American National Bankshares Inc. (“American National”)
(NASDAQ: AMNB), parent company of American National Bank and
Trust Company, today announced a net loss of $1,230,000 for the
second quarter 2019 compared to net income of $5,980,000 for the
second quarter of 2018, a $7,210,000 or 120.6% decrease. Income for
the second quarter of 2019 was impacted adversely by $10,871,000 in
one-time merger expense related to the HomeTown acquisition.
Basic and diluted net income per common share was a loss of
$0.11 for the 2019 quarter compared to net income per common share
of $0.69 for the 2018 quarter. Net loss for the second quarter of
2019 produced annualized returns on average assets of (0.20%), on
average equity of (1.60%), and on average tangible equity of
(1.62%).
Net income for the first six months of 2019 was $4,773,000
compared to $11,792,000 for the comparable period of 2018, a
$7,019,000 or 59.5% decrease. Basic and diluted net income per
common share was $0.48 for the 2019 period compared to $1.36 for
the 2018 period.
Income for the six-month period of 2019 was impacted adversely
by $11,322,000 in one-time merger expense related to the HomeTown
acquisition.
HomeTown Bankshares Corporation MergerOn April 1, 2019, American
National completed its merger with Roanoke, Virginia based HomeTown
Bankshares Corporation (“HomeTown”). The merger, valued at
approximately $83.3 million, significantly expanded American
National’s operations in Roanoke and added a new presence in the
New River Valley.
DividendsAmerican National also announced that its Board of
Directors has declared a quarterly cash dividend of $0.27 per
common share, payable September 20, 2019, to shareholders of record
September 6, 2019. This represents an 8% increase in the cash
dividend from the current $0.25 per common share per quarter.
American National considers the payment of appropriate dividends
to be a vital part of its capital planning and management program.
The Company adheres to a dividend policy based on a review of
earnings, growth, capital and such other factors that the Board of
Directors considers relevant to the dividend decision process.
Financial Performance and OverviewJeffrey V. Haley, President
and Chief Executive Officer, said, “The merger with HomeTown
Bankshares brought us some of the best community bankers in the
Roanoke market, $444 million in loans, and $484 million in
deposits. American National is now the largest community bank in
the Roanoke market.
“Income for the 2019 quarter was a loss of $1.2 million. On a
pretax basis the loss for the 2019 quarter was $1.6 million. This
was directly related to the $10.9 million in nonrecurring merger
related expense.
“Net interest income for the 2019 quarter compared to the 2018
quarter significantly increased, it was up $6.2 million or
41.9%.
“This improvement in net interest income was primarily related
to an increase in the average balance of loans for the 2019 quarter
compared to the 2018 quarter. Loan average balances for the 2019
quarter were up $494.7 million or 37.4% over the 2018 quarter. Loan
yields for the 2019 quarter were 51 basis points higher than the
2018 quarter. Of the increase in balances, $444.3 million
represents loans acquired in the HomeTown merger and $50.4 million
(3.8%) represents growth in the other parts of our franchise.
“End of period loan balance for June 30, 2019, compared to
December 31, 2018, increased $478.8 million. Of this increase,
$444.3 million was related to the HomeTown merger and $34.5 million
(2.5%) represents growth throughout the rest of our franchise.
“Average interest bearing deposits for the 2019 quarter compared
to the 2018 quarter also increased substantially, up $317.9 million
or 27.7% with a 30 basis point higher cost. This reflects increased
competition for deposits, especially evident in our new HomeTown
market. Of the increase, $364.1 million represents deposits
acquired in the HomeTown merger. Legacy deposits were down slightly
for the same period.
“Average noninterest bearing deposits for the 2019 quarter
compared to the 2018 quarter also increased substantially; they
were up $140.3 million or 33.4%. Of this increase, $119.5 million
represents deposits acquired in the HomeTown merger; the remaining
$20.8 million (5.0%) represents growth in other parts of our
franchise.
“The market for loans and deposits continues to be very
competitive. Market competition drives yields on loans down and
rates on deposits up. This puts continuing pressure on our net
interest margin. Our challenge is to maintain quality growth in
assets and deposits and at the same time protect our net interest
margin. Our margin for the 2019 quarter was 3.82%, a 32 basis point
increase from the 2018 quarter.”
Haley concluded, “We are optimistic about the future of
community banking, but realistic enough to know that it is not a
given, it must be earned. For American National that earning is
what we strive for every day – through continued asset quality,
continued relevance to existing and new customers with modern
banking products and services, continued organic and acquisition
growth, and continued superior returns to our
shareholders.”
CapitalAmerican National’s capital ratios remain strong and
exceed all regulatory requirements.
For the quarter ended June 30, 2019, average shareholders’
equity was 12.62% of average assets, compared to 11.62% for the
quarter ended June 30, 2018.
Book value per common share was $28.00 at June 30, 2019,
compared to $24.50 at June 30, 2018.
Tangible book value per common share was $19.63 at June 30,
2019, compared to $19.34 at June 30, 2018.
Credit Quality MeasurementsNonperforming assets represented
0.14% of total assets at June 30, 2019, compared to 0.18% at June
30, 2018.
Annualized net charge offs to average loans were zero basis
points (0.00%) for the second quarter of 2019 compared to one basis
point (0.01%) for the same quarter in 2018.
Other real estate owned was $1,433,000 compared to $1,124,000 at
June 30, 2018, an increase of $309,000 or 27.5%.
Merger Related Financial ImpactThe merger
accounting adjustments related to our acquisitions have had and
continue to have a positive impact on net interest income and
income before income taxes. The impact of these adjustments is
summarized below (dollars in thousands):
|
|
|
|
|
|
|
For the quarter ended June 30, |
|
|
2019 |
|
|
2018 |
|
|
Net Interest Income |
|
$ |
1,118 |
|
$ |
377 |
|
|
Income Before Income
Taxes |
|
$ |
660 |
|
$ |
300 |
|
|
|
|
|
|
|
|
For the
six months ended June 30, |
|
|
2019 |
|
|
2018 |
|
|
Net Interest Income |
|
$ |
1,373 |
|
$ |
804 |
|
|
Income Before Income
Taxes |
|
$ |
860 |
|
$ |
650 |
|
In the table above, the impact for the quarter ended June 30,
2019 related to the HomeTown merger on net interest income was
$884,000 and on income before taxes was $481,000.
The second quarter of 2019 includes $225,000 in cash basis
accretion income related to the early payoff of several acquired
loans, compared to $231,000 for the comparable quarter of 2018.
For the six month period ended June 30, 2019, cash basis
accretion income was $396,000, compared to $486,000 for the same
period in 2018.
Net Interest IncomeNet interest income before the provision for
loan losses increased to $20,989,000 in the second quarter of 2019
from $14,788,000 in the second quarter of 2018, an increase of
$6,201,000 or 41.9%.
For the 2019 quarter, the net interest margin was 3.82% compared
to 3.50% for the same quarter in 2018, an increase of 32 basis
points.
The major drivers affecting margin between the 2019 quarter and
the 2018 quarter were:
- Positively – a $504.1 million increase (29.5%) in average
earning assets, mostly loans, at a 56 basis point higher
yield.
- Positively – a $140.3 million increase (33.4%) in average
noninterest bearing deposits.
- Negatively – a $317.9 million increase (27.7%) in the average
balance of interest bearing deposits, at a 30 basis point higher
cost.
Most of these increases were directly related to the HomeTown
merger.
Provision for Loan Losses and Allowance for Loan LossesProvision
expense for the second quarter of 2019 was a recovery of $10,000
compared to a recovery of $30,000 for the second quarter of 2018, a
decrease of $20,000. The provision for both quarters 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
0.70% at June 30, 2019 compared to 1.01% at June 30, 2018. The
primary driver for the decrease in this ratio was the HomeTown
merger which increased loan balances $444.3 million. In conformity
with generally accepted accounting standards, these loans were
accounted for at fair value at the merger date and were recorded at
the total outstanding principal balance of the loans net of a $10.7
million credit mark (included in the gross loan balances as a
separate allowance) and a $4.0 million liquidity mark.
However, the need for additional loan loss provision for the
remainder of the loan portfolio 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 $3,682,000 in the
second quarter of 2019, compared with $3,563,000 in the second
quarter of 2018, an increase of $119,000 or 3.3%.
Service charge income increased $132,000 or 22.3%, mainly
related to the HomeTown merger.
Other fees and commissions increased $336,000 or 49.5%. This
revenue category was up in virtually all of our markets, but the
largest driver was check card income in our new Roanoke and New
River region.
Mortgage banking income increased $95,000 or 19.3% based on
increased volume related to some dips in mortgage interest
rates.
Securities gains decreased $142,000 or 49.1%, related to the
sale of most of our equity investments in 2019, thus reducing the
accounting volatility in this revenue category.
Noninterest ExpenseNoninterest expense totaled $26,316,000 in
the second quarter of 2019, compared to $11,002,000 in the second
quarter of 2018, an increase of $15,314,000 or 139.2%.
The major factor causing the increase in noninterest expense was
merger related expense. These are related to the HomeTown merger,
are nonrecurring in nature, and totaled $10,871,000 during the
second quarter of 2019. The largest component of merger expenses
was $8,900,000 in costs related to data processing contract
termination and conversion.
The second major factor was salaries and benefits. Salaries
increased $1,953,000 or 38.3% and benefits increased $314,000 or
28.3%. Most of this increase was related to a 48 full-time
equivalent increase in staff compared to the prior year
quarter.
The effective income tax rate for the 2019 quarter was a benefit
of 24.8%, compared to provision of 19.0% for the same quarter of
2018. The 2019 quarter was impacted by $10,871,000 in merger
related expense, which generated a $1,635,000 pretax loss.
About American NationalAmerican National is a multi-state bank
holding company with total assets of approximately $2.4 billion.
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 28 banking offices. American National Bank also
manages an additional $862 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.
|
American National Bankshares
Inc. |
Consolidated Balance
Sheets |
(Dollars in thousands, except per share data) |
Unaudited |
|
|
|
|
|
|
|
June 30 |
|
|
|
2019 |
|
|
|
2018 |
|
Assets |
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
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 |
|
0.00 |
|
|
|
0.00 |
|
|
|
0.01 |
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
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) |
|
(1.60 |
)% |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
Contact: |
William W. Traynham, Chief Financial Officer |
|
434-773-2242 |
|
traynhamw@amnb.com |
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