DANVILLE, VA--(Marketwired - Jul 17, 2014) - American National Bankshares Inc. (NASDAQ: AMNB)
- Q2 net income of $3.2 million and diluted EPS of $0.41
- Net interest margin of 3.68% for Q2 2014
- Nonperforming assets 0.60% of total assets
- Tangible common equity to tangible assets 10.37%
- Loan volume increase $18.4 million (2.3%) ytd and $29.7 million (3.8%) qtd
American National Bankshares Inc. (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced second quarter 2014 net income of $3,233,000 compared to $4,210,000 for the second quarter of 2013, a $977,000 or 23.2% decrease. Diluted earnings per share were $0.41 for the 2014 quarter and $0.53 for the comparable 2013 quarter. Net income for the second quarter of 2014 produced a return on average assets of 1.00%, a return on average equity of 7.53%, and a return on average tangible equity of 10.67%.
Net income for the first six months of 2014 was $6,683,000 compared to $8,361,000 for the comparable period of 2013, a $1,678,000 or 20.1% decrease. Diluted earnings per share were $0.85 for the 2014 period compared to $1.06 for the 2013 period.
Earnings for the 2014 and 2013 quarters and six month periods were favorably impacted by the July 2011 merger between American National and MidCarolina Financial Corporation ("MidCarolina"). However, as anticipated, the magnitude of that favorable impact is rapidly declining and that is the primary driver in the change in earnings for the quarter and six month period.
Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, reported, "We are pleased that over the past year our loan portfolio has seen growth and we are even more pleased that the momentum of that growth is increasing.
"At June 30, 2014, American National had $813,057,000 in loans compared to $794,045,000 at June 30, 2013, an increase of $19,012,000 or 2.4%.
"Compared to December 31, 2013, loans are up $18,386,000 or 2.3%.
"Compared to March 31, 2014, loans are up $29,688,000 or 3.8%.
"We consider the increase in loan volume and demand to be an indicator of slowly improving local and regional economic conditions.
"At June 30, 2014, American National had $1,035,800,000 in deposits compared to $1,046,394,000 at June 30, 2013, a decrease of $10,594,000 or 1.0%.
"Compared to December 31, 2013, deposits are down $21,875,000 or 2.1%.
"Compared to March 31, 2014, deposits are down $15,449,000 or 1.5%.
"The decline in deposits is related to lower levels of time deposits. We will adjust our pricing strategy appropriately with current market conditions and the liquidity requirements for our bank. Our primary focus on the liability side of the balance sheet is growing core deposits and their affiliated relationships. The never ending challenge in this ongoing low rate environment is to fund our bank in a cost effective and yet competitive manner. Our cost of deposits for the second quarter 2014 was 0.57%, down from 0.66% for the second quarter 2013.
"Our earnings for the second quarter were $3,233,000. This is down 23.2% from the same quarter of 2013. On a diluted per share basis earnings were $0.41 per share for the 2014 quarter compared to $0.53 per share for the 2013 quarter.
"There were a number of factors driving earnings for the quarter.
"The impact of the fair value accounting from the MidCarolina merger continues to be favorable, though decreasing significantly quarter to quarter. We had a pretax benefit of $293,000 for the second quarter of 2014, compared to $1,736,000 for the second quarter of 2013. This is mostly related to the acquired loan portfolio and we expect this benefit will continue to accrete rapidly to income.
"Loan loss provision expense was $150,000 for the 2014 quarter compared to $0 for the comparable 2013 quarter. The need for provision expense was related to the growth in the loan portfolio, the regular quarterly review of our impaired loans, and it was mitigated by continuing strong asset quality and some improving economic indicators.
"In noninterest income, there was very little overall change. Mortgage banking income fell substantially, but that decline was offset by improved trust income and securities gains.
"In noninterest expense, expenses for the second quarter of 2014 declined slightly from the second quarter of 2013. This modest improvement was related to a net foreclosed real estate gain in the 2014 quarter compared to a substantial net expense in the 2013 quarter."
Haley concluded, "We are very pleased about the loan growth in the second quarter of this year. But a quarter is a very short period of time and trends are best measured over years and decades. We will continue to grow this banking franchise, organically and through acquisitions, to the next level. We know the operating environment has been, is and will continue to be challenging, but we are seeing the beginnings of an economic recovery. We look forward to serving our customers and continuing to build and improve one of the best community banks in America."
Capital
American National's capital ratios remain strong and exceed all regulatory requirements.
Average shareholders' equity was 13.22% of average assets at June 30, 2014, compared to 12.76% at June 30, 2013.
Book value per common share was $21.95 at June 30, 2014, compared to $20.70 at June 30, 2013.
Tangible book value per common share was $16.65 at June 30, 2014, compared to $15.25 at June 30, 2013.
Tangible common equity to tangible assets was 10.37% at June 30, 2014, compared to 9.60% at June 30, 2013.
Credit Quality Measurements
Non-performing assets, consisting of $5,224,000 of non-performing loans and $2,622,000 of foreclosed real estate, represented 0.60% of total assets at June 30, 2014, compared to 0.88% of total assets at June 30, 2013.
Annualized net charge-offs for the second quarter of 2014 were zero basis points (0.00%) of average loans, compared to net recoveries of seven basis points (0.07%) for the second quarter of 2013.
Net Interest Income
Net interest income before provision for loan losses decreased to $10,351,000 in the second quarter of 2014 from $11,693,000 in the second quarter of 2013, a decrease of $1,342,000 or 11.5%.
For the 2014 quarter, net interest margin was 3.68% compared to 4.16% for the same quarter in 2013, a decrease of 48 basis points (0.48%).
The decline in net interest income and net interest margin was driven by falling yields on earning assets and lower accretion income. It was partially mitigated by reduced cost of interest bearing liabilities.
Provision expense
Provision expense for the second quarter of 2014 was $150,000 compared to $0 for the second quarter of 2013.
The primary driver for this increase was the second quarter net loan volume increase of $29.7 million or 3.8%. It was mitigated by continuing high asset quality and improving economic conditions.
The allowance for loan losses as a percentage of total loans was 1.57% at June 30, 2014, compared to 1.59% at December 31, 2013, and 1.60% at June 30, 2013. The gradual decrease in the allowance was driven by improvement in loss history combined with improving qualitative factors, including strong asset quality metrics and some improvement in local and national economic factors.
Noninterest Income
Noninterest income totaled $2,700,000 in the second quarter of 2014, compared with $2,686,000 in the second quarter of 2013, an increase of $14,000 or 0.5%.
The largest negative factor impacting the change was a $256,000 or 48.2% decline in mortgage banking income. This reduction was directly related to changes in the overall market demand for mortgage loans. It was basically offset by increases in trust fee income and securities gains.
Noninterest Expense
Noninterest expense totaled $8,365,000 in the second quarter of 2014, compared to $8,428,000 in the second quarter of 2013, a decrease of $63,000 or 0.7%.
The major driver for this slight decrease in noninterest expense was a $202,000 or 104.7% improvement in net foreclosed real estate expense.
About American National
American National Bankshares Inc. is a multi-state bank holding company with total assets of approximately $1.3 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 southern and central Virginia and north central North Carolina with 25 banking offices and two loan production offices. American National Bank and Trust Company also manages an additional $648 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 Bankshares Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
| American National Bankshares Inc. and Subsidiaries | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (Dollars in thousands, except share and per share data) | ||||||||||
| Unaudited | ||||||||||
| June 30 | ||||||||||
| ASSETS | 2014 | 2013 | ||||||||
| Cash and due from banks | $ | 21,295 | $ | 18,994 | ||||||
| Interest-bearing deposits in other banks | 22,948 | 37,720 | ||||||||
| Securities available for sale, at fair value | 349,719 | 340,135 | ||||||||
| Restricted stock, at cost | 5,064 | 4,880 | ||||||||
| Loans held for sale | 118 | 4,098 | ||||||||
| Loans | 813,057 | 794,045 | ||||||||
| Less allowance for loan losses | (12,763 | ) | (12,676 | ) | ||||||
| Net Loans | 800,294 | 781,369 | ||||||||
| Premises and equipment, net | 23,083 | 24,269 | ||||||||
| Other real estate owned, net | 2,622 | 5,569 | ||||||||
| Goodwill | 39,043 | 39,043 | ||||||||
| Core deposit intangibles, net | 2,498 | 3,819 | ||||||||
| Bank owned life insurance | 14,945 | 14,495 | ||||||||
| Accrued interest receivable and other assets | 19,019 | 19,626 | ||||||||
| Total assets | $ | 1,300,648 | $ | 1,294,017 | ||||||
| Liabilities | ||||||||||
| Demand deposits -- noninterest-bearing | $ | 228,588 | $ | 213,123 | ||||||
| Demand deposits -- interest-bearing | 189,700 | 169,204 | ||||||||
| Money market deposits | 165,090 | 173,696 | ||||||||
| Savings deposits | 88,539 | 84,489 | ||||||||
| Time deposits | 363,883 | 405,882 | ||||||||
| Total deposits | 1,035,800 | 1,046,394 | ||||||||
| Short-term borrowings: | ||||||||||
| Customer repurchase agreements | 38,420 | 41,972 | ||||||||
| Other short-term borrowings | 12,000 | - | ||||||||
| Long-term borrowings | 9,924 | 10,015 | ||||||||
| Trust preferred capital notes | 27,470 | 27,368 | ||||||||
| Accrued interest payable and other liabilities | 4,951 | 5,332 | ||||||||
| Total liabilities | 1,128,565 | 1,131,081 | ||||||||
| Shareholders' equity | ||||||||||
| Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | - | - | ||||||||
| Common stock, $1 par, 20,000,000 shares authorized, 7,840,132 shares outstanding at June 30, 2014 and 7,872,250 shares outstanding at June 30, 2013 | 7,840 | 7,872 | ||||||||
| Capital in excess of par value | 56,944 | 57,581 | ||||||||
| Retained earnings | 102,152 | 95,333 | ||||||||
| Accumulated other comprehensive income, net | 5,147 | 2,150 | ||||||||
| Total shareholders' equity | 172,083 | 162,936 | ||||||||
| Total liabilities and shareholders' equity | $ | 1,300,648 | $ | 1,294,017 | ||||||
| American National Bankshares Inc. and Subsidiaries | |||||||||||||||
| Consolidated Statements of Income | |||||||||||||||
| (Dollars in thousands, except share and per share data) | |||||||||||||||
| Unaudited | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30 | June 30 | ||||||||||||||
| 2014 | 2013 | 2014 | 2013 | ||||||||||||
| Interest and Dividend Income: | |||||||||||||||
| Interest and fees on loans | $ | 9,687 | $ | 11,358 | $ | 19,534 | $ | 22,753 | |||||||
| Interest and dividends on securities: | |||||||||||||||
| Taxable | 968 | 851 | 1,932 | 1,729 | |||||||||||
| Tax-exempt | 1,016 | 1,045 | 2,051 | 2,097 | |||||||||||
| Dividends | 74 | 54 | 149 | 109 | |||||||||||
| Other interest income | 35 | 39 | 68 | 68 | |||||||||||
| Total interest and dividend income | 11,780 | 13,347 | 23,734 | 26,756 | |||||||||||
| Interest Expense: | |||||||||||||||
| Interest on deposits | 1,161 | 1,369 | 2,390 | 2,805 | |||||||||||
| Interest on short-term borrowings | 2 | 14 | 4 | 35 | |||||||||||
| Interest on long-term borrowings | 81 | 82 | 161 | 164 | |||||||||||
| Interest on trust preferred capital notes | 185 | 189 | 369 | 377 | |||||||||||
| Total interest expense | 1,429 | 1,654 | 2,924 | 3,381 | |||||||||||
| Net Interest Income | 10,351 | 11,693 | 20,810 | 23,375 | |||||||||||
| Provision for loan losses | 150 | - | 150 | 294 | |||||||||||
| Net Interest Income After Provision for Loan Losses | 10,201 | 11,693 | 20,660 | 23,081 | |||||||||||
| Noninterest Income: | |||||||||||||||
| Trust fees | 1,017 | 944 | 2,139 | 1,532 | |||||||||||
| Service charges on deposit accounts | 431 | 429 | 844 | 838 | |||||||||||
| Other fees and commissions | 493 | 463 | 937 | 922 | |||||||||||
| Mortgage banking income | 275 | 531 | 538 | 1,249 | |||||||||||
| Securities gains, net | 150 | 1 | 189 | 199 | |||||||||||
| Other | 334 | 318 | 756 | 716 | |||||||||||
| Total noninterest income | 2,700 | 2,686 | 5,403 | 5,456 | |||||||||||
| Noninterest Expense: | |||||||||||||||
| Salaries | 3,638 | 3,503 | 7,176 | 6,942 | |||||||||||
| Employee benefits | 847 | 867 | 1,822 | 1,766 | |||||||||||
| Occupancy and equipment | 910 | 872 | 1,846 | 1,788 | |||||||||||
| FDIC assessment | 165 | 161 | 329 | 322 | |||||||||||
| Bank franchise tax | 231 | 185 | 453 | 372 | |||||||||||
| Core deposit intangible amortization | 330 | 421 | 661 | 841 | |||||||||||
| Data processing | 345 | 310 | 693 | 587 | |||||||||||
| Software | 235 | 249 | 497 | 461 | |||||||||||
| Foreclosed real estate, net | (9 | ) | 193 | 7 | 436 | ||||||||||
| Other | 1,673 | 1,667 | 3,304 | 3,231 | |||||||||||
| Total noninterest expense | 8,365 | 8,428 | 16,788 | 16,746 | |||||||||||
| Income Before Income Taxes | 4,536 | 5,951 | 9,275 | 11,791 | |||||||||||
| Income Taxes | 1,303 | 1,741 | 2,592 | 3,430 | |||||||||||
| Net Income | $ | 3,233 | $ | 4,210 | $ | 6,683 | $ | 8,361 | |||||||
| Net Income Per Common Share: | |||||||||||||||
| Basic | $ | 0.41 | $ | 0.54 | $ | 0.85 | $ | 1.06 | |||||||
| Diluted | $ | 0.41 | $ | 0.53 | $ | 0.85 | $ | 1.06 | |||||||
| Average Common Shares Outstanding: | |||||||||||||||
| Basic | 7,872,079 | 7,867,222 | 7,886,232 | 7,862,719 | |||||||||||
| Diluted | 7,879,854 | 7,876,969 | 7,896,541 | 7,872,351 | |||||||||||
| American National Bankshares Inc. and Subsidiaries | ||||||||||||||||
| Financial Highlights | ||||||||||||||||
| (In thousands, except share, ratio and | ||||||||||||||||
| nonfinancial data, unaudited) | 2nd Qtr | 1st Qtr | 2nd Qtr | YTD | YTD | |||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
| EARNINGS | ||||||||||||||||
| Interest income | $ | 11,780 | $ | 11,954 | $ | 13,347 | $ | 23,734 | $ | 26,756 | ||||||
| Interest expense | 1,429 | 1,495 | 1,654 | 2,924 | 3,381 | |||||||||||
| Net interest income | 10,351 | 10,459 | 11,693 | 20,810 | 23,375 | |||||||||||
| Provision for loan losses | 150 | - | - | 150 | 294 | |||||||||||
| Noninterest income | 2,700 | 2,703 | 2,686 | 5,403 | 5,456 | |||||||||||
| Noninterest expense | 8,365 | 8,423 | 8,428 | 16,788 | 16,746 | |||||||||||
| Income taxes | 1,303 | 1,289 | 1,741 | 2,592 | 3,430 | |||||||||||
| Net income | 3,233 | 3,450 | 4,210 | 6,683 | 8,361 | |||||||||||
| PER COMMON SHARE | ||||||||||||||||
| Earnings per share - basic | $ | 0.41 | $ | 0.44 | $ | 0.54 | $ | 0.85 | $ | 1.06 | ||||||
| Earnings per share - diluted | 0.41 | 0.44 | 0.53 | 0.85 | 1.06 | |||||||||||
| Cash dividends paid | 0.23 | 0.23 | 0.23 | 0.46 | 0.46 | |||||||||||
| Book value per share | 21.95 | 21.57 | 20.70 | 21.95 | 20.70 | |||||||||||
| Book value per share - tangible (a) | 16.65 | 16.27 | 15.25 | 16.65 | 15.25 | |||||||||||
| Closing market price | 21.73 | 23.52 | 23.24 | 21.73 | 23.24 | |||||||||||
| FINANCIAL RATIOS | ||||||||||||||||
| Return on average assets | 1.00 | % | 1.06 | % | 1.29 | % | 1.03 | % | 1.29 | % | ||||||
| Return on average equity | 7.53 | 8.12 | 10.14 | 7.82 | 10.11 | |||||||||||
| Return on average tangible equity (b) | 10.67 | 11.54 | 14.66 | 11.10 | 14.68 | |||||||||||
| Average equity to average assets | 13.22 | 13.05 | 12.76 | 13.14 | 12.72 | |||||||||||
| Tangible equity to tangible assets (a) | 10.37 | 10.23 | 9.60 | 10.37 | 9.60 | |||||||||||
| Net interest margin, taxable equivalent | 3.68 | 3.71 | 4.16 | 3.70 | 4.18 | |||||||||||
| Efficiency ratio (e) | 62.87 | 61.82 | 55.72 | 62.34 | 55.73 | |||||||||||
| Effective tax rate | 28.73 | 27.20 | 29.26 | 27.95 | 29.09 | |||||||||||
| PERIOD-END BALANCES | ||||||||||||||||
| Securities | $ | 354,783 | $ | 349,123 | $ | 345,015 | $ | 354,783 | $ | 345,015 | ||||||
| Loans held for sale | 118 | 1,389 | 4,098 | 118 | 4,098 | |||||||||||
| Loans, net of unearned income | 813,057 | 783,369 | 794,045 | 813,057 | 794,045 | |||||||||||
| Goodwill and other intangibles | 41,541 | 41,871 | 42,862 | 41,541 | 42,862 | |||||||||||
| Assets | 1,300,648 | 1,299,802 | 1,294,017 | 1,300,648 | 1,294,017 | |||||||||||
| Assets - tangible (a) | 1,259,107 | 1,257,931 | 1,251,155 | 1,259,107 | 1,251,155 | |||||||||||
| Deposits | 1,035,800 | 1,051,249 | 1,046,394 | 1,035,800 | 1,046,394 | |||||||||||
| Customer repurchase agreements | 38,420 | 34,153 | 41,972 | 38,420 | 41,972 | |||||||||||
| Other short-term borrowings | 12,000 | - | - | 12,000 | - | |||||||||||
| Long-term borrowings | 37,394 | 37,363 | 37,383 | 37,394 | 37,383 | |||||||||||
| Shareholders' equity | 172,083 | 170,499 | 162,936 | 172,083 | 162,936 | |||||||||||
| Shareholders' equity - tangible (a) | 130,542 | 128,628 | 120,074 | 130,542 | 120,074 | |||||||||||
| AVERAGE BALANCES | ||||||||||||||||
| Securities | $ | 346,726 | $ | 345,152 | $ | 335,246 | $ | 345,446 | $ | 330,821 | ||||||
| Loans held for sale | 1,685 | 2,032 | 4,181 | 1,858 | 6,532 | |||||||||||
| Loans, net of unearned income | 793,060 | 788,419 | 791,292 | 790,752 | 786,844 | |||||||||||
| Interest-earning assets | 1,182,559 | 1,186,904 | 1,177,536 | 1,184,172 | 1,174,496 | |||||||||||
| Goodwill and other intangibles | 41,738 | 42,077 | 43,124 | 41,907 | 43,337 | |||||||||||
| Assets | 1,299,535 | 1,302,639 | 1,302,491 | 1,301,078 | 1,299,388 | |||||||||||
| Assets - tangible (a) | 1,257,797 | 1,260,562 | 1,259,367 | 1,259,171 | 1,256,051 | |||||||||||
| Interest-bearing deposits | 820,342 | 830,229 | 828,844 | 825,258 | 826,347 | |||||||||||
| Deposits | 1,043,479 | 1,051,614 | 1,045,444 | 1,047,524 | 1,041,810 | |||||||||||
| Customer repurchase agreements | 40,720 | 37,797 | 47,081 | 39,267 | 48,679 | |||||||||||
| Other short-term borrowings | 571 | - | - | 287 | - | |||||||||||
| Long-term borrowings | 37,376 | 37,373 | 37,393 | 37,374 | 37,396 | |||||||||||
| Shareholders' equity | 171,784 | 170,046 | 166,150 | 170,920 | 165,339 | |||||||||||
| Shareholders' equity - tangible (a) | 130,046 | 127,969 | 123,026 | 129,013 | 122,002 | |||||||||||
| American National Bankshares Inc. and Subsidiaries | ||||||||||||||||
| Financial Highlights | ||||||||||||||||
| (In thousands, except share, ratio and | ||||||||||||||||
| nonfinancial data, unaudited) | 2nd Qtr | 1st Qtr | 2nd Qtr | YTD | YTD | |||||||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
| CAPITAL | ||||||||||||||||
| Average shares outstanding - basic | 7,872,079 | 7,904,759 | 7,867,222 | 7,886,232 | 7,862,719 | |||||||||||
| Average shares outstanding - diluted | 7,879,854 | 7,917,601 | 7,876,969 | 7,896,541 | 7,872,351 | |||||||||||
| ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||
| Beginning balance | $ | 12,614 | $ | 12,600 | $ | 12,528 | $ | 12,600 | $ | 12,118 | ||||||
| Provision for loan losses | 150 | 0 | - | 150 | 294 | |||||||||||
| Charge-offs | (95 | ) | (73 | ) | (180 | ) | (168 | ) | (467 | ) | ||||||
| Recoveries | 94 | 87 | 328 | 181 | 731 | |||||||||||
| Ending balance | $ | 12,763 | $ | 12,614 | $ | 12,676 | $ | 12,763 | $ | 12,676 | ||||||
| LOANS | ||||||||||||||||
| Construction and land development | $ | 50,856 | $ | 40,458 | $ | 44,029 | $ | 50,856 | $ | 44,029 | ||||||
| Commercial real estate | 363,657 | 358,362 | 354,323 | 363,657 | 354,323 | |||||||||||
| Residential real estate | 175,387 | 170,517 | 168,965 | 175,387 | 168,965 | |||||||||||
| Home equity | 89,725 | 89,081 | 89,688 | 89,725 | 89,688 | |||||||||||
| Commercial and industrial | 128,228 | 119,042 | 130,721 | 128,228 | 130,721 | |||||||||||
| Consumer | 5,204 | 5,909 | 6,319 | 5,204 | 6,319 | |||||||||||
| Total | $ | 813,057 | $ | 783,369 | $ | 794,045 | $ | 813,057 | $ | 794,045 | ||||||
| NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||
| Nonperforming loans: | ||||||||||||||||
| 90 days past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||
| Nonaccrual | 5,224 | 5,557 | 5,828 | 5,224 | 5,828 | |||||||||||
| Foreclosed real estate | 2,622 | 3,233 | 5,569 | 2,622 | 5,569 | |||||||||||
| Nonperforming assets | $ | 7,846 | $ | 8,790 | $ | 11,397 | $ | 7,846 | $ | 11,397 | ||||||
| ASSET QUALITY RATIOS | ||||||||||||||||
| Allowance for loan losses to total loans | 1.57 | 1.61 | 1.60 | 1.57 | 1.60 | |||||||||||
| Allowance for loan losses to nonperforming loans | 244.31 | 226.99 | 217.50 | 244.31 | 217.50 | |||||||||||
| Nonperforming assets to total assets | 0.60 | 0.68 | 0.88 | 0.60 | 0.88 | |||||||||||
| Nonperforming loans to total loans | 0.64 | 0.71 | 0.73 | 0.64 | 0.73 | |||||||||||
| Annualized net charge-offs (recoveries) to average loans | 0.00 | % | (0.01 | )% | (0.07 | )% | 0.00 | % | (0.07 | )% | ||||||
| OTHER DATA | ||||||||||||||||
| Fiduciary assets at period-end (c) | $ | 450,352 | $ | 435,635 | $ | 417,861 | $ | 450,352 | $ | 417,861 | ||||||
| Retail brokerage assets at period-end (c) | $ | 197,625 | $ | 189,130 | $ | 167,785 | $ | 197,625 | $ | 167,785 | ||||||
| Number full-time equivalent employees (d) | 291 | 292 | 292 | 291 | 292 | |||||||||||
| Number of full service offices | 25 | 25 | 25 | 25 | 25 | |||||||||||
| Number of loan production offices | 2 | 2 | 2 | 2 | 2 | |||||||||||
| Number of ATM's | 31 | 31 | 31 | 31 | 31 | |||||||||||
| Notes: |
| (a) - Excludes goodwill and other intangible assets |
| (b) - Excludes amortization expense, net of tax, of intangible assets |
| (c) - Market value |
| (d) - Average for quarter |
| (e) - 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 (a) gains or losses on securities and (b) gains or losses on sale of premises and equipment. |
| Net Interest Income Analysis | |||||||||||||||||||
| For the Three Months Ended June 30, 2014 and 2013 | |||||||||||||||||||
| (in thousands, except rates) | |||||||||||||||||||
| Interest | |||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | |||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | $ | 120,216 | $ | 132,381 | $ | 1,285 | $ | 1,605 | 4.29 | % | 4.86 | % | |||||||
| Real estate | 669,537 | 656,995 | 8,325 | 9,682 | 4.97 | 5.89 | |||||||||||||
| Consumer | 4,992 | 6,097 | 87 | 102 | 6.99 | 6.71 | |||||||||||||
| Total loans | 794,745 | 795,473 | 9,697 | 11,389 | 4.88 | 5.73 | |||||||||||||
| Securities: | |||||||||||||||||||
| Federal agencies & GSEs | 79,284 | 53,349 | 227 | 126 | 1.15 | 0.94 | |||||||||||||
| Mortgage-backed & CMOs | 62,356 | 76,999 | 368 | 338 | 2.36 | 1.76 | |||||||||||||
| State and municipal | 190,821 | 191,536 | 1,866 | 1,927 | 3.91 | 4.02 | |||||||||||||
| Other | 14,265 | 13,362 | 121 | 95 | 3.39 | 2.84 | |||||||||||||
| Total securities | 346,726 | 335,246 | 2,582 | 2,486 | 2.98 | 2.97 | |||||||||||||
| Deposits in other banks | 41,088 | 46,817 | 35 | 39 | 0.34 | 0.33 | |||||||||||||
| Total interest-earning assets | 1,182,559 | 1,177,536 | 12,314 | 13,914 | 4.17 | 4.73 | |||||||||||||
| Non-earning assets | 116,976 | 124,955 | |||||||||||||||||
| Total assets | $ | 1,299,535 | $ | 1,302,491 | |||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 185,601 | $ | 164,094 | 19 | 28 | 0.04 | 0.07 | |||||||||||
| Money market | 171,466 | 169,417 | 50 | 78 | 0.12 | 0.18 | |||||||||||||
| Savings | 89,485 | 84,471 | 11 | 17 | 0.05 | 0.08 | |||||||||||||
| Time | 373,790 | 410,862 | 1,081 | 1,246 | 1.16 | 1.22 | |||||||||||||
| Total deposits | 820,342 | 828,844 | 1,161 | 1,369 | 0.57 | 0.66 | |||||||||||||
| Customer repurchase agreements | 40,720 | 47,081 | 1 | 14 | 0.01 | 0.12 | |||||||||||||
| Other short-term borrowings | 571 | - | 1 | - | 0.36 | - | |||||||||||||
| Long-term borrowings | 37,376 | 37,393 | 266 | 271 | 2.85 | 2.90 | |||||||||||||
| Total interest-bearing liabilities | 899,009 | 913,318 | 1,429 | 1,654 | 0.64 | 0.73 | |||||||||||||
| Noninterest bearing demand deposits | 223,137 | 216,600 | |||||||||||||||||
| Other liabilities | 5,605 | 6,423 | |||||||||||||||||
| Shareholders' equity | 171,784 | 166,150 | |||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,299,535 | $ | 1,302,491 | |||||||||||||||
| Interest rate spread | 3.53 | % | 4.00 | % | |||||||||||||||
| Net interest margin | 3.68 | % | 4.16 | % | |||||||||||||||
| Net interest income (taxable equivalent basis) | 10,885 | 12,260 | |||||||||||||||||
| Less: Taxable equivalent adjustment | 534 | 567 | |||||||||||||||||
| Net interest income | $ | 10,351 | $ | 11,693 | |||||||||||||||
| Net Interest Income Analysis | |||||||||||||||||||
| For the Six Months Ended June 30, 2014 and 2013 | |||||||||||||||||||
| (in thousands, except rates) | |||||||||||||||||||
| Interest | |||||||||||||||||||
| Average Balance | Income/Expense | Yield/Rate | |||||||||||||||||
| 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||
| Loans: | |||||||||||||||||||
| Commercial | $ | 120,460 | $ | 128,022 | $ | 2,757 | $ | 3,195 | 4.62 | % | 5.03 | % | |||||||
| Real estate | 667,168 | 659,254 | 16,621 | 19,410 | 4.98 | 5.89 | |||||||||||||
| Consumer | 4,982 | 6,100 | 176 | 212 | 7.12 | 7.01 | |||||||||||||
| Total loans | 792,610 | 793,376 | 19,554 | 22,817 | 4.94 | 5.76 | |||||||||||||
| Securities: | |||||||||||||||||||
| Federal agencies & GSEs | 73,850 | 49,698 | 405 | 242 | 1.10 | 0.97 | |||||||||||||
| Mortgage-backed & CMOs | 64,482 | 78,208 | 771 | 718 | 2.39 | 1.84 | |||||||||||||
| State and municipal | 192,174 | 190,303 | 3,765 | 3,859 | 3.92 | 4.06 | |||||||||||||
| Other | 14,940 | 12,612 | 248 | 190 | 3.32 | 3.01 | |||||||||||||
| Total securities | 345,446 | 330,821 | 5,189 | 5,009 | 3.00 | 3.03 | |||||||||||||
| Deposits in other banks | 46,116 | 50,299 | 68 | 68 | 0.30 | 0.27 | |||||||||||||
| Total interest-earning assets | 1,184,172 | 1,174,496 | 24,811 | 27,894 | 4.19 | 4.75 | |||||||||||||
| Non-earning assets | 116,906 | 124,892 | |||||||||||||||||
| Total assets | $ | 1,301,078 | $ | 1,299,388 | |||||||||||||||
| Deposits: | |||||||||||||||||||
| Demand | $ | 176,889 | $ | 159,351 | 41 | 60 | 0.05 | 0.08 | |||||||||||
| Money market | 182,109 | 170,940 | 125 | 171 | 0.14 | 0.20 | |||||||||||||
| Savings | 88,199 | 83,589 | 25 | 37 | 0.06 | 0.09 | |||||||||||||
| Time | 378,061 | 412,467 | 2,199 | 2,537 | 1.17 | 1.24 | |||||||||||||
| Total deposits | 825,258 | 826,347 | 2,390 | 2,805 | 0.58 | 0.68 | |||||||||||||
| Customer repurchase agreements | 39,267 | 48,679 | 3 | 35 | 0.02 | 0.14 | |||||||||||||
| Other short-term borrowings | 287 | - | 1 | - | 0.36 | - | |||||||||||||
| Long-term borrowings | 37,374 | 37,396 | 530 | 541 | 2.84 | 2.89 | |||||||||||||
| Total interest-bearing liabilities | 902,186 | 912,422 | 2,924 | 3,381 | 0.65 | 0.75 | |||||||||||||
| Noninterest bearing demand deposits | 222,266 | 215,463 | |||||||||||||||||
| Other liabilities | 5,706 | 6,164 | |||||||||||||||||
| Shareholders' equity | 170,920 | 165,339 | |||||||||||||||||
| Total liabilities and shareholders' equity | $ | 1,301,078 | $ | 1,299,388 | |||||||||||||||
| Interest rate spread | 3.54 | % | 4.00 | % | |||||||||||||||
| Net interest margin | 3.70 | % | 4.18 | % | |||||||||||||||
| Net interest income (taxable equivalent basis) | 21,887 | 24,513 | |||||||||||||||||
| Less: Taxable equivalent adjustment | 1,077 | 1,138 | |||||||||||||||||
| Net interest income | $ | 20,810 | $ | 23,375 | |||||||||||||||