DANVILLE, VA--(Marketwire - Jul 20, 2012) - American National Bankshares Inc. (
- Completed one year of operation post-merger with MidCarolina
- Q2 net income of $4.3 million and diluted EPS of $0.54
- Net interest margin of 4.57% for Q2 2012
- Substantial improvement in non-performing assets between Q3 2011 (first quarter end after merger) and Q2 2012
- Average shareholders' equity of $157 million is 12.03% of average assets
American National Bankshares Inc. (
Net income for the first six months of 2012 was $8,449,000 compared to $2,790,000 for the comparable period of 2011. Diluted earnings per share were $1.08 for the 2012 period compared to $0.45 for the 2011 period.
Earnings for the 2012 quarter and six month period were favorably impacted by the July 2011 merger between American National and MidCarolina Financial Corporation ("MidCarolina"). Earnings for the 2011 quarter and six month period were negatively impacted by costs associated with the merger. Unless otherwise noted, most of the material differences between the periods are related to the merger.
Financial Performance and Overview
Charles H. Majors, Chairman and Chief Executive Officer, reported, "We are pleased with the first year of our merger with MidCarolina. As we closed the transaction on July 1, 2011, we had four primary goals for the ensuing twelve months. They were: (1) to integrate our new North Carolina offices into our organization and culture; (2) to convert the entire bank to a new and robust management information system; (3) to deal aggressively with any and all credit issues brought over from MidCarolina; and (4) to operate the combined organization successfully during these difficult economic times.
"We believe we have been successful in carrying out these four goals.
Integration and conversion: During this past year, we have successfully integrated MidCarolina and made it a vital part of American National. Broadening our regional footprint into North Carolina provides us with solid growth potential and a team of energetic and talented bankers with which to take advantage of any opportunities. On the technology front, in the first quarter of 2012, we converted both banks to a new and robust management information system.
Aggressive credit action: On June 30, 2011, American National had $514 million in loans. The July 2011 merger added $327 million (net of a $40.4 million fair value mark). At June 30, 2012, American National had $808 million in loans (net of a $19 million fair value mark). Between July 1, 2011 and June 30, 2012, loans are down $33 million or 3.92%. This is the result of a deliberate strategy to reduce the problem and criticized loan balances brought over from MidCarolina. On a standalone basis, for the same period, the Virginia market is up approximately $10 million in loan volumes, or almost 2%.
Ongoing operations and earnings: Our earnings for the first four quarters since the merger have been strong, a total of over $17 million. They continued to be strong for this quarter, exceeding $4.2 million. On a diluted EPS basis, we earned $0.54 compared to $0.16 a year earlier.
"Much of the increase was driven by the merger with MidCarolina. Approximately $2,100,000 of pretax income for the second quarter of 2012 was directly related to various categorical fair value adjustments, the majority of which results from the loan portfolio purchase discount. In fact, of this income, $800,000 related to early pay offs of loans in the purchased credit impaired loan portfolio.
"We are continuously reviewing and assessing the overall credit risk in the loan portfolio for both states. The purchase discount (also known as the "mark") on our acquired loans is reducing at a faster velocity than the related loan balances, because of loan structure, and this has implications for our loan loss methodology. Consequently, during the second quarter, our normally determined provision expense included $400,000 directly related to the acquired portfolio.
Majors concluded, "We all know these are difficult times for our industry, our region and our nation. However, we believe the challenges of today are the seeds of tomorrow's opportunities. At American National, our ongoing goal is to be the best possible community bank for our customers, our communities and our shareholders, in any economic or regulatory environment. We invite our customers and shareholders to help us build and grow this community bank for the future."
Capital
American National's capital ratios remain strong and exceed all regulatory requirements. For the quarter ended June 30, 2012, average shareholders' equity was 12.03% of average assets.
Book value per common share was $20.22 at June 30, 2012, compared to $18.06 at June 30, 2011.
Tangible book value per common share was $14.49 at June 30, 2012, compared to $14.23 at June 30, 2011.
Credit Quality Measurements
Non-performing assets ($8 million of non-performing loans and $4.7 million of foreclosed real estate) represented 0.99% of total assets at June 30, 2012, compared to 0.82% at June 30, 2011.
Of the non-performing loans, $5.3 million or 67% are in the North Carolina market. Of the foreclosed real estate, $2.2 million or 47% is in the North Carolina market.
At September 30, 2011, the conclusion of the first quarter after the MidCarolina merger, non-performing assets were $19.4 million ($13.5 million of non-performing loans and $5.9 million of foreclosed real estate) and represented 1.48% of total assets.
Annualized net charge offs to average loans were 16 basis points (0.16%) for the 2012 second quarter, compared to a net recovery of 12 basis points (-0.12%) for the same quarter in 2011.
At September 30, 2011, annualized net charge offs to average loans were 9 basis points (0.09%).
The annualized net charge offs for the first six months of 2012 were in a net recovery position of 3 basis points (-0.03%) compared to 14 basis points (0.14%) for the same period in 2011.
The allowance for loan losses as a percentage of total loans was 1.50% at June 30, 2012 compared to 1.70% at June 30, 2011. 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 for June 30, 2012.
At September 30, 2011, the allowance for loan losses as a percentage of total loans was 1.11%.
Net Interest Income
Net interest income before provision for loan losses increased to $12,816,000 in the second quarter of 2012 from $6,599,000 in second quarter of 2011, an increase of $6,217,000 or 94.2%.
For the 2012 quarter, the net interest margin increased 92 basis points (0.92%) to 4.57% compared to the same quarter in 2011.
Noninterest Income
Noninterest income totaled $2,800,000 in the second quarter of 2012, compared with $1,988,000 in the second quarter of 2011, an increase of $812,000 or 40.8%. Mortgage banking income increased to $519,000, up from $271,000 for the 2011 quarter, a 91.5% increase. Service charge related income and mortgage banking income have been positively impacted by the merger.
Noninterest Expense
Noninterest expense totaled $8,833,000 in the second quarter of 2012, compared to $7,028,000 in the second quarter of 2011, an increase of $1,805,000 or 25.7%. Expenses for the 2012 quarter were favorably impacted by final adjustments to estimated costs associated with the merger of $202,000, and expenses for the 2011 quarter were negatively impacted by costs associated with the merger of $835,000.
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 $566 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 | ||||||||||
| June 30 | ||||||||||
| ASSETS | 2012 | 2011 | ||||||||
| Cash and due from banks | $ | 18,529 | $ | 15,873 | ||||||
| Interest-bearing deposits in other banks | 10,380 | 23,310 | ||||||||
| Securities available for sale, at fair value | 334,523 | 231,393 | ||||||||
| Securities held to maturity | - | 2,381 | ||||||||
| Total securities | 334,523 | 233,774 | ||||||||
| Restricted stock, at cost | 6,268 | 3,666 | ||||||||
| Loans held for sale | 9,215 | 2,087 | ||||||||
| Loans | 808,069 | 514,081 | ||||||||
| Less allowance for loan losses | (12,099 | ) | (8,744 | ) | ||||||
| Net Loans | 795,970 | 505,337 | ||||||||
| Premises and equipment, net | 25,314 | 19,129 | ||||||||
| Other real estate owned, net | 4,731 | 3,513 | ||||||||
| Goodwill | 39,352 | 22,468 | ||||||||
| Core deposit intangibles, net | 5,502 | 1,132 | ||||||||
| Bank owned life insurance | 13,273 | 4,171 | ||||||||
| Accrued interest receivable and other assets | 27,835 | 11,556 | ||||||||
| Total assets | $ | 1,290,892 | $ | 846,016 | ||||||
| Liabilities | ||||||||||
| Demand deposits -- noninterest-bearing | $ | 196,727 | $ | 115,329 | ||||||
| Demand deposits -- interest-bearing | 149,229 | 95,453 | ||||||||
| Money market deposits | 170,505 | 67,273 | ||||||||
| Savings deposits | 78,842 | 63,632 | ||||||||
| Time deposits | 447,182 | 317,263 | ||||||||
| Total deposits | 1,042,485 | 658,950 | ||||||||
| Short-term borrowings: | ||||||||||
| Customer repurchase agreements | 46,113 | 50,329 | ||||||||
| Long-term borrowings | 10,142 | 413 | ||||||||
| Trust preferred capital notes | 27,267 | 20,619 | ||||||||
| Accrued interest payable and other liabilities | 6,461 | 4,515 | ||||||||
| Total liabilities | 1,132,468 | 734,826 | ||||||||
| Shareholders' equity | ||||||||||
| Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | - | - | ||||||||
| Common stock, $1 par, 20,000,000 shares authorized, 7,836,056 shares outstanding at June 30, 2012 and 6,156,563 shares outstanding at June 30, 2011 | 7,836 | 6,157 | ||||||||
| Capital in excess of par value | 56,825 | 27,670 | ||||||||
| Retained earnings | 86,642 | 74,810 | ||||||||
| Accumulated other comprehensive income, net | 7,121 | 2,553 | ||||||||
| Total shareholders' equity | 158,424 | 111,190 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,290,892 | $ | 846,016 | ||||||
| American National Bankshares Inc. and Subsidiaries | ||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||
| (Dollars in thousands, except share and per share data) | ||||||||||||||||||
| Unaudited | ||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||
| June 30 | June 30 | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Interest and Dividend Income: | ||||||||||||||||||
| Interest and fees on loans | $ | 12,683 | $ | 6,618 | $ | 25,803 | $ | 13,297 | ||||||||||
| Interest and dividends on securities: | ||||||||||||||||||
| Taxable | 1,056 | 1,085 | 2,135 | 2,254 | ||||||||||||||
| Tax-exempt | 1,077 | 827 | 2,159 | 1,543 | ||||||||||||||
| Dividends | 52 | 26 | 103 | 53 | ||||||||||||||
| Other interest income | 18 | 14 | 28 | 84 | ||||||||||||||
| Total interest and dividend income | 14,886 | 8,570 | 30,228 | 17,231 | ||||||||||||||
| Interest Expense: | ||||||||||||||||||
| Interest on deposits | 1,729 | 1,587 | 3,566 | 3,167 | ||||||||||||||
| Interest on short-term borrowings | 51 | 82 | 94 | 162 | ||||||||||||||
| Interest on long-term borrowings | 84 | 5 | 168 | 58 | ||||||||||||||
| Interest on trust preferred capital notes | 206 | 297 | 412 | 640 | ||||||||||||||
| Total interest expense | 2,070 | 1,971 | 4,240 | 4,027 | ||||||||||||||
| Net Interest Income | 12,816 | 6,599 | 25,988 | 13,204 | ||||||||||||||
| Provision for loan losses | 733 | 336 | 1,466 | 673 | ||||||||||||||
| Net Interest Income After Provision for Loan Losses | 12,083 | 6,263 | 24,522 | 12,531 | ||||||||||||||
| Noninterest Income: | ||||||||||||||||||
| Trust fees | 966 | 878 | 1,848 | 1,806 | ||||||||||||||
| Service charges on deposit accounts | 413 | 400 | 901 | 821 | ||||||||||||||
| Other fees and commissions | 445 | 338 | 902 | 654 | ||||||||||||||
| Mortgage banking income | 519 | 271 | 1,050 | 418 | ||||||||||||||
| Securities gains (losses), net | 160 | (19 | ) | 160 | (18 | ) | ||||||||||||
| Other | 297 | 120 | 1,173 | 278 | ||||||||||||||
| Total noninterest income | 2,800 | 1,988 | 6,034 | 3,959 | ||||||||||||||
| Noninterest Expense: | ||||||||||||||||||
| Salaries | 3,809 | 2,546 | 7,920 | 5,031 | ||||||||||||||
| Employee benefits | 799 | 624 | 1,877 | 1,165 | ||||||||||||||
| Occupancy and equipment | 1,048 | 696 | 2,013 | 1,395 | ||||||||||||||
| FDIC assessment | 213 | 197 | 446 | 402 | ||||||||||||||
| Bank franchise tax | 182 | 176 | 365 | 351 | ||||||||||||||
| Core deposit intangible amortization | 546 | 95 | 1,093 | 189 | ||||||||||||||
| Foreclosed real estate, net | 171 | 456 | 18 | 522 | ||||||||||||||
| Merger related expenses | (202 | ) | 835 | 49 | 1,144 | |||||||||||||
| Other | 2,267 | 1,403 | 4,979 | 2,608 | ||||||||||||||
| Total noninterest expense | 8,833 | 7,028 | 18,760 | 12,807 | ||||||||||||||
| Income Before Income Taxes | 6,050 | 1,223 | 11,796 | 3,683 | ||||||||||||||
| Income Taxes | 1,776 | 211 | 3,347 | 893 | ||||||||||||||
| Net Income | 4,274 | 1,012 | 8,449 | 2,790 | ||||||||||||||
| Dividends on preferred stock | - | - | - | - | ||||||||||||||
| Net income available to common shareholders | $ | 4,274 | $ | 1,012 | $ | 8,449 | $ | 2,790 | ||||||||||
| Net Income Per Common Share: | ||||||||||||||||||
| Basic | $ | 0.55 | $ | 0.16 | $ | 1.08 | $ | 0.45 | ||||||||||
| Diluted | $ | 0.54 | $ | 0.16 | $ | 1.08 | $ | 0.45 | ||||||||||
| Average Common Shares Outstanding: | ||||||||||||||||||
| Basic | 7,832,162 | 6,154,396 | 7,827,195 | 6,149,029 | ||||||||||||||
| Diluted | 7,849,142 | 6,161,265 | 7,839,364 | 6,157,032 | ||||||||||||||
| American National Bankshares Inc. and Subsidiaries | |||||||||||||||||||
| Financial Highlights | |||||||||||||||||||
| (In thousands, except share, ratio and nonfinancial data, unaudited) | 2nd Qtr | 1st Qtr | 2nd Qtr | YTD | YTD | ||||||||||||||
| 2012 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| EARNINGS | |||||||||||||||||||
| Interest income | $ | 14,886 | $ | 15,342 | $ | 8,570 | $ | 30,228 | $ | 17,231 | |||||||||
| Interest expense | 2,070 | 2,170 | 1,971 | 4,240 | 4,027 | ||||||||||||||
| Net interest income | 12,816 | 13,172 | 6,599 | 25,988 | 13,204 | ||||||||||||||
| Provision for loan losses | 733 | 733 | 336 | 1,466 | 673 | ||||||||||||||
| Noninterest income | 2,800 | 3,234 | 1,988 | 6,034 | 3,959 | ||||||||||||||
| Noninterest expense | 8,833 | 9,927 | 7,028 | 18,760 | 12,807 | ||||||||||||||
| Income taxes | 1,776 | 1,571 | 211 | 3,347 | 893 | ||||||||||||||
| Net income | 4,274 | 4,175 | 1,012 | 8,449 | 2,790 | ||||||||||||||
| PER COMMON SHARE | |||||||||||||||||||
| Earnings per share - basic | $ | 0.55 | $ | 0.53 | $ | 0.16 | $ | 1.08 | $ | 0.45 | |||||||||
| Earnings per share - diluted | 0.54 | 0.53 | 0.16 | 1.08 | 0.45 | ||||||||||||||
| Cash dividends declared | 0.23 | 0.23 | 0.23 | 0.46 | 0.46 | ||||||||||||||
| Book value per share | 20.22 | 19.80 | 18.06 | 20.22 | 18.06 | ||||||||||||||
| Book value per share - tangible (a) | 14.49 | 14.00 | 14.23 | 14.49 | 14.23 | ||||||||||||||
| Closing market price | 23.56 | 21.30 | 18.39 | 23.56 | 18.39 | ||||||||||||||
| FINANCIAL RATIOS | |||||||||||||||||||
| Return on average assets | 1.31 | % | 1.27 | % | 0.48 | % | 1.29 | % | 0.66 | % | |||||||||
| Return on average equity | 10.86 | 10.80 | 3.65 | 10.83 | 5.07 | ||||||||||||||
| Return on average tangible equity (b) | 16.62 | 16.70 | 5.00 | 16.67 | 6.79 | ||||||||||||||
| Average equity to average assets | 12.03 | 11.79 | 13.06 | 11.91 | 13.06 | ||||||||||||||
| Net interest margin, taxable equivalent | 4.57 | 4.55 | 3.65 | 4.63 | 3.65 | ||||||||||||||
| Efficiency ratio | 55.56 | 61.65 | 73.00 | 58.15 | 68.59 | ||||||||||||||
| Effective tax rate | 29.36 | 27.34 | 17.25 | 28.38 | 24.25 | ||||||||||||||
| PERIOD-END BALANCES | |||||||||||||||||||
| Securities | $ | 340,791 | $ | 343,395 | $ | 237,440 | $ | 340,791 | $ | 237,440 | |||||||||
| Loans held for sale | 9,215 | 3,774 | 2,087 | 9,215 | 2,087 | ||||||||||||||
| Loans, net of unearned income | 808,069 | 816,471 | 514,081 | 808,069 | 514,081 | ||||||||||||||
| Goodwill and other intangibles | 44,854 | 45,400 | 23,600 | 44,854 | 23,600 | ||||||||||||||
| Assets | 1,290,892 | 1,323,260 | 846,016 | 1,290,892 | 846,016 | ||||||||||||||
| Assets - tangible (a) | 1,246,038 | 1,277,860 | 822,416 | 1,246,038 | 822,416 | ||||||||||||||
| Deposits | 1,042,485 | 1,074,730 | 658,950 | 1,042,485 | 658,950 | ||||||||||||||
| Customer repurchase agreements | 46,113 | 48,651 | 50,329 | 46,113 | 50,329 | ||||||||||||||
| Long-term borrowings | 37,409 | 37,412 | 21,032 | 37,409 | 21,032 | ||||||||||||||
| Shareholders' equity | 158,424 | 155,024 | 111,190 | 158,424 | 111,190 | ||||||||||||||
| Shareholders' equity - tangible (a) | 113,570 | 109,624 | 87,590 | 113,570 | 87,590 | ||||||||||||||
| AVERAGE BALANCES | |||||||||||||||||||
| Securities | $ | 335,996 | $ | 319,159 | $ | 235,725 | $ | 327,578 | $ | 231,185 | |||||||||
| Loans held for sale | 5,819 | 5,500 | 1,984 | 5,659 | 1,747 | ||||||||||||||
| Loans, net of unearned income | 814,042 | 813,544 | 515,161 | 816,543 | 515,882 | ||||||||||||||
| Interest-earning assets | 1,173,487 | 1,169,822 | 773,750 | 1,174,404 | 769,544 | ||||||||||||||
| Goodwill and other intangibles | 45,214 | 45,400 | 23,651 | 45,263 | 23,700 | ||||||||||||||
| Assets | 1,308,384 | 1,311,794 | 848,783 | 1,310,353 | 842,882 | ||||||||||||||
| Assets - tangible (a) | 1,263,170 | 1,266,394 | 825,132 | 1,265,090 | 819,182 | ||||||||||||||
| Interest-bearing deposits | 854,673 | 880,270 | 549,397 | 867,471 | 545,771 | ||||||||||||||
| Deposits | 1,054,427 | 1,065,415 | 666,325 | 1,058,988 | 659,661 | ||||||||||||||
| Customer repurchase agreements | 48,742 | 47,229 | 47,220 | 47,986 | 45,500 | ||||||||||||||
| Other short-term borrowings | 1,878 | 115 | - | 997 | - | ||||||||||||||
| Long-term borrowings | 37,419 | 37,421 | 21,062 | 37,420 | 24,439 | ||||||||||||||
| Shareholders' equity | 157,390 | 154,685 | 110,859 | 156,037 | 110,046 | ||||||||||||||
| Shareholders' equity - tangible (a) | 112,176 | 109,285 | 87,208 | 110,774 | 86,346 | ||||||||||||||
| CAPITAL | |||||||||||||||||||
| Average shares outstanding - basic | 7,832,162 | 7,822,228 | 6,154,396 | 7,827,195 | 6,149,029 | ||||||||||||||
| Average shares outstanding - diluted | 7,849,142 | 7,833,061 | 6,161,265 | 7,839,364 | 6,157,032 | ||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||
| Beginning balance | $ | 11,691 | $ | 10,529 | $ | 8,257 | $ | 10,529 | $ | 8,420 | |||||||||
| Provision for loan losses | 733 | 733 | 336 | 1,466 | 673 | ||||||||||||||
| Charge-offs | (728 | ) | (340 | ) | (134 | ) | (1,068 | ) | (705 | ) | |||||||||
| Recoveries | 403 | 769 | 285 | 1,172 | 356 | ||||||||||||||
| Ending balance | $ | 12,099 | $ | 11,691 | $ | 8,744 | $ | 12,099 | $ | 8,744 | |||||||||
| LOANS | |||||||||||||||||||
| Construction and land development | $ | 50,913 | $ | 52,446 | $ | 35,756 | $ | 50,913 | $ | 35,756 | |||||||||
| Commercial real estate | 354,441 | 347,815 | 208,685 | 354,441 | 208,685 | ||||||||||||||
| Residential real estate | 170,893 | 182,010 | 114,510 | 170,893 | 114,510 | ||||||||||||||
| Home equity | 95,522 | 95,071 | 61,218 | 95,522 | 61,218 | ||||||||||||||
| Commercial and industrial | 128,846 | 131,711 | 87,449 | 128,846 | 87,449 | ||||||||||||||
| Consumer | 7,454 | 7,418 | 6,463 | 7,454 | 6,463 | ||||||||||||||
| Total | $ | 808,069 | $ | 816,471 | $ | 514,081 | $ | 808,069 | $ | 514,081 | |||||||||
| NONPERFORMING ASSETS AT PERIOD-END | |||||||||||||||||||
| Nonperforming loans: | |||||||||||||||||||
| 90 days past due | $ | - | $ | 183 | $ | - | $ | - | $ | - | |||||||||
| Nonaccrual | 7,995 | 13,337 | 3,464 | 7,995 | 3,464 | ||||||||||||||
| Foreclosed real estate | 4,731 | 6,369 | 3,513 | 4,731 | 3,513 | ||||||||||||||
| Nonperforming assets | $ | 12,726 | $ | 19,889 | $ | 6,977 | $ | 12,726 | $ | 6,977 | |||||||||
| ASSET QUALITY RATIOS | |||||||||||||||||||
| Annualized net chargeoffs to average loans | 0.16 | % | (0.21 | )% | (0.12 | )% | (0.03 | )% | 0.14 | % | |||||||||
| Nonperforming assets to total assets | 0.99 | 1.50 | 0.82 | 0.99 | 0.82 | ||||||||||||||
| Nonperforming loans to total loans | 0.99 | 1.66 | 0.67 | 0.99 | 0.67 | ||||||||||||||
| Allowance for loan losses to total loans | 1.50 | 1.43 | 1.70 | 1.50 | 1.70 | ||||||||||||||
| Allowance for loan losses to nonperforming loans | 151.33 | 86.47 | 252.42 | 151.33 | 252.42 | ||||||||||||||
| OTHER DATA | |||||||||||||||||||
| Fiduciary assets at period-end (c) | $ | 374,562 | $ | 385,660 | $ | 368,579 | $ | 374,562 | $ | 368,579 | |||||||||
| Retail brokerage assets at period-end (c) | $ | 191,577 | $ | 191,446 | $ | 49,636 | $ | 191,577 | $ | 49,636 | |||||||||
| Number full-time equivalent employees (d) | 315 | 316 | 244 | 315 | 244 | ||||||||||||||
| Number of full service offices | 25 | 25 | 18 | 25 | 18 | ||||||||||||||
| Number of loan production offices | 2 | 2 | 1 | 2 | 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 | |||||||||||||||||||
| Net Interest Income Analysis | ||||||||||||||||||||
| For the Three Months Ended June 30, 2012 and 2011 | ||||||||||||||||||||
| (in thousands, except rates) | ||||||||||||||||||||
| Interest | ||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | $ | 130,697 | $ | 79,595 | $ | 1,727 | $ | 909 | 5.30 | % | 4.58 | % | ||||||||
| Real estate | 681,870 | 430,872 | 10,859 | 5,620 | 6.37 | 5.22 | ||||||||||||||
| Consumer | 7,294 | 6,678 | 139 | 120 | 7.64 | 7.21 | ||||||||||||||
| Total loans | 819,861 | 517,145 | 12,725 | 6,649 | 6.21 | 5.15 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Federal agencies | 41,517 | 35,919 | 155 | 256 | 1.49 | 2.85 | ||||||||||||||
| Mortgage-backed & CMOs | 99,391 | 56,133 | 486 | 466 | 1.96 | 3.32 | ||||||||||||||
| State and municipal | 182,499 | 137,843 | 1,975 | 1,585 | 4.33 | 4.60 | ||||||||||||||
| Other | 12,589 | 5,830 | 117 | 57 | 3.72 | 3.91 | ||||||||||||||
| Total securities | 335,996 | 235,725 | 2,733 | 2,364 | 3.25 | 4.01 | ||||||||||||||
| Deposits in other banks | 17,630 | 20,880 | 18 | 14 | 0.41 | 0.27 | ||||||||||||||
| Total interest-earning assets | 1,173,487 | 773,750 | 15,476 | 9,027 | 5.28 | 4.67 | ||||||||||||||
| Non-earning assets | 134,897 | 75,033 | ||||||||||||||||||
| Total assets | $ | 1,308,384 | $ | 848,783 | ||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 155,550 | $ | 98,224 | 54 | 17 | 0.14 | 0.07 | ||||||||||||
| Money market | 172,439 | 61,714 | 127 | 67 | 0.30 | 0.44 | ||||||||||||||
| Savings | 78,608 | 63,716 | 30 | 22 | 0.15 | 0.14 | ||||||||||||||
| Time | 448,076 | 325,743 | 1,518 | 1,481 | 1.36 | 1.82 | ||||||||||||||
| Total deposits | 854,673 | 549,397 | 1,729 | 1,587 | 0.81 | 1.16 | ||||||||||||||
| Customer repurchase agreements | 48,742 | 47,220 | 49 | 82 | 0.40 | 0.70 | ||||||||||||||
| Other short-term borrowings | 1,878 | - | 2 | - | 0.43 | - | ||||||||||||||
| Long-term borrowings | 37,419 | 21,062 | 290 | 302 | 3.10 | 5.74 | ||||||||||||||
| Total interest-bearing liabilities | 942,712 | 617,679 | 2,070 | 1,971 | 0.88 | 1.28 | ||||||||||||||
| Noninterest bearing demand deposits | 199,754 | 116,928 | ||||||||||||||||||
| Other liabilities | 8,528 | 3,317 | ||||||||||||||||||
| Shareholders' equity | 157,390 | 110,859 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,308,384 | $ | 848,783 | ||||||||||||||||
| Interest rate spread | 4.40 | % | 3.39 | % | ||||||||||||||||
| Net interest margin | 4.57 | % | 3.65 | % | ||||||||||||||||
| Net interest income (taxable equivalent basis) | 13,406 | 7,056 | ||||||||||||||||||
| Less: Taxable equivalent adjustment | 590 | 457 | ||||||||||||||||||
| Net interest income | $ | 12,816 | $ | 6,599 | ||||||||||||||||
| Net Interest Income Analysis | ||||||||||||||||||||
| For the Six Months Ended June 30, 2012 and 2011 | ||||||||||||||||||||
| (in thousands, except rates) | ||||||||||||||||||||
| Interest | ||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | $ | 137,057 | $ | 78,765 | $ | 3,538 | $ | 1,789 | 5.18 | % | 4.58 | % | ||||||||
| Real estate | 674,964 | 431,775 | 21,977 | 11,315 | 6.51 | 5.24 | ||||||||||||||
| Consumer | 10,181 | 7,089 | 366 | 256 | 7.21 | 7.28 | ||||||||||||||
| Total loans | 822,202 | 517,629 | 25,881 | 13,360 | 6.30 | 5.17 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Federal agencies | 36,178 | 39,612 | 317 | 579 | 1.75 | 2.92 | ||||||||||||||
| Mortgage-backed & CMOs | 99,255 | 57,706 | 1,015 | 956 | 2.05 | 3.31 | ||||||||||||||
| State and municipal | 181,683 | 127,934 | 3,951 | 2,993 | 4.35 | 4.68 | ||||||||||||||
| Other | 10,462 | 5,933 | 211 | 115 | 4.03 | 3.88 | ||||||||||||||
| Total securities | 327,578 | 231,185 | 5,494 | 4,643 | 3.35 | 4.02 | ||||||||||||||
| Deposits in other banks | 24,624 | 20,730 | 28 | 84 | 0.23 | 0.82 | ||||||||||||||
| Total interest-earning assets | 1,174,404 | 769,544 | 31,403 | 18,087 | 5.35 | 4.71 | ||||||||||||||
| Non-earning assets | 135,949 | 73,338 | ||||||||||||||||||
| Total assets | $ | 1,310,353 | $ | 842,882 | ||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 163,014 | $ | 97,465 | 110 | 35 | 0.14 | 0.07 | ||||||||||||
| Money market | 179,180 | 62,416 | 288 | 150 | 0.32 | 0.48 | ||||||||||||||
| Savings | 77,557 | 63,114 | 59 | 43 | 0.15 | 0.14 | ||||||||||||||
| Time | 447,720 | 322,776 | 3,109 | 2,939 | 1.39 | 1.84 | ||||||||||||||
| Total deposits | 867,471 | 545,771 | 3,566 | 3,167 | 0.82 | 1.17 | ||||||||||||||
| Customer repurchase agreements | 47,986 | 45,500 | 92 | 162 | 0.38 | 0.72 | ||||||||||||||
| Other short-term borrowings | 997 | 68 | 2 | - | 0.47 | 0.47 | ||||||||||||||
| Long-term borrowings | 37,420 | 24,439 | 580 | 698 | 3.10 | 5.71 | ||||||||||||||
| Total interest-bearing liabilities | 953,874 | 615,778 | 4,240 | 4,027 | 0.89 | 1.32 | ||||||||||||||
| Noninterest bearing demand deposits | 191,517 | 113,890 | ||||||||||||||||||
| Other liabilities | 8,925 | 3,168 | ||||||||||||||||||
| Shareholders' equity | 156,037 | 110,046 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,310,353 | $ | 842,882 | ||||||||||||||||
| Interest rate spread | 4.46 | % | 3.39 | % | ||||||||||||||||
| Net interest margin | 4.63 | % | 3.65 | % | ||||||||||||||||
| Net interest income (taxable equivalent basis) | 27,163 | 14,060 | ||||||||||||||||||
| Less: Taxable equivalent adjustment | 1,175 | 856 | ||||||||||||||||||
| Net interest income | $ | 25,988 | $ | 13,204 | ||||||||||||||||