AMNB American National Bankshares Inc

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