-- 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. (
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