American National Bankshares Inc. Reports Fourth Quarter 2017 Earnings

  • 2017 loan growth $171 million or 14.7%
  • Q4 2017 net income of $2.1 million
  • New tax law negatively impacts earnings with a one-time charge, deferred tax write down of $2.7 million
  • Net interest margin of 3.46% for Q4 2017
  • Average shareholders’ equity for Q4 of $211.9 million is 11.64% of average assets

DANVILLE, Va., Jan. 18, 2018 (GLOBE NEWSWIRE) -- American National Bankshares Inc. (“American National”) (NASDAQ:AMNB), parent company of American National Bank and Trust Company, today announced net income for the fourth quarter of 2017 of $2,120,000 compared to $4,122,000 for the fourth quarter of 2016, a $2,002,000 or 48.6% decrease. Basic and diluted net income per common share was $0.25 and $0.24, respectively for the fourth quarter of 2017 compared to $0.48 for the 2016 quarter. Net income for the fourth quarter of 2017 produced a return on average assets of 0.47%, a return on average equity of 4.00%, and a return on average tangible equity of 5.21%.

Net income for the year ended December 31, 2017 was $15,249,000 compared to $16,301,000 for 2016, a $1,052,000 or 6.5% decrease. Basic and diluted net income per common share was $1.76 for the 2017 period compared to $1.89 for the 2016 period.

Deferred Tax Asset Adjustment

The enactment of the new federal tax law, signed in late December 2017, negatively affected net income for the current quarter and year.

The law provides for the corporate tax rate to be reduced from 35% to 21%. The new tax rates become effective in 2018, but the 2017 enactment requires companies to revalue their deferred tax assets at the new tax rate in 2017. Accordingly, American National recognized a $2.7 million charge ($0.31 per share) to its deferred tax asset and a corresponding increase in income tax expense in the fourth quarter.

Beginning in 2018, income tax expense will be positively affected by the substantial reduction in the corporate tax rate.

Financial Performance and Overview

Jeffrey V. Haley, President and Chief Executive Officer, reported, “For 2017 we continued to see robust growth in loans. Our loan portfolio grew $171 million or 14.7%. This growth was widespread throughout our markets, but especially evident in our de novo offices and our Guilford County offices.

“Deposits have continued to grow also. They increased $164 million or 12.0%. This growth was also widespread.

“Our national and local economies are improving and market interest rates are increasing. An improving economy and rising rates are good for American National.

“Our continuing challenge in this environment is achieving a reasonable yield on our earnings assets, mostly loans, and maintaining control of the cost of our liabilities, mostly deposits. Rising rates are good for us, but the benefit of those increases is reduced by competition for high quality loan customers and, on the liability side, also reduced by the desire of high volume, high value deposit customers for better returns. The net result is continuing and increasing pressure on net interest margin.

“We are pleased that for the fourth quarter of 2017 our net interest margin was 3.46% compared to 3.45% for the comparable quarter of 2016.

“For 2017 our net interest margin was 3.50% compared to 3.52% for 2016.

“Net income for the fourth quarter of 2017 was $2.1 million or $0.24 per diluted share, a decrease of $2.0 million or 48.6%. Without the impact of the one-time, deferred tax write-down, net income would have been $4.8 million or $0.55 per diluted share, approximately a $700,000 increase.

“Net income for 2017 was $15.2 million or $1.76 per diluted share, a decrease of $1.1 million or 6.5%. Without the impact of the one-time, deferred tax write-down, net income would have been $17.9 million or $2.07 per diluted share, approximately a $1.6 million increase.

“A lot of factors impacted earnings in 2017, but the major driver was the recently enacted tax reform legislation.

“The cut in the tax rate for corporations from 35% to 21% is a good event for the economy. However, the 14% reduction in the statutory tax rate requires every corporation to revalue its deferred tax assets. Deferred taxes are how we reconcile the many differences between income as defined by generally accepted accounting principles and income as defined by the IRS. The short version of this long, technical story is that American National had to write down its deferred tax asset $2.7 million, or $0.31 per share, in December 2017, in advance of receiving the benefit of the tax rate cut, which began in January 2018.

“Notwithstanding the one-time charge to income taxes, the fourth quarter results were excellent. The primary driver was a $1.7 million or 13.6% increase in net interest income, mostly the result of higher interest income on the loan portfolio. Interest income was driven by higher loan volume; average loan volume for the quarter was up $191 million or 17.2%, compared to the first quarter of 2016.”

Haley concluded, “American National has a long and enviable legacy of a strong balance sheet. Over the past three years we have had substantial growth in that balance sheet, while maintaining high asset quality and exceptional capital ratios. We are working hard to continue that strategy. In the meantime, we are seeing improvement in the local economies of our various markets. That should continue to provide us with increasing opportunities to do what we do best – provide our customers with the best possible banking services and products. We look forward optimistically to the opportunities that 2018 will surely provide.”

Capital

American National’s capital ratios remain strong and exceed all regulatory requirements.

For the quarter ended December 31, 2017, average shareholders’ equity was 11.64% of average assets, compared to 12.39% for the quarter ended December 31, 2016.

Book value per common share was $24.08 at December 31, 2017, compared to $23.37 at December 31, 2016.

Tangible book value per common share was $18.87 at December 31, 2017, compared to $18.08 at December 31, 2016.

Credit Quality Measurements

Non-performing assets ($2,201,000 of non-performing loans, $359,000 of 90 day past due and accruing loans, and $1,225,000 of other real estate owned) represented 0.21% of total assets at December 31, 2017, compared to 0.29% at December 31, 2016.

Annualized net charge offs to average loans were six basis points for the fourth quarter of 2017, compared to zero for the same quarter in 2016.

Other real estate owned was $1,225,000 at December 31, 2017, compared to $1,328,000 at December 31, 2016, a decrease of $103,000 or 7.8%.

Merger Related Financial Impact

The acquisition accounting adjustments related to our two recent acquisitions have had and continue to have a positive impact on net interest income and income before income tax for American National. The impact of these adjustments is summarized below (dollars in thousands):


For the quarter ended December 31, 2017 2016
Net Interest Income $ 529 $ 427
Income Before Income Taxes $ 449 $ 252
For the year ended December 31, 2017 2016
Net Interest Income $ 2,114 $ 2,136
Income Before Income Taxes $ 1,586 $ 1,172


The fourth quarter of 2017 includes $348,000 in cash basis accretion income related to the early payoff of several acquired loans, compared to $123,000 for the comparable quarter of 2016.

For 2017, cash basis accretion income totaled $968,000, compared to $465,000 for 2016.

Net Interest Income

Net interest income before the provision for loan losses increased to $14,363,000 in the fourth quarter of 2017 from $12,646,000 in the fourth quarter of 2016, an increase of $1,717,000 or 13.6%.

For the 2017 quarter, the net interest margin was 3.46% compared to 3.45% for the same quarter in 2016, an increase of 0.01%.

The major drivers affecting margin were:

  • Positively affecting margin was $179.5 million (11.8%) increase in average earning assets, at a 10 basis point higher yield.
  • Positively affecting margin was a $52.3 million (14.6%) increase in average noninterest bearing deposits.
  • Negatively affecting margin was a $98.3 million (35.5%) increase in the average balance of money market deposits, at a 45 basis point higher cost.

Provision for Loan Losses and Allowance for Loan Losses

Provision expense for the fourth quarter of 2017 was ($74,000) compared to $50,000 for the fourth quarter of 2016, a decrease of $124,000. The negative provision expense in the 2017 quarter was related to the payoff and revaluation of various purchased credit impaired loans and adjustment of their related loss reserves.

The allowance for loan losses as a percentage of total loans was 1.02% at December 31, 2017 compared to 1.10% at December 31, 2016. There was significant growth in the loans in the fourth quarter, a net increase of $41.0 million. 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 Income

Noninterest income totaled $3,804,000 in the fourth quarter of 2017, compared with $3,721,000 in the fourth quarter of 2016, an increase of $83,000 or 2.2%.

Trust income increased $46,000 (4.8%) from the prior year quarter. Securities gains showed a $47,000 (26.9%) increase from the prior year quarter. Secondary market mortgage income showed an increase of $61,000 (11.2%), related to higher mortgage volume.

Noninterest Expense

Noninterest expense totaled $11,021,000 in the fourth quarter of 2017, compared to $10,360,000 in the fourth quarter of 2016, an increase of $661,000 or 6.4%.

Salaries expense, the largest component, increased $529,000 or 11.3%. This increase resulted primarily due to the addition of eight FTEs during 2017. American National added two mortgage loan originators, a trust officer, and several branch level personnel. On the support side of the bank, additions were made to the credit function, risk, and loan review.

About American National

American National is a multi-state bank holding company with total assets of approximately $1.8 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 26 banking offices and two loan production offices. American National Bank also manages an additional $839 million of trust, investment and brokerage assets in its Trust and Investment Services Division. Additional information about the company and the bank is available on the bank's website at www.amnb.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. Certain of the statements involve significant risks and uncertainties. The statements herein are based on certain assumptions and analyses by American National and are factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies or guidelines; significant changes in the economic scenario; significant changes in regulatory requirements or law; significant changes in securities markets; and changes regarding acquisitions and dispositions. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in American National's most recent Form 10-K report and other documents filed with the Securities and Exchange Commission. American National does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.


American National Bankshares Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
Unaudited
December 31
ASSETS 2017 2016
Cash and due from banks $ 28,594 $ 20,268
Interest-bearing deposits in other banks 23,883 32,939
Securities available for sale, at fair value 321,337 346,502
Restricted stock, at cost 6,110 6,224
Loans held for sale 1,639 5,996
Loans 1,336,125 1,164,821
Less allowance for loan losses (13,603) (12,801)
Net Loans 1,322,522 1,152,020
Premises and equipment, net 25,901 25,439
Other real estate owned, net 1,225 1,328
Goodwill 43,872 43,872
Core deposit intangibles, net 1,191 1,719
Bank owned life insurance 18,460 18,163
Accrued interest receivable and other assets 20,940 24,168
Total assets $ 1,815,674 $ 1,678,638
Liabilities
Demand deposits -- noninterest-bearing $ 394,344 $ 378,600
Demand deposits -- interest-bearing 226,914 209,430
Money market deposits 403,024 283,035
Savings deposits 126,786 120,720
Time deposits 383,658 378,855
Total deposits 1,534,726 1,370,640
Short-term borrowings:
Customer repurchase agreements 10,726 39,166
Other short-term borrowings 24,000 20,000
Long-term borrowings - 9,980
Junior subordinated debt 27,826 27,724
Accrued interest payable and other liabilities 10,083 9,748
Total liabilities 1,607,361 1,477,258
Shareholders' equity
Preferred stock, $5 par, 2,000,000 shares authorized,
none outstanding - -
Common stock, $1 par, 20,000,000 shares authorized,
8,650,547 shares outstanding at December 31, 2017 and
8,618,051 shares outstanding at December 31, 2016 8,604 8,578
Capital in excess of par value 76,179 75,076
Retained earnings 126,465 119,600
Accumulated other comprehensive loss, net (2,935) (1,874)
Total shareholders' equity 208,313 201,380
Total liabilities and shareholders' equity $ 1,815,674 $ 1,678,638

American National Bankshares Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Unaudited
Three Months Ended Twelve Months Ended
December 31 December 31
2017 2016 2017 2016
Interest and Dividend Income:
Interest and fees on loans $ 14,426 $ 12,182 $ 55,276 $ 47,971
Interest and dividends on securities:
Taxable 1,271 1,108 4,666 4,454
Tax-exempt 439 728 2,043 3,135
Dividends 79 76 319 334
Other interest income 265 73 734 276
Total interest and dividend income 16,480 14,167 63,038 56,170
Interest Expense:
Interest on deposits 1,713 1,201 5,794 5,103
Interest on short-term borrowings 79 4 173 10
Interest on long-term borrowings 53 82 296 325
Interest on junior subordinated debt 272 234 1,028 878
Total interest expense 2,117 1,521 7,291 6,316
Net Interest Income 14,363 12,646 55,747 49,854
Provision for loan losses (74) 50 1,016 250
Net Interest Income After Provision
for Loan Losses 14,437 12,596 54,731 49,604
Noninterest Income:
Trust fees 1,008 962 3,926 3,791
Service charges on deposit accounts 504 528 2,002 2,048
Other fees and commissions 723 689 2,895 2,680
Mortgage banking income 605 544 2,208 1,713
Securities gains, net 222 175 812 836
Brokerage fees 226 207 829 843
Income from Small Business Investment Companies 118 225 236 463
Gains (losses) on premises and equipment, net 7 - 344 (9)
Other 391 391 975 1,140
Total noninterest income 3,804 3,721 14,227 13,505
Noninterest Expense:
Salaries 5,225 4,696 19,829 17,568
Employee benefits 1,094 1,061 4,519 4,264
Occupancy and equipment 1,120 1,084 4,487 4,246
FDIC assessment 137 128 538 647
Bank franchise tax 277 226 1,072 995
Core deposit intangible amortization 80 175 528 964
Data processing 550 488 2,014 1,828
Software 291 271 1,144 1,143
Other real estate owned, net 130 22 303 336
Other 2,117 2,209 8,449 7,810
Total noninterest expense 11,021 10,360 42,883 39,801
Income Before Income Taxes 7,220 5,957 26,075 23,308
Income Taxes 5,100 1,835 10,826 7,007
Net Income $ 2,120 $ 4,122 $ 15,249 $ 16,301
Net Income Per Common Share:
Basic $ 0.25 $ 0.48 $ 1.76 $ 1.89
Diluted $ 0.24 $ 0.48 $ 1.76 $ 1.89
Average Common Shares Outstanding:
Basic 8,648,494 8,615,700 8,641,717 8,611,507
Diluted 8,668,765 8,629,777 8,660,628 8,621,241

American National Bankshares Inc.
Financial Highlights
Unaudited
(Dollars in thousands, except per share data)
4th Qtr 3rd Qtr 4th Qtr YTD YTD
2017 2017 2016 2017 2016
EARNINGS
Interest income $ 16,480 $ 16,274 $ 14,167 $ 63,038 $ 56,170
Interest expense 2,117 1,936 1,521 7,291 6,316
Net interest income 14,363 14,338 12,646 55,747 49,854
Provision for loan losses (74) 440 50 1,016 250
Noninterest income 3,804 3,804 3,721 14,227 13,505
Noninterest expense 11,021 10,710 10,360 42,883 39,801
Income taxes 5,100 2,205 1,835 10,826 7,007
Net income 2,120 4,787 4,122 15,249 16,301
PER COMMON SHARE
Income per share - basic$ 0.25 $ 0.55 $ 0.48 $ 1.76 $ 1.89
Income per share - diluted 0.24 0.55 0.48 1.76 1.89
Cash dividends paid 0.25 0.24 0.24 0.97 0.96
Book value per share 24.08 24.31 23.37 24.08 23.37
Book value per share - tangible (a) 18.87 19.09 18.08 18.87 18.08
Closing market price 38.30 41.20 34.80 38.30 34.80
FINANCIAL RATIOS
Return on average assets 0.47 % 1.08 % 1.00 % 0.87 % 1.02 %
Return on average equity 4.00 9.16 8.10 7.34 8.07
Return on average tangible equity (b) 5.21 11.81 10.73 9.59 10.85
Average equity to average assets 11.64 11.79 12.39 11.82 12.64
Tangible equity to tangible assets (a) 9.22 9.51 9.54 9.22 9.54
Net interest margin, taxable equivalent 3.46 3.56 3.45 3.50 3.52
Efficiency ratio (c) 59.93 59.14 62.32 60.89 61.47
Effective tax rate 70.64 31.54 30.80 41.52 30.06
PERIOD-END BALANCES
Securities $ 327,447 $ 277,714 $ 352,726 $ 327,447 $ 352,726
Loans held for sale 1,639 3,386 5,996 1,639 5,996
Loans, net of unearned income 1,336,125 1,295,154 1,164,821 1,336,125 1,164,821
Goodwill and other intangibles 45,063 45,143 45,591 45,063 45,591
Assets 1,815,674 1,780,541 1,678,638 1,815,674 1,678,638
Assets - tangible (a) 1,770,611 1,735,398 1,633,047 1,770,611 1,633,047
Deposits 1,534,726 1,480,205 1,370,640 1,534,726 1,370,640
Customer repurchase agreements 10,726 43,240 39,166 10,726 39,166
Other short-term borrowings 24,000 - 20,000 24,000 20,000
Long-term borrowings 27,826 37,796 37,704 27,826 37,704
Shareholders' equity 208,313 210,214 201,380 208,313 201,380
Shareholders' equity - tangible (a) 163,250 165,071 155,789 163,250 155,789
AVERAGE BALANCES
Securities (d) $ 304,254 $ 281,246 $ 345,035 $ 301,377 $ 351,961
Loans held for sale 4,269 3,607 4,758 3,185 3,171
Loans, net of unearned income 1,301,833 1,291,822 1,110,524 1,262,264 1,060,106
Interest-earning assets 1,695,091 1,646,241 1,515,597 1,631,853 1,470,648
Goodwill and other intangibles 45,109 45,191 45,693 45,287 46,037
Assets 1,820,486 1,773,636 1,643,250 1,758,009 1,598,149
Assets - tangible (a) 1,775,377 1,728,445 1,597,557 1,712,722 1,552,112
Interest-bearing deposits 1,109,286 1,066,827 986,622 1,061,519 970,728
Deposits 1,520,665 1,468,523 1,345,743 1,454,182 1,301,043
Customer repurchase agreements 42,540 48,461 45,281 46,335 46,832
Other short-term borrowings 951 - 1,087 3,158 656
Long-term borrowings 34,331 37,780 37,686 36,887 37,640
Shareholders' equity 211,851 209,026 203,603 207,804 202,074
Shareholders' equity - tangible (a) 166,742 163,835 157,910 162,517 156,037
American National Bankshares Inc.
Financial Highlights
Unaudited
(Dollars in thousands, except per share data)
4th Qtr 3rd Qtr 4th Qtr YTD YTD
2017 2017 2016 2017 2016
CAPITAL
Average common shares outstanding - basic 8,648,494 8,644,310 8,615,700 8,641,717 8,611,507
Average common shares outstanding - diluted 8,668,765 8,663,246 8,629,777 8,660,628 8,621,241
ALLOWANCE FOR LOAN LOSSES
Beginning balance$ 13,858 $ 13,632 $ 12,757 $ 12,801 $ 12,601
Provision for loan losses (74) 440 50 1,016 250
Charge-offs (280) (277) (81) (690) (326)
Recoveries 99 63 75 476 276
Ending balance $ 13,603 $ 13,858 $ 12,801 $ 13,603 $ 12,801
LOANS
Construction and land development$ 123,147 $ 137,869 $ 114,258 $ 123,147 $ 114,258
Commercial real estate 637,701 602,434 510,960 637,701 510,960
Residential real estate 209,326 209,201 215,104 209,326 215,104
Home equity 109,857 110,926 110,751 109,857 110,751
Commercial and industrial 251,666 230,484 208,717 251,666 208,717
Consumer 4,428 4,240 5,031 4,428 5,031
Total $ 1,336,125 $ 1,295,154 $ 1,164,821 $ 1,336,125 $ 1,164,821
NONPERFORMING ASSETS AT PERIOD-END
Nonperforming loans:
90 days past due and accruing$ 359 $ 538 $ 587 $ 359 $ 587
Nonaccrual 2,201 2,498 2,965 2,201 2,965
Other real estate owned 1,225 2,101 1,328 1,225 1,328
Nonperforming assets$ 3,785 $ 5,137 $ 4,880 $ 3,785 $ 4,880
ASSET QUALITY RATIOS
Allowance for loan losses to total loans 1.02 % 1.07 % 1.10 % 1.02 % 1.10 %
Allowance for loan losses to
nonperforming loans 531.37 456.46 360.39 531.37 360.39
Nonperforming assets to total assets 0.21 0.29 0.29 0.21 0.29
Nonperforming loans to total loans 0.19 0.23 0.30 0.19 0.30
Annualized net charge-offs
to average loans 0.06 0.07 0.00 0.02 0.00
OTHER DATA
Fiduciary assets at period-end (e) (f)$ 518,284 $ 517,294 $ 498,767 $ 518,284 $ 498,767
Retail brokerage assets at period-end (e) (f)$ 321,151 $ 307,281 $ 282,454 $ 321,151 $ 282,454
Number full-time equivalent employees (g) 328 335 320 328 320
Number of full service offices 26 26 26 26 26
Number of loan production offices 2 2 2 2 2
Number of ATM's 34 34 33 34 33
Notes:
(a) - Excludes goodwill and other intangible assets.
(b) - Excludes amortization expense, net of tax, of intangible assets.
(c) - The efficiency ratio is calculated by dividing noninterest expense excluding gains or losses on the sale of OREO by net
interest income including tax equivalent income on nontaxable loans and securities and noninterest income and excluding (i) gains or
losses on securities and (ii) gains or losses on sale of premises and equipment.
(d) - Average does not include unrealized gains and losses.
(e) - Market value.
(f) - Assets are not owned by the Company and are not reflected in the consolidated balance sheet.
(g) - Average for quarter.

Net Interest Income Analysis
For the Three Months Ended December 31, 2017 and 2016
(Dollars in thousands)
Unaudited
Interest
Average Balance Income/Expense Yield/Rate
2017 2016 2017 2016 2017 2016
Loans:
Commercial$ 233,689 $ 204,489 $ 2,253 $ 2,003 3.82 %3.90 %
Real estate 1,068,273 905,721 12,171 10,143 4.56 4.48
Consumer 4,140 5,072 81 98 7.76 7.69
Total loans
1,306,102 1,115,282 14,505 12,244 4.44 4.39
Securities:
Federal agencies & GSEs 104,523 96,134 508 423 1.94 1.76
Mortgage-backed & CMOs 92,339 79,643 501 400 2.17 2.01
State and municipal 92,636 152,518 829 1,311 3.58 3.44
Other 14,756 16,740 171 150 4.64 3.58
Total securities
304,254 345,035 2,009 2,284 2.64 2.65
Deposits in other banks 84,735 55,280 265 73 1.24 0.53
Total interest-earning assets 1,695,091 1,515,597 16,779 14,601 3.95 3.85
Non-earning assets 125,395 127,653
Total assets
$ 1,820,486 $ 1,643,250
Deposits:
Demand$ 220,150 $ 204,910 11 10 0.02 0.02
Money market 374,691 276,435 623 148 0.66 0.21
Savings 126,274 119,770 10 9 0.03 0.03
Time 388,171 385,507 1,069 1,034 1.09 1.07
Total deposits
1,109,286 986,622 1,713 1,201 0.61 0.48
Customer repurchase agreements 42,540 45,281 74 2 0.69 0.02
Other short-term borrowings 951 1,087 4 2 1.68 0.74
Long-term borrowings 34,331 37,686 326 316 3.80 3.35
Total interest-bearing
liabilities
1,187,108 1,070,676 2,117 1,521 0.71 0.57
Noninterest bearing demand deposits 411,379 359,121
Other liabilities 10,148 9,850
Shareholders' equity 211,851 203,603
Total liabilities and
shareholders' equity$ 1,820,486 $ 1,643,250
Interest rate spread 3.24 %3.28 %
Net interest margin 3.46 %3.45 %
Net interest income (taxable equivalent basis) 14,662 13,080
Less: Taxable equivalent adjustment 299 434
Net interest income $ 14,363 $ 12,646

Net Interest Income Analysis
For the Years Ended December 31, 2017 and 2016
(Dollars in thousands)
Unaudited
Interest
Average Balance Income/Expense Yield/Rate
2017 2016 2017 2016 2017 2016
Loans:
Commercial$ 229,239 $ 198,326 $ 8,829 $ 7,856 3.85 %3.96 %
Real estate 1,031,558 859,721 46,400 39,763 4.50 4.63
Consumer 4,652 5,230 352 605 7.57 11.57
Total loans 1,265,449 1,063,277 55,581 48,224 4.39 4.54
Securities:
Federal agencies & GSEs 97,670 96,009 1,849 1,674 1.89 1.74
Mortgage-backed & CMOs 82,042 79,720 1,725 1,635 2.10 2.05
State and municipal 105,869 160,279 3,781 5,647 3.57 3.52
Other 15,796 15,953 707 560 4.48 3.51
Total securities 301,377 351,961 8,062 9,516 2.68 2.70
Deposits in other banks 65,027 55,410 734 276 1.13 0.50
Total interest-earning assets 1,631,853 1,470,648 64,377 58,016 3.95 3.94
Non-earning assets 126,156 127,501
Total assets$ 1,758,009 $ 1,598,149
Deposits:
Demand$ 217,833 $ 216,521 43 99 0.02 0.05
Money market 335,085 239,262 1,668 432 0.50 0.18
Savings 125,157 118,144 38 47 0.03 0.04
Time 383,444 396,801 4,045 4,525 1.05 1.14
Total deposits 1,061,519 970,728 5,794 5,103 0.55 0.53
Customer repurchase agreements 46,335 46,832 142 5 0.31 0.01
Other short-term borrowings 3,158 656 31 5 0.98 0.76
Long-term borrowings 36,887 37,640 1,324 1,203 3.59 3.20
Total interest-bearing
liabilities
1,147,899 1,055,856 7,291 6,316 0.64 0.60
Noninterest bearing demand deposits 392,663 330,315
Other liabilities 9,643 9,904
Shareholders' equity 207,804 202,074
Total liabilities and
shareholders' equity$ 1,758,009 $ 1,598,149
Interest rate spread 3.31 %3.34 %
Net interest margin 3.50 %3.52 %
Net interest income (taxable equivalent basis) 57,086 51,700
Less: Taxable equivalent adjustment 1,339 1,846
Net interest income $ 55,747 $ 49,854

Contact: William W. Traynham, Chief Financial Officer
434-773-2242
traynhamw@amnb.com

Source:American National Bankshares, Inc.