American National Bankshares Inc. (“American National”)
(NASDAQ: AMNB), parent company of American National Bank and
Trust Company, today announced net income of $8,692,000 for the
third quarter of 2019 compared to $5,785,000 for the third quarter
of 2018, a $2,907,000 or 50.3% increase. Basic and diluted
net income per common share was $0.78 for the 2019 quarter compared
to $0.66 for the 2018 quarter. Net income for the third quarter of
2019 produced annualized returns on average assets of 1.43%, on
average equity of 11.04%, and on average tangible equity of 16.31%.
Net income for the first nine months of 2019 was $13,465,000
compared to $17,577,000 for the comparable period of 2018, a
$4,112,000 or 23.4% decrease. Basic and diluted net income per
common share was $1.30 for the 2019 period compared to $2.02 for
the 2018 period. The nine-month period for 2019 was adversely
impacted by $11.3 million in one time, merger related expenses
associated with the HomeTown Bankshares Corporation (“HomeTown”)
acquisition in April 2019.
Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, said,
“Net income for the third quarter of 2019 was $8.7 million. This
was a $2.9 million or 50.3% increase over the comparable quarter of
2018. This increase was primarily related to the April 1, 2019
merger with HomeTown.
“Net interest income for the 2019 quarter compared to the 2018
quarter significantly increased, it was up $5.9 million or
39.8%.
“The improvement in net interest income was related to a higher
average balance of loans for the 2019 quarter compared to the 2018
quarter. Loan average balances for the 2019 quarter were up $491.3
million or 36.9% over the 2018 quarter. Loan yields for the 2019
quarter were 40 basis points higher than the 2018 quarter.
“End of period loan balances for September 30, 2019, compared to
December 31, 2018, increased $447.0 million. Of this increase,
$444.3 million was the result of the HomeTown merger and $2.7
million represents other growth in the franchise.
“September 30, 2019 loan balances compared to June 30, 2019
balances fell $31.8 million (1.7%). These balances were adversely
impacted by unexpected customer pay downs. They resulted from sales
of businesses, debt reduction from cash, movement into the
permanent, non-recourse market, and other drivers. These unexpected
pay downs aggregated roughly $36 million during the 2019
quarter.
“Average interest bearing deposits for the 2019 quarter compared
to the 2018 quarter also increased substantially, up $325.0 million
or 29.0% with a 27 basis point higher cost. This cost increase
reflects increased deposit competition throughout our
franchise.
“End of period interest bearing deposit balances for September
30, 2019, compared to December 31, 2018, increased $307.0 million.
Of this increase, $364.2 million was the result of the HomeTown
merger and $57.2 million represents deposit reduction throughout
the franchise.
“Average noninterest bearing deposits for the 2019 quarter
compared to the 2018 quarter also increased; they were up $144.7
million or 34.1%.
“End of period noninterest bearing deposit balances for
September 30, 2019, compared to December 31, 2018, increased $168.7
million (38.7%). Of this increase, $119.5 million was the result of
the HomeTown merger and $49.2 million represents deposit growth
throughout the remainder of the franchise.”
Haley concluded, “The market is very challenging. We were
dealing with rising interest rates a year ago. We are dealing with
declining interest rates as we approach the end of 2019. This
means continued pressure on our net interest margin. Strategically,
American National will maintain its focus on maintaining high asset
quality, strive to shorten the duration of our time deposits and,
where prudent, extend the duration of our earning assets. One of
the few certainties we have is that economic cycles ebb and flow.
American National has over a century of history and experience
dealing with all sorts of economic environments and we will
continue to do so. By doing so, we will continue to provide our
customers with the best in banking products and services and
produce a strong return for our shareholders.”
CapitalAmerican National’s capital ratios remain strong and exceed
all regulatory requirements.
For the quarter ended September 30, 2019, average shareholders’
equity was 12.98% of average assets, compared to 11.87% for the
quarter ended September 30, 2018.
Book value per common share was $28.54 at September 30, 2019,
compared to $24.79 at September 30, 2018.
Tangible book value per common share was $20.19 at September 30,
2019, compared to $19.65 at September 30, 2018.
Credit Quality MeasurementsNonperforming assets ($1,446,000 of
nonaccrual loans, $874,000 of 90 days past due and accruing loans,
and $1,353,000 of other real estate owned) represented 0.15% of
total assets at September 30, 2019, compared to 0.18% at September
30, 2018.
Annualized net charge-offs to average loans were zero basis
points (0.00%) for the 2019 third quarter compared to a net
recovery of three basis points (0.03%) for the same quarter in
2018.
Other real estate owned was $1,353,000 compared to $916,000 at
September 30, 2018, an increase of $437,000 or 47.7%.
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 September 30, |
|
2019 |
|
2018 |
Net Interest Income |
|
$ |
948 |
|
$ |
198 |
Income Before Income Taxes |
|
$ |
500 |
|
$ |
142 |
|
|
|
|
|
For the nine months ended September 30, |
|
2019 |
|
2018 |
Net Interest Income |
|
$ |
2,321 |
|
$ |
1,002 |
Income Before Income Taxes |
|
$ |
1,360 |
|
$ |
792 |
In the table above, the impact for the quarter ended September
30, 2019 related to the HomeTown merger on net interest income was
$764,000 and on income before taxes was $371,000. The impact
for the nine months ended September 30, 2019 related to the
HomeTown merger on net interest income was $1,648,000 and on income
before taxes was $852,000.
The third quarter of 2019 includes $148,000 in cash basis
accretion income related to the early payoff of several acquired
loans, compared to $59,000 for the comparable quarter of
2018.
For the nine-month period ended September 30, 2019, cash basis
accretion income was $544,000, compared to $545,000 for the same
period in 2018.
Net Interest IncomeNet interest income before the provision for
loan losses increased to $20,622,000 in the third quarter of 2019
from $14,751,000 in the third quarter of 2018, an increase of
$5,871,000 or 39.8%.
For the 2019 quarter, the net interest margin was 3.75% compared
to 3.51% for the same quarter in 2018, an increase of 24 basis
points (0.24%).
The major drivers affecting the net interest margin were:
- Positively – a $514.0 million (30.3%) increase in average
earning assets, mostly loans, at a 44 basis point higher
yield.
- Positively – a $144.7 million (34.1%) increase in average
noninterest bearing demand deposits.
- Negatively – a $325.0 million (29.0%) increase in average
interest bearing deposits at a 27 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 third quarter of 2019 was a negative $12,000
compared to a negative $23,000 for the third quarter of 2018. Both
quarters’ negative provision were related to adjustments on
specific reserves for several acquired impaired loans.
The allowance for loan losses as a percentage of total loans was
0.71% at September 30, 2019 compared to 1.02% at September 30,
2018. The major driver of the change was the HomeTown merger on
April 1, 2019, which resulted in American National acquiring $444.3
million in loans.
Net loans outstanding fell during the third quarter by $31.8
million or 1.7%. This significantly reduced the need for an
increase to the allowance.
Noninterest IncomeNoninterest income totaled $4,171,000 in the
third quarter of 2019, compared with $3,380,000 in the third
quarter of 2018, an increase of $791,000 or 23.4%. The major
driver was other fees and commissions, which increased $347,000 or
52.9%, mostly on the strength of debit card fee revenue, primarily
related to the Hometown acquisition.
Noninterest ExpenseNoninterest expense totaled $13,792,000 in
the third quarter of 2019, compared to $10,904,000 in the third
quarter of 2018, an increase of $2,888,000 or 26.5%. The 2019
quarter was positively impacted by the Small Bank Assessment
Credit, which reduced FDIC insurance expense $330,000. The major
driver of the increase in expense was the merger with HomeTown in
the second quarter of 2019.
About American NationalAmerican National is a multi-state bank
holding company with total assets of approximately $2.5 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 $855 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 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 Officer |
|
434-773-2242 |
|
traynhamw@amnb.com |
American
National Bankshares Inc. |
Consolidated
Balance Sheets |
(Dollars in
thousands, except per share data) |
Unaudited |
|
|
|
|
|
|
|
September 30 |
|
|
|
2019 |
|
|
|
2018 |
|
Assets |
|
|
|
|
Cash and due
from banks |
|
$ |
47,025 |
|
|
$ |
32,688 |
|
Interest-bearing deposits in other banks |
|
|
95,592 |
|
|
|
37,355 |
|
|
|
|
|
|
Equity
securities, at fair value |
|
|
- |
|
|
|
2,087 |
|
Securities
available for sale, at fair value |
|
|
308,490 |
|
|
|
295,777 |
|
Restricted
stock, at cost |
|
|
8,621 |
|
|
|
5,239 |
|
Loans held
for sale |
|
|
5,646 |
|
|
|
1,934 |
|
|
|
|
|
|
Loans |
|
|
1,804,447 |
|
|
|
1,331,153 |
|
Less
allowance for loan losses |
|
|
(12,758 |
) |
|
|
(13,588 |
) |
Net
Loans |
|
|
1,791,689 |
|
|
|
1,317,565 |
|
|
|
|
|
|
Premises and
equipment, net |
|
|
39,261 |
|
|
|
25,690 |
|
Other real
estate owned, net |
|
|
1,353 |
|
|
|
916 |
|
Goodwill |
|
|
84,633 |
|
|
|
43,872 |
|
Core deposit
intangibles, net |
|
|
8,165 |
|
|
|
981 |
|
Bank owned
life insurance |
|
|
27,612 |
|
|
|
18,785 |
|
Accrued
interest receivable and other assets |
|
|
36,442 |
|
|
|
23,602 |
|
|
|
|
|
|
Total
assets |
|
$ |
2,454,529 |
|
|
$ |
1,806,491 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
Demand deposits -- noninterest-bearing |
|
$ |
604,498 |
|
|
$ |
420,486 |
|
Demand deposits -- interest-bearing |
|
|
323,871 |
|
|
|
230,984 |
|
Money
market deposits |
|
|
450,022 |
|
|
|
362,575 |
|
Savings deposits |
|
|
176,803 |
|
|
|
135,702 |
|
Time
deposits |
|
|
486,668 |
|
|
|
373,360 |
|
Total
deposits |
|
|
2,041,862 |
|
|
|
1,523,107 |
|
|
|
|
|
|
Customer repurchase agreements |
|
|
38,924 |
|
|
|
29,104 |
|
Subordinated debt |
|
|
7,521 |
|
|
|
- |
|
Junior subordinated debt |
|
|
28,003 |
|
|
|
27,902 |
|
Accrued interest payable and other liabilities |
|
|
20,973 |
|
|
|
10,312 |
|
Total
liabilities |
|
|
2,137,283 |
|
|
|
1,590,425 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
Preferred stock, $5 par, 2,000,000 shares authorized, |
|
|
|
|
none
outstanding |
|
|
- |
|
|
|
- |
|
Common stock, $1 par, 20,000,000 shares authorized, |
|
|
|
|
11,116,250 shares outstanding at September 30, 2019 and |
|
|
8,714,431 shares outstanding at September 30, 2018 |
|
|
11,063 |
|
|
|
8,661 |
|
Capital in excess of par value |
|
|
159,792 |
|
|
|
77,842 |
|
Retained earnings |
|
|
147,030 |
|
|
|
138,715 |
|
Accumulated other comprehensive loss, net |
|
|
(639 |
) |
|
|
(9,152 |
) |
Total
shareholders' equity |
|
|
317,246 |
|
|
|
216,066 |
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
|
$ |
2,454,529 |
|
|
$ |
1,806,491 |
|
|
|
|
|
|
American
National Bankshares Inc. |
Consolidated
Statements of Income |
(Dollars in
thousands, except per share data) |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Nine Months
Ended |
|
|
September 30 |
|
September 30 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Interest and Dividend Income: |
|
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
22,470 |
|
|
$ |
15,062 |
|
|
$ |
60,737 |
|
|
$ |
44,485 |
|
Interest and dividends on securities: |
|
|
|
|
|
|
|
|
Taxable |
|
|
1,890 |
|
|
|
1,568 |
|
|
|
5,691 |
|
|
|
4,432 |
|
Tax-exempt |
|
|
134 |
|
|
|
362 |
|
|
|
660 |
|
|
|
1,204 |
|
Dividends |
|
|
135 |
|
|
|
82 |
|
|
|
324 |
|
|
|
240 |
|
Other
interest income |
|
|
329 |
|
|
|
143 |
|
|
|
853 |
|
|
|
516 |
|
Total
interest and dividend income |
|
|
24,958 |
|
|
|
17,217 |
|
|
|
68,265 |
|
|
|
50,877 |
|
|
|
|
|
|
|
|
|
|
Interest Expense: |
|
|
|
|
|
|
|
|
Interest on deposits |
|
|
3,655 |
|
|
|
2,048 |
|
|
|
9,647 |
|
|
|
5,746 |
|
Interest on short-term borrowings |
|
|
162 |
|
|
|
29 |
|
|
|
512 |
|
|
|
41 |
|
Interest on long-term borrowings |
|
|
- |
|
|
|
- |
|
|
|
14 |
|
|
|
- |
|
Interest on subordinated debt |
|
|
123 |
|
|
|
- |
|
|
|
245 |
|
|
|
- |
|
Interest on junior subordinated debt |
|
|
396 |
|
|
|
389 |
|
|
|
1,168 |
|
|
|
1,008 |
|
Total
interest expense |
|
|
4,336 |
|
|
|
2,466 |
|
|
|
11,586 |
|
|
|
6,795 |
|
|
|
|
|
|
|
|
|
|
Net
Interest Income |
|
|
20,622 |
|
|
|
14,751 |
|
|
|
56,679 |
|
|
|
44,082 |
|
Recovery of loan losses |
|
|
(12 |
) |
|
|
(23 |
) |
|
|
(6 |
) |
|
|
(97 |
) |
|
|
|
|
|
|
|
|
|
Net
Interest Income After Recovery |
|
|
|
|
|
|
|
|
of Loan Losses |
|
|
20,634 |
|
|
|
14,774 |
|
|
|
56,685 |
|
|
|
44,179 |
|
|
|
|
|
|
|
|
|
|
Noninterest Income: |
|
|
|
|
|
|
|
|
Trust
fees |
|
|
979 |
|
|
|
1,001 |
|
|
|
2,826 |
|
|
|
2,875 |
|
Service charges on deposit accounts |
|
|
783 |
|
|
|
605 |
|
|
|
2,101 |
|
|
|
1,809 |
|
Other
fees and commissions |
|
|
1,003 |
|
|
|
656 |
|
|
|
2,726 |
|
|
|
1,977 |
|
Mortgage banking income |
|
|
710 |
|
|
|
551 |
|
|
|
1,702 |
|
|
|
1,492 |
|
Securities gains (losses), net |
|
|
105 |
|
|
|
(17 |
) |
|
|
575 |
|
|
|
393 |
|
Brokerage fees |
|
|
183 |
|
|
|
172 |
|
|
|
516 |
|
|
|
603 |
|
Income from Small Business Investment Companies |
|
143 |
|
|
|
150 |
|
|
|
174 |
|
|
|
476 |
|
Gains
(losses) on premises and equipment, net |
|
|
(2 |
) |
|
|
63 |
|
|
|
(89 |
) |
|
|
66 |
|
Other |
|
|
267 |
|
|
|
199 |
|
|
|
773 |
|
|
|
585 |
|
Total
noninterest income |
|
|
4,171 |
|
|
|
3,380 |
|
|
|
11,304 |
|
|
|
10,276 |
|
|
|
|
|
|
|
|
|
|
Noninterest Expense: |
|
|
|
|
|
|
|
|
Salaries |
|
|
6,295 |
|
|
|
5,285 |
|
|
|
18,007 |
|
|
|
15,377 |
|
Employee benefits |
|
|
1,367 |
|
|
|
1,036 |
|
|
|
4,022 |
|
|
|
3,322 |
|
Occupancy and equipment |
|
|
1,448 |
|
|
|
1,069 |
|
|
|
3,963 |
|
|
|
3,297 |
|
FDIC
assessment |
|
|
(175 |
) |
|
|
134 |
|
|
|
119 |
|
|
|
412 |
|
Bank
franchise tax |
|
|
411 |
|
|
|
291 |
|
|
|
1,113 |
|
|
|
863 |
|
Core
deposit intangible amortization |
|
|
448 |
|
|
|
56 |
|
|
|
961 |
|
|
|
210 |
|
Data
processing |
|
|
589 |
|
|
|
420 |
|
|
|
1,838 |
|
|
|
1,309 |
|
Software |
|
|
287 |
|
|
|
307 |
|
|
|
932 |
|
|
|
966 |
|
Other
real estate owned, net |
|
|
47 |
|
|
|
46 |
|
|
|
16 |
|
|
|
101 |
|
Merger related expenses |
|
|
- |
|
|
|
- |
|
|
|
11,322 |
|
|
|
- |
|
Other |
|
|
3,075 |
|
|
|
2,260 |
|
|
|
8,744 |
|
|
|
6,751 |
|
Total
noninterest expense |
|
|
13,792 |
|
|
|
10,904 |
|
|
|
51,037 |
|
|
|
32,608 |
|
|
|
|
|
|
|
|
|
|
Income
Before Income Taxes |
|
|
11,013 |
|
|
|
7,250 |
|
|
|
16,952 |
|
|
|
21,847 |
|
Income
Taxes |
|
|
2,321 |
|
|
|
1,465 |
|
|
|
3,487 |
|
|
|
4,270 |
|
Net
Income |
|
$ |
8,692 |
|
|
$ |
5,785 |
|
|
$ |
13,465 |
|
|
$ |
17,577 |
|
|
|
|
|
|
|
|
|
|
Net
Income Per Common Share: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.78 |
|
|
$ |
0.66 |
|
|
$ |
1.30 |
|
|
$ |
2.02 |
|
Diluted |
|
$ |
0.78 |
|
|
$ |
0.66 |
|
|
$ |
1.30 |
|
|
$ |
2.02 |
|
Weighted Average Common Shares Outstanding: |
|
|
|
|
|
|
|
Basic |
|
|
11,127,603 |
|
|
|
8,712,443 |
|
|
|
10,341,919 |
|
|
|
8,691,423 |
|
Diluted |
|
|
11,138,008 |
|
|
|
8,718,918 |
|
|
|
10,351,753 |
|
|
|
8,703,662 |
|
|
|
|
|
|
|
|
|
|
American
National Bankshares Inc. |
Financial
Highlights |
Unaudited |
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data) |
|
3rd
Qtr |
|
2nd Qtr |
|
3rd Qtr |
|
YTD |
|
YTD |
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
EARNINGS |
|
|
|
|
|
|
|
|
|
Interest income |
$ |
24,958 |
|
|
$ |
25,211 |
|
|
$ |
17,217 |
|
|
$ |
68,265 |
|
|
$ |
50,877 |
|
Interest expense |
|
4,336 |
|
|
|
4,222 |
|
|
|
2,466 |
|
|
|
11,586 |
|
|
|
6,795 |
|
Net
interest income |
|
20,622 |
|
|
|
20,989 |
|
|
|
14,751 |
|
|
|
56,679 |
|
|
|
44,082 |
|
Recovery of loan losses |
|
(12 |
) |
|
|
(10 |
) |
|
|
(23 |
) |
|
|
(6 |
) |
|
|
(97 |
) |
Noninterest income |
|
4,171 |
|
|
|
3,682 |
|
|
|
3,380 |
|
|
|
11,304 |
|
|
|
10,276 |
|
Noninterest expense |
|
13,792 |
|
|
|
26,316 |
|
|
|
10,904 |
|
|
|
51,037 |
|
|
|
32,608 |
|
Income taxes |
|
2,321 |
|
|
|
(405 |
) |
|
|
1,465 |
|
|
|
3,487 |
|
|
|
4,270 |
|
Net
income (loss) |
|
8,692 |
|
|
|
(1,230 |
) |
|
|
5,785 |
|
|
|
13,465 |
|
|
|
17,577 |
|
|
|
|
|
|
|
|
|
|
|
PER
COMMON SHARE |
|
|
|
|
|
|
|
|
|
Income (loss) per share - basic |
$ |
0.78 |
|
|
$ |
(0.11 |
) |
|
$ |
0.66 |
|
|
$ |
1.30 |
|
|
$ |
2.02 |
|
Income (loss) per share - diluted |
|
0.78 |
|
|
|
(0.11 |
) |
|
|
0.66 |
|
|
|
1.30 |
|
|
|
2.02 |
|
Cash
dividends paid |
|
0.27 |
|
|
|
0.25 |
|
|
|
0.25 |
|
|
|
0.77 |
|
|
|
0.75 |
|
Book
value per share |
|
28.54 |
|
|
|
28.00 |
|
|
|
24.79 |
|
|
|
28.54 |
|
|
|
24.79 |
|
Book
value per share - tangible (a) |
|
20.19 |
|
|
|
19.63 |
|
|
|
19.65 |
|
|
|
20.19 |
|
|
|
19.65 |
|
Closing market price |
|
35.47 |
|
|
|
38.75 |
|
|
|
39.00 |
|
|
|
35.47 |
|
|
|
39.00 |
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.43 |
% |
|
|
(0.20 |
)% |
|
|
1.28 |
% |
|
|
0.80 |
% |
|
|
1.29 |
% |
Return on average equity |
|
11.04 |
|
|
|
(1.60 |
) |
|
|
10.76 |
|
|
|
6.35 |
|
|
|
11.04 |
|
Return on average tangible equity (a) |
|
16.31 |
|
|
|
(1.62 |
) |
|
|
13.70 |
|
|
|
9.23 |
|
|
|
14.14 |
|
Average equity to average assets |
|
12.98 |
|
|
|
12.62 |
|
|
|
11.87 |
|
|
|
12.60 |
|
|
|
11.67 |
|
Tangible equity to tangible assets (a) |
|
9.50 |
|
|
|
9.41 |
|
|
|
9.72 |
|
|
|
9.50 |
|
|
|
9.72 |
|
Net
interest margin, taxable equivalent |
|
3.75 |
|
|
|
3.82 |
|
|
|
3.51 |
|
|
|
3.70 |
|
|
|
3.49 |
|
Efficiency ratio (a) |
|
53.79 |
|
|
|
60.94 |
|
|
|
59.35 |
|
|
|
57.25 |
|
|
|
59.56 |
|
Effective tax rate |
|
21.08 |
|
|
|
(24.77 |
) |
|
|
20.21 |
|
|
|
20.57 |
|
|
|
19.55 |
|
|
|
|
|
|
|
|
|
|
|
PERIOD-END BALANCES |
|
|
|
|
|
|
|
|
|
Securities |
$ |
317,111 |
|
|
$ |
342,247 |
|
|
$ |
303,103 |
|
|
$ |
317,111 |
|
|
$ |
303,103 |
|
Loans
held for sale |
|
5,646 |
|
|
|
3,165 |
|
|
|
1,934 |
|
|
|
5,646 |
|
|
|
1,934 |
|
Loans, net of unearned income |
|
1,804,447 |
|
|
|
1,836,241 |
|
|
|
1,331,153 |
|
|
|
1,804,447 |
|
|
|
1,331,153 |
|
Goodwill and other intangibles |
|
92,798 |
|
|
|
93,246 |
|
|
|
44,853 |
|
|
|
92,798 |
|
|
|
44,853 |
|
Assets |
|
2,454,529 |
|
|
|
2,418,082 |
|
|
|
1,806,491 |
|
|
|
2,454,529 |
|
|
|
1,806,491 |
|
Assets - tangible (a) |
|
2,361,731 |
|
|
|
2,324,836 |
|
|
|
1,761,638 |
|
|
|
2,361,731 |
|
|
|
1,761,638 |
|
Deposits |
|
2,041,862 |
|
|
|
1,999,097 |
|
|
|
1,523,107 |
|
|
|
2,041,862 |
|
|
|
1,523,107 |
|
Customer repurchase agreements |
|
38,924 |
|
|
|
37,222 |
|
|
|
29,104 |
|
|
|
38,924 |
|
|
|
29,104 |
|
Long-term borrowings |
|
35,524 |
|
|
|
35,504 |
|
|
|
27,902 |
|
|
|
35,524 |
|
|
|
27,902 |
|
Shareholders' equity |
|
317,246 |
|
|
|
311,917 |
|
|
|
216,066 |
|
|
|
317,246 |
|
|
|
216,066 |
|
Shareholders' equity - tangible (a) |
|
224,448 |
|
|
|
218,671 |
|
|
|
171,213 |
|
|
|
224,448 |
|
|
|
171,213 |
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
Securities (b) |
$ |
323,202 |
|
|
$ |
354,506 |
|
|
$ |
335,320 |
|
|
$ |
340,439 |
|
|
$ |
330,561 |
|
Loans
held for sale |
|
3,904 |
|
|
|
2,913 |
|
|
|
3,282 |
|
|
|
2,890 |
|
|
|
2,650 |
|
Loans, net of unearned income |
|
1,817,732 |
|
|
|
1,816,203 |
|
|
|
1,327,060 |
|
|
|
1,663,856 |
|
|
|
1,328,936 |
|
Interest-earning assets |
|
2,207,935 |
|
|
|
2,211,273 |
|
|
|
1,693,912 |
|
|
|
2,054,087 |
|
|
|
1,700,128 |
|
Goodwill and other intangibles |
|
93,077 |
|
|
|
93,075 |
|
|
|
44,887 |
|
|
|
77,154 |
|
|
|
44,958 |
|
Assets |
|
2,426,678 |
|
|
|
2,433,948 |
|
|
|
1,811,631 |
|
|
|
2,243,343 |
|
|
|
1,818,615 |
|
Assets - tangible (a) |
|
2,333,601 |
|
|
|
2,340,873 |
|
|
|
1,766,744 |
|
|
|
2,166,189 |
|
|
|
1,773,657 |
|
Interest-bearing deposits |
|
1,443,947 |
|
|
|
1,463,613 |
|
|
|
1,118,929 |
|
|
|
1,347,532 |
|
|
|
1,140,443 |
|
Deposits |
|
2,012,653 |
|
|
|
2,023,557 |
|
|
|
1,542,945 |
|
|
|
1,864,230 |
|
|
|
1,555,086 |
|
Customer repurchase agreements |
|
39,470 |
|
|
|
35,657 |
|
|
|
11,896 |
|
|
|
39,265 |
|
|
|
11,829 |
|
Other
short-term borrowings |
|
1,986 |
|
|
|
7,627 |
|
|
|
2,176 |
|
|
|
3,502 |
|
|
|
1,536 |
|
Long-term borrowings |
|
35,806 |
|
|
|
36,301 |
|
|
|
27,886 |
|
|
|
33,107 |
|
|
|
27,861 |
|
Shareholders' equity |
|
314,980 |
|
|
|
307,281 |
|
|
|
215,054 |
|
|
|
282,644 |
|
|
|
212,268 |
|
Shareholders' equity - tangible (a) |
|
221,903 |
|
|
|
214,206 |
|
|
|
170,167 |
|
|
|
205,490 |
|
|
|
167,310 |
|
|
|
|
|
|
|
|
|
|
|
American
National Bankshares Inc. |
Financial
Highlights |
Unaudited |
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data) |
|
3rd
Qtr |
|
2nd Qtr |
|
3rd Qtr |
|
YTD |
|
YTD |
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
CAPITAL |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding - basic |
|
11,127,603 |
|
|
|
11,126,800 |
|
|
|
8,712,443 |
|
|
|
10,341,919 |
|
|
|
8,691,423 |
|
Weighted average shares outstanding - diluted |
|
11,138,008 |
|
|
|
11,126,800 |
|
|
|
8,718,918 |
|
|
|
10,351,753 |
|
|
|
8,703,662 |
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR LOAN LOSSES |
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
12,786 |
|
|
$ |
12,806 |
|
|
$ |
13,508 |
|
|
$ |
12,805 |
|
|
$ |
13,603 |
|
Recovery of loan losses |
|
(12 |
) |
|
|
(10 |
) |
|
|
(23 |
) |
|
|
(6 |
) |
|
|
(97 |
) |
Charge-offs |
|
(66 |
) |
|
|
(54 |
) |
|
|
(28 |
) |
|
|
(189 |
) |
|
|
(202 |
) |
Recoveries |
|
50 |
|
|
|
44 |
|
|
|
131 |
|
|
|
148 |
|
|
|
284 |
|
Ending balance |
$ |
12,758 |
|
|
$ |
12,786 |
|
|
$ |
13,588 |
|
|
$ |
12,758 |
|
|
$ |
13,588 |
|
|
|
|
|
|
|
|
|
|
|
LOANS |
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
143,788 |
|
|
$ |
152,876 |
|
|
$ |
99,546 |
|
|
$ |
143,788 |
|
|
$ |
99,546 |
|
Commercial real estate |
|
883,219 |
|
|
|
880,146 |
|
|
|
632,022 |
|
|
|
883,219 |
|
|
|
632,022 |
|
Residential real estate |
|
318,833 |
|
|
|
328,400 |
|
|
|
205,277 |
|
|
|
318,833 |
|
|
|
205,277 |
|
Home
equity |
|
122,074 |
|
|
|
121,905 |
|
|
|
104,873 |
|
|
|
122,074 |
|
|
|
104,873 |
|
Commercial and industrial |
|
324,508 |
|
|
|
340,427 |
|
|
|
284,176 |
|
|
|
324,508 |
|
|
|
284,176 |
|
Consumer |
|
12,025 |
|
|
|
12,487 |
|
|
|
5,259 |
|
|
|
12,025 |
|
|
|
5,259 |
|
Total |
$ |
1,804,447 |
|
|
$ |
1,836,241 |
|
|
$ |
1,331,153 |
|
|
$ |
1,804,447 |
|
|
$ |
1,331,153 |
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING ASSETS AT PERIOD-END |
|
|
|
|
|
|
|
|
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
90
days past due and accruing |
$ |
874 |
|
|
$ |
930 |
|
|
$ |
74 |
|
|
$ |
874 |
|
|
$ |
74 |
|
Nonaccrual |
|
1,446 |
|
|
|
969 |
|
|
|
2,238 |
|
|
|
1,446 |
|
|
|
2,238 |
|
Other
real estate owned |
|
1,353 |
|
|
|
1,433 |
|
|
|
916 |
|
|
|
1,353 |
|
|
|
916 |
|
Nonperforming assets |
$ |
3,673 |
|
|
$ |
3,332 |
|
|
$ |
3,228 |
|
|
$ |
3,673 |
|
|
$ |
3,228 |
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
0.71 |
% |
|
|
0.70 |
% |
|
|
1.02 |
% |
|
|
0.71 |
% |
|
|
1.02 |
% |
Allowance for loan losses to |
|
|
|
|
|
|
|
|
|
nonperforming loans |
|
549.91 |
|
|
|
673.30 |
|
|
|
587.72 |
|
|
|
549.91 |
|
|
|
587.72 |
|
Nonperforming assets to total assets |
|
0.15 |
|
|
|
0.14 |
|
|
|
0.18 |
|
|
|
0.15 |
|
|
|
0.18 |
|
Nonperforming loans to total loans |
|
0.13 |
|
|
|
0.10 |
|
|
|
0.17 |
|
|
|
0.13 |
|
|
|
0.17 |
|
Annualized net charge-offs |
|
|
|
|
|
|
|
|
|
to
average loans |
|
0.00 |
|
|
|
0.00 |
|
|
|
(0.03 |
) |
|
|
0.00 |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA |
|
|
|
|
|
|
|
|
|
Fiduciary assets at period-end (c) (d) |
$ |
546,407 |
|
|
$ |
547,731 |
|
|
$ |
523,754 |
|
|
$ |
546,407 |
|
|
$ |
523,754 |
|
Retail brokerage assets at period-end (c) (d) |
$ |
308,820 |
|
|
$ |
314,051 |
|
|
$ |
333,565 |
|
|
$ |
308,820 |
|
|
$ |
333,565 |
|
Number full-time equivalent employees (e) |
|
365 |
|
|
|
371 |
|
|
|
316 |
|
|
|
365 |
|
|
|
316 |
|
Number of full service offices |
|
28 |
|
|
|
28 |
|
|
|
24 |
|
|
|
28 |
|
|
|
24 |
|
Number of loan production offices |
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
2 |
|
Number of ATM's |
|
40 |
|
|
|
39 |
|
|
|
34 |
|
|
|
40 |
|
|
|
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 September 30, 2019 and 2018 |
(Dollars in
thousands) |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
Average Balance |
|
Income/Expense |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
2018 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
320,802 |
|
$ |
268,296 |
|
$ |
3,820 |
|
$ |
2,715 |
|
|
4.72 |
% |
4.01 |
% |
Real estate |
|
1,489,155 |
|
|
1,057,097 |
|
|
18,487 |
|
|
12,317 |
|
|
4.97 |
|
4.66 |
|
Consumer |
|
11,679 |
|
|
4,949 |
|
|
209 |
|
|
76 |
|
|
7.10 |
|
6.09 |
|
Total loans |
|
1,821,636 |
|
|
1,330,342 |
|
|
22,516 |
|
|
15,108 |
|
|
4.94 |
|
4.54 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies & GSEs |
|
127,956 |
|
|
128,284 |
|
|
767 |
|
|
732 |
|
|
2.40 |
|
2.28 |
|
Mortgage-backed & CMOs |
|
133,121 |
|
|
107,817 |
|
|
851 |
|
|
604 |
|
|
2.56 |
|
2.24 |
|
State and municipal |
|
45,830 |
|
|
84,147 |
|
|
330 |
|
|
583 |
|
|
2.88 |
|
2.77 |
|
Other |
|
16,295 |
|
|
15,072 |
|
|
242 |
|
|
180 |
|
|
5.94 |
|
4.78 |
|
Total securities |
|
323,202 |
|
|
335,320 |
|
|
2,190 |
|
|
2,099 |
|
|
2.71 |
|
2.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in
other banks |
|
63,097 |
|
|
28,250 |
|
|
329 |
|
|
143 |
|
|
2.07 |
|
2.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
|
2,207,935 |
|
|
1,693,912 |
|
|
25,035 |
|
|
17,350 |
|
|
4.53 |
|
4.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-earning
assets |
|
218,743 |
|
|
117,719 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,426,678 |
|
$ |
1,811,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
324,058 |
|
$ |
231,339 |
|
|
119 |
|
|
12 |
|
|
0.15 |
|
0.02 |
|
Money market |
|
453,873 |
|
|
377,074 |
|
|
1,415 |
|
|
839 |
|
|
1.24 |
|
0.88 |
|
Savings |
|
176,673 |
|
|
132,450 |
|
|
94 |
|
|
10 |
|
|
0.21 |
|
0.03 |
|
Time |
|
489,343 |
|
|
378,066 |
|
|
2,027 |
|
|
1,187 |
|
|
1.64 |
|
1.25 |
|
Total deposits |
|
1,443,947 |
|
|
1,118,929 |
|
|
3,655 |
|
|
2,048 |
|
|
1.00 |
|
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
repurchase agreements |
|
39,470 |
|
|
11,896 |
|
|
150 |
|
|
17 |
|
|
1.51 |
|
0.57 |
|
Other
short-term borrowings |
|
1,986 |
|
|
2,176 |
|
|
12 |
|
|
12 |
|
|
2.42 |
|
2.21 |
|
Long-term
borrowings |
|
35,806 |
|
|
27,886 |
|
|
519 |
|
|
389 |
|
|
5.80 |
|
5.58 |
|
Total interest-bearing liabilities |
|
1,521,209 |
|
|
1,160,887 |
|
|
4,336 |
|
|
2,466 |
|
|
1.13 |
|
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
bearing demand deposits |
|
568,706 |
|
|
424,016 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities |
|
21,783 |
|
|
11,674 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
314,980 |
|
|
215,054 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,426,678 |
|
$ |
1,811,631 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate spread |
|
|
|
|
|
|
|
|
3.40 |
% |
3.25 |
% |
Net interest
margin |
|
|
|
|
|
|
|
|
3.75 |
% |
3.51 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (taxable equivalent basis) |
|
|
|
|
20,699 |
|
|
14,884 |
|
|
|
|
|
|
Less: Taxable equivalent adjustment |
|
|
|
|
77 |
|
|
133 |
|
|
|
|
|
|
Net interest
income |
|
|
|
|
$ |
20,622 |
|
$ |
14,751 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest
Income Analysis |
For the Nine Months
Ended September 30, 2019 and 2018 |
(Dollars in
thousands) |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
Average Balance |
|
Income/Expense |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
2019 |
|
2018 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
302,750 |
|
$ |
264,983 |
|
$ |
10,609 |
|
$ |
7,811 |
|
4.69 |
% |
3.94 |
% |
Real estate |
|
1,354,358 |
|
|
1,062,075 |
|
|
49,782 |
|
|
36,594 |
|
4.90 |
|
4.59 |
|
Consumer |
|
9,638 |
|
|
4,528 |
|
|
485 |
|
|
229 |
|
6.73 |
|
6.76 |
|
Total loans |
|
1,666,746 |
|
|
1,331,586 |
|
|
60,876 |
|
|
44,634 |
|
4.87 |
|
4.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies & GSEs |
|
135,937 |
|
|
119,597 |
|
|
2,475 |
|
|
1,956 |
|
2.43 |
|
2.18 |
|
Mortgage-backed & CMOs |
|
124,258 |
|
|
108,473 |
|
|
2,353 |
|
|
1,812 |
|
2.52 |
|
2.23 |
|
State and municipal |
|
64,084 |
|
|
87,365 |
|
|
1,348 |
|
|
1,870 |
|
2.80 |
|
2.85 |
|
Other |
|
16,160 |
|
|
15,126 |
|
|
653 |
|
|
531 |
|
5.39 |
|
4.68 |
|
Total securities |
|
340,439 |
|
|
330,561 |
|
|
6,829 |
|
|
6,169 |
|
2.67 |
|
2.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in
other banks |
|
46,902 |
|
|
37,981 |
|
|
853 |
|
|
516 |
|
2.43 |
|
1.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
|
2,054,087 |
|
|
1,700,128 |
|
|
68,558 |
|
|
51,319 |
|
4.45 |
|
4.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-earning
assets |
|
189,256 |
|
|
118,487 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
2,243,343 |
|
$ |
1,818,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
$ |
299,769 |
|
$ |
236,734 |
|
|
245 |
|
|
36 |
|
0.11 |
|
0.02 |
|
Money market |
|
432,980 |
|
|
394,005 |
|
|
3,962 |
|
|
2,424 |
|
1.22 |
|
0.82 |
|
Savings |
|
163,525 |
|
|
131,789 |
|
|
201 |
|
|
30 |
|
0.16 |
|
0.03 |
|
Time |
|
451,258 |
|
|
377,915 |
|
|
5,239 |
|
|
3,256 |
|
1.55 |
|
1.15 |
|
Total deposits |
|
1,347,532 |
|
|
1,140,443 |
|
|
9,647 |
|
|
5,746 |
|
0.96 |
|
0.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer
repurchase agreements |
|
39,265 |
|
|
11,829 |
|
|
461 |
|
|
19 |
|
1.57 |
|
0.21 |
|
Other
short-term borrowings |
|
3,502 |
|
|
1,536 |
|
|
51 |
|
|
22 |
|
1.94 |
|
1.91 |
|
Long-term
borrowings |
|
33,107 |
|
|
27,861 |
|
|
1,427 |
|
|
1,008 |
|
5.75 |
|
4.82 |
|
Total interest-bearing liabilities |
|
1,423,406 |
|
|
1,181,669 |
|
|
11,586 |
|
|
6,795 |
|
1.09 |
|
0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing demand deposits |
|
516,698 |
|
|
414,643 |
|
|
|
|
|
|
|
|
|
Other
liabilities |
|
20,595 |
|
|
10,035 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
282,644 |
|
|
212,268 |
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
$ |
2,243,343 |
|
$ |
1,818,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate spread |
|
|
|
|
|
|
|
|
3.36 |
% |
3.26 |
% |
Net interest
margin |
|
|
|
|
|
|
|
|
3.70 |
% |
3.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (taxable equivalent basis) |
|
|
|
|
|
|
56,972 |
|
|
44,524 |
|
|
|
|
|
Less:
Taxable equivalent adjustment |
|
|
|
|
|
|
293 |
|
|
442 |
|
|
|
|
|
Net interest
income |
|
|
|
|
$ |
56,679 |
|
$ |
44,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American
National Bankshares Inc. |
Reconciliation of Non-GAAP Financial Measures |
Unaudited |
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands, except per share
data) |
|
3rd
Qtr |
|
2nd Qtr |
|
3rd Qtr |
|
YTD |
|
YTD |
|
|
2019 |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
EFFICIENCY RATIO |
|
|
|
|
|
|
|
|
|
Noninterest expense |
$ |
13,792 |
|
|
$ |
26,316 |
|
|
$ |
10,904 |
|
|
$ |
51,037 |
|
|
$ |
32,608 |
|
Add/subtract: loss/(gain) on sale of OREO |
|
(22 |
) |
|
|
76 |
|
|
|
(36 |
) |
|
|
55 |
|
|
|
(33 |
) |
Subtract: core deposit intangible amortization |
|
(448 |
) |
|
|
(458 |
) |
|
|
(56 |
) |
|
|
(961 |
) |
|
|
(210 |
) |
Subtract: merger related expense |
|
- |
|
|
|
(10,871 |
) |
|
|
- |
|
|
|
(11,322 |
) |
|
|
- |
|
|
$ |
13,322 |
|
|
$ |
15,063 |
|
|
$ |
10,812 |
|
|
$ |
38,809 |
|
|
$ |
32,365 |
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
$ |
20,622 |
|
|
$ |
20,989 |
|
|
$ |
14,751 |
|
|
$ |
56,679 |
|
|
$ |
44,082 |
|
Tax
equivalent adjustment |
|
77 |
|
|
|
105 |
|
|
|
133 |
|
|
|
293 |
|
|
|
442 |
|
Noninterest income |
|
4,171 |
|
|
|
3,682 |
|
|
|
3,380 |
|
|
|
11,304 |
|
|
|
10,276 |
|
Add/subtract: (gain)/loss on securities |
|
(105 |
) |
|
|
(147 |
) |
|
|
17 |
|
|
|
(575 |
) |
|
|
(393 |
) |
Add/subtract: (gain)/loss on fixed assets |
|
2 |
|
|
|
87 |
|
|
|
(63 |
) |
|
|
89 |
|
|
|
(66 |
) |
|
$ |
24,767 |
|
|
$ |
24,716 |
|
|
$ |
18,218 |
|
|
$ |
67,790 |
|
|
$ |
54,341 |
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio |
|
53.79 |
% |
|
|
60.94 |
% |
|
|
59.35 |
% |
|
|
57.25 |
% |
|
|
59.56 |
% |
|
|
|
|
|
|
|
|
|
|
TAX EQUIVALENT NET INTEREST INCOME |
|
|
|
|
|
|
|
|
Non-GAAP measures: |
|
|
|
|
|
|
|
|
|
Interest income - loans |
$ |
22,516 |
|
|
$ |
22,678 |
|
|
$ |
15,108 |
|
|
$ |
60,876 |
|
|
$ |
44,634 |
|
Interest income - investments and other |
|
2,519 |
|
|
|
2,638 |
|
|
|
2,242 |
|
|
|
7,682 |
|
|
|
6,685 |
|
Interest expense - deposits |
|
(3,655 |
) |
|
|
(3,519 |
) |
|
|
(2,048 |
) |
|
|
(9,647 |
) |
|
|
(5,746 |
) |
Interest expense - customer repurchase |
|
|
|
|
|
|
|
|
|
agreements |
|
(150 |
) |
|
|
(140 |
) |
|
|
(17 |
) |
|
|
(461 |
) |
|
|
(19 |
) |
Interest expense - other short-term borrowings |
|
(12 |
) |
|
|
(39 |
) |
|
|
(12 |
) |
|
|
(51 |
) |
|
|
(22 |
) |
Interest expense - long-term borrowings |
|
(519 |
) |
|
|
(524 |
) |
|
|
(389 |
) |
|
|
(1,427 |
) |
|
|
(1,008 |
) |
Total
net interest income |
$ |
20,699 |
|
|
$ |
21,094 |
|
|
$ |
14,884 |
|
|
$ |
56,972 |
|
|
$ |
44,524 |
|
Less
non-GAAP measures: |
|
|
|
|
|
|
|
|
|
Tax
benefit on nontaxable interest - loans |
|
(46 |
) |
|
|
(49 |
) |
|
|
(46 |
) |
|
|
(139 |
) |
|
|
(149 |
) |
Tax
benefit on nontaxable interest - securities |
|
(31 |
) |
|
|
(56 |
) |
|
|
(87 |
) |
|
|
(154 |
) |
|
|
(293 |
) |
GAAP
measures |
$ |
20,622 |
|
|
$ |
20,989 |
|
|
$ |
14,751 |
|
|
$ |
56,679 |
|
|
$ |
44,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON AVERAGE TANGIBLE EQUITY |
|
|
|
|
|
|
|
|
Return on average equity (GAAP basis) |
|
11.04 |
% |
|
|
(1.60 |
)% |
|
|
10.76 |
% |
|
|
6.35 |
% |
|
|
11.04 |
% |
Impact of excluding average goodwill |
|
|
|
|
|
|
|
|
|
and
other intangibles |
|
5.27 |
|
|
|
(0.02 |
) |
|
|
2.94 |
|
|
|
2.88 |
|
|
|
3.10 |
|
Return on average tangible equity |
|
|
|
|
|
|
|
|
|
(non-GAAP) |
|
16.31 |
% |
|
|
(1.62 |
)% |
|
|
13.70 |
% |
|
|
9.23 |
% |
|
|
14.14 |
% |
|
|
|
|
|
|
|
|
|
|
TANGIBLE EQUITY TO TANGIBLE ASSETS |
|
|
|
|
|
|
|
|
Equity to assets ratio (GAAP basis) |
|
12.92 |
% |
|
|
12.90 |
% |
|
|
11.96 |
% |
|
|
12.92 |
% |
|
|
11.96 |
% |
Impact of excluding goodwill and |
|
|
|
|
|
|
|
|
|
other
intangibles |
|
3.42 |
|
|
|
3.49 |
|
|
|
2.24 |
|
|
|
3.42 |
|
|
|
2.24 |
|
Tangible equity to tangible assets ratio |
|
|
|
|
|
|
|
|
|
(non-GAAP) |
|
9.50 |
% |
|
|
9.41 |
% |
|
|
9.72 |
% |
|
|
9.50 |
% |
|
|
9.72 |
% |
|
|
|
|
|
|
|
|
|
|
TANGIBLE BOOK VALUE |
|
|
|
|
|
|
|
|
|
Book
value per share (GAAP basis) |
$ |
28.54 |
|
|
$ |
28.00 |
|
|
$ |
24.79 |
|
|
$ |
28.54 |
|
|
$ |
24.79 |
|
Impact of excluding goodwill and |
|
|
|
|
|
|
|
|
|
other
intangibles |
|
8.35 |
|
|
|
8.37 |
|
|
|
5.14 |
|
|
|
8.35 |
|
|
|
5.14 |
|
Tangible book value per share |
|
|
|
|
|
|
|
|
|
(non-GAAP) |
$ |
20.19 |
|
|
$ |
19.63 |
|
|
$ |
19.65 |
|
|
$ |
20.19 |
|
|
$ |
19.65 |
|
|
|
|
|
|
|
|
|
|
|
American National Banksh... (NASDAQ:AMNB)
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