American National Bankshares Reports First Quarter Earnings


DANVILLE, Va., April 23, 2020 (GLOBE NEWSWIRE) -- American National Bankshares Inc. (NASDAQ: AMNB) (“American National” or the “Company”) today reported first quarter 2020 earnings of $8.5 million, or $0.77 per diluted common share. Those results compare to net income of $6.0 million, or $0.69 per diluted common share, during the same quarter in the prior year, and net income of $7.4 million, or $0.67 per diluted common share, recognized for the fourth quarter of 2019.

President and Chief Executive Officer Jeffrey V. Haley commented, “We are certainly pleased with the first quarter results, but have now entered unprecedented times in our nation with the onset of a global pandemic and resulting economic impacts. Our priorities have shifted somewhat to maintaining our high level of care for our customers, communities and our employees during this challenging time.”

“We have taken comprehensive steps to help each of these constituencies. For our customers, we’ve suspended foreclosures and provided payment deferrals, among other actions. Starting in March and continuing into last week, we have provided payment deferral assistance to over 450 customers with approximately $200 million in loan balances outstanding.  In addition, we are pleased to be one of approximately 5,000 financial institutions who successfully implemented the SBA’s Paycheck Protection Program, in order to assist our small business customers. For our employees, we’ve enabled approximately 65% of our workforce to work remotely. We have made certain accommodations to employees whose roles require them to come into the office, and have taken significant actions to help ensure their safety. We continue to provide financial support to our communities and maintain banking hours at branches throughout our footprint.

“I’m incredibly proud of the efforts our employees are making across American National to support our customers and each other. We will come out of this together and stronger.”  

First quarter 2020 highlights include:

  • Earnings produced a return on average assets of 1.37% for the first quarter of 2020, compared to 1.20% in the previous quarter and 1.29% for the same quarter in the prior year.
     
  • Net loans receivable increased $24.1 million for the quarter, or 5.3% annualized.
     
  • Net interest margin was 3.52% for the quarter, down from 3.62% in the fourth quarter of 2019 and up from 3.50% in the same quarter of the prior year (non-GAAP).   
     
  • Noninterest revenues increased $629 thousand, or 16.3%, when compared to the previous quarter, and increased $1.0 million, or 30.3%, to $4.5 million from $3.5 million in the same quarter in the prior year.
  • The first quarter provision for loan losses totaled $953 thousand, which compares to a provision of $462 thousand for the previous quarter, and $16 thousand in the same quarter in the prior year.
     
  • Nonperforming assets as a percentage of total assets remained level at 0.16% at March 31, 2020, compared with 0.15% at December 31, 2019, and up from 0.10% at March 31, 2019.
     
  • Annualized net charge-offs were 0.01% for the first quarter of 2020, compared to zero for the corresponding quarter in the prior year and down from 0.02% for the fourth quarter of 2019.

NET INTEREST INCOME

Net interest income for the first quarter of 2020 was $20.0 million, a decrease of $529 thousand, or 2.59%, from the prior quarter and an increase of $4.9 million, or 32.2%, from the first quarter of 2019. The year-over-year growth was positively impacted by higher earning asset balances and overall higher loan yields in large part associated with the Hometown Bankshares (“HomeTown”) acquisition which was consummated on April 1, 2019. The quarter-over-quarter decrease in net interest income was principally the result of lower yields on assets associated with the recent decreases in short term rates and market pricing pressure in the commercial portfolio offset in part by a decrease in funding costs. The fully taxable equivalent (“FTE”) net interest margin for the quarter was 3.52%, down from 3.62% in the prior quarter and up from 3.50% in the same period a year ago (non-GAAP).

The Company’s FTE net interest margin includes the impact of acquisition accounting fair value adjustments. During the first quarter of 2020, net accretion related to acquisition accounting amounted to $957 thousand, compared to $255 thousand for the same period in 2019 and $1.1 million in the prior quarter. Estimated remaining net accretion from acquisitions for the periods indicated is as follows (dollars in thousands):

For the remaining nine months of 2020 (estimated)$1,712
For the years ending (estimated): 
 2021 1,769
 2022 1,144
 2023 695
 2024 375
 2025 276
Thereafter 1,165

ASSET QUALITY/LOAN LOSS PROVISION

Nonperforming assets (“NPAs”) totaled $4.0 million as of March 31, 2020, up from $3.6 million at December 31, 2019 and up from $2.0 million at March 31, 2019. NPAs as a percentage of total assets were 0.16% at March 31, 2020, which compares to 0.15% at December 31, 2019 and 0.10% at March 31, 2019.

The provision for loan losses was $953 thousand for the first quarter of 2020, as compared to $462 thousand for the previous quarter and $16 thousand for the same period in the previous year. The increase over the prior periods is a direct result of early stage declines in economic factors associated with increases in unemployment claims and a decrease in retail sales in the wake of the COVID-19 Pandemic. It also reflects $197 thousand in impairments recorded during the quarter, compared to $218 thousand in the prior quarter and $15 thousand in the same quarter of prior year. The allowance for loan losses was $14.1 million at March 31, 2020, compared to $13.2 million at December 31, 2019 and $12.8 million at March 31, 2019. Annualized net charge-offs as a percentage of average loans outstanding was 0.01% for the first quarter of 2020, compared to 0.02% in the previous quarter and none for the same period in the prior year. The allowance as a percentage of loans held for investment was 0.76% at March 31, 2020, compared to 0.72% at December 31, 2019 and 0.94% at March 31, 2019.

American National continues to use an incurred loss model for its allowance methodology and has not implemented the new current expected credit losses standard (CECL). CECL incorporates an estimation of expected losses over the life of the loans instead of the current model which is an incurred loss model. The CECL implementation guidance was amended in October 2019 allowing for the deferral of CECL for smaller reporting companies.  American National qualified under this amendment and elected to defer the implementation until January 2023. 

DISASTER ASSISTANCE AND PAYCHECK PROTECTION PROGRAMS

American National has implemented a Disaster Assistance Program (DAP) and is participating in the Paycheck Protection Program (“PPP”) initiated by the U.S. Treasury on April 3, 2020. At March 31, 2020, American National has provided interest only and payment deferrals to over 450 customers on loan balances of approximately $200 million. With respect to the PPP program, American National has to date processed with U.S. Small Business Administration approval 1,321 applications for loans in excess of $228 million, representing 96% of applications received prior to the Treasury initial funding allocation of $349 billion reaching capacity and all of which occurred subsequent to March 31, 2020. From a funding perspective, the Company expects to utilize core and wholesale funding for liquidity needs related to the DAP loan program, and both the Federal Reserve discount window and newly created Payroll Protection Program Lending Facility for the PPP program.

NONINTEREST INCOME

Noninterest income increased $629 thousand to $4.5 million for the quarter ended March 31, 2020 from $3.9 million in the prior quarter and increased $1.0 million from the same period in the prior year. The first quarter of 2020 benefitted from gains on the sale of securities of $814 thousand, partially offset by a $188 thousand decrease in mortgage banking income from the prior quarter. The improvement from the prior quarter was also attributable to losses of $309 thousand in the fourth quarter of 2019 related to the write-down of premises and equipment in connection with an ATM replacement initiative. Increases in service charges on deposits, other fees and commissions, mortgage banking fees and securities gains primarily accounted for the increase over the same period in the prior year.

NONINTEREST EXPENSE

Noninterest expense for the first quarter of 2020 amounted to $13.3 million, down $1.7 million, or 11.3%, when compared to the $15.0 million for the previous quarter and up $2.4 million, or 22.0%, when compared to the same period in the previous year. The change as compared to the previous quarter was driven by reduced corporate incentive and stock compensation expense in the first quarter of 2020 while the fourth quarter of 2019 reflected merger costs of $460 thousand, incentive compensation costs associated with establishing the Raleigh, North Carolina loan production office, and additional other professional fees and data processing costs. The increase from the same period in the prior year is primarily related to the acquisition of HomeTown.

INCOME TAXES

The effective tax rate for the three months ended March 31, 2020 was 15.7%, compared to 15.6% for the prior quarter and 20.7% for the same period in the prior year. The decreased rates for the quarters ended March 31, 2020 and December 31, 2019 compared to the rates for the three months ended March 31, 2019 are a result of tax benefits recognized during both periods. As a result of the enactment of the CARES Act in the first quarter of 2020, the Company recognized a tax benefit for the net operating loss (‘NOL’) five-year carryback provision for the NOL acquired in the HomeTown merger.  An income tax benefit was realized for the difference between the current corporate income tax rate of 21% and the higher federal corporate tax rate of 35% prior to 2018. The lower effective tax rate in the fourth quarter of 2019 was primarily due to a change in the future effective rate assumption related to state apportionments which was prompted by the HomeTown acquisition.

ABOUT AMERICAN NATIONAL

American National is a multi-state bank holding company with total assets of approximately $2.5 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 26 banking offices. American National Bank also manages an additional $728 million of trust, investment and brokerage assets in its Trust and Investment Services Division. Additional information about American National and American National Bank is available on American National's website at www.amnb.com.

NON-GAAP FINANCIAL MEASURES

This release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). American National’s management uses these non-GAAP financial measures in its analysis of American National’s performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of American National’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. For a reconciliation of non-GAAP financial measures, see “Reconciliation of Non-GAAP Financial Measures” at the end of this release.

FORWARD-LOOKING STATEMENTS

Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current expectations and involve a number of assumptions. American National intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. American National’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could have a material effect on the operations and future prospects of American National include but are not limited to: (1) the impacts of the ongoing COVID-19 pandemic; (2) expected revenue synergies and cost savings from the recently completed merger with HomeTown may not be fully realized or realized within the expected timeframe; (3) changes in interest rates, general economic conditions, legislation and regulation, and monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury, Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System; (4) the quality and composition of the loan and securities portfolios, demand for loan products, deposit flows, competition, and demand for financial services in American National’s market areas; (5) the implementation of new technologies, and the ability to develop and maintain secure and reliable electronic systems; (6) accounting principles, policies, and guidelines; and (7) other risk factors detailed from time to time in filings made by American National with the Securities and Exchange Commission. American National undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
     Jeffrey W. Farrar
     Executive Vice President, COO & CFO
     (434)773-2274
     farrarj@amnb.com


American National Bankshares Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
Unaudited
     
  March 31
   2020   2019 
Assets    
Cash and due from banks $39,602  $28,912 
Interest-bearing deposits in other banks  69,968   41,949 
     
Equity securities, at fair value  -   2,069 
Securities available for sale, at fair value  342,769   324,289 
Restricted stock, at cost  8,682   5,299 
Loans held for sale  2,666   1,252 
     
Loans, net of unearned income  1,854,928   1,360,063 
  Less allowance for loan losses  (14,065)  (12,806)
  Net Loans  1,840,863   1,347,257 
     
Premises and equipment, net  39,632   26,663 
Other real estate owned, net  984   646 
Goodwill  85,048   43,872 
Core deposit intangibles, net  7,301   871 
Bank owned life insurance  27,970   19,047 
Accrued interest receivable and other assets  29,580   26,278 
     
  Total assets $2,495,065  $1,868,404 
     
     
Liabilities    
  Demand deposits -- noninterest-bearing $567,772  $425,579 
  Demand deposits -- interest-bearing  343,291   242,802 
  Money market deposits  524,234   379,668 
  Savings deposits  181,564   135,289 
  Time deposits  453,806   376,452 
  Total deposits  2,070,667   1,559,790 
     
  Customer repurchase agreements  42,114   35,945 
  Subordinated debt  7,513   - 
  Junior subordinated debt  28,054   27,953 
  Accrued interest payable and other liabilities  23,424   15,243 
  Total liabilities  2,171,772   1,638,931 
     
Shareholders' equity    
  Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding  -   - 
  Common stock, $1 par, 20,000,000 shares authorized, 10,957,502 shares outstanding at March 31, 2020 and 8,756,569 shares outstanding at March 31, 2019  10,898   8,705 
  Capital in excess of par value  153,817   78,738 
  Retained earnings  157,064   145,351 
  Accumulated other comprehensive income (loss), net  1,514   (3,321)
  Total shareholders' equity  323,293   229,473 
     
  Total liabilities and shareholders' equity $2,495,065  $1,868,404 
     


American National Bankshares Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Unaudited
     
  Three Months Ended
  March 31
   2020   2019
Interest and Dividend Income:    
  Interest and fees on loans $21,321  $15,638
  Interest and dividends on securities:    
  Taxable  2,037   1,821
  Tax-exempt  112   287
  Dividends  132   84
  Other interest income  264   266
  Total interest and dividend income  23,866   18,096
     
Interest Expense:    
  Interest on deposits  3,312   2,472
  Interest on short-term borrowings  129   172
  Interest on subordinated debt  122   -
  Interest on junior subordinated debt  384   384
  Total interest expense  3,947   3,028
     
Net Interest Income  19,919   15,068
  Provision for loan losses  953   16
     
  Net Interest Income After Provision for Loan Losses  18,966   15,052
     
Noninterest Income:    
  Trust fees  1,012   914
  Service charges on deposit accounts  721   594
  Other fees and commissions  941   708
  Mortgage banking income  549   406
  Securities gains, net  814   323
  Brokerage fees  211   147
  Income from Small Business Investment Companies 55   168
  Losses on premises and equipment, net  (82)  -
  Other  274   191
  Total noninterest income  4,495   3,451
     
Noninterest Expense:    
  Salaries  6,059   4,664
  Employee benefits  1,301   1,230
  Occupancy and equipment  1,366   1,084
  FDIC assessment  95   125
  Bank franchise tax  426   290
  Core deposit intangible amortization  427   55
  Data processing  763   532
  Software  356   324
  Other real estate owned, net  (9)  13
  Merger related expenses  -   451
  Other  2,550   2,161
  Total noninterest expense  13,334   10,929
     
 Income Before Income Taxes  10,127   7,574
 Income Taxes  1,585   1,571
Net Income $8,542  $6,003
     
Net Income Per Common Share:    
  Basic $0.77  $0.69
  Diluted $0.77  $0.69
Weighted Average Common Shares Outstanding:   
  Basic  11,025,185   8,745,174
  Diluted  11,031,310   8,745,723
     


American National Bankshares Inc.      
Financial Highlights      
Unaudited        
          
(Dollars in thousands, except per share data) 
    1st Qtr 4th Qtr 1st Qtr 
     2020   2019   2019  
EARNINGS       
  Interest income$ 23,866  $24,590  $18,096  
  Interest expense 3,947   4,142   3,028  
  Net interest income 19,919   20,448   15,068  
  Provision for loan losses 953   462   16  
  Noninterest income 4,495   3,866   3,451  
  Noninterest expense 13,334   15,037   10,929  
  Income taxes  1,585   1,374   1,571  
  Net income  8,542   7,441   6,003  
          
PER COMMON SHARE       
  Net income per share - basic$ 0.77  $0.67  $0.69  
  Net income per share - diluted 0.77   0.67   0.69  
  Cash dividends paid 0.27   0.27   0.25  
  Book value per share 29.50   28.93   26.21  
  Book value per share - tangible (a) 21.08   20.64   21.10  
  Closing market price 23.90   39.57   34.92  
          
FINANCIAL RATIOS      
  Return on average assets 1.37 % 1.20 % 1.29 %
  Return on average equity 10.56   9.31   10.69  
  Return on average tangible equity (a) 15.32   13.71   13.44  
  Average equity to average assets 12.99   12.88   12.06  
  Tangible equity to tangible assets (a) 9.61   9.57   10.13  
  Net interest margin, taxable equivalent 3.52   3.62   3.50  
  Efficiency ratio (a) 54.46   57.24   56.95  
  Effective tax rate 15.65   15.59   20.74  
          
PERIOD-END BALANCES      
  Securities $ 351,451  $387,825  $331,657  
  Loans held for sale 2,666   2,027   1,252  
  Loans, net  1,854,928   1,830,815   1,360,063  
  Goodwill and other intangibles 92,349   91,730   44,743  
  Assets   2,495,065   2,478,550   1,868,404  
  Assets - tangible (a) 2,402,716   2,386,820   1,823,661  
  Deposits  2,070,667   2,060,547   1,559,790  
  Customer repurchase agreements 42,114   40,475   35,945  
  Long-term borrowings 35,567   35,546   27,953  
  Shareholders' equity 323,293   320,258   229,473  
  Shareholders' equity - tangible (a) 230,944   228,528   184,730  
          
AVERAGE BALANCES      
  Securities (b) $ 369,730  $347,502  $343,834  
  Loans held for sale 3,156   4,991   1,830  
  Loans, net  1,829,125   1,810,744   1,352,521  
  Interest-earning assets 2,274,920   2,264,687   1,736,887  
  Goodwill and other intangibles 91,738   92,607   44,778  
  Assets   2,491,591   2,482,502   1,863,212  
  Assets - tangible (a) 2,399,853   2,389,895   1,818,434  
  Interest-bearing deposits 1,495,565   1,466,116   1,131,604  
  Deposits  2,069,927   2,066,435   1,551,413  
  Customer repurchase agreements 41,519   38,742   42,705  
  Other short-term borrowings 3   -   61  
  Long-term borrowings 35,554   35,537   27,937  
  Shareholders' equity 323,573   319,851   224,677  
  Shareholders' equity - tangible (a) 231,835   227,244   179,899  
          
American National Bankshares Inc.      
Financial Highlights      
Unaudited        
          
 (Dollars in thousands, except per share data) 
    1st Qtr 4th Qtr 1st Qtr 
     2020  2019   2019 
CAPITAL         
  Weighted average shares outstanding - basic    11,025,185   11,094,346   8,745,174  
  Weighted average shares outstanding - diluted    11,031,310   11,103,905   8,745,723  
          
ALLOWANCE FOR LOAN LOSSES      
  Beginning balance$ 13,152  $12,758  $12,805  
  Provision for loan losses 953   462   16  
  Charge-offs  (105)  (144)  (69) 
  Recoveries  65   76   54  
  Ending balance$ 14,065  $13,152  $12,806  
          
LOANS        
  Construction and land development$ 141,154  $137,920  $93,759  
  Commercial real estate 953,363   899,199   659,133  
  Residential real estate 301,284   324,315   212,665  
  Home equity  118,030   119,423   99,979  
  Commercial and industrial 331,507   339,077   289,301  
  Consumer  9,590   10,881   5,226  
  Total  $ 1,854,928  $1,830,815  $1,360,063  
          
NONPERFORMING ASSETS AT PERIOD-END     
  Nonperforming loans:      
  90 days past due and accruing$ 459  $361  $197  
  Nonaccrual  2,579   1,944   1,111  
  Other real estate owned 984   1,308   646  
  Nonperforming assets$ 4,022  $3,613  $1,954  
          
ASSET QUALITY RATIOS      
  Allowance for loan losses to total loans 0.76 % 0.72 % 0.94 %
  Allowance for loan losses to nonperforming loans 462.97   570.59   979.05  
  Nonperforming assets to total assets 0.16   0.15   0.10  
  Nonperforming loans to total loans 0.16   0.13   0.10  
  Annualized net charge-offs to average loans 0.01   0.02   0.00  
          
          
OTHER DATA       
  Fiduciary assets at period-end (c) (d)$ 492,850  $560,776  $533,063  
  Retail brokerage assets at period-end (c) (d)   $ 235,359  $317,262  $303,045  
  Number full-time equivalent employees (e)    355   355   299  
  Number of full service offices 26   26   24  
  Number of loan production offices 1   1   -  
  Number of ATMs 38   38   33  
          
          
Notes:        
          
  (a) - This financial measure is not calculated in accordance with GAAP. For a reconciliation of non-GAAP financial measures, see "Reconciliation of Non-GAAP Financial Measures" at the end of this release. 
  (b) - Average does not include unrealized gains and losses.
  (c) - Market value.
  (d) - Assets are not owned by American National and are not reflected in the consolidated balance sheet.
  (e) - Average for quarter.      
          


Net Interest Income Analysis
For the Three Months Ended March 31, 2020 and 2019
(Dollars in thousands)
Unaudited
                
        Interest     
    Average Balance Income/Expense (a) Yield/Rate 
                
     2020  2019  2020  2019 2020 2019 
Loans:             
Commercial$332,920 $265,578 $3,543 $2,891 4.28%4.41%
Real estate 1,489,319  1,083,800  17,663  12,716 4.74 4.69 
Consumer 10,042  4,973  157  75 6.29 6.12 
Total loans (b) 1,832,281  1,354,351  21,363  15,682 4.67 4.64 
             
Securities:            
U.S. Treasury 9,049  -  36  - 1.59 - 
Federal agencies & GSEs 103,311  139,465  576  850 2.23 2.44 
Mortgage-backed & CMOs 197,774  111,701  1,144  693 2.31 2.48 
State and municipal 40,825  78,597  288  538 2.82 2.74 
Other 18,771  14,071  264  178 5.63 5.06 
Total securities 369,730  343,834  2,308  2,259 2.50 2.63 
                
Deposits in other banks 72,909  38,702  264  266 1.46 2.79 
                
Total interest-earning assets 2,274,920  1,736,887  23,935  18,207 4.21 4.20 
                
Non-earning assets 216,671  126,325         
                
Total assets$2,491,591 $1,863,212         
                
Deposits:            
Demand$331,357 $238,430  123  14 0.15 0.02 
Money market 515,339  395,704  1,188  1,153 0.93 1.18 
Savings 178,896  134,060  53  10 0.12 0.03 
Time  469,973  363,410  1,948  1,295 1.67 1.45 
Total deposits 1,495,565  1,131,604  3,312  2,472 0.89 0.89 
                
Customer repurchase agreements  41,519  42,705  129  171 1.25 1.62 
Other short-term borrowings 3  61  -  1 1.01 6.56 
Long-term borrowings 35,554  27,937  506  384 5.69 5.50 
Total interest-bearing liabilities 1,572,641  1,202,307  3,947  3,028 1.01 1.02 
                
Noninterest bearing demand deposits  574,362  419,809         
Other liabilities 21,015  16,419         
Shareholders' equity 323,573  224,677         
Total liabilities and shareholders' equity$2,491,591 $1,863,212         
                
Interest rate spread        3.20%3.18%
Net interest margin        3.52%3.50%
                
Net interest income (taxable equivalent basis)      19,988  15,179     
Less: Taxable equivalent adjustment (c)      69  111     
Net interest income    $19,919 $15,068     
                
                
Notes:             
                
  (a) - Interest income includes net accretion/amortization of acquired loan fair value adjustments and the net accretion/amortization of deferred loan fees and costs. 
  (b) - Nonaccrual loans are included in the average balances. 
  (c) - A tax rate of 21% was used in adjusting interest on tax-exempt assets to a fully taxable equivalent basis. 


American National Bankshares Inc. 
Reconciliation of Non-GAAP Financial Measures 
Unaudited 
          
(Dollars in thousands, except per share data) 
    1st Qtr 4th Qtr 1st Qtr 
     2020  2019  2019 
EFFICIENCY RATIO      
  Noninterest expense$ 13,334  $15,037  $10,929  
  Add/subtract: gain/loss on sale of OREO 27   (3)  2  
  Subtract: core deposit intangible amortization    (427)  (437)  (55) 
  Subtract: merger related expenses -   (460)  (451) 
    $ 12,934  $14,137  $10,425  
          
  Net interest income$ 19,919  $20,448  $15,068  
  Tax equivalent adjustment 69   76   111  
  Noninterest income 4,495   3,866   3,451  
  Subtract: gain on securities (814)  (32)  (323) 
  Add: loss on fixed assets 82   338   -  
    $ 23,751  $24,696  $18,307  
          
  Efficiency ratio  54.46 % 57.24 % 56.95 %
          
TAX EQUIVALENT NET INTEREST INCOME     
  Non-GAAP measures:      
  Interest income - loans$ 21,363  $21,993  $15,682  
  Interest income - investments and other 2,572   2,673   2,525  
  Interest expense - deposits (3,312)  (3,496)  (2,472) 
  Interest expense - customer repurchase agreements  (129)  (134)  (171) 
  Interest expense - other short-term borrowings    -   -   (1) 
  Interest expense - long-term borrowings (506)  (512)  (384) 
  Total net interest income$ 19,988  $20,524  $15,179  
  Less non-GAAP measures:      
  Tax benefit on nontaxable interest - loans    (42)  (46)  (44) 
  Tax benefit on nontaxable interest - securities    (27)  (30)  (67) 
  GAAP measures$ 19,919  $20,448  $15,068  
          
          
RETURN ON AVERAGE TANGIBLE EQUITY     
  Return on average equity (GAAP basis) 10.56 % 9.31 % 10.69 %
  Impact of excluding average goodwill and other intangibles 4.76   4.40   2.75  
  Return on average tangible equity (non-GAAP)  15.32 % 13.71 % 13.44 %
          
TANGIBLE EQUITY TO TANGIBLE ASSETS     
  Equity to assets ratio (GAAP basis) 12.96 % 12.92 % 12.28 %
  Impact of excluding goodwill and other intangibles 3.35   3.35   2.15  
  Tangible equity to tangible assets ratio (non-GAAP)  9.61 % 9.57 % 10.13 %
          
TANGIBLE BOOK VALUE      
  Book value per share (GAAP basis)$ 29.50  $28.93  $26.21  
  Impact of excluding goodwill and other intangibles 8.42   8.29   5.11  
  Tangible book value per share (non-GAAP) $ 21.08  $20.64  $21.10