DANVILLE, VA--(Marketwire - April 21, 2010) - American National Bankshares Inc. (
NASDAQ:
AMNB)
-- Net income of $2,185,000
-- EPS of $.36 per share
-- Net interest margin 3.90%
-- Allowance for loan losses 1.57% of loans
-- Shareholders' equity 13.24% of average assets
American National Bankshares Inc. (
NASDAQ:
AMNB), parent company of
American National Bank and Trust Company, today announced first quarter
2010 net income of $2,185,000. Earnings per share were $0.36 on both a
basic and diluted basis. This net income produced returns on average
assets and average equity of 1.08% and 8.14%, respectively. Annualized
return on average tangible equity was 10.83%.
Financial Performance
"Our first quarter 2010 earnings were almost $2.2 million, up $1.4 million
or 185% from the first quarter of 2009. It was a solid quarter for American
National, considering the current economic environment," stated Charles H.
Majors, President and Chief Executive Officer.
"We had improvement in several areas. Net interest income was up $491,000
or 7.7%, mostly the result of effective pricing of deposits and other
interest bearing liabilities.
"Noninterest income was up $1.2 million or 162%. The largest component of
that change was a first quarter 2009 valuation adjustment on certain
foreclosed real estate which resulted in a pre-tax charge of $1.2 million.
"Noninterest expense also improved; it was down $378,000 or 6.4%. Most of
that improvement was related to targeted expense control, including lower
staff levels and a change in our defined benefit program.
"Our loan portfolio fell $12.6 million or 2.4% during the first quarter.
Deposits have increased $5.3 million or 0.9% during the same period. These
changes are continuations of trends that dominated our balance sheet during
2009 and into early 2010."
Mr. Majors concluded, "There has been and continues to be a massive
deleveraging in the consumer and commercial sectors of the economy. This is
a macro-economic trend that has impacted all segments of our industry. But
as we noted last quarter, we believe we are beginning to see some early
signs of an uptick in demand for loans. The economic recovery will likely
be painfully slow and spotty, but our Bank is ready, willing and able to
help our market areas move as quickly as possible to more normal levels of
economic activity."
Capital
American National's capital ratios are among the highest in its peer group.
At March 31, 2010, average shareholders' equity was 13.24% of average
assets.
Credit Quality Measurements
Nonperforming assets were below industry averages and represented 0.89% of
total assets at March 31, 2010, compared to 0.87% at December 31, 2009.
Nonperforming assets at March 31, 2010 consisted of $3.4 million of
nonaccrual loans and $3.8 million of foreclosed real estate, up $195,000
from year-end. Annualized net charge-offs decreased to 0.26% during the
first quarter of 2010 compared to 0.31% in fourth quarter of 2009. The
allowance for loans losses was $8.1 million, or 1.57% of loans, at March
31, 2010 compared to 1.55% at December 31, 2009 and 1.38% at March 31,
2009.
Net Interest Income
Net interest income increased to $6.9 million in the first quarter of 2010
from $6.4 million in the first quarter of 2009, a net increase of $491,000
or 7.7%. Our net interest margin, on a tax equivalent basis, for the first
quarter 2010 was 3.90%, up from 3.61% for the same quarter of 2009
Noninterest Income
Noninterest income totaled $1.9 million in the first quarter of 2010,
compared with $734,000 in the first quarter of 2009. Noninterest income
was significantly reduced in the first quarter of 2009 by a $1.2 million
valuation adjustment of one item of foreclosed real estate, noted above.
Noninterest Expense
Noninterest expense totaled $5.5 million in the first quarter of 2010,
compared to $5.9 million in the first quarter of 2009. Most of the
reduction in expense was related to targeted expense control, including
lower staff levels and a change in our defined benefit program, also noted
above.
About American National
American National Bankshares Inc. is a bank holding company with assets of
$810 million. Headquartered in Danville, Virginia, it is the holding
company of American National Bank and Trust Company, a community bank
serving Southern and Central Virginia and the northern portion of Central
North Carolina with 18 banking offices. The Bank also manages an
additional $415 million of assets in its Trust and Investment Services
Division.
American National Bank and Trust Company provides a full array of financial
products and services. Additional information is available on the Bank's
website at
www.amnb.com. The shares of American National Bankshares Inc.
are traded on the NASDAQ Global Select Market under the symbol "AMNB."
Forward-Looking Statements
This press release may contain "forward-looking statements," within the
meaning of federal securities laws that involve significant risks and
uncertainties. Statements herein are based on certain assumptions and
analyses by the Company 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; and significant
changes in securities markets. Consequently, all forward-looking
statements made herein are qualified by these cautionary statements and the
cautionary language in the Company'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
March 31
--------------------
ASSETS 2010 2009
--------- ---------
Cash and due from banks $ 11,059 $ 13,632
Interest-bearing deposits in other banks 25,531 18,188
Securities available for sale, at fair value 190,949 163,846
Securities held to maturity 5,802 6,811
--------- ---------
Total securities 196,751 170,657
--------- ---------
Restricted stock, at cost 4,362 4,135
Loans held for sale 2,208 2,782
Loans 515,366 569,003
Less allowance for loan losses (8,112) (7,836)
--------- ---------
Net Loans 507,254 561,167
--------- ---------
Premises and equipment, net 19,145 18,018
Other real estate owned, net 3,815 3,345
Goodwill 22,468 22,468
Core deposit intangibles, net 1,603 1,981
Accrued interest receivable and other assets 16,458 13,105
--------- ---------
Total assets $ 810,654 $ 829,478
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand deposits -- noninterest-bearing $ 101,190 $ 98,926
Demand deposits -- interest-bearing 98,968 94,505
Money market deposits 79,225 72,085
Savings deposits 64,721 63,553
Time deposits 265,517 286,819
--------- ---------
Total deposits 609,621 615,888
--------- ---------
Short-term borrowings:
Customer repurchase agreements 60,372 60,768
Other short-term borrowings - 12,440
Long-term borrowings 8,600 13,750
Trust preferred capital notes 20,619 20,619
Accrued interest payable and other liabilities 4,260 4,098
--------- ---------
Total liabilities 703,472 727,563
--------- ---------
Shareholders' equity:
Common stock, $1 par, 10,000,000 shares
authorized, 6,123,275 shares outstanding at March
31, 2010 and 6,079,161 shares outstanding at March
31, 2009 6,123 6,079
Capital in excess of par value 27,063 26,488
Retained earnings 72,985 70,379
Accumulated other comprehensive income (loss), net 1,011 (1,031)
--------- ---------
Total shareholders' equity 107,182 101,915
--------- ---------
Total liabilities and shareholders' equity $ 810,654 $ 829,478
========= =========
American National Bankshares Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
Unaudited
Three Months Ended
March 31
--------------------
2010 2009
--------- ---------
Interest and Dividend Income:
Interest and fees on loans $ 7,155 $ 8,034
Interest and dividends on securities:
Taxable 1,316 1,120
Tax-exempt 466 386
Dividends 23 22
Other interest income 91 88
--------- ---------
Total interest and dividend income 9,051 9,650
--------- ---------
Interest Expense:
Interest on deposits 1,635 2,527
Interest on short-term borrowings 105 236
Interest on long-term borrowings 64 131
Interest on customer repurchase agreements
Interest on trust preferred capital notes 343 343
--------- ---------
Total interest expense 2,147 3,237
--------- ---------
Net Interest Income 6,904 6,413
Provision for loan losses 285 350
--------- ---------
Net Interest Income After Provision
for Loan Losses 6,619 6,063
--------- ---------
Noninterest Income:
Trust fees 812 758
Service charges on deposit accounts 479 502
Other fees and commissions 278 242
Mortgage banking income 246 286
Brokerage fees 21 57
Securities gains (losses), net (29) -
Impairment of securities - -
Net loss on foreclosed real estate (3) (1,179)
Other 117 68
--------- ---------
Total noninterest income 1,921 734
--------- ---------
Noninterest Expense:
Salaries 2,398 2,531
Employee benefits 640 813
Occupancy and equipment 779 740
FDIC assessment 195 217
Bank franchise tax 167 163
Core deposit intangible amortization 94 94
Other 1,224 1,317
--------- ---------
Total noninterest expense 5,497 5,875
--------- ---------
Income Before Income Taxes 3,043 922
Income Taxes 858 154
--------- ---------
Net Income $ 2,185 $ 768
========= =========
Net Income Per Common Share:
Basic $ 0.36 $ 0.13
Diluted $ 0.36 $ 0.13
Average Common Shares Outstanding:
Basic 6,119,415 6,081,998
Diluted 6,124,306 6,085,457
American National Bankshares Inc. and Subsidiaries
Financial Highlights
(In thousands, except
share, ratio and
nonfinancial
data, unaudited) 1st Qtr 4th Qtr 1st Qtr YTD YTD
2010 2009 2009 2010 2009
--------- --------- --------- --------- ---------
EARNINGS
Interest income $ 9,051 $ 9,257 $ 9,650 $ 9,051 $ 9,650
Interest expense 2,147 2,307 3,237 2,147 3,237
Net interest income 6,904 6,950 6,413 6,904 6,413
Provision for loan
losses 285 328 350 285 350
Noninterest income 1,921 1,937 734 1,921 734
Noninterest expense 5,497 5,524 5,875 5,497 5,875
Income taxes 858 866 154 858 154
Net income 2,185 2,169 768 2,185 768
PER COMMON SHARE
Earnings per share
- basic $ 0.36 $ 0.36 $ 0.13 $ 0.36 $ 0.13
Earnings per share
- diluted 0.36 0.35 0.13 0.36 0.13
Cash dividends
declared 0.23 0.23 0.23 0.23 0.23
Book value per
share 17.50 17.41 16.76 17.50 16.76
Book value per
share - tangible(a) 13.57 13.46 12.74 13.57 12.74
Closing market price 20.15 21.90 15.60 20.15 15.60
FINANCIAL RATIOS
Return on average
assets 1.08% 1.07% 0.38% 1.08% 0.38%
Return on average
equity 8.14 8.24 2.99 8.14 2.99
Return on average
tangible equity(b) 10.83 11.03 4.32 10.83 4.32
Average equity to
average assets 13.24 12.93 12.80 13.24 12.80
Net interest
margin, taxable
equivalent 3.90 3.88 3.61 3.90 3.61
Efficiency ratio 60.22 58.79 68.77 60.22 68.77
Effective tax rate 28.20 28.53 16.70 28.20 16.70
PERIOD-END BALANCES
Securities $ 201,113 $ 199,686 $ 174,792 $ 201,113 $ 174,792
Loans held for sale 2,208 2,490 2,782 2,208 2,782
Loans, net of
unearned income 515,366 527,991 569,003 515,366 569,003
Goodwill and other
intangibles 24,071 24,166 24,449 24,071 24,449
Assets 810,654 808,973 829,478 810,654 829,478
Assets
- tangible(a) 786,583 784,807 805,029 786,583 805,029
Deposits 609,621 604,273 615,888 609,621 615,888
Customer repurchase
agreements 60,372 65,929 60,678 60,372 60,678
Other short-term
borrowings - - 12,440 - 12,440
Long-term
borrowings 29,219 29,257 34,369 29,219 34,369
Shareholders'
equity 107,182 106,389 101,915 107,182 101,915
Shareholders'
equity
- tangible(a) 83,111 82,223 77,466 83,111 77,466
AVERAGE BALANCES
Securities $ 184,696 $ 167,546 $ 138,067 $ 184,696 $ 138,067
Loans held for
sale 2,444 4,394 2,996 2,444 2,996
Loans, net of
unearned income 518,403 540,103 570,342 520,847 570,342
Interest-earning
assets 736,183 744,007 734,980 736,183 734,980
Goodwill and other
intangibles 24,125 24,217 24,507 24,125 24,507
Assets 810,620 814,232 803,206 810,620 803,206
Assets
- tangible(a) 786,495 790,015 778,699 786,495 778,699
Interest-bearing
deposits 507,209 499,725 510,821 507,209 510,821
Deposits 606,085 604,506 604,002 606,085 604,002
Customer repurchase
agreements 63,947 70,014 56,051 63,947 56,051
Other short-term
borrowings - 91 2,071 - 2,071
Long-term
borrowings 29,248 29,287 34,398 29,248 34,398
Shareholders'
equity 107,336 105,302 102,845 107,336 102,845
Shareholders'
equity
- tangible(a) 83,211 81,085 78,338 83,211 78,338
CAPITAL
Average shares
outstanding -
basic 6,119,415 6,108,340 6,081,998 6,119,415 6,081,998
Average shares
outstanding -
diluted 6,124,306 6,116,800 6,085,457 6,124,306 6,085,457
Shares repurchased - - 7,600 - 7,600
Average price of
shares
repurchased $ - $ - $ 15.92 $ - $ 15.92
ALLOWANCE FOR LOAN
LOSSES
Beginning balance $ 8,166 $ 8,260 $ 7,824 $ 8,166 $ 7,824
Provision for loan
losses 285 328 350 285 350
Charge-offs (427) (485) (376) (427) (376)
Recoveries 88 63 38 88 38
--------- --------- --------- --------- ---------
Ending balance $ 8,112 $ 8,166 $ 7,836 $ 8,112 $ 7,836
LOANS
Construction and
land development $ 39,421 $ 40,371 $ 53,579 $ 39,421 $ 53,579
Commercial real
estate 205,642 208,066 213,508 205,642 213,508
Residential real
estate 119,776 121,639 134,510 119,776 134,510
Home equity 63,302 64,678 61,459 63,302 61,459
Commercial and
industrial 80,331 86,312 97,259 80,331 97,259
Consumer 6,894 6,925 8,688 6,894 8,688
--------- --------- --------- --------- ---------
Total $ 515,366 $ 527,991 $ 569,003 $ 515,366 $ 569,003
NONPERFORMING ASSETS
AT PERIOD-END
Nonperforming
loans:
90 days past due $ - $ - $ - $ - $ -
Nonaccrual 3,436 3,642 2,821 3,436 2,821
Foreclosed real
estate 3,815 3,414 3,345 3,815 3,345
--------- --------- --------- --------- ---------
Nonperforming
assets $ 7,251 $ 7,056 $ 6,166 $ 7,251 $ 6,166
ASSET QUALITY RATIOS
Annualized net
chargeoffs to
average loans 0.26% 0.31% 0.24% 0.26% 0.24%
Nonperforming
assets to total
assets 0.89 0.87 0.74 0.89 0.74
Nonperforming
loans to total
loans 0.67 0.69 0.50 0.67 0.50
Allowance for loan
losses to total
loans 1.57 1.55 1.38 1.57 1.38
Allowance for loan
losses to
nonperforming
loans 236.09 224.22 277.77 236.09 277.77
OTHER DATA
Fiduciary assets
at period-end (c) $ 363,205 $ 358,124 $ 305,129 $ 363,205 $ 305,129
Retail brokerage
assets at
period-end (c) $ 51,848 $ 54,696 $ 82,554 $ 51,848 $ 82,554
Number full-time
equivalent
employees (d) 235 238 258 235 258
Number of full
service offices 18 18 20 18 20
Number of loan
production
offices 1 2 2 1 2
Number of ATM's 26 24 23 26 23
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
N/A - Percentage change is not applicable or not meaningful
American National Bankshares Inc. and Subsidiaries
Net Interest Income Analysis
For the Three Months Ended March 31, 2010 and 2009
(in thousands, except rates)
Interest
Average Balance Income/Expense Yield/Rate
----------------- ----------------- ----------------
2010 2009 2010 2009 2010 2009
-------- -------- -------- -------- ------- -------
Loans:
Commercial $ 79,279 $ 96,097 $ 953 $ 1,100 4.81% 4.58%
Real estate 434,795 469,346 6,095 6,779 5.61 5.78
Consumer 6,773 7,895 134 178 7.91 9.02
-------- -------- -------- -------- ------- -------
Total loans 520,847 573,338 7,182 8,057 5.52 5.62
-------- -------- -------- -------- ------- -------
Securities:
Federal agencies 65,751 45,767 551 521 3.35 4.55
Mortgage-backed 43,783 44,560 501 562 4.58 5.04
State and municipal 67,538 42,726 927 604 5.49 5.65
Other 7,624 5,014 69 33 3.62 2.63
-------- -------- -------- -------- ------- -------
Total securities 184,696 138,067 2,048 1,720 4.44 4.98
-------- -------- -------- -------- ------- -------
Deposits in other
banks 30,640 23,575 91 88 1.19 1.49
-------- -------- -------- -------- ------- -------
Total interest
earning assets 736,183 734,980 9,321 9,865 5.06 5.37
-------- -------- ------- -------
Nonearning assets 74,437 68,226
-------- --------
Total assets $810,620 $803,206
======== ========
Deposits:
Demand $ 97,062 $112,459 21 190 0.09 0.68
Money market 80,809 64,648 90 198 0.45 1.23
Savings 62,801 61,289 22 40 0.14 0.26
Time 266,537 272,425 1,502 2,099 2.25 3.08
-------- -------- -------- -------- ------- -------
Total deposits 507,209 510,821 1,635 2,527 1.29 1.98
Customer repurchase
agreements 63,947 56,051 105 233 0.66 1.66
Other short-term
borrowings - 2,071 - 3 - 0.58
Long-term borrowings 29,248 34,398 407 474 5.57 5.51
-------- -------- -------- -------- ------- -------
Total interest
bearing
liabilities 600,404 603,341 2,147 3,237 1.43 2.15
-------- -------- ------- -------
Noninterest bearing
demand deposits 98,876 93,181
Other liabilities 4,004 3,839
Shareholders' equity 107,336 102,845
-------- --------
Total liabilities
and shareholders'
equity $810,620 $803,206
======== ========
Interest rate spread 3.63% 3.22%
======= =======
Net interest margin 3.90% 3.61%
======= =======
Net interest income
(taxable equivalent
basis) 7,174 6,628
Less: Taxable
equivalent
adjustment 270 215
-------- --------
Net interest income $ 6,904 $ 6,413
======== ========