American National Bankshares Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
Dollars in thousands, except share and per share data | ||||||||
Unaudited | ||||||||
March 31 | ||||||||
ASSETS | 2009 | 2008 | ||||||
Cash and due from banks | $ | 13,632 | $ | 20,310 | ||||
Interest-bearing deposits in other banks | 18,188 | 4,218 | ||||||
Securities available for sale, at fair value | 167,981 | 149,636 | ||||||
Securities held to maturity | 6,811 | 11,039 | ||||||
Total securities | 174,792 | 160,675 | ||||||
Loans held for sale | 2,782 | 1,681 | ||||||
Loans, net of unearned income | 569,003 | 554,667 | ||||||
Less allowance for loan losses | (7,836 | ) | (7,425 | ) | ||||
Net Loans | 561,167 | 547,242 | ||||||
Premises and equipment, net | 18,282 | 13,392 | ||||||
Other real estate owned | 3,345 | 550 | ||||||
Goodwill | 22,468 | 22,468 | ||||||
Core deposit intangibles, net | 1,981 | 2,358 | ||||||
Accrued interest receivable and other assets | 12,841 | 12,155 | ||||||
Total assets | $ | 829,478 | $ | 785,049 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Demand deposits -- noninterest-bearing | $ | 98,926 | $ | 101,195 | ||||
Demand deposits -- interest-bearing | 94,505 | 103,365 | ||||||
Money market deposits | 72,085 | 52,574 | ||||||
Savings deposits | 63,553 | 64,198 | ||||||
Time deposits | 286,819 | 260,207 | ||||||
Total deposits | 615,888 | 581,539 | ||||||
Short-term borrowings: | ||||||||
Customer repurchase agreements | 60,768 | 58,179 | ||||||
Other short-term borrowings | 12,440 | 3,225 | ||||||
Long-term borrowings | 13,750 | 12,900 | ||||||
Trust preferred capital notes | 20,619 | 20,619 | ||||||
Accrued interest payable and other liabilities | 4,098 | 5,714 | ||||||
Total liabilities | 727,563 | 682,176 | ||||||
Shareholders' equity: | ||||||||
Common stock, $1 par, 10,000,000 shares authorized, | ||||||||
6,079,161 shares outstanding at March 31, 2009 and | ||||||||
6,100,185 shares outstanding at March 31, 2008 | 6,079 | 6,100 | ||||||
Capital in excess of par value | 26,488 | 26,472 | ||||||
Retained earnings | 70,379 | 69,866 | ||||||
Accumulated other comprehensive income (loss), net | (1,031 | ) | 435 | |||||
Total shareholders' equity | 101,915 | 102,873 | ||||||
Total liabilities and shareholders' equity | $ | 829,478 | $ | 785,049 |
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 | ||||||||
2009 | 2008 | |||||||
Interest and Dividend Income: | ||||||||
Interest and fees on loans | $ | 8,034 | $ | 9,444 | ||||
Interest and dividends on securities: | ||||||||
Taxable | 1,120 | 1,231 | ||||||
Tax-exempt | 386 | 432 | ||||||
Dividends | 22 | 77 | ||||||
Other interest income | 88 | 76 | ||||||
Total interest and dividend income | 9,650 | 11,260 | ||||||
Interest Expense: | ||||||||
Interest on deposits | 2,527 | 3,582 | ||||||
Interest on short-term borrowings | 236 | 484 | ||||||
Interest on long-term borrowings | 131 | 126 | ||||||
Interest on trust preferred capital notes | 343 | 343 | ||||||
Total interest expense | 3,237 | 4,535 | ||||||
Net Interest Income | 6,413 | 6,725 | ||||||
Provision for loan losses | 350 | 140 | ||||||
Net Interest Income After Provision | ||||||||
for Loan Losses | 6,063 | 6,585 | ||||||
Noninterest Income: | ||||||||
Trust fees | 758 | 880 | ||||||
Service charges on deposit accounts | 502 | 565 | ||||||
Other fees and commissions | 242 | 203 | ||||||
Mortgage banking income | 286 | 195 | ||||||
Brokerage fees | 57 | 143 | ||||||
Securities gains (losses), net | - | 30 | ||||||
Net loss on foreclosed real estate | (1,196 | ) | (7 | ) | ||||
Other | 85 | 126 | ||||||
Total noninterest income | 734 | 2,135 | ||||||
Noninterest Expense: | ||||||||
Salaries | 2,531 | 2,469 | ||||||
Employee benefits | 813 | 747 | ||||||
Occupancy and equipment | 971 | 966 | ||||||
FDIC assessment | 217 | 17 | ||||||
Bank franchise tax | 163 | 177 | ||||||
Core deposit intangible amortization | 94 | 94 | ||||||
Other | 1,086 | 979 | ||||||
Total noninterest expense | 5,875 | 5,449 | ||||||
Income Before Income Taxes | 922 | 3,271 | ||||||
Income Taxes | 154 | 966 | ||||||
Net Income | $ | 768 | $ | 2,305 | ||||
Net Income Per Common Share: | ||||||||
Basic | $ | 0.13 | $ | 0.38 | ||||
Diluted | $ | 0.13 | $ | 0.38 | ||||
Average Common Shares Outstanding: | ||||||||
Basic | 6,081,998 | 6,107,832 | ||||||
Diluted | 6,085,457 | 6,121,285 |
American National Bankshares Inc. and Subsidiaries | ||||||||||||
Financial Highlights | ||||||||||||
Dollars in thousands, except share, per share data, ratio and nonfinancial data | ||||||||||||
Unaudited | ||||||||||||
1st Qtr | 4th Qtr | 1st Qtr | ||||||||||
2009 | 2008 | 2008 | ||||||||||
EARNINGS | ||||||||||||
Interest income | $ | 9,650 | $ | 10,225 | $ | 11,260 | ||||||
Interest expense | 3,237 | 3,503 | 4,535 | |||||||||
Net interest income | 6,413 | 6,722 | 6,725 | |||||||||
Provision for loan losses | 350 | 600 | 140 | |||||||||
Noninterest income | 734 | 1,875 | 2,135 | |||||||||
Noninterest expense | 5,875 | 5,547 | 5,449 | |||||||||
Income taxes | 154 | 767 | 966 | |||||||||
Net income | 768 | 1,683 | 2,305 | |||||||||
PER COMMON SHARE | ||||||||||||
Earnings per share - basic | $ | 0.13 | $ | 0.28 | $ | 0.38 | ||||||
Earnings per share - diluted | 0.13 | 0.28 | 0.38 | |||||||||
Cash dividends declared | 0.23 | 0.23 | 0.23 | |||||||||
Book value per share | 16.76 | 16.81 | 16.86 | |||||||||
Book value per share - tangible (a) | 12.74 | 12.78 | 12.79 | |||||||||
Closing market price | 15.60 | 17.00 | 21.26 | |||||||||
FINANCIAL RATIOS | ||||||||||||
Return on average assets | 0.38 | % | 0.86 | % | 1.18 | % | ||||||
Return on average equity | 2.99 | 6.53 | 9.01 | |||||||||
Return on average tangible equity (b) | 4.32 | 8.90 | 12.24 | |||||||||
Average equity to average assets | 12.80 | 13.13 | 13.12 | |||||||||
Net interest margin, taxable equivalent | 3.61 | 3.85 | 3.88 | |||||||||
Efficiency ratio | 68.77 | 62.36 | 60.09 | |||||||||
Effective tax rate | 16.70 | 31.31 | 29.53 | |||||||||
PERIOD-END BALANCES | ||||||||||||
Securities | $ | 174,792 | $ | 140,816 | $ | 160,675 | ||||||
Loans held for sale | 2,782 | 1,764 | 1,681 | |||||||||
Loans, net of unearned income | 569,003 | 571,110 | 554,667 | |||||||||
Goodwill and other intangibles | 24,449 | 24,543 | 24,826 | |||||||||
Assets | 829,478 | 789,184 | 785,049 | |||||||||
Assets - tangible (a) | 805,029 | 764,641 | 760,223 | |||||||||
Deposits | 615,888 | 589,138 | 581,539 | |||||||||
Customer repurchase agreements | 60,678 | 51,741 | 58,179 | |||||||||
Other short-term borrowings | 12,440 | 7,850 | 3,225 | |||||||||
Long-term borrowings | 34,369 | 34,406 | 33,519 | |||||||||
Shareholders' equity | 101,915 | 102,300 | 102,873 | |||||||||
Shareholders' equity - tangible (a) | 77,466 | 77,757 | 78,047 | |||||||||
AVERAGE BALANCES | ||||||||||||
Securities | $ | 138,067 | $ | 137,947 | $ | 151,699 | ||||||
Loans held for sale | 2,996 | 1,669 | 1,614 | |||||||||
Loans, net of unearned income | 570,342 | 571,081 | 553,971 | |||||||||
Interest-earning assets | 734,980 | 720,197 | 717,508 | |||||||||
Goodwill and other intangibles | 24,507 | 24,600 | 24,864 | |||||||||
Assets | 803,206 | 785,182 | 780,204 | |||||||||
Assets - tangible (a) | 778,699 | 760,582 | 755,340 | |||||||||
Interest-bearing deposits | 510,821 | 491,701 | 486,198 | |||||||||
Deposits | 604,002 | 590,196 | 583,410 | |||||||||
Customer repurchase agreements | 56,051 | 49,868 | 54,624 | |||||||||
Other short-term borrowings | 2,071 | 6,788 | 3,091 | |||||||||
Long-term borrowings | 34,398 | 34,436 | 30,779 | |||||||||
Shareholders' equity | 102,845 | 103,126 | 102,342 | |||||||||
Shareholders' equity - tangible (a) | 78,338 | 78,526 | 77,478 | |||||||||
CAPITAL | ||||||||||||
Average shares outstanding - basic | 6,081,998 | 6,086,868 | 6,107,832 | |||||||||
Average shares outstanding - diluted | 6,085,457 | 6,090,844 | 6,121,285 | |||||||||
Shares repurchased | 7,600 | 7,100 | 28,800 | |||||||||
Average price of shares repurchased | $ | 15.92 | $ | 16.40 | $ | 20.80 | ||||||
| ||||||||||||
American National Bankshares Inc. and Subsidiaries | ||||||||||||
Financial Highlights | ||||||||||||
Dollars in thousands, except share, per share data, ratio and nonfinancial data | ||||||||||||
Unaudited | ||||||||||||
1st Qtr | 4th Qtr | 1st Qtr | ||||||||||
2009 | 2008 | 2008 | ||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||
Beginning balance | $ | 7,824 | $ | 8,083 | $ | 7,395 | ||||||
Provision for loan losses | 350 | 600 | 140 | |||||||||
Charge-offs | (376 | ) | (1,012 | ) | (170 | ) | ||||||
Recoveries | 38 | 153 | 60 | |||||||||
Ending balance | $ | 7,836 | $ | 7,824 | $ | 7,425 | ||||||
LOANS | ||||||||||||
Construction and land development | $ | 53,579 | $ | 63,361 | $ | 72,001 | ||||||
Commercial real estate | 213,508 | 207,160 | 198,698 | |||||||||
Residential real estate | 134,510 | 136,480 | 138,384 | |||||||||
Home equity | 61,459 | 57,170 | 48,958 | |||||||||
Commercial and industrial | 97,259 | 98,546 | 87,199 | |||||||||
Consumer | 8,688 | 8,393 | 9,427 | |||||||||
Total | $ | 569,003 | $ | 571,110 | $ | 554,667 | ||||||
NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||
Nonperforming loans: | ||||||||||||
90 days past due | $ | - | $ | - | $ | - | ||||||
Nonaccrual | 2,821 | 2,845 | 2,772 | |||||||||
Foreclosed real estate | 3,345 | 4,311 | 550 | |||||||||
Nonperforming assets | $ | 6,166 | $ | 7,156 | $ | 3,322 | ||||||
ASSET QUALITY RATIOS | ||||||||||||
Annualized net chargeoffs to average loans | 0.24 | % | 0.60 | % | 0.08 | % | ||||||
Nonperforming assets to total assets | 0.74 | 0.91 | 0.42 | |||||||||
Nonperforming loans to total loans | 0.50 | 0.50 | 0.50 | |||||||||
Allowance for loan losses to total loans | 1.38 | 1.37 | 1.34 | |||||||||
Allowance for loan losses to | ||||||||||||
nonperforming loans | 277.77 | 275.01 | 267.86 | |||||||||
OTHER DATA | ||||||||||||
Fiduciary assets at period-end (c) | $ | 305,129 | $ | 326,614 | $ | 386,375 | ||||||
Retail brokerage assets at period-end (c) | $ | 82,554 | $ | 84,348 | $ | 89,927 | ||||||
Number full time-time equivalent employees | 258 | 258 | 258 | |||||||||
Number of full service offices | 20 | 20 | 19 | |||||||||
Number of loan production offices | 2 | 1 | 1 | |||||||||
Number of ATM's | 23 | 24 | 23 | |||||||||
Notes: | ||||||||||||
(a) - Excludes goodwill and other intangible assets | ||||||||||||
(b) - Excludes amortization expense, net of tax, of intangible assets | ||||||||||||
(c) - Market value | ||||||||||||
Net Interest Income Analysis | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2009 and 2008 | ||||||||||||||||||||||||
Dollars in thousands, except rates | ||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial | $ | 96,097 | $ | 85,632 | $ | 1,100 | $ | 1,454 | 4.58 | % | 6.79 | % | ||||||||||||
Real estate | 469,346 | 460,429 | 6,779 | 7,789 | 5.78 | 6.77 | ||||||||||||||||||
Consumer | 7,895 | 9,524 | 178 | 217 | 9.02 | 9.11 | ||||||||||||||||||
Total loans | 573,338 | 555,585 | 8,057 | 9,460 | 5.62 | 6.81 | ||||||||||||||||||
Securities: | ||||||||||||||||||||||||
Federal agencies | 45,767 | 50,064 | 521 | 597 | 4.55 | 4.77 | ||||||||||||||||||
Mortgage-backed | 44,560 | 47,405 | 562 | 603 | 5.04 | 5.09 | ||||||||||||||||||
State and municipal | 42,726 | 47,847 | 604 | 656 | 5.65 | 5.48 | ||||||||||||||||||
Other | 5,014 | 6,383 | 33 | 99 | 2.63 | 6.20 | ||||||||||||||||||
Total securities | 138,067 | 151,699 | 1,720 | 1,955 | 4.98 | 5.15 | ||||||||||||||||||
Deposits in other banks | 23,575 | 10,224 | 88 | 76 | 1.49 | 2.97 | ||||||||||||||||||
Total interest earning assets | 734,980 | 717,508 | 9,865 | 11,491 | 5.37 | 6.41 | ||||||||||||||||||
Nonearning assets | 68,226 | 62,696 | ||||||||||||||||||||||
Total assets | $ | 803,206 | $ | 780,204 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 112,459 | $ | 107,994 | 190 | 225 | 0.68 | 0.83 | ||||||||||||||||
Money market | 64,648 | 51,320 | 198 | 294 | 1.23 | 2.29 | ||||||||||||||||||
Savings | 61,289 | 63,184 | 40 | 116 | 0.26 | 0.73 | ||||||||||||||||||
Time | 272,425 | 263,700 | 2,099 | 2,947 | 3.08 | 4.47 | ||||||||||||||||||
Total deposits | 510,821 | 486,198 | 2,527 | 3,582 | 1.98 | 2.95 | ||||||||||||||||||
Customer repurchase agreements | 56,051 | 54,624 | 233 | 451 | 1.66 | 3.30 | ||||||||||||||||||
Other short-term borrowings | 2,071 | 3,091 | 3 | 33 | 0.58 | 4.27 | ||||||||||||||||||
Long-term borrowings | 34,398 | 30,779 | 474 | 469 | 5.51 | 6.10 | ||||||||||||||||||
Total interest bearing liabilities | 603,341 | 574,692 | 3,237 | 4,535 | 2.15 | 3.16 | ||||||||||||||||||
Noninterest bearing | ||||||||||||||||||||||||
demand deposits | 93,181 | 97,212 | ||||||||||||||||||||||
Other liabilities | 3,839 | 5,958 | ||||||||||||||||||||||
Shareholders' equity | 102,845 | 102,342 | ||||||||||||||||||||||
Total liabilities and | ||||||||||||||||||||||||
shareholders' equity | $ | 803,206 | $ | 780,204 | ||||||||||||||||||||
Interest rate spread | 3.22 | % | 3.25 | % | ||||||||||||||||||||
Net interest margin | 3.61 | % | 3.88 | % | ||||||||||||||||||||
Net interest income (taxable equivalent basis) | 6,628 | 6,956 | ||||||||||||||||||||||
Less: Taxable equivalent adjustment | 215 | 231 | ||||||||||||||||||||||
Net interest income | $ | 6,413 | $ | 6,725 | ||||||||||||||||||||