• American National Bankshares Inc. Reports Third Quarter 2017 Earnings

    Source: Nasdaq GlobeNewswire / 19 Oct 2017 16:05:59   Eastern Standard Time

    • Organic loan growth of $212.0 million (19.6%) during last four quarters

    • Q3 2017 net income of $4.8 million and diluted EPS of $0.55

    • Net interest margin of 3.56% for Q3 2017

    • Average shareholders’ equity of $209.0 million is 11.79% of average assets

    DANVILLE, Va., Oct. 19, 2017 (GLOBE NEWSWIRE) -- American National Bankshares Inc. (“American National”) (NASDAQ:AMNB), parent company of American National Bank and Trust Company, today announced net income of $4,787,000 for the third quarter of 2017 compared to $3,963,000 for the third quarter of 2016, an $824,000 or 20.8% increase.  Diluted net income per common share was $0.55 for the 2017 quarter compared to $0.46 for the 2016 quarter. Net income for the third quarter of 2017 produced annualized returns on average assets of 1.08%, on average equity of 9.16%, and on average tangible equity of 11.81%.

    Net income for the first nine months of 2017 was $13,129,000 compared to $12,179,000 for the comparable period of 2016, a $950,000 or 7.8% increase. Basic and diluted net income per common share was $1.52 for the 2017 period compared to $1.41 for the 2016 period.

    Financial Performance and Overview

    Jeffrey V. Haley, President and Chief Executive Officer, reported, “We are delighted to report strong growth in our balance sheet. Over the past year, loans have increased $212.0 million or 19.6%.  However, the continuing challenge for us, in this hyper-competitive environment, is achieving reasonable risk adjusted yields on our lending.

    “Loans require liquidity. Deposits have grown $174.2 million or 13.3% over the past year. This growth is mostly in non-maturity core deposits (noninterest bearing and money market accounts), which are the heart of our balance sheet. We continue striving to grow these core deposits and their affiliated relationships, but like the asset side of the balance sheet, the challenge is to do that in a cost effective yet competitive manner. Our cost of interest bearing deposits for the third quarter was 0.57%, compared to 0.53% for the 2016 quarter.

    “On the earnings side, net income for the third quarter was $4,787,000 compared to $3,963,000, an increase of $824,000 or 20.8%.

    “Net interest income was up by $1,874,000 (15.0%) in the third quarter of 2017 compared to the third quarter of 2016. The increase was driven by growth in loans, three prime rate increases, and $333,000 in additional cash basis accretion income, which is unpredictable and non-recurring in nature.

    “Provision for loan losses was up $340,000 in the third quarter of 2017, compared to the third quarter of 2016. The need for additional provision expense related to continued loan growth, an increase in reserves for impaired loans and the charge off of two purchased credit impaired loans, but was mitigated by continued strong asset quality metrics.

    “Noninterest income increased $684,000 (21.9%) in the third quarter of 2017, compared to the third quarter of 2016. This category was positively impacted by a $337,000 gain from the sale of a bank owned commercial lot acquired in the MidCarolina acquisition and non-recurring trust fees of $160,000.

    “Noninterest expense increased in the 2017 quarter by $843,000 (8.5%). The higher level of expense was primarily related to our entry into two new markets in the fourth quarter of 2016.”

    Haley concluded, “We are pleased with our growth in loans and deposits over the past year. Slightly less than half our growth continues from our new markets, Roanoke and Winston-Salem. Our de novo offices have exceeded our initial growth expectations for year one. However, like many other banks, we did see a general slowdown in the third quarter. Our loans grew $6.4 million (0.5%). This is consistent with a national trend in reduced commercial lending, noted in a recent Wall Street Journal article, and was magnified for us by several large loan payoffs. Furthermore, some loan requests have not been consistent with our risk profile requirements. We expect growth will continue, but at a reduced pace compared to the year over year rate. We acknowledge that rising interest rates and hyper-competitive market forces together will put continued pressure on our net interest margin. We will manage these challenges and prevail in the community bank marketplace.”

    Capital

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

    For the quarter ended September 30, 2017, average shareholders’ equity was 11.79% of average assets, compared to 12.67% for the quarter ended September 30, 2016.

    Book value per common share was $24.31 at September 30, 2017, compared to $23.66 at September 30, 2016.

    Tangible book value per common share was $19.09 at September 30, 2017, compared to $18.34 at September 30, 2016.

    Credit Quality Measurements

    Non-performing assets ($2,498,000 of non-performing loans, $538,000 of 90 day past due and accruing loans, and $2,101,000 of other real estate owned) represented 0.29% of total assets at September 30, 2017, compared to 0.31% at September 30, 2016.

    Annualized net charge offs to average loans were seven basis points (0.07%) for the 2017 third quarter, compared to one basis point (0.01%) for the same quarter in 2016.

    Other real estate owned was $2,101,000 compared to $1,145,000 at September 30, 2016, an increase of $956,000 or 83.5%.

    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):

    For the quarter ended September 30,  2017  2016
    Net Interest Income $  557 $  356
    Income Before Income Taxes $  477 $  143
         
    For the nine months ended September 30,  2017  2016
    Net Interest Income $  1,586 $  1,709
    Income Before Income Taxes $  1,138 $  920

    The third quarter of 2017 includes $333,000 in cash basis accretion income related to the early payoff of several acquired loans.

    Net Interest Income

    Net interest income before the provision for loan losses increased to $14,338,000 in the third quarter of 2017 from $12,464,000 in the third quarter of 2016, an increase of $1,874,000 or 15.0%.

    For the 2017 quarter, the net interest margin was 3.56% compared to 3.50% for the same quarter in 2016, an increase of six basis points (0.06%).  The increase in net interest margin was driven by higher yields on earning assets.

    Provision for Loan Losses and Allowance for Loan Losses

    Provision expense for the third quarter of 2017 was $440,000 compared to $100,000 for the third quarter of 2016.

    There has been significant growth in the loans outstanding over the past four quarters. The need for additional provision expense related to continued loan growth, an increase in reserves for impaired loans and the charge off of two purchased credit impaired loans, but was mitigated by continued strong asset quality metrics.

    The allowance for loan losses as a percentage of total loans was 1.07% at September 30, 2017 compared to 1.18% at September 30, 2016.

    Noninterest Income

    Noninterest income totaled $3,804,000 in the third quarter of 2017, compared with $3,120,000 in the third quarter of 2016, an increase of $684,000 or 21.9%.  Trust fees were up $160,000 or 17.1%, driven mostly by non-recurring revenue sources. Other fees were up $64,000 or 9.7%, mostly driven by increased volume in debit card transactions. Mortgage banking was up $100,000 or 19.5%, mostly driven by higher volumes of secondary market mortgages. This category was positively impacted by a $337,000 gain from the sale of a bank owned commercial lot acquired in the MidCarolina acquisition.

    Noninterest Expense

    Noninterest expense totaled $10,710,000 in the third quarter of 2017, compared to $9,867,000 in the third quarter of 2016, an increase of $843,000 or 8.5%. Most of the increase was driven by the startup of operations in Roanoke and Winston-Salem. In addition, we have added personnel expense related to bank wide growth objectives and advance planning for key position, near term succession issues.

    About American National

    American National is a multi-state bank holding company with total assets of approximately $1.8 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 26 banking offices and two loan production offices. American National Bank also manages an additional $825 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; 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 per share data)
    Unaudited
         
      September 30
    ASSETS  2017   2016 
         
    Cash and due from banks $26,949  $37,679 
    Interest-bearing deposits in other banks  76,271   35,138 
         
    Securities available for sale, at fair value  272,205   351,439 
    Restricted stock, at cost  5,509   6,006 
    Loans held for sale  3,386   4,776 
         
    Loans  1,295,154   1,083,201 
    Less allowance for loan losses  (13,858)  (12,757)
    Net Loans  1,281,296   1,070,444 
         
    Premises and equipment, net  25,923   22,846 
    Other real estate owned, net  2,101   1,145 
    Goodwill  43,872   43,872 
    Core deposit intangibles, net  1,271   1,894 
    Bank owned life insurance  18,491   17,998 
    Accrued interest receivable and other assets  23,267   22,297 
         
    Total assets $1,780,541  $1,615,534 
         
         
    Liabilities    
    Demand deposits -- noninterest-bearing $402,100  $339,797 
    Demand deposits -- interest-bearing  225,279   196,696 
    Money market deposits  336,752   255,748 
    Savings deposits  124,025   119,476 
    Time deposits  392,049   394,291 
    Total deposits  1,480,205   1,306,008 
         
    Short-term borrowings:    
    Customer repurchase agreements  43,240   44,090 
    Other short-term borrowings  -   15,000 
    Long-term borrowings  9,996   9,974 
    Junior subordinated debt  27,800   27,698 
    Accrued interest payable and other liabilities  9,086   9,051 
    Total liabilities  1,570,327   1,411,821 
         
    Shareholders' equity    
    Preferred stock, $5 par, 2,000,000 shares authorized,    
    none outstanding  -   - 
    Common stock, $1 par, 20,000,000 shares authorized,    
    8,647,345 shares outstanding at September 30, 2017 and    
    8,610,741 shares outstanding at September 30, 2016  8,600   8,573 
    Capital in excess of par value  75,943   74,839 
    Retained earnings  126,507   117,543 
    Accumulated other comprehensive income (loss), net  (836)  2,758 
    Total shareholders' equity  210,214   203,713 
         
    Total liabilities and shareholders' equity $1,780,541  $1,615,534 
         


    American National Bankshares Inc. 
    Consolidated Statements of Income
    (Dollars in thousands, except per share data)
    Unaudited
                 
      Three Months Ended   Nine Months Ended
      September 30   September 30
      2017  2016    2017  2016 
    Interest and Dividend Income:             
    Interest and fees on loans $14,394  $12,032    $40,850  $35,789 
    Interest and dividends on securities:            
    Taxable  1,108   1,112     3,395   3,346 
    Tax-exempt  460   767     1,604   2,407 
    Dividends  77   74     240   258 
    Other interest income  235   78     469   203 
    Total interest and dividend income  16,274   14,063     46,558   42,003 
                 
    Interest Expense:            
    Interest on deposits  1,529   1,291     4,081   3,902 
    Interest on short-term borrowings  52   4     94   6 
    Interest on long-term borrowings  82   81     243   243 
    Interest on junior subordinated debt  273   223     756   644 
    Total interest expense  1,936   1,599     5,174   4,795 
                 
    Net Interest Income   14,338   12,464     41,384   37,208 
    Provision for loan losses  440   100     1,090   200 
                 
    Net Interest Income After Provision            
    for Loan Losses   13,898   12,364     40,294   37,008 
                 
    Noninterest Income:             
    Trust fees  1,098   938     2,918   2,829 
    Service charges on deposit accounts  513   514     1,498   1,520 
    Other fees and commissions  727   663     2,172   1,991 
    Mortgage banking income  612   512     1,603   1,169 
    Securities gains, net  -   73     590   661 
    Brokerage fees  219   209     603   636 
    Income from Small Business Investment Companies  86   -     118   238 
    Gains (losses) on premises and equipment, net  337   (1)    337   (9)
    Other  212   212     584   749 
    Total noninterest income  3,804   3,120     10,423   9,784 
                 
    Noninterest Expense:             
    Salaries  5,072   4,626     14,604   12,872 
    Employee benefits  1,112   1,034     3,425   3,203 
    Occupancy and equipment  1,151   1,004     3,367   3,162 
    FDIC assessment  138   138     401   519 
    Bank franchise tax  276   257     795   769 
    Core deposit intangible amortization  80   213     448   789 
    Data processing  475   437     1,464   1,340 
    Software  303   301     853   872 
    Other real estate owned, net  62   105     173   314 
    Other  2,041   1,752     6,332   5,601 
    Total noninterest expense  10,710   9,867     31,862   29,441 
                 
    Income Before Income Taxes  6,992   5,617     18,855   17,351 
    Income Taxes  2,205   1,654     5,726   5,172 
    Net Income  $4,787  $3,963    $13,129  $12,179 
                 
    Net Income Per Common Share:             
    Basic $0.55  $0.46    $1.52  $1.41 
    Diluted $0.55  $0.46    $1.52  $1.41 
    Average Common Shares Outstanding:             
    Basic  8,644,310   8,608,323     8,639,433   8,610,100 
    Diluted  8,663,246   8,618,335     8,657,891   8,618,386 
                 


    American National Bankshares Inc.            
    Financial Highlights            
    Unaudited             
                   
     (Dollars in thousands, except per share data)           
        3rd Qtr 2nd Qtr 3rd Qtr  YTD YTD 
        2017
     2017
     2016
      2017
     2016
     
    EARNINGS             
    Interest income $   16,274   $15,603  $14,063   $   46,558   $42,003  
    Interest expense  1,936    1,691   1,599      5,174    4,795  
    Net interest income 14,338    13,912   12,464    41,384    37,208  
    Provision for loan losses   440    350   100      1,090    200  
    Noninterest income 3,804    3,348   3,120      10,423    9,784  
    Noninterest expense 10,710    10,711   9,867      31,862    29,441  
    Income taxes  2,205    1,920   1,654      5,726    5,172  
    Net income  4,787    4,279   3,963    13,129    12,179  
                   
    PER COMMON SHARE            
    Income per share - basic$   0.55   $0.50  $0.46   $   1.52   $1.41  
    Income per share - diluted   0.55    0.49   0.46      1.52    1.41  
    Cash dividends paid   0.24    0.24   0.24      0.72    0.72  
    Book value per share   24.31    23.96   23.66      24.31    23.66  
    Book value per share - tangible (a)   19.09    18.72   18.34      19.09    18.34  
    Closing market price   41.20    36.95   27.95      41.20    27.95  
                   
    FINANCIAL RATIOS            
    Return on average assets 1.08  % 0.99 % 0.99 % 1.01  % 1.03 %
    Return on average equity 9.16    8.28   7.79    8.48    8.06  
    Return on average tangible equity (b) 11.81    10.93   10.41    11.11    10.89  
    Average equity to average assets 11.79    11.91   12.67    11.89    12.73  
    Tangible equity to tangible assets (a) 9.51    9.41   10.06    9.51    10.06  
    Net interest margin, taxable equivalent 3.56    3.54   3.50    3.51    3.54  
    Efficiency ratio (c)  59.14    61.76   61.25    61.23    61.18  
    Effective tax rate  31.54    30.97   29.45    30.37   29.81  
                   
    PERIOD-END BALANCES           
    Securities $   277,714   $286,004  $357,445   $   277,714   $357,445  
    Loans held for sale   3,386    2,379   4,776      3,386    4,776  
    Loans, net of unearned income   1,295,154    1,288,693   1,083,201      1,295,154    1,083,201  
    Goodwill and other intangibles   45,143    45,223   45,766      45,143    45,766  
    Assets     1,780,541    1,764,473   1,615,534      1,780,541    1,615,534  
    Assets - tangible (a)   1,735,398    1,719,250   1,569,768      1,735,398    1,569,768  
    Deposits    1,480,205    1,462,841   1,306,008      1,480,205    1,306,008  
    Customer repurchase agreements   43,240    48,282   44,090      43,240    44,090  
    Other short-term borrowings   -    -   15,000      -    15,000  
    Long-term borrowings   37,796    37,766   37,672      37,796    37,672  
    Shareholders' equity   210,214    207,053   203,713      210,214    203,713  
    Shareholders' equity - tangible (a)   165,071    161,830   157,947      165,071    157,947  
                   
    AVERAGE BALANCES           
    Securities (d) $   281,246   $295,863  $354,780   $   300,407   $354,287  
    Loans held for sale   3,607    2,426   3,761      2,820    2,638  
    Loans, net of unearned income   1,291,822    1,258,346   1,064,606      1,248,929    1,043,177  
    Interest-earning assets   1,646,241    1,610,132   1,477,208      1,610,541    1,455,556  
    Goodwill and other intangibles   45,191    45,337   45,872      45,347    46,153  
    Assets     1,773,636    1,736,686   1,605,387      1,736,955    1,583,006  
    Assets - tangible (a)   1,728,445    1,691,349   1,559,515      1,691,608    1,536,853  
    Interest-bearing deposits   1,066,827    1,047,828   973,431      1,045,422    965,391  
    Deposits    1,468,523    1,433,852   1,301,874      1,431,777    1,286,034  
    Customer repurchase agreements   48,461    49,239   50,013      47,614    47,353  
    Other short-term borrowings   -    -   1,521      3,902    512  
    Long-term borrowings   37,780    37,748   37,655      37,748    37,624  
    Shareholders' equity   209,026    206,774   203,451      206,440    201,560  
    Shareholders' equity - tangible (a)   163,835    161,437   157,579      161,093    155,407  
                   
    American National Bankshares Inc.           
    Financial Highlights            
    Unaudited             
                   
     (Dollars in thousands, except per share data)           
        3rd Qtr 2nd Qtr 3rd Qtr  YTD YTD 
        2017
     2017
     2016
      2017
     2016
     
    CAPITAL              
    Average common shares outstanding - basic   8,644,310    8,640,648   8,608,323      8,639,433    8,610,100  
    Average common shares outstanding - diluted   8,663,246    8,659,165   8,618,335      8,657,891    8,618,386  
                   
    ALLOWANCE FOR LOAN LOSSES           
    Beginning balance$   13,632   $13,108  $12,674   $   12,801   $12,601  
    Provision for loan losses   440    350   100    1,090    200  
    Charge-offs  (277)  (85)  (86)   (411)  (245) 
    Recoveries  63    259   69    378    201  
    Ending balance $   13,858   $13,632  $12,757   $   13,858   $12,757  
                   
    LOANS             
    Construction and land development$   137,869   $132,322  $91,688   $   137,869   $91,688  
    Commercial real estate   602,434    590,093   454,797      602,434    454,797  
    Residential real estate   209,201    211,305   218,632      209,201    218,632  
    Home equity    110,926    113,580   108,617      110,926    108,617  
    Commercial and industrial   230,484    236,418   204,184      230,484    204,184  
    Consumer    4,240    4,975   5,283      4,240    5,283  
    Total  $ 1,295,154   $1,288,693  $1,083,201   $ 1,295,154   $1,083,201  
                   
    NONPERFORMING ASSETS AT PERIOD-END           
    Nonperforming loans:           
    90 days past due and accruing$   538   $1,611  $320   $   538   $320  
    Nonaccrual  2,498    2,117   3,526    2,498    3,526  
    Other real estate owned 2,101    1,686   1,145    2,101    1,145  
    Nonperforming assets$   5,137   $5,414  $4,991   $   5,137   $4,991  
                   
    ASSET QUALITY RATIOS           
    Allowance for loan losses to total loans 1.07  % 1.06 % 1.18 % 1.07  % 1.18 %
    Allowance for loan losses to           
    nonperforming loans 456.46    365.67   331.70    456.46    331.70  
    Nonperforming assets to total assets 0.29    0.31   0.31    0.29    0.31  
    Nonperforming loans to total loans 0.23    0.29   0.36    0.23    0.36  
    Annualized net charge-offs (recoveries)           
    to average loans 0.07    (0.06)  0.01    0.00    0.01  
                   
    OTHER DATA            
    Fiduciary assets at period-end (e) (f)$   517,294   $520,861  $502,390   $   517,294   $502,390  
    Retail brokerage assets at period-end (e) (f)$   307,281   $297,463  $278,089   $   307,281   $278,089  
    Number full-time equivalent employees (g)   335    328   309      335    309  
    Number of full service offices   26    27   25      26    25  
    Number of loan production offices   2    2   2      2    2  
    Number of ATM's    34    34   33      34    33  
                   
    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) - Average does not include unrealized gains and losses.
    (e) - Market value.
    (f) - Assets are not owned by the Company and are not reflected in the consolidated balance sheet.    
    (g) - Average for quarter.           
                   


    Net Interest Income Analysis
    For the Three Months Ended September 30, 2017 and 2016 
    (Dollars in thousands)
    Unaudited
                      
        Interest    
      Average Balance  Income/Expense  Yield/Rate  
                      
       2017  2016  2017  2016 2017 2016 
    Loans:                 
    Commercial $233,455 $200,448 $2,282 $2,022 3.88%4.01%
    Real estate  1,057,326  862,740  12,102  9,939 4.58 4.61 
    Consumer  4,648  5,179  92  136 7.85 10.45 
    Total loans  1,295,429  1,068,367  14,476  12,097 4.46 4.52 
                      
    Securities:                 
    Federal agencies & GSEs  92,822  99,375  445  428 1.92 1.72 
    Mortgage-backed & CMOs  77,663  81,945  399  411 2.06 2.01 
    State and municipal  95,861  158,010  862  1,370 3.60 3.47 
    Other  14,900  15,450  170  132 4.56 3.42 
    Total securities  281,246  354,780  1,876  2,341 2.67 2.64 
                      
    Deposits in other banks  69,566  54,061  235  78 1.34 0.57 
                      
    Total interest-earning assets  1,646,241  1,477,208  16,587  14,516 4.03 3.93 
                      
    Non-earning assets  127,395  128,179           
                      
    Total assets $1,773,636 $1,605,387           
                      
    Deposits:                 
    Demand $215,486 $200,469  11  10 0.02 0.02 
    Money market  336,501  253,269  463  118 0.55 0.19 
    Savings  124,949  117,737  9  9 0.03 0.03 
    Time  389,891  401,956  1,046  1,154 1.06 1.14 
    Total deposits  1,066,827  973,431  1,529  1,291 0.57 0.53 
                      
    Customer repurchase agreements  48,461  50,013  53  1 0.43 0.01 
    Other short-term borrowings  0  1521  0  3 0.00 0.79 
    Long-term borrowings  37,780  37,655  354  304 3.75 3.23 
    Total interest-bearing                 
    liabilities  1,153,068  1,062,620  1,936  1,599 0.67 0.60 
                      
    Noninterest bearing demand deposits  401,696  328,443           
    Other liabilities  9,846  10,873           
    Shareholders' equity  209,026  203,451           
    Total liabilities and                 
    shareholders' equity $1,773,636 $1,605,387           
                      
    Interest rate spread             3.36%3.33%
    Net interest margin             3.56%3.50%
                      
    Net interest income (taxable equivalent basis)     14,651  12,917     
    Less: Taxable equivalent adjustment        313  453     
    Net interest income       $14,338 $12,464     
     


    Net Interest Income Analysis
    For the Nine Months Ended September 30, 2017 and 2016
    (Dollars in thousands)
    Unaudited
                      
          Interest
       
       Average Balance
      Income/Expense
     Yield/Rate
     
                      
       2017  2016  2017  2016 2017 2016 
    Loans:                 
    Commercial $227,739 $196,256 $6,577 $5,852 3.86%3.98%
    Real estate  1,019,185  844,276  34,228  29,620 4.48 4.68 
    Consumer  4,825  5,283  272  507 7.54 12.82 
    Total loans  1,251,749  1,045,815  41,077  35,979 4.38 4.59 
                      
    Securities:                 
    Federal agencies & GSEs  95,360  95,967  1,340  1,252 1.87 1.74 
    Mortgage-backed & CMOs  78,572  79,746  1,224  1,235 2.08 2.06 
    State and municipal  110,328  162,885  2,952  4,336 3.57 3.55 
    Other  16,147  15,689  536  410 4.43 3.48 
    Total securities  300,407  354,287  6,052  7,233 2.69 2.72 
                      
    Deposits in other banks  58,385  55,454  469  203 1.07 0.49 
                      
    Total interest-earning assets  1,610,541  1,455,556  47,598  43,415 3.94 3.98 
                      
    Non-earning assets  126,414  127,450           
                      
    Total assets $1,736,955 $1,583,006           
                      
    Deposits:                 
    Demand $217,052 $220,419  32  90 0.02 0.05 
    Money market  321,738  226,780  1,046  284 0.43 0.17 
    Savings  124,780  117,599  28  37 0.03 0.04 
    Time  381,852  400,593  2,975  3,491 1.04 1.16 
    Total deposits  1,045,422  965,391  4,081  3,902 0.52 0.54 
                      
    Customer repurchase agreements  47,614  47,353  68  3 0.19 0.01 
    Other short-term borrowings  3,902  512  27  3 0.92 0.78 
    Long-term borrowings  37,748  37,624  998  887 3.53 3.14 
    Total interest-bearing                 
    liabilities  1,134,686  1,050,880  5,174  4,795 0.61 0.61 
                      
    Noninterest bearing demand deposits  386,355  320,643           
    Other liabilities  9,474  9,923           
    Shareholders' equity  206,440  201,560           
    Total liabilities and                 
    shareholders' equity $1,736,955 $1,583,006           
                      
    Interest rate spread             3.33%3.37%
    Net interest margin             3.51%3.54%
                      
    Net interest income (taxable equivalent basis)        42,424  38,620     
    Less: Taxable equivalent adjustment        1,040  1,412     
    Net interest income       $41,384 $37,208     
     


      
    Contact:William W. Traynham, Chief Financial Officer
     434-773-2242
     traynhamw@amnb.com
      

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