American National Bankshares Inc. and Subsidiaries | ||||||||
Consolidated Balance Sheets | ||||||||
(Dollars in thousands, except share and per share data) | ||||||||
Unaudited | ||||||||
March 31 | ||||||||
ASSETS | 2011 | 2010 | ||||||
Cash and due from banks | $ | 10,248 | $ | 11,059 | ||||
Interest-bearing deposits in other banks | 25,397 | 25,531 | ||||||
Securities available for sale, at fair value | 226,171 | 190,949 | ||||||
Securities held to maturity | 3,146 | 5,802 | ||||||
Total securities | 229,317 | 196,751 | ||||||
Restricted stock, at cost | 4,062 | 4,362 | ||||||
Loans held for sale | 1,309 | 2,208 | ||||||
Loans | 516,629 | 515,366 | ||||||
Less allowance for loan losses | (8,257 | ) | (8,112 | ) | ||||
Net Loans | 508,372 | 507,254 | ||||||
Premises and equipment, net | 19,308 | 19,145 | ||||||
Other real estate owned, net | 3,532 | 3,815 | ||||||
Goodwill | 22,468 | 22,468 | ||||||
Core deposit intangibles, net | 1,226 | 1,603 | ||||||
Accrued interest receivable and other assets | 15,999 | 16,458 | ||||||
Total assets | $ | 841,238 | $ | 810,654 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Liabilities: | ||||||||
Demand deposits -- noninterest-bearing | $ | 113,260 | $ | 101,190 | ||||
Demand deposits -- interest-bearing | 96,686 | 98,968 | ||||||
Money market deposits | 57,530 | 79,225 | ||||||
Savings deposits | 63,236 | 64,721 | ||||||
Time deposits | 328,771 | 265,517 | ||||||
Total deposits | 659,483 | 609,621 | ||||||
Short-term borrowings: | ||||||||
Customer repurchase agreements | 43,871 | 60,372 | ||||||
Other short-term borrowings | - | - | ||||||
Long-term borrowings | 4,450 | 8,600 | ||||||
Trust preferred capital notes | 20,619 | 20,619 | ||||||
Accrued interest payable and other liabilities | 3,443 | 4,260 | ||||||
Total liabilities | 731,866 | 703,472 | ||||||
Shareholders' equity: | ||||||||
Common stock, $1 par, 10,000,000 shares authorized, | ||||||||
6,153,433 shares outstanding at March 31, 2011 and | ||||||||
6,123,275 shares outstanding at March 31, 2010 | 6,153 | 6,123 | ||||||
Capital in excess of par value | 27,541 | 27,063 | ||||||
Retained earnings | 75,214 | 72,985 | ||||||
Accumulated other comprehensive income (loss), net | 464 | 1,011 | ||||||
Total shareholders' equity | 109,372 | 107,182 | ||||||
Total liabilities and shareholders' equity | $ | 841,238 | $ | 810,654 | ||||
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 | ||||||||
2011 | 2010 | |||||||
Interest and Dividend Income: | ||||||||
Interest and fees on loans | $ | 6,679 | $ | 7,155 | ||||
Interest and dividends on securities: | ||||||||
Taxable | 1,169 | 1,316 | ||||||
Tax-exempt | 716 | 466 | ||||||
Dividends | 27 | 23 | ||||||
Other interest income | 70 | 91 | ||||||
Total interest and dividend income | 8,661 | 9,051 | ||||||
Interest Expense: | ||||||||
Interest on deposits | 1,580 | 1,635 | ||||||
Interest on short-term borrowings | 80 | 105 | ||||||
Interest on long-term borrowings | 53 | 64 | ||||||
Interest on customer repurchase agreements | ||||||||
Interest on trust preferred capital notes | 343 | 343 | ||||||
Total interest expense | 2,056 | 2,147 | ||||||
Net Interest Income | 6,605 | 6,904 | ||||||
Provision for loan losses | 337 | 285 | ||||||
Net Interest Income After Provision | ||||||||
for Loan Losses | 6,268 | 6,619 | ||||||
Noninterest Income: | ||||||||
Trust fees | 928 | 812 | ||||||
Service charges on deposit accounts | 421 | 479 | ||||||
Other fees and commissions | 316 | 278 | ||||||
Mortgage banking income | 147 | 246 | ||||||
Securities gains (losses), net | 1 | (29 | ) | |||||
Foreclosed real estate (losses), net | (22 | ) | (3 | ) | ||||
Other | 158 | 138 | ||||||
Total noninterest income | 1,949 | 1,921 | ||||||
Noninterest Expense: | ||||||||
Salaries | 2,485 | 2,398 | ||||||
Employee benefits | 541 | 640 | ||||||
Occupancy and equipment | 699 | 779 | ||||||
FDIC assessment | 205 | 195 | ||||||
Bank franchise tax | 175 | 167 | ||||||
Core deposit intangible amortization | 94 | 94 | ||||||
Other | 1,558 | 1,224 | ||||||
Total noninterest expense | 5,757 | 5,497 | ||||||
Income Before Income Taxes | 2,460 | 3,043 | ||||||
Income Taxes | 682 | 858 | ||||||
Net Income | $ | 1,778 | $ | 2,185 | ||||
Net Income Per Common Share: | ||||||||
Basic | $ | 0.29 | $ | 0.36 | ||||
Diluted | $ | 0.29 | $ | 0.36 | ||||
Average Common Shares Outstanding: | ||||||||
Basic | 6,143,602 | 6,119,415 | ||||||
Diluted | 6,152,738 | 6,124,306 | ||||||
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 | |||||||||||||||
2011 | 2010 | 2010 | 2011 | 2010 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||
Interest income | $ | 8,661 | $ | 8,889 | $ | 9,051 | $ | 8,661 | $ | 9,051 | ||||||||||
Interest expense | 2,056 | 2,196 | 2,147 | 2,056 | 2,147 | |||||||||||||||
Net interest income | 6,605 | 6,693 | 6,904 | 6,605 | 6,904 | |||||||||||||||
Provision for loan losses | 337 | 485 | 285 | 337 | 285 | |||||||||||||||
Noninterest income | 1,949 | 2,602 | 1,921 | 1,949 | 1,921 | |||||||||||||||
Noninterest expense | 5,757 | 6,170 | 5,497 | 5,757 | 5,497 | |||||||||||||||
Income taxes | 682 | 789 | 858 | 682 | 858 | |||||||||||||||
Net income | 1,778 | 1,851 | 2,185 | 1,778 | 2,185 | |||||||||||||||
PER COMMON SHARE | ||||||||||||||||||||
Earnings per share - basic | $ | 0.29 | $ | 0.30 | $ | 0.36 | $ | 0.29 | $ | 0.36 | ||||||||||
Earnings per share - diluted | 0.29 | 0.30 | 0.36 | 0.29 | 0.36 | |||||||||||||||
Cash dividends declared | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | |||||||||||||||
Book value per share | 17.77 | 17.64 | 17.50 | 17.77 | 17.50 | |||||||||||||||
Book value per share - tangible (a) | 13.92 | 13.76 | 13.57 | 13.92 | 13.57 | |||||||||||||||
Closing market price | 22.51 | 23.55 | 20.15 | 22.51 | 20.15 | |||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||
Return on average assets | 0.85 | % | 0.88 | % | 1.08 | % | 0.85 | % | 1.08 | % | ||||||||||
Return on average equity | 6.51 | 6.69 | 8.14 | 6.51 | 8.14 | |||||||||||||||
Return on average tangible equity (b) | 8.64 | 8.83 | 10.83 | 8.64 | 10.83 | |||||||||||||||
Average equity to average assets | 13.03 | 13.12 | 13.24 | 13.03 | 13.24 | |||||||||||||||
Net interest margin, taxable equivalent | 3.66 | 3.67 | 3.90 | 3.66 | 3.90 | |||||||||||||||
Efficiency ratio | 64.16 | 65.70 | 60.22 | 64.16 | 60.22 | |||||||||||||||
Effective tax rate | 27.72 | 29.89 | 28.20 | 27.72 | 28.20 | |||||||||||||||
PERIOD-END BALANCES | ||||||||||||||||||||
Securities | $ | 233,379 | $ | 235,691 | $ | 201,113 | $ | 233,379 | $ | 201,113 | ||||||||||
Loans held for sale | 1,309 | 3,135 | 2,208 | 1,309 | 2,208 | |||||||||||||||
Loans, net of unearned income | 516,629 | 520,781 | 515,366 | 516,629 | 515,366 | |||||||||||||||
Goodwill and other intangibles | 23,694 | 23,788 | 24,071 | 23,694 | 24,071 | |||||||||||||||
Assets | 841,238 | 833,664 | 810,654 | 841,238 | 810,654 | |||||||||||||||
Assets - tangible (a) | 817,544 | 809,876 | 786,583 | 817,544 | 786,583 | |||||||||||||||
Deposits | 659,483 | 640,098 | 609,621 | 659,483 | 609,621 | |||||||||||||||
Customer repurchase agreements | 43,871 | 47,084 | 60,372 | 43,871 | 60,372 | |||||||||||||||
Other short-term borrowings | - | 6,110 | - | - | - | |||||||||||||||
Long-term borrowings | 25,069 | 29,107 | 29,219 | 25,069 | 29,219 | |||||||||||||||
Shareholders' equity | 109,372 | 108,087 | 107,182 | 109,372 | 107,182 | |||||||||||||||
Shareholders' equity - tangible (a) | 85,678 | 84,299 | 83,111 | 85,678 | 83,111 | |||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||
Securities | $ | 226,595 | $ | 215,208 | $ | 184,696 | $ | 226,595 | $ | 184,696 | ||||||||||
Loans held for sale | 1,508 | 5,629 | 2,444 | 1,508 | 2,444 | |||||||||||||||
Loans, net of unearned income | 516,610 | 521,832 | 518,403 | 516,610 | 520,847 | |||||||||||||||
Interest-earning assets | 765,291 | 770,649 | 736,183 | 765,291 | 736,183 | |||||||||||||||
Goodwill and other intangibles | 23,750 | 23,844 | 24,125 | 23,750 | 24,125 | |||||||||||||||
Assets | 838,151 | 843,922 | 810,620 | 838,151 | 810,620 | |||||||||||||||
Assets - tangible (a) | 814,401 | 820,078 | 786,495 | 814,401 | 786,495 | |||||||||||||||
Interest-bearing deposits | 542,104 | 537,662 | 507,209 | 542,104 | 507,209 | |||||||||||||||
Deposits | 652,922 | 647,526 | 606,085 | 652,922 | 606,085 | |||||||||||||||
Customer repurchase agreements | 43,762 | 52,068 | 63,947 | 43,762 | 63,947 | |||||||||||||||
Other short-term borrowings | 136 | 251 | - | 136 | - | |||||||||||||||
Long-term borrowings | 27,855 | 29,136 | 29,248 | 27,855 | 29,248 | |||||||||||||||
Shareholders' equity | 109,224 | 110,688 | 107,336 | 109,224 | 107,336 | |||||||||||||||
Shareholders' equity - tangible (a) | 85,474 | 86,844 | 83,211 | 85,474 | 83,211 | |||||||||||||||
CAPITAL | ||||||||||||||||||||
Average shares outstanding - basic | 6,143,602 | 6,126,817 | 6,119,415 | 6,143,602 | 6,119,415 | |||||||||||||||
Average shares outstanding - diluted | 6,152,738 | 6,141,123 | 6,124,306 | 6,152,738 | 6,124,306 | |||||||||||||||
Shares repurchased | - | - | - | - | - | |||||||||||||||
Average price of shares repurchased | $ | - | $ | - | $ | - | $ | - | $ | - |
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 | |||||||||||||||
2011 | 2010 | 2010 | 2011 | 2010 | ||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||
Beginning balance | $ | 8,420 | $ | 8,542 | $ | 8,166 | $ | 8,420 | $ | 8,166 | ||||||||||
Provision for loan losses | 337 | 485 | 285 | 337 | 285 | |||||||||||||||
Charge-offs | (571 | ) | (662 | ) | (427 | ) | (571 | ) | (427 | ) | ||||||||||
Recoveries | 71 | 55 | 88 | 71 | 88 | |||||||||||||||
Ending balance | $ | 8,257 | $ | 8,420 | $ | 8,112 | $ | 8,257 | $ | 8,112 | ||||||||||
LOANS | ||||||||||||||||||||
Construction and land development | $ | 36,720 | $ | 37,168 | $ | 39,421 | $ | 36,720 | $ | 39,421 | ||||||||||
Commercial real estate | 207,290 | 210,393 | 205,642 | 207,290 | 205,642 | |||||||||||||||
Residential real estate | 118,610 | 119,398 | 119,776 | 118,610 | 119,776 | |||||||||||||||
Home equity | 61,674 | 61,064 | 63,302 | 61,674 | 63,302 | |||||||||||||||
Commercial and industrial | 84,702 | 85,051 | 80,331 | 84,702 | 80,331 | |||||||||||||||
Consumer | 7,632 | 7,707 | 6,894 | 7,632 | 6,894 | |||||||||||||||
Total | $ | 516,628 | $ | 520,781 | $ | 515,366 | $ | 516,628 | $ | 515,366 | ||||||||||
NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
90 days past due | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Nonaccrual | 3,417 | 2,597 | 3,436 | 3,417 | 3,436 | |||||||||||||||
Foreclosed real estate | 3,532 | 3,716 | 3,815 | 3,532 | 3,815 | |||||||||||||||
Nonperforming assets | $ | 6,949 | $ | 6,313 | $ | 7,251 | $ | 6,949 | $ | 7,251 | ||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
Annualized net chargeoffs to average loans | 0.39 | % | 0.47 | % | 0.26 | % | 0.39 | % | 0.26 | % | ||||||||||
Nonperforming assets to total assets | 0.83 | 0.76 | 0.89 | 0.83 | 0.89 | |||||||||||||||
Nonperforming loans to total loans | 0.66 | 0.50 | 0.67 | 0.66 | 0.67 | |||||||||||||||
Allowance for loan losses to total loans | 1.60 | 1.62 | 1.57 | 1.60 | 1.57 | |||||||||||||||
Allowance for loan losses to | ||||||||||||||||||||
nonperforming loans | 241.64 | 324.22 | 236.09 | 241.64 | 236.09 | |||||||||||||||
OTHER DATA | ||||||||||||||||||||
Fiduciary assets at period-end (c) | $ | 380,259 | $ | 368,018 | $ | 363,205 | $ | 380,259 | $ | 363,205 | ||||||||||
Retail brokerage assets at period-end (c) | $ | 50,175 | $ | 49,311 | $ | 51,848 | $ | 50,175 | $ | 51,848 | ||||||||||
Number full-time equivalent employees (d) | 242 | 242 | 235 | 242 | 235 | |||||||||||||||
Number of full service offices | 18 | 18 | 18 | 18 | 18 | |||||||||||||||
Number of loan production offices | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
Number of ATM's | 26 | 26 | 26 | 26 | 26 | |||||||||||||||
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 |
American National Bankshares Inc. and Subsidiaries | ||||||||||||||||||||||||
Net Interest Income Analysis | ||||||||||||||||||||||||
For the Three Months Ended March 31, 2011 and 2010 | ||||||||||||||||||||||||
(in thousands, except rates) | ||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
Loans: | ||||||||||||||||||||||||
Commercial | $ | 77,925 | $ | 79,279 | $ | 880 | $ | 953 | 4.52 | % | 4.81 | % | ||||||||||||
Real estate | 432,688 | 434,795 | 5,695 | 6,095 | 5.26 | 5.61 | ||||||||||||||||||
Consumer | 7,505 | 6,773 | 136 | 134 | 7.25 | 7.91 | ||||||||||||||||||
Total loans | 518,118 | 520,847 | 6,711 | 7,182 | 5.18 | 5.52 | ||||||||||||||||||
Securities: | ||||||||||||||||||||||||
Federal agencies & GSE | 43,345 | 65,751 | 323 | 551 | 2.98 | 3.35 | ||||||||||||||||||
Mortgage-backed & CMO's | 59,297 | 43,783 | 490 | 501 | 3.31 | 4.58 | ||||||||||||||||||
State and municipal | 117,916 | 67,538 | 1,408 | 927 | 4.78 | 5.49 | ||||||||||||||||||
Other | 6,037 | 7,624 | 58 | 69 | 3.84 | 3.62 | ||||||||||||||||||
Total securities | 226,595 | 184,696 | 2,279 | 2,048 | 4.02 | 4.44 | ||||||||||||||||||
Deposits in other banks | 20,578 | 30,640 | 70 | 91 | 1.36 | 1.19 | ||||||||||||||||||
Total interest earning assets | 765,291 | 736,183 | 9,060 | 9,321 | 4.74 | 5.06 | ||||||||||||||||||
Nonearning assets | 72,860 | 74,437 | ||||||||||||||||||||||
Total assets | $ | 838,151 | $ | 810,620 | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Demand | $ | 96,698 | $ | 97,062 | 18 | 21 | 0.07 | 0.09 | ||||||||||||||||
Money market | 63,125 | 80,809 | 83 | 90 | 0.53 | 0.45 | ||||||||||||||||||
Savings | 62,505 | 62,801 | 21 | 22 | 0.13 | 0.14 | ||||||||||||||||||
Time | 319,776 | 266,537 | 1,458 | 1,502 | 1.82 | 2.25 | ||||||||||||||||||
Total deposits | 542,104 | 507,209 | 1,580 | 1,635 | 1.17 | 1.29 | ||||||||||||||||||
Customer repurchase agreements | 43,762 | 63,947 | 80 | 105 | 0.73 | 0.66 | ||||||||||||||||||
Other short-term borrowings | 136 | - | - | - | 0.47 | - | ||||||||||||||||||
Long-term borrowings | 27,855 | 29,248 | 396 | 407 | 5.69 | 5.57 | ||||||||||||||||||
Total interest bearing liabilities | 613,857 | 600,404 | 2,056 | 2,147 | 1.34 | 1.43 | ||||||||||||||||||
Noninterest bearing | ||||||||||||||||||||||||
demand deposits | 110,818 | 98,876 | ||||||||||||||||||||||
Other liabilities | 4,252 | 4,004 | ||||||||||||||||||||||
Shareholders' equity | 109,224 | 107,336 | ||||||||||||||||||||||
Total liabilities and | ||||||||||||||||||||||||
shareholders' equity | $ | 838,151 | $ | 810,620 | ||||||||||||||||||||
Interest rate spread | 3.40 | % | 3.63 | % | ||||||||||||||||||||
Net interest margin | 3.66 | % | 3.90 | % | ||||||||||||||||||||
Net interest income (taxable equivalent basis) | 7,004 | 7,174 | ||||||||||||||||||||||
Less: Taxable equivalent adjustment | 399 | 270 | ||||||||||||||||||||||
Net interest income | $ | 6,605 | $ | 6,904 | ||||||||||||||||||||