American National Bankshares Inc. | ||||||||
Consolidated Balance Sheets | ||||||||
(Dollars in thousands, except per share data) | ||||||||
Unaudited | ||||||||
June 30 | ||||||||
ASSETS | 2019 | 2018 | ||||||
Cash and due from banks | $ | 34,460 | $ | 24,042 | ||||
Interest-bearing deposits in other banks | 20,454 | 9,300 | ||||||
Equity securities, at fair value | 125 | 2,177 | ||||||
Securities available for sale, at fair value | 334,326 | 341,247 | ||||||
Restricted stock, at cost | 7,796 | 5,463 | ||||||
Loans held for sale | 3,165 | 2,296 | ||||||
Loans | 1,836,241 | 1,339,379 | ||||||
Less allowance for loan losses | (12,786 | ) | (13,508 | ) | ||||
Net Loans | 1,823,455 | 1,325,871 | ||||||
Premises and equipment, net | 39,038 | 25,879 | ||||||
Other real estate owned, net | 1,433 | 1,124 | ||||||
Goodwill | 84,633 | 43,872 | ||||||
Core deposit intangibles, net | 8,613 | 1,037 | ||||||
Bank owned life insurance | 27,451 | 18,674 | ||||||
Accrued interest receivable and other assets | 33,133 | 23,549 | ||||||
Total assets | $ | 2,418,082 | $ | 1,824,531 | ||||
Liabilities | ||||||||
Demand deposits -- noninterest-bearing | $ | 554,400 | $ | 420,795 | ||||
Demand deposits -- interest-bearing | 326,105 | 251,056 | ||||||
Money market deposits | 451,343 | 383,963 | ||||||
Savings deposits | 178,723 | 132,839 | ||||||
Time deposits | 488,526 | 372,093 | ||||||
Total deposits | 1,999,097 | 1,560,746 | ||||||
Short-term borrowings: | ||||||||
Customer repurchase agreements | 37,222 | 6,776 | ||||||
Other short-term borrowings | 13,528 | 5,500 | ||||||
Subordinated debt | 7,526 | — | ||||||
Junior subordinated debt | 27,978 | 27,876 | ||||||
Accrued interest payable and other liabilities | 20,814 | 10,285 | ||||||
Total liabilities | 2,106,165 | 1,611,183 | ||||||
Shareholders' equity | ||||||||
Preferred stock, $5 par, 2,000,000 shares authorized, | ||||||||
none outstanding | — | — | ||||||
Common stock, $1 par, 20,000,000 shares authorized, | ||||||||
11,141,355 shares outstanding at June 30, 2019 and | ||||||||
8,708,127 shares outstanding at June 30, 2018 | 11,089 | 8,654 | ||||||
Capital in excess of par value | 160,572 | 77,496 | ||||||
Retained earnings | 141,339 | 135,108 | ||||||
Accumulated other comprehensive loss, net | (1,083 | ) | (7,910 | ) | ||||
Total shareholders' equity | 311,917 | 213,348 | ||||||
Total liabilities and shareholders' equity | $ | 2,418,082 | $ | 1,824,531 |
American National Bankshares Inc. | ||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||
Unaudited | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30 | June 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Interest and Dividend Income: | ||||||||||||||||
Interest and fees on loans | $ | 22,629 | $ | 14,766 | $ | 38,267 | $ | 29,423 | ||||||||
Interest and dividends on securities: | ||||||||||||||||
Taxable | 1,980 | 1,540 | 3,801 | 2,864 | ||||||||||||
Tax-exempt | 239 | 423 | 526 | 842 | ||||||||||||
Dividends | 105 | 78 | 189 | 158 | ||||||||||||
Other interest income | 258 | 185 | 524 | 373 | ||||||||||||
Total interest and dividend income | 25,211 | 16,992 | 43,307 | 33,660 | ||||||||||||
Interest Expense: | ||||||||||||||||
Interest on deposits | 3,520 | 1,873 | 5,992 | 3,698 | ||||||||||||
Interest on short-term borrowings | 178 | 2 | 350 | 12 | ||||||||||||
Interest on long-term borrowings | 14 | — | 14 | — | ||||||||||||
Interest on subordinated debt | 122 | — | 122 | — | ||||||||||||
Interest on junior subordinated debt | 388 | 329 | 772 | 619 | ||||||||||||
Total interest expense | 4,222 | 2,204 | 7,250 | 4,329 | ||||||||||||
Net Interest Income | 20,989 | 14,788 | 36,057 | 29,331 | ||||||||||||
Provision for (recovery of) loan losses | (10 | ) | (30 | ) | 6 | (74 | ) | |||||||||
Net Interest Income After Provision | ||||||||||||||||
for Loan Losses | 20,999 | 14,818 | 36,051 | 29,405 | ||||||||||||
Noninterest Income: | ||||||||||||||||
Trust fees | 933 | 945 | 1,847 | 1,874 | ||||||||||||
Service charges on deposit accounts | 724 | 592 | 1,318 | 1,204 | ||||||||||||
Other fees and commissions | 1,015 | 679 | 1,723 | 1,321 | ||||||||||||
Mortgage banking income | 586 | 491 | 992 | 941 | ||||||||||||
Securities gains, net | 147 | 289 | 470 | 410 | ||||||||||||
Brokerage fees | 186 | 209 | 333 | 431 | ||||||||||||
Income from Small Business Investment Companies | (137 | ) | 171 | 31 | 326 | |||||||||||
Gains (losses) on premises and equipment, net | (87 | ) | — | (87 | ) | 3 | ||||||||||
Other | 315 | 187 | 506 | 386 | ||||||||||||
Total noninterest income | 3,682 | 3,563 | 7,133 | 6,896 | ||||||||||||
Noninterest Expense: | ||||||||||||||||
Salaries | 7,048 | 5,095 | 11,712 | 10,092 | ||||||||||||
Employee benefits | 1,425 | 1,111 | 2,655 | 2,286 | ||||||||||||
Occupancy and equipment | 1,431 | 1,100 | 2,515 | 2,228 | ||||||||||||
FDIC assessment | 169 | 132 | 294 | 278 | ||||||||||||
Bank franchise tax | 412 | 291 | 702 | 572 | ||||||||||||
Core deposit intangible amortization | 458 | 77 | 513 | 154 | ||||||||||||
Data processing | 717 | 467 | 1,249 | 889 | ||||||||||||
Software | 321 | 354 | 645 | 659 | ||||||||||||
Other real estate owned, net | (44 | ) | 25 | (31 | ) | 55 |
Merger related expenses | 10,871 | — | 11,322 | — | ||||||||||||
Other | 3,508 | 2,350 | 5,669 | 4,491 | ||||||||||||
Total noninterest expense | 26,316 | 11,002 | 37,245 | 21,704 | ||||||||||||
Income (Loss) Before Income Taxes | (1,635 | ) | 7,379 | 5,939 | 14,597 | |||||||||||
Income Taxes | (405 | ) | 1,399 | 1,166 | 2,805 | |||||||||||
Net Income (Loss) | $ | (1,230 | ) | $ | 5,980 | $ | 4,773 | $ | 11,792 | |||||||
Net Income (Loss) Per Common Share: | ||||||||||||||||
Basic | $ | (0.11 | ) | $ | 0.69 | $ | 0.48 | $ | 1.36 | |||||||
Diluted | $ | (0.11 | ) | $ | 0.69 | $ | 0.48 | $ | 1.36 | |||||||
Weighted Average Common Shares Outstanding: | ||||||||||||||||
Basic | 11,126,800 | 8,692,107 | 9,942,566 | 8,680,739 | ||||||||||||
Diluted | 11,126,800 | 8,704,726 | 9,952,115 | 8,695,860 |
American National Bankshares Inc. | |||||||||||||||||||||||
Financial Highlights | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||
2nd Qtr | 1st Qtr | 2nd Qtr | YTD | YTD | |||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
EARNINGS | |||||||||||||||||||||||
Interest income | $ | 25,211 | $ | 18,096 | $ | 16,992 | $ | 43,307 | $ | 33,660 | |||||||||||||
Interest expense | 4,222 | 3,028 | 2,204 | 7,250 | 4,329 | ||||||||||||||||||
Net interest income | 20,989 | 15,068 | 14,788 | 36,057 | 29,331 | ||||||||||||||||||
Provision for (recovery of) loan losses | (10 | ) | 16 | (30 | ) | 6 | (74 | ) | |||||||||||||||
Noninterest income | 3,682 | 3,451 | 3,563 | 7,133 | 6,896 | ||||||||||||||||||
Noninterest expense | 26,316 | 10,929 | 11,002 | 37,245 | 21,704 | ||||||||||||||||||
Income taxes | (405 | ) | 1,571 | 1,399 | 1,166 | 2,805 | |||||||||||||||||
Net income | (1,230 | ) | 6,003 | 5,980 | 4,773 | 11,792 | |||||||||||||||||
PER COMMON SHARE | |||||||||||||||||||||||
Income per share - basic | $ | (0.11 | ) | $ | 0.69 | $ | 0.69 | $ | 0.48 | $ | 1.36 | ||||||||||||
Income per share - diluted | (0.11 | ) | 0.69 | 0.69 | 0.48 | 1.36 | |||||||||||||||||
Cash dividends paid | 0.25 | 0.25 | 0.25 | 0.50 | 0.50 | ||||||||||||||||||
Book value per share | 28.00 | 26.21 | 24.50 | 28.00 | 24.50 | ||||||||||||||||||
Book value per share - tangible (a) | 19.63 | 21.10 | 19.34 | 19.63 | 19.34 | ||||||||||||||||||
Closing market price | 38.75 | 34.92 | 40.00 | 38.75 | 40.00 | ||||||||||||||||||
FINANCIAL RATIOS | |||||||||||||||||||||||
Return on average assets | (0.20 | ) | % | 1.29 | % | 1.31 | % | 0.44 | % | 1.29 | % | ||||||||||||
Return on average equity | (1.60 | ) | 10.69 | 11.27 | 3.59 | 11.19 | |||||||||||||||||
Return on average tangible equity (a) | (1.62 | ) | 13.44 | 14.44 | 5.25 | 14.37 | |||||||||||||||||
Average equity to average assets | 12.62 | 12.06 | 11.62 | 12.38 | 11.57 | ||||||||||||||||||
Tangible equity to tangible assets (a) | 9.41 | 10.13 | 9.46 | 9.41 | 9.46 | ||||||||||||||||||
Net interest margin, taxable equivalent | 3.82 | 3.50 | 3.50 | 3.67 | 3.48 | ||||||||||||||||||
Efficiency ratio (a) | 60.94 | 56.95 | 59.96 | 59.24 | 59.66 | ||||||||||||||||||
Effective tax rate | (24.77 | ) | 20.74 | 18.96 | 19.63 | 19.22 | |||||||||||||||||
PERIOD-END BALANCES | |||||||||||||||||||||||
Securities | $ | 342,247 | $ | 331,657 | $ | 348,887 | $ | 342,247 | $ | 348,887 | |||||||||||||
Loans held for sale | 3,165 | 1,252 | 2,296 | 3,165 | 2,296 | ||||||||||||||||||
Loans, net of unearned income | 1,836,241 | 1,360,063 | 1,339,379 | 1,836,241 | 1,339,379 | ||||||||||||||||||
Goodwill and other intangibles | 93,246 | 44,743 | 44,909 | 93,246 | 44,909 | ||||||||||||||||||
Assets | 2,418,082 | 1,868,404 | 1,824,531 | 2,418,082 | 1,824,531 | ||||||||||||||||||
Assets - tangible (a) | 2,324,836 | 1,823,661 | 1,779,622 | 2,324,836 | 1,779,622 | ||||||||||||||||||
Deposits | 1,999,097 | 1,559,790 | 1,560,746 | 1,999,097 | 1,560,746 | ||||||||||||||||||
Customer repurchase agreements | 37,222 | 35,945 | 6,776 | 37,222 | 6,776 | ||||||||||||||||||
Long-term borrowings | 35,504 | 27,953 | 27,876 | 35,504 | 27,876 | ||||||||||||||||||
Shareholders' equity | 311,917 | 229,473 | 213,348 | 311,917 | 213,348 | ||||||||||||||||||
Shareholders' equity - tangible (a) | 218,671 | 184,730 | 168,439 | 218,671 | 168,439 | ||||||||||||||||||
American National Bankshares Inc. | |||||||||||||||||||||||
Financial Highlights | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||
2nd Qtr | 1st Qtr | 2nd Qtr | YTD | YTD | |||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
AVERAGE BALANCES | |||||||||||||||||||||||
Securities (b) | $ | 354,506 | $ | 343,834 | $ | 342,486 | $ | 349,199 | $ | 328,143 | |||||||||||||
Loans held for sale | 2,913 | 1,830 | 2,616 | 2,375 | 2,328 | ||||||||||||||||||
Loans, net of unearned income | 1,816,203 | 1,352,521 | 1,321,812 | 1,585,643 | 1,329,890 | ||||||||||||||||||
Interest-earning assets | 2,211,273 | 1,736,887 | 1,707,223 | 1,975,887 | 1,703,287 | ||||||||||||||||||
Goodwill and other intangibles | 93,075 | 44,778 | 44,956 | 69,060 | 44,993 | ||||||||||||||||||
Assets | 2,433,948 | 1,863,212 | 1,825,860 | 2,150,157 | 1,822,165 | ||||||||||||||||||
Assets - tangible (a) | 2,340,873 | 1,818,434 | 1,780,904 | 2,081,097 | 1,777,172 | ||||||||||||||||||
Interest-bearing deposits | 1,463,613 | 1,131,604 | 1,145,701 | 1,298,526 | 1,151,380 | ||||||||||||||||||
Deposits | 2,023,557 | 1,551,413 | 1,565,321 | 1,788,789 | 1,561,258 | ||||||||||||||||||
Customer repurchase agreements | 35,657 | 42,705 | 11,347 | 39,161 | 11,795 | ||||||||||||||||||
Other short-term borrowings | 7,627 | 61 | 247 | 3,865 | 1,210 | ||||||||||||||||||
Long-term borrowings | 36,301 | 27,937 | 27,861 | 32,142 | 27,848 | ||||||||||||||||||
Shareholders' equity | 307,281 | 224,677 | 212,256 | 266,208 | 210,852 | ||||||||||||||||||
Shareholders' equity - tangible (a) | 214,206 | 179,899 | 167,300 | 197,148 | 165,859 | ||||||||||||||||||
CAPITAL | |||||||||||||||||||||||
Weighted average shares outstanding - basic | 11,126,800 | 8,745,174 | 8,692,107 | 9,942,566 | 8,680,739 | ||||||||||||||||||
Weighted average shares outstanding - diluted | 11,126,800 | 8,745,723 | 8,704,726 | 9,952,115 | 8,695,860 | ||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||
Beginning balance | $ | 12,806 | $ | 12,805 | $ | 13,575 | $ | 12,805 | $ | 13,603 | |||||||||||||
Provision for (recovery of) loan losses | (10 | ) | 16 | (30 | ) | 6 | (74 | ) | |||||||||||||||
Charge-offs | (54 | ) | (69 | ) | (130 | ) | (123 | ) | (174 | ) | |||||||||||||
Recoveries | 44 | 54 | 93 | 98 | 153 | ||||||||||||||||||
Ending balance | $ | 12,786 | $ | 12,806 | $ | 13,508 | $ | 12,786 | $ | 13,508 | |||||||||||||
LOANS | |||||||||||||||||||||||
Construction and land development | $ | 152,876 | $ | 93,759 | $ | 96,740 | $ | 152,876 | $ | 96,740 | |||||||||||||
Commercial real estate | 880,146 | 659,133 | 633,128 | 880,146 | 633,128 | ||||||||||||||||||
Residential real estate | 328,400 | 212,665 | 207,374 | 328,400 | 207,374 | ||||||||||||||||||
Home equity | 121,905 | 99,979 | 105,558 | 121,905 | 105,558 | ||||||||||||||||||
Commercial and industrial | 340,427 | 289,301 | 291,454 | 340,427 | 291,454 | ||||||||||||||||||
Consumer | 12,487 | 5,226 | 5,125 | 12,487 | 5,125 | ||||||||||||||||||
Total | $ | 1,836,241 | $ | 1,360,063 | $ | 1,339,379 | $ | 1,836,241 | $ | 1,339,379 | |||||||||||||
American National Bankshares Inc. | |||||||||||||||||||||||
Financial Highlights | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||
2nd Qtr | 1st Qtr | 2nd Qtr | YTD | YTD | |||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
NONPERFORMING ASSETS AT PERIOD-END | |||||||||||||||||||||||
Nonperforming loans: | |||||||||||||||||||||||
90 days past due and accruing | 930 | 197 | 229 | 930 | 229 | ||||||||||||||||||
Nonaccrual | 969 | 1,111 | 1,861 | 969 | 1,861 | ||||||||||||||||||
Other real estate owned | 1,433 | 646 | 1,124 | 1,433 | 1,124 | ||||||||||||||||||
Nonperforming assets | $ | 3,332 | $ | 1,954 | $ | 3,214 | $ | 3,332 | $ | 3,214 | |||||||||||||
ASSET QUALITY RATIOS | |||||||||||||||||||||||
Allowance for loan losses to total loans | 0.70 | % | 0.94 | % | 1.01 | % | 0.70 | % | 1.01 | % | |||||||||||||
Allowance for loan losses to | |||||||||||||||||||||||
nonperforming loans | 673.30 | 979.05 | 646.32 | 673.30 | 646.32 | ||||||||||||||||||
Nonperforming assets to total assets | 0.14 | 0.10 | 0.18 | 0.14 | 0.18 | ||||||||||||||||||
Nonperforming loans to total loans | 0.10 | 0.10 | 0.16 | 0.10 | 0.16 | ||||||||||||||||||
Annualized net charge-offs | |||||||||||||||||||||||
to average loans | — | — | 0.01 | — | — | ||||||||||||||||||
OTHER DATA | |||||||||||||||||||||||
Fiduciary assets at period-end (c)(d) | $ | 547,731 | $ | 533,063 | $ | 510,552 | $ | 547,731 | $ | 510,552 | |||||||||||||
Retail brokerage assets at period-end (c)(d) | $ | 314,051 | $ | 303,045 | $ | 326,692 | $ | 314,051 | $ | 326,692 | |||||||||||||
Number full-time equivalent employees (e) | 371 | 299 | 323 | 371 | 323 | ||||||||||||||||||
Number of full service offices | 28 | 24 | 26 | 28 | 26 | ||||||||||||||||||
Number of loan production offices | — | — | 2 | — | 2 | ||||||||||||||||||
Number of ATM's | 39 | 33 | 34 | 39 | 34 | ||||||||||||||||||
Notes: | |||||||||||||||||||||||
(a) - This financial measure is not calculated in accordance with GAAP. For a reconciliation of | |||||||||||||||||||||||
non-GAAP financial measures, see "Reconciliation of Non-GAAP Financial Measures" at the end of | |||||||||||||||||||||||
this release. | |||||||||||||||||||||||
(b) - Average does not include unrealized gains and losses. | |||||||||||||||||||||||
(c) - Market value. | |||||||||||||||||||||||
(d) - Assets are not owned by American National and are not reflected in the consolidated balance sheet. | |||||||||||||||||||||||
(e) - Average for quarter. |
Net Interest Income Analysis | |||||||||||||||||||||||||
For the Three Months Ended June 30, 2019 and 2018 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Interest | |||||||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | |||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||
Loans: | |||||||||||||||||||||||||
Commercial | $ | 321,263 | $ | 267,996 | $ | 3,899 | $ | 2,652 | 4.87 | % | 3.97 | % | |||||||||||||
Real estate | 1,485,665 | 1,052,105 | 18,578 | 12,087 | 5.00 | 4.60 | |||||||||||||||||||
Consumer | 12,188 | 4,327 | 201 | 77 | 6.61 | 7.14 | |||||||||||||||||||
Total loans | 1,819,116 | 1,324,428 | 22,678 | 14,816 | 4.99 | 4.48 | |||||||||||||||||||
Securities: | |||||||||||||||||||||||||
Federal agencies & GSEs | 140,516 | 127,033 | 858 | 707 | 2.44 | 2.23 | |||||||||||||||||||
Mortgage-backed & CMOs | 127,718 | 108,789 | 809 | 609 | 2.53 | 2.24 | |||||||||||||||||||
State and municipal | 68,185 | 91,636 | 480 | 653 | 2.82 | 2.85 | |||||||||||||||||||
Other | 18,087 | 15,028 | 233 | 176 | 5.15 | 4.68 | |||||||||||||||||||
Total securities | 354,506 | 342,486 | 2,380 | 2,145 | 2.69 | 2.51 | |||||||||||||||||||
Deposits in other banks | 37,651 | 40,309 | 258 | 185 | 2.75 | 1.84 | |||||||||||||||||||
Total interest-earning assets | 2,211,273 | 1,707,223 | 25,316 | 17,146 | 4.58 | 4.02 | |||||||||||||||||||
Non-earning assets | 222,675 | 118,637 | |||||||||||||||||||||||
Total assets | $ | 2,433,948 | $ | 1,825,860 | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||
Demand | $ | 335,879 | $ | 246,493 | 112 | 13 | 0.13 | 0.02 | |||||||||||||||||
Money market | 448,722 | 395,135 | 1,394 | 802 | 1.25 | 0.81 | |||||||||||||||||||
Savings | 179,375 | 132,190 | 97 | 10 | 0.22 | 0.03 | |||||||||||||||||||
Time | 499,637 | 371,883 | 1,916 | 1,048 | 1.54 | 1.13 | |||||||||||||||||||
Total deposits | 1,463,613 | 1,145,701 | 3,519 | 1,873 | 0.96 | 0.66 | |||||||||||||||||||
Customer repurchase agreements | 35,657 | 11,347 | 140 | 1 | 1.57 | 0.04 | |||||||||||||||||||
Other short-term borrowings | 7,627 | 247 | 39 | 1 | 2.05 | 1.62 | |||||||||||||||||||
Long-term borrowings | 36,301 | 27,861 | 524 | 329 | 5.77 | 4.72 | |||||||||||||||||||
Total interest-bearing | |||||||||||||||||||||||||
liabilities | 1,543,198 | 1,185,156 | 4,222 | 2,204 | 1.10 | 0.75 | |||||||||||||||||||
Noninterest bearing demand deposits | 559,944 | 419,620 | |||||||||||||||||||||||
Other liabilities | 23,525 | 8,828 | |||||||||||||||||||||||
Shareholders' equity | 307,281 | 212,256 | |||||||||||||||||||||||
Total liabilities and | |||||||||||||||||||||||||
shareholders' equity | $ | 2,433,948 | $ | 1,825,860 | |||||||||||||||||||||
Interest rate spread | 3.48 | % | 3.27 | % | |||||||||||||||||||||
Net interest margin | 3.82 | % | 3.50 | % | |||||||||||||||||||||
Net interest income (taxable equivalent basis) | 21,094 | 14,942 | |||||||||||||||||||||||
Less: Taxable equivalent adjustment | 105 | 154 | |||||||||||||||||||||||
Net interest income | $ | 20,989 | $ | 14,788 | |||||||||||||||||||||
Net Interest Income Analysis | |||||||||||||||||||||||||
For the Six Months Ended June 30, 2019 and 2018 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||||
Interest | |||||||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | |||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Loans: | |||||||||||||||||||||||||
Commercial | $ | 293,575 | $ | 263,300 | $ | 6,790 | $ | 5,096 | 4.66 | % | 3.90 | % | |||||||||||||
Real estate | 1,285,842 | 1,064,605 | 31,294 | 24,277 | 4.87 | 4.56 | |||||||||||||||||||
Consumer | 8,601 | 4,313 | 276 | 153 | 6.47 | 7.15 | |||||||||||||||||||
Total loans | 1,588,018 | 1,332,218 | 38,360 | 29,526 | 4.84 | 4.44 | |||||||||||||||||||
Securities: | |||||||||||||||||||||||||
Federal agencies & GSEs | 139,993 | 115,182 | 1,708 | 1,224 | 2.44 | 2.13 | |||||||||||||||||||
Mortgage-backed & CMOs | 119,754 | 108,808 | 1,502 | 1,208 | 2.51 | 2.22 | |||||||||||||||||||
State and municipal | 73,362 | 89,000 | 1,018 | 1,287 | 2.78 | 2.89 | |||||||||||||||||||
Other | 16,090 | 15,153 | 411 | 351 | 5.11 | 4.63 | |||||||||||||||||||
Total securities | 349,199 | 328,143 | 4,639 | 4,070 | 2.66 | 2.48 | |||||||||||||||||||
Deposits in other banks | 38,670 | 42,926 | 524 | 373 | 2.73 | 1.75 | |||||||||||||||||||
Total interest-earning assets | 1,975,887 | 1,703,287 | 43,523 | 33,969 | 4.41 | 3.99 | |||||||||||||||||||
Non-earning assets | 174,270 | 118,878 | |||||||||||||||||||||||
Total assets | $ | 2,150,157 | $ | 1,822,165 | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||
Demand | $ | 287,424 | $ | 239,477 | 126 | 24 | 0.09 | 0.02 | |||||||||||||||||
Money market | 422,359 | 402,612 | 2,548 | 1,585 | 1.22 | 0.79 | |||||||||||||||||||
Savings | 156,843 | 131,453 | 107 | 20 | 0.14 | 0.03 | |||||||||||||||||||
Time | 431,900 | 377,838 | 3,211 | 2,069 | 1.50 | 1.10 | |||||||||||||||||||
Total deposits | 1,298,526 | 1,151,380 | 5,992 | 3,698 | 0.93 | 0.65 | |||||||||||||||||||
Customer repurchase agreements | 39,161 | 11,795 | 311 | 2 | 1.60 | 0.03 | |||||||||||||||||||
Other short-term borrowings | 3,865 | 1,210 | 39 | 10 | 2.02 | 1.65 | |||||||||||||||||||
Long-term borrowings | 32,142 | 27,848 | 908 | 619 | 5.65 | 4.45 | |||||||||||||||||||
Total interest-bearing | |||||||||||||||||||||||||
liabilities | 1,373,694 | 1,192,233 | 7,250 | 4,329 | 1.06 | 0.73 | |||||||||||||||||||
Noninterest bearing demand deposits | 490,263 | 409,878 | |||||||||||||||||||||||
Other liabilities | 19,992 | 9,202 | |||||||||||||||||||||||
Shareholders' equity | 266,208 | 210,852 | |||||||||||||||||||||||
Total liabilities and | |||||||||||||||||||||||||
shareholders' equity | $ | 2,150,157 | $ | 1,822,165 | |||||||||||||||||||||
Interest rate spread | 3.35 | % | 3.26 | % | |||||||||||||||||||||
Net interest margin | 3.67 | % | 3.48 | % | |||||||||||||||||||||
Net interest income (taxable equivalent basis) | 36,273 | 29,640 | |||||||||||||||||||||||
Less: Taxable equivalent adjustment | 216 | 309 | |||||||||||||||||||||||
Net interest income | $ | 36,057 | $ | 29,331 | |||||||||||||||||||||
American National Bankshares Inc. | |||||||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||||
Unaudited | |||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||
2nd Qtr | 1st Qtr | 2nd Qtr | YTD | YTD | |||||||||||||||||||
2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||
EFFICIENCY RATIO | |||||||||||||||||||||||
Noninterest expense | $ | 26,316 | $ | 10,929 | $ | 11,002 | $ | 37,245 | $ | 21,704 | |||||||||||||
Add/subtract: loss/(gain) on sale of OREO | 76 | 2 | (3 | ) | 78 | 2 | |||||||||||||||||
Subtract: core deposit intangible amortization | (458 | ) | (55 | ) | (77 | ) | (513 | ) | (154 | ) | |||||||||||||
Subtract: merger related expense | (10,871 | ) | (451 | ) | — | (11,322 | ) | — | |||||||||||||||
$ | 15,063 | $ | 10,425 | $ | 10,922 | $ | 25,488 | $ | 21,552 | ||||||||||||||
Net interest income | $ | 20,989 | $ | 15,068 | $ | 14,788 | $ | 36,057 | $ | 29,331 | |||||||||||||
Tax equivalent adjustment | 105 | 111 | 154 | 216 | 309 | ||||||||||||||||||
Noninterest income | 3,682 | 3,451 | 3,563 | 7,133 | 6,896 | ||||||||||||||||||
Add/subtract: (gain)/loss on securities | (147 | ) | (323 | ) | (289 | ) | (470 | ) | (410 | ) | |||||||||||||
Add/subtract: (gain)/loss on fixed assets | 87 | — | — | 87 | (3 | ) | |||||||||||||||||
$ | 24,716 | $ | 18,307 | $ | 18,216 | $ | 43,023 | $ | 36,123 | ||||||||||||||
Efficiency ratio | 60.94 | % | 56.95 | % | 59.96 | % | 59.24 | % | 59.66 | % | |||||||||||||
TAX EQUIVALENT NET INTEREST INCOME | |||||||||||||||||||||||
Non-GAAP measures: | |||||||||||||||||||||||
Interest income - loans | $ | 22,678 | $ | 15,682 | $ | 14,816 | $ | 38,360 | $ | 29,526 | |||||||||||||
Interest income - investments and other | 2,638 | 2,525 | 2,330 | 5,163 | 4,443 | ||||||||||||||||||
Interest expense - deposits | (3,519 | ) | (2,472 | ) | (1,873 | ) | (5,992 | ) | (3,698 | ) | |||||||||||||
Interest expense - customer repurchase | |||||||||||||||||||||||
agreements | (140 | ) | (171 | ) | (1 | ) | (311 | ) | (2 | ) | |||||||||||||
Interest expense - other short-term borrowings | (39 | ) | (1 | ) | (1 | ) | (39 | ) | (10 | ) | |||||||||||||
Interest expense - long-term borrowings | (524 | ) | (384 | ) | (329 | ) | (908 | ) | (619 | ) | |||||||||||||
Total net interest income | $ | 21,094 | $ | 15,179 | $ | 14,942 | $ | 36,273 | $ | 29,640 | |||||||||||||
Less non-GAAP measures: | |||||||||||||||||||||||
Tax benefit on nontaxable interest - loans | (49 | ) | (44 | ) | (50 | ) | (93 | ) | (102 | ) | |||||||||||||
Tax benefit on nontaxable interest - securities | (56 | ) | (67 | ) | (104 | ) | (123 | ) | (207 | ) | |||||||||||||
GAAP measures | $ | 20,989 | $ | 15,068 | $ | 14,788 | $ | 36,057 | $ | 29,331 | |||||||||||||
RETURN ON AVERAGE TANGIBLE EQUITY | |||||||||||||||||||||||
Return on average equity (GAAP basis) | (1.6 | ) | % | 10.69 | % | 11.27 | % | 3.59 | % | 11.19 | % | ||||||||||||
Impact of excluding average goodwill | |||||||||||||||||||||||
and other intangibles | (0.02 | ) | 2.75 | 3.17 | 1.66 | 3.18 | |||||||||||||||||
Return on average tangible equity | |||||||||||||||||||||||
(non-GAAP) | (1.62 | ) | % | 13.44 | % | 14.44 | % | 5.25 | % | 14.37 | % | ||||||||||||
TANGIBLE EQUITY TO TANGIBLE ASSETS | |||||||||||||||||||||||
Equity to assets ratio (GAAP basis) | 12.90 | % | 12.28 | % | 11.69 | % | 12.90 | % | 11.69 | % | |||||||||||||
Impact of excluding goodwill and | |||||||||||||||||||||||
other intangibles | 3.49 | 2.15 | 2.23 | 3.49 | 2.23 | ||||||||||||||||||
Tangible equity to tangible assets ratio | |||||||||||||||||||||||
(non-GAAP) | 9.41 | % | 10.13 | % | 9.46 | % | 9.41 | % | 9.46 | % | |||||||||||||
TANGIBLE BOOK VALUE | |||||||||||||||||||||||
Book value per share (GAAP basis) | $ | 28.00 | $ | 26.21 | $ | 24.50 | $ | 28.00 | $ | 24.50 | |||||||||||||
Impact of excluding goodwill and | |||||||||||||||||||||||
other intangibles | 8.37 | 5.11 | 5.16 | 8.37 | 5.16 | ||||||||||||||||||
Tangible book value per share | |||||||||||||||||||||||
(non-GAAP) | $ | 19.63 | $ | 21.10 | $ | 19.34 | $ | 19.63 | $ | 19.34 |