 | 5.15 | 4.74 | |||||||||||||
Deposits in other banks | 10,224 | 13,261 | 76 | 171 | 2.97 | 5.16 | |||||||||||||
Total interest-earning assets | 717,508 | 714,427 | 11,491 | 12,132 | 6.41 | 6.79 | |||||||||||||
Non-earning assets | 62,696 | 64,431 | |||||||||||||||||
Total assets | $ | 780,204 | $ | 778,858 | |||||||||||||||
Deposits: | |||||||||||||||||||
Demand | $ | 107,994 | $ | 110,115 | 225 | 424 | 0.83 | 1.54 | |||||||||||
Money market | 51,320 | 52,140 | 294 | 349 | 2.29 | 2.68 | |||||||||||||
Savings | 63,184 | 68,927 | 116 | 235 | 0.73 | 1.36 | |||||||||||||
Time | 263,700 | 262,624 | 2,947 | 2,775 | 4.47 | 4.23 | |||||||||||||
Total deposits | 486,198 | 493,806 | 3,582 | 3,783 | 2.95 | 3.06 | |||||||||||||
Repurchase agreements | 54,624 | 46,254 | 451 | 426 | 3.30 | 3.68 | |||||||||||||
Other borrowings | 33,870 | 36,720 | 502 | 549 | 5.93 | 5.98 | |||||||||||||
Total interest-bearing | |||||||||||||||||||
liabilities | 574,692 | 576,780 | 4,535 | 4,758 | 3.16 | 3.30 | |||||||||||||
Noninterest bearing | |||||||||||||||||||
demand deposits | 97,212 | 101,011 | |||||||||||||||||
Other liabilities | 5,958 | 5,735 | |||||||||||||||||
Shareholders' equity | 102,342 | 95,332 | |||||||||||||||||
Total liabilities and | |||||||||||||||||||
shareholders' equity | $ | 780,204 | $ | 778,858 | |||||||||||||||
Interest rate spread | 3.25 | % | 3.49 | % | |||||||||||||||
Net interest margin | 3.88 | % | 4.13 | % | |||||||||||||||
Net interest income (taxable equivalent basis) | 6,956 | 7,374 | |||||||||||||||||
Less: Taxable equivalent adjustment | 231 | 234 | |||||||||||||||||
Net interest income | $ | 6,725 | $ | 7,140 |
Financial Highlights | ||||||||||
American National Bankshares Inc. and Subsidiaries | ||||||||||
(Dollars in thousands, except share data) | ||||||||||
Unaudited | ||||||||||
Three Months Ended March 31 | ||||||||||
2008 | 2007 | Change | ||||||||
EARNINGS | ||||||||||
Interest income | $ | 11,260 | $ | 11,898 | (5.4 | ) % | ||||
Interest expense | 4,535 | 4,758 | (4.7 | ) | ||||||
Net interest income | 6,725 | 7,140 | (5.8 | ) | ||||||
Provision for loan losses | 140 | 303 | (53.8 | ) | ||||||
Noninterest income | 2,135 | 2,212 | (3.5 | ) | ||||||
Noninterest expense | 5,449 | 5,170 | 5.4 | |||||||
Income taxes | 966 | 1,175 | (17.8 | ) | ||||||
Net income | 2,305 | 2,704 | (14.8 | ) | ||||||
PER COMMON SHARE | ||||||||||
Earnings per share - basic | $ | 0.38 | $ | 0.44 | (13.6 | ) % | ||||
Earnings per share - diluted | 0.38 | 0.44 | (13.6 | ) | ||||||
Cash dividends declared | 0.23 | 0.22 | 4.5 | |||||||
Book value per share | 16.86 | 15.70 | 7.4 | |||||||
Book value per share - tangible (a) | 12.79 | 11.60 | 10.3 | |||||||
Closing market price | 21.26 | 22.88 | (7.1 | ) | ||||||
FINANCIAL RATIOS | ||||||||||
Return on average assets | 1.18 | % | 1.39 | % | (21 | ) bp | ||||
Return on average equity | 9.01 | 11.35 | (234 | ) | ||||||
Return on average tangible equity (b) | 12.24 | 15.81 | (357 | ) | ||||||
Average equity to average assets | 13.12 | 12.24 | 88 | |||||||
Net interest margin, taxable equivalent | 3.88 | 4.13 | (25 | ) | ||||||
Efficiency ratio | 60.09 | 54.11 | 598 | |||||||
Effective tax rate | 29.53 | 30.29 | (76 | ) | ||||||
PERIOD END BALANCES | ||||||||||
Securities | $ | 160,675 | $ | 152,008 | 5.7 | % | ||||
Loans held for sale | 1,681 | 2,017 | (16.7 | ) | ||||||
Loans, net of unearned income | 554,667 | 543,357 | 2.1 | |||||||
Goodwill and other intangibles | 24,826 | 25,203 | (1.5 | ) | ||||||
Assets | 785,049 | 787,544 | (0.3 | ) | ||||||
Assets - tangible (a) | 760,223 | 762,341 | (0.3 | ) | ||||||
Deposits | 581,539 | 606,034 | (4.0 | ) | ||||||
Repurchase agreements | 58,179 | 44,526 | 30.7 | |||||||
Borrowings | 36,744 | 35,669 | 3.0 | |||||||
Shareholders' equity | 102,873 | 96,640 | 6.4 | |||||||
Shareholders' equity - tangible (a) | 78,047 | 71,437 | 9.3 | |||||||
AVERAGE BALANCES | ||||||||||
Securities | $ | 151,699 | $ | 157,004 | (3.4 | ) % | ||||
Loans held for sale | 1,614 | 1,328 | 21.5 | |||||||
Loans, net of unearned income | 553,971 | 542,834 | 2.1 | |||||||
Interest-earning assets | 717,508 | 714,427 | 0.4 | |||||||
Goodwill and other intangibles | 24,864 | 25,240 | (1.5 | ) | ||||||
Assets | 780,204 | 778,858 | 0.2 | |||||||
Assets - tangible (a) | 755,340 | 753,618 | 0.2 | |||||||
Interest-bearing deposits | 486,198 | 493,806 | (1.5 | ) | ||||||
Deposits | 583,410 | 594,817 | (1.9 | ) | ||||||
Repurchase agreements | 54,624 | 46,254 | 18.1 | |||||||
Borrowings | 33,870 | 36,720 | (7.8 | ) | ||||||
Shareholders' equity | 102,342 | 95,332 | 7.4 | |||||||
Shareholders' equity - tangible (a) | 77,478 | 70,092 | 10.5 | |||||||
CAPITAL | ||||||||||
Average shares outstanding - basic | 6,107,832 | 6,156,812 | (0.8 | ) % | ||||||
Average shares outstanding - diluted | 6,121,285 | 6,185,084 | (1.0 | ) | ||||||
Shares repurchased | 28,800 | 11,600 | 148.3 | |||||||
Average price of shares repurchased | $ | 20.80 | $ | 23.15 | (10.2 | ) | ||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||
Beginning balance | $ | 7,395 | $ | 7,264 | 1.8 | % | ||||
Provision for loan losses | 140 | 303 | (53.8 | ) | ||||||
Charge-offs | (170 | ) | (49 | ) | 246.9 | |||||
Recoveries | 60 | 72 | (16.7 | ) | ||||||
Ending balance | $ | 7,425 | $ | 7,590 | (2.2 | ) | ||||
NONPERFORMING ASSETS | ||||||||||
Nonperforming loans: | ||||||||||
90 days past due | $ | - | $ | - | - | % | ||||
Nonaccrual | 2,772 | 3,689 | (24.9 | ) | ||||||
Foreclosed real estate | 550 | 99 | 455.6 | |||||||
Nonperforming assets | $ | 3,322 | $ | 3,788 | (12.3 | ) | ||||
ASSET QUALITY RATIOS | ||||||||||
Net chargeoffs (recoveries) to average loans | 0.08 | % | (0.02 | ) | % | 10 | bp | |||
Nonperforming assets to total assets (c) | 0.42 | 0.48 | (6 | ) | ||||||
Nonperforming loans to total loans (c) | 0.50 | 0.68 | (18 | ) | ||||||
Allowance for loan losses to total loans (c) | 1.34 | 1.40 | (6 | ) | ||||||
Allowance for loan losses to | ||||||||||
nonperforming loans (c) | 2.68 | X | 2.06 | X | 62 | |||||
OTHER DATA | ||||||||||
Fiduciary assets at period-end (d) | $ | 386,375 | $ | 388,405 | (0.5 | ) % | ||||
Retail brokerage assets at period-end (d) | $ | 89,927 | $ | 81,270 | 10.7 | |||||
Number full time-time equivalent employees | 258 | 257 | 0 | |||||||
Number of full service offices | 19 | 18 | 6 | |||||||
Number of loan production offices | 1 | 1 | - | |||||||
Number of ATM's | 23 | 23 | - | |||||||
Notes: | ||||||||||
(a) - Excludes goodwill and other intangible assets | ||||||||||
(b) - Excludes amortization expense, net of tax, of intangible assets | ||||||||||
(c) - Balance sheet amounts used in calculations are based on period-end balances | ||||||||||
(d) - Market value | ||||||||||
bp - Change is measured in basis points |