Market Overview

American National Bankshares Inc. Reports Second Quarter 2018 Earnings

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  • Loan growth of $50.7 million (3.9%) during last four quarters
  • Net income of $6.0 million and diluted EPS of $0.69 for Q2 2018
  • Net interest margin of 3.50% for Q2 2018
  • Average shareholders' equity of $212.3 million is 11.62% of average assets
  • Nonperforming assets to total assets 0.18% for Q2 2018

DANVILLE, Va., July 19, 2018 (GLOBE NEWSWIRE) -- American National Bankshares Inc. ("American National") (NASDAQ:AMNB), parent company of American National Bank and Trust Company, today announced net income of $5,980,000 for the second quarter 2018 compared to $4,279,000 for the second quarter of 2017, a $1,701,000 or 39.8% increase.  Basic net income per common share was $0.69 for the 2018 quarter compared to $0.50 for the 2017 quarter. Diluted net income per common share was $0.69 for the 2018 quarter compared to $0.49 for the 2017 quarter. Net income for the second quarter of 2018 produced annualized returns on average assets of 1.31%, on average equity of 11.27%, and on average tangible equity of 14.44%.

Net income for the first six months of 2018 was $11,792,000 compared to $8,342,000 for the comparable period of 2017, a $3,450,000 or 41.4% increase. Basic net income per common share was $1.36 for the 2018 period compared to $0.97 for the 2017 period. Diluted net income per common share was $1.36 for the 2018 period compared to $0.96 for the 2017 period.

Financial Performance and Overview
Jeffrey V. Haley, President and Chief Executive Officer, reported, "We are very pleased with our earnings for the second quarter of 2018. Earnings were strong, $6.0 million compared to $4.3 million for the comparable quarter of 2017, a 39.8% increase. There were three drivers of this increase: greater net interest income, lower loan loss provision, and lower corporate income taxes.

"The primary driver was higher net interest income, resulting mostly from higher loan yields and greater loan volume. Average loan volume for the 2018 quarter was up $63.7 million or 5.0% compared to the second quarter of 2017. For the second quarter of 2018 compared to second quarter of 2017, end of period loans are up $50.7 million or 3.9%.

"We expect loan growth to continue in the remainder of 2018, though likely at a reduced pace compared to 2017.

"The nature of competition for good quality loan customers has changed radically in recent quarters. We're seeing some of our competitors loosen underwriting standards and make pricing, term, and structure concessions that we believe are not consistent with our credit standards. We've made a corporate decision that there are some fundamental aspects of our credit philosophy that are not subject to negotiation or waiver. Consequently, we did not pursue a number of otherwise attractive deals.

"Deposits have grown substantially. Average interest bearing deposits for the 2018 quarter were $97.9 million or 9.3% greater than the comparable quarter of 2017. Average noninterest bearing deposits were $33.6 million or 8.7% greater than the comparable quarter of 2017. For the second quarter of 2018 compared to second quarter of 2017, end of period deposits are up $97.9 million or 6.7%.

"The market for loans and deposits is hyper-competitive. Market pressure drives yields on loans down and rates on deposits up. This puts continuing pressure on our net interest margin. Our challenge is to maintain quality growth in assets and deposits and, at the same time, protect and, hopefully, improve our net interest margin. Our margin for the 2018 quarter was 3.50%, a four basis point decrease from the 2017 quarter.

"The second driver of the earnings increase was a significant reduction in the need for loan loss provision. Provision expense in the second quarter of 2018 was $380,000 less than the comparable quarter of 2017. Our need for current provision expense was mitigated by slower growth in loans, continued extraordinary asset quality metrics, and improvements in various qualitative factors we use in computing our allowance for loan losses.

"The other driver on the earnings increase was a substantial decrease in our corporate tax rate. The tax cut, enacted in December 2017, reduced our statutory rate to 21% from 35% and our effective rate to 19.0% from 31.0%."

Haley concluded, "American National is very optimistic about our bank, our markets and our industry. We believe the key to long-term success in our business is a careful, methodical approach to intelligent risk taking. We have eleven decades of practical experience doing just that."
   
Capital
American National's capital ratios remain strong and exceed all regulatory requirements. 

For the quarter ended June 30, 2018, average shareholders' equity was 11.62% of average assets, compared to 11.91% for the quarter ended June 30, 2017.

Book value per common share was $24.50 at June 30, 2018, compared to $23.96 at June 30, 2017.

Tangible book value per common share was $19.34 at June 30, 2018, compared to $18.72 at June 30, 2017.

Credit Quality Measurements
Non-performing assets represented 0.18% of total assets at June 30, 2018, compared to 0.31% at June 30, 2017. 

Annualized net charge offs to average loans were one basis point (0.01%) for the second quarter compared to net recoveries of six basis points (0.06%) for the same quarter in 2017.

Other real estate owned was $1,124,000 compared to $1,686,000 at June 30, 2017, a decrease of $562,000 or 33.3%.

Acquisition Accounting 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.  The impact of these adjustments is summarized below (dollars in thousands):

                 
  For the quarter ended June 30,    2018    2017
  Net Interest Income   $   377   $   595
  Income Before Income Taxes   $   300   $   392
           
  For the six months ended June 30,     2018     2017
  Net Interest Income   $   804   $   1,029
  Income Before Income Taxes   $   650   $   661

The second quarter of 2018 includes $231,000 in cash basis accretion income related to the early payoff of several acquired loans, compared to $209,000 for the comparable quarter of 2017.

Net Interest Income
Net interest income before the provision for loan losses increased to $14,788,000 in the second quarter of 2018 from $13,912,000 in the second quarter of 2017, an increase of $876,000 or 6.3%.  

For the 2018 quarter, the net interest margin was 3.50% compared to 3.54% for the same quarter in 2017, a decrease of four basis points (0.04%).  The decrease in net interest margin related mostly to increases in the cost of deposits.

Provision for Loan Losses and Allowance for Loan Losses
Provision expense for the second quarter of 2018 was a $30,000 credit compared to a $350,000 expense for the second quarter of 2017. The second quarter 2018 credit provision was related to an adjustment on the specific reserve for an impaired loan.

The allowance for loan losses as a percentage of total loans was 1.01% at June 30, 2018 compared to 1.06% at June 30, 2017.

There was growth in loans outstanding in the second quarter 2018, a net of $18.2 million or 1.4%. The need for additions to the allowance for loan losses was mitigated by improvement in various qualitative factors used in the determination of the allowance, notably national and local economic conditions, and continued favorable asset quality metrics.

Noninterest Income 
Noninterest income totaled $3,563,000 in the second quarter of 2018, compared with $3,348,000 in the second quarter of 2017, an increase of $215,000 or 6.4%.  Most income categories improved compared to the prior year quarter. Income from Small Business Investment Companies improved $165,000, as a result of a distribution from one of our investments. This income category is inherently volatile and unpredictable.

Noninterest Expense
Noninterest expense totaled $11,002,000 in the second quarter of 2018, compared to $10,711,000 in the second quarter of 2017, an increase of $291,000 or 2.7%. 

Most of the increase was related to salaries, which increased $362,000 or 7.6%.  The change was driven by normal payroll and compensation related increases.

Income Taxes
Income tax expense was favorably impacted by the December 2017 change in corporate tax rates. The effective tax rate for the second quarter of 2018 was 19.0%, compared to 31.0% for the second quarter of 2017. The 2018 quarter was also favorably impacted by the exercise of stock options, which generated a tax benefit of $95,000.

About American National
American National is a multi-state bank holding company with total assets of approximately $1.8 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 and two loan production offices. American National Bank also manages an additional $837 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.

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 or laws; significant changes in securities markets; 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.

Contact: William W. Traynham, Chief Financial Officer
  434-773-2242 
  traynhamw@amnb.com
   


 American National Bankshares Inc. 
 Consolidated Balance Sheets 
 (Dollars in thousands, except per share data) 
Unaudited
         
    June 30
ASSETS     2018       2017  
         
Cash and due from banks   $   24,042     $   23,765  
Interest-bearing deposits in other banks       9,300         62,164  
         
Equity securities, at fair value       2,177         -  
Securities available for sale, at fair value       341,247         280,503  
Restricted stock, at cost       5,463         5,501  
Loans held for sale       2,296         2,379  
         
Loans       1,339,379         1,288,693  
Less allowance for loan losses       (13,508 )       (13,632 )
Net Loans       1,325,871         1,275,061  
         
Premises and equipment, net       25,879         26,265  
Other real estate owned, net       1,124         1,686  
Goodwill       43,872         43,872  
Core deposit intangibles, net       1,037         1,351  
Bank owned life insurance       18,674         18,381  
Accrued interest receivable and other assets       23,549         23,545  
         
Total assets   $   1,824,531     $   1,764,473  
         
         
Liabilities        
Demand deposits -- noninterest-bearing   $   420,795     $   390,603  
Demand deposits -- interest-bearing       251,056         218,714  
Money market deposits       383,963         339,106  
Savings deposits       132,839         125,237  
Time deposits       372,093         389,181  
Total deposits       1,560,746         1,462,841  
         
Short-term borrowings:        
Customer repurchase agreements       6,776         48,282  
Other short-term borrowings       5,500         -  
Long-term borrowings       -         9,991  
Junior subordinated debt       27,876         27,775  
Accrued interest payable and other liabilities       10,285         8,531  
Total liabilities       1,611,183         1,557,420  
         
Shareholders' equity        
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding       -         -  
Common stock, $1 par, 20,000,000 shares authorized, 8,708,127 shares outstanding at June 30, 2018 and 8,642,913 shares outstanding at June 30, 2017       8,654         8,595  
Capital in excess of par value       77,496         75,691  
Retained earnings       135,108         123,795  
Accumulated other comprehensive loss, net       (7,910 )       (1,028 )
Total shareholders' equity       213,348         207,053  
         
Total liabilities and shareholders' equity   $   1,824,531     $   1,764,473  
         


American National Bankshares Inc. 
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Unaudited
                 
    Three Months Ended   Six Months Ended
    June 30   June 30
      2018       2017     2018       2017
Interest and Dividend Income:                 
Interest and fees on loans   $   14,766     $   13,752   $   29,423     $   26,456
Interest on federal funds sold       -         -       -         -
Interest and dividends on securities:                
Taxable       1,540         1,133       2,864         2,287
Tax-exempt       423         509       842         1,144
Dividends       78         84       158         163
Other interest income       185         125       373         234
Total interest and dividend income       16,992         15,603       33,660         30,284
                 
Interest Expense:                
Interest on deposits       1,873         1,352       3,698         2,552
Interest on short-term borrowings       2         14       12         42
Interest on long-term borrowings       -         81       -         161
Interest on junior subordinated debt       329         244       619         483
Total interest expense       2,204         1,691       4,329         3,238
                 
Net Interest Income        14,788         13,912       29,331         27,046
Provision for loan losses       (30 )       350       (74 )       650
                 
                 
Net Interest Income After Provision for Loan Losses        14,818         13,562       29,405         26,396
                 
Noninterest Income:                 
Trust fees       945         908       1,874         1,820
Service charges on deposit accounts       592         607       1,204         1,196
Other fees and commissions       679         627       1,321         1,234
Mortgage banking income       491         462       941         991
Securities gains, net       289         331       410         590
Brokerage fees       209         192       431         384
Income from Small Business Investment Companies       171         6       326         32
Other       187         215       389         372
Total noninterest income       3,563         3,348       6,896         6,619
                 
Noninterest Expense:                 
Salaries       5,095         4,733       10,092         9,532
Employee benefits       1,111         1,061       2,286         2,181
Occupancy and equipment       1,100         1,148       2,228         2,216
FDIC assessment       132         134       278         263
Bank franchise tax       291         263       572         519
Core deposit intangible amortization       77         203       154         368
Data processing       467         502       889         989
Software       354         271       659         550
Other real estate owned, net       25         68       55         111
Other       2,350         2,328       4,491         4,423
Total noninterest expense       11,002         10,711       21,704         21,152
                 
Income Before Income Taxes       7,379         6,199       14,597         11,863
Income Taxes       1,399         1,920       2,805         3,521
Net Income    $   5,980     $   4,279   $   11,792     $   8,342
                 
Net Income Per Common Share:                 
Basic   $   0.69     $   0.50   $   1.36     $   0.97
Diluted   $   0.69     $   0.49   $   1.36     $   0.96
Average Common Shares Outstanding:                 
Basic       8,692,107         8,640,648       8,680,739         8,636,954
Diluted       8,704,726         8,659,165       8,695,860         8,655,173
                 


American National Bankshares Inc.                      
Financial Highlights                        
Unaudited                          
                             
(Dollars in thousands, except per share data)   
        2nd Qtr   1st Qtr   2nd Qtr     YTD   YTD  
          2018       2018       2017         2018       2017    
EARNINGS                          
Interest income   $    16,992     $   16,668     $   15,603       $    33,660     $   30,284    
Interest expense     2,204       2,125       1,691         4,329       3,238    
Net interest income   14,788       14,543       13,912         29,331       27,046    
Provision for loan losses     (30 )       (44 )       350           (74 )       650    
Noninterest income   3,563       3,333       3,348         6,896       6,619    
Noninterest expense   11,002       10,702       10,711         21,704       21,152    
Income taxes     1,399       1,406       1,920         2,805       3,521    
Net income     5,980       5,812       4,279         11,792       8,342    
                             
PER COMMON SHARE                       
Income per share - basic $    0.69     $   0.67     $   0.50       $    1.36     $   0.97    
Income per share - diluted     0.69         0.67         0.49           1.36         0.96    
Cash dividends paid     0.25         0.25         0.24           0.50         0.48    
Book value per share     24.50         24.19         23.96           24.50         23.96    
Book value per share - tangible (a)     19.34         19.00         18.72           19.34         18.72    
Closing market price     40.00         37.60         36.95           40.00         36.95    
                             
FINANCIAL RATIOS                        
Return on average assets   1.31   %   1.28   %   0.99   %   1.29   %   0.97   %
Return on average equity   11.27       11.10       8.28         11.19       8.13    
Return on average tangible equity (b)   14.44       14.29       10.93         14.37       10.75    
Average equity to average assets   11.62       11.52       11.91         11.57       11.94    
Tangible equity to tangible assets (a)   9.46       9.30       9.41         9.46       9.41    
Net interest margin, taxable equivalent   3.50       3.46       3.54         3.48       3.49    
Efficiency ratio (c)     60.38       59.79       61.76         60.09       62.35    
Effective tax rate     18.96       19.48       30.97         19.22       29.68    
                             
PERIOD-END BALANCES                      
Securities   $    348,887     $   317,889     $   286,004       $    348,887     $   286,004    
Loans held for sale     2,296         1,792         2,379           2,296         2,379    
Loans, net of unearned income     1,339,379         1,321,221         1,288,693           1,339,379         1,288,693    
Goodwill and other intangibles     44,909         44,986         45,223           44,909         45,223    
Assets         1,824,531         1,817,574         1,764,473           1,824,531         1,764,473    
Assets - tangible (a)     1,779,622         1,772,588         1,719,250           1,779,622         1,719,250    
Deposits       1,560,746         1,559,251         1,462,841           1,560,746         1,462,841    
Customer repurchase agreements     6,776         10,466         48,282           6,776         48,282    
Other short-term borrowings     5,500         -         -           5,500         -    
Long-term borrowings     27,876         27,851         37,766           27,876         37,766    
Shareholders' equity     213,348         209,840         207,053           213,348         207,053    
Shareholders' equity - tangible (a)     168,439         164,854         161,830           168,439         161,830    
                             
AVERAGE BALANCES                      
Securities (d)   $    342,486     $   312,783     $   295,863       $    328,143     $   310,146    
Loans held for sale     2,616         2,037         2,426           2,328         2,420    
Loans, net of unearned income     1,321,812         1,338,058         1,258,346           1,329,890         1,227,127    
Interest-earning assets     1,707,223         1,698,451         1,610,132           1,703,287         1,592,395    
Goodwill and other intangibles     44,956         45,031         45,337           44,993         45,427    
Assets         1,825,860         1,818,429         1,736,686           1,822,165         1,718,310    
Assets - tangible (a)     1,780,904         1,773,398         1,691,349           1,777,172         1,672,883    
Interest-bearing deposits     1,145,701         1,157,122         1,047,828           1,151,380         1,034,542    
Deposits       1,565,321         1,557,149         1,433,852           1,561,258         1,413,100    
Customer repurchase agreements     11,347         12,247         49,239           11,795         47,184    
Other short-term borrowings     247         2,183         -           1,210         5,884    
Long-term borrowings     27,861         27,836         37,748           27,848         37,733    
Shareholders' equity     212,256         209,433         206,774           210,852         205,126    
Shareholders' equity - tangible (a)     167,300         164,402         161,437           165,859         159,699    
                             
American National Bankshares Inc.                      
Financial Highlights                        
Unaudited                          
                             
(Dollars in thousands, except per share data) 
        2nd Qtr   1st Qtr   2nd Qtr     YTD   YTD  
          2018       2018       2017         2018       2017    
CAPITAL                           
Average shares outstanding - basic   8,692,107         8,669,728       8,640,648         8,680,739       8,636,954    
Average shares outstanding - diluted   8,704,726         8,687,351       8,659,165         8,695,860       8,655,173    
                             
ALLOWANCE FOR LOAN LOSSES                      
Beginning balance $    13,575     $   13,603     $   13,108       $    13,603     $   12,801    
Provision for loan losses   (30 )       (44 )     350         (74 )     650    
Charge-offs     (130 )     (44 )     (85 )       (174 )     (134 )  
Recoveries     93       60       259         153       315    
Ending balance   $    13,508     $   13,575     $   13,632       $    13,508     $   13,632    
                             
LOANS                          
Construction and land development $    96,740     $   93,031     $   132,322       $    96,740     $   132,322    
Commercial real estate     633,128         624,164         590,093           633,128         590,093    
Residential real estate     207,374         207,256         211,305           207,374         211,305    
Home equity       105,558         108,024         113,580           105,558         113,580    
Commercial and industrial     291,454         284,257         236,418           291,454         236,418    
Consumer       5,125         4,489         4,975           5,125         4,975    
Total     $    1,339,379     $   1,321,221     $   1,288,693       $   1,339,379     $   1,288,693    
                             
NONPERFORMING ASSETS AT PERIOD-END                      
Nonperforming loans:                      
90 days past due and accruing $    229     $   273     $   1,611       $    229     $   1,611    
Nonaccrual     1,861       1,598       2,117         1,861       2,117    
Other real estate owned   1,124       1,716       1,686         1,124       1,686    
Nonperforming assets $    3,214     $   3,587     $   5,414       $    3,214     $   5,414    
                             
ASSET QUALITY RATIOS                      
Allowance for loan losses to total loans   1.01   %   1.03   %   1.06   %   1.01   %   1.06   %
Allowance for loan losses to nonperforming loans   646.32       725.55       365.67         646.32       365.67    
Nonperforming assets to total assets   0.18       0.20       0.31         0.18       0.31    
Nonperforming loans to total loans   0.16       0.14       0.29         0.16       0.29    
Annualized net charge-offs (recoveries) to average loans   0.01       0.00       (0.06 )       0.00       (0.03 )  
                             
                             
OTHER DATA                        
Fiduciary assets at period-end (e) (f) $    510,552     $   509,668     $   520,861       $    510,552     $   520,861    
Retail brokerage assets at period-end (e) (f) $    326,692     $   316,064     $   297,463       $    326,692     $   297,463    
Number full-time equivalent employees (g)     323         326         328           323         328    
Number of full service offices     26         26         27           26         27    
Number of loan production offices     2         2         2           2         2    
Number of ATM's       34         34         34           34         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) - Average does not include unrealized gains and losses.
  (e) - Market value.
  (f) - Assets are not owned by the Company and are not reflected in the consolidated balance sheet.           
  (g) - Average for quarter.                      
                             

 

Net Interest Income Analysis
For the Three Months Ended June 30, 2018 and 2017
(Dollars in thousands)
Unaudited
                               
                Interest          
        Average Balance   Income/Expense   Yield/Rate  
                               
        2018   2017   2018   2017   2018   2017  
Loans:                          
  Commercial $   267,996   $   229,690   $   2,652   $   2,241   3.97 % 3.91 %
  Real estate     1,052,105       1,026,010       12,087       11,502   4.60   4.48  
  Consumer     4,327       5,072       77       89   7.14   7.04  
    Total loans     1,324,428       1,260,772       14,816       13,832   4.48   4.39  
                               
Securities:                        
  Federal agencies & GSEs     127,033       96,339       707       454   2.23   1.89  
  Mortgage-backed & CMOs     108,789       80,003       609       412   2.24   2.06  
  State and municipal     91,636       104,115       653       938   2.85   3.60  
  Other       15,028       15,406       176       179   4.68   4.65  
    Total securities     342,486       295,863       2,145       1,983   2.51   2.68  
                               
Deposits in other banks     40,309       53,497       185       125   1.84   0.94  
                               
  Total interest-earning assets     1,707,223       1,610,132       17,146       15,940   4.02   3.96  
                               
Non-earning assets     118,637       126,554                  
                               
    Total assets $   1,825,860   $   1,736,686                  
                               
Deposits:                        
  Demand $   246,493   $   219,743       13       11   0.02   0.02  
  Money market     395,135       322,737       802       342   0.81   0.43  
  Savings     132,190       125,134       10       9   0.03   0.03  
  Time       371,883       380,214       1,048       990   1.13   1.04  
    Total deposits     1,145,701       1,047,828       1,873       1,352   0.66   0.52  
                               
Customer repurchase agreements     11,347       49,239       1       14   0.04   0.11  
Other short-term borrowings     247       -       1       -   1.62     -  
Long-term borrowings     27,861       37,748       329       325   4.72   3.44  
  Total interest-bearing liabilities
    1,185,156       1,134,815       2,204       1,691   0.75   0.60  
                               
Noninterest bearing demand deposits     419,620       386,024                  
Other liabilities     8,828       9,073                  
Shareholders' equity     212,256       206,774                  
  Total liabilities and shareholders' equity $   1,825,860   $   1,736,686                  
                               
Interest rate spread                 3.27 % 3.36 %
Net interest margin                 3.50 % 3.54 %
                               
Net interest income (taxable equivalent basis)           14,942       14,249          
Less: Taxable equivalent adjustment (a)           154       337          
Net interest income         $   14,788   $   13,912          
                               
                               
Notes:                          
                               
  (a) - Calculated using 21% and 35% statutory tax rate in 2018 and 2017, respectively, due to tax rate change.  
                               

 

Net Interest Income Analysis
For the Six Months Ended June 30, 2018 and 2017
(Dollars in thousands)
Unaudited
                               
                Interest          
        Average Balance   Income/Expense   Yield/Rate  
                               
         2018    2017    2018    2017   2018   2017  
Loans:                          
  Commercial $   263,300   $   224,833   $   5,096   $   4,294   3.90 % 3.85 %
  Real estate     1,064,605       999,484       24,277       22,126   4.56   4.43  
  Consumer     4,313       5,230       153       181   7.15   6.98  
    Total loans     1,332,218       1,229,547       29,526       26,601   4.44   4.33  
                               
Securities:                        
  Federal agencies & GSEs     115,182       96,651       1,224       896   2.13   1.85  
  Mortgage-backed & CMOs     108,808       79,033       1,208       825   2.22   2.09  
  State and municipal     89,000       117,681       1,287       2,090   2.89   3.55  
  Other       15,153       16,781       351       365   4.63   4.35  
    Total securities     328,143       310,146       4,070       4,176   2.48   2.69  
                               
Deposits in other banks     42,926       52,702       373       234   1.75   0.90  
                               
  Total interest-earning assets     1,703,287       1,592,395       33,969       31,011   3.99   3.90  
                               
Non-earning assets     118,878       125,915                  
                               
    Total assets $   1,822,165   $   1,718,310                  
                               
Deposits:                        
  Demand $   239,477   $   217,847       24       21   0.02   0.02  
  Money market     402,612       314,235       1,585       583   0.79   0.37  
  Savings     131,453       124,694       20       19   0.03   0.03  
  Time       377,838       377,766       2,069       1,929   1.10   1.03  
    Total deposits     1,151,380       1,034,542       3,698       2,552   0.65   0.50  
                               
Customer repurchase agreements     11,795       47,184       2       15   0.03   0.06  
Other short-term borrowings     1,210       5,884       10       27   1.65   0.92  
Long-term borrowings     27,848       37,733       619       644   4.45   3.41  
  Total interest-bearing liabilities
    1,192,233       1,125,343       4,329       3,238   0.73   0.58  
                               
Noninterest bearing demand deposits     409,878       378,558                  
Other liabilities     9,202       9,283                  
Shareholders' equity     210,852       205,126                  
  Total liabilities and shareholders' equity   $   1,822,165   $   1,718,310                  
                               
Interest rate spread                 3.26 % 3.32 %
Net interest margin                 3.48 % 3.49 %
                               
Net interest income (taxable equivalent basis)           29,640       27,773          
Less: Taxable equivalent adjustment (a)           309       727          
Net interest income         $   29,331   $   27,046          
                               
                               
Notes:                          
                               
  (a) - Calculated using 21% and 35% statutory tax rate in 2018 and 2017, respectively, due to tax rate change.  
                               

 

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