SOURCE: American National Bankshares Inc.

American National Bankshares Inc.

July 17, 2014 16:05 ET

American National Bankshares Inc. Reports Second Quarter 2014 Earnings

DANVILLE, VA--(Marketwired - Jul 17, 2014) -  American National Bankshares Inc. (NASDAQ: AMNB)

  • Q2 net income of $3.2 million and diluted EPS of $0.41
  • Net interest margin of 3.68% for Q2 2014
  • Nonperforming assets 0.60% of total assets
  • Tangible common equity to tangible assets 10.37%
  • Loan volume increase $18.4 million (2.3%) ytd and $29.7 million (3.8%) qtd

American National Bankshares Inc. (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced second quarter 2014 net income of $3,233,000 compared to $4,210,000 for the second quarter of 2013, a $977,000 or 23.2% decrease. Diluted earnings per share were $0.41 for the 2014 quarter and $0.53 for the comparable 2013 quarter. Net income for the second quarter of 2014 produced a return on average assets of 1.00%, a return on average equity of 7.53%, and a return on average tangible equity of 10.67%.

Net income for the first six months of 2014 was $6,683,000 compared to $8,361,000 for the comparable period of 2013, a $1,678,000 or 20.1% decrease. Diluted earnings per share were $0.85 for the 2014 period compared to $1.06 for the 2013 period.

Earnings for the 2014 and 2013 quarters and six month periods were favorably impacted by the July 2011 merger between American National and MidCarolina Financial Corporation ("MidCarolina"). However, as anticipated, the magnitude of that favorable impact is rapidly declining and that is the primary driver in the change in earnings for the quarter and six month period.

Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, reported, "We are pleased that over the past year our loan portfolio has seen growth and we are even more pleased that the momentum of that growth is increasing.

"At June 30, 2014, American National had $813,057,000 in loans compared to $794,045,000 at June 30, 2013, an increase of $19,012,000 or 2.4%.

"Compared to December 31, 2013, loans are up $18,386,000 or 2.3%.

"Compared to March 31, 2014, loans are up $29,688,000 or 3.8%. 

"We consider the increase in loan volume and demand to be an indicator of slowly improving local and regional economic conditions.

"At June 30, 2014, American National had $1,035,800,000 in deposits compared to $1,046,394,000 at June 30, 2013, a decrease of $10,594,000 or 1.0%.

"Compared to December 31, 2013, deposits are down $21,875,000 or 2.1%.

"Compared to March 31, 2014, deposits are down $15,449,000 or 1.5%. 

"The decline in deposits is related to lower levels of time deposits. We will adjust our pricing strategy appropriately with current market conditions and the liquidity requirements for our bank. Our primary focus on the liability side of the balance sheet is growing core deposits and their affiliated relationships. The never ending challenge in this ongoing low rate environment is to fund our bank in a cost effective and yet competitive manner. Our cost of deposits for the second quarter 2014 was 0.57%, down from 0.66% for the second quarter 2013.

"Our earnings for the second quarter were $3,233,000. This is down 23.2% from the same quarter of 2013. On a diluted per share basis earnings were $0.41 per share for the 2014 quarter compared to $0.53 per share for the 2013 quarter.

"There were a number of factors driving earnings for the quarter.

"The impact of the fair value accounting from the MidCarolina merger continues to be favorable, though decreasing significantly quarter to quarter. We had a pretax benefit of $293,000 for the second quarter of 2014, compared to $1,736,000 for the second quarter of 2013. This is mostly related to the acquired loan portfolio and we expect this benefit will continue to accrete rapidly to income.

"Loan loss provision expense was $150,000 for the 2014 quarter compared to $0 for the comparable 2013 quarter. The need for provision expense was related to the growth in the loan portfolio, the regular quarterly review of our impaired loans, and it was mitigated by continuing strong asset quality and some improving economic indicators.

"In noninterest income, there was very little overall change. Mortgage banking income fell substantially, but that decline was offset by improved trust income and securities gains.

"In noninterest expense, expenses for the second quarter of 2014 declined slightly from the second quarter of 2013. This modest improvement was related to a net foreclosed real estate gain in the 2014 quarter compared to a substantial net expense in the 2013 quarter." 

Haley concluded, "We are very pleased about the loan growth in the second quarter of this year. But a quarter is a very short period of time and trends are best measured over years and decades. We will continue to grow this banking franchise, organically and through acquisitions, to the next level. We know the operating environment has been, is and will continue to be challenging, but we are seeing the beginnings of an economic recovery. We look forward to serving our customers and continuing to build and improve one of the best community banks in America." 

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

Average shareholders' equity was 13.22% of average assets at June 30, 2014, compared to 12.76% at June 30, 2013.

Book value per common share was $21.95 at June 30, 2014, compared to $20.70 at June 30, 2013.

Tangible book value per common share was $16.65 at June 30, 2014, compared to $15.25 at June 30, 2013.

Tangible common equity to tangible assets was 10.37% at June 30, 2014, compared to 9.60% at June 30, 2013.

Credit Quality Measurements
Non-performing assets, consisting of $5,224,000 of non-performing loans and $2,622,000 of foreclosed real estate, represented 0.60% of total assets at June 30, 2014, compared to 0.88% of total assets at June 30, 2013. 

Annualized net charge-offs for the second quarter of 2014 were zero basis points (0.00%) of average loans, compared to net recoveries of seven basis points (0.07%) for the second quarter of 2013.

Net Interest Income
Net interest income before provision for loan losses decreased to $10,351,000 in the second quarter of 2014 from $11,693,000 in the second quarter of 2013, a decrease of $1,342,000 or 11.5%.

For the 2014 quarter, net interest margin was 3.68% compared to 4.16% for the same quarter in 2013, a decrease of 48 basis points (0.48%). 

The decline in net interest income and net interest margin was driven by falling yields on earning assets and lower accretion income. It was partially mitigated by reduced cost of interest bearing liabilities.

Provision expense
Provision expense for the second quarter of 2014 was $150,000 compared to $0 for the second quarter of 2013.

The primary driver for this increase was the second quarter net loan volume increase of $29.7 million or 3.8%. It was mitigated by continuing high asset quality and improving economic conditions.

The allowance for loan losses as a percentage of total loans was 1.57% at June 30, 2014, compared to 1.59% at December 31, 2013, and 1.60% at June 30, 2013. The gradual decrease in the allowance was driven by improvement in loss history combined with improving qualitative factors, including strong asset quality metrics and some improvement in local and national economic factors.

Noninterest Income 
Noninterest income totaled $2,700,000 in the second quarter of 2014, compared with $2,686,000 in the second quarter of 2013, an increase of $14,000 or 0.5%.

The largest negative factor impacting the change was a $256,000 or 48.2% decline in mortgage banking income. This reduction was directly related to changes in the overall market demand for mortgage loans. It was basically offset by increases in trust fee income and securities gains.

Noninterest Expense
Noninterest expense totaled $8,365,000 in the second quarter of 2014, compared to $8,428,000 in the second quarter of 2013, a decrease of $63,000 or 0.7%. 

The major driver for this slight decrease in noninterest expense was a $202,000 or 104.7% improvement in net foreclosed real estate expense.

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 $648 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   2014     2013  
                 
Cash and due from banks   $ 21,295     $ 18,994  
Interest-bearing deposits in other banks     22,948       37,720  
                 
Securities available for sale, at fair value     349,719       340,135  
Restricted stock, at cost     5,064       4,880  
Loans held for sale     118       4,098  
                 
Loans     813,057       794,045  
  Less allowance for loan losses     (12,763 )     (12,676 )
    Net Loans     800,294       781,369  
                 
Premises and equipment, net     23,083       24,269  
Other real estate owned, net     2,622       5,569  
Goodwill     39,043       39,043  
Core deposit intangibles, net     2,498       3,819  
Bank owned life insurance     14,945       14,495  
Accrued interest receivable and other assets     19,019       19,626  
                 
    Total assets   $ 1,300,648     $ 1,294,017  
                 
                 
Liabilities                
  Demand deposits -- noninterest-bearing   $ 228,588     $ 213,123  
  Demand deposits -- interest-bearing     189,700       169,204  
  Money market deposits     165,090       173,696  
  Savings deposits     88,539       84,489  
  Time deposits     363,883       405,882  
    Total deposits     1,035,800       1,046,394  
                 
  Short-term borrowings:                
    Customer repurchase agreements     38,420       41,972  
    Other short-term borrowings     12,000       -  
  Long-term borrowings     9,924       10,015  
  Trust preferred capital notes     27,470       27,368  
  Accrued interest payable and other liabilities     4,951       5,332  
    Total liabilities     1,128,565       1,131,081  
                 
Shareholders' equity                
  Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding     -       -  
  Common stock, $1 par, 20,000,000 shares authorized, 7,840,132 shares outstanding at June 30, 2014 and 7,872,250 shares outstanding at June 30, 2013     7,840       7,872  
  Capital in excess of par value     56,944       57,581  
  Retained earnings     102,152       95,333  
  Accumulated other comprehensive income, net     5,147       2,150  
    Total shareholders' equity     172,083       162,936  
                   
    Total liabilities and shareholders' equity   $ 1,300,648     $ 1,294,017  
                     
                     
                     
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
    2014     2013   2014   2013
Interest and Dividend Income:                          
  Interest and fees on loans   $ 9,687     $ 11,358   $ 19,534   $ 22,753
  Interest and dividends on securities:                          
    Taxable     968       851     1,932     1,729
    Tax-exempt     1,016       1,045     2,051     2,097
    Dividends     74       54     149     109
  Other interest income     35       39     68     68
    Total interest and dividend income     11,780       13,347     23,734     26,756
                           
Interest Expense:                          
  Interest on deposits     1,161       1,369     2,390     2,805
  Interest on short-term borrowings     2       14     4     35
  Interest on long-term borrowings     81       82     161     164
  Interest on trust preferred capital notes     185       189     369     377
    Total interest expense     1,429       1,654     2,924     3,381
                           
Net Interest Income     10,351       11,693     20,810     23,375
  Provision for loan losses     150       -     150     294
                           
Net Interest Income After Provision for Loan Losses     10,201       11,693     20,660     23,081
                           
Noninterest Income:                          
  Trust fees     1,017       944     2,139     1,532
  Service charges on deposit accounts     431       429     844     838
  Other fees and commissions     493       463     937     922
  Mortgage banking income     275       531     538     1,249
  Securities gains, net     150       1     189     199
  Other     334       318     756     716
    Total noninterest income     2,700       2,686     5,403     5,456
                           
Noninterest Expense:                          
  Salaries     3,638       3,503     7,176     6,942
  Employee benefits     847       867     1,822     1,766
  Occupancy and equipment     910       872     1,846     1,788
  FDIC assessment     165       161     329     322
  Bank franchise tax     231       185     453     372
  Core deposit intangible amortization     330       421     661     841
  Data processing     345       310     693     587
  Software     235       249     497     461
  Foreclosed real estate, net     (9 )     193     7     436
  Other     1,673       1,667     3,304     3,231
    Total noninterest expense     8,365       8,428     16,788     16,746
                           
Income Before Income Taxes     4,536       5,951     9,275     11,791
Income Taxes     1,303       1,741     2,592     3,430
Net Income   $ 3,233     $ 4,210   $ 6,683   $ 8,361
                           
Net Income Per Common Share:                          
  Basic   $ 0.41     $ 0.54   $ 0.85   $ 1.06
  Diluted   $ 0.41     $ 0.53   $ 0.85   $ 1.06
Average Common Shares Outstanding:                          
  Basic     7,872,079       7,867,222     7,886,232     7,862,719
  Diluted     7,879,854       7,876,969     7,896,541     7,872,351
                             
                             
                             
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  
  2014   2014   2013   2014   2013  
EARNINGS                              
  Interest income $ 11,780   $ 11,954   $ 13,347   $ 23,734   $ 26,756  
  Interest expense   1,429     1,495     1,654     2,924     3,381  
  Net interest income   10,351     10,459     11,693     20,810     23,375  
  Provision for loan losses   150     -     -     150     294  
  Noninterest income   2,700     2,703     2,686     5,403     5,456  
  Noninterest expense   8,365     8,423     8,428     16,788     16,746  
  Income taxes   1,303     1,289     1,741     2,592     3,430  
  Net income   3,233     3,450     4,210     6,683     8,361  
                               
PER COMMON SHARE                              
  Earnings per share - basic $ 0.41   $ 0.44   $ 0.54   $ 0.85   $ 1.06  
  Earnings per share - diluted   0.41     0.44     0.53     0.85     1.06  
  Cash dividends paid   0.23     0.23     0.23     0.46     0.46  
  Book value per share   21.95     21.57     20.70     21.95     20.70  
  Book value per share - tangible (a)   16.65     16.27     15.25     16.65     15.25  
  Closing market price   21.73     23.52     23.24     21.73     23.24  
                               
FINANCIAL RATIOS                              
  Return on average assets   1.00 %   1.06 %   1.29 %   1.03 %   1.29 %
  Return on average equity   7.53     8.12     10.14     7.82     10.11  
  Return on average tangible equity (b)   10.67     11.54     14.66     11.10     14.68  
  Average equity to average assets   13.22     13.05     12.76     13.14     12.72  
  Tangible equity to tangible assets (a)   10.37     10.23     9.60     10.37     9.60  
  Net interest margin, taxable equivalent   3.68     3.71     4.16     3.70     4.18  
  Efficiency ratio (e)   62.87     61.82     55.72     62.34     55.73  
  Effective tax rate   28.73     27.20     29.26     27.95     29.09  
                               
PERIOD-END BALANCES                              
  Securities $ 354,783   $ 349,123   $ 345,015   $ 354,783   $ 345,015  
  Loans held for sale   118     1,389     4,098     118     4,098  
  Loans, net of unearned income   813,057     783,369     794,045     813,057     794,045  
  Goodwill and other intangibles   41,541     41,871     42,862     41,541     42,862  
  Assets   1,300,648     1,299,802     1,294,017     1,300,648     1,294,017  
  Assets - tangible (a)   1,259,107     1,257,931     1,251,155     1,259,107     1,251,155  
  Deposits   1,035,800     1,051,249     1,046,394     1,035,800     1,046,394  
  Customer repurchase agreements   38,420     34,153     41,972     38,420     41,972  
  Other short-term borrowings   12,000     -     -     12,000     -  
  Long-term borrowings   37,394     37,363     37,383     37,394     37,383  
  Shareholders' equity   172,083     170,499     162,936     172,083     162,936  
  Shareholders' equity - tangible (a)   130,542     128,628     120,074     130,542     120,074  
                               
AVERAGE BALANCES                              
  Securities $ 346,726   $ 345,152   $ 335,246   $ 345,446   $ 330,821  
  Loans held for sale   1,685     2,032     4,181     1,858     6,532  
  Loans, net of unearned income   793,060     788,419     791,292     790,752     786,844  
  Interest-earning assets   1,182,559     1,186,904     1,177,536     1,184,172     1,174,496  
  Goodwill and other intangibles   41,738     42,077     43,124     41,907     43,337  
  Assets   1,299,535     1,302,639     1,302,491     1,301,078     1,299,388  
  Assets - tangible (a)   1,257,797     1,260,562     1,259,367     1,259,171     1,256,051  
  Interest-bearing deposits   820,342     830,229     828,844     825,258     826,347  
  Deposits   1,043,479     1,051,614     1,045,444     1,047,524     1,041,810  
  Customer repurchase agreements   40,720     37,797     47,081     39,267     48,679  
  Other short-term borrowings   571     -     -     287     -  
  Long-term borrowings   37,376     37,373     37,393     37,374     37,396  
  Shareholders' equity   171,784     170,046     166,150     170,920     165,339  
  Shareholders' equity - tangible (a)   130,046     127,969     123,026     129,013     122,002  
                                 
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  
  2014   2014   2013   2014   2013  
CAPITAL                              
  Average shares outstanding - basic   7,872,079     7,904,759     7,867,222     7,886,232     7,862,719  
  Average shares outstanding - diluted   7,879,854     7,917,601     7,876,969     7,896,541     7,872,351  
                               
ALLOWANCE FOR LOAN LOSSES                              
  Beginning balance $ 12,614   $ 12,600   $ 12,528   $ 12,600   $ 12,118  
  Provision for loan losses   150     0     -     150     294  
  Charge-offs   (95 )   (73 )   (180 )   (168 )   (467 )
  Recoveries   94     87     328     181     731  
  Ending balance $ 12,763   $ 12,614   $ 12,676   $ 12,763   $ 12,676  
                               
LOANS                              
  Construction and land development $ 50,856   $ 40,458   $ 44,029   $ 50,856   $ 44,029  
  Commercial real estate   363,657     358,362     354,323     363,657     354,323  
  Residential real estate   175,387     170,517     168,965     175,387     168,965  
  Home equity   89,725     89,081     89,688     89,725     89,688  
  Commercial and industrial   128,228     119,042     130,721     128,228     130,721  
  Consumer   5,204     5,909     6,319     5,204     6,319  
  Total $ 813,057   $ 783,369   $ 794,045   $ 813,057   $ 794,045  
                               
NONPERFORMING ASSETS AT PERIOD-END                              
  Nonperforming loans:                              
  90 days past due and accruing $ -   $ -   $ -   $ -   $ -  
  Nonaccrual   5,224     5,557     5,828     5,224     5,828  
  Foreclosed real estate   2,622     3,233     5,569     2,622     5,569  
  Nonperforming assets $ 7,846   $ 8,790   $ 11,397   $ 7,846   $ 11,397  
                               
ASSET QUALITY RATIOS                              
  Allowance for loan losses to total loans   1.57     1.61     1.60     1.57     1.60  
  Allowance for loan losses to nonperforming loans   244.31     226.99     217.50     244.31     217.50  
  Nonperforming assets to total assets   0.60     0.68     0.88     0.60     0.88  
  Nonperforming loans to total loans   0.64     0.71     0.73     0.64     0.73  
  Annualized net charge-offs (recoveries) to average loans   0.00 %   (0.01 )%   (0.07 )%   0.00 %   (0.07 )%
                               
                               
OTHER DATA                              
  Fiduciary assets at period-end (c) $ 450,352   $ 435,635   $ 417,861   $ 450,352   $ 417,861  
  Retail brokerage assets at period-end (c) $ 197,625   $ 189,130   $ 167,785   $ 197,625   $ 167,785  
  Number full-time equivalent employees (d)   291     292     292     291     292  
  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
(e) - The efficiency ratio is calculated by dividing noninterest expense excluding gains or losses on the sale of OREO by net interest income including tax equivalent income on nontaxable loans and securities and excluding (a) gains or losses on securities and (b) gains or losses on sale of premises and equipment.
 
 
 
Net Interest Income Analysis  
For the Three Months Ended June 30, 2014 and 2013  
(in thousands, except rates)  
   
          Interest            
  Average Balance   Income/Expense   Yield/Rate  
                           
  2014   2013   2014   2013   2014     2013  
Loans:                                  
  Commercial $ 120,216   $ 132,381   $ 1,285   $ 1,605   4.29 %   4.86 %
  Real estate   669,537     656,995     8,325     9,682   4.97     5.89  
  Consumer   4,992     6,097     87     102   6.99     6.71  
    Total loans   794,745     795,473     9,697     11,389   4.88     5.73  
                                   
Securities:                                  
  Federal agencies & GSEs   79,284     53,349     227     126   1.15     0.94  
  Mortgage-backed & CMOs   62,356     76,999     368     338   2.36     1.76  
  State and municipal   190,821     191,536     1,866     1,927   3.91     4.02  
  Other   14,265     13,362     121     95   3.39     2.84  
    Total securities   346,726     335,246     2,582     2,486   2.98     2.97  
                                   
Deposits in other banks   41,088     46,817     35     39   0.34     0.33  
                                   
  Total interest-earning assets   1,182,559     1,177,536     12,314     13,914   4.17     4.73  
                                   
Non-earning assets   116,976     124,955                        
                                   
    Total assets $ 1,299,535   $ 1,302,491                        
                                   
Deposits:                                  
  Demand $ 185,601   $ 164,094     19     28   0.04     0.07  
  Money market   171,466     169,417     50     78   0.12     0.18  
  Savings   89,485     84,471     11     17   0.05     0.08  
  Time   373,790     410,862     1,081     1,246   1.16     1.22  
    Total deposits   820,342     828,844     1,161     1,369   0.57     0.66  
                                   
Customer repurchase agreements   40,720     47,081     1     14   0.01     0.12  
Other short-term borrowings   571     -     1     -   0.36     -  
Long-term borrowings   37,376     37,393     266     271   2.85     2.90  
  Total interest-bearing liabilities   899,009     913,318     1,429     1,654   0.64     0.73  
                                   
Noninterest bearing demand deposits   223,137     216,600                        
Other liabilities   5,605     6,423                        
Shareholders' equity   171,784     166,150                        
    Total liabilities and shareholders' equity $ 1,299,535   $ 1,302,491                        
                                   
Interest rate spread                         3.53 %   4.00 %
Net interest margin                         3.68 %   4.16 %
                                   
Net interest income (taxable equivalent basis)               10,885     12,260            
Less: Taxable equivalent adjustment               534     567            
Net interest income             $ 10,351   $ 11,693            
                                   
                                   
                                   
Net Interest Income Analysis  
For the Six Months Ended June 30, 2014 and 2013  
(in thousands, except rates)  
   
          Interest            
  Average Balance   Income/Expense   Yield/Rate  
                           
  2014   2013   2014   2013   2014     2013  
Loans:                                  
  Commercial $ 120,460   $ 128,022   $ 2,757   $ 3,195   4.62 %   5.03 %
  Real estate   667,168     659,254     16,621     19,410   4.98     5.89  
  Consumer   4,982     6,100     176     212   7.12     7.01  
    Total loans   792,610     793,376     19,554     22,817   4.94     5.76  
                                   
Securities:                                  
  Federal agencies & GSEs   73,850     49,698     405     242   1.10     0.97  
  Mortgage-backed & CMOs   64,482     78,208     771     718   2.39     1.84  
  State and municipal   192,174     190,303     3,765     3,859   3.92     4.06  
  Other   14,940     12,612     248     190   3.32     3.01  
    Total securities   345,446     330,821     5,189     5,009   3.00     3.03  
                                   
Deposits in other banks   46,116     50,299     68     68   0.30     0.27  
                                   
  Total interest-earning assets   1,184,172     1,174,496     24,811     27,894   4.19     4.75  
                                   
Non-earning assets   116,906     124,892                        
                                   
    Total assets $ 1,301,078   $ 1,299,388                        
                                   
Deposits:                                  
  Demand $ 176,889   $ 159,351     41     60   0.05     0.08  
  Money market   182,109     170,940     125     171   0.14     0.20  
  Savings   88,199     83,589     25     37   0.06     0.09  
  Time   378,061     412,467     2,199     2,537   1.17     1.24  
    Total deposits   825,258     826,347     2,390     2,805   0.58     0.68  
                                   
Customer repurchase agreements   39,267     48,679     3     35   0.02     0.14  
Other short-term borrowings   287     -     1     -   0.36     -  
Long-term borrowings   37,374     37,396     530     541   2.84     2.89  
  Total interest-bearing liabilities   902,186     912,422     2,924     3,381   0.65     0.75  
                                   
Noninterest bearing demand deposits   222,266     215,463                        
Other liabilities   5,706     6,164                        
Shareholders' equity   170,920     165,339                        
    Total liabilities and shareholders' equity $ 1,301,078   $ 1,299,388                        
                                   
Interest rate spread                         3.54 %   4.00 %
Net interest margin                         3.70 %   4.18 %
                                   
Net interest income (taxable equivalent basis)               21,887     24,513            
Less: Taxable equivalent adjustment               1,077     1,138            
Net interest income             $ 20,810   $ 23,375