DANVILLE, VA--(Marketwire - Oct 18, 2012) - American National Bankshares Inc. (
- Q3 net income of $3.6 million and diluted EPS of $0.46
- Net interest margin of 4.14% for Q3 2012
- Nonperforming assets 1.08% of total assets
- Average shareholders' equity of $160 million is 12.32% of average assets
American National Bankshares Inc. (
Net income available to common shareholders for the nine months of 2012 was $12,088,000 compared to $6,868,000 for the comparable period of 2011. Basic and diluted earnings per share were $1.54 for the 2012 period compared to $1.02 for the 2011 period.
Earnings for the 2012 quarter and nine month period were favorably impacted by the July 2011 merger between American National and MidCarolina Financial Corporation ("MidCarolina"). Earnings for the comparable 2011 quarter were also favorably impacted by the merger; however the nine month period was negatively impacted by costs associated with the merger.
Financial Performance and Overview
Charles H. Majors, Chairman and Chief Executive Officer, reported, "As we conclude the first year after the merger with MidCarolina and begin our second year, we are focused on the future of community banking and American National. We believe that our bank has all the prerequisites to survive and prosper in the 21st century. Specifically, those requirements are strong capital, high asset quality, state-of-the-art technology and relationship banking.
"At September 30, 2012, American National had $798 million in loans compared to $818 million at September 30, 2011. Over the past year total loans are down $20 million or 2.5%. This is the result of a deliberate strategy to reduce the problem and criticized loan balances brought over from the merger. However, we are pleased to report that, on a standalone basis for the same period, our Virginia market is up approximately $18 million.
"At September 30, 2012, American National had $1.052 billion in deposits compared to $1.064 billion at September 30, 2011. Over the past year total deposits are down $12 million or 1.1%. This is primarily the result of a planned strategy to reduce wholesale funding since the merger. One of our strategic goals is growing deposit market share through increases in core deposits.
"Our earnings for the third quarter have been good, over $3.6 million. This is down from $4.1 million in the same quarter of 2011. Most of this change has been driven by declining yields in earning assets. Loans earned 5.65% in the 2012 quarter, compared to 6.04% in the 2011 quarter. Investment yields declined also; we earned 3.27% in the 2012 quarter, compared to 3.75% in the 2011 quarter. Our net interest margin was 4.14% for the 2012 quarter compared to 4.41% for the 2011 quarter.
"A large portion of our earnings were driven by the merger with MidCarolina. Approximately $1,281,000 of pretax income for the third quarter of 2012 was directly related to various ongoing categorical fair value adjustments, the vast majority of which results from the loan portfolio purchase discount.
"As we expected, the favorable earnings impact of the merger and the related fair value accounting is decreasing rapidly quarter to quarter. This is normal in the context of current rules for merger accounting."
Majors concluded, "As we move forward, we are continuing to seek high quality organic growth in all our markets and, at the same time, preparing American National for any strategic acquisition opportunities that may arise in the next few years. The current economic and regulatory environment, notably implementation of Dodd-Frank and the potential implementation of Basel III, is adding significantly to the challenges faced by smaller community banks. We expect that these macro-level forces will be the catalyst for a wave of merger and acquisition opportunities in our industry over the next few years. Therefore, we are building and improving an infrastructure that will allow us to grow and prosper in any regulatory and economic environment."
Capital
American National's capital ratios remain strong and exceed all regulatory requirements.
For the quarter ended September 30, 2012, average shareholders' equity was 12.32% of average assets.
Book value per common share was $20.66 at September 30, 2012, compared to $19.40 at September 30, 2011.
Tangible book value per common share was $15.03 at September 30, 2012, compared to $13.65 at September 30, 2011.
Credit Quality Measurements
Non-performing assets ($7.8 million of non-performing loans and $6.3 million of foreclosed real estate) represented 1.08% of total assets at September 30, 2012, compared to 1.48% at September 30, 2011.
Annualized net charge offs to average loans were 22 basis points (0.22%) for the 2012 third quarter, compared to nine basis points (0.09%) for the same quarter in 2011.
The allowance for loan losses as a percentage of total loans was 1.50% at September 30, 2012 compared to 1.11% at September 30, 2011.
Net Interest Income
Net interest income before provision for loan losses decreased to $11,500,000 in the third quarter of 2012 from $12,343,000 in third quarter of 2011, a decrease of $843,000 or 6.8%.
For the 2012 quarter, the net interest margin was 4.14% compared to 4.41% for the same quarter in 2011, a decrease of 27 basis points (0.27%). This decline was mostly driven by falling yields on earnings assets and only partially mitigated by reduced costs of interest bearing liabilities.
Noninterest Income
Noninterest income totaled $2,690,000 in the third quarter of 2012, compared with $2,698,000 in the third quarter of 2011, a nominal decrease of $8,000 or 0.3%. Mortgage banking income increased to $615,000, up from $374,000 for the 2011 quarter, a 64.4% increase. This income increase was offset by declines in service charges and overdraft fees.
Noninterest Expense
Noninterest expense totaled $8,880,000 in the third quarter of 2012, compared to $8,564,000 in the third quarter of 2011, an increase of $316,000 or 3.7%. Most of this change was related to personnel costs resulting from an increase in the number of full time equivalent employees, increased health insurance, and salary continuation agreements related to former MidCarolina employees.
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, Va., 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 $580 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 | 2012 | 2011 | ||||||||
| Cash and due from banks | $ | 25,740 | $ | 23,450 | ||||||
| Interest-bearing deposits in other banks | 41,900 | 30,086 | ||||||||
| Securities available for sale, at fair value | 327,994 | 311,517 | ||||||||
| Securities held to maturity | - | 2,383 | ||||||||
| Total securities | 327,994 | 313,900 | ||||||||
| Restricted stock, at cost | 5,284 | 6,404 | ||||||||
| Loans held for sale | 8,118 | 3,359 | ||||||||
| Loans | 797,818 | 817,858 | ||||||||
| Less allowance for loan losses | (11,998 | ) | (9,086 | ) | ||||||
| Net Loans | 785,820 | 808,772 | ||||||||
| Premises and equipment, net | 24,885 | 26,263 | ||||||||
| Other real estate owned, net | 6,259 | 5,920 | ||||||||
| Goodwill | 39,043 | 37,709 | ||||||||
| Core deposit intangibles, net | 5,081 | 7,142 | ||||||||
| Bank owned life insurance | 13,380 | 12,948 | ||||||||
| Accrued interest receivable and other assets | 22,203 | 29,186 | ||||||||
| Total assets | $ | 1,305,707 | $ | 1,305,139 | ||||||
| Liabilities | ||||||||||
| Demand deposits -- noninterest-bearing | $ | 215,012 | $ | 170,398 | ||||||
| Demand deposits -- interest-bearing | 152,706 | 188,480 | ||||||||
| Money market deposits | 164,266 | 199,172 | ||||||||
| Savings deposits | 78,665 | 72,428 | ||||||||
| Time deposits | 441,778 | 433,999 | ||||||||
| Total deposits | 1,052,427 | 1,064,477 | ||||||||
| Customer repurchase agreements | 45,761 | 43,758 | ||||||||
| Long-term borrowings | 10,111 | 10,238 | ||||||||
| Trust preferred capital notes | 27,292 | 27,190 | ||||||||
| Accrued interest payable and other liabilities | 8,071 | 8,115 | ||||||||
| Total liabilities | 1,143,662 | 1,153,778 | ||||||||
| Shareholders' equity | ||||||||||
| Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding at September 30, 2012 and 1,000,000 outstanding at September 30, 2011 | - |
5,000 |
||||||||
| Common stock, $1 par, 20,000,000 shares authorized, 7,843,221 shares outstanding at September 30, 2012 and 7,802,976 shares outstanding at September 30, 2011 | 7,843 |
7,803 |
||||||||
| Capital in excess of par value | 57,045 | 56,094 | ||||||||
| Retained earnings | 88,478 | 77,092 | ||||||||
| Accumulated other comprehensive income, net | 8,679 | 5,372 | ||||||||
| Total shareholders' equity | 162,045 | 151,361 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,305,707 | $ | 1,305,139 | ||||||
| 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 | |||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Interest and Dividend Income: | ||||||||||||||||||
| Interest and fees on loans | $ | 11,421 | $ | 12,510 | $ | 37,224 | $ | 25,807 | ||||||||||
| Interest and dividends on securities: | ||||||||||||||||||
| Taxable | 995 | 1,192 | 3,130 | 3,446 | ||||||||||||||
| Tax-exempt | 1,059 | 1,014 | 3,218 | 2,557 | ||||||||||||||
| Dividends | 52 | 35 | 155 | 88 | ||||||||||||||
| Other interest income | 19 | 28 | 47 | 112 | ||||||||||||||
| Total interest and dividend income | 13,546 | 14,779 | 43,774 | 32,010 | ||||||||||||||
| Interest Expense: | ||||||||||||||||||
| Interest on deposits | 1,725 | 2,079 | 5,291 | 5,246 | ||||||||||||||
| Interest on short-term borrowings | 33 | 82 | 127 | 244 | ||||||||||||||
| Interest on long-term borrowings | 84 | 86 | 252 | 144 | ||||||||||||||
| Interest on trust preferred capital notes | 204 | 189 | 616 | 829 | ||||||||||||||
| Total interest expense | 2,046 | 2,436 | 6,286 | 6,463 | ||||||||||||||
| Net Interest Income | 11,500 | 12,343 | 37,488 | 25,547 | ||||||||||||||
| Provision for loan losses | 333 | 525 | 1,799 | 1,198 | ||||||||||||||
| Net Interest Income After Provision for Loan Losses | 11,167 | 11,818 | 35,689 | 24,349 | ||||||||||||||
| Noninterest Income: | ||||||||||||||||||
| Trust fees | 926 | 921 | 2,774 | 2,727 | ||||||||||||||
| Service charges on deposit accounts | 414 | 575 | 1,315 | 1,396 | ||||||||||||||
| Other fees and commissions | 421 | 429 | 1,323 | 1,083 | ||||||||||||||
| Mortgage banking income | 615 | 374 | 1,665 | 792 | ||||||||||||||
| Securities gains (losses), net | - | - | 160 | (18 | ) | |||||||||||||
| Other | 314 | 399 | 1,487 | 677 | ||||||||||||||
| Total noninterest income | 2,690 | 2,698 | 8,724 | 6,657 | ||||||||||||||
| Noninterest Expense: | ||||||||||||||||||
| Salaries | 3,933 | 3,676 | 11,853 | 8,707 | ||||||||||||||
| Employee benefits | 780 | 731 | 2,657 | 1,896 | ||||||||||||||
| Occupancy and equipment | 929 | 916 | 2,942 | 2,311 | ||||||||||||||
| FDIC assessment | 84 | 94 | 530 | 496 | ||||||||||||||
| Bank franchise tax | 173 | 206 | 538 | 557 | ||||||||||||||
| Core deposit intangible amortization | 421 | 545 | 1,514 | 734 | ||||||||||||||
| Foreclosed real estate, net | 412 | (32 | ) | 430 | 490 | |||||||||||||
| Merger related expenses | (30 | ) | 390 | 19 | 1,534 | |||||||||||||
| Other | 2,178 | 2,038 | 7,157 | 4,646 | ||||||||||||||
| Total noninterest expense | 8,880 | 8,564 | 27,640 | 21,371 | ||||||||||||||
| Income Before Income Taxes | 4,977 | 5,952 | 16,773 | 9,635 | ||||||||||||||
| Income Taxes | 1,338 | 1,823 | 4,685 | 2,716 | ||||||||||||||
| Net Income | 3,639 | 4,129 | 12,088 | 6,919 | ||||||||||||||
| Dividends on preferred stock | - | 51 | - | 51 | ||||||||||||||
| Net income available to common shareholders | $ | 3,639 | $ | 4,078 | $ | 12,088 | $ | 6,868 | ||||||||||
| Net Income Per Common Share: | ||||||||||||||||||
| Basic | $ | 0.46 | $ | 0.52 | $ | 1.54 | $ | 1.02 | ||||||||||
| Diluted | $ | 0.46 | $ | 0.52 | $ | 1.54 | $ | 1.02 | ||||||||||
| Average Common Shares Outstanding: | ||||||||||||||||||
| Basic | 7,838,314 | 7,800,614 | 7,830,928 | 6,705,607 | ||||||||||||||
| Diluted | 7,855,537 | 7,806,668 | 7,846,659 | 6,712,960 | ||||||||||||||
| 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 | ||||||||||||||||||
| 2012 | 2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
| EARNINGS | ||||||||||||||||||||||
| Interest income | $ | 13,546 | $ | 14,886 | $ | 14,779 | $ | 43,774 | $ | 32,010 | ||||||||||||
| Interest expense | 2,046 | 2,070 | 2,436 | 6,286 | 6,463 | |||||||||||||||||
| Net interest income | 11,500 | 12,816 | 12,343 | 37,488 | 25,547 | |||||||||||||||||
| Provision for loan losses | 333 | 733 | 525 | 1,799 | 1,198 | |||||||||||||||||
| Noninterest income | 2,690 | 2,800 | 2,698 | 8,724 | 6,657 | |||||||||||||||||
| Noninterest expense | 8,880 | 8,833 | 8,564 | 27,640 | 21,371 | |||||||||||||||||
| Income taxes | 1,338 | 1,776 | 1,823 | 4,685 | 2,716 | |||||||||||||||||
| Net income | 3,639 | 4,274 | 4,129 | 12,088 | 6,919 | |||||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||||
| Earnings per share - basic | $ | 0.46 | $ | 0.55 | $ | 0.52 | $ | 1.54 | $ | 1.02 | ||||||||||||
| Earnings per share - diluted | 0.46 | 0.54 | 0.52 | 1.54 | 1.02 | |||||||||||||||||
| Cash dividends declared | 0.23 | 0.23 | 0.23 | 0.69 | 0.69 | |||||||||||||||||
| Book value per share | 20.66 | 20.22 | 19.40 | 20.66 | 19.40 | |||||||||||||||||
| Book value per share - tangible (a) | 15.03 | 14.49 | 13.65 | 15.03 | 13.65 | |||||||||||||||||
| Closing market price | 22.59 | 23.56 | 18.00 | 22.59 | 18.00 | |||||||||||||||||
| FINANCIAL RATIOS | ||||||||||||||||||||||
| Return on average assets | 1.12 | % | 1.31 | % | 1.26 | % | 1.23 | % | 0.92 | % | ||||||||||||
| Return on average equity | 9.11 | 10.86 | 11.08 | 10.24 | 7.49 | |||||||||||||||||
| Return on average tangible equity (b) | 13.69 | 16.62 | 17.24 | 15.65 | 10.73 | |||||||||||||||||
| Average equity to average assets | 12.32 | 12.03 | 11.40 | 12.05 | 12.33 | |||||||||||||||||
| Net interest margin, taxable equivalent | 4.14 | 4.57 | 4.41 | 4.47 | 3.98 | |||||||||||||||||
| Efficiency ratio | 62.00 | 55.56 | 57.03 | 58.20 | 63.24 | |||||||||||||||||
| Effective tax rate | 26.88 | 29.36 | 30.63 | 27.93 | 28.19 | |||||||||||||||||
| PERIOD-END BALANCES | ||||||||||||||||||||||
| Securities | $ | 333,278 | $ | 340,791 | $ | 320,304 | $ | 333,278 | $ | 320,304 | ||||||||||||
| Loans held for sale | 8,118 | 9,215 | 3,359 | 8,118 | 3,359 | |||||||||||||||||
| Loans, net of unearned income | 797,818 | 808,069 | 817,858 | 797,818 | 817,858 | |||||||||||||||||
| Goodwill and other intangibles | 44,124 | 44,854 | 44,851 | 44,124 | 44,851 | |||||||||||||||||
| Assets | 1,305,707 | 1,290,892 | 1,305,139 | 1,305,707 | 1,305,139 | |||||||||||||||||
| Assets - tangible (a) | 1,261,583 | 1,246,038 | 1,260,288 | 1,261,583 | 1,260,288 | |||||||||||||||||
| Deposits | 1,052,427 | 1,042,485 | 1,064,477 | 1,052,427 | 1,064,477 | |||||||||||||||||
| Customer repurchase agreements | 45,761 | 46,113 | 43,758 | 45,761 | 43,758 | |||||||||||||||||
| Long-term borrowings | 37,403 | 37,409 | 37,428 | 37,403 | 37,428 | |||||||||||||||||
| Shareholders' equity | 162,045 | 158,424 | 151,361 | 162,045 | 151,361 | |||||||||||||||||
| Shareholders' equity - tangible (a) | 117,921 | 113,570 | 106,510 | 117,921 | 106,510 | |||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||
| Securities | $ | 323,555 | $ | 335,996 | $ | 296,095 | $ | 326,227 | $ | 253,059 | ||||||||||||
| Loans held for sale | 8,237 | 5,819 | 2,641 | 6,525 | 2,048 | |||||||||||||||||
| Loans, net of unearned income | 802,213 | 814,042 | 827,720 | 811,731 | 619,812 | |||||||||||||||||
| Interest-earning assets | 1,166,572 | 1,173,487 | 1,171,982 | 1,171,774 | 904,023 | |||||||||||||||||
| Goodwill and other intangibles | 44,561 | 45,214 | 44,437 | 45,027 | 30,688 | |||||||||||||||||
| Assets | 1,297,698 | 1,308,384 | 1,306,796 | 1,306,104 | 999,219 | |||||||||||||||||
| Assets - tangible (a) | 1,253,137 | 1,263,170 | 1,262,359 | 1,261,077 | 968,531 | |||||||||||||||||
| Interest-bearing deposits | 839,902 | 854,673 | 896,873 | 839,210 | 664,091 | |||||||||||||||||
| Deposits | 1,044,434 | 1,054,427 | 1,067,491 | 1,044,656 | 797,099 | |||||||||||||||||
| Customer repurchase agreements | 46,297 | 48,742 | 45,356 | 46,297 | 45,452 | |||||||||||||||||
| Other short-term borrowings | - | 1,878 | 2 | - | 45 | |||||||||||||||||
| Long-term borrowings | 37,413 | 37,419 | 37,439 | 37,413 | 28,820 | |||||||||||||||||
| Shareholders' equity | 159,868 | 157,390 | 149,033 | 157,323 | 123,184 | |||||||||||||||||
| Shareholders' equity - tangible (a) | 115,307 | 112,176 | 104,596 | 112,296 | 92,496 | |||||||||||||||||
| CAPITAL | ||||||||||||||||||||||
| Average shares outstanding - basic | 7,838,314 | 7,832,162 | 7,800,614 | 7,830,928 | 6,705,607 | |||||||||||||||||
| Average shares outstanding - diluted | 7,855,537 | 7,849,142 | 7,806,668 | 7,846,659 | 6,712,960 | |||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||
| Beginning balance | $ | 12,099 | $ | 11,691 | $ | 8,744 | $ | 10,529 | $ | 8,420 | ||||||||||||
| Provision for loan losses | 333 | 733 | 525 | 1,799 | 1,198 | |||||||||||||||||
| Charge-offs | (614 | ) | (728 | ) | (252 | ) | (1,682 | ) | (957 | ) | ||||||||||||
| Recoveries | 180 | 403 | 69 | 1,352 | 425 | |||||||||||||||||
| Ending balance | $ | 11,998 | $ | 12,099 | $ | 9,086 | $ | 11,998 | $ | 9,086 | ||||||||||||
| LOANS | ||||||||||||||||||||||
| Construction and land development | $ | 50,688 | $ | 50,913 | $ | 57,111 | $ | 50,688 | $ | 57,111 | ||||||||||||
| Commercial real estate | 356,692 | 354,441 | 346,715 | 356,692 | 346,715 | |||||||||||||||||
| Residential real estate | 162,404 | 170,893 | 174,493 | 162,404 | 174,493 | |||||||||||||||||
| Home equity | 95,008 | 95,522 | 99,727 | 95,008 | 99,727 | |||||||||||||||||
| Commercial and industrial | 126,339 | 128,846 | 131,704 | 126,339 | 131,704 | |||||||||||||||||
| Consumer | 6,687 | 7,454 | 8,108 | 6,687 | 8,108 | |||||||||||||||||
| Total | $ | 797,818 | $ | 808,069 | $ | 817,858 | $ | 797,818 | $ | 817,858 | ||||||||||||
| NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||||||||
| Nonperforming loans: | ||||||||||||||||||||||
| 90 days past due | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
| Nonaccrual | 7,815 | 7,995 | 13,455 | 7,815 | 13,455 | |||||||||||||||||
| Foreclosed real estate | 6,259 | 4,731 | 5,920 | 6,259 | 5,920 | |||||||||||||||||
| Nonperforming assets | $ | 14,074 | $ | 12,726 | $ | 19,375 | $ | 14,074 | $ | 19,375 | ||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||||
| Annualized net chargeoffs to average loans | 0.22 | % | 0.16 | % | 0.09 | % | 0.05 | % | 0.11 | % | ||||||||||||
| Nonperforming assets to total assets | 1.08 | 0.99 | 1.48 | 1.08 | 1.48 | |||||||||||||||||
| Nonperforming loans to total loans | 0.98 | 0.99 | 1.65 | 0.98 | 1.65 | |||||||||||||||||
| Allowance for loan losses to total loans | 1.50 | 1.50 | 1.11 | 1.50 | 1.11 | |||||||||||||||||
| Allowance for loan losses to nonperforming loans | 153.53 | 151.33 | 67.53 | 153.53 | 67.53 | |||||||||||||||||
| OTHER DATA | ||||||||||||||||||||||
| Fiduciary assets at period-end (c) | $ | 391,055 | $ | 374,562 | $ | 340,941 | $ | 391,055 | $ | 340,941 | ||||||||||||
| Retail brokerage assets at period-end (c) | $ | 197,434 | $ | 191,577 | $ | 149,284 | $ | 197,434 | $ | 149,284 | ||||||||||||
| Number full-time equivalent employees (d) | 318 | 315 | 306 | 318 | 306 | |||||||||||||||||
| Number of full service offices | 25 | 25 | 25 | 25 | 25 | |||||||||||||||||
| Number of loan production offices | 2 | 2 | 1 | 2 | 1 | |||||||||||||||||
| Number of ATM's | 31 | 31 | 31 | 31 | 31 | |||||||||||||||||
| Notes: | |
| (a) - Excludes goodwill and other intangible assets | |
| (b) - Excludes amortization expense, net of tax, of intangible assets | |
| (c) - Market value | |
| (d) - Average for quarter | |
| Net Interest Income Analysis | ||||||||||||||||||||
| For the Three Months Ended September 30, 2012 and 2011 | ||||||||||||||||||||
| (in thousands, except rates) | ||||||||||||||||||||
| Interest | ||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | $ | 126,701 | $ | 136,204 | $ | 1,598 | $ | 1,603 | 5.00 | % | 4.67 | % | ||||||||
| Real estate | 676,905 | 685,628 | 9,743 | 10,778 | 5.76 | 6.29 | ||||||||||||||
| Consumer | 6,844 | 8,529 | 119 | 163 | 6.90 | 7.58 | ||||||||||||||
| Total loans | 810,450 | 830,361 | 11,460 | 12,544 | 5.65 | 6.04 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Federal agencies | 36,181 | 32,448 | 118 | 186 | 1.30 | 2.29 | ||||||||||||||
| Mortgage-backed & CMOs | 92,708 | 87,785 | 472 | 615 | 2.04 | 2.80 | ||||||||||||||
| State and municipal | 180,820 | 168,134 | 1,933 | 1,896 | 4.28 | 4.51 | ||||||||||||||
| Other | 13,846 | 7,728 | 121 | 78 | 3.50 | 4.04 | ||||||||||||||
| Total securities | 323,555 | 296,095 | 2,644 | 2,775 | 3.27 | 3.75 | ||||||||||||||
| Deposits in other banks | 32,567 | 45,526 | 19 | 28 | 0.23 | 0.24 | ||||||||||||||
| Total interest-earning assets | 1,166,572 | 1,171,982 | 14,123 | 15,347 | 4.84 | 5.23 | ||||||||||||||
| Non-earning assets | 131,126 | 134,814 | ||||||||||||||||||
| Total assets | $ | 1,297,698 | $ | 1,306,796 | ||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 144,284 | $ | 171,744 | 44 | 132 | 0.12 | 0.30 | ||||||||||||
| Money market | 168,212 | 208,962 | 126 | 232 | 0.30 | 0.44 | ||||||||||||||
| Savings | 78,808 | 72,088 | 29 | 26 | 0.15 | 0.14 | ||||||||||||||
| Time | 448,598 | 444,079 | 1,526 | 1,689 | 1.35 | 1.51 | ||||||||||||||
| Total deposits | 839,902 | 896,873 | 1,725 | 2,079 | 0.81 | 0.92 | ||||||||||||||
| Customer repurchase agreements | 46,297 | 45,356 | 33 | 82 | 0.28 | 0.72 | ||||||||||||||
| Other short-term borrowings | - | 2 | - | - | - | 0.75 | ||||||||||||||
| Long-term borrowings | 37,413 | 37,439 | 288 | 275 | 3.08 | 2.94 | ||||||||||||||
| Total interest-bearing liabilities | 923,612 | 979,670 | 2,046 | 2,436 | 0.88 | 0.99 | ||||||||||||||
| Noninterest bearing demand deposits | 204,532 | 170,618 | ||||||||||||||||||
| Other liabilities | 9,686 | 7,475 | ||||||||||||||||||
| Shareholders' equity | 159,868 | 149,033 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,297,698 | $ | 1,306,796 | ||||||||||||||||
| Interest rate spread | 3.96 | % | 4.24 | % | ||||||||||||||||
| Net interest margin | 4.14 | % | 4.41 | % | ||||||||||||||||
| Net interest income (taxable equivalent basis) | 12,077 | 12,911 | ||||||||||||||||||
| Less: Taxable equivalent adjustment | 577 | 568 | ||||||||||||||||||
| Net interest income | $ | 11,500 | $ | 12,343 | ||||||||||||||||
| Net Interest Income Analysis | ||||||||||||||||||||
| For the Nine Months Ended September 30, 2012 and 2011 | ||||||||||||||||||||
| (in thousands, except rates) | ||||||||||||||||||||
| Interest | ||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
| 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | $ | 129,821 | $ | 98,121 | $ | 5,136 | $ | 3,392 | 5.29 | % | 4.62 | % | ||||||||
| Real estate | 679,375 | 516,165 | 31,720 | 22,093 | 6.23 | 5.71 | ||||||||||||||
| Consumer | 9,060 | 7,574 | 485 | 419 | 7.16 | 7.40 | ||||||||||||||
| Total loans | 818,256 | 621,860 | 37,341 | 25,904 | 6.09 | 5.56 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Federal agencies | 36,179 | 37,197 | 435 | 765 | 1.60 | 2.74 | ||||||||||||||
| Mortgage-backed & CMOs | 97,057 | 67,843 | 1,487 | 1,571 | 2.04 | 3.09 | ||||||||||||||
| State and municipal | 181,393 | 141,481 | 5,884 | 4,889 | 4.33 | 4.61 | ||||||||||||||
| Other | 11,598 | 6,538 | 332 | 193 | 3.82 | 3.94 | ||||||||||||||
| Total securities | 326,227 | 253,059 | 8,138 | 7,418 | 3.33 | 3.91 | ||||||||||||||
| Deposits in other banks | 27,291 | 29,104 | 47 | 112 | 0.23 | 0.51 | ||||||||||||||
| Total interest-earning assets | 1,171,774 | 904,023 | 45,526 | 33,434 | 5.18 | 4.93 | ||||||||||||||
| Non-earning assets | 134,330 | 95,196 | ||||||||||||||||||
| Total assets | $ | 1,306,104 | $ | 999,219 | ||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 144,284 | $ | 122,497 | 154 | 167 | 0.14 | 0.18 | ||||||||||||
| Money market | 168,212 | 111,801 | 414 | 382 | 0.33 | 0.46 | ||||||||||||||
| Savings | 78,808 | 66,138 | 88 | 69 | 0.15 | 0.14 | ||||||||||||||
| Time | 447,906 | 363,655 | 4,635 | 4,628 | 1.38 | 1.70 | ||||||||||||||
| Total deposits | 839,210 | 664,091 | 5,291 | 5,246 | 0.84 | 1.06 | ||||||||||||||
| Customer repurchase agreements | 46,297 | 45,452 | 125 | 244 | 0.36 | 0.72 | ||||||||||||||
| Other short-term borrowings | - | 45 | 2 | - | - | 0.47 | ||||||||||||||
| Long-term borrowings | 37,413 | 28,820 | 868 | 973 | 3.09 | 4.50 | ||||||||||||||
| Total interest-bearing liabilities | 922,920 | 738,408 | 6,286 | 6,463 | 0.91 | 1.17 | ||||||||||||||
| Noninterest bearing demand deposits | 205,446 | 133,008 | ||||||||||||||||||
| Other liabilities | 20,415 | 4,619 | ||||||||||||||||||
| Shareholders' equity | 157,323 | 123,184 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,306,104 | $ | 999,219 | ||||||||||||||||
| Interest rate spread | 4.27 | % | 3.76 | % | ||||||||||||||||
| Net interest margin | 4.47 | % | 3.98 | % | ||||||||||||||||
| Net interest income (taxable equivalent basis) | 39,240 | 26,971 | ||||||||||||||||||
| Less: Taxable equivalent adjustment | 1,752 | 1,424 | ||||||||||||||||||
| Net interest income | $ | 37,488 | $ | 25,547 | ||||||||||||||||