American National Bankshares Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
(Dollars in thousands, except share and per share data) | ||||||||
Unaudited | ||||||||
March 31 | ||||||||
ASSETS | 2010 | 2009 | ||||||
Cash and due from banks | $ | 11,059 | $ | 13,632 | ||||
Interest-bearing deposits in other banks | 25,531 | 18,188 | ||||||
Securities available for sale, at fair value | 190,949 | 163,846 | ||||||
Securities held to maturity | 5,802 | 6,811 | ||||||
Total securities | 196,751 | 170,657 | ||||||
Restricted stock, at cost | 4,362 | 4,135 | ||||||
Loans held for sale | 2,208 | 2,782 | ||||||
Loans | 515,366 | 569,003 | ||||||
Less allowance for loan losses | (8,112 | ) | (7,836 | ) | ||||
Net Loans | 507,254 | 561,167 | ||||||
Premises and equipment, net | 19,145 | 18,018 | ||||||
Other real estate owned, net | 3,815 | 3,345 | ||||||
Goodwill | 22,468 | 22,468 | ||||||
Core deposit intangibles, net | 1,603 | 1,981 | ||||||
Accrued interest receivable and other assets | 16,458 | 13,105 | ||||||
Total assets | $ | 810,654 | $ | 829,478 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Demand deposits -- noninterest-bearing | $ | 101,190 | $ | 98,926 | ||||
Demand deposits -- interest-bearing | 98,968 | 94,505 | ||||||
Money market deposits | 79,225 | 72,085 | ||||||
Savings deposits | 64,721 | 63,553 | ||||||
Time deposits | 265,517 | 286,819 | ||||||
Total deposits | 609,621 | 615,888 | ||||||
Short-term borrowings: | ||||||||
Customer repurchase agreements | 60,372 | 60,768 | ||||||
Other short-term borrowings | - | 12,440 | ||||||
Long-term borrowings | 8,600 | 13,750 | ||||||
Trust preferred capital notes | 20,619 | 20,619 | ||||||
Accrued interest payable and other liabilities | 4,260 | 4,098 | ||||||
Total liabilities | 703,472 | 727,563 | ||||||
Shareholders' equity: | ||||||||
Common stock, $1 par, 10,000,000 shares authorized, | ||||||||
6,123,275 shares outstanding at March 31, 2010 and | ||||||||
6,079,161 shares outstanding at March 31, 2009 | 6,123 | 6,079 | ||||||
Capital in excess of par value | 27,063 | 26,488 | ||||||
Retained earnings | 72,985 | 70,379 | ||||||
Accumulated other comprehensive income (loss), net | 1,011 | (1,031 | ) | |||||
Total shareholders' equity | 107,182 | 101,915 | ||||||
Total liabilities and shareholders' equity | $ | 810,654 | $ | 829,478 |
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 | ||||||||
2010 | 2009 | |||||||
Interest and Dividend Income: | ||||||||
Interest and fees on loans | $ | 7,155 | $ | 8,034 | ||||
Interest and dividends on securities: | ||||||||
Taxable | 1,316 | 1,120 | ||||||
Tax-exempt | 466 | 386 | ||||||
Dividends | 23 | 22 | ||||||
Other interest income | 91 | 88 | ||||||
Total interest and dividend income | 9,051 | 9,650 | ||||||
�� | ||||||||
Interest Expense: | ||||||||
Interest on deposits | 1,635 | 2,527 | ||||||
Interest on short-term borrowings | 105 | 236 | ||||||
Interest on long-term borrowings | 64 | 131 | ||||||
Interest on customer repurchase agreements | ||||||||
Interest on trust preferred capital notes | 343 | 343 | ||||||
Total interest expense | 2,147 | 3,237 | ||||||
Net Interest Income | 6,904 | 6,413 | ||||||
Provision for loan losses | 285 | 350 | ||||||
Net Interest Income After Provision | ||||||||
for Loan Losses | 6,619 | 6,063 | ||||||
Noninterest Income: | ||||||||
Trust fees | 812 | 758 | ||||||
Service charges on deposit accounts | 479 | 502 | ||||||
Other fees and commissions | 278 | 242 | ||||||
Mortgage banking income | 246 | 286 | ||||||
Brokerage fees | 21 | 57 | ||||||
Securities gains (losses), net | (29 | ) | - | |||||
Impairment of securities | - | - | ||||||
Net loss on foreclosed real estate | (3 | ) | (1,179 | ) | ||||
Other | 117 | 68 | ||||||
Total noninterest income | 1,921 | 734 | ||||||
Noninterest Expense: | ||||||||
Salaries | 2,398 | 2,531 | ||||||
Employee benefits | 640 | 813 | ||||||
Occupancy and equipment | 779 | 740 | ||||||
FDIC assessment | 195 | 217 | ||||||
Bank franchise tax | 167 | 163 | ||||||
Core deposit intangible amortization | 94 | 94 | ||||||
Other | 1,224 | 1,317 | ||||||
Total noninterest expense | 5,497 | 5,875 | ||||||
Income Before Income Taxes | 3,043 | 922 | ||||||
Income Taxes | 858 | 154 | ||||||
Net Income | $ | 2,185 | $ | 768 | ||||
Net Income Per Common Share: | ||||||||
Basic | $ | 0.36 | $ | 0.13 | ||||
Diluted | $ | 0.36 | $ | 0.13 | ||||
Average Common Shares Outstanding: | ||||||||
Basic | 6,119,415 | 6,081,998 | ||||||
Diluted | 6,124,306 | 6,085,457 |
American National Bankshares Inc. and Subsidiaries | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
(In thousands, except share, ratio and | ||||||||||||||||||||
nonfinancial data, unaudited) | 1st Qtr | 4th Qtr | 1st Qtr | YTD | YTD | |||||||||||||||
2010 | 2009 | 2009 | 2010 | 2009 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||
Interest income | $ | 9,051 | $ | 9,257 | $ | 9,650 | $ | 9,051 | $ | 9,650 | ||||||||||
Interest expense | 2,147 | 2,307 | 3,237 | 2,147 | 3,237 | |||||||||||||||
Net interest income | 6,904 | 6,950 | 6,413 | 6,904 | 6,413 | |||||||||||||||
Provision for loan losses | 285 | 328 | 350 | 285 | 350 | |||||||||||||||
Noninterest income | 1,921 | 1,937 | 734 | 1,921 | 734 | |||||||||||||||
Noninterest expense | 5,497 | 5,524 | 5,875 | 5,497 | 5,875 | |||||||||||||||
Income taxes | 858 | 866 | 154 | 858 | 154 | |||||||||||||||
Net income | 2,185 | 2,169 | 768 | 2,185 | 768 | |||||||||||||||
PER COMMON SHARE | ||||||||||||||||||||
Earnings per share - basic | $ | 0.36 | $ | 0.36 | $ | 0.13 | $ | 0.36 | $ | 0.13 | ||||||||||
Earnings per share - diluted | 0.36 | 0.35 | 0.13 | 0.36 | 0.13 | |||||||||||||||
Cash dividends declared | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | |||||||||||||||
Book value per share | 17.50 | 17.41 | 16.76 | 17.50 | 16.76 | |||||||||||||||
Book value per share - tangible (a) | 13.57 | 13.46 | 12.74 | 13.57 | 12.74 | |||||||||||||||
Closing market price | 20.15 | 21.90 | 15.60 | 20.15 | 15.60 | |||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||
Return on average assets | 1.08 | % | 1.07 | % | 0.38 | % | 1.08 | % | 0.38 | % | ||||||||||
Return on average equity | 8.14 | 8.24 | 2.99 | 8.14 | 2.99 | |||||||||||||||
Return on average tangible equity (b) | 10.83 | 11.03 | 4.32 | 10.83 | 4.32 | |||||||||||||||
Average equity to average assets | 13.24 | 12.93 | 12.80 | 13.24 | 12.80 | |||||||||||||||
Net interest margin, taxable equivalent | 3.90 | 3.88 | 3.61 | 3.90 | 3.61 | |||||||||||||||
Efficiency ratio | 60.22 | 58.79 | 68.77 | 60.22 | 68.77 | |||||||||||||||
Effective tax rate | 28.20 | 28.53 | 16.70 | 28.20 | 16.70 | |||||||||||||||
PERIOD-END BALANCES | ||||||||||||||||||||
Securities | $ | 201,113 | $ | 199,686 | $ | 174,792 | $ | 201,113 | $ | 174,792 | ||||||||||
Loans held for sale | 2,208 | 2,490 | 2,782 | 2,208 | 2,782 | |||||||||||||||
Loans, net of unearned income | 515,366 | 527,991 | 569,003 | 515,366 | 569,003 | |||||||||||||||
Goodwill and other intangibles | 24,071 | 24,166 | 24,449 | 24,071 | 24,449 | |||||||||||||||
Assets | 810,654 | 808,973 | 829,478 | 810,654 | 829,478 | |||||||||||||||
Assets - tangible (a) | 786,583 | 784,807 | 805,029 | 786,583 | 805,029 | |||||||||||||||
Deposits | 609,621 | 604,273 | 615,888 | 609,621 | 615,888 | |||||||||||||||
Customer repurchase agreements | 60,372 | 65,929 | 60,678 | 60,372 | 60,678 | |||||||||||||||
Other short-term borrowings | - | - | 12,440 | - | 12,440 | |||||||||||||||
Long-term borrowings | 29,219 | 29,257 | 34,369 | 29,219 | 34,369 | |||||||||||||||
Shareholders' equity | 107,182 | 106,389 | 101,915 | 107,182 | 101,915 | |||||||||||||||
Shareholders' equity - tangible (a) | 83,111 | 82,223 | 77,466 | 83,111 | 77,466 | |||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||
Securities | $ | 184,696 | $ | 167,546 | $ | 138,067 | $ | 184,696 | $ | 138,067 | ||||||||||
Loans held for sale | 2,444 | 4,394 | 2,996 | 2,444 | 2,996 | |||||||||||||||
Loans, net of unearned income | 518,403 | 540,103 | 570,342 | 520,847 | 570,342 | |||||||||||||||
Interest-earning assets | 736,183 | 744,007 | 734,980 | 736,183 | 734,980 | |||||||||||||||
Goodwill and other intangibles | 24,125 | 24,217 | 24,507 | 24,125 | 24,507 | |||||||||||||||
Assets | 810,620 | 814,232 | 803,206 | 810,620 | 803,206 | |||||||||||||||
Assets - tangible (a) | 786,495 | 790,015 | 778,699 | 786,495 | 778,699 | |||||||||||||||
Interest-bearing deposits | 507,209 | 499,725 | 510,821 | 507,209 | 510,821 | |||||||||||||||
Deposits | 606,085 | 604,506 | 604,002 | 606,085 | 604,002 | |||||||||||||||
Customer repurchase agreements | 63,947 | 70,014 | 56,051 | 63,947 | 56,051 | |||||||||||||||
Other short-term borrowings | - | 91 | 2,071 | - | 2,071 | |||||||||||||||
Long-term borrowings | 29,248 | 29,287 | 34,398 | 29,248 | 34,398 | |||||||||||||||
Shareholders' equity | 107,336 | 105,302 | 102,845 | 107,336 | 102,845 | |||||||||||||||
Shareholders' equity - tangible (a) | 83,211 | 81,085 | 78,338 | 83,211 | 78,338 | |||||||||||||||
CAPITAL | ||||||||||||||||||||
Average shares outstanding - basic | 6,119,415 | 6,108,340 | 6,081,998 | 6,119,415 | 6,081,998 | |||||||||||||||
Average shares outstanding - diluted | 6,124,306 | 6,116,800 | 6,085,457 | 6,124,306 | 6,085,457 | |||||||||||||||
Shares repurchased | - | - | 7,600 | - | 7,600 | |||||||||||||||
Average price of shares repurchased | $ | - | $ | - | $ | 15.92 | $ | - | $ | 15.92 | ||||||||||
American National Bankshares Inc. and Subsidiaries | ||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||
(In thousands, except share, ratio and | ||||||||||||||||||||
nonfinancial data, unaudited) | 1st Qtr | 4th Qtr | 1st Qtr | YTD | YTD | |||||||||||||||
2010 | 2009 | 2009 | 2010 | 2009 | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Beginning balance | $ | 8,166 | $ | 8,260 | $ | 7,824 | $ | 8,166 | $ | 7,824 | ||||||||||
Provision for loan losses | 285 | 328 | 350 | 285 | 350 | |||||||||||||||
Charge-offs | (427 | ) | (485 | ) | (376 | ) | (427 | ) | (376 | ) | ||||||||||
Recoveries | 88 | 63 | 38 | 88 | 38 | |||||||||||||||
Ending balance | $ | 8,112 | $ | 8,166 | $ | 7,836 | $ | 8,112 | $ | 7,836 | ||||||||||
LOANS | ||||||||||||||||||||
Construction and land development | $ | 39,421 | $ | 40,371 | $ | 53,579 | $ | 39,421 | $ | 53,579 | ||||||||||
Commercial real estate | 205,642 | 208,066 | 213,508 | 205,642 | 213,508 | |||||||||||||||
Residential real estate | 119,776 | 121,639 | 134,510 | 119,776 | 134,510 | |||||||||||||||
Home equity | 63,302 | 64,678 | 61,459 | 63,302 | 61,459 | |||||||||||||||
Commercial and industrial | 80,331 | 86,312 | 97,259 | 80,331 | 97,259 | |||||||||||||||
Consumer | 6,894 | 6,925 | 8,688 | 6,894 | 8,688 | |||||||||||||||
Total | $ | 515,366 | $ | 527,991 | $ | 569,003 | $ | 515,366 | $ | 569,003 | ||||||||||
NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
90 days past due | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Nonaccrual | 3,436 | 3,642 | 2,821 | 3,436 | 2,821 | |||||||||||||||
Foreclosed real estate | 3,815 | 3,414 | 3,345 | 3,815 | 3,345 | |||||||||||||||
Nonperforming assets | $ | 7,251 | $ | 7,056 | $ | 6,166 | $ | 7,251 | $ | 6,166 | ||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
Annualized net chargeoffs to average loans | 0.26 | % | 0.31 | % | 0.24 | % | 0.26 | % | 0.24 | % | ||||||||||
Nonperforming assets to total assets | 0.89 | 0.87 | 0.74 | 0.89 | 0.74 | |||||||||||||||
Nonperforming loans to total loans | 0.67 | 0.69 | 0.50 | 0.67 | 0.50 | |||||||||||||||
Allowance for loan losses to total loans | 1.57 | 1.55 | 1.38 | 1.57 | 1.38 | |||||||||||||||
Allowance for loan losses to | ||||||||||||||||||||
nonperforming loans | 236.09 | 224.22 | 277.77 | 236.09 | 277.77 | |||||||||||||||
OTHER DATA | ||||||||||||||||||||
Fiduciary assets at period-end (c) | $ | 363,205 | $ | 358,124 | $ | 305,129 | $ | 363,205 | $ | 305,129 | ||||||||||
Retail brokerage assets at period-end (c) | $ | 51,848 | $ | 54,696 | $ | 82,554 | $ | 51,848 | $ | 82,554 | ||||||||||
Number full-time equivalent employees (d) | 235 | 238 | 258 | 235 | 258 | |||||||||||||||
Number of full service offices | 18 | 18 | 20 | 18 | 20 | |||||||||||||||
Number of loan production offices | 1 | 2 | 2 | 1 | 2 | |||||||||||||||
Number of ATM's | 26 | 24 | 23 | 26 | 23 | |||||||||||||||
Notes: | ||||||||||||||||||||
(a) - Excludes goodwill and other intangible assets | ||||||||||||||||||||
(b) - Excludes amortization expense, net of tax, of intangible assets | ||||||||||||||||||||
(c) - Market value | ||||||||||||||||||||
(d) - Average for quarter | ||||||||||||||||||||
N/A - Percentage change is not applicable or not meaningful |
American National Bankshares Inc. and Subsidiaries | ||||||||||||||||||||||||
Net Interest Income Analysis | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2010 and 2009 | ||||||||||||||||||||||||
(in thousands, except rates) | ||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial | $ | 79,279 | $ | 96,097 | $ | 953 | $ | 1,100 | 4.81 | % | 4.58 | % | ||||||||||||
Real estate | 434,795 | 469,346 | 6,095 | 6,779 | 5.61 | 5.78 | ||||||||||||||||||
Consumer | 6,773 | 7,895 | 134 | 178 | 7.91 | 9.02 | ||||||||||||||||||
Total loans | 520,847 | 573,338 | 7,182 | 8,057 | 5.52 | 5.62 | ||||||||||||||||||
Securities: | ||||||||||||||||||||||||
Federal agencies | 65,751 | 45,767 | 551 | 521 | 3.35 | 4.55 | ||||||||||||||||||
Mortgage-backed | 43,783 | 44,560 | 501 | 562 | 4.58 | 5.04 | ||||||||||||||||||
State and municipal | 67,538 | 42,726 | 927 | 604 | 5.49 | 5.65 | ||||||||||||||||||
Other | 7,624 | 5,014 | 69 | 33 | 3.62 | 2.63 | ||||||||||||||||||
Total securities | 184,696 | 138,067 | 2,048 | 1,720 | 4.44 | 4.98 | ||||||||||||||||||
Deposits in other banks | 30,640 | 23,575 | 91 | 88 | 1.19 | 1.49 | ||||||||||||||||||
Total interest earning assets | 736,183 | 734,980 | 9,321 | 9,865 | 5.06 | 5.37 | ||||||||||||||||||
Nonearning assets | 74,437 | 68,226 | ||||||||||||||||||||||
Total assets | $ | 810,620 | $ | 803,206 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 97,062 | $ | 112,459 | 21 | 190 | 0.09 | 0.68 | ||||||||||||||||
Money market | 80,809 | 64,648 | 90 | 198 | 0.45 | 1.23 | ||||||||||||||||||
Savings | 62,801 | 61,289 | 22 | 40 | 0.14 | 0.26 | ||||||||||||||||||
Time | 266,537 | 272,425 | 1,502 | 2,099 | 2.25 | 3.08 | ||||||||||||||||||
Total deposits | 507,209 | 510,821 | 1,635 | 2,527 | 1.29 | 1.98 | ||||||||||||||||||
Customer repurchase agreements | 63,947 | 56,051 | 105 | 233 | 0.66 | 1.66 | ||||||||||||||||||
Other short-term borrowings | - | 2,071 | - | 3 | - | 0.58 | ||||||||||||||||||
Long-term borrowings | 29,248 | 34,398 | 407 | 474 | 5.57 | 5.51 | ||||||||||||||||||
Total interest bearing liabilities | 600,404 | 603,341 | 2,147 | 3,237 | 1.43 | 2.15 | ||||||||||||||||||
Noninterest bearing | ||||||||||||||||||||||||
demand deposits | 98,876 | 93,181 | ||||||||||||||||||||||
Other liabilities | 4,004 | 3,839 | ||||||||||||||||||||||
Shareholders' equity | 107,336 | 102,845 | ||||||||||||||||||||||
Total liabilities and | ||||||||||||||||||||||||
shareholders' equity | $ | 810,620 | $ | 803,206 | ||||||||||||||||||||
Interest rate spread | 3.63 | % | 3.22 | % | ||||||||||||||||||||
Net interest margin | 3.90 | % | 3.61 | % | ||||||||||||||||||||
Net interest income (taxable equivalent basis) | 7,174 | 6,628 | ||||||||||||||||||||||
Less: Taxable equivalent adjustment | 270 | 215 | ||||||||||||||||||||||
Net interest income | $ | 6,904 | $ | 6,413 | ||||||||||||||||||||