DANVILLE, VA--(Marketwired - Apr 23, 2015) - American National Bankshares Inc. (
- Merger with MainStreet BankShares, Inc. ("MainStreet"), parent of Franklin Community Bank, N.A. ("Franklin"), closed January 1, 2015
- Q1 2015 net income of $3.5 million and diluted EPS of $0.40
- Net interest margin of 3.73% for Q1 2015
- Nonperforming assets 0.50% of total assets
- Average shareholders' equity of $196 million is 12.91% of average assets
American National Bankshares Inc. ("American National") (
Earnings for the 2015 quarter were favorably impacted by the January 2015 merger between American National and MainStreet Bankshares, Inc.
Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, reported, "The lead story for early 2015 is our acquisition of MainStreet and its banking subsidiary, Franklin Community Bank, N.A. This merger closed on January 1, 2015, and it is a wonderful way to start the New Year. We are delighted to welcome the Franklin County bankers and their customers into the American National community bank family and we plan to continue the high quality of service our Franklin customers have come to expect, with even more options in banking products and services.
"The merger with MainStreet has had a substantial impact on our balance sheet.
"At March 31, 2015, American National had $965,902,000 in loans compared to $783,369,000 at March 31, 2014, an increase of $182,533,000 or 23.3%. Of this increase, $112,901,000 or 61.8% relates directly to the MainStreet acquisition.
"Organic loan growth over the past year was $69,632,000 or 8.9%. Organic loan growth over the past quarter was $12,076,000 or 1.4%.
"At March 31, 2015, American National had $1,242,675,000 in deposits compared to $1,051,249,000 at March 31, 2014, an increase of $191,426,000 or 18.2%. Of this increase, $135,568,000 or 70.8% relates directly to the MainStreet acquisition. The deposit growth was strong in all categories, but notably in non-maturity (core) deposits. We are continuously attempting to grow core deposits and their affiliated relationships, but the challenge in this ongoing low rate environment is to do that in a cost effective and yet competitive manner. Our cost of interest bearing deposits for the first quarter was 0.52%, compared to 0.60% for the 2014 quarter.
"On the income statement side, our net income for the first quarter was $3,515,000, up from $3,450,000 in the 2014 quarter, an increase of $65,000 or 1.9%.
"We had several drivers that impacted quarterly results.
"The merger with MainStreet had a significant and positive impact to operating results.
"Provision for loan loss increased during the 2015 quarter, related to organic growth in loan volume and our regular review of cash flow expectations on loans acquired with deteriorated credit quality.
"Noninterest income was higher in the 2015 quarter by $453,000 or 16.8%, related mostly to the MainStreet merger.
"Noninterest expense was higher in the 2015 quarter by $1,624,000 or 19.3%, related mostly to the merger and to merger related, one-time expenses. The one-time merger costs were $359,000 for the quarter. "
Haley concluded, "The beginning of a New Year is a great time to reflect on strategy and corporate goals. We continue to believe that community banking is an industry where imagination and flexibility pay long term dividends. For American National, we will continue our focus on high quality organic growth, and at the same time prepare American National for the next appropriate strategic acquisition opportunity that may arise."
Capital
American National's capital ratios remain strong and exceed all regulatory requirements.
For the quarter ended March 31, 2015, average shareholders' equity was 12.91% of average assets, compared to 13.04% for the quarter ended December 31, 2014, and compared to 13.05% for the quarter ended March 31, 2014.
Book value per common share was $22.58 at March 31, 2015, compared to $22.07 at December 31, 2014, and $21.57 at March 31, 2014.
Tangible book value per common share was $17.09 at March 31, 2015, compared to $16.86 at December 31, 2014, and $16.27 at March 31, 2014.
Credit Quality Measurements
Non-performing assets ($5,123,000 of non-performing loans and $2,653,000 of other real estate owned) represented 0.50% of total assets at March 31, 2015, compared to 0.68% at March 31, 2014.
Annualized net charge offs to average loans was eight basis points 0.08% for the 2015 first quarter, compared to 1 basis point (0.01%) of net recoveries for the same quarter in 2014.
The allowance for loan losses as a percentage of total loans was 1.33% at March 31, 2015 compared to 1.61% at March 31, 2014. The largest driver of this change was the merger with MainStreet, whose loans have been marked to fair value at the merger date and whose related allowance for loan loss was eliminated in the valuation process.
Other real estate owned was $2,653,000 at March 31, 2015, compared to $3,233,000 at March 31, 2014, a decrease of $580,000 or 17.9%.
Merger related financial impact
The fair value adjustments related to our two recent mergers have had a favorable impact on pretax income for the American National.
The July 2011 merger with MidCarolina Financial Corporation ("MidCarolina") continues to have a positive, but declining, impact on net interest income and pretax income. For the first quarter of 2015, the fair value impact to net interest income for this acquisition was $410,000, compared to $605,000 for the comparable quarter in 2014. The net impact to pretax income for the first quarter of 2015 was $184,000, compared to $378,000 for the comparable quarter of 2014.
The January 2015 merger with MainStreet was closed at the beginning of this quarter. For the first quarter of 2015, the fair value impact to net interest income for this acquisition was $703,000. The net impact to pretax income for the first quarter of 2015 was $629,000.
Net Interest Income
Net interest income before provision for loan losses increased to $12,378,000 in the first quarter of 2015 from $10,459,000 in first quarter of 2014, an increase of $1,919,000 or 18.3%.
For the 2015 quarter, the net interest margin was 3.73% compared to 3.71% for the same quarter in 2014, an increase of two basis points. This increase was driven by higher levels of accretion income and greater volumes of earning assets.
Provision for loan losses
Provision expense for the first quarter of 2015 was $600,000 compared to zero for the first quarter of 2014.
The need for additional provision expense was driven primarily by an increase in loan volume, the regular quarterly review of expected cash flows on certain purchased credit impaired loans from the MidCarolina merger, and a small uptick in loan charge offs. It was partially mitigated by improving economic conditions and continuing strong asset quality metrics.
Noninterest Income
Noninterest income totaled $3,156,000 in the first quarter of 2015, compared with $2,703,000 in the first quarter of 2014, an increase of $453,000 or 16.8%. The primary driver of the increase was the increase in transaction volume related to the MainStreet merger.
Noninterest Expense
Noninterest expense totaled $10,047,000 in the first quarter of 2015, compared to $8,423,000 in the first quarter of 2014, an increase of $1,624,000 or 19.3%.
All expense categories were impacted by the MainStreet merger and the integration of Franklin Community Bank into American National's operations.
However, one time, merger related expense, related to the MainStreet acquisition, accounted for $359,000 or 22% of the increase. The operational conversion of the Franklin Community Bank was originally anticipated in late first quarter 2015. However, due to logistical issues between technology vendors it has been delayed until mid-May. Consequently, management expects there will be significant additional one time, merger related expense during the second quarter, mostly related to data processing system integration. The expenses in this category are one-time in nature, related directly to effecting the merger transaction, and are comprised of data processing, legal and accounting, investment banking, and change-in-control payments.
About American National
As of January 1, 2015, with the closing of the acquisition of MainStreet BankShares, Inc., American National Bankshares Inc. is a multi-state bank holding company with total assets of approximately $1.5 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 southern and central Virginia and north central North Carolina with 27 banking offices and two loan production offices. American National Bank and Trust Company also manages an additional $748 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.
Shares of American National are traded on the NASDAQ Global Select Market under the symbol "AMNB."
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; 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. and Subsidiaries | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (Dollars in thousands, except share and per share data) | ||||||||||
| Unaudited | ||||||||||
| March 31 | ||||||||||
| ASSETS | 2015 | 2014 | ||||||||
| Cash and due from banks | $ | 23,995 | $ | 25,880 | ||||||
| Interest-bearing deposits in other banks | 75,254 | 45,466 | ||||||||
| Federal funds sold | 13,616 | - | ||||||||
| Securities available for sale, at fair value | 352,208 | 349,123 | ||||||||
| Restricted stock, at cost | 5,336 | 4,529 | ||||||||
| Loans held for sale | 1,936 | 1,389 | ||||||||
| Loans | 965,902 | 783,369 | ||||||||
| Less allowance for loan losses | (12,844 | ) | (12,614 | ) | ||||||
| Net Loans | 953,058 | 770,755 | ||||||||
| Premises and equipment, net | 24,371 | 23,359 | ||||||||
| Other real estate owned, net | 2,653 | 3,233 | ||||||||
| Goodwill | 44,210 | 39,043 | ||||||||
| Core deposit intangibles, net | 3,583 | 2,828 | ||||||||
| Bank owned life insurance | 17,261 | 14,845 | ||||||||
| Accrued interest receivable and other assets | 22,617 | 19,352 | ||||||||
| Total assets | $ | 1,540,098 | $ | 1,299,802 | ||||||
| Liabilities | ||||||||||
| Demand deposits -- noninterest-bearing | $ | 289,818 | $ | 218,795 | ||||||
| Demand deposits -- interest-bearing | 229,721 | 170,894 | ||||||||
| Money market deposits | 202,706 | 194,528 | ||||||||
| Savings deposits | 110,104 | 89,024 | ||||||||
| Time deposits | 410,326 | 378,008 | ||||||||
| Total deposits | 1,242,675 | 1,051,249 | ||||||||
| Short-term borrowings: | ||||||||||
| Customer repurchase agreements | 53,664 | 34,153 | ||||||||
| Other short-term borrowings | - | - | ||||||||
| Long-term borrowings | 9,941 | 9,919 | ||||||||
| Trust preferred capital notes | 27,546 | 27,444 | ||||||||
| Accrued interest payable and other liabilities | 9,583 | 6,538 | ||||||||
| Total liabilities | 1,343,409 | 1,129,303 | ||||||||
| Shareholders' equity | ||||||||||
| Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | - | - | ||||||||
| Common stock, $1 par, 10,000,000 shares authorized, 8,727,696 shares outstanding at March 31, 2015 and 7,905,243 shares outstanding at March 31, 2014 | 8,710 | 7,905 | ||||||||
| Capital in excess of par value | 77,612 | 58,202 | ||||||||
| Retained earnings | 106,102 | 100,721 | ||||||||
| Accumulated other comprehensive income, net | 4,265 | 3,671 | ||||||||
| Total shareholders' equity | 196,689 | 170,499 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,540,098 | $ | 1,299,802 | ||||||
| American National Bankshares Inc. and Subsidiaries | ||||||||||
| Consolidated Statements of Income | ||||||||||
| (Dollars in thousands, except share and per share data) | ||||||||||
| Unaudited | ||||||||||
| Three Months Ended | ||||||||||
| March 31 | ||||||||||
| 2015 | 2014 | |||||||||
| Interest and Dividend Income: | ||||||||||
| Interest and fees on loans | $ | 11,770 | $ | 9,847 | ||||||
| Interest on federal funds sold | 4 | - | ||||||||
| Interest and dividends on securities: | ||||||||||
| Taxable | 975 | 964 | ||||||||
| Tax-exempt | 960 | 1,035 | ||||||||
| Dividends | 82 | 75 | ||||||||
| Other interest income | 48 | 33 | ||||||||
| Total interest and dividend income | 13,839 | 11,954 | ||||||||
| Interest Expense: | ||||||||||
| Interest on deposits | 1,194 | 1,229 | ||||||||
| Interest on short-term borrowings | 3 | 2 | ||||||||
| Interest on long-term borrowings | 80 | 80 | ||||||||
| Interest on trust preferred capital notes | 184 | 184 | ||||||||
| Total interest expense | 1,461 | 1,495 | ||||||||
| Net Interest Income | 12,378 | 10,459 | ||||||||
| Provision for loan losses | 600 | - | ||||||||
| Net Interest Income After Provision for Loan Losses | 11,778 | 10,459 | ||||||||
| Noninterest Income: | ||||||||||
| Trust fees | 952 | 1,122 | ||||||||
| Service charges on deposit accounts | 497 | 413 | ||||||||
| Other fees and commissions | 588 | 444 | ||||||||
| Mortgage banking income | 222 | 263 | ||||||||
| Securities gains, net | 310 | 39 | ||||||||
| Other | 587 | 422 | ||||||||
| Total noninterest income | 3,156 | 2,703 | ||||||||
| Noninterest Expense: | ||||||||||
| Salaries | 4,147 | 3,538 | ||||||||
| Employee benefits | 1,075 | 975 | ||||||||
| Occupancy and equipment | 1,172 | 936 | ||||||||
| FDIC assessment | 185 | 164 | ||||||||
| Bank franchise tax | 235 | 222 | ||||||||
| Core deposit intangible amortization | 301 | 331 | ||||||||
| Data processing | 462 | 348 | ||||||||
| Software | 283 | 262 | ||||||||
| Foreclosed real estate, net | (5 | ) | 16 | |||||||
| Merger related expenses | 359 | - | ||||||||
| Other | 1,833 | 1,631 | ||||||||
| Total noninterest expense | 10,047 | 8,423 | ||||||||
| Income Before Income Taxes | 4,887 | 4,739 | ||||||||
| Income Taxes | 1,372 | 1,289 | ||||||||
| Net Income | $ | 3,515 | $ | 3,450 | ||||||
| Net Income Per Common Share: | ||||||||||
| Basic | $ | 0.40 | $ | 0.44 | ||||||
| Diluted | $ | 0.40 | $ | 0.44 | ||||||
| Average Common Shares Outstanding: | ||||||||||
| Basic | 8,723,633 | 7,904,759 | ||||||||
| Diluted | 8,732,679 | 7,917,601 | ||||||||
| American National Bankshares Inc. and Subsidiaries | ||||||||||||||||
| Financial Highlights | ||||||||||||||||
| (In thousands, except share, ratio and nonfinancial data, unaudited) | 1st Qtr 2015 |
4th Qtr 2014 |
1st Qtr 2014 |
YTD 2015 |
YTD 2014 |
|||||||||||
| EARNINGS | ||||||||||||||||
| Interest income | $ | 13,839 | $ | 11,869 | $ | 11,954 | $ | 13,839 | $ | 11,954 | ||||||
| Interest expense | 1,461 | 1,414 | 1,495 | 1,461 | 1,495 | |||||||||||
| Net interest income | 12,378 | 10,455 | 10,459 | 12,378 | 10,459 | |||||||||||
| Provision for loan losses | 600 | 250 | - | 600 | - | |||||||||||
| Noninterest income | 3,156 | 2,792 | 2,703 | 3,156 | 2,703 | |||||||||||
| Noninterest expense | 10,047 | 8,943 | 8,423 | 10,047 | 8,423 | |||||||||||
| Income taxes | 1,372 | 1,164 | 1,289 | 1,372 | 1,289 | |||||||||||
| Net income | 3,515 | 2,890 | 3,450 | 3,515 | 3,450 | |||||||||||
| PER COMMON SHARE | ||||||||||||||||
| Earnings per share - basic | $ | 0.40 | $ | 0.37 | $ | 0.44 | $ | 0.40 | $ | 0.44 | ||||||
| Earnings per share - diluted | 0.40 | 0.37 | 0.44 | 0.40 | 0.44 | |||||||||||
| Cash dividends paid | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | |||||||||||
| Book value per share (f) | 22.58 | 22.07 | 21.57 | 22.58 | 21.57 | |||||||||||
| Book value per share - tangible (a) (f) | 17.09 | 16.86 | 16.27 | 17.09 | 16.27 | |||||||||||
| Closing market price | 22.58 | 24.81 | 23.52 | 22.58 | 23.52 | |||||||||||
| FINANCIAL RATIOS | ||||||||||||||||
| Return on average assets | 0.93 | % | 0.86 | % | 1.06 | % | 0.93 | % | 1.06 | % | ||||||
| Return on average equity | 7.17 | 6.63 | 8.12 | 7.17 | 8.12 | |||||||||||
| Return on average tangible equity (b) | 10.02 | 9.12 | 11.54 | 10.02 | 11.54 | |||||||||||
| Average equity to average assets | 12.91 | 13.04 | 13.05 | 12.91 | 13.05 | |||||||||||
| Tangible equity to tangible assets (a) | 9.98 | 10.16 | 10.23 | 9.98 | 10.23 | |||||||||||
| Efficiency ratio (e) | 63.90 | 64.60 | 61.82 | 63.90 | 61.82 | |||||||||||
| Effective tax rate | 28.07 | 28.71 | 27.20 | 28.07 | 27.20 | |||||||||||
| PERIOD-END BALANCES | ||||||||||||||||
| Securities | $ | 357,544 | $ | 349,250 | $ | 353,652 | $ | 357,544 | $ | 353,652 | ||||||
| Loans held for sale | 1,936 | 616 | 1,389 | 1,936 | 1,389 | |||||||||||
| Loans, net of unearned income | 965,902 | 840,925 | 783,369 | 965,902 | 783,369 | |||||||||||
| Goodwill and other intangibles | 47,793 | 41,088 | 41,871 | 47,793 | 41,871 | |||||||||||
| Assets | 1,540,098 | 1,346,492 | 1,299,802 | 1,540,098 | 1,299,802 | |||||||||||
| Assets - tangible (a) | 1,492,305 | 1,305,404 | 1,257,931 | 1,492,305 | 1,257,931 | |||||||||||
| Deposits | 1,242,675 | 1,075,837 | 1,051,249 | 1,242,675 | 1,051,249 | |||||||||||
| Customer repurchase agreements | 53,664 | 53,480 | 34,153 | 53,664 | 34,153 | |||||||||||
| Other short-term borrowings | - | - | - | - | - | |||||||||||
| Long-term borrowings | 37,487 | 37,456 | 37,363 | 37,487 | 37,363 | |||||||||||
| Shareholders' equity | 196,689 | 173,780 | 170,499 | 196,689 | 170,499 | |||||||||||
| AVERAGE BALANCES | ||||||||||||||||
| Securities | $ | 345,800 | $ | 331,785 | $ | 345,152 | $ | 345,800 | $ | 345,152 | ||||||
| Loans held for sale | 939 | 982 | 2,032 | 939 | 2,032 | |||||||||||
| Loans, net of unearned income | 954,882 | 815,271 | 788,419 | 954,882 | 788,419 | |||||||||||
| Interest-earning assets | 1,382,817 | 1,220,818 | 1,186,904 | 1,382,817 | 1,186,904 | |||||||||||
| Goodwill and other intangibles | 47,988 | 41,222 | 42,077 | 47,988 | 42,077 | |||||||||||
| Assets | 1,518,449 | 1,338,240 | 1,302,639 | 1,518,449 | 1,302,639 | |||||||||||
| Assets - tangible (a) | 1,470,461 | 1,297,018 | 1,260,562 | 1,470,461 | 1,260,562 | |||||||||||
| Interest-bearing deposits | 938,064 | 816,965 | 830,229 | 938,064 | 830,229 | |||||||||||
| Deposits | 1,221,037 | 1,069,995 | 1,051,614 | 1,221,037 | 1,051,614 | |||||||||||
| Customer repurchase agreements | 53,181 | 50,493 | 37,797 | 53,181 | 37,797 | |||||||||||
| Other short-term borrowings | - | - | - | - | - | |||||||||||
| Long-term borrowings | 37,469 | 37,438 | 37,373 | 37,469 | 37,373 | |||||||||||
| Shareholders' equity | 196,086 | 174,453 | 170,046 | 196,086 | 170,046 | |||||||||||
| American National Bankshares Inc. and Subsidiaries | ||||||||||||||||||
| Financial Highlights | ||||||||||||||||||
| (In thousands, except share, ratio and nonfinancial data, unaudited) | 1st Qtr 2015 |
4th Qtr 2014 |
1st Qtr 2014 |
YTD 2015 |
YTD 2014 |
|||||||||||||
| CAPITAL | ||||||||||||||||||
| Weighted average shares outstanding - basic | 8,723,633 | 7,855,872 | 7,904,759 | 8,723,633 | 7,904,759 | |||||||||||||
| Weighted average shares outstanding - diluted | 8,732,679 | 7,866,111 | 7,917,601 | 8,732,679 | 7,917,601 | |||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||
| Beginning balance | $ | 12,427 | $ | 12,620 | $ | 12,600 | $ | 12,427 | $ | 12,600 | ||||||||
| Provision for loan losses | 600 | 250 | - | 600 | - | |||||||||||||
| Charge-offs | (309 | ) | (566 | ) | (73 | ) | (309 | ) | (73 | ) | ||||||||
| Recoveries | 126 | 123 | 87 | 126 | 87 | |||||||||||||
| Ending balance | $ | 12,844 | $ | 12,427 | $ | 12,614 | $ | 12,844 | $ | 12,614 | ||||||||
| LOANS | ||||||||||||||||||
| Construction and land development | $ | 68,069 | $ | 50,863 | $ | 40,458 | $ | 68,069 | $ | 40,458 | ||||||||
| Commercial real estate | 436,562 | 391,472 | 358,362 | 436,562 | 358,362 | |||||||||||||
| Residential real estate | 211,261 | 175,293 | 170,517 | 211,261 | 170,517 | |||||||||||||
| Home equity | 97,811 | 91,075 | 89,081 | 97,811 | 89,081 | |||||||||||||
| Commercial and industrial | 146,280 | 126,981 | 119,042 | 146,280 | 119,042 | |||||||||||||
| Consumer | 5,919 | 5,241 | 5,909 | 5,919 | 5,909 | |||||||||||||
| Total | $ | 965,902 | $ | 840,925 | $ | 783,369 | $ | 965,902 | $ | 783,369 | ||||||||
| NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||||
| Nonperforming loans: | ||||||||||||||||||
| 90 days past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
| Nonaccrual | 5,123 | 4,112 | 5,557 | 5,123 | 5,557 | |||||||||||||
| Other real estate owned | 2,653 | 2,119 | 3,233 | 2,653 | 3,233 | |||||||||||||
| Nonperforming assets | $ | 7,776 | $ | 6,231 | $ | 8,790 | $ | 7,776 | $ | 8,790 | ||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||
| Allowance for loan losses to total loans | 1.33 | % | 1.48 | % | 1.61 | % | 1.33 | % | 1.61 | % | ||||||||
| Allowance for loan losses to | ||||||||||||||||||
| nonperforming loans | 250.71 | 302.21 | 226.99 | 250.71 | 226.99 | |||||||||||||
| Nonperforming assets to total assets | 0.50 | 0.46 | 0.68 | 0.50 | 0.68 | |||||||||||||
| Nonperforming loans to total loans | 0.53 | 0.49 | 0.71 | 0.53 | 0.71 | |||||||||||||
| Annualized net charge-offs (recoveries) to average loans | 0.08 | 0.22 | (0.01 | ) | 0.08 | (0.01 | ) | |||||||||||
| OTHER DATA | ||||||||||||||||||
| Fiduciary assets at period-end | ||||||||||||||||||
| (c) (g) | $ | 502,779 | $ | 450,498 | $ | 435,635 | $ | 502,779 | $ | 435,635 | ||||||||
| Retail brokerage assets at period-end (c) (g) | $ | 244,725 | $ | 210,265 | $ | 189,130 | $ | 244,725 | $ | 189,130 | ||||||||
| Number full-time equivalent employees (d) | 318 | 284 | 292 | 318 | 292 | |||||||||||||
| Number of full service offices | 27 | 24 | 25 | 27 | 25 | |||||||||||||
| Number of loan production offices | 2 | 2 | 2 | 2 | 2 | |||||||||||||
| Number of ATM's | 34 | 31 | 31 | 34 | 31 | |||||||||||||
| 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. | |
| (e) - 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 excluding (a) gains or losses on | |
| securities and (b) gains or losses on sale of premises and equipment. | |
| (f) - Unvested restricted stock of 17,761 shares are not included in the calculation. | |
| (g) - Assets are not owned by the Company and are not reflected in the consolidated balance sheet. | |
| Net Interest Income Analysis | ||||||||||||||||||||
| For the Three Months Ended March 31, 2015 and 2014 | ||||||||||||||||||||
| (in thousands, except rates) | ||||||||||||||||||||
| Interest | ||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | $ | 139,120 | $ | 120,707 | $ | 1,826 | $ | 1,472 | 5.32 | % | 4.95 | % | ||||||||
| Real estate | 801,373 | 664,772 | 9,719 | 8,296 | 4.85 | 4.99 | ||||||||||||||
| Consumer | 15,328 | 4,972 | 240 | 89 | 6.35 | 7.26 | ||||||||||||||
| Total loans | 955,821 | 790,451 | 11,785 | 9,857 | 4.94 | 5.00 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Federal agencies & GSEs | 74,850 | 68,356 | 245 | 178 | 1.31 | 1.04 | ||||||||||||||
| Mortgage-backed & CMOs | 65,558 | 66,631 | 378 | 403 | 2.31 | 2.42 | ||||||||||||||
| State and municipal | 190,216 | 193,542 | 1,763 | 1,899 | 3.71 | 3.92 | ||||||||||||||
| Other | 15,176 | 16,623 | 123 | 127 | 3.24 | 3.06 | ||||||||||||||
| Total securities | 345,800 | 345,152 | 2,509 | 2,607 | 2.90 | 3.02 | ||||||||||||||
| Federal funds sold | 14,580 | - | 4 | - | 0.11 | - | ||||||||||||||
| Deposits in other banks | 66,616 | 51,301 | 48 | 33 | 0.29 | 0.26 | ||||||||||||||
| Total interest-earning assets | 1,382,817 | 1,186,904 | 14,346 | 12,497 | 4.16 | 4.22 | ||||||||||||||
| Non-earning assets | 135,632 | 115,735 | ||||||||||||||||||
| Total assets | $ | 1,518,449 | $ | 1,302,639 | ||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 212,673 | $ | 168,080 | 18 | 22 | 0.03 | 0.05 | ||||||||||||
| Money market | 202,935 | 192,871 | 71 | 75 | 0.14 | 0.16 | ||||||||||||||
| Savings | 107,683 | 86,898 | 12 | 14 | 0.05 | 0.07 | ||||||||||||||
| Time | 414,773 | 382,380 | 1,093 | 1,118 | 1.07 | 1.19 | ||||||||||||||
| Total deposits | 938,064 | 830,229 | 1,194 | 1,229 | 0.52 | 0.60 | ||||||||||||||
| Customer repurchase agreements | 53,181 | 37,797 | 3 | 2 | 0.02 | 0.02 | ||||||||||||||
| Long-term borrowings | 37,469 | 37,373 | 264 | 264 | 2.82 | 2.83 | ||||||||||||||
| Total interest-bearing liabilities | 1,028,714 | 905,399 | 1,461 | 1,495 | 0.57 | 0.67 | ||||||||||||||
| Noninterest bearing demand deposits | 282,973 | 221,385 | ||||||||||||||||||
| Other liabilities | 10,676 | 5,809 | ||||||||||||||||||
| Shareholders' equity | 196,086 | 170,046 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,518,449 | $ | 1,302,639 | ||||||||||||||||
| Interest rate spread | 3.59 | % | 3.55 | % | ||||||||||||||||
| Net interest margin | 3.73 | % | 3.71 | % | ||||||||||||||||
| Net interest income (taxable equivalent basis) | 12,885 | 11,002 | ||||||||||||||||||
| Less: Taxable equivalent adjustment | 507 | 543 | ||||||||||||||||||
| Net interest income | $ | 12,378 | $ | 10,459 | ||||||||||||||||