DANVILLE, VA--(Marketwired - July 21, 2016) - American National Bankshares Inc. ("American National") (
- Organic loan growth of $75.1 million (7.6%) during last four quarters
- Q2 2016 net income of $4.1 million and diluted EPS of $0.47
- Net interest margin of 3.45% for Q2 2016
- Average shareholders' equity of $201.7 million is 12.67% of average assets
American National Bankshares Inc. ("American National") (
Net income for the first six months of 2016 was $8,216,000 compared to $6,395,000 for the comparable period of 2015, a $1,821,000 or 28.5% increase. Basic and diluted net income per common share was $0.95 for the 2016 period compared to $0.73 for the 2015 period.
Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, reported, "We are seeing improving economic conditions in our markets and this is resulting in increased demand for credit. Loans have increased $75.1 million or 7.6% during the past year. In the past six months, loans have increased $52.4 million or 5.2%. We are very encouraged that a combination of active business development and gradually improving local market economic conditions are resulting in this high quality growth. However, the continuing challenge for our industry in this competitive environment is achieving reasonable risk adjusted yield on our earning assets.
"Loans don't exist in isolation; they require liquidity. Deposits have grown $64.4 million or 5.2% over the past year. In the past six months, deposits have grown $35.7 million or 2.8%. This growth is mostly in non-maturity, core deposits, the heart of our balance sheet. We continue working to grow these core deposits and their affiliated relationships, but the challenge in this ongoing low rate environment is to do that in a cost effective yet competitive manner. Our cost of interest bearing deposits for the second quarter was 0.54%, compared to 0.50% for the 2015 quarter.
"On the earnings side, net income for the second quarter was $4,088,000 compared to $2,880,000, an increase of $1,208,000 or 41.9%.
"The major driver was the noninterest expense, which was reduced $1,986,000 or 17.1%. This mostly related to non-recurring MainStreet acquisition expenses, which totaled $1,502,000 in the second quarter 2015.
"We also saw significant expense reduction in salaries, which declined $277,000 or 6.4% compared to the second quarter of 2015. Full time equivalent employees for the current quarter were 302, down from 322 for the prior year quarter. The magnitude of the decrease was directly related to the completion and integration of the MainStreet acquisition."
Haley concluded, "The first half of 2016 has been very productive for American National. Average loan balances this quarter are $75.2 million or 7.7% greater than the second quarter of 2015. American National will continue to grow its balance sheet and maintain high asset quality. However, capital will remain a strategic priority."
Capital
American National's capital ratios remain strong and exceed all regulatory requirements.
For the quarter ended June 30, 2016, average shareholders' equity was 12.67% of average assets, compared to 12.85% for the quarter ended June 30, 2015.
Book value per common share was $23.54 at June 30, 2016, compared to $22.43 at June 30, 2015.
Tangible book value per common share was $18.20 at June 30, 2016, compared to $16.96 at June 30, 2015.
Credit Quality Measurements
Non-performing assets ($3,412,000 of non-performing loans and $1,289,000 of other real estate owned) represented 0.29% of total assets at June 30, 2016, compared to 0.39% at June 30, 2015.
Annualized net charge offs to average loans was two basis points (0.02%) for the 2016 second quarter, compared to six basis points (0.06%) for the same quarter in 2015.
Other real estate owned was $1,289,000 compared to $2,113,000 at June 30, 2015, a decrease of $824,000 or 39.0%.
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 the adjustments is summarized below (dollars in thousands):
Acquisition related financial impact | ||||
For the quarter ended June 30, | 2016 | 2015 | ||
Net interest income | $352 | $843 | ||
Income before Income taxes | $64 | $543 | ||
For the period ended June 30, | 2016 | 2015 | ||
Net interest income | $1,353 | $1,955 | ||
Income before Income taxes | $777 | $1,354 | ||
During the first quarter of 2016, the Company received two substantial payoffs of purchased credit impaired loans from our 2011 MidCarolina acquisition that resulted in $460,000 in cash-basis accretion income.
Net Interest Income
Net interest income before the provision for loan losses decreased to $12,160,000 in the second quarter of 2016 from $12,382,000 in the second quarter of 2015, a decrease of $222,000 or 1.8%.
For the 2016 quarter, the net interest margin was 3.45% compared to 3.69% for the same quarter in 2015, a decrease of 24 basis points (0.24%). The decrease in net interest income and margin was mostly driven by reduced levels of accretion income.
Provision for Loan Losses and Allowance for Loan Losses
Provision expense for the second quarter of 2016 was $50,000 compared to $100,000 for the second quarter of 2015.
The allowance for loan losses as a percentage of total loans was 1.20% at June 30, 2016 compared to 1.30% at June 30, 2015.
There was significant growth in the loans outstanding in the second quarter 2016, a net of $23.4 million or 2.3%. The need for additions to the allowance for loan losses was reduced by improvement in various qualitative factors used in the determination of the allowance, notably asset quality and local economic conditions. As noted in the Credit Quality discussion, non-performing assets, charge-offs, and other real estate owned are all improved over the past year.
Noninterest Income
Noninterest income totaled $3,367,000 in the second quarter of 2016, compared with $3,258,000 in the second quarter of 2015, an increase of $109,000 or 3.3%. There was very little change in most revenue categories during the quarter.
Noninterest Expense
Noninterest expense totaled $9,656,000 in the second quarter of 2016, compared to $11,642,000 in the second quarter of 2015, a decrease of $1,986,000 or 17.1%. The major driver of the decrease was nonrecurring merger related expenses, from the January 2015 MainStreet acquisition, which accounted for $1,502,000 or 75.6% of the decrease.
Salaries expense was down $277,000 or 6.4% for the second quarter of 2016 compared to the comparable period. This mostly related to a reduction in the number of full time equivalent employees to 302 from 322.
About American National
American National is a multi-state bank holding company with total assets of approximately $1.6 billion. Headquartered in Danville, Virginia, American National is the parent company of American National Bank and Trust Company. American National Bank is a community bank serving Virginia and North Carolina with 25 banking offices and two loan production offices. American National Bank also manages an additional $761 million of trust, investment and brokerage assets in its Trust and Investment Services Division. Additional information about the company and the bank is available on the bank's website at www.amnb.com.
Shares of American National are traded on the NASDAQ Global Select Market under the symbol "AMNB."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws. Certain of the statements involve significant risks and uncertainties. The statements herein are based on certain assumptions and analyses by American National and are factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies or guidelines; significant changes in the economic scenario; significant changes in regulatory requirements; significant changes in securities markets; and changes in technology and information security; and changes regarding acquisitions and dispositions. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in American National's most recent Form 10-K report and other documents filed with the Securities and Exchange Commission. American National does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
American National Bankshares Inc. | ||||||||||
Consolidated Balance Sheets | ||||||||||
(Dollars in thousands, except share and per share data) | ||||||||||
Unaudited | ||||||||||
June 30 | June 30 | |||||||||
ASSETS | 2016 | 2015 | ||||||||
Cash and due from banks | $ | 21,625 | $ | 24,548 | ||||||
Interest-bearing deposits in other banks | 51,716 | 50,758 | ||||||||
Federal funds sold | - | 408 | ||||||||
Securities available for sale, at fair value | 362,800 | 355,595 | ||||||||
Restricted stock, at cost | 5,362 | 5,329 | ||||||||
Loans held for sale | 4,692 | 2,720 | ||||||||
Loans | 1,057,959 | 982,905 | ||||||||
Less allowance for loan losses | (12,674 | ) | (12,793 | ) | ||||||
Net Loans | 1,045,285 | 970,112 | ||||||||
Premises and equipment, net | 22,878 | 24,182 | ||||||||
Other real estate owned, net | 1,289 | 2,113 | ||||||||
Goodwill | 43,872 | 44,210 | ||||||||
Core deposit intangibles, net | 2,107 | 3,283 | ||||||||
Bank owned life insurance | 17,885 | 17,376 | ||||||||
Accrued interest receivable and other assets | 22,140 | 23,722 | ||||||||
Total assets | $ | 1,601,651 | $ | 1,524,356 | ||||||
Liabilities | ||||||||||
Demand deposits -- noninterest-bearing | $ | 321,442 | $ | 294,342 | ||||||
Demand deposits -- interest-bearing | 205,440 | 239,582 | ||||||||
Money market deposits | 252,118 | 190,799 | ||||||||
Savings deposits | 116,047 | 109,732 | ||||||||
Time deposits | 403,338 | 399,563 | ||||||||
Total deposits | 1,298,385 | 1,234,018 | ||||||||
Customer repurchase agreements | 53,369 | 50,123 | ||||||||
Long-term borrowings | 9,969 | 9,947 | ||||||||
Junior subordinated debt | 27,673 | 27,571 | ||||||||
Accrued interest payable and other liabilities | 9,551 | 7,814 | ||||||||
Total liabilities | 1,398,947 | 1,329,473 | ||||||||
Shareholders' equity | ||||||||||
Preferred stock, $5 par, 2,000,000 shares authorized,none outstanding | - | - | ||||||||
Common stock, $1 par, 20,000,000 shares authorized,8,609,160 shares outstanding at June 30, 2016 and8,688,480 shares outstanding at June 30, 2015 | 8,572 | 8,671 | ||||||||
Capital in excess of par value | 74,753 | 76,826 | ||||||||
Retained earnings | 115,648 | 106,984 | ||||||||
Accumulated other comprehensive income, net | 3,731 | 2,402 | ||||||||
Total shareholders' equity | 202,704 | 194,883 | ||||||||
Total liabilities and shareholders' equity | $ | 1,601,651 | $ | 1,524,356 | ||||||
American National Bankshares Inc. | |||||||||||||||
Consolidated Statements of Income | |||||||||||||||
(Dollars in thousands, except share and per share data) | |||||||||||||||
Unaudited | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
June 30 | June 30 | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Interest and Dividend Income: | |||||||||||||||
Interest and fees on loans | $ | 11,642 | $ | 11,767 | $ | 23,757 | $ | 23,537 | |||||||
Interest on federal funds sold | - | 1 | - | 5 | |||||||||||
Interest and dividends on securities: | |||||||||||||||
Taxable | 1,150 | 994 | 2,234 | 1,969 | |||||||||||
Tax-exempt | 817 | 940 | 1,640 | 1,900 | |||||||||||
Dividends | 93 | 85 | 184 | 167 | |||||||||||
Other interest income | 67 | 50 | 125 | 98 | |||||||||||
Total interest and dividend income | 13,769 | 13,837 | 27,940 | 27,676 | |||||||||||
Interest Expense: | |||||||||||||||
Interest on deposits | 1,314 | 1,184 | 2,611 | 2,378 | |||||||||||
Interest on short-term borrowings | 1 | 2 | 2 | 5 | |||||||||||
Interest on long-term borrowings | 81 | 81 | 162 | 161 | |||||||||||
Interest on junior subordinated debt | 213 | 188 | 421 | 372 | |||||||||||
Total interest expense | 1,609 | 1,455 | 3,196 | 2,916 | |||||||||||
Net Interest Income | 12,160 | 12,382 | 24,744 | 24,760 | |||||||||||
Provision for loan losses | 50 | 100 | 100 | 700 | |||||||||||
Net Interest Income After Provision for Loan Losses | 12,110 | 12,282 | 24,644 | 24,060 | |||||||||||
Noninterest Income: | |||||||||||||||
Trust fees | 961 | 1,005 | 1,891 | 1,957 | |||||||||||
Service charges on deposit accounts | 514 | 525 | 1,006 | 1,022 | |||||||||||
Other fees and commissions | 656 | 607 | 1,328 | 1,195 | |||||||||||
Mortgage banking income | 365 | 389 | 657 | 611 | |||||||||||
Securities gains, net | 222 | 237 | 588 | 547 | |||||||||||
Brokerage fees | 223 | 211 | 427 | 426 | |||||||||||
Income from Small Business Investment Companies | 72 | 94 | 238 | 328 | |||||||||||
Other | 354 | 190 | 529 | 328 | |||||||||||
Total noninterest income | 3,367 | 3,258 | 6,664 | 6,414 | |||||||||||
Noninterest Expense: | |||||||||||||||
Salaries | 4,031 | 4,308 | 8,246 | 8,455 | |||||||||||
Employee benefits | 1,055 | 1,111 | 2,169 | 2,186 | |||||||||||
Occupancy and equipment | 1,059 | 1,024 | 2,158 | 2,196 | |||||||||||
FDIC assessment | 193 | 195 | 381 | 380 | |||||||||||
Bank franchise tax | 256 | 220 | 512 | 455 | |||||||||||
Core deposit intangible amortization | 288 | 300 | 576 | 601 | |||||||||||
Data processing | 459 | 483 | 903 | 945 | |||||||||||
Software | 274 | 277 | 571 | 560 | |||||||||||
Other real estate owned, net | 76 | 133 | 209 | 186 | |||||||||||
Merger related expenses | - | 1,502 | - | 1,861 | |||||||||||
Other | 1,965 | 2,089 | 3,849 | 3,864 | |||||||||||
Total noninterest expense | 9,656 | 11,642 | 19,574 | 21,689 | |||||||||||
Income Before Income Taxes | 5,821 | 3,898 | 11,734 | 8,785 | |||||||||||
Income Taxes | 1,733 | 1,018 | 3,518 | 2,390 | |||||||||||
Net Income | $ | 4,088 | $ | 2,880 | $ | 8,216 | $ | 6,395 | |||||||
Net Income Per Common Share: | |||||||||||||||
Basic | $ | 0.47 | $ | 0.33 | $ | 0.95 | $ | 0.73 | |||||||
Diluted | $ | 0.47 | $ | 0.33 | $ | 0.95 | $ | 0.73 | |||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||
Basic | 8,610,156 | 8,707,504 | 8,610,998 | 8,713,528 | |||||||||||
Diluted | 8,619,833 | 8,715,934 | 8,616,873 | 8,722,266 | |||||||||||
American National Bankshares Inc. | ||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||
(In thousands, except share, ratio and nonfinancial data, unaudited) |
2nd Qtr |
1st Qtr |
2nd Qtr |
YTD |
YTD |
|||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
EARNINGS | ||||||||||||||||||||||
Interest income | $ | 13,769 | $ | 14,171 | $ | 13,837 | $ | 27,940 | $ | 27,676 | ||||||||||||
Interest expense | 1,609 | 1,587 | 1,455 | 3,196 | 2,916 | |||||||||||||||||
Net interest income | 12,160 | 12,584 | 12,382 | 24,744 | 24,760 | |||||||||||||||||
Provision for loan losses | 50 | 50 | 100 | 100 | 700 | |||||||||||||||||
Noninterest income | 3,367 | 3,297 | 3,258 | 6,664 | 6,414 | |||||||||||||||||
Noninterest expense | 9,656 | 9,918 | 11,642 | 19,574 | 21,689 | |||||||||||||||||
Income taxes | 1,733 | 1,785 | 1,018 | 3,518 | 2,390 | |||||||||||||||||
Net income | 4,088 | 4,128 | 2,880 | 8,216 | 6,395 | |||||||||||||||||
PER COMMON SHARE | ||||||||||||||||||||||
Income per share - basic | $ | 0.47 | $ | 0.48 | $ | 0.33 | $ | 0.95 | $ | 0.73 | ||||||||||||
Income per share - diluted | 0.47 | 0.48 | 0.33 | 0.95 | 0.73 | |||||||||||||||||
Cash dividends paid | 0.24 | 0.24 | 0.23 | 0.48 | 0.46 | |||||||||||||||||
Book value per share | 23.54 | 23.27 | 22.43 | 23.54 | 22.43 | |||||||||||||||||
Book value per share - tangible (a) | 18.20 | 17.90 | 16.96 | 18.20 | 16.96 | |||||||||||||||||
Closing market price | 25.18 | 25.33 | 23.81 | 25.18 | 23.81 | |||||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||||
Return on average assets | 1.03 | % | 1.06 | % | 0.75 | % | 1.05 | % | 0.84 | % | ||||||||||||
Return on average equity | 8.11 | 8.28 | 5.86 | 8.19 | 6.51 | |||||||||||||||||
Return on average tangible equity (b) | 10.99 | 11.27 | 8.26 | 11.13 | 9.14 | |||||||||||||||||
Average equity to average assets | 12.67 | 12.86 | 12.85 | 12.76 | 12.88 | |||||||||||||||||
Tangible equity to tangible assets (a) | 10.07 | 10.04 | 9.98 | 10.07 | 9.98 | |||||||||||||||||
Net interest margin, taxable equivalent | 3.45 | 3.67 | 3.69 | 3.56 | 3.71 | |||||||||||||||||
Efficiency ratio (c) | 60.91 | 61.36 | 72.76 | 61.14 | 68.36 | |||||||||||||||||
Effective tax rate | 29.77 | 30.19 | 26.12 | 29.98 | 27.21 | |||||||||||||||||
PERIOD-END BALANCES | ||||||||||||||||||||||
Securities | $ | 368,162 | $ | 362,353 | $ | 361,176 | $ | 368,162 | $ | 361,176 | ||||||||||||
Loans held for sale | 4,692 | 785 | 2,720 | 4,692 | 2,720 | |||||||||||||||||
Loans, net of unearned income | 1,057,959 | 1,034,564 | 982,905 | 1,057,959 | 982,905 | |||||||||||||||||
Goodwill and other intangibles | 45,979 | 46,267 | 47,493 | 45,979 | 47,493 | |||||||||||||||||
Assets | 1,601,651 | 1,582,554 | 1,524,356 | 1,601,651 | 1,524,356 | |||||||||||||||||
Assets - tangible (a) | 1,555,672 | 1,536,287 | 1,476,863 | 1,555,672 | 1,476,863 | |||||||||||||||||
Deposits | 1,298,385 | 1,292,431 | 1,234,018 | 1,298,385 | 1,234,018 | |||||||||||||||||
Customer repurchase agreements | 53,369 | 42,184 | 50,123 | 53,369 | 50,123 | |||||||||||||||||
Long-term borrowings | 37,642 | 37,611 | 37,518 | 37,642 | 37,518 | |||||||||||||||||
Shareholders' equity | 202,704 | 200,443 | 194,883 | 202,704 | 194,883 | |||||||||||||||||
Shareholders' equity - tangible (a) | 156,725 | 154,176 | 147,390 | 156,725 | 147,390 | |||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||||
Securities | $ | 361,064 | $ | 347,290 | $ | 349,813 | $ | 354,038 | $ | 347,816 | ||||||||||||
Loans held for sale | 2,087 | 2,055 | 2,836 | 2,071 | 1,893 | |||||||||||||||||
Loans, net of unearned income | 1,047,993 | 1,016,696 | 972,083 | 1,032,345 | 963,530 | |||||||||||||||||
Interest-earning assets | 1,464,692 | 1,424,808 | 1,397,448 | 1,444,611 | 1,390,172 | |||||||||||||||||
Goodwill and other intangibles | 46,150 | 46,441 | 47,682 | 46,296 | 47,834 | |||||||||||||||||
Assets | 1,592,261 | 1,551,124 | 1,530,867 | 1,571,692 | 1,524,693 | |||||||||||||||||
Assets - tangible (a) | 1,546,111 | 1,504,683 | 1,483,185 | 1,525,396 | 1,476,859 | |||||||||||||||||
Interest-bearing deposits | 972,385 | 950,271 | 945,931 | 961,328 | 942,019 | |||||||||||||||||
Deposits | 1,295,520 | 1,260,534 | 1,236,626 | 1,278,027 | 1,228,874 | |||||||||||||||||
Customer repurchase agreements | 47,607 | 44,412 | 51,417 | 46,008 | 52,294 | |||||||||||||||||
Long-term borrowings | 37,624 | 37,593 | 37,499 | 37,609 | 37,484 | |||||||||||||||||
Shareholders' equity | 201,685 | 199,525 | 196,663 | 200,605 | 196,376 | |||||||||||||||||
Shareholders' equity - tangible (a) | 155,535 | 153,084 | 148,981 | 154,309 | 148,542 | |||||||||||||||||
American National Bankshares Inc. | ||||||||||||||||||||||
Financial Highlights | ||||||||||||||||||||||
(In thousands, except share, ratio and nonfinancial data, unaudited) |
2nd Qtr |
1st Qtr |
2nd Qtr |
YTD |
YTD |
|||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||
CAPITAL | ||||||||||||||||||||||
Weighted average shares outstanding - basic | 8,610,156 | 8,608,728 | 8,707,504 | 8,610,998 | 8,713,528 | |||||||||||||||||
Weighted average shares outstanding - diluted | 8,619,833 | 8,613,896 | 8,715,934 | 8,616,873 | 8,722,266 | |||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||
Beginning balance | $ | 12,675 | $ | 12,601 | $ | 12,844 | $ | 12,601 | $ | 12,427 | ||||||||||||
Provision for loan losses | 50 | 50 | 100 | 100 | 700 | |||||||||||||||||
Charge-offs | (119 | ) | (40 | ) | (321 | ) | (159 | ) | (630 | ) | ||||||||||||
Recoveries | 68 | 64 | 170 | 132 | 296 | |||||||||||||||||
Ending balance | $ | 12,674 | $ | 12,675 | $ | 12,793 | $ | 12,674 | $ | 12,793 | ||||||||||||
LOANS | ||||||||||||||||||||||
Construction and land development | $ | 89,451 | $ | 82,711 | $ | 66,543 | $ | 89,451 | $ | 66,543 | ||||||||||||
Commercial real estate | 438,164 | 427,824 | 432,315 | 438,164 | 432,315 | |||||||||||||||||
Residential real estate | 216,857 | 222,451 | 220,778 | 216,857 | 220,778 | |||||||||||||||||
Home equity | 107,007 | 100,019 | 97,866 | 107,007 | 97,866 | |||||||||||||||||
Commercial and industrial | 201,381 | 196,110 | 159,015 | 201,381 | 159,015 | |||||||||||||||||
Consumer | 5,099 | 5,449 | 6,388 | 5,099 | 6,388 | |||||||||||||||||
Total | $ | 1,057,959 | $ | 1,034,564 | $ | 982,905 | $ | 1,057,959 | $ | 982,905 | ||||||||||||
NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||||
90 days past due and accruing | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||
Nonaccrual | 3,412 | 5,276 | 3,772 | 3,412 | 3,772 | |||||||||||||||||
Other real estate owned | 1,289 | 1,493 | 2,113 | 1,289 | 2,113 | |||||||||||||||||
Nonperforming assets | $ | 4,701 | $ | 6,769 | $ | 5,885 | $ | 4,701 | $ | 5,885 | ||||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||||
Allowance for loan losses to total loans | 1.20 | % | 1.23 | % | 1.30 | % | 1.20 | % | 1.30 | % | ||||||||||||
Allowance for loan losses tononperforming loans | 371.45 |
240.24 |
339.16 |
371.45 |
339.16 |
|||||||||||||||||
Nonperforming assets to total assets | 0.29 | 0.43 | 0.39 | 0.29 | 0.39 | |||||||||||||||||
Nonperforming loans to total loans | 0.32 | 0.51 | 0.38 | 0.32 | 0.38 | |||||||||||||||||
Annualized net charge-offs (recoveries)to average loans | 0.02 |
(0.01 |
) | 0.06 |
0.01 |
0.07 |
||||||||||||||||
OTHER DATA | ||||||||||||||||||||||
Fiduciary assets at period-end (d) (e) | $ | 491,517 | $ | 491,257 | $ | 509,289 | $ | 491,517 | $ | 509,289 | ||||||||||||
Retail brokerage assets at period-end (d) (e) | $ | 269,066 | $ | 268,542 | $ | 257,306 | $ | 269,066 | $ | 257,306 | ||||||||||||
Number full-time equivalent employees (f) | 302 | 301 | 322 | 302 | 322 | |||||||||||||||||
Number of full service offices | 25 | 25 | 27 | 25 | 27 | |||||||||||||||||
Number of loan production offices | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||
Number of ATM's | 33 | 33 | 34 | 33 | 34 | |||||||||||||||||
Notes: | |
(a) - Excludes goodwill and other intangible assets. | |
(b) - Excludes amortization expense, net of tax, of intangible assets. | |
| (c) - The efficiency ratio is calculated by dividing noninterest expense excluding gains or losses on the sale of OREO by net interest income including tax equivalent income on nontaxable loans and securities and noninterest income and excluding (i) gains or losses on securities and (ii) gains or losses on sale of premises and equipment. |
(d) - Market value. | |
(e) - Assets are not owned by the Company and are not reflected in the consolidated balance sheet. | |
(f) - Average for quarter. | |
Net Interest Income Analysis | ||||||||||||||||||||
For the Three Months Ended June 30, 2016 and 2015 | ||||||||||||||||||||
(in thousands, except yields/rates) | ||||||||||||||||||||
Interest | ||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | $ | 200,000 | $ | 155,752 | $ | 1,976 | $ | 1,760 | 3.97 | % | 4.53 | % | ||||||||
Real estate | 844,914 | 807,605 | 9,591 | 9,841 | 4.54 | 4.87 | ||||||||||||||
Consumer | 5,166 | 11,562 | 140 | 205 | 10.90 | 7.11 | ||||||||||||||
Total loans | 1,050,080 | 974,919 | 11,707 | 11,806 | 4.46 | 4.85 | ||||||||||||||
Securities: | ||||||||||||||||||||
Federal agencies & GSEs | 100,205 | 86,815 | 446 | 324 | 1.78 | 1.49 | ||||||||||||||
Mortgage-backed & CMOs | 81,379 | 61,738 | 425 | 334 | 2.09 | 2.16 | ||||||||||||||
State and municipal | 164,788 | 185,848 | 1,472 | 1,720 | 3.57 | 3.70 | ||||||||||||||
Other | 14,692 | 15,412 | 130 | 125 | 3.54 | 3.24 | ||||||||||||||
Total securities | 361,064 | 349,813 | 2,473 | 2,503 | 2.74 | 2.86 | ||||||||||||||
Federal funds sold | - | 6,480 | - | 1 | 0.00 | 0.06 | ||||||||||||||
Deposits in other banks | 53,548 | 66,236 | 66 | 50 | 0.50 | 0.30 | ||||||||||||||
Total interest-earning assets | 1,464,692 | 1,397,448 | 14,246 | 14,360 | 3.89 | 4.11 | ||||||||||||||
Non-earning assets | 127,569 | 133,419 | ||||||||||||||||||
Total assets | $ | 1,592,261 | $ | 1,530,867 | ||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand | $ | 229,639 | $ | 237,102 | 43 | 22 | 0.08 | 0.04 | ||||||||||||
Money market | 221,508 | 195,578 | 91 | 61 | 0.17 | 0.13 | ||||||||||||||
Savings | 117,408 | 109,397 | 14 | 14 | 0.05 | 0.05 | ||||||||||||||
Time | 403,830 | 403,854 | 1,166 | 1,087 | 1.16 | 1.08 | ||||||||||||||
Total deposits | 972,385 | 945,931 | 1,314 | 1,184 | 0.54 | 0.50 | ||||||||||||||
Customer repurchase agreements | 47,607 | 51,417 | 1 | 2 | 0.01 | 0.02 | ||||||||||||||
Long-term borrowings | 37,624 | 37,499 | 294 | 269 | 3.13 | 2.87 | ||||||||||||||
Total interest-bearing liabilities | 1,057,616 | 1,034,847 | 1,609 | 1,455 | 0.61 | 0.56 | ||||||||||||||
Noninterest bearing demand deposits | 323,135 | 290,695 | ||||||||||||||||||
Other liabilities | 9,825 | 8,662 | ||||||||||||||||||
Shareholders' equity | 201,685 | 196,663 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,592,261 |
$ | 1,530,867 |
||||||||||||||||
Interest rate spread | 3.28 | % | 3.55 | % | ||||||||||||||||
Net interest margin | 3.45 | % | 3.69 | % | ||||||||||||||||
Net interest income (taxable equivalent basis) | 12,637 | 12,905 | ||||||||||||||||||
Less: Taxable equivalent adjustment | 478 | 523 | ||||||||||||||||||
Net interest income | $ | 12,159 | $ | 12,382 | ||||||||||||||||
Net Interest Income Analysis | ||||||||||||||||||||
For the Six Months Ended June 30, 2016 and 2015 | ||||||||||||||||||||
(in thousands, except yields/rates) | ||||||||||||||||||||
Interest | ||||||||||||||||||||
Average Balance | Income/Expense | Yield/Rate | ||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
Loans: | ||||||||||||||||||||
Commercial | $ | 194,137 | $ | 147,482 | $ | 3,830 | $ | 3,586 | 3.99 | % | 4.90 | % | ||||||||
Real estate | 834,943 | 804,507 | 19,681 | 19,560 | 4.71 | 4.86 | ||||||||||||||
Consumer | 5,336 | 13,434 | 371 | 445 | 14.06 | 6.68 | ||||||||||||||
Total loans | 1,034,416 | 965,423 | 23,882 | 23,591 | 4.63 | 4.89 | ||||||||||||||
Securities: | ||||||||||||||||||||
Federal agencies & GSEs | 94,244 | 80,866 | 824 | 569 | 1.75 | 1.41 | ||||||||||||||
Mortgage-backed & CMOs | 78,635 | 63,637 | 825 | 712 | 2.10 | 2.24 | ||||||||||||||
State and municipal | 165,349 | 188,020 | 2,964 | 3,483 | 3.59 | 3.70 | ||||||||||||||
Other | 15,810 | 15,293 | 278 | 248 | 3.52 | 3.24 | ||||||||||||||
Total securities | 354,038 | 347,816 | 4,891 | 5,012 | 2.76 | 2.88 | ||||||||||||||
Federal funds sold | - | 10,508 | - | 5 | 0.00 | 0.10 | ||||||||||||||
Deposits in other banks | 56,157 | 66,425 | 125 | 98 | 0.45 | 0.30 | ||||||||||||||
Total interest-earning assets | 1,444,611 | 1,390,172 | 28,898 | 28,706 | 4.01 | 4.13 | ||||||||||||||
Non-earning assets | 127,081 | 134,521 | ||||||||||||||||||
Total assets | $ | 1,571,692 | $ | 1,524,693 | ||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand | $ | 230,504 | $ | 224,955 | 80 | 40 | 0.07 | 0.04 | ||||||||||||
Money market | 213,391 | 199,236 | 166 | 132 | 0.16 | 0.13 | ||||||||||||||
Savings | 117,529 | 108,545 | 28 | 26 | 0.05 | 0.05 | ||||||||||||||
Time | 399,904 | 409,283 | 2,337 | 2,180 | 1.18 | 1.07 | ||||||||||||||
Total deposits | 961,328 | 942,019 | 2,611 | 2,378 | 0.55 | 0.51 | ||||||||||||||
Customer repurchase agreements | 46,008 | 52,294 | 2 | 5 | 0.01 | 0.02 | ||||||||||||||
Long-term borrowings | 37,609 | 37,484 | 583 | 533 | 3.10 | 2.84 | ||||||||||||||
Total interest-bearing liabilities | 1,044,945 |
1,031,797 |
3,196 |
2,916 |
0.62 |
0.57 |
||||||||||||||
Noninterest bearing demand deposits | 316,699 | 286,855 | ||||||||||||||||||
Other liabilities | 9,443 | 9,665 | ||||||||||||||||||
Shareholders' equity | 200,605 | 196,376 | ||||||||||||||||||
Total liabilities and shareholders' equity | $ | 1,571,692 |
$ | 1,524,693 |
||||||||||||||||
Interest rate spread | 3.39 | % | 3.56 | % | ||||||||||||||||
Net interest margin | 3.56 | % | 3.71 | % | ||||||||||||||||
Net interest income (taxable equivalent basis) | 25,702 | 25,790 | ||||||||||||||||||
Less: Taxable equivalent adjustment | 958 | 1,030 | ||||||||||||||||||
Net interest income | $ | 24,744 | $ | 24,760 | ||||||||||||||||