SOURCE: American National Bankshares Inc.

American National Bankshares Inc.

July 20, 2012 16:15 ET

American National Bankshares Inc. Reports Second Quarter 2012 Earnings

DANVILLE, VA--(Marketwire - Jul 20, 2012) - American National Bankshares Inc. (NASDAQ: AMNB)

  • 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. (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced second quarter 2012 net income of $4,274,000 compared to $1,012,000 for the second quarter of 2011, a $3,262,000 or 322% increase. Diluted earnings per share were $0.54 for the 2012 quarter compared to $0.16 for the 2011 quarter. This quarterly net income produced for 2012 a return on average assets of 1.31%, a return on average equity of 10.86%, and a return on average tangible equity of 16.62%.

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