AMERICAN NATIONAL BANKSHARES INC. - FORM 8-K - EX-99.2 - THIRD QUARTER 2014 FINANCIAL HIGHLIGHTS

Attached files

file	filename
EX-99.1 - THIRD QUARTER 2014 EARNINGS PRESS RELEASE - AMERICAN NATIONAL BANKSHARES INC.	october212014_newsrelease.htm
8-K - 8-K THIRD QUARTER 2014 EARNINGS RELEASE - AMERICAN NATIONAL BANKSHARES INC.	october212014_8k.htm
8-K - OCTOBER 21, 2014 8-K (PDF) - AMERICAN NATIONAL BANKSHARES INC.	october212014_8k.pdf
EX-99.1 - OCTOBER 21, 2014 EARNINGS RELEASE (PDF) - AMERICAN NATIONAL BANKSHARES INC.	october212014_newsrelease.pdf
EX-99.2 - 3RD QUARTER FINANCIAL HIGHLIGHTS (PDF) - AMERICAN NATIONAL BANKSHARES INC.	october212014_exhibit.pdf

American National Bankshares Inc. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share and per share data)
Unaudited

	September 30
ASSETS	2014			2013

Cash and due from banks	$	22,699		$	24,071
Interest-bearing deposits in other banks		58,278			54,198

Securities available for sale, at fair value		328,534			347,618
Restricted stock, at cost		4,529			4,885
Loans held for sale		811			3,919

Loans		816,588			798,996
Less allowance for loan losses		(12,620	)		(12,684	)
Net Loans		803,968			786,312

Premises and equipment, net		23,085			23,982
Other real estate owned, net		2,364			4,215
Goodwill		39,043			39,043
Core deposit intangibles, net		2,271			3,489
Bank owned life insurance		15,044			14,597
Accrued interest receivable and other assets		18,531			17,856

Total assets	$	1,319,157		$	1,324,185


Liabilities
Demand deposits -- noninterest-bearing	$	244,469		$	231,583
Demand deposits -- interest-bearing		185,982			170,641
Money market deposits		173,192			181,559
Savings deposits		88,226			85,016
Time deposits		359,191			402,284
Total deposits		1,051,060			1,071,083

Customer repurchase agreements		51,945			44,026
Long-term borrowings		9,930			9,983
Trust preferred capital notes		27,495			27,394
Accrued interest payable and other liabilities		5,562			5,873
Total liabilities		1,145,992			1,158,359

Shareholders' equity
Preferred stock, $5 par, 2,000,000 shares authorized,
none outstanding		-			-
Common stock, $1 par, 20,000,000 shares authorized,
7,843,454 shares outstanding at September 30, 2014 and
7,886,476 shares outstanding at September 30, 2013		7,843			7,886
Capital in excess of par value		57,087			57,905
Retained earnings		103,515			97,762
Accumulated other comprehensive income, net		4,720			2,273
Total shareholders' equity		173,165			165,826

Total liabilities and shareholders' equity	$	1,319,157		$	1,324,185

American National Bankshares Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
Unaudited

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2014		2013		2014		2013
Interest and Dividend Income:
Interest and fees on loans	$	9,864	$	11,100	$	29,398	$	33,853
Interest and dividends on securities:
Taxable		918		845		2,850		2,574
Tax-exempt		966		1,056		3,017		3,153
Dividends		72		67		221		176
Other interest income		32		38		100		106
Total interest and dividend income		11,852		13,106		35,586		39,862

Interest Expense:
Interest on deposits		1,120		1,338		3,510		4,143
Interest on short-term borrowings		4		3		8		38
Interest on long-term borrowings		82		82		243		246
Interest on trust preferred capital notes		186		190		555		567
Total interest expense		1,392		1,613		4,316		4,994

Net Interest Income		10,460		11,493		31,270		34,868
Provision for loan losses		-		-		150		294

Net Interest Income After Provision
for Loan Losses		10,460		11,493		31,120		34,574

Noninterest Income:
Trust fees		992		1,077		3,131		2,609
Service charges on deposit accounts		441		452		1,285		1,290
Other fees and commissions		479		471		1,416		1,393
Mortgage banking income		342		464		880		1,713
Securities gains, net		315		4		504		203
Other		412		299		1,168		1,015
Total noninterest income		2,981		2,767		8,384		8,223

Noninterest Expense:
Salaries		3,714		3,610		10,890		10,552
Employee benefits		799		856		2,621		2,622
Occupancy and equipment		933		933		2,779		2,721
FDIC assessment		157		163		486		485
Bank franchise tax		216		187		669		559
Core deposit intangible amortization		227		330		888		1,171
Data processing		361		305		1,054		892
Software		248		198		745		659
Foreclosed real estate, net		141		245		148		681
Merger related expenses		268		-		268		-
Other		1,763		1,628		5,067		4,859
Total noninterest expense		8,827		8,455		25,615		25,201

Income Before Income Taxes		4,614		5,805		13,889		17,596
Income Taxes		1,446		1,562		4,038		4,992
Net Income	$	3,168	$	4,243	$	9,851	$	12,604

Net Income Per Common Share:
Basic	$	0.40	$	0.54	$	1.25	$	1.60
Diluted	$	0.40	$	0.54	$	1.25	$	1.60
Average Common Shares Outstanding:
Basic		7,841,078		7,877,901		7,871,016		7,867,835
Diluted		7,851,735		7,892,015		7,881,441		7,878,961

American National Bankshares Inc. and Subsidiaries
Financial Highlights

(In thousands, except share, ratio and
nonfinancial data, unaudited)	3rd Qtr			2nd Qtr			3rd Qtr			YTD			YTD
	2014			2014			2013			2014			2013
EARNINGS
Interest income	$	11,852		$	11,780		$	13,106		$	35,586		$	39,862
Interest expense		1,392			1,429			1,613			4,316			4,994
Net interest income		10,460			10,351			11,493			31,270			34,868
Provision for loan losses		-			150			-			150			294
Noninterest income		2,981			2,700			2,767			8,384			8,223
Noninterest expense		8,827			8,365			8,455			25,615			25,201
Income taxes		1,446			1,303			1,562			4,038			4,992
Net income		3,168			3,233			4,243			9,851			12,604

PER COMMON SHARE
Earnings per share - basic	$	0.40		$	0.41		$	0.54		$	1.25		$	1.60
Earnings per share - diluted		0.40			0.41			0.54			1.25			1.60
Cash dividends paid		0.23			0.23			0.23			0.69			0.69
Book value per share		22.08			21.95			21.03			22.08			21.03
Book value per share - tangible (a)		16.81			16.65			15.63			16.81			15.63
Closing market price		22.75			21.73			23.20			22.75			23.20

FINANCIAL RATIOS
Return on average assets		0.97	%		1.00	%		1.30	%		1.01	%		1.29	%
Return on average equity		7.35			7.53			10.40			7.66			10.21
Return on average tangible equity (b)		10.12			10.67			14.90			10.72			14.76
Average equity to average assets		13.18			13.22			12.48			13.15			12.64
Tangible equity to tangible assets (a)		10.32			10.37			9.62			10.32			9.62
Net interest margin, taxable equivalent		3.68			3.68			4.06			3.69			4.14
Efficiency ratio (e)		64.35			62.87			56.60			63.01			56.02
Effective tax rate		31.34			28.73			26.91			29.07			28.37

PERIOD-END BALANCES
Securities	$	333,063		$	354,783		$	352,502		$	333,063		$	352,502
Loans held for sale		811			118			3,919			811			3,919
Loans, net of unearned income		816,588			813,057			798,996			816,588			798,996
Goodwill and other intangibles		41,314			41,541			42,532			41,314			42,532
Assets		1,319,157			1,300,648			1,324,185			1,319,157			1,324,185
Assets - tangible (a)		1,277,843			1,259,107			1,281,653			1,277,843			1,281,653
Deposits		1,051,060			1,035,800			1,071,083			1,051,060			1,071,083
Customer repurchase agreements		51,945			38,420			44,026			51,945			44,026
Long-term borrowings		37,425			37,394			37,377			37,425			37,377
Shareholders' equity		173,165			172,083			165,826			173,165			165,826
Shareholders' equity - tangible (a)		131,851			130,542			123,294			131,851			123,294

AVERAGE BALANCES
Securities	$	329,455		$	347,726		$	339,582		$	340,720		$	333,785
Loans held for sale		1,998			1,685			5,109			1,905			6,053
Loans, net of unearned income		815,564			793,060			790,846			799,114			788,192
Interest-earning assets		1,191,761			1,183,559			1,189,844			1,186,763			1,179,680
Goodwill and other intangibles		41,455			41,738			42,731			41,754			43,133
Assets		1,309,120			1,299,535			1,307,347			1,303,788			1,302,070
Assets - tangible (a)		1,267,665			1,257,797			1,264,616			1,262,034			1,258,937
Interest-bearing deposits		806,267			820,342			834,305			818,858			829,029
Deposits		1,044,913			1,043,479			1,053,124			1,046,644			1,045,623
Customer repurchase agreements		45,725			40,720			46,712			41,443			48,016
Long-term borrowings		37,406			37,376			37,388			37,385			37,393
Shareholders' equity		172,493			171,784			163,130			171,450			164,595
Shareholders' equity - tangible (a)		131,038			130,046			120,399			129,696			121,462

American National Bankshares Inc. and Subsidiaries
Financial Highlights

(In thousands, except share, ratio and
nonfinancial data, unaudited	3rd Qtr			2nd Qtr			3rd Qtr			YTD			YTD
	2014			2014			2013			2014			2013
CAPITAL
Average shares outstanding - basic		7,841,078			7,872,079			7,877,901			7,871,016			7,867,835
Average shares outstanding - diluted		7,851,735			7,879,854			7,892,015			7,881,441			7,878,961

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	12,763		$	12,614		$	12,676		$	12,600		$	12,118
Provision for loan losses		-			150			-			150			294
Charge-offs		(230	)		(95	)		(162	)		(398	)		(629	)
Recoveries		87			94			170			268			901
Ending balance	$	12,620		$	12,763		$	12,684		$	12,620		$	12,684

LOANS
Construction and land development	$	47,060		$	50,856		$	43,386		$	47,060		$	43,386
Commercial real estate		371,743			366,722			361,968			371,743			361,968
Residential real estate		175,091			175,387			173,695			175,091			173,695
Home equity		90,952			89,725			89,154			90,952			89,154
Commercial and industrial		126,437			125,163			124,504			126,437			124,504
Consumer		5,305			5,204			6,289			5,305			6,289
Total	$	816,588		$	813,057		$	798,996		$	816,588		$	798,996

NONPERFORMING ASSETS AT PERIOD-END
Nonperforming loans:
90 days past due and accruing	$	-		$	-		$	-		$	-		$	-
Nonaccrual		4,494			5,224			4,647			4,494			4,647
Foreclosed real estate		2,364			2,622			4,215			2,364			4,215
Nonperforming assets	$	6,858		$	7,846		$	8,862		$	6,858		$	8,862

ASSET QUALITY RATIOS
Allowance for loan losses to total loans		1.55			1.57			1.59			1.55			1.59
Allowance for loan losses to
nonperforming loans		280.82			244.31			272.95			280.82			272.95
Nonperforming assets to total assets		0.52			0.60			0.67			0.52			0.67
Nonperforming loans to total loans		0.55			0.64			0.58			0.55			0.58
Annualized net charge-offs (recoveries)
to average loans		0.07	%		0.00	%		0.00	%		0.02	%		(0.05	)%


OTHER DATA
Fiduciary assets at period-end (c)	$	441,753		$	450,352		$	430,853		$	441,753		$	430,853
Retail brokerage assets at period-end (c)	$	201,327		$	197,625		$	175,856		$	201,327		$	175,856
Number full-time equivalent employees (d)		292			291			290			292			290
Number of full service offices		24			25			25			24			25
Number of loan production offices		2			2			2			2			2
Number of ATM's		30			31			31			30			31

Notes:

(a) - Excludes goodwill and other intangible assets

(b) - Excludes amortization expense, net of tax, of intangible assets

(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 September 30, 2014 and 2013
(in thousands, except rates)

					Interest
	Average Balance				Income/Expense				Yield/Rate

	2014		2013		2014		2013		2014			2013
Loans:
Commercial	$	126,340	$	126,745	$	1,339	$	1,511		4.20	%		4.73	%
Real estate		686,682		663,539		8,451		9,517		4.92			5.74
Consumer		4,540		5,671		85		104		7.43			7.28
Total loans		817,562		795,955		9,875		11,132		4.83			5.59

Securities:
Federal agencies & GSEs		72,828		55,543		212		126		1.16			0.91
Mortgage-backed & CMOs		58,365		72,505		345		322		2.36			1.78
State and municipal		183,679		195,673		1,783		1,945		3.88			3.98
Other		14,583		15,861		114		116		3.36			2.93
Total securities		329,455		339,582		2,454		2,509		2.99			2.96

Deposits in other banks		45,744		54,307		32		38		0.28			0.28

Total interest-earning assets		1,192,761		1,189,844		12,361		13,679		4.14			4.59

Non-earning assets		116,359		117,503

Total assets	$	1,309,120	$	1,307,347

Deposits:
Demand	$	189,208	$	163,825		15		25		0.03			0.06
Money market		167,777		184,428		51		83		0.12			0.18
Savings		88,456		84,390		10		17		0.04			0.08
Time		360,826		401,662		1,044		1,213		1.15			1.20
Total deposits		806,267		834,305		1,120		1,338		0.55			0.64

Customer repurchase agreements		45,725		46,712		2		3		0.02			0.03
Other short-term borrowings		2,215		-		2		-		0.36			-
Long-term borrowings		37,406		37,388		268		272		2.87			2.91
Total interest-bearing
liabilities		891,613		918,405		1,392		1,613		0.62			0.70

Noninterest bearing demand deposits		238,646		218,819
Other liabilities		6,368		6,993
Shareholders' equity		172,493		163,130
Total liabilities and
shareholders' equity	$	1,309,120	$	1,307,347

Interest rate spread										3.52	%		3.89	%
Net interest margin										3.68	%		4.06	%

Net interest income (taxable equivalent basis)						10,969		12,066
Less: Taxable equivalent adjustment						509		573
Net interest income					$	10,460	$	11,493

Net Interest Income Analysis
For the Nine Months Ended September 30, 2014 and 2013
(in thousands, except rates)

					Interest
	Average Balance				Income/Expense				Yield/Rate

	2014		2013		2014		2013		2014			2013
Loans:
Commercial	$	122,441	$	127,592	$	4,096	$	4,706		4.49	%		4.95	%
Real estate		673,745		660,698		25,072		28,927		4.96			5.84
Consumer		4,833		5,955		261		316		7.25			7.12
Total loans		801,019		794,245		29,429		33,949		4.90			5.70

Securities:
Federal agencies & GSEs		73,506		51,668		617		368		1.12			0.95
Mortgage-backed & CMOs		62,420		76,286		1,116		1,040		2.38			1.82
State and municipal		189,311		192,113		5,548		5,804		3.91			4.03
Other		15,483		13,718		362		306		3.33			2.97
Total securities		340,720		333,785		7,643		7,518		3.00			3.00

Deposits in other banks		46,024		51,650		100		106		0.29			0.28

Total interest-earning assets		1,187,763		1,179,680		37,172		41,573		4.18			4.70

Non-earning assets		116,025		122,390

Total assets	$	1,303,788	$	1,302,070

Deposits:
Demand	$	181,040	$	160,858		56		85		0.04			0.07
Money market		177,279		175,486		176		254		0.13			0.19
Savings		88,286		83,859		35		54		0.05			0.09
Time		372,253		408,826		3,243		3,750		1.17			1.23
Total deposits		818,858		829,029		3,510		4,143		0.58			0.67

Customer repurchase agreements		41,443		48,016		5		38		0.02			0.11
Other short-term borrowings		937		-		3		-		0.43			-
Long-term borrowings		37,385		37,393		798		813		2.85			2.90
Total interest-bearing
liabilities		898,623		914,438		4,316		4,994		0.64			0.73

Noninterest bearing demand deposits		227,786		216,594
Other liabilities		5,929		6,443
Shareholders' equity		171,450		164,595
Total liabilities and
shareholders' equity	$	1,303,788	$	1,302,070

Interest rate spread										3.54	%		3.97	%
Net interest margin										3.69	%		4.14	%

Net interest income (taxable equivalent basis)						32,856		36,579
Less: Taxable equivalent adjustment						1,586		1,711
Net interest income					$	31,270	$	34,868

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AMERICAN NATIONAL BANKSHARES INC. Reports

AMERICAN NATIONAL BANKSHARES INC. - FORM 8-K - EX-99.2 - THIRD QUARTER 2014 FINANCIAL HIGHLIGHTS - October 21, 2014

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AMERICAN NATIONAL BANKSHARES INC. Reports