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American National Bankshares Reports First Quarter Earnings

DANVILLE, Va., April 23, 2020 (GLOBE NEWSWIRE) -- American National Bankshares Inc. (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