American National Bankshares Inc. (“American National”)
(NASDAQ:AMNB), parent company of American National Bank and Trust
Company, today announced net income for the first quarter of 2018
of $5,812,000 compared to $4,063,000 for the first quarter of 2017,
a $1,749,000 or 43.0% increase. Basic and diluted net income per
common share was $0.67 for the first quarter of 2018 compared to
$0.47 for the 2017 quarter. Net income for the first quarter of
2018 produced a return on average assets of 1.28%, a return on
average equity of 11.10%, and a return on average tangible equity
of 14.29%.
Financial Performance and OverviewJeffrey V. Haley, President
and Chief Executive Officer, reported, “We were pleased with our
earnings for the first quarter of 2018. Earnings were strong, $5.8
million compared to $4.1 million for the comparable quarter of
2017, a 43.0% increase. There were two major causes of the
increase: greater interest income and lower corporate taxes.
“The main driver was higher net interest income, resulting
mostly from greater interest income on the loan portfolio. Net
interest income increased, resulting from higher yields and higher
loan volume. Average loan volume for the 2018 quarter was up $142.5
million or 11.9% compared to the first quarter of 2017. First
quarter of 2018 compared to first quarter of 2017, loans are up
$101.3 million or 8.3%.
“In the first quarter of 2018, our balance sheet experienced $24
million in payoffs associated with several large multifamily loans
moving into the permanent, non-recourse market. Most of these
projects started as construction loans on our balance sheet and
achieved their projected occupancy and overall performance levels,
allowing them to move off our balance sheet, as we anticipated.
Overall, our loans outstanding declined on a net basis by $14.9
million, or 1.1% from year end because of these payoffs. Of these
payoffs, $20 million was received on the last business day of the
quarter.
“We expect loan growth to continue in the remainder of 2018,
though likely at a reduced pace compared to the past record
year.
“Deposits have grown substantially. Average deposits for the
2018 quarter were $165.0 million or 11.9% greater than the
comparable quarter of 2017. Year over year deposits are up $143.1
million or 10.1%.
“In this rising interest rate environment, our continuing
challenge will be to maintain quality growth in assets and deposits
and, at the same time, maintain and improve our net interest
margin. Our margin for the 2018 quarter was 3.46%, a two basis
point increase from the 2017 quarter.
“The other driver on the earnings increase was a substantial
decrease in our corporate tax rate. The tax cut, enacted in
December 2017, reduced our statutory rate to 21% from 35% and our
effective rate to 19.5% from 28.3%.”
Haley concluded, “American National reports results on a
quarterly basis, like most publicly traded companies. This
inherently results in some volatility in the reporting process. We
manage the Bank for the long term, and we believe this reflects the
underlying strength of our balance sheet and franchise. We continue
to be optimistic about our markets, our industry, and our community
bank.”
CapitalAmerican National’s capital ratios remain strong and
exceed all regulatory requirements.
Average shareholders’ equity was 11.52% of average assets for
the quarter ended March 31, 2018, compared to 11.97% for the
quarter ended March 31, 2017.
Book value per common share was $24.19 at March 31, 2018,
compared to $23.64 at March 31, 2017.
Tangible book value per common share was $19.00 at March 31,
2018, compared to $18.38 at March 31, 2017.
Credit Quality MeasurementsNon-performing assets ($273,000 of 90
day past due loans, $1,598,000 of non-accrual loans and $1,716,000
of other real estate owned) represented 0.20% of total assets at
March 31, 2018, compared to 0.30% at March 31, 2017.
Annualized net charge offs to average loans were zero basis
points (0.00%) for the 2018 first quarter, unchanged from the same
quarter in 2017.
Other real estate owned was $1,716,000 at March 31, 2018,
compared to $1,664,000 at March 31, 2017, an increase of $52,000 or
3.1%.
Acquisition related financial impactThe acquisition accounting
adjustments related to our two most recent acquisitions have had
and continue to have a positive impact on net interest income and
income before income tax. The impact of these adjustments is
summarized below (dollars in thousands):
|
|
|
|
|
|
|
For the
quarter ended March 31, |
|
2018 |
|
2017 |
Net Interest
Income |
|
$ |
427 |
|
$ |
434 |
Income Before Income
Taxes |
|
$ |
350 |
|
$ |
269 |
|
|
|
|
|
|
|
The first quarter of 2018 includes $255,000 in cash basis
accretion income related to the early payoff of several acquired
loans, compared to $78,000 for the comparable quarter of 2017.
Net Interest IncomeNet interest income before the provision for
loan losses increased to $14,543,000 in the first quarter of 2018
from $13,134,000 in the first quarter of 2017, an increase of
$1,409,000 or 10.7%.
For the 2018 quarter, the net interest margin was 3.46% compared
to 3.44% for the same quarter in 2017, an increase of two basis
points.
Provision for Loan Losses and Allowance for Loan LossesProvision
expense for the first quarter of 2018 was ($44,000) compared to
$300,000 for the first quarter of 2017, a decrease of $344,000. The
$44,000 negative provision related to a favorable adjustment on the
specific reserve for an impaired loan loss allowance.
There was a decrease in the loans outstanding in the first
quarter of 2018; loans were down from year-end of $14.9 million or
1.1%. This decline, combined with continued strong asset quality
metrics, mitigated the need for provision expense.
The allowance for loan losses as a percentage of total loans was
1.03% at March 31, 2018 compared to 1.07% at March 31, 2017.
Noninterest IncomeNoninterest income totaled $3,333,000 in the
first quarter of 2018, compared with $3,271,000 in the first
quarter of 2017, an increase of $62,000 or 1.9%.
Mortgage banking income decreased $79,000 (14.9%) compared to
the first quarter of 2017.
Securities gains decreased $138,000 (53.3%) compared to the
first quarter of 2017. Gains in the 2018 quarter were almost
entirely related to changes in the market value of equity
securities held by the company, recorded in conformity with new
accounting requirements.
SBIC income increased $129,000 compared to the first quarter of
2017. The Company believes this is a volatile revenue source.
Noninterest ExpenseNoninterest expense totaled $10,702,000 in
the first quarter of 2018, compared to $10,441,000 in the first
quarter of 2017, an increase of $261,000 or 2.5%.
The major factor affecting expense was salaries, which increased
$198,000 or 4.1%, largely related to normal first of year
adjustments. Total bank wide full-time equivalent employees were
326 at the end of the first quarter of 2018, unchanged from the
first quarter of 2017.
Income taxes for the first quarter of 2018 were favorably
impacted by the change in the corporate income tax rate. The
effective tax rate for the 2018 quarter was 19.5%, compared to
28.3% for the same quarter of 2017.
About American NationalAmerican 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 $826
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 StatementsThis 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; changes in technology
and information security; 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 |
|
|
|
|
|
|
|
March 31 |
ASSETS |
|
2018 |
|
2017 |
|
|
|
|
|
Cash and
due from banks |
|
$ |
18,772 |
|
|
$ |
27,418 |
|
Interest-bearing deposits in other banks |
|
|
57,881 |
|
|
|
67,372 |
|
|
|
|
|
|
Securities available for sale, at fair value |
|
|
312,668 |
|
|
|
292,567 |
|
Restricted stock, at cost |
|
|
5,221 |
|
|
|
5,492 |
|
Loans
held for sale |
|
|
1,792 |
|
|
|
1,872 |
|
|
|
|
|
|
Loans |
|
|
1,321,221 |
|
|
|
1,219,958 |
|
Less
allowance for loan losses |
|
|
(13,575 |
) |
|
|
(13,108 |
) |
Net
Loans |
|
|
1,307,646 |
|
|
|
1,206,850 |
|
|
|
|
|
|
Premises
and equipment, net |
|
|
25,759 |
|
|
|
25,658 |
|
Other
real estate owned, net |
|
|
1,716 |
|
|
|
1,664 |
|
Goodwill |
|
|
43,872 |
|
|
|
43,872 |
|
Core
deposit intangibles, net |
|
|
1,114 |
|
|
|
1,554 |
|
Bank
owned life insurance |
|
|
18,566 |
|
|
|
18,270 |
|
Accrued
interest receivable and other assets |
|
|
22,567 |
|
|
|
23,216 |
|
|
|
|
|
|
Total
assets |
|
$ |
1,817,574 |
|
|
$ |
1,715,805 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
Demand
deposits -- noninterest-bearing |
|
$ |
400,225 |
|
|
$ |
381,247 |
|
Demand
deposits -- interest-bearing |
|
|
233,973 |
|
|
|
222,356 |
|
Money
market deposits |
|
|
409,290 |
|
|
|
314,495 |
|
Savings
deposits |
|
|
134,171 |
|
|
|
126,774 |
|
Time
deposits |
|
|
381,592 |
|
|
|
371,232 |
|
Total
deposits |
|
|
1,559,251 |
|
|
|
1,416,104 |
|
|
|
|
|
|
Customer
repurchase agreements |
|
|
10,466 |
|
|
|
47,776 |
|
Long-term
borrowings |
|
|
- |
|
|
|
9,985 |
|
Junior
subordinated debt |
|
|
27,851 |
|
|
|
27,749 |
|
Accrued
interest payable and other liabilities |
|
|
10,166 |
|
|
|
9,950 |
|
Total
liabilities |
|
|
1,607,734 |
|
|
|
1,511,564 |
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
Preferred
stock, $5 par, 2,000,000 shares authorized, |
|
|
|
|
none
outstanding |
|
|
- |
|
|
|
- |
|
Common
stock, $1 par, 20,000,000 shares authorized, |
|
|
|
|
8,675,033 shares outstanding at March 31, 2018 and |
|
|
|
|
8,638,744 shares outstanding at March 31, 2017 |
|
|
8,621 |
|
|
|
8,591 |
|
Capital
in excess of par value |
|
|
76,525 |
|
|
|
75,445 |
|
Retained
earnings |
|
|
131,299 |
|
|
|
121,590 |
|
Accumulated other comprehensive loss, net |
|
|
(6,605 |
) |
|
|
(1,385 |
) |
Total
shareholders' equity |
|
|
209,840 |
|
|
|
204,241 |
|
|
|
|
|
|
Total
liabilities and shareholders' equity |
|
$ |
1,817,574 |
|
|
$ |
1,715,805 |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statements of Income |
(Dollars in thousands, except per share data) |
Unaudited |
|
|
|
|
|
|
|
Three Months Ended |
|
|
March 31 |
|
|
2018 |
|
2017 |
Interest and Dividend
Income: |
|
|
|
|
Interest
and fees on loans |
|
$ |
14,657 |
|
|
$ |
12,704 |
|
Interest
and dividends on securities: |
|
|
|
|
Taxable |
|
|
1,324 |
|
|
|
1,154 |
|
Tax-exempt |
|
|
419 |
|
|
|
635 |
|
Dividends |
|
|
80 |
|
|
|
79 |
|
Other
interest income |
|
|
188 |
|
|
|
109 |
|
Total
interest and dividend income |
|
|
16,668 |
|
|
|
14,681 |
|
|
|
|
|
|
Interest
Expense: |
|
|
|
|
Interest
on deposits |
|
|
1,825 |
|
|
|
1,200 |
|
Interest
on short-term borrowings |
|
|
10 |
|
|
|
28 |
|
Interest
on long-term borrowings |
|
|
- |
|
|
|
80 |
|
Interest
on junior subordinated debt |
|
|
290 |
|
|
|
239 |
|
Total
interest expense |
|
|
2,125 |
|
|
|
1,547 |
|
|
|
|
|
|
Net Interest Income |
|
|
14,543 |
|
|
|
13,134 |
|
Provision
for loan losses |
|
|
(44 |
) |
|
|
300 |
|
|
|
|
|
|
Net Interest Income After Provision |
|
|
|
|
for Loan Losses |
|
|
14,587 |
|
|
|
12,834 |
|
|
|
|
|
|
Noninterest
Income: |
|
|
|
|
Trust
fees |
|
|
929 |
|
|
|
912 |
|
Service
charges on deposit accounts |
|
|
551 |
|
|
|
523 |
|
Other
fees and commissions |
|
|
703 |
|
|
|
673 |
|
Mortgage
banking income |
|
|
450 |
|
|
|
529 |
|
Securities gains, net |
|
|
121 |
|
|
|
259 |
|
Brokerage
fees |
|
|
222 |
|
|
|
192 |
|
Income
from Small Business Investment Companies |
|
|
155 |
|
|
|
26 |
|
Other |
|
|
202 |
|
|
|
157 |
|
Total
noninterest income |
|
|
3,333 |
|
|
|
3,271 |
|
|
|
|
|
|
Noninterest
Expense: |
|
|
|
|
Salaries |
|
|
4,997 |
|
|
|
4,799 |
|
Employee
benefits |
|
|
1,175 |
|
|
|
1,120 |
|
Occupancy
and equipment |
|
|
1,128 |
|
|
|
1,068 |
|
FDIC
assessment |
|
|
146 |
|
|
|
129 |
|
Bank
franchise tax |
|
|
281 |
|
|
|
256 |
|
Core
deposit intangible amortization |
|
|
77 |
|
|
|
165 |
|
Data
processing |
|
|
422 |
|
|
|
487 |
|
Software |
|
|
305 |
|
|
|
279 |
|
Other
real estate owned, net |
|
|
30 |
|
|
|
43 |
|
Other |
|
|
2,141 |
|
|
|
2,095 |
|
Total
noninterest expense |
|
|
10,702 |
|
|
|
10,441 |
|
|
|
|
|
|
Income Before Income
Taxes |
|
|
7,218 |
|
|
|
5,664 |
|
Income Taxes |
|
|
1,406 |
|
|
|
1,601 |
|
Net Income |
|
$ |
5,812 |
|
|
$ |
4,063 |
|
|
|
|
|
|
Net Income Per Common
Share: |
|
|
|
|
Basic |
|
$ |
0.67 |
|
|
$ |
0.47 |
|
Diluted |
|
$ |
0.67 |
|
|
$ |
0.47 |
|
Average Common Shares
Outstanding: |
|
|
|
|
Basic |
|
|
8,669,728 |
|
|
|
8,633,219 |
|
Diluted |
|
|
8,687,351 |
|
|
|
8,651,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American National Bankshares Inc. |
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Qtr |
|
4th Qtr |
|
1st Qtr |
|
|
YTD |
|
YTD |
|
|
|
|
|
2018 |
|
2017 |
|
2017 |
|
|
2018 |
|
2017 |
|
EARNINGS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
$ |
16,668 |
|
|
$ |
16,480 |
|
|
$ |
14,681 |
|
|
|
$ |
16,668 |
|
|
$ |
14,681 |
|
|
Interest expense |
|
|
2,125 |
|
|
|
2,117 |
|
|
|
1,547 |
|
|
|
|
2,125 |
|
|
|
1,547 |
|
|
Net interest income |
|
14,543 |
|
|
|
14,363 |
|
|
|
13,134 |
|
|
|
|
14,543 |
|
|
|
13,134 |
|
|
Provision for loan losses |
|
(44 |
) |
|
|
(74 |
) |
|
|
300 |
|
|
|
|
(44 |
) |
|
|
300 |
|
|
Noninterest income |
|
3,333 |
|
|
|
3,804 |
|
|
|
3,271 |
|
|
|
|
3,333 |
|
|
|
3,271 |
|
|
Noninterest expense |
|
10,702 |
|
|
|
11,021 |
|
|
|
10,441 |
|
|
|
|
10,702 |
|
|
|
10,441 |
|
|
Income taxes |
|
|
1,406 |
|
|
|
5,100 |
|
|
|
1,601 |
|
|
|
|
1,406 |
|
|
|
1,601 |
|
|
Net income |
|
|
5,812 |
|
|
|
2,120 |
|
|
|
4,063 |
|
|
|
|
5,812 |
|
|
|
4,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PER COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
Income per share - basic |
$ |
0.67 |
|
|
$ |
0.25 |
|
|
$ |
0.47 |
|
|
|
$ |
0.67 |
|
|
$ |
0.47 |
|
|
Income per share - diluted |
|
0.67 |
|
|
|
0.24 |
|
|
|
0.47 |
|
|
|
|
0.67 |
|
|
|
0.47 |
|
|
Cash dividends paid |
|
0.25 |
|
|
|
0.25 |
|
|
|
0.24 |
|
|
|
|
0.25 |
|
|
|
0.24 |
|
|
Book value per share |
|
24.19 |
|
|
|
24.13 |
|
|
|
23.64 |
|
|
|
|
24.19 |
|
|
|
23.64 |
|
|
Book value per share - tangible (a) |
|
19.00 |
|
|
|
18.92 |
|
|
|
18.38 |
|
|
|
|
19.00 |
|
|
|
18.38 |
|
|
Closing market price |
|
37.60 |
|
|
|
38.30 |
|
|
|
37.25 |
|
|
|
|
37.60 |
|
|
|
37.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
1.28 |
|
% |
|
0.47 |
|
% |
|
0.96 |
|
% |
|
1.28 |
|
% |
|
0.96 |
|
% |
Return on average equity |
|
11.10 |
|
|
|
4.00 |
|
|
|
7.99 |
|
|
|
|
11.10 |
|
|
|
7.99 |
|
|
Return on average tangible equity (b) |
|
14.29 |
|
|
|
5.21 |
|
|
|
10.56 |
|
|
|
|
14.29 |
|
|
|
10.56 |
|
|
Average equity to average assets |
|
11.52 |
|
|
|
11.64 |
|
|
|
11.97 |
|
|
|
|
11.52 |
|
|
|
11.97 |
|
|
Tangible equity to tangible assets (a) |
|
9.30 |
|
|
|
9.24 |
|
|
|
9.51 |
|
|
|
|
9.30 |
|
|
|
9.51 |
|
|
Net interest margin, taxable equivalent |
|
3.46 |
|
|
|
3.46 |
|
|
|
3.44 |
|
|
|
|
3.46 |
|
|
|
3.44 |
|
|
Efficiency ratio (c) |
|
|
59.79 |
|
|
|
59.93 |
|
|
|
62.97 |
|
|
|
|
59.79 |
|
|
|
62.97 |
|
|
Effective tax rate |
|
|
19.48 |
|
|
|
70.64 |
|
|
|
28.27 |
|
|
|
|
19.48 |
|
|
|
28.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERIOD-END BALANCES |
|
|
|
|
|
|
|
|
|
|
|
Securities |
|
$ |
317,889 |
|
|
$ |
327,447 |
|
|
$ |
298,059 |
|
|
|
$ |
317,889 |
|
|
$ |
298,059 |
|
|
Loans held for sale |
|
1,792 |
|
|
|
1,639 |
|
|
|
1,872 |
|
|
|
|
1,792 |
|
|
|
1,872 |
|
|
Loans, net of unearned income |
|
1,321,221 |
|
|
|
1,336,125 |
|
|
|
1,219,958 |
|
|
|
|
1,321,221 |
|
|
|
1,219,958 |
|
|
Goodwill and other intangibles |
|
44,986 |
|
|
|
45,063 |
|
|
|
45,426 |
|
|
|
|
44,986 |
|
|
|
45,426 |
|
|
Assets |
|
|
|
1,817,574 |
|
|
|
1,816,078 |
|
|
|
1,715,805 |
|
|
|
|
1,817,574 |
|
|
|
1,715,805 |
|
|
Assets - tangible (a) |
|
1,772,588 |
|
|
|
1,771,015 |
|
|
|
1,670,379 |
|
|
|
|
1,772,588 |
|
|
|
1,670,379 |
|
|
Deposits |
|
|
1,559,251 |
|
|
|
1,534,726 |
|
|
|
1,416,104 |
|
|
|
|
1,559,251 |
|
|
|
1,416,104 |
|
|
Customer repurchase agreements |
|
10,466 |
|
|
|
10,726 |
|
|
|
47,776 |
|
|
|
|
10,466 |
|
|
|
47,776 |
|
|
Other short-term borrowings |
|
- |
|
|
|
24,000 |
|
|
|
- |
|
|
|
|
- |
|
|
|
- |
|
|
Long-term borrowings |
|
27,851 |
|
|
|
27,826 |
|
|
|
37,734 |
|
|
|
|
27,851 |
|
|
|
37,734 |
|
|
Shareholders' equity |
|
209,840 |
|
|
|
208,717 |
|
|
|
204,241 |
|
|
|
|
209,840 |
|
|
|
204,241 |
|
|
Shareholders' equity - tangible (a) |
|
164,854 |
|
|
|
163,654 |
|
|
|
158,815 |
|
|
|
|
164,854 |
|
|
|
158,815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
Securities (d) |
|
$ |
312,783 |
|
|
$ |
304,254 |
|
|
$ |
324,588 |
|
|
|
$ |
312,783 |
|
|
$ |
324,588 |
|
|
Loans held for sale |
|
2,037 |
|
|
|
4,269 |
|
|
|
2,414 |
|
|
|
|
2,037 |
|
|
|
2,414 |
|
|
Loans, net of unearned income |
|
1,338,058 |
|
|
|
1,301,833 |
|
|
|
1,195,560 |
|
|
|
|
1,338,058 |
|
|
|
1,195,560 |
|
|
Interest-earning assets |
|
1,698,451 |
|
|
|
1,695,091 |
|
|
|
1,574,460 |
|
|
|
|
1,698,451 |
|
|
|
1,574,460 |
|
|
Goodwill and other intangibles |
|
45,031 |
|
|
|
45,109 |
|
|
|
45,517 |
|
|
|
|
45,031 |
|
|
|
45,517 |
|
|
Assets |
|
|
|
1,818,429 |
|
|
|
1,820,499 |
|
|
|
1,699,730 |
|
|
|
|
1,818,429 |
|
|
|
1,699,730 |
|
|
Assets - tangible (a) |
|
1,773,398 |
|
|
|
1,775,390 |
|
|
|
1,654,213 |
|
|
|
|
1,773,398 |
|
|
|
1,654,213 |
|
|
Interest-bearing deposits |
|
1,157,122 |
|
|
|
1,109,286 |
|
|
|
1,021,110 |
|
|
|
|
1,157,122 |
|
|
|
1,021,110 |
|
|
Deposits |
|
|
1,557,149 |
|
|
|
1,520,665 |
|
|
|
1,392,117 |
|
|
|
|
1,557,149 |
|
|
|
1,392,117 |
|
|
Customer repurchase agreements |
|
12,247 |
|
|
|
42,540 |
|
|
|
45,106 |
|
|
|
|
12,247 |
|
|
|
45,106 |
|
|
Other short-term borrowings |
|
2,183 |
|
|
|
951 |
|
|
|
11,833 |
|
|
|
|
2,183 |
|
|
|
11,833 |
|
|
Long-term borrowings |
|
27,836 |
|
|
|
34,331 |
|
|
|
37,717 |
|
|
|
|
27,836 |
|
|
|
37,717 |
|
|
Shareholders' equity |
|
209,433 |
|
|
|
211,864 |
|
|
|
203,459 |
|
|
|
|
209,433 |
|
|
|
203,459 |
|
|
Shareholders' equity - tangible (a) |
|
164,402 |
|
|
|
166,755 |
|
|
|
157,942 |
|
|
|
|
164,402 |
|
|
|
157,942 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
American National Bankshares Inc. |
|
|
|
|
|
|
|
|
|
|
|
Financial Highlights |
|
|
|
|
|
|
|
|
|
|
|
|
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st Qtr |
|
4th Qtr |
|
1st Qtr |
|
|
YTD |
|
YTD |
|
|
|
|
|
2018 |
|
2017 |
|
2017 |
|
|
2018 |
|
2017 |
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding - basic |
|
8,669,728 |
|
|
|
8,648,494 |
|
|
|
8,633,219 |
|
|
|
|
8,669,728 |
|
|
|
8,633,219 |
|
|
Average shares outstanding - diluted |
|
8,687,351 |
|
|
|
8,668,765 |
|
|
|
8,651,139 |
|
|
|
|
8,687,351 |
|
|
|
8,651,139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE FOR LOAN LOSSES |
|
|
|
|
|
|
|
|
|
|
|
Beginning balance |
$ |
13,603 |
|
|
$ |
13,858 |
|
|
$ |
12,801 |
|
|
|
$ |
13,603 |
|
|
$ |
12,801 |
|
|
Provision for loan losses |
|
(44 |
) |
|
|
(74 |
) |
|
|
300 |
|
|
|
|
(44 |
) |
|
|
300 |
|
|
Charge-offs |
|
|
(44 |
) |
|
|
(280 |
) |
|
|
(49 |
) |
|
|
|
(44 |
) |
|
|
(49 |
) |
|
Recoveries |
|
|
60 |
|
|
|
99 |
|
|
|
56 |
|
|
|
|
60 |
|
|
|
56 |
|
|
Ending balance |
|
$ |
13,575 |
|
|
$ |
13,603 |
|
|
$ |
13,108 |
|
|
|
$ |
13,575 |
|
|
$ |
13,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOANS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
$ |
93,031 |
|
|
$ |
123,147 |
|
|
$ |
130,691 |
|
|
|
$ |
93,031 |
|
|
$ |
130,691 |
|
|
Commercial real estate |
|
624,164 |
|
|
|
637,701 |
|
|
|
538,069 |
|
|
|
|
624,164 |
|
|
|
538,069 |
|
|
Residential real estate |
|
207,256 |
|
|
|
209,326 |
|
|
|
216,035 |
|
|
|
|
207,256 |
|
|
|
216,035 |
|
|
Home equity |
|
|
108,024 |
|
|
|
109,857 |
|
|
|
110,844 |
|
|
|
|
108,024 |
|
|
|
110,844 |
|
|
Commercial and industrial |
|
284,257 |
|
|
|
251,666 |
|
|
|
219,455 |
|
|
|
|
284,257 |
|
|
|
219,455 |
|
|
Consumer |
|
|
4,489 |
|
|
|
4,428 |
|
|
|
4,864 |
|
|
|
|
4,489 |
|
|
|
4,864 |
|
|
Total |
|
|
$ |
1,321,221 |
|
|
$ |
1,336,125 |
|
|
$ |
1,219,958 |
|
|
|
$ |
1,321,221 |
|
|
$ |
1,219,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING ASSETS AT PERIOD-END |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans: |
|
|
|
|
|
|
|
|
|
|
|
90 days past due and accruing |
$ |
273 |
|
|
$ |
359 |
|
|
$ |
1,061 |
|
|
|
$ |
273 |
|
|
$ |
1,061 |
|
|
Nonaccrual |
|
|
1,598 |
|
|
|
2,201 |
|
|
|
2,428 |
|
|
|
|
1,598 |
|
|
|
2,428 |
|
|
Other real estate owned |
|
1,716 |
|
|
|
1,225 |
|
|
|
1,664 |
|
|
|
|
1,716 |
|
|
|
1,664 |
|
|
Nonperforming assets |
$ |
3,587 |
|
|
$ |
3,785 |
|
|
$ |
5,153 |
|
|
|
$ |
3,587 |
|
|
$ |
5,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans |
|
1.03 |
|
% |
|
1.02 |
|
% |
|
1.07 |
|
% |
|
1.03 |
|
% |
|
1.07 |
|
% |
Allowance for loan losses to |
|
|
|
|
|
|
|
|
|
|
|
nonperforming loans |
|
725.55 |
|
|
|
531.37 |
|
|
|
375.70 |
|
|
|
|
725.55 |
|
|
|
375.70 |
|
|
Nonperforming assets to total assets |
|
0.20 |
|
|
|
0.21 |
|
|
|
0.30 |
|
|
|
|
0.20 |
|
|
|
0.30 |
|
|
Nonperforming loans to total loans |
|
0.14 |
|
|
|
0.19 |
|
|
|
0.29 |
|
|
|
|
0.14 |
|
|
|
0.29 |
|
|
Annualized net charge-offs (recoveries) |
|
|
|
|
|
|
|
|
|
|
|
to average loans |
|
0.00 |
|
|
|
0.06 |
|
|
|
0.00 |
|
|
|
|
0.00 |
|
|
|
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER DATA |
|
|
|
|
|
|
|
|
|
|
|
|
Fiduciary assets at period-end (e) (f) |
$ |
509,668 |
|
|
$ |
518,284 |
|
|
$ |
519,901 |
|
|
|
$ |
509,668 |
|
|
$ |
519,901 |
|
|
Retail brokerage assets at period-end (e) (f) |
$ |
316,064 |
|
|
$ |
321,151 |
|
|
$ |
292,505 |
|
|
|
$ |
316,064 |
|
|
$ |
292,505 |
|
|
Number full-time equivalent employees (g) |
|
326 |
|
|
|
328 |
|
|
|
326 |
|
|
|
|
326 |
|
|
|
326 |
|
|
Number of full service offices |
|
26 |
|
|
|
26 |
|
|
|
27 |
|
|
|
|
26 |
|
|
|
27 |
|
|
Number of loan production offices |
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
|
2 |
|
|
|
2 |
|
|
Number of ATM's |
|
|
34 |
|
|
|
34 |
|
|
|
34 |
|
|
|
|
34 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 March 31, 2018 and
2017 |
(Dollars in thousands) |
Unaudited |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest |
|
|
|
|
|
|
|
|
Average Balance |
|
Income/Expense |
|
Yield/Rate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial |
$ |
258,552 |
|
$ |
219,922 |
|
$ |
2,444 |
|
$ |
2,054 |
|
3.83 |
% |
3.79 |
% |
Real estate |
|
1,077,243 |
|
|
973,215 |
|
|
12,189 |
|
|
10,624 |
|
4.53 |
|
4.37 |
|
Consumer |
|
4,300 |
|
|
4,837 |
|
|
76 |
|
|
91 |
|
7.17 |
|
7.63 |
|
Total loans |
|
1,340,095 |
|
|
1,197,974 |
|
|
14,709 |
|
|
12,769 |
|
4.40 |
|
4.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal agencies & GSEs |
|
103,199 |
|
|
96,965 |
|
|
517 |
|
|
442 |
|
2.00 |
|
1.82 |
|
Mortgage-backed & CMOs |
|
108,826 |
|
|
78,054 |
|
|
600 |
|
|
413 |
|
2.21 |
|
2.12 |
|
State and municipal |
|
|
86,336 |
|
|
131,397 |
|
|
634 |
|
|
1,152 |
|
2.94 |
|
3.51 |
|
Other |
|
|
|
14,422 |
|
|
18,172 |
|
|
175 |
|
|
186 |
|
4.85 |
|
4.09 |
|
Total
securities |
|
|
|
312,783 |
|
|
324,588 |
|
|
1,926 |
|
|
2,193 |
|
2.46 |
|
2.70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits in other banks |
|
|
45,573 |
|
|
51,898 |
|
|
188 |
|
|
109 |
|
1.67 |
|
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets |
|
1,698,451 |
|
|
1,574,460 |
|
|
16,823 |
|
|
15,071 |
|
3.97 |
|
3.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-earning assets |
|
|
|
119,978 |
|
|
125,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,818,429 |
|
$ |
1,699,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand |
|
|
$ |
232,383 |
|
$ |
215,930 |
|
|
11 |
|
|
11 |
|
0.02 |
|
0.02 |
|
Money market |
|
|
410,171 |
|
|
305,639 |
|
|
783 |
|
|
241 |
|
0.77 |
|
0.32 |
|
Savings |
|
|
|
130,708 |
|
|
124,250 |
|
|
9 |
|
|
9 |
|
0.03 |
|
0.03 |
|
Time |
|
|
|
383,860 |
|
|
375,291 |
|
|
1,022 |
|
|
939 |
|
1.08 |
|
1.01 |
|
Total deposits |
|
1,157,122 |
|
|
1,021,110 |
|
|
1,825 |
|
|
1,200 |
|
0.64 |
|
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Customer repurchase agreements |
|
12,247 |
|
|
45,106 |
|
|
1 |
|
|
1 |
|
0.03 |
|
0.01 |
|
Other short-term borrowings |
|
|
2,183 |
|
|
11,833 |
|
|
9 |
|
|
27 |
|
1.65 |
|
0.91 |
|
Long-term borrowings |
|
|
27,836 |
|
|
37,717 |
|
|
290 |
|
|
319 |
|
4.17 |
|
3.38 |
|
Total interest-bearing |
|
|
|
|
|
|
|
|
|
|
|
|
|
liabilities |
|
|
1,199,388 |
|
|
1,115,766 |
|
|
2,125 |
|
|
1,547 |
|
0.72 |
|
0.56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest bearing demand deposits |
|
400,027 |
|
|
371,007 |
|
|
|
|
|
|
|
|
|
Other
liabilities |
|
|
|
9,581 |
|
|
9,498 |
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
209,433 |
|
|
203,459 |
|
|
|
|
|
|
|
|
|
Total liabilities and |
|
|
|
|
|
|
|
|
|
|
|
|
shareholders' equity |
$ |
1,818,429 |
|
$ |
1,699,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
rate spread |
|
|
|
|
|
|
|
|
|
|
3.25 |
% |
3.28 |
% |
Net
interest margin |
|
|
|
|
|
|
|
|
|
|
3.46 |
% |
3.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (taxable equivalent basis) |
|
|
|
|
14,698 |
|
|
13,524 |
|
|
|
|
|
Less: Taxable equivalent adjustment (a) |
|
|
|
|
|
155 |
|
|
390 |
|
|
|
|
|
Net
interest income |
|
|
|
|
|
|
$ |
14,543 |
|
$ |
13,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) - Calculated using 21% and 35% statutory tax rate in 2018
and 2017, respectively, due to tax rate change. |
|
|
|
Contact: |
|
William W. Traynham, Chief Financial Officer |
|
|
434-773-2242 |
|
|
traynhamw@amnb.com |
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