American National Bankshares Inc. (“American National”)
(Nasdaq: AMNB), parent company of American National Bank and
Trust Company (“American National Bank”), today announced net
income for the first quarter of 2019 of $6,003,000 compared to
$5,812,000 for the first quarter of 2018, a $191,000 or 3.3%
increase. Basic and diluted net income per common share was $0.69
for the first quarter of 2019 compared to $0.67 for the 2018
quarter. Net income for the first quarter of 2019 produced a return
on average assets of 1.29%, a return on average equity of 10.69%,
and a return on average tangible equity of 13.44% (non-GAAP).
On April 1, 2019, American National completed its merger with
Roanoke, Virginia based HomeTown Bankshares Corporation
(“HomeTown”). The merger, valued at approximately $84.2 million,
significantly expanded American National’s operations in Roanoke
and added a new presence in the New River Valley.
Financial Performance and OverviewJeffrey V. Haley, President
and Chief Executive Officer, reported, “We were pleased with our
first quarter of 2019. Earnings were $6.0 million compared to $5.8
million for the comparable quarter of 2018, a 3.3% increase. The
major driver of the increase was increased net interest income,
resulting from higher average yields and higher loan volume. The
increase was offset by $451,000 in one-time merger related expenses
related to the HomeTown acquisition.
“The balance sheet showed modest growth over the past year.
Average loan volume for the first quarter of 2019 was up $14.3
million or 1.1% compared to the 2018 quarter. First quarter of 2019
compared to first quarter of 2018, loans were up $38.8 million or
2.9%. We have seen loan growth in most of our markets, but it has
been offset by payoffs and some slowing of demand for credit.
“Average interest bearing deposits for the 2019 quarter were
$25.5 million or 2.2% less than the comparable quarter of 2018.
First quarter of 2019 compared to first quarter of 2018, total
deposits are virtually unchanged. However, we are very pleased at
the $25.4 million (6.3%) growth in noninterest bearing demand
deposits over the past year.
“In this uncertain interest rate environment, our continuing
challenge is to maintain quality growth in assets and deposits and,
at the same time, maintain and improve our net interest margin. Our
net interest margin for the 2019 quarter was 3.50%, a four basis
point increase from the 2018 quarter.”
Haley concluded, “We’re very excited about 2019. We had a good
first quarter. We consummated the merger with HomeTown on April 1.
We are diligently working toward a systems conversion in late April
so the two banks will be completely integrated. We believe this
will lay the groundwork for increased growth and earnings for
American National in 2019 and beyond.”
CapitalAmerican National’s capital ratios remain strong and
exceed all regulatory requirements.
Average shareholders’ equity was 12.06% of average assets for
the quarter ended March 31, 2019, compared to 11.52% for the
quarter ended March 31, 2018.
Book value per common share was $26.21 at March 31, 2019,
compared to $24.19 at March 31, 2018.
Tangible book value per common share was $21.10 (non-GAAP) at
March 31, 2019, compared to $19.00 (non-GAAP) at March 31,
2018.
Credit Quality MeasurementsNon-performing assets (composed of
$197,000 of 90 day past due loans, $1,111,000 of non-accrual loans
and $646,000 of other real estate owned) represented 0.10% of total
assets at March 31, 2019, compared to 0.20% at March 31, 2018.
Annualized net charge-offs to average loans were zero basis
points (0.00%) for the 2019 first quarter, unchanged from the same
quarter in 2018.
Other real estate owned was $646,000 at March 31, 2019, compared
to $1,716,000 at March 31, 2018, a decrease of $1,070,000 or
62.4%.
Acquisition Related Financial ImpactThe
acquisition accounting adjustments related to our 2011 and 2015
acquisitions have had and continue to have a positive impact on net
interest income and income before income tax. The impact of these
adjustments is summarized below (dollars in thousands):
For the
quarter ended March 31, |
|
2019 |
|
2018 |
Net Interest Income |
|
$ |
255 |
|
$ |
427 |
Income Before Income
Taxes |
|
$ |
200 |
|
$ |
350 |
|
|
|
|
|
The first quarter of 2019 includes $217,000 in cash basis
accretion income related to the early payoff of several acquired
loans, compared to $255,000 for the comparable quarter of 2018.
The positive financial impact of these merger related accounting
adjustments will continue to decline in upcoming quarters. However,
starting in the second quarter of 2019, American National
anticipates a significant positive impact from merger related
accounting adjustments associated with the acquisition of
HomeTown.
Net Interest IncomeNet interest income before the provision for
loan losses increased to $15,068,000 in the first quarter of 2019
from $14,543,000 in the first quarter of 2018, an increase of
$525,000 or 3.6%.
For the 2019 quarter, the net interest margin was 3.50% compared
to 3.46% for the same quarter in 2018, an increase of four basis
points.
The major drivers affecting margin were:
- Positively – a $38.4 million (2.3%) increase in average earning
assets, at a 23 basis point higher yield.
- Positively – a $19.8 million (4.9%) increase in average
noninterest bearing deposits.
- Negatively – a $25.5 million (2.2%) decrease in the average
balance of interest bearing deposits, at a 25 basis point higher
cost.
Provision for Loan Losses and Allowance for Loan LossesProvision
expense for the first quarter of 2019 was $16,000 compared to a
recovery of ($44,000) for the first quarter of 2018, an increase of
$60,000. The $16,000 provision related to adjustments on the
specific reserves for the impaired loan loss allowance.
The allowance for loan losses as a percentage of total loans was
0.94% at March 31, 2019 compared to 1.03% at March 31, 2018. There
was a modest increase in the loans outstanding in the first quarter
of 2019; loans were up from year-end $2.6 million or 0.2%. However,
the need for additional loan loss provision was mitigated by
continued high asset quality, low charge offs, and improvement in
various qualitative factors, notably economic, political and
regulatory, used in the determination of the allowance.
Noninterest IncomeNoninterest income totaled $3,451,000 in the
first quarter of 2019, compared with $3,333,000 in the first
quarter of 2018, an increase of $118,000 or 3.5%.
Mortgage banking income decreased $44,000 (9.8%) compared to the
first quarter of 2018.
Securities gains increased $202,000 (166.9%) compared to the
first quarter of 2018. Gains in the 2019 quarter were almost
entirely related to unrealized changes in the market value of
equity securities held by the company.
Noninterest ExpenseNoninterest expense totaled $10,929,000 in the
first quarter of 2019, compared to $10,702,000 in the first quarter
of 2018, an increase of $227,000 or 2.1%.
The major factor affecting expense was salaries, which decreased
$333,000 or 6.7%, largely related to a revised accrual of estimated
employee benefits during the prior quarter. Total full-time
equivalent employees were 299 at the end of the first quarter of
2019, down from 326 for the first quarter of 2018. The reduction
was the result of a combination of retirements and delayed hiring
decisions, in anticipation of the pending HomeTown merger.
Merger related expenses, which are related to the HomeTown
acquisition and are nonrecurring in nature, totaled $451,000 during
the first quarter of 2019. Management anticipates significant
additional merger related expenses in the second quarter, mostly
related to data processing contract termination and conversion
related expense.
The effective income tax rate for the 2019 quarter was 20.7%,
compared to 19.5% for the same quarter of 2018.
About American NationalAmerican National is a multi-state bank
holding company with total assets of approximately $2.5 billion
following the acquisition of HomeTown, which was effective April 1,
2019. Headquartered in Danville, Virginia, American National is the
parent company of American National Bank and Trust Company.
American National Bank is a community bank serving Virginia and
North Carolina with 30 banking offices. American National Bank also
manages an additional $836 million of trust, investment and
brokerage assets in its Trust and Investment Services Division.
Additional information about American National and American
National Bank is available on American National Bank's website
at www.amnb.com.
Non-GAAP Financial MeasuresThis release contains financial
information determined by methods other than in accordance with
generally accepted accounting principles (“GAAP”). American
National’s management uses these non-GAAP financial measures in its
analysis of American National’s performance. These measures
typically adjust GAAP performance measures to exclude the effects
of the amortization of intangibles and include the tax benefit
associated with revenue items that are tax-exempt, as well as
adjust income available to common shareholders for certain
significant activities or transactions that are infrequent in
nature. Management believes presentations of these non-GAAP
financial measures provide useful supplemental information that is
essential to a proper understanding of the operating results of
American National’s core businesses. These non-GAAP disclosures
should not be viewed as a substitute for operating results
determined in accordance with GAAP, nor are they necessarily
comparable to non-GAAP performance measures that may be presented
by other companies. For a reconciliation of non-GAAP financial
measures, see “Reconciliation of Non-GAAP Financial Measures” at
the end of this release.
Forward-Looking StatementsStatements made in this release, other
than those concerning historical financial information, may be
considered forward-looking statements, which speak only as of the
date of this release and are based on current expectations and
involve a number of assumptions. American National intends such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and is including this
statement for purposes of these safe harbor provisions. American
National’s ability to predict results, or the actual effect of
future plans or strategies, is inherently uncertain. Factors that
could have a material effect on the operations and future prospects
of American National include but are not limited to: (1) expected
revenue synergies and cost savings from the recently completed
merger with HomeTown may not be fully realized or realized within
the expected timeframe; (2) the businesses of American
National and/or HomeTown may not be integrated successfully or such
integration may be more difficult, time-consuming or costly than
expected; (3) revenues following the merger may be lower than
expected; (4) customer and employee relationships and business
operations may be disrupted by the merger; (5) changes in
interest rates, general economic conditions, legislation and
regulation, and monetary and fiscal policies of the U.S.
government, including policies of the U.S. Treasury, Office of the
Comptroller of the Currency and the Board of Governors of the
Federal Reserve System; (6) the quality and composition of the loan
and securities portfolios, demand for loan products, deposit flows,
competition, and demand for financial services in American
National’s market areas; (7) the implementation of new
technologies, and the ability to develop and maintain secure and
reliable electronic systems; (8) accounting principles, policies,
and guidelines; and (9) other risk factors detailed from time
to time in filings made by American National with the Securities
and Exchange Commission. American National undertakes no obligation
to update or clarify these forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact: |
|
William W. Traynham, Chief Financial
Officer434-773-2242traynhamw@amnb.com |
|
|
|
American National
Bankshares Inc. |
Consolidated Balance
Sheets |
(Dollars in thousands, except per share
data) |
Unaudited |
|
|
|
|
|
March 31 |
|
2019 |
|
2018 |
Assets |
|
|
|
Cash and due from
banks |
$ |
28,912 |
|
|
$ |
18,772 |
|
Interest-bearing deposits in other banks |
|
41,949 |
|
|
|
57,881 |
|
|
|
|
|
Equity
securities, at fair value |
|
2,069 |
|
|
|
2,320 |
|
Securities available for sale, at fair value |
|
324,289 |
|
|
|
310,348 |
|
Restricted stock, at cost |
|
5,299 |
|
|
|
5,221 |
|
Loans
held for sale |
|
1,252 |
|
|
|
1,792 |
|
|
|
|
|
Loans |
|
1,360,063 |
|
|
|
1,321,221 |
|
Less
allowance for loan losses |
|
(12,806 |
) |
|
|
(13,575 |
) |
Net
Loans |
|
1,347,257 |
|
|
|
1,307,646 |
|
|
|
|
|
Premises
and equipment, net |
|
30,900 |
|
|
|
25,759 |
|
Other
real estate owned, net |
|
646 |
|
|
|
1,716 |
|
Goodwill |
|
43,872 |
|
|
|
43,872 |
|
Core
deposit intangibles, net |
|
871 |
|
|
|
1,114 |
|
Bank
owned life insurance |
|
19,047 |
|
|
|
18,566 |
|
Accrued
interest receivable and other assets |
|
22,041 |
|
|
|
22,567 |
|
|
|
|
|
Total
assets |
$ |
1,868,404 |
|
|
$ |
1,817,574 |
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
Demand
deposits -- noninterest-bearing |
$ |
425,579 |
|
|
$ |
400,225 |
|
Demand
deposits -- interest-bearing |
|
242,802 |
|
|
|
233,973 |
|
Money
market deposits |
|
379,668 |
|
|
|
409,290 |
|
Savings
deposits |
|
135,289 |
|
|
|
134,171 |
|
Time
deposits |
|
376,452 |
|
|
|
381,592 |
|
Total
deposits |
|
1,559,790 |
|
|
|
1,559,251 |
|
|
|
|
|
Short-term borrowings: |
|
|
|
Customer
repurchase agreements |
|
35,945 |
|
|
|
10,466 |
|
Long-term
borrowings |
|
4,238 |
|
|
|
- |
|
Junior
subordinated debt |
|
27,953 |
|
|
|
27,851 |
|
Accrued
interest payable and other liabilities |
|
11,005 |
|
|
|
10,166 |
|
Total
liabilities |
|
1,638,931 |
|
|
|
1,607,734 |
|
|
|
|
|
Shareholders' equity |
|
|
|
Preferred
stock, $5 par, 2,000,000 shares authorized, none outstanding |
|
- |
|
|
|
- |
|
Common
stock, $1 par, 20,000,000 shares authorized, 8,756,569 shares
outstanding at March 31, 2019 and 8,675,033 shares outstanding at
March 31, 2018 |
|
8,705 |
|
|
|
8,621 |
|
Capital
in excess of par value |
|
78,738 |
|
|
|
76,525 |
|
Retained
earnings |
|
145,351 |
|
|
|
131,299 |
|
Accumulated other comprehensive loss, net |
|
(3,321 |
) |
|
|
(6,605 |
) |
Total
shareholders' equity |
|
229,473 |
|
|
|
209,840 |
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
1,868,404 |
|
|
$ |
1,817,574 |
|
|
|
|
|
American National Bankshares
Inc. |
Consolidated Statements of Income |
(Dollars in thousands, except per share data) |
Unaudited |
|
|
|
|
|
|
Three Months Ended |
|
March 31 |
|
2019 |
|
2018 |
Interest and Dividend
Income: |
|
|
|
|
Interest and fees on
loans |
$ |
15,638 |
|
|
$ |
14,657 |
|
Interest
and dividends on securities: |
|
|
|
|
Taxable |
|
1,821 |
|
|
|
1,324 |
|
Tax-exempt |
|
287 |
|
|
|
419 |
|
Dividends |
|
84 |
|
|
|
80 |
|
Other
interest income |
|
266 |
|
|
|
188 |
|
Total
interest and dividend income |
|
18,096 |
|
|
|
16,668 |
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
Interest
on deposits |
|
2,472 |
|
|
|
1,825 |
|
Interest
on short-term borrowings |
|
172 |
|
|
|
10 |
|
Interest
on junior subordinated debt |
|
384 |
|
|
|
290 |
|
Total
interest expense |
|
3,028 |
|
|
|
2,125 |
|
|
|
|
|
|
Net Interest Income |
|
15,068 |
|
|
|
14,543 |
|
Provision
for (recovery of) loan losses |
|
16 |
|
|
|
(44 |
) |
|
|
|
|
|
Net Interest Income After
Provision for (Recovery of) Loan
Losses |
|
15,052 |
|
|
|
14,587 |
|
|
|
|
|
|
Noninterest Income: |
|
|
|
|
Trust
fees |
|
914 |
|
|
|
929 |
|
Service
charges on deposit accounts |
|
594 |
|
|
|
612 |
|
Other
fees and commissions |
|
708 |
|
|
|
642 |
|
Mortgage
banking income |
|
406 |
|
|
|
450 |
|
Securities gains, net |
|
323 |
|
|
|
121 |
|
Brokerage
fees |
|
147 |
|
|
|
222 |
|
Income
from Small Business Investment Companies |
|
168 |
|
|
|
155 |
|
Other |
|
191 |
|
|
|
202 |
|
Total
noninterest income |
|
3,451 |
|
|
|
3,333 |
|
|
|
|
|
|
Noninterest Expense: |
|
|
|
|
Salaries |
|
4,664 |
|
|
|
4,997 |
|
Employee
benefits |
|
1,230 |
|
|
|
1,175 |
|
Occupancy
and equipment |
|
1,084 |
|
|
|
1,128 |
|
FDIC
assessment |
|
125 |
|
|
|
146 |
|
Bank
franchise tax |
|
290 |
|
|
|
281 |
|
Core
deposit intangible amortization |
|
55 |
|
|
|
77 |
|
Data
processing |
|
532 |
|
|
|
422 |
|
Software |
|
324 |
|
|
|
305 |
|
Other
real estate owned, net |
|
13 |
|
|
|
30 |
|
Merger
related expenses |
|
451 |
|
|
|
- |
|
Other |
|
2,161 |
|
|
|
2,141 |
|
Total
noninterest expense |
|
10,929 |
|
|
|
10,702 |
|
|
|
|
|
|
Income Before Income
Taxes |
|
7,574 |
|
|
|
7,218 |
|
Income Taxes |
|
1,571 |
|
|
|
1,406 |
|
Net Income |
$ |
6,003 |
|
|
$ |
5,812 |
|
|
|
|
|
|
Net Income Per Common
Share: |
|
|
|
|
Basic |
$ |
0.69 |
|
|
$ |
0.67 |
|
Diluted |
$ |
0.69 |
|
|
$ |
0.67 |
|
Weighted Average Common Shares
Outstanding: |
|
|
|
|
Basic |
|
8,745,174 |
|
|
|
8,669,728 |
|
Diluted |
|
8,745,723 |
|
|
|
8,687,351 |
|
|
|
|
|
|
American National Bankshares
Inc.Financial HighlightsUnaudited
(Dollars
in thousands, except per share data) |
|
|
|
|
|
|
1st Qtr |
|
4th Qtr |
|
1st Qtr |
|
2019 |
|
2018 |
|
2018 |
EARNINGS |
|
|
|
|
|
Interest income |
$ |
18,096 |
|
|
$ |
17,891 |
|
|
$ |
16,668 |
|
Interest
expense |
|
3,028 |
|
|
|
2,879 |
|
|
|
2,125 |
|
Net
interest income |
|
15,068 |
|
|
|
15,012 |
|
|
|
14,543 |
|
Provision
for (recovery of) loan losses |
|
16 |
|
|
|
(6 |
) |
|
|
(44 |
) |
Noninterest income |
|
3,451 |
|
|
|
2,998 |
|
|
|
3,333 |
|
Noninterest expense |
|
10,929 |
|
|
|
11,638 |
|
|
|
10,702 |
|
Income
taxes |
|
1,571 |
|
|
|
1,376 |
|
|
|
1,406 |
|
Net
income |
|
6,003 |
|
|
|
5,002 |
|
|
|
5,812 |
|
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
|
Income
per share - basic |
$ |
0.69 |
|
|
$ |
0.57 |
|
|
$ |
0.67 |
|
Income
per share - diluted |
|
0.69 |
|
|
|
0.57 |
|
|
|
0.67 |
|
Cash
dividends paid |
|
0.25 |
|
|
|
0.25 |
|
|
|
0.25 |
|
Book
value per share |
|
26.21 |
|
|
|
25.52 |
|
|
|
24.19 |
|
Book
value per share - tangible (a) |
|
21.10 |
|
|
|
20.38 |
|
|
|
19.00 |
|
Closing
market price |
|
34.92 |
|
|
|
29.31 |
|
|
|
37.60 |
|
|
|
|
|
|
|
FINANCIAL
RATIOS |
|
|
|
|
|
Return on
average assets |
|
1.29 |
% |
|
|
1.08 |
% |
|
|
1.28 |
% |
Return on
average equity |
|
10.69 |
|
|
|
9.16 |
|
|
|
11.10 |
|
Return on
average tangible equity (a) |
|
13.44 |
|
|
|
11.63 |
|
|
|
14.29 |
|
Average
equity to average assets |
|
12.06 |
|
|
|
11.78 |
|
|
|
11.52 |
|
Tangible
equity to tangible assets (a) |
|
10.13 |
|
|
|
9.78 |
|
|
|
9.30 |
|
Net
interest margin, taxable equivalent |
|
3.50 |
|
|
|
3.48 |
|
|
|
3.46 |
|
Efficiency ratio (a) |
|
56.95 |
|
|
|
58.15 |
|
|
|
59.36 |
|
Effective
tax rate |
|
20.74 |
|
|
|
21.57 |
|
|
|
19.48 |
|
|
|
|
|
|
|
PERIOD-END
BALANCES |
|
|
|
|
|
Securities |
$ |
331,657 |
|
|
$ |
339,730 |
|
|
$ |
317,889 |
|
Loans
held for sale |
|
1,252 |
|
|
|
640 |
|
|
|
1,792 |
|
Loans,
net of unearned income |
|
1,360,063 |
|
|
|
1,357,476 |
|
|
|
1,321,221 |
|
Goodwill
and other intangibles |
|
44,743 |
|
|
|
44,798 |
|
|
|
44,986 |
|
Assets |
|
1,868,404 |
|
|
|
1,862,866 |
|
|
|
1,817,574 |
|
Assets -
tangible (a) |
|
1,823,661 |
|
|
|
1,818,068 |
|
|
|
1,772,588 |
|
Deposits |
|
1,559,790 |
|
|
|
1,566,227 |
|
|
|
1,559,251 |
|
Customer
repurchase agreements |
|
35,945 |
|
|
|
35,243 |
|
|
|
10,466 |
|
Long-term
borrowings |
|
32,191 |
|
|
|
27,927 |
|
|
|
27,851 |
|
Shareholders' equity |
|
229,473 |
|
|
|
222,542 |
|
|
|
209,840 |
|
Shareholders' equity - tangible (a) |
|
184,730 |
|
|
|
177,744 |
|
|
|
164,854 |
|
|
|
|
|
|
|
AVERAGE
BALANCES |
|
|
|
|
|
Securities (b) |
$ |
343,834 |
|
|
$ |
332,230 |
|
|
$ |
312,783 |
|
Loans
held for sale |
|
1,830 |
|
|
|
1,201 |
|
|
|
2,037 |
|
Loans,
net of unearned income |
|
1,352,521 |
|
|
|
1,335,469 |
|
|
|
1,338,058 |
|
Interest-earning assets |
|
1,736,887 |
|
|
|
1,736,453 |
|
|
|
1,698,451 |
|
Goodwill
and other intangibles |
|
44,778 |
|
|
|
44,831 |
|
|
|
45,031 |
|
Assets |
|
1,863,212 |
|
|
|
1,854,492 |
|
|
|
1,818,429 |
|
Assets -
tangible (a) |
|
1,818,434 |
|
|
|
1,809,661 |
|
|
|
1,773,398 |
|
Interest-bearing deposits |
|
1,131,604 |
|
|
|
1,116,911 |
|
|
|
1,157,122 |
|
Deposits |
|
1,551,413 |
|
|
|
1,558,864 |
|
|
|
1,557,149 |
|
Customer
repurchase agreements |
|
42,705 |
|
|
|
37,905 |
|
|
|
12,247 |
|
Other
short-term borrowings |
|
61 |
|
|
|
- |
|
|
|
2,183 |
|
Long-term
borrowings |
|
32,197 |
|
|
|
27,914 |
|
|
|
27,836 |
|
Shareholders' equity |
|
224,677 |
|
|
|
218,430 |
|
|
|
209,433 |
|
Shareholders' equity - tangible (a) |
|
179,899 |
|
|
|
173,599 |
|
|
|
164,402 |
|
|
|
|
|
|
|
American
National Bankshares Inc. |
|
|
|
|
|
Financial
Highlights |
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands, except per share data) |
|
|
|
|
|
|
1st Qtr |
|
4th Qtr |
|
1st Qtr |
|
2019 |
|
2018 |
|
2018 |
CAPITAL |
|
|
|
|
|
Weighted
average shares outstanding - basic |
|
8,745,174 |
|
|
|
8,717,572 |
|
|
|
8,669,728 |
|
Weighted
average shares outstanding - diluted |
|
8,745,723 |
|
|
|
8,723,388 |
|
|
|
8,687,351 |
|
|
|
|
|
|
|
ALLOWANCE FOR
LOAN LOSSES |
|
|
|
|
|
Beginning
balance |
$ |
12,805 |
|
|
$ |
13,588 |
|
|
$ |
13,603 |
|
Provision
for (recovery of) loan losses |
|
16 |
|
|
|
(6 |
) |
|
|
(44 |
) |
Charge-offs |
|
(69 |
) |
|
|
(818 |
) |
|
|
(44 |
) |
Recoveries |
|
54 |
|
|
|
41 |
|
|
|
60 |
|
Ending
balance |
$ |
12,806 |
|
|
$ |
12,805 |
|
|
$ |
13,575 |
|
|
|
|
|
|
|
LOANS |
|
|
|
|
|
Construction and land development |
$ |
93,759 |
|
|
$ |
97,240 |
|
|
$ |
93,031 |
|
Commercial real estate |
|
659,133 |
|
|
|
655,800 |
|
|
|
624,164 |
|
Residential real estate |
|
212,665 |
|
|
|
209,438 |
|
|
|
207,256 |
|
Home
equity |
|
99,979 |
|
|
|
103,933 |
|
|
|
108,024 |
|
Commercial and industrial |
|
289,301 |
|
|
|
285,972 |
|
|
|
284,257 |
|
Consumer |
|
5,226 |
|
|
|
5,093 |
|
|
|
4,489 |
|
Total |
$ |
1,360,063 |
|
|
$ |
1,357,476 |
|
|
$ |
1,321,221 |
|
|
|
|
|
|
|
NONPERFORMING
ASSETS AT PERIOD-END |
|
|
|
|
|
Nonperforming loans: |
|
|
|
|
|
90 days
past due and accruing |
$ |
197 |
|
|
$ |
72 |
|
|
$ |
273 |
|
Nonaccrual |
|
1,111 |
|
|
|
1,090 |
|
|
|
1,598 |
|
Other
real estate owned |
|
646 |
|
|
|
869 |
|
|
|
1,716 |
|
Nonperforming assets |
$ |
1,954 |
|
|
$ |
2,031 |
|
|
$ |
3,587 |
|
|
|
|
|
|
|
ASSET QUALITY
RATIOS |
|
|
|
|
|
Allowance
for loan losses to total loans |
|
0.94 |
% |
|
|
0.94 |
% |
|
|
1.03 |
% |
Allowance
for loan losses to nonperforming loans |
|
979.05 |
|
|
|
1,101.98 |
|
|
|
725.55 |
|
Nonperforming assets to total assets |
|
0.10 |
|
|
|
0.11 |
|
|
|
0.20 |
|
Nonperforming loans to total loans |
|
0.10 |
|
|
|
0.09 |
|
|
|
0.14 |
|
Annualized net charge-offs (recoveries) to average loans |
|
0.00 |
|
|
|
0.23 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER
DATA |
|
|
|
|
|
Fiduciary
assets at period-end (c) (d) |
$ |
533,063 |
|
|
$ |
494,034 |
|
|
$ |
509,668 |
|
Retail
brokerage assets at period-end (c) (d) |
$ |
303,045 |
|
|
$ |
274,552 |
|
|
$ |
316,064 |
|
Number
full-time equivalent employees (e) |
|
299 |
|
|
|
305 |
|
|
|
326 |
|
Number of
full service offices |
|
24 |
|
|
|
24 |
|
|
|
26 |
|
Number of
loan production offices |
|
- |
|
|
|
2 |
|
|
|
2 |
|
Number of
ATMs |
|
33 |
|
|
|
33 |
|
|
|
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 March 31, 2019 and
2018 |
(Dollars in thousands) |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
Average Balance |
|
Income/Expense |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
265,578 |
|
$ |
258,552 |
|
$ |
2,891 |
|
$ |
2,444 |
|
4.41 |
% |
3.83 |
% |
Real
estate |
|
1,083,800 |
|
|
1,077,243 |
|
|
12,716 |
|
|
12,189 |
|
4.69 |
|
4.53 |
|
Consumer |
|
4,973 |
|
|
4,300 |
|
|
75 |
|
|
76 |
|
6.12 |
|
7.17 |
|
Total
loans |
|
1,354,351 |
|
|
1,340,095 |
|
|
15,682 |
|
|
14,709 |
|
4.64 |
|
4.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies &
GSEs |
|
139,465 |
|
|
103,199 |
|
|
850 |
|
|
517 |
|
2.44 |
|
2.00 |
|
Mortgage-backed & CMOs |
|
111,701 |
|
|
108,826 |
|
|
693 |
|
|
600 |
|
2.48 |
|
2.21 |
|
State and
municipal |
|
78,597 |
|
|
86,336 |
|
|
538 |
|
|
634 |
|
2.74 |
|
2.94 |
|
Other |
|
14,071 |
|
|
14,422 |
|
|
178 |
|
|
175 |
|
5.06 |
|
4.85 |
|
Total
securities |
|
343,834 |
|
|
312,783 |
|
|
2,259 |
|
|
1,926 |
|
2.63 |
|
2.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in other
banks |
|
38,702 |
|
|
45,573 |
|
|
266 |
|
|
188 |
|
2.79 |
|
1.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
interest-earning assets |
|
1,736,887 |
|
|
1,698,451 |
|
|
18,207 |
|
|
16,823 |
|
4.20 |
|
3.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-earning assets |
|
126,325 |
|
|
119,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
$ |
1,863,212 |
|
$ |
1,818,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
238,430 |
|
$ |
232,383 |
|
|
14 |
|
|
11 |
|
0.02 |
|
0.02 |
|
Money
market |
|
395,704 |
|
|
410,171 |
|
|
1,153 |
|
|
783 |
|
1.18 |
|
0.77 |
|
Savings |
|
134,060 |
|
|
130,708 |
|
|
10 |
|
|
9 |
|
0.03 |
|
0.03 |
|
Time |
|
363,410 |
|
|
383,860 |
|
|
1,295 |
|
|
1,022 |
|
1.45 |
|
1.08 |
|
Total
deposits |
|
1,131,604 |
|
|
1,157,122 |
|
|
2,472 |
|
|
1,825 |
|
0.89 |
|
0.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer repurchase
agreements |
|
42,705 |
|
|
12,247 |
|
|
171 |
|
|
1 |
|
1.62 |
|
0.03 |
|
Other short-term
borrowings |
|
61 |
|
|
2,183 |
|
|
1 |
|
|
9 |
|
6.56 |
|
1.65 |
|
Long-term
borrowings |
|
27,937 |
|
|
27,836 |
|
|
384 |
|
|
290 |
|
5.50 |
|
4.17 |
|
Total
interest-bearing liabilities |
|
1,202,307 |
|
|
1,199,388 |
|
|
3,028 |
|
|
2,125 |
|
1.02 |
|
0.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing
demand deposits |
|
419,809 |
|
|
400,027 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
16,419 |
|
|
9,581 |
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
224,677 |
|
|
209,433 |
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
$ |
1,863,212 |
|
$ |
1,818,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate
spread |
|
|
|
|
|
|
|
|
3.18 |
% |
3.25 |
% |
Net interest
margin |
|
|
|
|
|
|
|
|
3.50 |
% |
3.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income (taxable equivalent basis) |
|
|
|
|
15,179 |
|
|
14,698 |
|
|
|
|
|
Less: Taxable
equivalent adjustment |
|
|
|
|
|
111 |
|
|
155 |
|
|
|
|
|
Net interest
income |
|
|
|
|
$ |
15,068 |
|
$ |
14,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American
National Bankshares Inc. |
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures |
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
(Dollars
in thousands, except per share data) |
|
|
|
|
|
|
1st Qtr |
|
4th Qtr |
|
1st Qtr |
|
2019 |
|
2018 |
|
2018 |
EFFICIENCY
RATIO |
|
|
|
|
|
Noninterest expense |
$ |
10,929 |
|
|
$ |
11,638 |
|
|
$ |
10,702 |
|
Add/subtract: loss/(gain) on sale of OREO |
|
2 |
|
|
|
(11 |
) |
|
|
5 |
|
Subtract:
core deposit intangible amortization |
|
(55 |
) |
|
|
(55 |
) |
|
|
(77 |
) |
Subtract:
merger related expense |
|
(451 |
) |
|
|
(872 |
) |
|
|
- |
|
|
$ |
10,425 |
|
|
$ |
10,700 |
|
|
$ |
10,630 |
|
|
|
|
|
|
|
Net
interest income |
$ |
15,068 |
|
|
$ |
15,012 |
|
|
$ |
14,543 |
|
Tax
equivalent adjustment |
|
111 |
|
|
|
114 |
|
|
|
155 |
|
Noninterest income |
|
3,451 |
|
|
|
2,998 |
|
|
|
3,333 |
|
Add/subtract: (gain)/loss on securities |
|
(323 |
) |
|
|
270 |
|
|
|
(121 |
) |
Add/subtract: (gain)/loss on fixed assets |
|
- |
|
|
|
6 |
|
|
|
(3 |
) |
|
$ |
18,307 |
|
|
$ |
18,400 |
|
|
$ |
17,907 |
|
|
|
|
|
|
|
Efficiency ratio |
|
56.95 |
% |
|
|
58.15 |
% |
|
|
59.36 |
% |
|
|
|
|
|
|
TAX EQUIVALENT
NET INTEREST INCOME |
|
|
|
|
|
Non-GAAP
measures: |
|
|
|
|
|
Interest
income - loans |
$ |
15,682 |
|
|
$ |
15,525 |
|
|
$ |
14,709 |
|
Interest
income - investments and other |
|
2,525 |
|
|
|
2,480 |
|
|
|
2,114 |
|
Interest
expense - deposits |
|
(2,472 |
) |
|
|
(2,340 |
) |
|
|
(1,825 |
) |
Interest
expense - customer repurchase agreements |
|
(171 |
) |
|
|
(145 |
) |
|
|
(1 |
) |
Interest
expense - other short-term borrowings |
|
(1 |
) |
|
|
- |
|
|
|
(9 |
) |
Interest
expense - long-term borrowings |
|
(384 |
) |
|
|
(394 |
) |
|
|
(290 |
) |
Total net
interest income |
$ |
15,179 |
|
|
$ |
15,126 |
|
|
$ |
14,698 |
|
Less
non-GAAP measures: |
|
|
|
|
|
Tax
benefit on nontaxable interest - loans |
|
(44 |
) |
|
|
(44 |
) |
|
|
(52 |
) |
Tax
benefit on nontaxable interest - securities |
|
(67 |
) |
|
|
(70 |
) |
|
|
(103 |
) |
GAAP
measures |
$ |
15,068 |
|
|
$ |
15,012 |
|
|
$ |
14,543 |
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON AVERAGE TANGIBLE EQUITY |
|
|
|
|
|
Return on
average equity (GAAP basis) |
|
10.69 |
% |
|
|
9.16 |
% |
|
|
11.10 |
% |
Impact of
excluding average goodwill and other intangibles |
|
2.75 |
|
|
|
2.47 |
|
|
|
3.19 |
|
Return on
average tangible equity (non-GAAP) |
|
13.44 |
% |
|
|
11.63 |
% |
|
|
14.29 |
% |
|
|
|
|
|
|
TANGIBLE EQUITY TO TANGIBLE ASSETS |
|
|
|
|
|
Equity to
assets ratio (GAAP basis) |
|
12.28 |
% |
|
|
11.95 |
% |
|
|
11.55 |
% |
Impact of
excluding goodwill and other intangibles |
|
2.15 |
|
|
|
2.17 |
|
|
|
2.25 |
|
Tangible
equity to tangible assets ratio (non-GAAP) |
|
10.13 |
% |
|
|
9.78 |
% |
|
|
9.30 |
% |
|
|
|
|
|
|
TANGIBLE BOOK VALUE |
|
|
|
|
|
Book
value per share (GAAP basis) |
$ |
26.21 |
|
|
$ |
25.52 |
|
|
$ |
24.19 |
|
Impact of
excluding goodwill and other intangibles |
|
5.11 |
|
|
|
5.14 |
|
|
|
5.19 |
|
Tangible
book value per share (non-GAAP) |
$ |
21.10 |
|
|
$ |
20.38 |
|
|
$ |
19.00 |
|
|
|
|
|
|
|
American National Banksh... (NASDAQ:AMNB)
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From Apr 2024 to May 2024
American National Banksh... (NASDAQ:AMNB)
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From May 2023 to May 2024