SOURCE: American National Bankshares Inc.

American National Bankshares Inc.

January 24, 2013 16:15 ET

American National Bankshares Inc. Reports Fourth Quarter 2012 Earnings

DANVILLE, VA--(Marketwire - Jan 24, 2013) - American National Bankshares Inc. (NASDAQ: AMNB)

  • Q4 net income of $3.9 million and diluted EPS of $0.50
  • Net interest margin of 4.37% for Q4 2012
  • Nonperforming assets 0.90% of total assets
  • Average shareholders' equity of $163 million is 12.60% of average assets

American National Bankshares Inc. (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced fourth quarter 2012 net income available to common shareholders of $3,918,000 compared to $4,600,000 for the fourth quarter of 2011, a $682,000 or 14.8% decrease. Diluted earnings per share were $0.50 for the 2012 quarter compared to $0.59 for the 2011 quarter. This quarterly net income produced for 2012 a return on average assets of 1.21%, a return on average equity of 9.59%, and a return on average tangible equity of 14.12%.

Net income available to common shareholders for 2012 was $16,006,000 compared to $11,468,000 for 2011, a $4,538,000 or 39.6% increase. Basic and diluted earnings per share were $2.04 for 2012 compared to $1.64 for the 2011.

Earnings for all of 2012 and for the second half of 2011 were favorably impacted by the July 2011 merger between American National and MidCarolina Financial Corporation ("MidCarolina").

Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, reported, "American National had a very successful 2012.

"Our balance sheet did not change much during the year. At December 31, 2012, American National had $788,705,000 in loans compared to $824,758,000 at December 31, 2011, a decrease of $36,053,000 or 4.4%. Loan volume in our Virginia market was basically unchanged. The decline in loans was the result of 18 months of a deliberate strategy to reduce the problem and criticized loan balances brought over from the MidCarolina merger. We believe this strategy has been successful; our nonperforming assets have declined to 0.9% from 1.46% over the past four quarters. We also believe it is materially complete and we are anticipating loan growth, albeit single digit, in the upcoming year.

"At December 31, 2012, American National had $1,027,667,000 in deposits compared to $1,058,754,000 at December 31, 2011, a decrease of $31,087,000 or 2.9%. This is mostly the result of a planned strategy to reduce wholesale funding since the MidCarolina merger. 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 competitive manner. Our cost of deposits for the fourth quarter is 0.75%, down from 0.88% for the 2011 quarter.

"On the income statement side, our earnings for the fourth quarter were good, $3,918,000. This is down from $4,600,000 for the same quarter of 2011. Most of this decrease has been driven by the reduction of accretion income in addition to the declining yields in earning assets. Loans yielded 5.99% in the 2012 quarter, compared to 7.22% in the 2011 quarter. Investment yields declined also, earning 3.21% in the 2012 quarter, compared to 3.51% in the 2011 quarter. Our net interest margin was 4.37% for the 2012 quarter compared to 5.27% for the 2011 quarter.

"Our earnings for 2012 were very good, $16,006.000. This is up from $11,468,000 for 2011. A large portion of our earnings were driven by the July 2011 merger with MidCarolina. Approximately $1,910,000 of pretax income for the fourth quarter of 2012 and $7,555,000 for the year was directly related to various ongoing MidCarolina merger related, fair value adjustments, the vast majority of which results from the loan portfolio purchase discount. This fiscal impact was larger than we expected because during 2012 our credit improvement efforts resulted in favorable resolutions, in the form of payoffs, of several major problem loans that accounted for $2,300,000 or 30% of the $7,555,000 merger accounting impact for the year.

"What we want our investors to understand is that the favorable earnings impact of the merger and the related fair value accounting is decreasing rapidly quarter to quarter. This is normal in the context of current rules for merger accounting.

"Looking forward, while we wait to find the right strategic opportunity for the bank, we are constantly looking for ways to improve non-interest income and control non-interest expense. We have seen some positive results this year with mortgage banking and trust. We have moved to an outsourced technology model, which we expect will generate cost savings and improve risk management. We are reducing personnel and related expense through attrition and retirements."

Haley concluded, "The current operating environment for community banking is challenging in all areas: economic, regulatory, technological, and operational. But, nevertheless, in this situation there are and will continue to be opportunities for banks with strong capital, superior asset quality and a culture of imagination. We are continuing our quest for high quality organic growth and, at the same time, preparing American National for appropriate strategic acquisition opportunities that may arise."

Capital
American National's capital ratios remain strong and exceed all regulatory requirements.

For the quarter ended December 31, 2012, average shareholders' equity was 12.60% of average assets.

Book value per common share was $20.80 at December 31, 2012, compared to $19.58 at December 31, 2011.

Tangible book value per common share was $15.23 at December 31, 2012, compared to $13.75 at December 31, 2011.

Credit Quality Measurements
Non-performing assets ($5,316,000 of non-performing loans and $6,193,000 of foreclosed real estate) represented 0.90% of total assets at December 31, 2012, compared to 1.46% at December 31, 2011.

Annualized net charge offs to average loans were 11 basis points (0.11%) for the 2012 fourth quarter, compared to 26 basis points (0.26%) for the same quarter in 2011.

The allowance for loan losses as a percentage of total loans was 1.54% at December 31, 2012 compared to 1.28% at December 31, 2011.

Net Interest Income
Net interest income before provision for loan losses decreased to $12,177,000 in the fourth quarter of 2012 from $14,860,000 in fourth quarter of 2011, a decrease of $2,683,000 or 18.06%.

For the 2012 quarter, the net interest margin was 4.37% compared to 5.27% for the same quarter in 2011, a decrease of 90 basis points (0.90%). This decline was driven by falling yields on earning assets, impacted by rates and lower levels of accretion income, and only partially mitigated by reduced costs of interest bearing liabilities.

Noninterest Income
Noninterest income totaled $2,686,000 in the fourth quarter of 2012, compared with $2,587,000 in the fourth quarter of 2011, an increase of $99,000 or 3.8%. This increase was primarily the result of increased mortgage banking and trust income.

Noninterest Expense
Noninterest expense totaled $9,003,000 in the fourth quarter of 2012, compared to $8,629,000 in the fourth quarter of 2011, an increase of $374,000 or 4.3%. Most of this increase was related to personnel and benefits costs and the resolution of various other real estate owned properties.

About American National
American National Bankshares Inc. is a multi-state bank holding company with total assets of approximately $1.3 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 25 banking offices and two loan production offices. American National Bank and Trust Company also manages an additional $541 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   2012     2011  
                 
Cash and due from banks   $ 20,435     $ 22,561  
Interest-bearing deposits in other banks     27,007       6,332  
                 
Securities available for sale, at fair value     335,246       333,366  
Restricted stock, at cost     5,287       6,019  
Loans held for sale     13,852       6,330  
                 
Loans     788,705       824,758  
  Less allowance for loan losses     (12,118 )     (10,529 )
    Net Loans     776,587       814,229  
                 
Premises and equipment, net     24,543       25,674  
Other real estate owned, net     6,193       5,353  
Goodwill     39,043       38,899  
Core deposit intangibles, net     4,660       6,595  
Bank owned life insurance     13,487       13,058  
Accrued interest receivable and other assets     17,347       26,290  
                 
    Total assets   $ 1,283,687     $ 1,304,706  
                 
                 
Liabilities                
  Demand deposits -- noninterest-bearing   $ 217,275     $ 179,148  
  Demand deposits -- interest-bearing     153,578       189,212  
  Money market deposits     166,111       182,347  
  Savings deposits     81,135       74,193  
  Time deposits     409,568       433,854  
    Total deposits     1,027,667       1,058,754  
                 
  Short-term borrowings:                
    Customer repurchase agreements     49,942       45,575  
    Other short-term borrowings     -       3,000  
  Long-term borrowings     10,079       10,206  
  Trust preferred capital notes     27,317       27,212  
  Accrued interest payable and other liabilities     5,436       7,130  
    Total liabilities     1,120,441       1,151,877  
                 
Shareholders' equity                
  Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding     -       -  
  Common stock, $1 par, 20,000,000 shares authorized, 7,846,912 shares outstanding at December 31, 2012 and 7,806,869 shares outstanding at December 31, 2011     7,847       7,807  
  Capital in excess of par value     57,211       56,395  
  Retained earnings     90,591       81,797  
  Accumulated other comprehensive income, net     7,597       6,830  
    Total shareholders' equity     163,246       152,829  
                 
    Total liabilities and shareholders' equity   $ 1,283,687     $ 1,304,706  
                     
                     
                     
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  
    2012     2011     2012   2011  
Interest and Dividend Income:                              
  Interest and fees on loans   $ 11,965     $ 14,881     $ 49,189   $ 40,688  
  Interest and dividends on securities:                              
    Taxable     914       1,149       4,044     4,595  
    Tax-exempt     1,062       1,089       4,280     3,646  
    Dividends     58       43       213     131  
  Other interest income     33       15       80     127  
      Total interest and dividend income     14,032       17,177       57,806     49,187  
                               
Interest Expense:                              
  Interest on deposits     1,552       1,957       6,843     7,203  
  Interest on short-term borrowings     23       81       150     325  
  Interest on long-term borrowings     83       85       335     229  
  Interest on trust preferred capital notes     197       194       813     1,023  
      Total interest expense     1,855       2,317       8,141     8,780  
                               
Net Interest Income     12,177       14,860       49,665     40,407  
  Provision for loan losses     334       1,972       2,133     3,170  
                               
Net Interest Income After Provision for Loan Losses     11,843       12,888       47,532     37,237  
                               
Noninterest Income:                              
  Trust fees     929       834       3,703     3,561  
  Service charges on deposit accounts     442       567       1,757     1,963  
  Other fees and commissions     445       427       1,768     1,510  
  Mortgage banking income     569       470       2,234     1,262  
  Securities gains (losses), net     (2 )     17       158     (1 )
  Other     303       272       1,790     949  
      Total noninterest income     2,686       2,587       11,410     9,244  
                               
Noninterest Expense:                              
  Salaries     3,932       3,702       15,785     12,409  
  Employee benefits     947       785       3,604     2,681  
  Occupancy and equipment     1,009       888       3,951     3,199  
  FDIC assessment     162       155       692     651  
  Bank franchise tax     152       206       690     763  
  Core deposit intangible amortization     421       548       1,935     1,282  
  Foreclosed real estate, net     98       (194 )     528     296  
  Merger related expenses     -       73       19     1,607  
  Other     2,282       2,466       9,439     7,112  
      Total noninterest expense     9,003       8,629       36,643     30,000  
                               
Income Before Income Taxes     5,526       6,846       22,299     16,481  
Income Taxes     1,608       2,194       6,293     4,910  
Net Income     3,918       4,652       16,006     11,571  
Dividends on preferred stock     -       52       -     103  
Net income available to common shareholders   $ 3,918     $ 4,600     $ 16,006   $ 11,468  
                               
Net Income Per Common Share:                              
    Basic   $ 0.50     $ 0.59     $ 2.04   $ 1.64  
    Diluted   $ 0.50     $ 0.59     $ 2.04   $ 1.64  
Average Common Shares Outstanding:                              
    Basic     7,844,545       7,804,245       7,834,351     6,982,524  
    Diluted     7,854,083       7,811,243       7,845,652     6,989,877  
                                   
                                   
                                   
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  
    2012     2012     2011     2012     2011  
EARNINGS                                        
  Interest income   $ 14,032     $ 13,546     $ 17,177     $ 57,806     $ 49,187  
  Interest expense     1,855       2,046       2,317       8,141       8,780  
  Net interest income     12,177       11,500       14,860       49,665       40,407  
  Provision for loan losses     334       333       1,972       2,133       3,170  
  Noninterest income     2,686       2,690       2,587       11,410       9,244  
  Noninterest expense     9,003       8,880       8,629       36,643       30,000  
  Income taxes     1,608       1,338       2,194       6,293       4,910  
  Net income     3,918       3,639       4,652       16,006       11,571  
                                         
PER COMMON SHARE                                        
  Earnings per share - basic   $ 0.50     $ 0.46     $ 0.59     $ 2.04     $ 1.64  
  Earnings per share - diluted     0.50       0.46       0.59       2.04       1.64  
  Cash dividends declared     0.23       0.23       0.23       0.92       0.92  
  Book value per share     20.80       20.66       19.58       20.80       19.58  
  Book value per share - tangible (a)     15.23       15.03       13.75       15.23       13.75  
  Closing market price     20.19       22.59       19.49       20.19       19.49  
                                         
FINANCIAL RATIOS                                        
  Return on average assets     1.21 %     1.12 %     1.42 %     1.23 %     1.07 %
  Return on average equity     9.59       9.11       12.28       10.08       8.88  
  Return on average tangible equity (b)     14.12       13.69       18.77       15.25       12.97  
  Average equity to average assets     12.60       12.32       11.59       12.19       12.10  
  Net interest margin, taxable equivalent     4.37       4.14       5.27       4.44       4.35  
  Efficiency ratio     58.36       62.00       49.57       58.23       58.48  
  Effective tax rate     29.10       26.88       32.05       28.22       29.79  
                                         
PERIOD-END BALANCES                                        
  Securities   $ 340,533     $ 333,278     $ 339,385     $ 340,533     $ 339,385  
  Loans held for sale     13,852       8,118       6,330       13,852       6,330  
  Loans, net of unearned income     788,705       797,818       824,758       788,705       824,758  
  Goodwill and other intangibles     43,703       44,124       44,640       43,703       45,494  
  Assets     1,283,687       1,305,707       1,304,522       1,283,687       1,304,706  
  Assets - tangible (a)     1,239,984       1,261,583       1,259,882       1,239,984       1,259,212  
  Deposits     1,027,667       1,052,427       1,058,754       1,027,667       1,058,754  
  Customer repurchase agreements     49,942       45,761       45,575       49,942       45,575  
  Long-term borrowings     37,396       37,403       37,418       37,396       37,418  
  Shareholders' equity     163,246       162,045       152,829       163,246       152,829  
  Shareholders' equity - tangible (a)     119,543       117,921       108,189       119,543       107,335  
                                         
AVERAGE BALANCES                                        
  Securities   $ 320,718     $ 323,555     $ 322,018     $ 324,842     $ 270,441  
  Loans held for sale     10,535       8,237       5,989       7,533       3,042  
  Loans, net of unearned income     789,611       802,213       819,688       806,171       671,724  
  Interest-earning assets     1,167,206       1,166,572       1,172,965       1,170,626       974,601  
  Goodwill and other intangibles     43,970       44,561       44,455       44,762       34,158  
  Assets     1,296,709       1,297,698       1,306,699       1,303,081       1,077,094  
  Assets - tangible (a)     1,252,739       1,253,137       1,262,244       1,258,319       1,042,936  
  Interest-bearing deposits     821,286       839,902       886,551       838,230       720,163  
  Deposits     1,043,192       1,044,434       1,060,013       1,051,359       863,367  
  Customer repurchase agreements     45,510       46,297       49,257       46,939       46,411  
  Other short-term borrowings     2       -       130       496       66  
  Long-term borrowings     37,406       37,413       37,434       37,415       30,991  
  Shareholders' equity     163,384       159,868       151,496       158,847       130,320  
  Shareholders' equity - tangible (a)     119,414       115,307       107,041       114,085       96,162  
   
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  
      2012       2012       2011       2012       2011  
CAPITAL                                        
  Average shares outstanding - basic     7,844,545       7,838,314       7,804,245       7,834,351       6,982,524  
  Average shares outstanding - diluted     7,854,083       7,855,537       7,811,243       7,845,652       6,989,877  
                                         
ALLOWANCE FOR LOAN LOSSES                                        
  Beginning balance   $ 11,998     $ 12,099     $ 9,086     $ 10,529     $ 8,420  
  Provision for loan losses     334       333       1,972       2,133       3,170  
  Charge-offs     (404 )     (614 )     (906 )     (2,086 )     (1,863 )
  Recoveries     190       180       377       1,542       802  
  Ending balance   $ 12,118     $ 11,998     $ 10,529     $ 12,118     $ 10,529  
                                         
LOANS                                        
  Construction and land development   $ 48,812     $ 50,688     $ 54,433     $ 48,812     $ 54,433  
  Commercial real estate     355,433       356,692       351,961       355,433       351,961  
  Residential real estate     161,033       162,404       179,812       161,033       179,812  
  Home equity     91,313       95,008       96,195       91,313       96,195  
  Commercial and industrial     126,192       126,339       134,166       126,192       134,166  
  Consumer     5,922       6,687       8,191       5,922       8,191  
  Total   $ 788,705     $ 797,818     $ 824,758     $ 788,705     $ 824,758  
                                         
NONPERFORMING ASSETS AT PERIOD-END                                        
  Nonperforming loans:                                        
    90 days past due   $ -     $ -     $ 197     $ -     $ 197  
    Nonaccrual     5,316       7,815       13,520       5,316       13,520  
  Foreclosed real estate     6,193       6,259       5,353       6,193       5,353  
  Nonperforming assets   $ 11,509     $ 14,074     $ 19,070     $ 11,509     $ 19,070  
                                         
ASSET QUALITY RATIOS                                        
  Annualized net chargeoffs to average loans     0.11 %     0.22 %     0.26 %     0.07 %     0.16 %
  Nonperforming assets to total assets     0.90       1.08       1.46       0.90       1.46  
  Nonperforming loans to total loans     0.67       0.98       1.66       0.67       1.66  
  Allowance for loan losses to total loans     1.54       1.50       1.28       1.54       1.28  
  Allowance for loan losses to nonperforming loans     227.95       153.53       76.76       227.95       76.76  
                                         
OTHER DATA                                        
  Fiduciary assets at period-end (c)   $ 386,210     $ 391,055     $ 355,202     $ 386,210     $ 355,202  
  Retail brokerage assets at period-end (c)   $ 155,079     $ 154,632     $ 140,688     $ 155,079     $ 140,688  
  Number full-time equivalent employees (d)     307       318       315       307       315  
  Number of full service offices     25       25       25       25       25  
  Number of loan production offices     2       2       2       2       2  
  Number of ATM's     31       31       31       31       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
   
   
   
Net Interest Income Analysis  
For the Three Months Ended December 31, 2012 and 2011  
(in thousands, except rates)  
   
        Interest      
    Average Balance   Income/Expense   Yield/Rate  
                             
    2012   2011   2012   2011   2012     2011  
Loans:                                    
  Commercial   $ 122,697   $ 134,836   $ 1,506   $ 1,555   4.87 %   4.58 %
  Real estate     671,180     682,631     10,368     13,205   6.18     7.74  
  Consumer     6,269     8,210     120     156   7.59     7.54  
    Total loans     800,146     825,677     11,994     14,916   5.99     7.22  
                                     
Securities:                                    
  Federal agencies     35,728     33,427     110     181   1.23     2.17  
  Mortgage-backed & CMO's     85,623     99,817     419     577   1.96     2.31  
  State and municipal     187,545     180,254     1,945     1,983   4.15     4.40  
  Other     11,822     8,520     103     86   3.49     4.04  
    Total securities     320,718     322,018     2,577     2,827   3.21     3.51  
                                     
Deposits in other banks     46,342     25,270     33     15   0.28     0.24  
                                     
  Total interest-earning assets     1,167,206     1,172,965     14,604     17,758   5.00     6.05  
                                     
Non-earning assets     129,503     133,728                        
                                     
  Total assets   $ 1,296,709   $ 1,306,693                        
                                     
Deposits:                                    
  Demand   $ 145,539   $ 180,874     36     123   0.10     0.27  
  Money market     169,647     195,534     107     190   0.25     0.39  
  Savings     79,492     73,674     23     29   0.11     0.16  
  Time     426,608     436,469     1,386     1,615   1.29     1.47  
    Total deposits     821,286     886,551     1,552     1,957   0.75     0.88  
                                     
Customer repurchase agreements     45,510     49,257     23     81   0.20     0.65  
Other short-term borrowings     2     130     0     0   0.75     0.43  
Long-term borrowings     37,406     37,434     280     279   2.99     2.98  
  Total interest-bearing liabilities     904,204     973,372     1,855     2,317   0.81     0.95  
                                     
Noninterest bearing demand deposits     221,906     173,462                        
Other liabilities     7,215     8,369                        
Shareholders' equity     163,384     151,490                        
    Total liabilities and shareholders' equity   $ 1,296,709   $ 1,306,693                        
                                     
Interest rate spread                           4.19 %   5.10 %
Net interest margin                           4.37 %   5.27 %
                                     
Net interest income (taxable equivalent basis)                 12,749     15,441            
Less: Taxable equivalent adjustment                 572     581            
Net interest income               $ 12,177   $ 14,860            
   
   
   
Net Interest Income Analysis  
For the Years Ended December 31, 2012 and 2011  
(in thousands, except yields and rates)  
   
        Interest      
    Average Balance   Income/Expense   Yield/Rate  
                             
    2012   2011   2012   2011   2012     2011  
Loans:                                    
  Commercial   $ 128,031   $ 107,376   $ 6,642   $ 4,947   5.19 %   4.61 %
  Real estate     677,314     559,656     42,088     35,298   6.21     6.31  
  Consumer     8,359     7,734     605     575   7.24     7.43  
    Total loans     813,704     674,766     49,335     40,820   6.06     6.05  
                                     
Securities:                                    
  Federal agencies     36,066     36,247     545     946   1.51     2.61  
  Mortgage-backed & CMO's     94,183     75,902     1,906     2,148   2.02     2.83  
  State and municipal     182,939     151,254     7,829     6,872   4.28     4.54  
  Other     11,654     7,038     435     279   3.73     3.96  
    Total securities     324,842     270,441     10,715     10,245   3.30     3.79  
                                     
Deposits in other banks     32,080     29,394     80     127   0.25     0.43  
                                     
  Total interest-earning assets     1,170,626     974,601     60,130     51,192   5.14     5.25  
                                     
Non-earning assets     132,455     102,493                        
                                     
    Total assets   $ 1,303,081   $ 1,077,094                        
                                     
Deposits:                                    
  Demand   $ 142,296   $ 137,211     190     290   0.13     0.21  
  Money market     174,027     132,906     521     572   0.30     0.43  
  Savings     78,358     68,038     111     98   0.14     0.14  
  Time     443,549     382,008     6,021     6,243   1.36     1.63  
    Total deposits     838,230     720,163     6,843     7,203   0.82     1.00  
                                     
Customer repurchase agreements     46,939     46,411     148     325   0.32     0.70  
Other short-term borrowings     496     66     2     0   0.42     0.45  
Long-term borrowings     37,415     30,991     1,148     1,252   3.07     4.04  
  Total interest-bearing liabilities     923,080     797,631     8,141     8,780   0.88     1.10  
                                     
Noninterest bearing demand deposits     213,129     143,204                        
Other liabilities     8,025     5,939                        
Shareholders' equity     158,847     130,320                        
  Total liabilities and shareholders' equity   $ 1,303,081   $ 1,077,094                        
                                     
Interest rate spread                           4.26 %   4.15 %
Net interest margin                           4.44 %   4.35 %
                                     
Net interest income (taxable equivalent basis)                 51,989     42,412            
Less: Taxable equivalent adjustment                 2,324     2,005            
Net interest income               $ 49,665   $ 40,407