DANVILLE, VA--(Marketwire - January 24, 2011) - American National Bankshares Inc. (
NASDAQ:
AMNB)
-- Q4 net income of $1,851,000 and diluted EPS of $0.30 per share
-- Q4 net interest margin 3.67%
-- Average shareholders' equity of $111 million represents 13.12% of
average assets
American National Bankshares Inc. (
NASDAQ:
AMNB), parent company of
American National Bank and Trust Company, today announced fourth quarter
2010 net income of $1,851,000 compared to $2,169,000 for the fourth quarter
in 2009, a 14.7% decrease. Basic earnings per share were $0.30 for the
2010 quarter compared to $0.36 for the 2009 quarter. Diluted earnings per
share were $0.30 for the 2010 quarter compared to $0.35 for the 2009
quarter. This quarterly net income produced a return on average assets of
0.88%, a return on average equity of 6.69%, and a return on tangible equity
of 8.83%.
Net income was $8,278,000 for 2010 compared to $6,810,000 for 2009, a 21.6%
increase. Earnings per share, basic and diluted, were $1.35 for 2010
compared to $1.12, basic and diluted, for 2009. This net income produced a
return on average assets of 1.00%, a return on average equity of 7.59%, and
a return on tangible equity of 10.05%.
Financial Performance and Overview
Charles H. Majors, President and Chief Executive Officer, stated, "American
National had an eventful and productive fourth quarter and 2010. Our
income for the quarter was $1.85 million, a 14.7% decrease compared to the
same quarter in 2009. This decline was driven by a variety of factors, most
notably initial expenses associated with our pending merger with
MidCarolina Financial Corporation. We consider those costs to be the
beginning of an investment in a new and even better American National
Bankshares Inc.
"For the year just ended, our net income was $8.28 million, a 21.6%
increase over 2009.
"Trust income was up $238,000 or 7.5% for 2010 as a result of asset growth
and improvement in the stock market.
"Service charge income declined $188,000 or 9.0% mostly as a result of
declining overdraft fee income, a trend we've seen over the past few years
and expect to continue.
"Secondary market mortgage operations had another good a year in 2010 based
on a short extension of the new home buyer tax credit, continuing low
interest rates and a growing demand for refinanced loans. We anticipate a
slowdown in this revenue in 2011.
"The largest single factor impacting the change in noninterest income
between years was a $1.2 million write down early in 2009 related to the
value of foreclosed real estate.
"Our noninterest expenses for 2010 decreased $490,000 or 2.1%, compared to
2009. This improvement was mostly related to lower costs in salaries and
benefits.
"During 2010, we continued to experience historically low interest rates
and an ongoing deleveraging in the economy. However, during the year we saw
a bottoming out of our loan portfolio and small increases in volume
starting in the second quarter and continuing through year end. Overall,
for the year, the loan portfolio shrank $7.1 million or 1.4%. We are
anticipating modest, single digit growth in 2011.
"Also during 2010, we experienced over $35 million or 5.9% growth in
deposits, most in retail time deposits. We expect that growth to continue
in 2011 and plan to make every effort to grow our balances more for
transaction and noninterest bearing accounts."
Majors concluded, "We are just beginning to see signs of an economic
recovery. We expect it will be slow and probably uneven, but our Bank is
ready, willing and able to help our market areas move quickly to increasing
levels of economic activity. As we begin a new year with some careful
optimism about business activity, we are very optimistic about the
opportunities for market area growth and business development that will
come from our pending merger with MidCarolina Financial Corporation, which
we hope to have approved by shareholders and regulators later in 2011."
Capital
American National's capital ratios are among the highest in its peer group.
For the fourth quarter of 2010, average shareholders' equity was 13.12% of
average assets.
Credit Quality Measurements
Nonperforming assets ($2.6 million of non-accrual loans and $3.7 million of
foreclosed real estate) were below industry averages and represented 0.76%
of total assets at December 31, 2010, compared to 0.87% at December 31,
2009. During the fourth quarter, total nonperforming assets decreased $1.6
million.
The allowance for loans losses was $8.4 million or 1.62% of loans at
December 31, 2010, compared to $8.2 million or 1.55% at December 31, 2009.
Annualized net charge offs were 0.47% for the fourth quarter 2010 compared
to 0.31% for 2009 quarter.
Net charge offs were 0.24% for the entire year 2010 compared to 0.24% for
2009.
Net Interest Income
Net interest income, on a taxable equivalent basis, decreased to $7,065,000
in the fourth quarter of 2010 from $7,208,000 in fourth quarter of 2009, a
decrease of 1.98%. Net interest income has been adversely impacted by low
market interest rates and shifts between categories of earning assets. The
Bank has mitigated the impact by reducing the cost of its interest bearing
liabilities. The Company's net interest margin declined 21 basis points
(0.21%) for the fourth quarter 2010 compared to the fourth quarter 2009.
However, for the year, the margin declined three basis points (0.03%) from
the prior year.
Noninterest Income
Noninterest income totaled $2,602,000 in the fourth quarter of 2010
compared with $1,937,000 in the fourth quarter of 2009, a 34.3% increase.
Much of that increase was attributable to a $450,000 in gain on the sale of
bank owned real estate, reflected in other income.
Noninterest Expense
Noninterest expense totaled $6,202,000 in the fourth quarter of 2010,
compared to $5,524,000 in the fourth quarter of 2009, a 12.3% increase.
The major factor impacting noninterest expense was initial costs associated
with the pending merger with MidCarolina Financial. During the fourth
quarter, the Bank incurred merger-related costs of $358,000, reflected in
other noninterest expenses, which accounted for more than half the increase
in costs. Most of these merger related expenses are not tax deductible, so
a higher income tax provision resulted.
Merger with MidCarolina Financial Corporation
On December 16, 2010, American National announced the signing of an
agreement which calls for MidCarolina Financial Corporation to merge with
American National in an all stock transaction. In connection with the
proposed transaction, American National will file with the Securities and
Exchange Commission (the "SEC") a registration statement on Form S-4 to
register the shares of American National stock to be issued to the
shareholders of MidCarolina. The registration statement will include a
joint proxy statement/prospectus which will be sent to the shareholders of
American National and MidCarolina seeking the requisite approvals under the
merger Agreement. In addition, each of American National and MidCarolina
may file other relevant documents concerning the proposed transaction with
the SEC.
AMERICAN NATIONAL AND MIDCAROLINA URGE INVESTORS AND SECURITY HOLDERS TO
READ THE REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY
STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT AND ANY
OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE
PROPOSED TRANSACTION BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT
AMERICAN NATIONAL, MIDCAROLINA AND THE PROPOSED TRANSACTION. Investors and
security holders may obtain free copies of these documents, when they
become available, through the website maintained by the SEC at
www.sec.gov.
Free copies of the joint proxy statement/prospectus, when it becomes
available, also may be obtained by directing a request by telephone or mail
to American National Bankshares Inc., 628 Main Street, Danville, Virginia
24541, Attention: Investor Relations (telephone: (434) 792-5111) or
MidCarolina Financial Corporation, 3101 South Church Street, Burlington,
North Carolina 27216, Attention: Investor Relations (telephone: (336)
538-1600) or by accessing American National's website at
www.amnb.com under
"Investments" or MidCarolina's website at
www.midcarolinabank.com under
"Investor Relations." The information on American National's and
MidCarolina's websites is not, and shall not be deemed to be, a part of
this report or incorporated into other filings either company makes with
the SEC.
American National and MidCarolina and their respective directors, executive
officers and members of management may be deemed to be participants in the
solicitation of proxies from the shareholders of American National and/or
MidCarolina in connection with the merger. Information about the directors
and executive officers of American National is set forth in the proxy
statement for American National's 2010 annual meeting of shareholders filed
with the SEC on April 2, 2010. Information about the directors and
executive officers of MidCarolina is set forth in the proxy statement for
MidCarolina's 2010 annual meeting of shareholders filed with the SEC on
April 23, 2010. Additional information regarding the interests of these
participants and other persons who may be deemed participants in the merger
may be obtained by reading the joint proxy statement/prospectus regarding
the merger when it becomes available.
About American National
American National Bankshares Inc. is a bank holding company with assets of
$834 million. Headquartered in Danville, Virginia, it is the holding
company of American National Bank and Trust Company, a community bank
serving Southern and Central Virginia and the northern portion of Central
North Carolina with eighteen banking offices. The Bank also manages an
additional $417 million of assets in its Trust and Investment Services
Division. Additional information is available on the Bank's website at
www.amnb.com. The shares of American National Bankshares Inc. are traded
on the NASDAQ Global Select Market under the symbol "AMNB."
Forward-Looking Statements
This press release may contain "forward-looking statements," within the
meaning of federal securities laws that involve significant risks and
uncertainties. Statements herein are based on certain assumptions and
analyses by the Company 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 regarding acquisitions and
dispositions. Consequently, all forward-looking statements made herein are
qualified by these cautionary statements and the cautionary language in the
Company's most recent Form 10-K report and other documents filed with the
Securities and Exchange Commission. American National Bankshares Inc. 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. and Subsidiaries
Consolidated Balance Sheets
(Dollars in thousands, except share and per share data)
Unaudited
December 31
--------------------
ASSETS 2010 2009
--------- ---------
Cash and due from banks $ 9,547 $ 13,250
Interest-bearing deposits in other banks 8,967 10,693
Securities available for sale, at fair value 228,295 188,795
Securities held to maturity 3,334 6,529
--------- ---------
Total securities 231,629 195,324
--------- ---------
Restricted stock, at cost 4,062 4,362
Loans held for sale 3,135 2,490
Loans 520,781 527,991
Less allowance for loan losses (8,420) (8,166)
--------- ---------
Net Loans 512,361 519,825
--------- ---------
Premises and equipment, net 19,509 19,195
Other real estate owned, net 3,716 3,414
Goodwill 22,468 22,468
Core deposit intangibles, net 1,320 1,698
Accrued interest receivable and other assets 16,950 16,254
--------- ---------
Total assets $ 833,664 $ 808,973
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Demand deposits -- noninterest-bearing $ 105,240 $ 101,735
Demand deposits -- interest-bearing 90,012 97,025
Money market deposits 59,891 75,554
Savings deposits 62,522 61,873
Time deposits 322,433 268,086
--------- ---------
Total deposits 640,098 604,273
Short-term borrowings:
Customer repurchase agreements 47,084 65,929
Other short-term borrowings 6,110 -
Long-term borrowings 8,488 8,638
Trust preferred capital notes 20,619 20,619
Accrued interest payable and other liabilities 3,178 3,125
--------- ---------
Total liabilities 725,577 702,584
--------- ---------
Shareholders' equity:
Common stock, $1 par, 20,000,000 shares
authorized, 6,127,735 shares outstanding at
December 31, 2010 and 6,110,335 shares outstanding
at December 31, 2009 6,128 6,110
Capital in excess of par value 27,268 26,962
Retained earnings 74,850 72,208
Accumulated other comprehensive income (loss), net (159) 1,109
--------- ---------
Total shareholders' equity 108,087 106,389
--------- ---------
Total liabilities and shareholders' equity $ 833,664 $ 808,973
========= =========
American National Bankshares Inc. and Subsidiaries
Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
Unaudited
Three Months Ended Twelve Months Ended
December 31 December 31
-------------------- --------------------
2010 2009 2010 2009
--------- --------- --------- ---------
Interest and Dividend Income:
Interest and fees on loans $ 6,960 $ 7,445 $ 28,180 $ 31,062
Interest and dividends on
securities:
Taxable 1,198 1,259 5,042 4,853
Tax-exempt 647 437 2,288 1,673
Dividends 24 25 95 95
Other interest income 92 91 360 378
--------- --------- --------- ---------
Total interest and
dividend income 8,921 9,257 35,965 38,061
--------- --------- --------- ---------
Interest Expense:
Interest on deposits 1,704 1,771 6,708 8,399
Interest on short-term
borrowings 85 127 382 675
Interest on long-term
borrowings 64 66 256 342
Interest on trust preferred
capital notes 343 343 1,373 1,373
--------- --------- --------- ---------
Total interest expense 2,196 2,307 8,719 10,789
--------- --------- --------- ---------
Net Interest Income 6,725 6,950 27,246 27,272
Provision for loan losses 485 328 1,490 1,662
--------- --------- --------- ---------
Net Interest Income After
Provision for Loan Losses 6,240 6,622 25,756 25,610
--------- --------- --------- ---------
Noninterest Income:
Trust fees 936 815 3,391 3,153
Service charges on deposit
accounts 457 536 1,897 2,085
Other fees and commissions 307 264 1,163 1,014
Mortgage banking income 543 390 1,560 1,605
Securities gains, net 84 1 126 3
Foreclosed real estate
(losses), net (304) (253) (583) (1,475)
Other 579 184 977 658
--------- --------- --------- ---------
Total noninterest income 2,602 1,937 8,531 7,043
--------- --------- --------- ---------
Noninterest Expense:
Salaries 2,789 2,314 10,379 10,048
Employee benefits 618 750 2,455 3,201
Occupancy and equipment 725 762 2,934 2,927
FDIC assessment 206 202 803 1,186
Bank franchise tax 167 159 670 642
Core deposit intangible
amortization 94 94 377 377
Other 1,603 1,243 5,210 4,937
--------- --------- --------- ---------
Total noninterest expense 6,202 5,524 22,828 23,318
--------- --------- --------- ---------
Income Before Income Taxes 2,640 3,035 11,459 9,335
Income Taxes 789 866 3,181 2,525
--------- --------- --------- ---------
Net Income $ 1,851 $ 2,169 $ 8,278 $ 6,810
========= ========= ========= =========
Net Income Per Common Share:
Basic $ 0.30 $ 0.36 $ 1.35 $ 1.12
Diluted $ 0.30 $ 0.35 $ 1.35 $ 1.12
Average Common Shares
Outstanding:
Basic 6,126,817 6,108,340 6,123,870 6,097,810
Diluted 6,141,123 6,116,800 6,131,650 6,102,895
American National Bankshares Inc. and Subsidiaries
Financial Highlights
(In thousands, except
share, ratio and
nonfinancial data,
unaudited) 4th Qtr 3rd Qtr 4th Qtr YTD YTD
2010 2010 2009 2010 2009
--------- --------- --------- --------- ---------
EARNINGS
Interest income $ 8,921 $ 8,982 $ 9,257 $ 35,965 $ 38,061
Interest expense 2,196 2,223 2,307 8,719 10,789
Net interest
income 6,725 6,759 6,950 27,246 27,272
Provision for
loan losses 485 435 328 1,490 1,662
Noninterest
income 2,602 2,246 1,937 8,531 7,043
Noninterest
expense 6,202 5,536 5,524 22,828 23,318
Income taxes 789 806 866 3,181 2,525
Net income 1,851 2,228 2,169 8,278 6,810
PER COMMON SHARE
Earnings per
share - basic $ 0.30 $ 0.36 $ 0.36 $ 1.35 $ 1.12
Earnings per
share - diluted 0.30 0.36 0.35 1.35 1.12
Cash dividends
declared 0.23 0.23 0.23 0.92 0.92
Book value per
share 17.64 18.10 17.41 17.64 17.41
Book value per
share - tangible
(a) 13.76 14.20 13.46 13.76 13.46
Closing market
price 23.55 21.94 21.90 23.55 21.90
FINANCIAL RATIOS
Return on average
assets 0.88% 1.07% 1.07% 1.00% 0.84%
Return on average
equity 6.69 8.11 8.24 7.59 6.57
Return on average
tangible equity
(b) 8.83 10.69 11.03 10.05 8.94
Average equity to
average assets 13.12 13.14 12.93 13.18 12.79
Net interest
margin, taxable
equivalent 3.67 3.74 3.88 3.78 3.81
Efficiency ratio 65.70 59.54 58.79 61.53 63.46
Effective tax
rate 29.89 26.57 28.53 27.76 27.05
PERIOD-END BALANCES
Securities $ 235,691 $ 218,096 $ 199,686 $ 235,691 $ 199,686
Loans held for
sale 3,135 3,952 2,490 3,135 2,490
Loans, net of
unearned income 520,781 519,421 527,991 520,781 527,991
Goodwill and
other
intangibles 23,788 23,883 24,166 23,788 24,166
Assets 833,664 824,217 808,973 833,664 808,973
Assets - tangible
(a) 809,876 800,334 784,807 809,876 784,807
Deposits 640,098 625,630 604,273 640,098 604,273
Customer
repurchase
agreements 47,084 54,285 65,929 47,084 65,929
Other short-term
borrowings 6,110 - - 6,110 -
Long-term
borrowings 29,107 29,144 29,257 29,107 29,257
Shareholders'
equity 108,087 110,868 106,389 108,087 106,389
Shareholders'
equity -
tangible (a) 84,299 86,985 82,223 84,299 82,223
AVERAGE BALANCES
Securities $ 215,208 $ 214,532 $ 167,546 $ 203,296 $ 153,237
Loans held for
sale 5,629 4,991 4,394 4,159 5,436
Loans, net of
unearned income 521,832 519,101 540,103 520,315 553,831
Interest-earning
assets 770,649 762,742 744,007 754,833 741,308
Goodwill and
other
intangibles 23,844 23,935 24,217 23,982 24,360
Assets 843,922 836,033 814,232 827,422 810,140
Assets - tangible
(a) 820,078 812,098 790,015 803,440 785,780
Interest-bearing
deposits 537,662 530,191 499,725 522,614 507,014
Deposits 647,526 633,692 604,506 625,822 606,700
Customer
repurchase
agreements 52,068 59,126 70,014 59,270 63,115
Other short-term
borrowings 251 92 91 87 1,037
Long-term
borrowings 29,136 29,174 29,287 29,192 30,849
Shareholders'
equity 110,688 109,885 105,302 109,060 103,625
Shareholders'
equity -
tangible (a) 86,844 85,950 81,085 85,078 79,265
CAPITAL
Average shares
outstanding -
basic 6,126,817 6,125,359 6,108,340 6,123,870 6,097,810
Average shares
outstanding -
diluted 6,141,123 6,131,129 6,116,800 6,131,650 6,102,895
Shares
repurchased - - - - 7,600
Average price of
shares
repurchased $ - $ - $ - $ - $ 15.92
ALLOWANCE FOR LOAN
LOSSES
Beginning balance $ 8,542 $ 8,135 $ 8,260 $ 8,166 $ 7,824
Provision for
loan losses 485 435 328 1,490 1,662
Charge-offs (662) (137) (485) (1,531) (1,601)
Recoveries 55 109 63 295 281
--------- --------- --------- --------- ---------
Ending balance $ 8,420 $ 8,542 $ 8,166 $ 8,420 $ 8,166
LOANS
Construction and
land development $ 37,168 $ 42,602 $ 40,371 $ 37,168 $ 40,371
Commercial real
estate 210,393 206,142 208,066 210,393 208,066
Residential real
estate 119,398 118,554 121,639 119,398 121,639
Home equity 61,064 64,847 64,678 61,064 64,678
Commercial and
industrial 85,051 80,818 86,312 85,051 86,312
Consumer 7,707 6,458 6,925 7,707 6,925
--------- --------- --------- --------- ---------
Total $ 520,781 $ 519,421 $ 527,991 $ 520,781 $ 527,991
NONPERFORMING ASSETS
AT PERIOD-END
Nonperforming
loans:
90 days past
due $ - $ - $ - $ - $ -
Nonaccrual 2,597 3,910 3,642 2,597 3,642
Foreclosed real
estate 3,716 3,987 3,414 3,716 3,414
--------- --------- --------- --------- ---------
Nonperforming
assets $ 6,313 $ 7,897 $ 7,056 $ 6,313 $ 7,056
ASSET QUALITY RATIOS
Annualized net
chargeoffs to
average loans 0.47% 0.02% 0.31% 0.24% 0.24%
Nonperforming
assets to total
assets 0.76 0.96 0.87 0.76 0.87
Nonperforming
loans to total
loans 0.50 0.75 0.69 0.50 0.69
Allowance for
loan losses to
total loans 1.62 1.64 1.55 1.62 1.55
Allowance for
loan losses to
nonperforming
loans 324.22 218.47 224.22 324.22 224.22
OTHER DATA
Fiduciary assets
at period-end
(c) $ 368,018 $ 370,016 $ 358,124 $ 368,018 $ 358,124
Retail brokerage
assets at
period-end (c) $ 49,311 $ 47,507 $ 54,696 $ 49,311 $ 54,696
Number full-time
equivalent
employees (d) 242 242 238 242 238
Number of full
service offices 18 18 18 18 18
Number of loan
production
offices 1 1 2 1 2
Number of ATM's 26 26 24 26 24
Notes:
(a) - Excludes goodwill and other intangible assets
(b) - Excludes amortization expense, net of tax, of intangible assets
(c) - Market value
(d) - Average for quarter
N/A - Percentage change is not applicable or not meaningful
Net Interest Income Analysis
For the Three Months Ended December 31, 2010 and 2009
(in thousands, except yields and rates)
Interest
Average Balance Income/Expense Yield/Rate
----------------- ----------------- ----------------
2010 2009 2010 2009 2010 2009
-------- -------- -------- -------- ------- -------
Loans:
Commercial $ 75,012 $ 80,712 $ 900 $ 986 4.76% 4.89%
Real estate 445,017 452,136 5,949 6,338 5.35 5.61
Consumer 7,432 7,255 144 148 7.69 8.16
-------- -------- -------- -------- ------- -------
Total loans 527,461 540,103 6,993 7,472 5.30 5.53
-------- -------- -------- -------- ------- -------
Securities:
Federal agencies &
GSE 48,184 61,858 382 555 3.17 3.59
Mortgage-backed &
CMO's 57,251 38,002 484 482 3.38 5.07
State and municipal 103,692 59,358 1,255 839 4.84 5.65
Other 6,081 8,328 55 76 3.62 3.65
-------- -------- -------- -------- ------- -------
Total securities 215,208 167,546 2,176 1,952 4.04 4.66
-------- -------- -------- -------- ------- -------
Deposits in other
banks 27,980 36,358 92 91 1.30 1.00
-------- -------- -------- -------- ------- -------
Total
interest-earning
assets 770,649 744,007 9,261 9,515 4.80 5.12
-------- -------- ------- -------
Non-earning assets 73,273 70,225
-------- --------
Total assets $843,922 $814,232
======== ========
Deposits:
Demand $ 93,133 $ 94,764 18 27 0.08 0.11
Money market 60,500 72,342 86 74 0.56 0.41
Savings 63,010 62,026 22 33 0.14 0.21
Time 321,019 270,593 1,578 1,637 1.95 2.42
-------- -------- -------- -------- ------- -------
Total deposits 537,662 499,725 1,704 1,771 1.26 1.42
Customer repurchase
agreements 52,068 70,014 85 127 0.65 0.73
Other short-term
borrowings 251 91 0 0 0.14 0.39
Long-term borrowings 29,136 29,287 407 409 5.59 5.59
-------- -------- -------- -------- ------- -------
Total
interest-bearing
liabilities 619,117 599,117 2,196 2,307 1.41 1.54
-------- -------- ------- -------
Noninterest bearing
demand deposits 109,864 104,781
Other liabilities 4,253 5,032
Shareholders' equity 110,688 105,302
-------- --------
Total liabilities
and shareholders'
equity $843,922 $814,232
======== ========
Interest rate spread 3.39% 3.58%
======= =======
Net interest margin 3.67% 3.88%
======= =======
Net interest income
(taxable equivalent
basis) 7,065 7,208
Less: Taxable
equivalent
adjustment 340 258
-------- --------
Net interest income $ 6,725 $ 6,950
======== ========
Net Interest Income Analysis
For the Years Ended 2010 and 2009
(in thousands, except yields and rates)
Interest Average
Average Balance Income/Expense Yield/Rate
----------------- ----------------- ----------------
2010 2009 2010 2009 2010 2009
-------- -------- -------- -------- ------- -------
Loans:
Commercial $ 77,382 $ 88,551 $ 3,726 $ 4,213 4.82% 4.76%
Real estate 440,318 463,093 24,045 26,294 5.46 5.68
Consumer 6,774 7,623 541 659 7.99 8.64
-------- -------- -------- -------- ------- -------
Total loans 524,474 559,267 28,312 31,166 5.40 5.57
-------- -------- -------- -------- ------- -------
Securities:
Federal agencies &
GSE 59,960 52,694 1,917 2,139 3.20 4.06
Mortgage-backed &
CMO's 50,178 40,363 1,957 2,100 3.90 5.20
State and municipal 86,439 52,687 4,478 2,972 5.18 5.64
Other 6,719 7,493 240 261 3.57 3.48
-------- -------- -------- -------- ------- -------
Total securities 203,296 153,237 8,592 7,472 4.23 4.88
-------- -------- -------- -------- ------- -------
Deposits in other
banks 27,063 28,804 360 378 1.33 1.31
-------- -------- -------- -------- ------- -------
Total
interest-earning
assets 754,833 741,308 37,264 39,016 4.94 5.26
-------- -------- ------- -------
Non-earning assets 72,589 68,832
-------- --------
Total assets $827,422 $810,140
======== ========
Deposits:
Demand $ 94,236 $ 98,576 76 290 0.08 0.29
Money market 73,358 72,918 371 527 0.51 0.72
Savings 63,484 62,219 88 148 0.14 0.24
Time 291,536 273,301 6,173 7,434 2.12 2.72
-------- -------- -------- -------- ------- -------
Total deposits 522,614 507,014 6,708 8,399 1.28 1.66
Customer repurchase
agreements 59,270 63,115 382 670 0.64 1.06
Other short-term
borrowings 87 1,037 0 5 0.42 0.48
Long-term borrowings 29,192 30,849 1,629 1,715 5.58 5.56
-------- -------- -------- -------- ------- -------
Total
interest-bearing
liabilities 611,163 602,015 8,719 10,789 1.43 1.79
-------- -------- -------- -------- ------- -------
Noninterest bearing
demand deposits 103,208 99,686
Other liabilities 3,991 4,814
Shareholders' equity 109,060 103,625
-------- --------
Total liabilities
and shareholders'
equity $827,422 $810,140
======== ========
Interest rate spread 3.51% 3.47%
======= =======
Net interest margin 3.78% 3.81%
======= =======
Net interest income
(taxable equivalent
basis) 28,545 28,227
Less: Taxable
equivalent
adjustment 1,299 955
-------- --------
Net interest income $ 27,246 $ 27,272
======== ========