DANVILLE, VA--(Marketwired - Jan 21, 2016) - American National Bankshares Inc. (
- Q4 2015 net income of $4.6 million
- Diluted EPS $0.53 for Q4 2015 compared to $0.37 for Q4 2014
- Net interest margin of 3.68% for Q4 2015
- Average shareholders' equity for Q4 of $197.7 million is 12.88% of average assets
- Organic loan growth for 2015 of 7%
American National Bankshares Inc. ("American National") (
Net income for the year ended December 31, 2015 was $15,039,000 compared to $12,741,000 for 2014, a $2,298,000 or 18.04% increase. Basic and diluted net income per common share was $1.73 for the 2015 period compared to $1.62 for the 2014 period.
The quarter and the year were positively impacted by the January 2015 acquisition of MainStreet BankShares and its subsidiary Franklin Community Bank.
Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, reported, "As we think about 2015, it was an exciting, productive, challenging, and ultimately very successful year for American National.
"American National has a long and enviable legacy of strong capital. We are working to deploy this capital more effectively and efficiently, while still maintaining that fundamental legacy strength. This past year we've seen the results of those strategic efforts: the acquisition of MainStreet, significant organic growth in our existing markets, an increase in our cash dividend to the shareholders, and an active stock repurchase program.
"Acquiring another financial institution is one of the most important and complicated activities any bank ever undertakes. Under any circumstances it brings a host of operational, technical, personnel and customer related challenges. The acquisition of MainStreet, consummated early in 2015, went remarkably well, thanks to the combined efforts of our employees and our new colleagues from MainStreet.
"Organic growth has been difficult during the recent economic downturn. This past year our loan portfolio grew $165 million (19.6%). Of that growth, $106 million related to the MainStreet merger and $59 million was organic. Put another way, our loans, exclusive of acquired loans, grew 7.0% last year. To fund these loans our deposits grew $187 million (17.4%) last year. Of that growth, $117 million related to the MainStreet merger and $70 million was organic growth. Legacy deposit growth, on its own, was 6.6%. We're very pleased with the growth on both sides of our balance sheet.
"American National considers the payment of appropriate dividends a vital part of its capital planning strategy. The Company adheres to a dividend policy based on a review of earnings, growth, capital and other factors that are relevant to the dividend decision process. Accordingly, the Company increased its cash dividend in the fourth quarter to $0.24 per share, an increase of one cent or 4.3% and the first change in the dividend payment since 2007. Based on the current price of the stock, the dividend yield on American National is approximately 4.2%.
"The Company also realizes that, in some circumstances, an efficient capital management strategy can be repurchase of its common stock. During 2015, the Company has repurchased approximately 155,000 shares at an average price of $23.31. Any future repurchase activity will ebb and flow with changes in circumstances and as alternative uses for our capital may develop.
"On the earnings side, our net income for the fourth quarter was $4,607,000, up from $2,890,000 in the 2014 quarter, an increase of $1,717,000 or 59.4%.
"The biggest driver of that increase was the MainStreet merger, which had a significant and positive impact to operating results by adding substantially to earning assets. Net interest income for the quarter is up by $1,989,000 and of that increase 61.3% relates to the MainStreet acquisition.
"Noninterest income was higher in the 2015 quarter by $1,026,000 or 36.7%. Almost all categories showed notable improvement compared to the prior year quarter.
"Noninterest expense was higher in the 2015 quarter by $523,000 or 5.8%. The size of the increase was reduced by a decrease in merger related expenses.
Haley concluded, "We had a really good year in 2015. The merger with MainStreet went well. We had solid organic growth on both sides of the balance sheet -- loans and deposits. Earnings were strong, even after allowing for almost $2 million in merger related costs during the year. But that's behind us now and we are focused on 2016 and making it an even better year."
Capital
American National's capital ratios remain strong and exceed all regulatory requirements.
For the quarter ended December 31, 2015, average shareholders' equity was 12.88% of average assets, compared to 13.04% for the quarter ended December 31, 2014.
Book value per common share was $22.95 at December 31, 2015, compared to $22.07 at December 31, 2014.
Tangible book value per common share was $17.55 at December 31, 2015, compared to $16.86 at December 31, 2014.
Credit Quality Measurements
Non-performing assets ($5,205,000 of non-performing loans and $2,184,000 of other real estate owned) represented 0.48% of total assets at December 31, 2015, compared to 0.46% at December 31, 2014.
Annualized net charge offs to average loans were eleven basis points (0.11%) for the 2015 fourth quarter, compared to twenty-two basis points (0.22%) for the same quarter in 2014.
Other real estate owned was $2,184,000 at December 31, 2015, compared to $2,119,000 at December 31, 2014, a decrease of $65,000 or 3.1%.
Merger related financial impact
The fair value adjustments related to our two recent mergers have had and continue to have a positive impact on net interest income and income before income tax for American National. The impact of the adjustments is summarized below (dollars in thousands):
| MainStreet | December 31, 2015 | |||||||||||
| For the three months ended | For the twelve months ended | |||||||||||
| Net Interest Income | $ | (232) | $ | 864 | ||||||||
| Income Before Income Taxes | $ | (306) | $ | 569 | ||||||||
| MidCarolina | December 31, 2015 | December 31, 2014 | ||||||||||
| For the three months ended | For the twelve months ended | For the three months ended | For the twelve months ended | |||||||||
| Net Interest Income | $ | 1,052 | $ | 2,459 | $ | 605 | $ | 2,669 | ||||
| Income Before Income Taxes | $ | 826 | $ | 1,553 | $ | 378 | $ | 1,744 | ||||
The MainStreet merger was effective January 1, 2015; therefore, no comparative 2014 information is presented.
During the fourth quarter 2015, management evaluated the performance of the MainStreet purchased credit impaired ("PCI") loan portfolio. A large dollar volume of principal payoffs, in excess of $4 million, indicated the possibility that the initial valuation assumptions at the merger date may have been overly pessimistic. The Company conducted a detailed review that resulted in a measurement period adjustment of the PCI portfolio. The net result was a $533,000 reduction in year-to-date accretion income and adjustments to goodwill.
In addition, during the fourth quarter, the Company received a payoff of a PCI loan in the MidCarolina portfolio that resulted in $540,000 in current quarter cash-basis accretion income.
Net Interest Income
Net interest income before provision for loan losses increased to $12,444,000 in the fourth quarter of 2015 from $10,455,000 in the fourth quarter of 2014, an increase of $1,989,000 or 19.0%.
For the 2015 quarter, the net interest margin was 3.68% compared to 3.59% for the same quarter in 2014, an increase of 0.09%.
Provision for Loan Losses and Allowance for Loan Losses
Provision expense for both the fourth quarters of 2015 and 2014 was $250,000.
The allowance for loan losses as a percentage of total loans was 1.25% at December 31, 2015 compared to 1.48% at December 31, 2014. The largest driver of this decrease was the merger with MainStreet, whose loans were marked to fair value at the merger date and whose related allowance for loan loss was eliminated in the accounting for the business combination.
There was significant growth in the loans outstanding in the fourth quarter, a net of $24.5 million. The need for additional loan loss provision was partially mitigated by some improvement in various qualitative factors used in the determination of the allowance.
Noninterest Income
Noninterest income totaled $3,818,000 in the fourth quarter of 2015, compared with $2,792,000 in the fourth quarter of 2014, an increase of $1,026,000 or 36.7%. Almost all income categories showed increases, much of which were related to increased transaction volumes resulting from the MainStreet transaction.
Trust fees showed a decrease of $93,000 (8.7%); revenue for this category is directly impacted by changes in the equity markets. Securities gains showed a $313,000 increase from the fourth quarter of 2014; this was related to actions resulting from asset/liability strategy decisions. Other income showed an increase of $543,000, most of which was related to income from investments in a Small Business Investment Corporation (SBIC).
Noninterest Expense
Noninterest expense totaled $9,466,000 in the fourth quarter of 2015, compared to $8,943,000 in the fourth quarter of 2014, an increase of $523,000 or 5.8%.
All expense categories were impacted by the MainStreet merger and the integration of Franklin Community Bank into American National's operations.
The increase in noninterest expense was mitigated by a $462,000 reduction in nonrecurring merger related expense, which were $50,000 in the current quarter and $512,000 in the prior year quarter.
About American National
American National Bankshares Inc. is a multi-state bank holding company with total assets of approximately $1.5 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 and Trust Company also manages an additional $749 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 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 | ||||||||||
| December 31 | ||||||||||
| ASSETS | 2015 | 2014 | ||||||||
| Cash and due from banks | $ | 19,352 | $ | 29,272 | ||||||
| Interest-bearing deposits in other banks | 75,985 | 38,031 | ||||||||
| Securities available for sale, at fair value | 340,349 | 344,716 | ||||||||
| Restricted stock, at cost | 5,312 | 4,367 | ||||||||
| Loans held for sale | 3,266 | 616 | ||||||||
| Loans | 1,005,525 | 840,925 | ||||||||
| Less allowance for loan losses | (12,601 | ) | (12,427 | ) | ||||||
| Net Loans | 992,924 | 828,498 | ||||||||
| Premises and equipment, net | 23,567 | 23,025 | ||||||||
| Other real estate owned, net | 2,184 | 2,119 | ||||||||
| Goodwill | 43,872 | 39,043 | ||||||||
| Core deposit intangibles, net | 2,683 | 2,045 | ||||||||
| Bank owned life insurance | 17,658 | 15,193 | ||||||||
| Accrued interest receivable and other assets | 19,737 | 19,567 | ||||||||
| Total assets | $ | 1,546,889 | $ | 1,346,492 | ||||||
| Liabilities | ||||||||||
| Demand deposits -- noninterest-bearing | $ | 322,442 | $ | 254,458 | ||||||
| Demand deposits -- interest-bearing | 227,030 | 193,432 | ||||||||
| Money market deposits | 200,495 | 174,000 | ||||||||
| Savings deposits | 115,383 | 90,130 | ||||||||
| Time deposits | 397,310 | 363,817 | ||||||||
| Total deposits | 1,262,660 | 1,075,837 | ||||||||
| Customer repurchase agreements | 40,611 | 53,480 | ||||||||
| Long-term borrowings | 9,958 | 9,935 | ||||||||
| Junior subordinated debt | 27,622 | 27,521 | ||||||||
| Accrued interest payable and other liabilities | 8,203 | 5,939 | ||||||||
| Total liabilities | 1,349,054 | 1,172,712 | ||||||||
| Shareholders' equity | ||||||||||
| Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | - |
- |
||||||||
| Common stock, $1 par, 20,000,000 shares authorized, 8,622,007 shares outstanding at December 31, 2015 and 7,873,474 shares outstanding at December 31, 2014 | 8,605 |
7,872 |
||||||||
| Capital in excess of par value | 75,375 | 57,650 | ||||||||
| Retained earnings | 111,565 | 104,594 | ||||||||
| Accumulated other comprehensive income, net | 2,290 | 3,664 | ||||||||
| Total shareholders' equity | 197,835 | 173,780 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,546,889 | $ | 1,346,492 | ||||||
| American National Bankshares Inc. | |||||||||||||||
| Consolidated Statements of Income | |||||||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31 | December 31 | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| Interest and Dividend Income: | |||||||||||||||
| Interest and fees on loans | $ | 11,849 | $ | 9,859 | $ | 46,860 | $ | 39,257 | |||||||
| Interest on federal funds sold | - | - | 6 | - | |||||||||||
| Interest and dividends on securities: | |||||||||||||||
| Taxable | 1,051 | 925 | 4,072 | 3,775 | |||||||||||
| Tax-exempt | 882 | 954 | 3,681 | 3,971 | |||||||||||
| Dividends | 88 | 75 | 346 | 296 | |||||||||||
| Other interest income | 81 | 56 | 204 | 156 | |||||||||||
| Total interest and dividend income | 13,951 | 11,869 | 55,169 | 47,455 | |||||||||||
| Interest Expense: | |||||||||||||||
| Interest on deposits | 1,228 | 1,144 | 4,811 | 4,654 | |||||||||||
| Interest on short-term borrowings | 2 | 1 | 9 | 9 | |||||||||||
| Interest on long-term borrowings | 81 | 82 | 324 | 325 | |||||||||||
| Interest on junior subordinated debt | 196 | 187 | 760 | 742 | |||||||||||
| Total interest expense | 1,507 | 1,414 | 5,904 | 5,730 | |||||||||||
| Net Interest Income | 12,444 | 10,455 | 49,265 | 41,725 | |||||||||||
| Provision for loan losses | 250 | 250 | 950 | 400 | |||||||||||
| Net Interest Income After Provision for Loan Losses | 12,194 | 10,205 | 48,315 | 41,325 | |||||||||||
| Noninterest Income: | |||||||||||||||
| Trust fees | 972 | 1,065 | 3,935 | 4,196 | |||||||||||
| Service charges on deposit accounts | 523 | 450 | 2,066 | 1,735 | |||||||||||
| Other fees and commissions | 590 | 487 | 2,377 | 1,903 | |||||||||||
| Mortgage banking income | 333 | 246 | 1,320 | 1,126 | |||||||||||
| Securities gains (losses), net | 314 | 1 | 867 | 505 | |||||||||||
| Other | 1,086 | 543 | 2,722 | 1,711 | |||||||||||
| Total noninterest income | 3,818 | 2,792 | 13,287 | 11,176 | |||||||||||
| Noninterest Expense: | |||||||||||||||
| Salaries | 3,920 | 3,798 | 16,554 | 14,688 | |||||||||||
| Employee benefits | 1,096 | 367 | 4,311 | 2,988 | |||||||||||
| Occupancy and equipment | 1,135 | 948 | 4,425 | 3,727 | |||||||||||
| FDIC assessment | 185 | 161 | 750 | 647 | |||||||||||
| Bank franchise tax | 223 | 232 | 898 | 901 | |||||||||||
| Core deposit intangible amortization | 300 | 226 | 1,201 | 1,114 | |||||||||||
| Data processing | 414 | 394 | 1,725 | 1,448 | |||||||||||
| Software | 308 | 274 | 1,158 | 1,019 | |||||||||||
| Other real estate owned, net | 39 | 92 | 99 | 240 | |||||||||||
| Merger related expenses | 50 | 512 | 1,998 | 780 | |||||||||||
| Other | 1,796 | 1,939 | 7,424 | 7,006 | |||||||||||
| Total noninterest expense | 9,466 | 8,943 | 40,543 | 34,558 | |||||||||||
| Income Before Income Taxes | 6,546 | 4,054 | 21,059 | 17,943 | |||||||||||
| Income Taxes | 1,939 | 1,164 | 6,020 | 5,202 | |||||||||||
| Net Income | $ | 4,607 | $ | 2,890 | $ | 15,039 | $ | 12,741 | |||||||
| Net Income Per Common Share: | |||||||||||||||
| Basic | $ | 0.53 | $ | 0.37 | $ | 1.73 | $ | 1.62 | |||||||
| Diluted | $ | 0.53 | $ | 0.37 | $ | 1.73 | $ | 1.62 | |||||||
| Weighted Average Common Shares Outstanding: | |||||||||||||||
| Basic | 8,627,414 | 7,855,872 | 8,680,502 | 7,867,198 | |||||||||||
| Diluted | 8,634,570 | 7,866,111 | 8,688,648 | 7,877,576 | |||||||||||
| American National Bankshares Inc. | ||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||
| (In thousands, except share, ratio and | ||||||||||||||||||||||
| nonfinancial data, unaudited) | 4th Qtr | 3rd Qtr | 4th Qtr | YTD | YTD | |||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| EARNINGS | ||||||||||||||||||||||
| Interest income | $ | 13,951 | $ | 13,542 | $ | 11,869 | $ | 55,169 | $ | 47,455 | ||||||||||||
| Interest expense | 1,507 | 1,481 | 1,414 | 5,904 | 5,730 | |||||||||||||||||
| Net interest income | 12,444 | 12,061 | 10,455 | 49,265 | 41,725 | |||||||||||||||||
| Provision for loan losses | 250 | - | 250 | 950 | 400 | |||||||||||||||||
| Noninterest income | 3,818 | 3,055 | 2,792 | 13,287 | 11,176 | |||||||||||||||||
| Noninterest expense | 9,466 | 9,388 | 8,943 | 40,543 | 34,558 | |||||||||||||||||
| Income taxes | 1,939 | 1,691 | 1,164 | 6,020 | 5,202 | |||||||||||||||||
| Net income | 4,607 | 4,037 | 2,890 | 15,039 | 12,741 | |||||||||||||||||
| PER COMMON SHARE | ||||||||||||||||||||||
| Net income per share - basic | $ | 0.53 | $ | 0.47 | $ | 0.37 | $ | 1.73 | $ | 1.62 | ||||||||||||
| Net income per share - diluted | 0.53 | 0.47 | 0.37 | 1.73 | 1.62 | |||||||||||||||||
| Cash dividends paid | 0.24 | 0.23 | 0.23 | 0.93 | 0.92 | |||||||||||||||||
| Book value per share (a) | 22.95 | 22.81 | 22.07 | 22.95 | 22.07 | |||||||||||||||||
| Book value per share - tangible (a) (b) | 17.55 | 17.32 | 16.86 | 17.55 | 16.86 | |||||||||||||||||
| Closing market price | 25.61 | 23.45 | 24.81 | 25.61 | 24.81 | |||||||||||||||||
| FINANCIAL RATIOS | ||||||||||||||||||||||
| Return on average assets | 1.20 | % | 1.07 | % | 0.86 | % | 0.99 | % | 0.97 | % | ||||||||||||
| Return on average equity | 9.32 | 8.25 | 6.63 | 7.65 | 7.40 | |||||||||||||||||
| Return on average tangible equity (c) | 12.77 | 11.42 | 9.12 | 10.62 | 10.31 | |||||||||||||||||
| Average equity to average assets | 12.88 | 12.95 | 13.04 | 12.90 | 13.12 | |||||||||||||||||
| Tangible equity to tangible assets (b) | 10.08 | 10.18 | 10.16 | 10.08 | 10.16 | |||||||||||||||||
| Net interest margin, taxable equivalent | 3.68 | 3.64 | 3.59 | 3.70 | 3.66 | |||||||||||||||||
| Efficiency ratio (d) | 57.52 | 61.25 | 64.60 | 63.81 | 63.41 | |||||||||||||||||
| Effective tax rate | 29.62 | 29.52 | 28.71 | 28.59 | 28.99 | |||||||||||||||||
| PERIOD-END BALANCES | ||||||||||||||||||||||
| Securities | $ | 345,661 | $ | 363,614 | $ | 349,250 | $ | 345,661 | $ | 349,083 | ||||||||||||
| Loans held for sale | 3,266 | 2,998 | 616 | 3,266 | 616 | |||||||||||||||||
| Loans, net of unearned income | 1,005,525 | 980,984 | 840,925 | 1,005,525 | 840,925 | |||||||||||||||||
| Goodwill and other intangibles | 46,555 | 47,316 | 41,088 | 46,555 | 41,088 | |||||||||||||||||
| Assets | 1,546,894 | 1,512,437 | 1,346,492 | 1,546,894 | 1,346,492 | |||||||||||||||||
| Assets - tangible (b) | 1,500,339 | 1,465,121 | 1,305,404 | 1,500,339 | 1,305,404 | |||||||||||||||||
| Deposits | 1,262,660 | 1,226,521 | 1,075,837 | 1,262,660 | 1,075,837 | |||||||||||||||||
| Customer repurchase agreements | 40,611 | 43,579 | 53,480 | 40,611 | 53,480 | |||||||||||||||||
| Long-term borrowings | 37,580 | 37,549 | 37,456 | 37,580 | 37,456 | |||||||||||||||||
| Shareholders' equity | 197,835 | 196,451 | 173,780 | 197,835 | 173,780 | |||||||||||||||||
| Shareholders' equity - tangible (b) | 151,280 | 149,135 | 132,692 | 151,280 | 132,692 | |||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||
| Securities | $ | 349,116 | $ | 357,427 | $ | 331,785 | $ | 349,116 | $ | 338,468 | ||||||||||||
| Loans held for sale | 3,446 | 2,873 | 982 | 2,531 | 1,672 | |||||||||||||||||
| Loans, net of unearned income | 983,725 | 982,212 | 815,271 | 973,329 | 803,187 | |||||||||||||||||
| Interest-earning assets | 1,386,256 | 1,380,576 | 1,220,818 | 1,391,486 | 1,196,095 | |||||||||||||||||
| Goodwill and other intangibles | 47,193 | 47,446 | 41,222 | 47,575 | 41,620 | |||||||||||||||||
| Assets | 1,534,247 | 1,511,464 | 1,338,240 | 1,523,766 | 1,312,472 | |||||||||||||||||
| Assets - tangible (b) | 1,487,054 | 1,464,018 | 1,297,018 | 1,476,191 | 1,270,852 | |||||||||||||||||
| Interest-bearing deposits | 931,223 | 923,840 | 816,965 | 934,716 | 818,381 | |||||||||||||||||
| Deposits | 1,247,612 | 1,223,328 | 1,069,995 | 1,232,199 | 1,052,530 | |||||||||||||||||
| Customer repurchase agreements | 42,524 | 45,444 | 50,493 | 48,105 | 43,724 | |||||||||||||||||
| Long-term borrowings | 37,561 | 37,531 | 37,438 | 37,515 | 37,398 | |||||||||||||||||
| Shareholders' equity | 197,658 | 195,660 | 174,453 | 196,518 | 172,207 | |||||||||||||||||
| Shareholders' equity - tangible (b) | 150,465 | 148,214 | 133,231 | 148,943 | 130,587 | |||||||||||||||||
| American National Bankshares Inc. | ||||||||||||||||||||||
| Financial Highlights | ||||||||||||||||||||||
| (In thousands, except share, ratio and | ||||||||||||||||||||||
| nonfinancial data, unaudited) | 4th Qtr | 3rd Qtr | 4th Qtr | YTD | YTD | |||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
| CAPITAL | ||||||||||||||||||||||
| Weighted average shares outstanding - basic | 8,627,414 | 8,668,618 | 7,855,872 | 8,680,502 | 7,867,198 | |||||||||||||||||
| Weighted average shares outstanding - diluted | 8,634,570 | 8,676,571 | 7,866,111 | 8,688,648 | 7,877,576 | |||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||
| Beginning balance | $ | 12,611 | $ | 12,793 | $ | 12,620 | $ | 12,427 | $ | 12,600 | ||||||||||||
| Provision for loan losses | 250 | - | 250 | 950 | 400 | |||||||||||||||||
| Charge-offs | (317) | (253) | (566) | (1,200) | (964) | |||||||||||||||||
| Recoveries | 57 | 71 | 123 | 424 | 391 | |||||||||||||||||
| Ending balance | $ | 12,601 | $ | 12,611 | $ | 12,427 | $ | 12,601 | $ | 12,427 | ||||||||||||
| LOANS | ||||||||||||||||||||||
| Construction and land development | $ | 72,968 | $ | 68,692 | $ | 50,863 | $ | 72,968 | $ | 50,863 | ||||||||||||
| Commercial real estate | 428,932 | 424,404 | 391,472 | 428,932 | 391,472 | |||||||||||||||||
| Residential real estate | 221,688 | 219,415 | 175,293 | 221,688 | 175,293 | |||||||||||||||||
| Home equity | 98,449 | 98,249 | 91,075 | 98,449 | 91,075 | |||||||||||||||||
| Commercial and industrial | 177,481 | 164,025 | 126,981 | 177,481 | 126,981 | |||||||||||||||||
| Consumer | 6,007 | 6,199 | 5,241 | 6,007 | 5,241 | |||||||||||||||||
| Total | $ | 1,005,525 | $ | 980,984 | $ | 840,925 | $ | 1,005,525 | $ | 840,925 | ||||||||||||
| NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||||||||
| Nonperforming loans: | ||||||||||||||||||||||
| 90 days past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
| Nonaccrual | 5,205 | 5,360 | 4,112 | 5,205 | 4,112 | |||||||||||||||||
| Other real estate owned | 2,184 | 1,333 | 2,119 | 2,184 | 2,119 | |||||||||||||||||
| Nonperforming assets | $ | 7,389 | $ | 6,693 | $ | 6,231 | $ | 7,389 | $ | 6,231 | ||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||||
| Allowance for loan losses to total loans | 1.25 | % | 1.29 | % | 1.48 | % | 1.25 | % | 1.48 | % | ||||||||||||
| Allowance for loan losses to nonperforming loans | 242.09 |
235.28 |
302.21 |
242.09 |
302.21 |
|||||||||||||||||
| Nonperforming assets to total assets | 0.48 | 0.44 | 0.46 | 0.48 | 0.46 | |||||||||||||||||
| Nonperforming loans to total loans | 0.52 | 0.55 | 0.49 | 0.52 | 0.49 | |||||||||||||||||
| Annualized net charge-offs (recoveries) to average loans | 0.11 |
0.07 |
0.22 |
0.08 |
0.07 |
|||||||||||||||||
| OTHER DATA | ||||||||||||||||||||||
| Fiduciary assets at period-end (e) (f) | $ | 491,681 | $ | 486,173 | $ | 450,498 | $ | 491,681 | $ | 450,498 | ||||||||||||
| Retail brokerage assets at period-end (e) (f) | $ | 257,546 | $ | 247,258 | $ | 210,265 | $ | 257,546 | $ | 210,265 | ||||||||||||
| Number full-time equivalent employees (g) | 303 | 310 | 284 | 303 | 284 | |||||||||||||||||
| Number of full service offices | 25 | 25 | 24 | 25 | 24 | |||||||||||||||||
| Number of loan production offices | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||
| Number of ATM's | 33 | 34 | 31 | 33 | 31 | |||||||||||||||||
| Notes: | |
| (a) - Unvested restricted stock of 16,649 shares are not included in the calculation at 12-31-15. | |
| (b) - Excludes goodwill and other intangible assets. | |
| (c) - Excludes amortization expense, net of tax, of intangible assets. | |
| (d) - 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 excluding (i) gains or losses on securities and (ii) gains or losses on sale of premises and equipment. | |
| (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 December 31, 2015 and 2014 | ||||||||||||||||||||
| (in thousands, except rates) | ||||||||||||||||||||
| Interest | ||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | $ | 166,771 | $ | 122,414 | $ | 1,506 | $ | 1,340 | 3.58 | % | 4.34 | % | ||||||||
| Real estate | 814,502 | 689,167 | 10,245 | 8,436 | 5.03 | 4.90 | ||||||||||||||
| Consumer | 5,898 | 4,672 | 135 | 93 | 9.08 | 7.90 | ||||||||||||||
| Total loans | 987,171 | 816,253 | 11,886 | 9,869 | 4.81 | 4.83 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Federal agencies | 88,255 | 77,015 | 364 | 235 | 1.65 | 1.22 | ||||||||||||||
| Mortgage-backed & CMO's | 62,652 | 58,281 | 352 | 337 | 2.25 | 2.31 | ||||||||||||||
| State and municipal | 176,148 | 182,501 | 1,613 | 1,759 | 3.66 | 3.86 | ||||||||||||||
| Other | 16,970 | 13,988 | 144 | 115 | 3.39 | 3.29 | ||||||||||||||
| Total securities | 344,025 | 331,785 | 2,473 | 2,446 | 2.88 | 2.95 | ||||||||||||||
| Deposits in other banks | 74,449 | 72,780 | 81 | 56 | 0.43 | 0.31 | ||||||||||||||
| Total interest-earning assets | 1,405,645 | 1,220,818 | 14,440 | 12,371 | 4.11 | 4.05 | ||||||||||||||
| Non-earning assets | 128,602 | 117,422 | ||||||||||||||||||
| Total assets | $ | 1,534,247 | $ | 1,338,240 | ||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 223,724 | $ | 192,757 | 22 | 15 | 0.04 | 0.03 | ||||||||||||
| Money market | 197,230 | 176,353 | 65 | 56 | 0.13 | 0.13 | ||||||||||||||
| Savings | 111,742 | 89,648 | 14 | 12 | 0.05 | 0.05 | ||||||||||||||
| Time | 398,527 | 358,207 | 1,127 | 1,061 | 1.12 | 1.18 | ||||||||||||||
| Total deposits | 931,223 | 816,965 | 1,228 | 1,144 | 0.52 | 0.56 | ||||||||||||||
| Customer repurchase agreements | 42,524 | 50,493 | 2 | 1 | 0.02 | 0.01 | ||||||||||||||
| Long-term borrowings | 37,561 | 37,438 | 277 | 269 | 2.95 | 2.87 | ||||||||||||||
| Total interest-bearing liabilities | 1,011,308 | 904,896 | 1,507 | 1,414 | 0.59 | 0.62 | ||||||||||||||
| Noninterest bearing demand deposits | 316,389 | 253,030 | ||||||||||||||||||
| Other liabilities | 8,892 | 5,861 | ||||||||||||||||||
| Shareholders' equity | 197,658 | 174,453 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,534,247 | $ | 1,338,240 | ||||||||||||||||
| Interest rate spread | 3.52 | % | 3.43 | % | ||||||||||||||||
| Net interest margin | 3.68 | % | 3.59 | % | ||||||||||||||||
| Net interest income (taxable equivalent basis) | 12,933 | 10,957 | ||||||||||||||||||
| Less: Taxable equivalent adjustment | 489 | 502 | ||||||||||||||||||
| Net interest income | $ | 12,444 | $ | 10,455 | ||||||||||||||||
| Net Interest Income Analysis | ||||||||||||||||||||
| For the Years Ended December 31, 2015 and 2014 | ||||||||||||||||||||
| (in thousands, except yields and rates) | ||||||||||||||||||||
| Interest | ||||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| Loans: | ||||||||||||||||||||
| Commercial | $ | 156,646 | $ | 122,434 | $ | 6,893 | $ | 5,436 | 4.40 | % | 4.44 | % | ||||||||
| Real estate | 809,545 | 677,633 | 39,362 | 33,508 | 4.86 | 4.94 | ||||||||||||||
| Consumer | 9,669 | 4,792 | 730 | 354 | 7.55 | 7.39 | ||||||||||||||
| Total loans | 975,860 | 804,859 | 46,985 | 39,298 | 4.81 | 4.88 | ||||||||||||||
| Securities: | ||||||||||||||||||||
| Federal agencies | 88,384 | 74,390 | 1,364 | 852 | 1.54 | 1.15 | ||||||||||||||
| Mortgage-backed & CMO's | 61,741 | 61,377 | 1,346 | 1,453 | 2.18 | 2.37 | ||||||||||||||
| State and municipal | 183,208 | 187,595 | 6,746 | 7,307 | 3.68 | 3.90 | ||||||||||||||
| Other | 15,783 | 15,106 | 532 | 477 | 3.37 | 3.16 | ||||||||||||||
| Total securities | 349,116 | 338,468 | 9,988 | 10,089 | 2.86 | 2.98 | ||||||||||||||
| Federal funds sold | 5,230 | - | 6 | - | 0.11 | - | ||||||||||||||
| Deposits in other banks | 61,280 | 52,768 | 204 | 156 | 0.33 | 0.30 | ||||||||||||||
| Total interest-earning assets | 1,391,486 | 1,196,095 | 57,183 | 49,543 | 4.11 | 4.14 | ||||||||||||||
| Non-earning assets | 132,280 | 116,377 | ||||||||||||||||||
| Total assets | $ | 1,523,766 | $ | 1,312,472 | ||||||||||||||||
| Deposits: | ||||||||||||||||||||
| Demand | $ | 223,825 | $ | 183,994 | 82 | 71 | 0.04 | 0.04 | ||||||||||||
| Money market | 196,828 | 177,046 | 260 | 232 | 0.13 | 0.13 | ||||||||||||||
| Savings | 109,697 | 88,629 | 53 | 47 | 0.05 | 0.05 | ||||||||||||||
| Time | 404,366 | 368,712 | 4,416 | 4,304 | 1.09 | 1.17 | ||||||||||||||
| Total deposits | 934,716 | 818,381 | 4,811 | 4,654 | 0.51 | 0.57 | ||||||||||||||
| Customer repurchase agreements | 48,105 | 43,724 | 9 | 7 | 0.02 | 0.02 | ||||||||||||||
| Other short-term borrowings | 14 | 701 | - | 2 | 0.36 | 0.29 | ||||||||||||||
| Long-term borrowings | 37,515 | 37,398 | 1,084 | 1,067 | 2.89 | 2.85 | ||||||||||||||
| Total interest-bearing liabilities | 1,020,350 | 900,204 | 5,904 | 5,730 | 0.58 | 0.64 | ||||||||||||||
| Noninterest bearing demand deposits | 297,483 | 234,149 | ||||||||||||||||||
| Other liabilities | 9,415 | 5,912 | ||||||||||||||||||
| Shareholders' equity | 196,518 | 172,207 | ||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,523,766 | $ | 1,312,472 | ||||||||||||||||
| Interest rate spread | 3.53 | % | 3.50 | % | ||||||||||||||||
| Net interest margin | 3.69 | % | 3.66 | % | ||||||||||||||||
| Net interest income (taxable equivalent basis) | 51,279 | 43,813 | ||||||||||||||||||
| Less: Taxable equivalent adjustment | 2,014 | 2,088 | ||||||||||||||||||
| Net interest income | $ | 49,265 | $ | 41,725 | ||||||||||||||||