DANVILLE, VA--(Marketwire - Jan 30, 2012) - American National Bankshares Inc. (
- Completes first two quarters of combined operations with MidCarolina
- Q4 net income of $4.6 million and diluted EPS of $0.59 per share
- Net interest margin 4.35% for 2011
- Average shareholders' equity of $151 million represents 11.59% of average assets
American National Bankshares Inc. (
Net income available to common shareholders was $11,468,000 for 2011 compared to $8,278,000 for 2010, a 39% increase. Earnings per share, basic and diluted, were $1.64 for 2011 compared to $1.35 for 2010. This net income produced for 2011 a return on average assets of 1.07%, a return on average equity of 8.88%, and a return on tangible equity of 12.97%.
Earnings for the fourth quarter of 2011 and for the year were favorably impacted by the July 1, 2011, merger between American National and MidCarolina Financial Corporation ("MidCarolina"). Unless otherwise noted, most of the material changes between periods are related to the merger.
Financial Performance and Overview
Charles H. Majors, Chairman and Chief Executive Officer, reported, "July 1, 2011, was the first day of a new and exciting chapter in the life of American National. We consummated the merger with MidCarolina and grew our community bank assets to $1.3 billion from $800 million. In that same transaction, we added significantly to the depth and breadth of our market footprint, our pool of talented bankers, and, most importantly, our ability to serve customers.
"We now have over $800 million in loans and over $1 billion in deposits. We also have the best community bankers in the industry. Every day we are ready and eager to grow an exemplary community bank for the 21st century so we can help grow our local markets.
"Earnings for the year were strong. Our net income available to common shareholders was $11.5 million for 2011, compared to $8.3 million for the prior year, an increase of 39%. Much of the increase was driven by the merger with MidCarolina.
"The accounting rules that govern business combinations are complex and require the balance sheet of the acquired company be valued at 'fair value.' This process can result in significant fair value adjustments that are effectively purchase discounts ('mark'). A large portion of this fair value discount has been added to our earnings for the second half of 2011. Approximately $5,100,000 of our 2011 pretax income was directly related to various fair value adjustments, the majority of which results from the loan portfolio purchase discount.
"We are also constantly reviewing and assessing the overall credit risk in the loan portfolio for the legacy Virginia bank and for the newly acquired loans in North Carolina. We only have two quarters of operations of the combined bank, so we have very little in the way of objective historical experience for the new loans. We also have a much faster decline in the credit portion of the fair value mark than the decline in the related contractual loan balances, which relates to amortization periods versus maturity dates. Consequently, during the fourth quarter, in addition to our normally determined provision expense our analysis determined we needed to provide an additional $1.6 million. This amount was determined after assessing loan charge offs, within and outside the purchase mark, on the North Carolina loan portfolio and after consideration of the change in the purchase mark versus the change in the related loan principal balances.
"No business combination this substantial comes easily or inexpensively. During 2011, American National recorded approximately $1.6 million in non-recurring, merger related expenses. This is reflected in our noninterest expense totals for the year.
Majors concluded, "This was a truly remarkable year for American National. We invite our customers and shareholders to help us build and grow a community bank for the new century."
Capital
American National's capital ratios remain strong and exceed all regulatory requirements. For the quarter ended December 31, 2011, average shareholders' equity was 11.59% of average assets and average tangible equity was 18.77% of average assets.
Book value per common share was $19.58 at December 31, 2011, compared to $17.64 for the same date in 2010.
Tangible book value per common share was $13.86 at December 31, 2011, compared to $13.76 for the same date in 2010.
Credit Quality Measurements
Nonperforming assets ($13.7 million of non-accrual loans and $5.4 million of foreclosed real estate) represented 1.46% of total assets at December 31, 2011, compared to 0.76% at December 31, 2010.
Annualized net charge offs to average loans were 26 basis points (0.26%) for the 2011 fourth quarter, compared to 47 basis points (0.24%) for the same quarter in 2010.
The allowance for loan losses as a percentage of total loans was 1.28% at December 31, 2011 compared to 1.62% the prior year. The loans acquired in connection with the MidCarolina merger, all valued at the merger date at fair value, whereby loan losses are implicit in the valuation, have had a significant impact on this ratio. The allowance for loan losses as a percentage of total loans, net of fair value loans, was 1.96% at December 31, 2011.
Net Interest Income
Net interest income before provision for loan losses increased to $14,860,000 in the fourth quarter of 2011 from $6,693,000 in fourth quarter of 2010, an improvement $8,167,000 or 122%.
For 2011 the net interest margin increased 57 basis points (0.57%) to 4.35% compared to the same period in 2010.
Noninterest Income
Noninterest income totaled $2,587,000 in the fourth quarter of 2011, compared with $2,906,000 in the fourth quarter of 2010, a decrease of $319,000 or 11%. The 2010 quarter included a $450,000 gain on sale of bank owned real estate (non-OREO). Service charge related income has been favorably impacted by the merger.
Noninterest Expense
Noninterest expense totaled $8,629,000 in the fourth quarter of 2011, compared to $6,474,000 in the fourth quarter of 2010, an increase of $2,155,000 or 33.3%.
About American National
American National Bankshares Inc. is a multi-state bank holding company with total assets of approximately $1.3 billion following the July 1, 2011, completion of the MidCarolina merger. 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 25 banking offices and one loan production office. The banking offices in Alamance and Guilford counties in North Carolina operate as MidCarolina Bank, a division of American National Bank. American National Bank and Trust Company also manages an additional $532 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 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 | 2011 | 2010 | ||||||||
Cash and due from banks | $ | 22,561 | $ | 9,547 | ||||||
Interest-bearing deposits in other banks | 6,332 | 8,967 | ||||||||
Securities available for sale, at fair value | 333,366 | 228,295 | ||||||||
Securities held to maturity | - | 3,334 | ||||||||
Total securities | 333,366 | 231,629 | ||||||||
Restricted stock, at cost | 6,019 | 4,062 | ||||||||
Loans held for sale | 6,330 | 3,135 | ||||||||
Loans | 824,758 | 520,781 | ||||||||
Less allowance for loan losses | (10,529 | ) | (8,420 | ) | ||||||
Net Loans | 814,229 | 512,361 | ||||||||
Premises and equipment, net | 26,804 | 19,509 | ||||||||
Other real estate owned, net | 5,353 | 3,716 | ||||||||
Goodwill | 38,045 | 22,468 | ||||||||
Core deposit intangibles, net | 6,595 | 1,320 | ||||||||
Accrued interest receivable and other assets | 38,888 | 16,950 | ||||||||
Total assets | $ | 1,304,522 | $ | 833,664 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Liabilities: | ||||||||||
Demand deposits -- noninterest-bearing | $ | 179,148 | $ | 105,240 | ||||||
Demand deposits -- interest-bearing | 189,212 | 90,012 | ||||||||
Money market deposits | 182,347 | 59,891 | ||||||||
Savings deposits | 74,193 | 62,522 | ||||||||
Time deposits | 433,854 | 322,433 | ||||||||
Total deposits | 1,058,754 | 640,098 | ||||||||
Short-term borrowings: | ||||||||||
Customer repurchase agreements | 45,575 | 47,084 | ||||||||
Other short-term borrowings | 3,000 | 6,110 | ||||||||
Long-term borrowings | 10,206 | 8,488 | ||||||||
Trust preferred capital notes | 27,212 | 20,619 | ||||||||
Accrued interest payable and other liabilities | 6,946 | 3,178 | ||||||||
Total liabilities | 1,151,693 | 725,577 | ||||||||
Shareholders' equity: | ||||||||||
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding at December 31, 2011 and December 31, 2010 | - | - | ||||||||
Common stock, $1 par, 20,000,000 shares authorized, 7,806,869 shares outstanding at December 31, 2011 and 6,127,735 shares outstanding at December 31, 2010 | 7,807 | 6,128 | ||||||||
Capital in excess of par value | 56,395 | 27,268 | ||||||||
Retained earnings | 81,797 | 74,850 | ||||||||
Accumulated other comprehensive income (loss), net | 6,830 | (159 | ) | |||||||
Total shareholders' equity | 152,829 | 108,087 | ||||||||
Total liabilities and shareholders' equity | $ | 1,304,522 | $ | 833,664 | ||||||
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 | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Interest and Dividend Income: | ||||||||||||||||
Interest and fees on loans | $ | 14,881 | $ | 6,928 | $ | 40,688 | $ | 28,148 | ||||||||
Interest and dividends on securities: | ||||||||||||||||
Taxable | 1,149 | 1,198 | 4,595 | 5,042 | ||||||||||||
Tax-exempt | 1,089 | 647 | 3,646 | 2,288 | ||||||||||||
Dividends | 43 | 24 | 131 | 95 | ||||||||||||
Other interest income | 15 | 92 | 127 | 360 | ||||||||||||
Total interest and dividend income | 17,177 | 8,889 | 49,187 | 35,933 | ||||||||||||
Interest Expense: | ||||||||||||||||
Interest on deposits | 1,957 | 1,704 | 7,203 | 6,708 | ||||||||||||
Interest on short-term borrowings | 81 | 85 | 325 | 382 | ||||||||||||
Interest on long-term borrowings | 85 | 64 | 229 | 256 | ||||||||||||
Interest on trust preferred capital notes | 194 | 343 | 1,023 | 1,373 | ||||||||||||
Total interest expense | 2,317 | 2,196 | 8,780 | 8,719 | ||||||||||||
Net Interest Income | 14,860 | 6,693 | 40,407 | 27,214 | ||||||||||||
Provision for loan losses | 1,972 | 485 | 3,170 | 1,490 | ||||||||||||
Net Interest Income After Provision for Loan Losses | 12,888 | 6,208 | 37,237 | 25,724 | ||||||||||||
Noninterest Income: | ||||||||||||||||
Trust fees | 834 | 936 | 3,561 | 3,391 | ||||||||||||
Service charges on deposit accounts | 567 | 457 | 1,963 | 1,897 | ||||||||||||
Other fees and commissions | 427 | 307 | 1,510 | 1,163 | ||||||||||||
Mortgage banking income | 470 | 543 | 1,262 | 1,560 | ||||||||||||
Securities gains (losses), net | 17 | 84 | (1 | ) | 126 | |||||||||||
Other | 272 | 579 | 949 | 977 | ||||||||||||
Total noninterest income | 2,587 | 2,906 | 9,244 | 9,114 | ||||||||||||
Noninterest Expense: | ||||||||||||||||
Salaries | 3,702 | 2,473 | 12,409 | 10,063 | ||||||||||||
Employee benefits | 785 | 605 | 2,681 | 2,442 | ||||||||||||
Occupancy and equipment | 888 | 727 | 3,199 | 2,936 | ||||||||||||
FDIC assessment | 155 | 198 | 651 | 795 | ||||||||||||
Bank franchise tax | 206 | 167 | 763 | 670 | ||||||||||||
Core deposit intangible amortization | 547 | 95 | 1,282 | 378 | ||||||||||||
Foreclosed real estate, net | 122 | 304 | 296 | 583 | ||||||||||||
Merger related expenses | 73 | - | 1,607 | - | ||||||||||||
Other | 2,151 | 1,905 | 7,112 | 5,512 | ||||||||||||
Total noninterest expense | 8,629 | 6,474 | 30,000 | 23,379 | ||||||||||||
Income Before Income Taxes | 6,846 | 2,640 | 16,481 | 11,459 | ||||||||||||
Income Taxes | 2,194 | 789 | 4,910 | 3,181 | ||||||||||||
Net Income | 4,652 | 1,851 | 11,571 | 8,278 | ||||||||||||
Dividends on preferred stock | 52 | - | 103 | - | ||||||||||||
Net income available to common shareholders | $ | 4,600 | $ | 1,851 | $ | 11,468 | $ | 8,278 | ||||||||
Net Income Per Common Share: | ||||||||||||||||
Basic | $ | 0.59 | $ | 0.30 | $ | 1.64 | $ | 1.35 | ||||||||
Diluted | $ | 0.59 | $ | 0.30 | $ | 1.64 | $ | 1.35 | ||||||||
Average Common Shares Outstanding: | ||||||||||||||||
Basic | 7,804,245 | 6,126,817 | 6,982,524 | 6,123,870 | ||||||||||||
Diluted | 7,811,243 | 6,141,123 | 6,989,877 | 6,131,650 | ||||||||||||
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 | |||||||||||||
2011 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
EARNINGS | ||||||||||||||||||
Interest income | $ | 17,177 | $ | 14,779 | $ | 8,889 | $ | 49,187 | $ | 35,933 | ||||||||
Interest expense | 2,317 | 2,436 | 2,196 | 8,780 | 8,719 | |||||||||||||
Net interest income | 14,860 | 12,343 | 6,693 | 40,407 | 27,214 | |||||||||||||
Provision for loan losses | 1,972 | 525 | 485 | 3,170 | 1,490 | |||||||||||||
Noninterest income | 2,587 | 2,698 | 2,906 | 9,244 | 9,114 | |||||||||||||
Noninterest expense | 8,629 | 8,564 | 6,474 | 30,000 | 23,379 | |||||||||||||
Income taxes | 2,194 | 1,823 | 789 | 4,910 | 3,181 | |||||||||||||
Net income | 4,652 | 4,129 | 1,851 | 11,571 | 8,278 | |||||||||||||
PER COMMON SHARE | ||||||||||||||||||
Earnings per share - basic | $ | 0.59 | $ | 0.52 | $ | 0.30 | $ | 1.64 | $ | 1.35 | ||||||||
Earnings per share - diluted | 0.59 | 0.52 | 0.30 | 1.64 | 1.35 | |||||||||||||
Cash dividends declared | 0.23 | 0.23 | 0.23 | 0.92 | 0.92 | |||||||||||||
Book value per share | 19.58 | 19.40 | 17.64 | 19.58 | 17.64 | |||||||||||||
Book value per share - tangible (a) | 13.86 | 13.65 | 13.76 | 13.86 | 13.76 | |||||||||||||
Closing market price | 19.49 | 18.00 | 23.55 | 19.49 | 23.55 | |||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||
Return on average assets | 1.42 | % | 1.26 | % | 0.88 | % | 1.07 | % | 1.00 | % | ||||||||
Return on average equity | 12.28 | 11.08 | 6.69 | 8.88 | 7.59 | |||||||||||||
Return on average tangible equity (b) | 18.77 | 17.24 | 8.83 | 12.97 | 10.05 | |||||||||||||
Average equity to average assets | 11.59 | 11.40 | 13.12 | 12.10 | 13.18 | |||||||||||||
Net interest margin, taxable equivalent | 5.27 | 4.41 | 3.65 | 4.35 | 3.78 | |||||||||||||
Efficiency ratio | 49.57 | 57.03 | 65.70 | 58.48 | 61.53 | |||||||||||||
Effective tax rate | 32.05 | 30.63 | 29.89 | 29.79 | 27.76 | |||||||||||||
PERIOD-END BALANCES | ||||||||||||||||||
Securities | $ | 339,385 | $ | 320,304 | $ | 235,691 | $ | 339,385 | $ | 235,691 | ||||||||
Loans held for sale | 6,330 | 3,359 | 3,135 | 6,330 | 3,135 | |||||||||||||
Loans, net of unearned income | 824,758 | 817,858 | 520,781 | 824,758 | 520,781 | |||||||||||||
Goodwill and other intangibles | 44,640 | 44,851 | 23,788 | 44,640 | 23,788 | |||||||||||||
Assets | 1,304,522 | 1,305,139 | 833,664 | 1,304,522 | 833,664 | |||||||||||||
Assets - tangible (a) | 1,259,882 | 1,260,288 | 809,876 | 1,259,882 | 809,876 | |||||||||||||
Deposits | 1,058,754 | 1,064,477 | 640,098 | 1,058,754 | 640,098 | |||||||||||||
Customer repurchase agreements | 45,575 | 43,758 | 47,084 | 45,575 | 47,084 | |||||||||||||
Other short-term borrowings | 3,000 | - | 6,110 | 3,000 | 6,110 | |||||||||||||
Long-term borrowings | 37,418 | 37,428 | 29,107 | 37,418 | 29,107 | |||||||||||||
Shareholders' equity | 152,829 | 151,361 | 108,087 | 152,829 | 108,087 | |||||||||||||
Shareholders' equity - tangible (a) | 108,189 | 106,510 | 84,299 | 108,189 | 84,299 | |||||||||||||
AVERAGE BALANCES | ||||||||||||||||||
Securities | $ | 322,018 | $ | 296,095 | $ | 215,208 | $ | 270,441 | $ | 203,296 | ||||||||
Loans held for sale | 5,989 | 2,641 | 5,629 | 3,042 | 4,159 | |||||||||||||
Loans, net of unearned income | 819,688 | 827,720 | 521,832 | 671,724 | 520,315 | |||||||||||||
Interest-earning assets | 1,172,965 | 1,171,982 | 770,649 | 974,601 | 754,833 | |||||||||||||
Goodwill and other intangibles | 44,455 | 44,437 | 23,844 | 34,158 | 23,982 | |||||||||||||
Assets | 1,306,699 | 1,306,796 | 843,922 | 1,077,094 | 827,422 | |||||||||||||
Assets - tangible (a) | 1,262,244 | 1,262,359 | 820,078 | 1,042,936 | 803,440 | |||||||||||||
Interest-bearing deposits | 886,551 | 896,873 | 537,662 | 720,163 | 522,614 | |||||||||||||
Deposits | 1,060,013 | 1,067,491 | 647,526 | 863,367 | 625,822 | |||||||||||||
Customer repurchase agreements | 49,257 | 45,356 | 52,068 | 46,411 | 59,270 | |||||||||||||
Other short-term borrowings | 130 | 2 | 251 | 66 | 87 | |||||||||||||
Long-term borrowings | 37,434 | 37,439 | 29,136 | 30,991 | 29,192 | |||||||||||||
Shareholders' equity | 151,496 | 149,033 | 110,688 | 130,320 | 109,060 | |||||||||||||
Shareholders' equity - tangible (a) | 107,041 | 104,596 | 86,844 | 96,162 | 85,078 | |||||||||||||
CAPITAL | ||||||||||||||||||
Average shares outstanding - basic | 7,804,245 | 7,800,614 | 6,126,817 | 6,982,524 | 6,123,870 | |||||||||||||
Average shares outstanding - diluted | 7,811,243 | 7,806,668 | 6,141,123 | 6,989,877 | 6,131,650 | |||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||
Beginning balance | $ | 9,086 | $ | 8,744 | $ | 8,542 | $ | 8,420 | $ | 8,166 | ||||||||
Provision for loan losses | 1,972 | 525 | 485 | 3,170 | 1,490 | |||||||||||||
Charge-offs | (906 | ) | (252 | ) | (662 | ) | (1,863 | ) | (1,531 | ) | ||||||||
Recoveries | 377 | 69 | 55 | 802 | 295 | |||||||||||||
Ending balance | $ | 10,529 | $ | 9,086 | $ | 8,420 | $ | 10,529 | $ | 8,420 | ||||||||
LOANS | ||||||||||||||||||
Construction and land development | $ | 54,433 | $ | 57,111 | $ | 37,168 | $ | 54,433 | $ | 37,168 | ||||||||
Commercial real estate | 351,961 | 346,715 | 210,393 | 351,961 | 210,393 | |||||||||||||
Residential real estate | 179,812 | 174,493 | 119,398 | 179,812 | 119,398 | |||||||||||||
Home equity | 96,195 | 99,727 | 61,064 | 96,195 | 61,064 | |||||||||||||
Commercial and industrial | 134,166 | 131,704 | 85,051 | 134,166 | 85,051 | |||||||||||||
Consumer | 8,191 | 8,108 | 7,707 | 8,191 | 7,707 | |||||||||||||
Total | $ | 824,758 | $ | 817,858 | $ | 520,781 | $ | 824,758 | $ | 520,781 | ||||||||
NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||
90 days past due | $ | 197 | $ | - | $ | - | $ | 197 | $ | - | ||||||||
Nonaccrual | 13,523 | 13,455 | 2,597 | 13,523 | 2,597 | |||||||||||||
Foreclosed real estate | 5,353 | 5,920 | 3,716 | 5,353 | 3,716 | |||||||||||||
Nonperforming assets | $ | 19,073 | $ | 19,375 | $ | 6,313 | $ | 19,073 | $ | 6,313 | ||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||
Annualized net chargeoffs to average loans | 0.26 | % | 0.09 | % | 0.47 | % | 0.16 | % | 0.24 | % | ||||||||
Nonperforming assets to total assets | 1.46 | 1.48 | 0.76 | 1.46 | 0.76 | |||||||||||||
Nonperforming loans to total loans | 1.66 | 1.65 | 0.50 | 1.66 | 0.50 | |||||||||||||
Allowance for loan losses to total loans | 1.28 | 1.11 | 1.62 | 1.28 | 1.62 | |||||||||||||
Allowance for loan losses to total loans net or fair value loans (e) | 1.96 | 1.76 | 1.62 | 1.96 | 1.62 | |||||||||||||
Allowance for loan losses to nonperforming loans | 76.74 | 67.53 | 324.22 | 76.74 | 324.22 | |||||||||||||
OTHER DATA | ||||||||||||||||||
Fiduciary assets at period-end (c) | $ | 355,202 | $ | 340,941 | $ | 368,018 | $ | 355,202 | $ | 368,018 | ||||||||
Retail brokerage assets at period-end (c) | $ | 176,636 | $ | 149,284 | $ | 49,311 | $ | 176,636 | $ | 49,311 | ||||||||
Number full-time equivalent employees (d) | 315 | 306 | 242 | 315 | 242 | |||||||||||||
Number of full service offices | 25 | 25 | 18 | 25 | 18 | |||||||||||||
Number of loan production offices | 1 | 1 | 1 | 1 | 1 | |||||||||||||
Number of ATM's | 31 | 31 | 26 | 31 | 26 | |||||||||||||
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) - Excludes acquired loans measured at fair value | |
Net Interest Income Analysis | ||||||||||||||||||||
For the Three Months Ended December 31, 2011 and 2010 | ||||||||||||||||||||
(in thousands, except rates) | ||||||||||||||||||||
Interest | ||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | $ | 134,836 | $ | 75,012 | $ | 1,555 | $ | 868 | 4.58 | % | 4.59 | % | ||||||||
Real estate | 682,631 | 445,017 | 13,205 | 5,949 | 7.74 | 5.35 | ||||||||||||||
Consumer | 8,210 | 7,432 | 156 | 144 | 7.54 | 7.69 | ||||||||||||||
Total loans | 825,677 | 527,461 | 14,916 | 6,961 | 7.22 | 5.27 | ||||||||||||||
Securities: | ||||||||||||||||||||
Federal agencies | 33,427 | 48,184 | 181 | 382 | 2.17 | 3.17 | ||||||||||||||
Mortgage-backed & CMO's | 99,817 | 57,251 | 577 | 484 | 2.31 | 3.38 | ||||||||||||||
State and municipal | 180,254 | 103,692 | 1,983 | 1,255 | 4.40 | 4.84 | ||||||||||||||
Other | 8,520 | 6,081 | 86 | 55 | 4.04 | 3.62 | ||||||||||||||
Total securities | 322,018 | 215,208 | 2,827 | 2,176 | 3.51 | 4.04 | ||||||||||||||
Deposits in other banks | 25,270 | 27,980 | 15 | 92 | 0.24 | 1.30 | ||||||||||||||
Total interest-earning assets | 1,172,965 | 770,649 | 17,758 | 9,229 | 6.05 | 4.79 | ||||||||||||||
Non-earning assets | 133,734 | 73,273 | ||||||||||||||||||
Total assets | $ | 1,306,699 | $ | 843,922 | ||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand | $ | 180,874 | $ | 93,133 | 123 | 18 | 0.27 | 0.08 | ||||||||||||
Money market | 195,534 | 60,500 | 190 | 86 | 0.39 | 0.56 | ||||||||||||||
Savings | 73,674 | 63,010 | 29 | 22 | 0.16 | 0.14 | ||||||||||||||
Time | 436,469 | 321,019 | 1,615 | 1,578 | 1.47 | 1.95 | ||||||||||||||
Total deposits | 886,551 | 537,662 | 1,957 | 1,704 | 0.88 | 1.26 | ||||||||||||||
Customer repurchase agreements | 49,257 | 52,068 | 81 | 85 | 0.65 | 0.65 | ||||||||||||||
Other short-term borrowings | 130 | 251 | 0 | 0 | 0.43 | 0.14 | ||||||||||||||
Long-term borrowings | 37,434 | 29,136 | 279 | 407 | 2.98 | 5.59 | ||||||||||||||
Total interest-bearing liabilities | 973,372 | 619,117 | 2,317 | 2,196 | 0.95 | 1.41 | ||||||||||||||
Noninterest bearing demand deposits | 173,462 | 109,864 | ||||||||||||||||||
Other liabilities | 8,369 | 4,253 | ||||||||||||||||||
Shareholders' equity | 151,496 | 110,688 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,306,699 | $ | 843,922 | ||||||||||||||||
Interest rate spread | 5.10 | % | 3.38 | % | ||||||||||||||||
Net interest margin | 5.27 | % | 3.65 | % | ||||||||||||||||
Net interest income (taxable equivalent basis) | 15,441 | 7,033 | ||||||||||||||||||
Less: Taxable equivalent adjustment | 581 | 340 | ||||||||||||||||||
Net interest income | $ | 14,860 | $ | 6,693 | ||||||||||||||||
Net Interest Income Analysis | |||||||||||||||||||
For the Years Ended December 31, 2011 and 2010 | |||||||||||||||||||
(in thousands, except yields and rates) | |||||||||||||||||||
Interest | |||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | |||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
Loans: | |||||||||||||||||||
Commercial | $ | 107,376 | $ | 77,382 | $ | 4,947 | $ | 3,694 | 4.61 | % | 4.77 | % | |||||||
Real estate | 559,656 | 440,318 | 35,298 | 24,045 | 6.31 | 5.46 | |||||||||||||
Consumer | 7,734 | 6,774 | 575 | 541 | 7.43 | 7.99 | |||||||||||||
Total loans | 674,766 | 524,474 | 40,820 | 28,280 | 6.05 | 5.39 | |||||||||||||
Securities: | |||||||||||||||||||
Federal agencies | 36,247 | 59,960 | 946 | 1,917 | 2.61 | 3.20 | |||||||||||||
Mortgage-backed & CMO's | 75,902 | 50,178 | 2,148 | 1,957 | 2.83 | 3.90 | |||||||||||||
State and municipal | 151,254 | 86,439 | 6,872 | 4,478 | 4.54 | 5.18 | |||||||||||||
Other | 7,038 | 6,719 | 279 | 240 | 3.96 | 3.57 | |||||||||||||
Total securities | 270,441 | 203,296 | 10,245 | 8,592 | 3.79 | 4.23 | |||||||||||||
Deposits in other banks | 29,394 | 27,063 | 127 | 360 | 0.43 | 1.33 | |||||||||||||
Total interest-earning assets | 974,601 | 754,833 | 51,192 | 37,232 | 5.25 | 4.93 | |||||||||||||
Non-earning assets | 102,493 | 72,589 | |||||||||||||||||
Total assets | $ | 1,077,094 | $ | 827,422 | |||||||||||||||
Deposits: | |||||||||||||||||||
Demand | $ | 137,211 | $ | 94,236 | 290 | 76 | 0.21 | 0.08 | |||||||||||
Money market | 132,906 | 73,358 | 572 | 371 | 0.43 | 0.51 | |||||||||||||
Savings | 68,038 | 63,484 | 98 | 88 | 0.14 | 0.14 | |||||||||||||
Time | 382,008 | 291,536 | 6,243 | 6,173 | 1.63 | 2.12 | |||||||||||||
Total deposits | 720,163 | 522,614 | 7,203 | 6,708 | 1.00 | 1.28 | |||||||||||||
Customer repurchase agreements | 46,411 | 59,270 | 325 | 382 | 0.70 | 0.64 | |||||||||||||
Other short-term borrowings | 66 | 87 | 0 | 0 | 0.47 | 0.42 | |||||||||||||
Long-term borrowings | 30,991 | 29,192 | 1,252 | 1,629 | 4.04 | 5.58 | |||||||||||||
Total interest-bearing liabilities | 797,631 | 611,163 | 8,780 | 8,719 | 1.10 | 1.43 | |||||||||||||
Noninterest bearing demand deposits | 143,204 | 103,208 | |||||||||||||||||
Other liabilities | 5,939 | 3,991 | |||||||||||||||||
Shareholders' equity | 130,320 | 109,060 | |||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,077,094 | $ | 827,422 | |||||||||||||||
Interest rate spread | 4.15 | % | 3.50 | % | |||||||||||||||
Net interest margin | 4.35 | % | 3.78 | % | |||||||||||||||
Net interest income (taxable equivalent basis) | 42,412 | 28,513 | |||||||||||||||||
Less: Taxable equivalent adjustment | 2,005 | 1,299 | |||||||||||||||||
Net interest income | $ | 40,407 | $ | 27,214 | |||||||||||||||