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American National Bankshares Inc. Reports Third Quarter 2016 Earnings

/EINPresswire.com/ -- DANVILLE, VA--(Marketwired - October 20, 2016) - American National Bankshares Inc. ("American National") (NASDAQ: AMNB)

  • Organic loan growth of $102.2 million (10.4%) during last four quarters
  • De novo initiatives in Roanoke and Winston-Salem
  • Q3 2016 net income of $4.0 million and diluted EPS of $0.45
  • Net interest margin of 3.50% for Q3 2016
  • Average shareholders' equity of $203.5 million is 12.67% of average assets

American National Bankshares Inc. ("American National") (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced net income of $3,963,000 for the third quarter of 2016 compared to $4,037,000 for the third quarter of 2015, a $74,000 or 1.8% decrease. Diluted net income per common share was $0.45 for the 2016 quarter compared to $0.47 for the 2015 quarter. Net income for the third quarter of 2016 produced annualized returns on average assets of 0.99%, on average equity of 7.79%, and on average tangible equity of 10.41%.

Net income for the first nine months of 2016 was $12,179,000 compared to $10,432,000 for the comparable period of 2015, a $1,747,000 or 16.7% increase. Basic and diluted net income per common share was $1.41 for the 2016 period compared to $1.20 for the 2015 period.

Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, reported, "We are excited about our results for 2016 and even more excited about our prospects for 2017. We recently announced the hiring of a team of bankers in Roanoke and a team of bankers in Winston-Salem. We believe these two de novo efforts will complement our existing organic growth and expand our footprint in North Carolina and Virginia. We anticipate these new initiatives will have a material and positive impact to the bank's balance sheet, especially over the next five quarters.

"In the meantime, the legacy bank is growing well. Loans have increased $102.2 million or 10.4% during the past year. We are encouraged that a combination of active business development and improving local market economic conditions are resulting in this high quality growth. However, the continuing challenge for us in this competitive environment is achieving reasonable risk adjusted yield on lending.

"Deposits, which are needed to fund loans, have grown $79.5 million or 6.5% over the past year. This growth is mostly in non-maturity, core deposits, the heart of our balance sheet. We continue working to grow these core deposits and their affiliated relationships, but the challenge in this ongoing low rate environment is to do so in a cost effective yet competitive manner. Our cost of interest bearing deposits for the third quarter was 0.53%, compared to 0.52% for the 2015 quarter.

"Earnings for the quarter were good, $3,963,000 compared to $4,037,000, a decrease of $74,000 or 1.8%. The major driver for this slight decrease was increased salaries expense, largely related to the de novo Roanoke start up."

Haley concluded, "We believe American National has tremendous growth potential, in our new and our existing markets. We think that the next year can be transformational for us. We believe we can achieve this dynamic change and maintain the same fundamental corporate character, i.e. asset quality and strong capital, that has served the bank so well over the past decade."

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

For the quarter ended September 30, 2016, average shareholders' equity was 12.67% of average assets, compared to 12.95% for the quarter ended September 30, 2015.

Book value per common share was $23.66 at September 30, 2016, compared to $22.81 at September 30, 2015.

Tangible book value per common share was $18.34 at September 30, 2016, compared to $17.32 at September 30, 2015.

Credit Quality Measurements
Non-performing assets ($3,846,000 of non-performing loans and $1,145,000 of other real estate owned) represented 0.31% of total assets at September 30, 2016, compared to 0.44% at September 30, 2015.

Annualized net charge offs to average loans were one basis point (0.01%) for the 2016 third quarter, compared to seven basis points (0.07%) for the same quarter in 2015.

Other real estate owned was $1,145,000 compared to $1,333,000 at September 30, 2015, a decrease of 188,000 or 14.1%.

Acquisition Related Financial Impact
The acquisition accounting adjustments related to our two recent acquisitions have had and continue to have a positive impact on net interest income and income before income tax for American National. The impact of these adjustments is summarized below (dollars in thousands):

         
Acquisition related financial impact        
         
For the quarter ended September 30,   2016   2015
Net interest income   $356   $548
Income before Income taxes   $143   $248
         
For the nine months ended September 30,   2016   2015
Net interest income   $1,709   $2,503
Income before Income taxes   $920   $1,602
         

Net Interest Income
Net interest income before the provision for loan losses increased to $12,464,000 in the third quarter of 2016 from $12,061,000 in the third quarter of 2015, an increase of $403,000 or 3.3%.

For the 2016 quarter, the net interest margin was 3.50% compared to 3.64% for the same quarter in 2015, a decrease of 14 basis points (0.14%). The decrease in net interest margin was driven by lower yields on earning assets and reduced levels of accretion income.

Provision for Loan Losses and Allowance for Loan Losses
Provision expense for the third quarter of 2016 was $100,000 compared to zero for the third quarter of 2015.

There has been significant growth in the loans outstanding over the past four quarters. The need for additions to the allowance for loan losses was reduced by improvement in various qualitative factors used in the determination of the allowance, notably asset quality and economic conditions. As noted in the Credit Quality Measurements discussion, non-performing assets, charge-offs, and other real estate owned are all improved over the past year.

The allowance for loan losses as a percentage of total loans was 1.18% at September 30, 2016 compared to 1.29% at September 30, 2015.

Noninterest Income
Noninterest income totaled $3,120,000 in the third quarter of 2016, compared with $3,055,000 in the third quarter of 2015, an increase of $65,000 or 2.1%. Mortgage banking income was the most notable change, as it increased to $512,000, up 36.2% over the prior year quarter.

Noninterest Expense
Noninterest expense totaled $9,867,000 in the third quarter of 2016, compared to $9,388,000 in the third quarter of 2015, an increase of $479,000 or 5.1%. The increase in expenses included compensation and start-up expenses related to the de novo branch in Roanoke.

About American National
American National is a multi-state bank holding company with total assets of approximately $1.6 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 Virginia and North Carolina with 25 banking offices and two loan production offices. American National Bank also manages an additional $780 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 in technology and information security; 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 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. 
Consolidated Balance Sheets 
(Dollars in thousands, except share and per share data) 
Unaudited 
             
    September 30  
ASSETS   2016     2015  
             
Cash and due from banks   $ 37,679     $ 19,280  
Interest-bearing deposits in other banks     35,138       46,637  
Federal funds sold     -       -  
                 
Securities available for sale, at fair value     351,439       358,306  
Restricted stock, at cost     6,006       5,308  
Loans held for sale     4,776       2,998  
                 
Loans     1,083,201       980,984  
  Less allowance for loan losses     (12,757 )     (12,611 )
    Net Loans     1,070,444       968,373  
                 
Premises and equipment, net     22,846       23,854  
Other real estate owned, net     1,145       1,333  
Goodwill     43,872       44,333  
Core deposit intangibles, net     1,894       2,983  
Bank owned life insurance     17,998       17,491  
Accrued interest receivable and other assets     22,297       21,541  
                 
    Total assets   $ 1,615,534     $ 1,512,437  
                 
                 
Liabilities                
  Demand deposits -- noninterest-bearing   $ 339,797     $ 305,110  
  Demand deposits -- interest-bearing     196,696       220,562  
  Money market deposits     255,748       191,534  
  Savings deposits     119,476       108,992  
  Time deposits     394,291       400,323  
    Total deposits     1,306,008       1,226,521  
                 
  Short-term borrowings:                
    Customer repurchase agreements     44,090       43,579  
    Other short-term borrowings     15,000       -  
  Long-term borrowings     9,974       9,952  
  Junior subordinated debt     27,698       27,597  
  Accrued interest payable and other liabilities     9,051       8,337  
    Total liabilities     1,411,821       1,315,986  
                 
Shareholders' equity                
  Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding     -       -  
  Common stock, $1 par, 20,000,000 shares authorized, 8,610,741 shares outstanding at September 30, 2016 and 8,630,329 shares outstanding at September 30, 2015     8,573       8,611  
  Capital in excess of par value     74,839       75,524  
  Retained earnings     117,543       109,030  
  Accumulated other comprehensive income, net     2,758       3,286  
    Total shareholders' equity     203,713       196,451  
                 
    Total liabilities and shareholders' equity   $ 1,615,534     $ 1,512,437  
                 
American National Bankshares Inc.
Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
Unaudited
                   
    Three Months Ended     Nine Months Ended
    September 30     September 30
    2016   2015     2016   2015
Interest and Dividend Income:                  
  Interest and fees on loans   $ 12,032   $ 11,474     $ 35,789   $ 35,011
  Interest on federal funds sold     -     1       -     6
  Interest and dividends on securities:                          
    Taxable     1,112     1,052       3,346     3,021
    Tax-exempt     767     899       2,407     2,799
    Dividends     74     91       258     258
  Other interest income     78     25       203     123
      Total interest and dividend income     14,063     13,542       42,003     41,218
                           
Interest Expense:                          
  Interest on deposits     1,291     1,205       3,902     3,583
  Interest on short-term borrowings     4     2       6     7
  Interest on long-term borrowings     81     82       243     243
  Interest on junior subordinated debt     223     192       644     564
      Total interest expense     1,599     1,481       4,795     4,397
                           
Net Interest Income     12,464     12,061       37,208     36,821
  Provision for loan losses     100     -       200     700
                           
Net Interest Income After Provision for Loan Losses     12,364     12,061       37,008     36,121
                           
Noninterest Income:                          
  Trust fees     938     1,006       2,829     2,963
  Service charges on deposit accounts     514     521       1,520     1,543
  Other fees and commissions     663     592       1,991     1,787
  Mortgage banking income     512     376       1,169     987
  Securities gains, net     73     6       662     553
  Brokerage fees     209     255       636     681
  Income from Small Business Investment Companies     -     99       238     427
  Other     211     200       739     528
      Total noninterest income     3,120     3,055       9,784     9,469
                           
Noninterest Expense:                          
  Salaries     4,626     4,179       12,872     12,634
  Employee benefits     1,034     1,029       3,203     3,215
  Occupancy and equipment     1,004     1,094       3,162     3,290
  FDIC assessment     138     185       519     565
  Bank franchise tax     257     220       769     675
  Core deposit intangible amortization     213     300       789     901
  Data processing     437     366       1,340     1,311
  Software     301     290       872     850
  Other real estate owned, net     105     (126 )     314     60
  Organizational expenses     23     -       23     -
  Merger related expenses     -     87       -     1,948
  Other     1,729     1,764       5,578     5,628
      Total noninterest expense     9,867     9,388       29,441     31,077
                           
Income Before Income Taxes     5,617     5,728       17,351     14,513
Income Taxes     1,654     1,691       5,172     4,081
Net Income   $ 3,963   $ 4,037     $ 12,179   $ 10,432
                           
Net Income Per Common Share:                          
  Basic   $ 0.46   $ 0.47     $ 1.41   $ 1.20
  Diluted   $ 0.45   $ 0.47     $ 1.41   $ 1.20
Weighted Average Common Shares Outstanding:                          
  Basic     8,702,919     8,668,618       8,641,862     8,698,394
  Diluted     8,712,931     8,676,571       8,650,148     8,706,870
                             
American National Bankshares Inc.  
Financial Highlights  
   
(In thousands, except share, ratio and                              
nonfinancial data, unaudited)   3rd Qtr     2nd Qtr     3rd Qtr     YTD     YTD  
    2016     2016     2015     2016     2015  
EARNINGS                              
  Interest income   $ 14,063     $ 13,769     $ 13,542     $ 42,003     $ 41,218  
  Interest expense     1,599       1,609       1,481       4,795       4,397  
  Net interest income     12,464       12,160       12,061       37,208       36,821  
  Provision for loan losses     100       50       -       200       700  
  Noninterest income     3,120       3,367       3,055       9,784       9,469  
  Noninterest expense     9,867       9,656       9,388       29,441       31,077  
  Income taxes     1,654       1,733       1,691       5,172       4,081  
  Net income     3,963       4,088       4,037       12,179       10,432  
                                         
PER COMMON SHARE                                        
  Income per share - basic   $ 0.46     $ 0.47     $ 0.47     $ 1.41     $ 1.20  
  Income per share - diluted     0.45       0.47       0.47       1.41       1.20  
  Cash dividends paid     0.24       0.24       0.23       0.72       0.69  
  Book value per share     23.66       23.54       22.81       23.66       22.81  
  Book value per share - tangible (a)     18.34       18.20       17.32       18.34       17.32  
  Closing market price     27.95       25.18       23.45       27.95       23.45  
                                         
FINANCIAL RATIOS                                        
  Return on average assets     0.99 %     1.03 %     1.07 %     1.03 %     0.91 %
  Return on average equity     7.79       8.11       8.25       8.06       7.09  
  Return on average tangible equity (b)     10.41       10.99       11.42       10.89       9.90  
  Average equity to average assets     12.67       12.67       12.95       12.73       12.90  
  Tangible equity to tangible assets (a)     10.06       10.07       10.18       10.06       10.18  
  Net interest margin, taxable equivalent     3.50       3.45       3.64       3.54       3.69  
  Efficiency ratio (c)     61.25       60.91       61.25       61.18       66.00  
  Effective tax rate     29.45       29.77       29.52       29.81       28.12  
                                         
PERIOD-END BALANCES                                        
  Securities   $ 357,445     $ 368,162     $ 363,614     $ 357,445     $ 363,614  
  Loans held for sale     4,776       4,692       2,998       4,776       2,998  
  Loans, net of unearned income     1,083,201       1,057,959       980,984       1,083,201       980,984  
  Goodwill and other intangibles     45,766       45,979       47,316       45,766       47,316  
  Assets     1,615,534       1,601,651       1,512,437       1,615,534       1,512,437  
  Assets - tangible (a)     1,569,768       1,555,672       1,465,121       1,569,768       1,465,121  
  Deposits     1,306,008       1,298,385       1,226,521       1,306,008       1,226,521  
  Customer repurchase agreements     44,090       53,369       43,579       44,090       43,579  
  Other short-term borrowings     15,000       -       -       15,000       -  
  Long-term borrowings     37,672       37,642       37,549       37,672       37,549  
  Shareholders' equity     203,713       202,704       196,451       203,713       196,451  
  Shareholders' equity - tangible (a)     157,947       156,725       149,135       157,947       149,135  
                                         
AVERAGE BALANCES                                        
  Securities   $ 354,780     $ 361,064     $ 357,427     $ 354,287     $ 350,831  
  Loans held for sale     3,761       2,087       2,873       2,638       2,223  
  Loans, net of unearned income     1,064,606       1,047,993       982,212       1,043,177       969,826  
  Interest-earning assets     1,477,208       1,464,692       1,380,576       1,455,556       1,386,714  
  Goodwill and other intangibles     45,872       46,150       47,446       46,153       47,703  
  Assets     1,605,387       1,592,261       1,511,464       1,583,006       1,520,235  
  Assets - tangible (a)     1,559,515       1,546,111       1,464,018       1,536,853       1,472,532  
  Interest-bearing deposits     973,431       972,385       923,840       965,391       935,893  
  Deposits     1,301,874       1,295,520       1,223,328       1,286,034       1,227,005  
  Customer repurchase agreements     50,013       47,607       45,444       47,353       49,985  
  Other short-term borrowings     1,521       -       57       512       19  
  Long-term borrowings     37,655       37,624       37,531       37,624       37,500  
  Shareholders' equity     203,451       201,685       195,660       201,560       196,135  
  Shareholders' equity - tangible (a)     157,579       155,535       148,214       155,407       148,432  
                                         
American National Bankshares Inc.  
Financial Highlights  
                               
(In thousands, except share, ratio and                              
nonfinancial data, unaudited)   3rd Qtr     2nd Qtr     3rd Qtr     YTD     YTD  
    2016     2016     2015     2016     2015  
CAPITAL                                        
  Weighted average shares outstanding - basic     8,702,919       8,610,156       8,668,618       8,641,862       8,698,394  
  Weighted average shares outstanding - diluted     8,712,931       8,619,833       8,676,571       8,650,148       8,706,870  
                                         
ALLOWANCE FOR LOAN LOSSES                                        
  Beginning balance   $ 12,674     $ 12,675     $ 12,793     $ 12,601     $ 12,427  
  Provision for loan losses     100       50       -       200       700  
  Charge-offs     (86 )     (119 )     (253 )     (245 )     (883 )
  Recoveries     69       68       71       201       367  
  Ending balance   $ 12,757     $ 12,674     $ 12,611     $ 12,757     $ 12,611  
                                         
LOANS                                        
  Construction and land development   $ 91,688     $ 89,451     $ 68,692     $ 91,688     $ 68,692  
  Commercial real estate     454,797       438,164       424,404       454,797       424,404  
  Residential real estate     218,632       216,857       219,415       218,632       219,415  
  Home equity     108,617       107,007       98,249       108,617       98,249  
  Commercial and industrial     204,184       201,381       164,025       204,184       164,025  
  Consumer     5,283       5,099       6,199       5,283       6,199  
  Total   $ 1,083,201     $ 1,057,959     $ 980,984     $ 1,083,201     $ 980,984  
                                         
NONPERFORMING ASSETS AT PERIOD-END                                        
  Nonperforming loans:                                        
    90 days past due and accruing   $ -     $ -     $ -     $ -     $ -  
    Nonaccrual     3,846       3,412       5,360       3,846       5,360  
  Other real estate owned     1,145       1,289       1,333       1,145       1,333  
  Nonperforming assets   $ 4,991     $ 4,701     $ 6,693     $ 4,991     $ 6,693  
                                         
ASSET QUALITY RATIOS                                        
  Allowance for loan losses to total loans     1.18 %     1.20 %     1.29 %     1.18 %     1.29 %
  Allowance for loan losses to nonperforming loans     331.70       371.45       235.28       331.70       235.28  
  Nonperforming assets to total assets     0.31       0.29       0.44       0.31       0.44  
  Nonperforming loans to total loans     0.36       0.32       0.55       0.36       0.55  
  Annualized net charge-offs (recoveries) to average loans     0.01       0.02       0.07       0.01       0.07  
                                         
                                         
OTHER DATA                                        
  Fiduciary assets at period-end (d) (e)   $ 502,390     $ 491,517     $ 486,173     $ 502,390     $ 486,173  
  Retail brokerage assets at period-end (d) (e)   $ 278,089     $ 269,066     $ 247,258     $ 278,089     $ 247,258  
  Number full-time equivalent employees (f)     309       302       310       309       310  
  Number of full service offices     25       25       25       25       25  
  Number of loan production offices     2       2       2       2       2  
  Number of ATM's     33       33       34       33       34  
                                         
Notes:
 
  (a) - Excludes goodwill and other intangible assets.
  (b) - Excludes amortization expense, net of tax, of intangible assets.
 
 
 
(c) - 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 noninterest income and excluding (i) gains or losses on securities and (ii) gains or losses on sale of premises and equipment.
  (d) - Market value.
  (e) - Assets are not owned by the Company and are not reflected in the consolidated balance sheet.
  (f) - Average for quarter.
   
Net Interest Income Analysis  
For the Three Months Ended September 30, 2016 and 2015  
(in thousands, except yields/rates)  
                           
          Interest            
  Average Balance   Income/Expense   Yield/Rate  
                           
  2016   2015   2016   2015   2016     2015  
Loans:                          
  Commercial $ 200,448   $ 164,551   $ 2,022   $ 1,801   4.01 %   4.34 %
  Real estate   862,740     814,500     9,939     9,557   4.61     4.69  
  Consumer   5,179     6,034     136     150   10.45     9.86  
    Total loans   1,068,367     985,085     12,097     11,508   4.52     4.67  
                                   
Securities:                                  
  Federal agencies & GSEs   99,375     103,303     428     431   1.72     1.67  
  Mortgage-backed & CMOs   81,945     57,100     411     282   2.01     1.98  
  State and municipal   158,010     180,799     1,370     1,650   3.47     3.65  
  Other   15,450     16,225     132     140   3.42     3.45  
    Total securities   354,780     357,427     2,341     2,503   2.64     2.80  
                                   
Federal funds sold   -     76     -     1   0.00     5.22  
Deposits in other banks   54,061     37,988     78     25   0.57     0.26  
                                   
  Total interest-earning assets   1,477,208     1,380,576     14,516     14,037   3.93     4.06  
                                   
Non-earning assets   128,179     130,888                        
                                   
    Total assets $ 1,605,387   $ 1,511,464                        
                                   
Deposits:                                  
  Demand $ 200,469   $ 221,700     10     20   0.02     0.04  
  Money market   253,269     191,689     118     63   0.19     0.13  
  Savings   117,737     109,919     9     13   0.03     0.05  
  Time   401,956     400,532     1,154     1,109   1.14     1.10  
    Total deposits   973,431     923,840     1,291     1,205   0.53     0.52  
                                   
Customer repurchase agreements   50,013     45,444     1     2   0.01     0.02  
Other short-term borrowings   1,521     57     3     0   0.79     0.35  
Long-term borrowings   37,655     37,531     304     274   3.23     2.92  
  Total interest-bearing liabilities   1,062,620     1,006,872     1,599     1,481   0.60     0.58  
                                   
Noninterest bearing demand deposits   328,443     299,488                        
Other liabilities   10,873     9,444                        
Shareholders' equity   203,451     195,660                        
    Total liabilities and shareholders' equity $ 1,605,387   $ 1,511,464                        
                                   
Interest rate spread                         3.33 %   3.48 %
Net interest margin                         3.50 %   3.64 %
                                   
Net interest income (taxable equivalent basis)               12,917     12,556            
Less: Taxable equivalent adjustment               453     495            
Net interest income             $ 12,464   $ 12,061            
   
Net Interest Income Analysis  
For the Nine Months Ended September 30, 2016 and 2015  
(in thousands, except yields/rates)  
   
          Interest            
  Average Balance   Income/Expense   Yield/Rate  
                           
  2016   2015   2016   2015   2016     2015  
Loans:                          
  Commercial $ 196,256   $ 153,234   $ 5,852   $ 5,387   3.98 %   4.70 %
  Real estate   844,276     807,875     29,620     29,117   4.68     4.81  
  Consumer   5,283     10,940     507     595   12.82     7.27  
    Total loans   1,045,815     972,049     35,979     35,099   4.59     4.82  
                                   
Securities:                                  
  Federal agencies & GSEs   95,967     88,427     1,252     1,000   1.74     1.51  
  Mortgage-backed & CMOs   79,746     61,434     1,235     994   2.06     2.16  
  State and municipal   162,885     185,587     4,336     5,133   3.55     3.69  
  Other   15,689     15,383     410     388   3.48     3.36  
    Total securities   354,287     350,831     7,233     7,515   2.72     2.86  
                                   
Federal funds sold   -     6,992     -     6   0.00     0.11  
Deposits in other banks   55,454     56,842     203     123   0.49     0.29  
                                   
  Total interest-earning assets   1,455,556     1,386,714     43,415     42,743   3.98     4.11  
                                   
Non-earning assets   127,450     133,521                        
                                   
    Total assets $ 1,583,006   $ 1,520,235                        
                                   
Deposits:                                  
  Demand $ 220,419   $ 223,858     90     60   0.05     0.04  
  Money market   226,780     196,693     284     195   0.17     0.13  
  Savings   117,599     109,008     37     39   0.04     0.05  
  Time   400,593     406,334     3,491     3,289   1.16     1.08  
    Total deposits   965,391     935,893     3,902     3,583   0.54     0.51  
                                   
Customer repurchase agreements   47,353     49,985     3     7   0.01     0.02  
Other short-term borrowings   512     19     3     0   0.78     0.35  
Long-term borrowings   37,624     37,500     887     807   3.14     2.87  
  Total interest-bearing liabilities   1,050,880     1,023,397     4,795     4,397   0.61     0.57  
                                   
Noninterest bearing demand deposits   320,643     291,112                        
Other liabilities   9,923     9,591                        
Shareholders' equity   201,560     196,135                        
    Total liabilities and shareholders' equity $ 1,583,006   $ 1,520,235                        
                                   
Interest rate spread                         3.37 %   3.54 %
Net interest margin                         3.54 %   3.69 %
                                   
Net interest income (taxable equivalent basis)               38,620     38,346            
Less: Taxable equivalent adjustment               1,412     1,525            
Net interest income             $ 37,208   $ 36,821            
                                   

Contact:
William W. Traynham
Chief Financial Officer

434-773-2242
traynhamw@amnb.com