American National Bankshares Inc (AMNB) Q3 Earnings Report: A Dip in Profits Amidst Merger Plans
AMNB reports Q3 2023 earnings of $5.8 million, a decrease from $9.3 million in Q3 2022.
Net interest income for Q3 2023 decreased by 13.9% compared to the same quarter of 2022.
Nonperforming assets increased to $3.7 million as of September 30, 2023, up from $1.4 million at September 30, 2022.
AMNB announced its agreement to merge with Atlantic Union Bankshares Corporation, subject to shareholder and regulatory approvals.
On October 19, 2023, American National Bankshares Inc (NASDAQ:AMNB) released its third-quarter earnings report, revealing a decrease in earnings compared to the same period last year. The company reported Q3 2023 earnings of $5.8 million, or $0.54 per diluted common share, compared to earnings of $9.3 million, or $0.87 per diluted common share, during the same quarter in the prior year.
Financial Performance and Challenges
AMNB's net interest income for the third quarter of 2023 decreased by $485 thousand, or 2.3%, to $20.7 million compared to $21.1 million for the previous quarter. The decrease was primarily due to funding costs increasing more than earning asset yields. Nonperforming assets (NPAs) totaled $3.7 million as of September 30, 2023, up from $1.1 million at June 30, 2023 and $1.4 million at September 30, 2022.
Merger Announcement
Despite the decrease in earnings, AMNB remains optimistic about its future growth. During the third quarter, the company announced its agreement to merge with Atlantic Union Bankshares Corporation. Jeffrey V. Haley, President and Chief Executive Officer, commented,
The third quarter was a historic one for American National as we announced our agreement to merge with Atlantic Union Bankshares Corporation subject to shareholder and regulatory approvals. We continue to believe this partnership will provide the combined company with a stronger platform for growth and create enhanced value for our shareholders, customers and employees."
Balance Sheet Overview
As of September 30, 2023, AMNB's total assets were $3.1 billion, a decline of $21.9 million, or 0.7% from June 30, 2023, but an increase of $41.9 million, or 1.4%, from September 30, 2022. Loans held for investment (net of deferred fees and costs) were $2.3 billion, an increase of $29.0 million, or 5.2% annualized, from June 30, 2023.
Looking Ahead
Despite the challenges faced in the third quarter, AMNB remains confident in its strategic direction, particularly with the planned merger with Atlantic Union Bankshares Corporation. The company believes that this partnership will provide a stronger platform for growth and create enhanced value for its shareholders, customers, and employees.
This article first appeared on GuruFocus.
