DANVILLE, VA--(Marketwire - Oct 26, 2011) - American National Bankshares Inc. (
- First quarter post-merger with MidCarolina of combined operation
- Q3 net income of $4.1 million and diluted EPS of $0.52 per share
- Net interest margin of 4.41%
- Average shareholders' equity of $149 million represents 11.40% of average assets
American National Bankshares Inc. (
Net income for the first nine months of 2011 was $6,868,000, compared to $6,427,000 for the comparable period of 2010. Basic and diluted earnings per share were $1.02 for the 2011 period, compared to $1.05 for the 2010 period.
Earnings for the quarter and nine months in 2011 were favorably impacted by the July 1, 2011, merger between American National and MidCarolina Financial Corporation ("MidCarolina"). Unless otherwise noted, most of the material changes between periods are related to the merger.
Financial Performance and Overview
Charles H. Majors, President and Chief Executive Officer, stated, "July 1, 2011, was the first day of our third quarter and a monumental day in the history of American National. We consummated the merger with MidCarolina and overnight grew our community bank from $800 million to $1.3 billion in assets. In that same moment we added significantly to the depth and breadth of our market footprint, our pool of talented bankers and staff, and our ability to serve customers.
"Building and growing a community bank for the 21st century is not an easy or simple mission, but we start from a base of over a century of safe, sound and prudent banking in our home Virginia market. We are delighted to grow that base with our new partners in North Carolina and eagerly anticipate the myriad of business opportunities they will bring the combined bank over the coming years.
"We are pleased with earnings for the first quarter of the merged bank. However, the accounting rules that govern business combinations are complex and esoteric. The short version is that they require the assets and liabilities of the acquired company, in our case MidCarolina, to be valued at 'fair value'. Most of the assets and liabilities of a community bank are financial in nature and the fair value process, in today's economic environment, can result in significant fair value adjustments that are effectively purchase discounts.
"Much of this fair value discount will be added to our earnings over the next few years. The first indication of this is our earnings, under generally accepting accounting principles ('GAAP'), for the third quarter were $4,078,000, compared to $2,228,000 for the same quarter in 2010, an 83% increase.
"If those earnings are adjusted to remove the impact of the merger (the fair value impact and the merger related costs), our third quarter earnings would have been $3,326,000 compared to $2,228,000 for the same quarter of 2010, a 49% increase. The accountants would call this a 'non-GAAP' measure.
"This fair value accounting impact to income is front end loaded and will reduce rapidly in size during the next several years over the life of these assets, which are mostly loans. However, the merger is immediately accretive to earnings, even without any benefit from fair value accounting.
Majors concluded, "This was a remarkable quarter for American National. But, as we hope everyone understands, we are building and growing a community bank not just for the next few quarters, but for the new century, and we are optimistic that America National's best years are ahead of us."
Capital
American National's capital ratios remain strong and well over all regulatory requirements. For the quarter ended September 30, 2011, average shareholders' equity was 11.40% of average assets and the ratio of average tangible equity to average tangible assets was 8.29%.
Book value per common share was $19.40 at September 30, 2011, compared to $18.10 for the same date in 2010.
Tangible book value per common share was $13.65 at September 30, 2011, compared to $14.20 for the same date in 2010.
Credit Quality Measurements
Nonperforming assets ($13.5 million of non-accrual loans and $5.9 million of foreclosed real estate) represented 1.48% of total assets at September 30, 2011, compared to 0.96% at September 30, 2010.
Annualized net charge offs to average loans were nine basis points (0.09%) for the September 2011 quarter, compared to two basis points (0.02%) for the same quarter in 2010.
Net Interest Income
Net interest income before provision for loan losses increased to $12,343,000 in the third quarter of 2011 from $6,759,000 in the third quarter of 2010, an improvement of $5,584,000 or 82.6%.
For the third quarter, American National's net interest margin increased 67 basis points (0.67%) to 4.41% compared to the same quarter in 2010.
For the nine month period, the net interest margin increased 16 basis points (0.16%) to 3.98% compared to the same period in 2010.
Noninterest Income
Noninterest income totaled $2,698,000 in the third quarter of 2011, compared with $2,241,000 in the third quarter of 2010, an increase of $457,000 or 20.4%. Approximately 60% of this gain was attributable to increases in trust income and a gain on the sale of real estate in Danville. The remainder of the increase was related to the merger.
Noninterest Expense
Noninterest expense totaled $8,564,000 in the third quarter of 2011, compared to $5,531,000 in the third quarter of 2010, an increase of $3,033,000 or 54.8%. The third quarter of 2011 was negatively impacted by $390,000 in merger related expenses.
About American National
American National Bankshares Inc. is a multi-state bank holding company with total assets of approximately $1.3 billion following the July 1, 2011, completion of the MidCarolina merger. Headquartered in Danville, Virginia, American National is the parent company of American National Bank and Trust Company. American National Bank is a community bank serving southern and central Virginia and north central North Carolina with 26 banking offices. The banking offices in Alamance and Guilford counties in North Carolina operate as MidCarolina Bank, a division of American National Bank. American National Bank and Trust Company also manages an additional $490 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 | ||||||||
| September 30 | ||||||||
| ASSETS | 2011 | 2010 | ||||||
| Cash and due from banks | $ | 23,450 | $ | 10,860 | ||||
| Interest-bearing deposits in other banks | 30,086 | 16,338 | ||||||
| Securities available for sale, at fair value | 311,517 | 209,434 | ||||||
| Securities held to maturity | 2,383 | 4,501 | ||||||
| Total securities | 313,900 | 213,935 | ||||||
| Restricted stock, at cost | 6,404 | 4,161 | ||||||
| Loans held for sale | 3,359 | 3,952 | ||||||
| Loans | 817,858 | 519,421 | ||||||
| Less allowance for loan losses | (9,086 | ) | (8,542 | ) | ||||
| Net Loans | 808,772 | 510,879 | ||||||
| Premises and equipment, net | 26,263 | 20,142 | ||||||
| Other real estate owned, net | 5,920 | 3,987 | ||||||
| Goodwill | 37,709 | 22,468 | ||||||
| Core deposit intangibles, net | 7,142 | 1,415 | ||||||
| Accrued interest receivable and other assets | 42,134 | 16,080 | ||||||
| Total assets | $ | 1,305,139 | $ | 824,217 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Liabilities: | ||||||||
| Demand deposits -- noninterest-bearing | $ | 170,398 | $ | 101,578 | ||||
| Demand deposits -- interest-bearing | 188,480 | 91,301 | ||||||
| Money market deposits | 199,172 | 53,388 | ||||||
| Savings deposits | 72,428 | 62,841 | ||||||
| Time deposits | 433,999 | 316,522 | ||||||
| Total deposits | 1,064,477 | 625,630 | ||||||
| Short-term borrowings: | ||||||||
| Customer repurchase agreements | 43,758 | 54,285 | ||||||
| Long-term borrowings | 10,238 | 8,525 | ||||||
| Trust preferred capital notes | 27,190 | 20,619 | ||||||
| Accrued interest payable and other liabilities | 8,115 | 4,290 | ||||||
| Total liabilities | 1,153,778 | 713,349 | ||||||
| Shareholders' equity: | ||||||||
| Preferred stock, $5 par, 2,000,000 shares authorized, 1,000,000 shares outstanding at September 30, 2011 and none outstanding at September 30, 2010 | 5,000 |
- |
||||||
| Common stock, $1 par, 20,000,000 shares authorized, 7,802,976 shares outstanding at September 30, 2011 and 6,126,374 shares outstanding at September 30, 2010 | 7,803 |
6,126 |
||||||
| Capital in excess of par value | 56,094 | 27,200 | ||||||
| Retained earnings | 77,092 | 74,409 | ||||||
| Accumulated other comprehensive income, net | 5,372 | 3,133 | ||||||
| Total shareholders' equity | 151,361 | 110,868 | ||||||
| Total liabilities and shareholders' equity | $ | 1,305,139 | $ | 824,217 | ||||
| American National Bankshares Inc. and Subsidiaries | |||||||||||||
| Consolidated Statements of Income | |||||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||||
| Unaudited | |||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||
| September 30 | September 30 | ||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||
| Interest and Dividend Income: | |||||||||||||
| Interest and fees on loans | $ | 12,510 | $ | 6,994 | $ | 25,807 | $ | 21,220 | |||||
| Interest and dividends on securities: | |||||||||||||
| Taxable | 1,192 | 1,253 | 3,446 | 3,844 | |||||||||
| Tax-exempt | 1,014 | 621 | 2,557 | 1,641 | |||||||||
| Dividends | 35 | 24 | 88 | 71 | |||||||||
| Other interest income | 28 | 90 | 112 | 268 | |||||||||
| Total interest and dividend income | 14,779 | 8,982 | 32,010 | 27,044 | |||||||||
| Interest Expense: | |||||||||||||
| Interest on deposits | 2,079 | 1,722 | 5,246 | 5,004 | |||||||||
| Interest on short-term borrowings | 82 | 93 | 244 | 297 | |||||||||
| Interest on long-term borrowings | 86 | 65 | 144 | 192 | |||||||||
| Interest on trust preferred capital notes | 189 | 343 | 829 | 1,030 | |||||||||
| Total interest expense | 2,436 | 2,223 | 6,463 | 6,523 | |||||||||
| Net Interest Income | 12,343 | 6,759 | 25,547 | 20,521 | |||||||||
| Provision for loan losses | 525 | 435 | 1,198 | 1,005 | |||||||||
| Net Interest Income After Provision for Loan Losses | 11,818 |
6,324 |
24,349 |
19,516 |
|||||||||
| Noninterest Income: | |||||||||||||
| Trust fees | 921 | 842 | 2,727 | 2,455 | |||||||||
| Service charges on deposit accounts | 575 | 478 | 1,396 | 1,440 | |||||||||
| Other fees and commissions | 429 | 290 | 1,083 | 856 | |||||||||
| Mortgage banking income | 374 | 428 | 792 | 1,017 | |||||||||
| Securities gains (losses), net | - | 67 | (18 | ) | 42 | ||||||||
| Other | 399 | 136 | 677 | 398 | |||||||||
| Total noninterest income | 2,698 | 2,241 | 6,657 | 6,208 | |||||||||
| Noninterest Expense: | |||||||||||||
| Salaries | 3,676 | 2,596 | 8,707 | 7,590 | |||||||||
| Employee benefits | 731 | 564 | 1,896 | 1,837 | |||||||||
| Occupancy and equipment | 916 | 732 | 2,311 | 2,209 | |||||||||
| FDIC assessment | 94 | 203 | 496 | 597 | |||||||||
| Bank franchise tax | 206 | 168 | 557 | 503 | |||||||||
| Core deposit intangible amortization | 546 | 94 | 735 | 283 | |||||||||
| Foreclosed real estate, net | (261 | ) | (5 | ) | 174 | 279 | |||||||
| Merger related expenses | 390 | - | 1,534 | - | |||||||||
| Other | 2,266 | 1,179 | 4,961 | 3,607 | |||||||||
| Total noninterest expense | 8,564 | 5,531 | 21,371 | 16,905 | |||||||||
| Income Before Income Taxes | 5,952 | 3,034 | 9,635 | 8,819 | |||||||||
| Income Taxes | 1,823 | 806 | 2,716 | 2,392 | |||||||||
| Net Income | 4,129 | 2,228 | 6,919 | 6,427 | |||||||||
| Dividends on preferred stock | 51 | - | 51 | - | |||||||||
| Net income available to common shareholders | $ | 4,078 | $ | 2,228 | $ | 6,868 | $ | 6,427 | |||||
| Net Income Per Common Share: | |||||||||||||
| Basic | $ | 0.52 | $ | 0.36 | $ | 1.02 | $ | 1.05 | |||||
| Diluted | $ | 0.52 | $ | 0.36 | $ | 1.02 | $ | 1.05 | |||||
| Average Common Shares Outstanding: | |||||||||||||
| Basic | 7,800,614 | 6,125,359 | 6,705,607 | 6,122,876 | |||||||||
| Diluted | 7,806,668 | 6,131,129 | 6,712,960 | 6,128,481 | |||||||||
| American National Bankshares Inc. and Subsidiaries | |||||||||||||||||
| Financial Highlights | |||||||||||||||||
| (In thousands, except share, ratio and nonfinancial data, unaudited) | 3rd Qtr | 2nd Qtr | 3rd Qtr | YTD | YTD | ||||||||||||
| 2011 | 2011 | 2010 | 2011 | 2010 | |||||||||||||
| EARNINGS | |||||||||||||||||
| Interest income | $ | 14,779 | $ | 8,570 | $ | 8,982 | $ | 32,010 | $ | 27,044 | |||||||
| Interest expense | 2,436 | 1,971 | 2,223 | 6,463 | 6,523 | ||||||||||||
| Net interest income | 12,343 | 6,599 | 6,759 | 25,547 | 20,521 | ||||||||||||
| Provision for loan losses | 525 | 336 | 435 | 1,198 | 1,005 | ||||||||||||
| Noninterest income | 2,698 | 1,988 | 2,241 | 6,657 | 6,208 | ||||||||||||
| Noninterest expense | 8,564 | 7,028 | 5,531 | 21,371 | 16,905 | ||||||||||||
| Income taxes | 1,823 | 211 | 806 | 2,716 | 2,392 | ||||||||||||
| Net income | 4,129 | 1,012 | 2,228 | 6,919 | 6,427 | ||||||||||||
| PER COMMON SHARE | |||||||||||||||||
| Earnings per share - basic | $ | 0.52 | $ | 0.16 | $ | 0.36 | $ | 1.02 | $ | 1.05 | |||||||
| Earnings per share - diluted | 0.52 | 0.16 | 0.36 | 1.02 | 1.05 | ||||||||||||
| Cash dividends declared | 0.23 | 0.23 | 0.23 | 0.69 | 0.69 | ||||||||||||
| Book value per share | 19.40 | 18.06 | 18.10 | 19.40 | 18.10 | ||||||||||||
| Book value per share - tangible (a) | 13.65 | 14.23 | 14.20 | 13.65 | 14.20 | ||||||||||||
| Closing market price | 18.00 | 18.39 | 21.94 | 18.00 | 21.94 | ||||||||||||
| FINANCIAL RATIOS | |||||||||||||||||
| Return on average assets | 1.26 | % | 0.48 | % | 1.07 | % | 0.92 | % | 1.04 | % | |||||||
| Return on average equity | 11.08 | 3.65 | 8.11 | 7.49 | 7.90 | ||||||||||||
| Return on average tangible equity (b) | 17.24 | 5.00 | 10.69 | 10.73 | 10.47 | ||||||||||||
| Average equity to average assets | 11.40 | 13.06 | 13.14 | 12.33 | 13.20 | ||||||||||||
| Net interest margin, taxable equivalent | 4.41 | 3.65 | 3.74 | 3.98 | 3.82 | ||||||||||||
| Efficiency ratio | 57.03 | 73.00 | 59.54 | 63.24 | 60.10 | ||||||||||||
| Effective tax rate | 30.63 | 17.25 | 26.57 | 28.19 | 27.12 | ||||||||||||
| PERIOD-END BALANCES | |||||||||||||||||
| Securities | $ | 320,304 | $ | 237,440 | $ | 218,096 | $ | 320,304 | $ | 218,096 | |||||||
| Loans held for sale | 3,359 | 2,087 | 3,952 | 3,359 | 3,952 | ||||||||||||
| Loans, net of unearned income | 817,858 | 514,081 | 519,421 | 817,858 | 519,421 | ||||||||||||
| Goodwill and other intangibles | 44,851 | 23,600 | 23,883 | 44,851 | 23,883 | ||||||||||||
| Assets | 1,305,139 | 846,016 | 824,217 | 1,305,139 | 824,217 | ||||||||||||
| Assets - tangible (a) | 1,260,288 | 822,416 | 800,334 | 1,260,288 | 800,334 | ||||||||||||
| Deposits | 1,064,477 | 658,950 | 625,630 | 1,064,477 | 625,630 | ||||||||||||
| Customer repurchase agreements | 43,758 | 50,329 | 54,285 | 43,758 | 54,285 | ||||||||||||
| Other short-term borrowings | - | - | - | - | - | ||||||||||||
| Long-term borrowings | 37,428 | 21,032 | 29,144 | 37,428 | 29,144 | ||||||||||||
| Shareholders' equity | 151,361 | 111,190 | 110,868 | 151,361 | 110,868 | ||||||||||||
| Shareholders' equity - tangible (a) | 106,510 | 87,590 | 86,985 | 106,510 | 86,985 | ||||||||||||
| AVERAGE BALANCES | |||||||||||||||||
| Securities | $ | 296,095 | $ | 235,725 | $ | 214,532 | $ | 253,059 | $ | 199,282 | |||||||
| Loans held for sale | 2,641 | 1,984 | 4,991 | 2,048 | 3,664 | ||||||||||||
| Loans, net of unearned income | 827,720 | 515,161 | 519,101 | 619,812 | 519,805 | ||||||||||||
| Interest-earning assets | 1,171,982 | 773,750 | 762,742 | 904,023 | 749,505 | ||||||||||||
| Goodwill and other intangibles | 44,437 | 23,651 | 23,935 | 30,688 | 24,029 | ||||||||||||
| Assets | 1,306,796 | 848,783 | 836,033 | 999,219 | 821,861 | ||||||||||||
| Assets - tangible (a) | 1,262,359 | 825,132 | 812,098 | 968,531 | 797,832 | ||||||||||||
| Interest-bearing deposits | 896,873 | 549,397 | 530,191 | 664,091 | 517,543 | ||||||||||||
| Deposits | 1,067,491 | 666,325 | 633,692 | 797,099 | 618,508 | ||||||||||||
| Customer repurchase agreements | 45,356 | 47,220 | 59,126 | 45,452 | 61,698 | ||||||||||||
| Other short-term borrowings | 2 | - | 92 | 45 | 31 | ||||||||||||
| Long-term borrowings | 37,439 | 21,062 | 29,174 | 28,820 | 29,211 | ||||||||||||
| Shareholders' equity | 149,033 | 110,859 | 109,885 | 123,184 | 108,512 | ||||||||||||
| Shareholders' equity - tangible (a) | 104,596 | 87,208 | 85,950 | 92,496 | 84,483 | ||||||||||||
| CAPITAL | |||||||||||||||||
| Average shares outstanding - basic | 7,800,614 | 6,154,396 | 6,125,359 | 6,705,607 | 6,122,876 | ||||||||||||
| Average shares outstanding - diluted | 7,806,668 | 6,161,265 | 6,131,129 | 6,712,960 | 6,128,481 | ||||||||||||
| Shares repurchased | - | - | - | - | - | ||||||||||||
| Average price of shares repurchased | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||
| Beginning balance | $ | 8,744 | $ | 8,257 | $ | 8,135 | $ | 8,420 | $ | 8,166 | |||||||
| Provision for loan losses | 525 | 336 | 435 | 1,198 | 1,005 | ||||||||||||
| Charge-offs | (252 | ) | (134 | ) | (137 | ) | (957 | ) | (869 | ) | |||||||
| Recoveries | 69 | 285 | 109 | 425 | 240 | ||||||||||||
| Ending balance | $ | 9,086 | $ | 8,744 | $ | 8,542 | $ | 9,086 | $ | 8,542 | |||||||
| LOANS | |||||||||||||||||
| Construction and land development | $ | 57,111 | $ | 35,756 | $ | 42,602 | $ | 57,111 | $ | 42,602 | |||||||
| Commercial real estate | 346,715 | 208,685 | 206,142 | 346,715 | 206,142 | ||||||||||||
| Residential real estate | 174,493 | 114,510 | 118,554 | 174,493 | 118,554 | ||||||||||||
| Home equity | 99,727 | 61,218 | 64,847 | 99,727 | 64,847 | ||||||||||||
| Commercial and industrial | 131,704 | 87,449 | 80,818 | 131,704 | 80,818 | ||||||||||||
| Consumer | 8,108 | 6,463 | 6,458 | 8,108 | 6,458 | ||||||||||||
| Total | $ | 817,858 | $ | 514,081 | $ | 519,421 | $ | 817,858 | $ | 519,421 | |||||||
| NONPERFORMING ASSETS AT PERIOD-END | |||||||||||||||||
| Nonperforming loans: | |||||||||||||||||
| 90 days past due | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||
| Nonaccrual | 13,455 | 3,464 | 3,910 | 13,455 | 3,910 | ||||||||||||
| Foreclosed real estate | 5,920 | 3,513 | 3,987 | 5,920 | 3,987 | ||||||||||||
| Nonperforming assets | $ | 19,375 | $ | 6,977 | $ | 7,897 | $ | 19,375 | $ | 7,897 | |||||||
| ASSET QUALITY RATIOS | |||||||||||||||||
| Annualized net chargeoffs to average loans | 0.09 | % | (0.12 | )% | 0.02 | % | 0.11 | % | 0.16 | % | |||||||
| Nonperforming assets to total assets | 1.48 | 0.82 | 0.96 | 1.48 | 0.96 | ||||||||||||
| Nonperforming loans to total loans | 1.65 | 0.67 | 0.75 | 1.65 | 0.75 | ||||||||||||
| Allowance for loan losses to total loans | 1.11 | 1.70 | 1.64 | 1.11 | 1.64 | ||||||||||||
| Allowance for loan losses to | |||||||||||||||||
| nonperforming loans | 67.53 | 252.42 | 218.47 | 67.53 | 218.47 | ||||||||||||
| OTHER DATA | |||||||||||||||||
| Fiduciary assets at period-end (c) | $ | 340,941 | $ | 368,579 | $ | 370,016 | $ | 340,941 | $ | 370,016 | |||||||
| Retail brokerage assets at period-end (c) | $ | 149,284 | $ | 49,636 | $ | 47,507 | $ | 149,284 | $ | 47,507 | |||||||
| Number full-time equivalent employees (d) | 306 | 244 | 242 | 306 | 242 | ||||||||||||
| Number of full service offices | 25 | 18 | 18 | 25 | 18 | ||||||||||||
| Number of loan production offices | 1 | 1 | 1 | 1 | 1 | ||||||||||||
| Number of ATM's | 31 | 26 | 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 September 30, 2011 and 2010 | |||||||||||||||||||
| (in thousands, except rates) | |||||||||||||||||||
| Unaudited | |||||||||||||||||||
| Interest | |||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | |||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | $ | 136,204 | $ | 76,618 | $ | 1,603 | $ | 934 | 4.67 | % | 4.84 | % | |||||||
| Real estate | 685,628 | 441,069 | 10,778 | 5,968 | 6.29 | 5.41 | |||||||||||||
| Consumer | 8,529 | 6,405 | 163 | 126 | 7.58 | 7.80 | |||||||||||||
| Total loans | 830,361 | 524,092 | 12,544 | 7,028 | 6.04 | 5.36 | |||||||||||||
| Securities: | |||||||||||||||||||
| Federal agencies | 32,448 | 60,079 | 186 | 459 | 2.29 | 3.06 | |||||||||||||
| Mortgage-backed & CMO's | 87,785 | 53,839 | 615 | 493 | 2.80 | 3.66 | |||||||||||||
| State and municipal | 168,134 | 94,419 | 1,896 | 1,217 | 4.51 | 5.16 | |||||||||||||
| Other | 7,728 | 6,195 | 78 | 55 | 4.04 | 3.55 | |||||||||||||
| Total securities | 296,095 | 214,532 | 2,775 | 2,224 | 3.75 | 4.15 | |||||||||||||
| Deposits in other banks | 45,526 | 24,118 | 28 | 90 | 0.24 | 1.48 | |||||||||||||
| Total interest-earning assets | 1,171,982 | 762,742 | 15,347 | 9,342 | 5.23 | 4.89 | |||||||||||||
| Non-earning assets | 134,814 | 73,291 | |||||||||||||||||
| Total assets | $ | 1,306,796 | $ | 836,033 | |||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 171,744 | $ | 90,731 | 132 | 16 | 0.30 | 0.07 | |||||||||||
| Money market | 208,962 | 70,011 | 232 | 94 | 0.44 | 0.53 | |||||||||||||
| Savings | 72,088 | 63,562 | 26 | 22 | 0.14 | 0.14 | |||||||||||||
| Time | 444,079 | 305,887 | 1,689 | 1,590 | 1.51 | 2.06 | |||||||||||||
| Total deposits | 896,873 | 530,191 | 2,079 | 1,722 | 0.92 | 1.29 | |||||||||||||
| Customer repurchase agreements | 45,356 | 59,126 | 82 | 93 | 0.72 | 0.62 | |||||||||||||
| Other short-term borrowings | 2 | 92 | 0 | 0 | 0.75 | 0.43 | |||||||||||||
| Long-term borrowings | 37,439 | 29,174 | 275 | 408 | 2.94 | 5.59 | |||||||||||||
| Total interest-bearing liabilities |
979,670 |
618,583 |
2,436 |
2,223 |
0.99 |
1.43 |
|||||||||||||
| Noninterest bearing demand deposits |
170,618 |
103,501 |
|||||||||||||||||
| Other liabilities | 7,475 | 4,064 | |||||||||||||||||
| Shareholders' equity | 149,033 | 109,885 | |||||||||||||||||
| Total liabilities and shareholders' equity |
$ | 1,306,796 |
$ | 836,033 |
|||||||||||||||
| Interest rate spread | 4.24 | % | 3.46 | % | |||||||||||||||
| Net interest margin | 4.41 | % | 3.74 | % | |||||||||||||||
| Net interest income (taxable equivalent basis) | 12,911 | 7,119 | |||||||||||||||||
| Less: Taxable equivalent adjustment | 568 | 360 | |||||||||||||||||
| Net interest income | $ | 12,343 | $ | 6,759 | |||||||||||||||
| Net Interest Income Analysis | |||||||||||||||||||
| For the Nine Months Ended September 30, 2011 and 2010 | |||||||||||||||||||
| (in thousands, except rates) | |||||||||||||||||||
| Unaudited | |||||||||||||||||||
| Interest | |||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | |||||||||||||||||
| 2011 | 2010 | 2011 | 2010 | 2011 | 2010 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | $ | 98,121 | $ | 78,180 | $ | 3,392 | $ | 2,826 | 4.62 | % | 4.83 | % | |||||||
| Real estate | 516,165 | 438,736 | 22,093 | 18,096 | 5.71 | 5.50 | |||||||||||||
| Consumer | 7,574 | 6,553 | 419 | 397 | 7.40 | 8.10 | |||||||||||||
| Total loans | 621,860 | 523,469 | 25,904 | 21,319 | 5.56 | 5.43 | |||||||||||||
| Securities: | |||||||||||||||||||
| Federal agencies | 37,197 | 63,929 | 765 | 1,535 | 2.74 | 3.20 | |||||||||||||
| Mortgage-backed & CMO's | 67,843 | 47,795 | 1,571 | 1,473 | 3.09 | 4.11 | |||||||||||||
| State and municipal | 141,481 | 80,625 | 4,889 | 3,223 | 4.61 | 5.33 | |||||||||||||
| Other | 6,538 | 6,933 | 193 | 185 | 3.94 | 3.56 | |||||||||||||
| Total securities | 253,059 | 199,282 | 7,418 | 6,416 | 3.91 | 4.29 | |||||||||||||
| Deposits in other banks | 29,104 | 26,754 | 112 | 268 | 0.51 | 1.34 | |||||||||||||
| Total interest-earning assets | 904,023 | 749,505 | 33,434 | 28,003 | 4.93 | 4.98 | |||||||||||||
| Non-earning assets | 95,196 | 72,356 | |||||||||||||||||
| Total assets | $ | 999,219 | $ | 821,861 | |||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 122,497 | $ | 94,607 | 167 | 58 | 0.18 | 0.08 | |||||||||||
| Money market | 111,801 | 77,691 | 382 | 285 | 0.46 | 0.49 | |||||||||||||
| Savings | 66,138 | 63,644 | 69 | 66 | 0.14 | 0.14 | |||||||||||||
| Time | 363,655 | 281,601 | 4,628 | 4,595 | 1.70 | 2.18 | |||||||||||||
| Total deposits | 664,091 | 517,543 | 5,246 | 5,004 | 1.06 | 1.29 | |||||||||||||
| Customer repurchase agreements | 45,452 | 61,698 | 244 | 297 | 0.72 | 0.64 | |||||||||||||
| Other short-term borrowings | 45 | 31 | 0 | 0 | 0.47 | 0.43 | |||||||||||||
| Long-term borrowings | 28,820 | 29,211 | 973 | 1,222 | 4.50 | 5.58 | |||||||||||||
| Total interest-bearing liabilities | 738,408 |
608,483 |
6,463 |
6,523 |
1.17 |
1.43 |
|||||||||||||
| Noninterest bearing demand deposits | 133,008 |
100,965 |
|||||||||||||||||
| Other liabilities | 4,619 | 3,901 | |||||||||||||||||
| Shareholders' equity | 123,184 | 108,512 | |||||||||||||||||
| Total liabilities and shareholders' equity | $999,219 |
$821,861 |
|||||||||||||||||
| Interest rate spread | 3.76 | % | 3.55 | % | |||||||||||||||
| Net interest margin | 3.98 | % | 3.82 | % | |||||||||||||||
| Net interest income (taxable equivalent basis) | 26,971 | 21,480 | |||||||||||||||||
| Less: Taxable equivalent adjustment | 1,424 | 959 | |||||||||||||||||
| Net interest income | $ | 25,547 | $ | 20,521 | |||||||||||||||