EXHIBIT 99.1
April 21, 2004
FOR IMMEDIATE RELEASE
Contact: Charles H. Majors - (434) 773-2219
AMERICAN NATIONAL BANKSHARES INC. REPORTS RECORD
FIRST QUARTER EARNINGS
DANVILLE, Va., April 21, 2004 / PRNewswire-FirstCall/ -- American National
Bankshares Inc. (NASDAQ: AMNB) today reported record first quarter earnings of
$2,470,000, up 5.8% from the first quarter of 2003. Diluted earnings per share
were $0.43, up 7.5% from the $0.40 earned in the first quarter of 2003. AMNB's
first quarter 2004 results produced an annualized return on average equity (ROE)
and an annualized return on average assets (ROA) of 13.62% and 1.54%,
respectively, compared to 13.23% and 1.55%, respectively, for the first three
months of 2003.
Charles H. Majors, President and Chief Executive Officer stated, "We
are pleased with our record first quarter earnings. Our focus on growing
non-interest income is paying off with overall growth of 26.7% compared to the
previous year. We continue to aggressively manage our net interest margin during
this low interest rate environment and feel we are well positioned for the
higher interest rates now being forecast. As we increased total revenue we also
reduced overhead expenses, resulting in a strong efficiency ratio of 49.8% for
the quarter, which is considerably better than those of our peer banks. While
non-performing assets increased from a year ago and from the previous quarter,
we are committed to reducing these numbers to their more traditional levels. We
will continue to focus on growing existing and new customer financial
relationships and to look for opportunities to expand into new areas."
Total assets of the Corporation were $645.9 million at March 31, 2004,
compared to $614.2 million for the comparable period in 2003. Shareholders'
equity at March 31, 2004 was $73.1 million and represents 11.3% of total assets.
American National Bankshares Inc. is the holding company of American
National Bank and Trust Company, a community bank with fourteen offices in
Danville, Chatham, Collinsville, Gretna, Martinsville, Henry County, and South
Boston, Virginia, and Yanceyville, North Carolina. Services are also provided
through twenty ATMs, "AmeriLink" internet banking, and our 24-hour "Access
American" phone banking. Banking subsidiaries include ANB Mortgage Corp.
(secondary mortgage origination), ANB Investor Services (retail brokerage) and
ANB Insurance Services (full-service insurance agency).Additional information is
available on our website at WWW.AMNB.COM.
This release contains forward-looking statements within the meaning of
and pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. A forward-looking statement encompasses any estimate,
prediction, opinion or statement of belief contained in this release and the
underlying management assumptions. Forward-looking statements are based on
current expectations and assessments of potential developments affecting market
conditions, interest rates and other economic conditions, and results may
ultimately vary from the statements made in this release.
Consolidated Balance Sheets
American National Bankshares Inc. and Subsidiary
(In Thousands)
Unaudited
- ------------------------------------------------------------------------------------------------------------
March 31
----------------------------
2004 2003
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ASSETS
Cash and due from banks.........................................................$ 12,755 $ 15,962
Interest-bearing deposits in other banks........................................ 7,250 2,045
Securities:
Securities available for sale................................................. 186,969 138,578
Securities held to maturity................................................... 20,194 25,975
----------- -----------
Total securities.............................................................. 207,163 164,553
----------- -----------
Loans held for sale............................................................. 1,753 1,576
Loans, net of unearned income .................................................. 404,988 419,752
Less allowance for loan losses.................................................. (5,323) (5,771)
----------- -----------
Net loans..................................................................... 399,665 413,981
----------- -----------
Bank premises and equipment..................................................... 7,864 7,982
Core deposit intangibles, net................................................... 822 1,271
Accrued interest receivable and other assets.................................... 8,626 6,807
----------- -----------
Total assets..................................................................$ 645,898 $ 614,177
=========== ===========
LIABILITIES and SHAREHOLDERS' EQUITY
Liabilities:
Demand deposits -- non-interest bearing.......................................$ 80,683 $ 63,642
Demand deposits -- interest bearing........................................... 72,092 61,536
Money market deposits......................................................... 53,111 46,545
Savings deposits.............................................................. 84,064 79,458
Time deposits................................................................. 212,537 231,896
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Total deposits................................................................ 502,487 483,077
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Repurchase agreements......................................................... 46,040 34,803
FHLB borrowings............................................................... 21,000 21,500
Accrued interest payable and other liabilities................................ 3,283 3,880
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Total liabilities............................................................. 572,810 543,260
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Shareholders' equity:
Common stock, $1 par, 10,000,000 shares authorized,
5,633,172 shares outstanding at March 31, 2004 and
5,745,816 shares outstanding at March 31, 2003.............................. 5,633 5,746
Capital in excess of par value................................................ 9,472 9,514
Retained earnings............................................................. 56,210 53,597
Accumulated other comprehensive income, net................................... 1,773 2,060
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Total shareholders' equity.................................................... 73,088 70,917
----------- -----------
Total liabilities and shareholders' equity....................................$ 645,898 $ 614,177
=========== ===========
Consolidated Statements of Income
American National Bankshares Inc. and Subsidiary
(In Thousands)
(Unaudited)
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Three Months Ended
March 31
------------------
2004 2003
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Interest Income:
Interest and fees on loans....................................................$ 5,741 $ 6,559
Interest on deposits in other banks........................................... 31 25
Income on securities:
Federal agencies............................................................ 822 549
Mortgage-backed............................................................. 233 454
State and municipal......................................................... 512 469
Other investments........................................................... 242 346
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Total interest income....................................................... 7,581 8,402
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Interest Expense:
Interest on deposits:
Demand...................................................................... 59 68
Money market................................................................ 102 139
Savings..................................................................... 109 225
Time........................................................................ 1,327 1,720
Interest on repurchase agreements............................................. 127 125
Interest on other borrowings.................................................. 241 242
-------- -------
Total interest expense...................................................... 1,965 2,519
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Net Interest Income............................................................. 5,616 5,883
Provision for Loan Losses....................................................... 215 240
-------- -------
Net Interest Income After Provision
For Loan Losses............................................................... 5,401 5,643
-------- -------
Non-Interest Income:
Trust and investment services................................................. 728 606
Service charges on deposit accounts........................................... 574 423
Other fees and commissions.................................................... 246 228
Mortgage banking income....................................................... 133 128
Securities gains, net......................................................... 105 2
Other income.................................................................. 67 75
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Total non-interest income................................................... 1,853 1,462
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Non-Interest Expense:
Salaries...................................................................... 1,768 1,721
Pension and other employee benefits........................................... 422 448
Occupancy and equipment....................................................... 617 641
Core deposit intangible amortization ......................................... 112 112
Other expenses................................................................ 882 887
-------- -------
Total non-interest expense.................................................. 3,801 3,809
-------- -------
Income Before Taxes............................................................. 3,453 3,296
Income Tax Provision............................................................ 983 962
-------- -------
Net Income......................................................................$ 2,470 $ 2,334
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Net Income Per Common Share:
Basic.........................................................................$ .44 $ .41
Diluted.......................................................................$ .43 $ .40
Financial Highlights
American National Bankshares Inc. and Subsidiary
(Dollars in thousands, except per share data)
Three Months Ended
March 31
------------------------
2004 2003 Change
----------- ----------- --------
EARNINGS
Interest income $ 7,581 $ 8,402 (9.8)%
Interest expense 1,965 2,519 (22.0)
Net interest income 5,616 5,883 (4.5)
Provision for loan losses 215 240 (10.4)
Noninterest income 1,853 1,462 26.7
Noninterest expense 3,801 3,809 (.2)
Income taxes 983 962 2.2
Net income 2,470 2,334 5.8
PER COMMON SHARE
Earnings per share - basic $ .44 $ .41 7.3 %
Earnings per share - diluted .43 .40 7.5
Cash dividends paid .19 .18 5.6
Book value 12.97 12.34 5.1
Closing market price 24.41 24.63 (.9)
FINANCIAL RATIOS
Return on average assets 1.54 % 1.55 % (1)bp
Return on average shareholders' equity 13.62 13.23 39
Average equity to average assets 11.32 11.69 (37)
Net interest margin (FTE) 3.84 4.24 (40)
Efficiency ratio 49.76 50.29 (53)
PERIOD END BALANCES
Securities $ 207,163 $ 164,553 25.9 %
Loans held for sale 1,753 1,576 11.2
Loans - net of unearned income 404,988 419,752 (3.5)
Assets 645,898 614,177 5.2
Total deposits 502,487 483,077 4.0
Repurchase agreement funding 46,040 34,803 32.3
FHLB borrowings 21,000 21,500 (2.3)
Shareholders' equity 73,088 70,917 3.1
AVERAGE BALANCES
Loans - net of unearned income $ 407,911 $ 410,249 (.6)%
Interest-earning assets 614,311 577,215 6.4
Assets 640,869 603,670 6.2
Interest-bearing deposits 423,615 412,716 2.6
Repurchase agreement funding 49,277 34,615 42.4
FHLB borrowings 21,416 21,747 (1.5)
Shareholders' equity 72,531 70,576 2.8
CAPITAL
Average shares outstanding - basic 5,648,278 5,756,094 (1.9)%
Average shares outstanding - diluted 5,705,869 5,817,153 (1.9)
Shares repurchased 32,200 35,000
Average price of shares repurchased $ 25.23 $ 25.40
ALLOWANCE FOR LOAN LOSSES
Beginning balance $ 5,292 $ 5,622 (5.9)%
Provision for loan losses 215 240 (10.4)
Charge-offs (223) (164) 36.0
Recoveries 39 73 (46.6)
----------- ----------- ------
Ending balance $ 5,323 $ 5,771 (7.8)%
Financial Highlights
American National Bankshares Inc. and Subsidiary
(Dollars in thousands, except per share data)
Three Months Ended
March 31
------------------------
2004 2003 Change
----------- ----------- ---------
COMPOSITION OF RISK ASSETS
Nonperforming loans:
90 days past due $ 15 $ 214 (93.0)%
Nonaccrual 3,828 448 754.5
OREO 360 30 1,100.0
----------- ----------- ---------
Nonperforming assets $ 4,203 $ 692 507.4 %
ASSET QUALITY RATIOS **
Nonperforming loans to total loans .95 % .16 % 79 bp
Allowance for loan losses to total loans 1.31 1.37 (6)
Allowance for loan losses
to nonperforming loans 1.39 X 8.72 X (733)
Notes:
bp - Change is measured as difference in basis points
** - Balance sheet amounts used in calculations are based on period end balances