SOURCE: American National Bankshares Inc.

American National Bankshares Inc.

January 21, 2010 16:30 ET

American National Bankshares Inc. Reports Fourth Quarter 2009 Earnings

DANVILLE, VA--(Marketwire - January 21, 2010) - American National Bankshares Inc. (NASDAQ: AMNB)


--  Q4 net income of $2,169,000 and diluted EPS of $0.35 per share
--  Q4 net interest margin 3.88%
--  Average shareholders' equity of $105.3 million represents 12.93% of
    assets
    

American National Bankshares Inc. (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced fourth quarter 2009 net income of $2,169,000 compared to $1,683,000 for the same quarter in 2008, a 28.9% increase. Basic earnings per share were $0.36 for the 2009 quarter compared to $0.28 for the 2008 quarter. Diluted earnings per share were $0.35 for the 2009 quarter compared to $0.28 for the 2008 quarter. This net income produced returns on average assets of 1.07% and on average equity of 8.24%. For the quarter, return on tangible equity was 11.03%.

Net income for 2009 was $6,810,000 compared to $8,021,000 for 2008, a 15.1% decline. Earnings per share, basic and diluted, were $1.12 for 2009 compared to $1.32 basic and $1.31 diluted for 2008. Earnings for 2009 were adversely impacted by a first quarter $1.2 million pre-tax charge writing down other real estate owned and increased FDIC premiums and a FDIC special assessment.

Financial Performance and Overview

Charles H. Majors, President and Chief Executive Officer, stated, "We are very pleased with our fourth quarter earnings. Our income was almost $2.2 million, a 29% improvement over the fourth quarter 2008. This increase was driven by improved net interest income, a diminished need for loan loss provision, strong secondary market mortgage fee income and ongoing cost containment.

"For the year just ended, our net income was $6.8 million. We were disappointed that the earnings were down 15% from 2008, but in the context of the year's events we believe that the Bank had a good year.

"During 2009 we experienced continued historically low interest rates and an ongoing massive deleveraging in the commercial and consumer sectors of the economy. The result was a 7.6% decline in the size of our loan portfolio and virtually no dollar increase in our net interest income.

"Trust income was down mostly as a result of wide swings in the stock market and, therefore, the market value of assets under management.

"Service charge income declined as a result of decreasing fee income related to overdrafts.

"Secondary market mortgage income boomed during the year, fueled by low interest rates and a newly enacted home buyers' tax credit.

"One of the largest factors impacting income was a $1.2 million write down related to foreclosed real estate.

"Our noninterest expenses for 2009 increased $1.2 million or 5.4%, over 2008. However, the FDIC deposit insurance premium increase and special assessment accounted for $1 million of that increase."

Majors concluded, "We are just beginning to see some possible signs of an uptick in demand for loans. The economic recovery may well be painfully slow, but our Bank is ready, willing and able to help our market areas move as quickly as possible to more normal levels of economic activity."

Capital

American National's capital ratios are among the highest in its peer group. For the fourth quarter of 2009, average shareholders' equity was 12.93% of average assets.

Credit Quality Measurements

Nonperforming assets ($3.6 million of non-accrual loans and $3.4 million of foreclosed real estate) were well below industry averages and represented 0.87% of total assets at December 31, 2009, compared to 0.91% at December 31, 2008. During the fourth quarter, non-accrual loans increased $536,000 to $3.6 million. During the same period foreclosed real estate decreased $1.1 million to $3.4 million.

The allowance for loans losses was $8.2 million or 1.55% of loans at December 31, 2009, compared to 1.37% at December 31, 2008. Net charge offs were 0.24% for 2009 compared to 0.21% for 2008.

Net Interest Income

Net interest income, on a taxable equivalent basis, increased to $7,208,000 in the fourth quarter of 2009 from $6,933,000 in fourth quarter of 2008, an increase of 4.0%. Net interest income has been adversely impacted by historically low market interest rates and shifts between categories of earning assets. The Bank has compensated for that impact by reducing the cost of its interest bearing liabilities. The Company's net interest margin improved two basis point (0.03%) in the fourth quarter 2009 compared to the same quarter in 2008. However, for the year, the margin declined six basis points (0.06%).

Noninterest Income

Noninterest income totaled $1,937,000 in the fourth quarter of 2009, compared with $1,875,000 in the fourth quarter of 2008, a 3.3% increase. Noninterest income was negatively impacted by $253,000 in losses on disposition of $1.1 million in other real estate owned during the quarter. However significant increases in secondary market mortgage income and smaller increases in other categories offset that negative impact.

Noninterest Expense

Noninterest expense totaled $5,524,000 in the fourth quarter of 2009, compared to $5,547,000 in the fourth quarter of 2008, a 0.4% decrease. The major factor impacting noninterest expense was deposit insurance costs. During the fourth quarter the Bank incurred costs of $202,000 compared to $92,000 for the prior year quarter, a 119% increase. For the year, FDIC costs increased $1,006,000 or 558% over the prior year. These increases were due primarily to industry-wide conditions which resulted in increased FDIC costs for all member Banks.

About American National

American National Bankshares Inc. is a Bank holding company with assets of $809 million. Headquartered in Danville, Virginia, it is the holding company of American National Bank and Trust Company, a community Bank serving Southern and Central Virginia and the northern portion of Central North Carolina with nineteen Banking offices. The Bank also manages an additional $413 million of assets in its Trust and Investment Services Division. Additional information is available on the Bank's website at www.amnb.com. The shares of American National Bankshares Inc. are traded on the NASDAQ Global Select Market under the symbol "AMNB."

Forward-Looking Statements

This press release may contain "forward-looking statements," within the meaning of federal securities laws that involve significant risks and uncertainties. Statements herein are based on certain assumptions and analyses by the Company 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; and significant changes in securities markets. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Company's most recent Form 10-K report and other documents filed with the Securities and Exchange Commission. American National Bankshares Inc. 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. and Subsidiaries
                        Consolidated Balance Sheets
          (Dollars in thousands, except share and per share data)
                                Unaudited


                                                           December 31
                                                      ---------  ---------
ASSETS                                                  2009       2008
                                                      ---------  ---------

Cash and due from banks                               $  13,250  $  15,909
Interest-bearing deposits in other banks                 10,693      8,189

Securities available for sale, at fair value            193,157    133,695
Securities held to maturity                               6,529      7,121
                                                      ---------  ---------
    Total securities                                    199,686    140,816
                                                      ---------  ---------

Loans held for sale                                       2,490      1,764

Loans                                                   527,991    571,110
  Less allowance for loan losses                         (8,166)    (7,824)
                                                      ---------  ---------
    Net Loans                                           519,825    563,286
                                                      ---------  ---------

Premises and equipment, net                              19,195     17,129
Other real estate owned                                   3,414      4,311
Goodwill                                                 22,468     22,468
Core deposit intangibles, net                             1,698      2,075
Accrued interest receivable and other assets             16,254     13,237
                                                      ---------  ---------

    Total assets                                      $ 808,973  $ 789,184
                                                      =========  =========

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:
  Demand deposits -- noninterest-bearing              $ 101,735  $  95,703
  Demand deposits -- interest-bearing                    97,025    116,132
  Money market deposits                                  75,554     56,615
  Savings deposits                                       61,873     59,624
  Time deposits                                         268,086    261,064
                                                      ---------  ---------
    Total deposits                                      604,273    589,138

  Short-term borrowings:
    Customer repurchase agreements                       65,929     51,741
    Other short-term borrowings                               -      7,850
  Long-term borrowings                                    8,638     13,787
  Trust preferred capital notes                          20,619     20,619
  Accrued interest payable and other liabilities          3,125      3,749
                                                      ---------  ---------
    Total liabilities                                   702,584    686,884
                                                      ---------  ---------

Shareholders' equity:
  Common stock, $1 par, 10,000,000 shares authorized,
  6,110,335 shares outstanding at December 31, 2009
   and
  6,085,628 shares outstanding at December 31, 2008       6,110      6,086
  Capital in excess of par value                         26,962     26,491
  Retained earnings                                      72,208     71,090
  Accumulated other comprehensive income (loss), net      1,109     (1,367)
                                                      ---------  ---------
    Total shareholders' equity                          106,389    102,300
                                                      ---------  ---------

    Total liabilities and shareholders' equity        $ 808,973  $ 789,184
                                                      =========  =========



            American National Bankshares Inc. and Subsidiaries
                    Consolidated Statements of Income
          (Dollars in thousands, except share and per share data)
                                Unaudited


                                Three Months Ended    Twelve Months Ended
                                     December 31           December 31
                                ---------  ---------  ---------  ---------
                                  2009       2008       2009       2008
                                ---------  ---------  ---------  ---------
  Interest and Dividend Income:
   Interest and fees on loans   $   7,445  $   8,594  $  31,062  $  35,941
   Interest and dividends on
    securities:
     Taxable                        1,259      1,151      4,853      4,795
     Tax-exempt                       437        381      1,673      1,621
     Dividends                         25         23         95        214
   Other interest income               91         76        378        301
                                ---------  ---------  ---------  ---------
     Total interest and
      dividend income               9,257     10,225     38,061     42,872
                                ---------  ---------  ---------  ---------

Interest Expense:
   Interest on deposits             1,771      2,737      8,399     12,280
   Interest on short-term
    borrowings                        127        289        675      1,629
   Interest on long-term
    borrowings                         66        134        342        557
   Interest on trust preferred
    capital notes                     343        343      1,373      1,373
                                ---------  ---------  ---------  ---------
     Total interest expense         2,307      3,503     10,789     15,839
                                ---------  ---------  ---------  ---------

  Net Interest Income               6,950      6,722     27,272     27,033
   Provision for loan losses          328        600      1,662      1,620
                                ---------  ---------  ---------  ---------

Net Interest Income After
 Provision
 for Loan Losses                    6,622      6,122     25,610     25,413
                                ---------  ---------  ---------  ---------

  Noninterest Income:
   Trust fees                         815        770      3,153      3,467
   Service charges on deposit
    accounts                          536        555      2,085      2,324
   Other fees and commissions         264        235      1,014        857
   Mortgage banking income            390        155      1,605        788
   Brokerage fees                      32         61        185        431
   Securities gains (losses),
    net                                 1          -          3       (195)
   Impairment of securities             -          -          -       (255)
   Net loss on foreclosed real
    estate                           (253)       (13)    (1,475)       (20)
   Other                              152        112        473        516
                                ---------  ---------  ---------  ---------
     Total noninterest income       1,937      1,875      7,043      7,913
                                ---------  ---------  ---------  ---------

  Noninterest Expense:
   Salaries                         2,314      2,376     10,048      9,792
   Employee benefits                  750        789      3,201      3,001
   Occupancy and equipment            762        681      2,927      2,788
   FDIC assessment                    202         92      1,186        180
   Bank franchise tax                 159        172        642        694
   Core deposit intangible
    amortization                       94         94        377        377
   Other                            1,243      1,343      4,937      5,292
                                ---------  ---------  ---------  ---------
     Total noninterest expense      5,524      5,547     23,318     22,124
                                ---------  ---------  ---------  ---------

Income Before Income Taxes          3,035      2,450      9,335     11,202
Income Taxes                          866        767      2,525      3,181
                                ---------  ---------  ---------  ---------
  Net Income                    $   2,169  $   1,683  $   6,810  $   8,021
                                =========  =========  =========  =========

Net Income Per Common Share:
   Basic                        $    0.36  $    0.28  $    1.12  $    1.32
   Diluted                      $    0.35  $    0.28  $    1.12  $    1.31
Average Common Shares
 Outstanding:
   Basic                        6,108,340  6,086,868  6,097,810  6,096,649
   Diluted                      6,116,800  6,090,844  6,102,895  6,105,154



            American National Bankshares Inc. and Subsidiaries
                           Financial Highlights


  (In thousands,
   except share,
   ratio and
  nonfinancial data,
   unaudited)         4th Qtr    3rd Qtr    4th Qtr      YTD        YTD
                       2009       2009       2008       2009       2008
                     ---------  ---------  ---------  ---------  ---------
EARNINGS
  Interest income    $   9,257  $   9,464  $  10,225  $  38,061  $  42,872
  Interest expense       2,307      2,464      3,503     10,789     15,839
  Net interest
   income                6,950      7,000      6,722     27,272     27,033
  Provision for loan
   losses                  328        492        600      1,662      1,620
  Noninterest income     1,937      2,119      1,875      7,043      7,913
  Noninterest
   expense               5,524      5,598      5,547     23,318     22,124
  Income taxes             866        862        767      2,525      3,181
  Net income             2,169      2,167      1,683      6,810      8,021

PER COMMON SHARE
  Earnings per share
   - basic           $    0.36  $    0.36  $    0.28  $    1.12  $    1.32
  Earnings per share
   - diluted              0.35       0.35       0.28       1.12       1.31
  Cash dividends
   declared               0.23       0.23       0.23       0.92       0.92
  Book value per
   share                 17.41      17.18      16.81      17.41      16.81
  Book value per
   share - tangible
   (a)                   13.46      13.20      12.78      13.46      12.78
  Closing market
   price                 21.90      21.82      17.00      21.90      17.00

FINANCIAL RATIOS
  Return on average
   assets                 1.07%      1.07%      0.86%      0.84%      1.02%
  Return on average
   equity                 8.24       8.38       6.53       6.57       7.79
  Return on average
   tangible equity
   (b)                   11.03      11.30       8.90       8.94      10.60
  Average equity to
   average assets        12.93      12.77      13.13      12.79      13.10
  Net interest
   margin, taxable
   equivalent             3.88       3.91       3.85       3.81       3.87
  Efficiency ratio       58.79      59.77      62.36      63.46      60.83
  Effective tax rate     28.53      28.46      31.31      27.05      28.40

PERIOD-END BALANCES
  Securities           199,686  $ 188,493    140,816    199,686  $ 140,816
  Loans held for
   sale                  2,490      3,840      1,764      2,490      1,764
  Loans, net of
   unearned income     527,991    539,188    571,110    527,991    571,110
  Goodwill and other
   intangibles          24,166     24,260     24,543     24,166     24,543
  Assets               808,973    810,346    789,184    808,973    789,184
  Assets - tangible
   (a)                 784,807    786,086    764,641    784,807    764,641
  Deposits             604,273    596,295    589,138    604,273    589,138
  Customer
   repurchase
   agreements           65,929     71,339     51,741     65,929     51,741
  Other short-term
   borrowings                -      4,000      7,850          -      7,850
  Long-term
   borrowings           29,257     29,294     34,406     29,257     34,406
  Shareholders'
   equity              106,389    104,905    102,300    106,389    102,300
  Shareholders'
   equity - tangible
   (a)                  82,223     80,645     77,757     82,223     77,757

AVERAGE BALANCES
  Securities         $ 167,546  $ 159,314  $ 137,947  $ 153,237  $ 145,371
  Loans held for
   sale                  4,394      6,540      1,669      5,436      1,869
  Loans, net of
   unearned income     540,103    547,075    571,081    553,831    565,530
  Interest-earning
   assets              744,007    741,194    720,197    741,308    722,009
  Goodwill and other
   intangibles          24,217     24,314     24,600     24,360     24,736
  Assets               814,232    810,064    785,182    810,140    785,868
  Assets - tangible
   (a)                 790,015    785,750    760,582    785,780    761,132
  Interest-bearing
   deposits            499,725    503,793    491,701    507,014    483,544
  Deposits             604,506    606,134    590,196    606,700    581,701
  Customer
   repurchase
   agreements           70,014     65,341     49,868     63,115     52,264
  Other short-term
   borrowings               91        460      3,788      1,037      9,818
  Long-term
   borrowings           29,287     29,325     34,436     30,849     34,235
  Shareholders'
   equity              105,302    103,411    103,126    103,625    102,917
  Shareholders'
   equity - tangible
   (a)                  81,085     79,097     78,526     79,265     78,181

CAPITAL
  Average shares
   outstanding -
   basic             6,108,340  6,104,505  6,086,868  6,097,810  6,096,649
  Average shares
   outstanding -
   diluted           6,116,800  6,111,913  6,090,844  6,102,895  6,105,154
  Shares repurchased         -          -      7,100      7,600     46,150
  Average price of
   shares
   repurchased       $       -  $       -  $   16.40  $   15.92  $   19.58

ALLOWANCE FOR LOAN
 LOSSES
  Beginning balance  $   8,260  $   7,934  $   8,083  $   7,824  $   7,395
  Provision for loan
   losses                  328        492        600      1,662      1,620
  Charge-offs             (485)      (318)    (1,012)    (1,601)    (1,564)
  Recoveries                63        152        153        281        373
                     ---------  ---------  ---------  ---------  ---------
  Ending balance     $   8,166  $   8,260  $   7,824  $   8,166  $   7,824

LOANS
  Construction and
   land development  $  40,371  $  46,175  $  63,361  $  40,371  $  63,361
  Commercial real
   estate              208,066    209,470    207,160    208,066    207,160
  Residential real
   estate              121,639    126,392    136,480    121,639    136,480
  Home equity           64,678     62,519     57,170     64,678     57,170
  Commercial and
   industrial           86,312     87,226     98,546     86,312     98,546
  Consumer               6,925      7,406      8,393      6,925      8,393
                     ---------  ---------  ---------  ---------  ---------
  Total              $ 527,991  $ 539,188  $ 571,110  $ 527,991  $ 571,110

NONPERFORMING ASSETS
 AT PERIOD-END
  Nonperforming
   loans:
    90 days past
     due             $       -  $       -  $       -  $       -  $       -
    Nonaccrual           3,642      3,106      2,845      3,642      2,845
  Foreclosed real
   estate                3,414      4,558      4,311      3,414      4,311
                     ---------  ---------  ---------  ---------  ---------
  Nonperforming
   assets            $   7,056  $   7,664  $   7,156  $   7,056  $   7,156

ASSET QUALITY RATIOS
  Annualized net
   chargeoffs to
   average loans          0.31%      0.12%      0.60%      0.24%      0.21%
  Nonperforming
   assets to total
   assets                 0.87       0.95       0.91       0.87       0.91
  Nonperforming
   loans to total
   loans                  0.69       0.58       0.50       0.69       0.50
  Allowance for loan
   losses to total
   loans                  1.55       1.53       1.37       1.55       1.37
  Allowance for loan
   losses to
  nonperforming
   loans                224.22     265.94     275.01     224.22     275.01

OTHER DATA
  Fiduciary assets
   at period-end (c) $ 358,124  $ 354,860  $ 326,614  $ 358,124  $ 326,614
  Retail brokerage
   assets at
   period-end (c)    $  54,696  $  63,893  $  84,348  $  54,696  $  84,348
  Number full-time
   equivalent
   employees (d)           238        246        258        238        258
  Number of full
   service offices          19         19         20         19         20
  Number of loan
   production
   offices                   2          2          1          2          1
  Number of ATM's           24         24         24         24         24




Notes:

  (a) - Excludes goodwill and other intangible assets
  (b) - Excludes amortization expense, net of tax, of intangible assets
  (c) - Market value
  (d) - Average for quarter
  N/A - Percentage change is not applicable or not meaningful



                       Net Interest Income Analysis
          For the Three Months Ended December 31, 2009 and 2008
                  (in thousands, except yields and rates)


                                         Interest             Average
                  Average Balance     Income/Expense        Yield/Rate
                ------------------- ------------------- ------------------
                  2009      2008      2009      2008      2009      2008
                --------- --------- --------- --------- --------  --------
Loans:
  Commercial    $  80,712 $  93,548 $     986 $   1,296     4.89%     5.54%
  Real estate     452,136   470,968     6,338     7,132     5.61      6.06
  Consumer          7,255     8,234       148       189     8.16      9.18
                --------- --------- --------- --------- --------  --------
    Total loans   540,103   572,750     7,472     8,617     5.53      6.02
                --------- --------- --------- --------- --------  --------

Securities:
  Federal
   agencies and
   GSE             61,858    43,373       555       533     3.59      4.92
  Mortgage-backed
   & CMO's         38,002    46,237       482       581     5.07      5.03
  State and
   municipal       59,358    43,180       839       595     5.65      5.51
  Other             8,328     5,157        76        34     3.65      2.64
                --------- --------- --------- --------- --------  --------
    Total
     securities   167,546   137,947     1,952     1,743     4.66      5.05
                --------- --------- --------- --------- --------  --------

Deposits in
 other banks       36,358     9,500        91        76     1.00      3.20
                --------- --------- --------- --------- --------  --------

  Total
   interest-
   earning
   assets         744,007   720,197     9,515    10,436     5.12      5.80
                                    --------- --------- --------  --------

Non-earning
 assets            70,225    64,985
                --------- ---------

    Total
     assets     $ 814,232 $ 785,182
                ========= =========

Deposits:
  Demand        $  94,764 $ 112,556        27       203     0.11      0.72
  Money market     72,342    57,514        74       232     0.41      1.61
  Savings          62,026    60,169        33        55     0.21      0.37
  Time            270,593   261,462     1,637     2,247     2.42      3.44
                --------- --------- --------- --------- --------  --------
    Total
     deposits     499,725   491,701     1,771     2,737     1.42      2.23

Customer
 repurchase
 agreements        70,014    49,868       127       274     0.73      2.20
Other
 short-term
 borrowings            91     6,788         0        15     0.39      0.88
Long-term
 borrowings        29,287    34,436       409       477     5.59      5.54
                --------- --------- --------- --------- --------  --------

  Total
   interest-
   bearing
   liabilites     599,117   582,793     2,307     3,503     1.54      2.40
                                    --------- --------- --------  --------

Noninterest
 bearing demand
 deposits         104,781    98,495
Other
 liabilities        5,032       768
Shareholders'
 equity           105,302   103,126
                --------- ---------
    Total
     liabilities
     and
     share-
     holders'
     equity     $ 814,232 $ 785,182
                ========= =========

Interest rate
 spread                                                     3.58%     3.40%
                                                        ========  ========
Net interest
 margin                                                     3.88%     3.85%
                                                        ========  ========

Net interest
 income
 (taxable
 equivalent
 basis)                                 7,208     6,933
Less: Taxable
 equivalent
 adjustment                               258       211
                                    --------- ---------
Net interest
 income                             $   6,950 $   6,722
                                    ========= =========



                       Net Interest Income Analysis
                    For the Years Ended 2009 and 2008
                  (in thousands, except yields and rates)


                                         Interest             Average
                  Average Balance     Income/Expense        Yield/Rate
                ------------------- ------------------- ------------------
                  2009      2008      2009      2008      2009      2008
                --------- --------- --------- --------- --------  --------
Loans:
  Commercial    $  88,551 $  91,117 $   4,213 $   5,515     4.76%     6.05%
  Real estate     463,093   467,508    26,294    29,712     5.68      6.36
  Consumer          7,623     8,774       659       795     8.64      9.06
                --------- --------- --------- --------- --------  --------
  Total loans     559,267   567,399    31,166    36,022     5.57      6.35
                --------- --------- --------- --------- --------  --------

Securities:
  Federal
   agencies and
   GSE             52,694    45,660     2,139     2,215     4.06      4.85
  Mortgage-backed
   & CMO's         40,363    47,997     2,100     2,433     5.20      5.07
  State and
   municipal       52,687    45,573     2,972     2,505     5.64      5.50
  Other             7,493     6,141       261       277     3.48      4.51
                --------- --------- --------- --------- --------  --------
  Total
   securities     153,237   145,371     7,472     7,430     4.88      5.11
                --------- --------- --------- --------- --------  --------

Deposits in
 other banks       28,804     9,239       378       301     1.31      3.26
                --------- --------- --------- --------- --------  --------

  Total
   interest-
   earning
   assets         741,308   722,009    39,016    43,753     5.26      6.06
                                    --------- --------- --------  --------

Non-earning
 assets            68,832    63,859
                --------- ---------

  Total assets  $ 810,140 $ 785,868
                ========= =========

Deposits:
  Demand        $  98,576 $ 109,492       290       803     0.29      0.73
  Money market     72,918    53,659       527     1,011     0.72      1.88
  Savings          62,219    61,620       148       331     0.24      0.54
  Time            273,301   258,773     7,434    10,135     2.72      3.92
                --------- --------- --------- --------- --------  --------
  Total
   deposits       507,014   483,544     8,399    12,280     1.66      2.54

Customer
 repurchase
 agreements        63,115    52,264       670     1,377     1.06      2.63
Other
 short-term
 borrowings         1,037     9,818         5       252     0.48      2.57
Long-term
 borrowings        30,849    34,235     1,715     1,930     5.56      5.64
                --------- --------- --------- --------- --------  --------

  Total
   interest-
   bearing
   liabilites     602,015   579,861    10,789    15,839     1.79      2.73
                --------- --------- --------- --------- --------  --------

Noninterest
 bearing demand
 deposits          99,686    98,157
Other
 liabilities        4,814     4,933
Shareholders'
 equity           103,625   102,917
                --------- ---------
  Total
   liabilities
   and
  shareholders'
   equity       $ 810,140 $ 785,868
                ========= =========

Interest rate
 spread                                                     3.47%     3.33%
                                                        ========  ========
Net interest
 margin                                                     3.81%     3.87%
                                                        ========  ========

Net interest
 income
 (taxable
 equivalent
 basis)                                28,227    27,914
Less: Taxable
 equivalent
 adjustment                               955       881
                                    --------- ---------
Net interest
 income                             $  27,272 $  27,033
                                    ========= =========

Contact Information

  • Contact:
    William W. Traynham
    Chief Financial Officer
    434-773-2242
    Email Contact