President and Chief Executive Officer,
NET INTEREST INCOME
Net interest income for the fourth quarter of 2023 decreased by
ASSET QUALITY
Nonperforming assets (“NPAs”) totaled
The allowance for credit losses - loans was
NONINTEREST INCOME
Noninterest income increased
NONINTEREST EXPENSE
Noninterest expenses for the fourth quarter of 2023 amounted to
INCOME TAXES
The effective tax rate for the three months ended
BALANCE SHEET
Total assets at
At
Investment securities available for sale amounted to
Deposits amounted to
The Company continues to be well-capitalized as defined by regulators, with tangible common equity to tangible assets of 8.52% at
ABOUT AMERICAN NATIONAL
American National is a multi-state bank holding company with total assets of approximately
NON-GAAP FINANCIAL MEASURES
This release contains financial information determined by methods other than in accordance with generally accepted accounting principles in
FORWARD-LOOKING STATEMENTS
Certain statements in this release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding anticipated changes in the interest rate environment, future economic conditions and the impacts of current economic uncertainties, and projections, predictions, expectations, or beliefs about future events or results, or otherwise are not statements of historical fact. Such forward-looking statements are based on certain assumptions as of the time they are made and are inherently subject to known and unknown risks and uncertainties, some of which cannot be predicted or quantified, that may cause actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking statements. Such statements are often characterized by the use of qualified words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” “intend,” “will,” “may,” “view,” “seek to,” “opportunity,” “potential,” “continue,” “confidence” or words of similar meaning, or other statements concerning opinions or judgment of our management about future events. Although we believe that our expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of our existing knowledge of our business and operations, there can be no assurance that actual future results, performance, or achievements of, or trends affecting, us will not differ materially from any projected future results, performance, achievements or trends expressed or implied by such forward-looking statements. Actual future results, performance, achievements or trends may differ materially from historical results or those anticipated depending on a variety of factors, including, but not limited to, the following: the businesses of
Contact:
Senior Executive Vice President, COO & CFO
(434)773-2274
farrarj@amnb.com
Consolidated Balance Sheets | |||||||||
(Dollars in thousands, except per share data) | |||||||||
Unaudited | |||||||||
2023 | 2022 | ||||||||
Assets | |||||||||
Cash and due from banks | $ | 31,500 | $ | 32,207 | |||||
Interest-bearing deposits in other banks | 35,219 | 41,133 | |||||||
Securities available for sale, at fair value | 521,519 | 608,062 | |||||||
Restricted stock, at cost | 10,614 | 12,651 | |||||||
Loans held for sale | 1,279 | 1,061 | |||||||
Loans, net of deferred fees and costs | 2,288,320 | 2,186,449 | |||||||
Less allowance for credit losses - loans | (25,273 | ) | (19,555 | ) | |||||
Net Loans | 2,263,047 | 2,166,894 | |||||||
Premises and equipment, net | 31,809 | 32,900 | |||||||
Assets held-for-sale | 1,131 | 1,382 | |||||||
Other real estate owned, net | - | 27 | |||||||
85,048 | 85,048 | ||||||||
Core deposit intangibles, net | 2,298 | 3,367 | |||||||
Bank owned life insurance | 30,409 | 29,692 | |||||||
Other assets | 76,844 | 51,478 | |||||||
Total assets | $ | 3,090,717 | $ | 3,065,902 | |||||
Liabilities | |||||||||
Demand deposits -- noninterest-bearing | $ | 805,584 | $ | 1,010,602 | |||||
Demand deposits -- interest-bearing | 516,255 | 484,037 | |||||||
Money market deposits | 706,986 | 574,330 | |||||||
Savings deposits | 205,622 | 269,426 | |||||||
Time deposits | 372,066 | 257,933 | |||||||
Total deposits | 2,606,513 | 2,596,328 | |||||||
Customer repurchase agreements | 59,348 | 370 | |||||||
Other short-term borrowings | 35,000 | 100,531 | |||||||
Long-term borrowings | 28,435 | 28,334 | |||||||
Other liabilities | 18,253 | 19,165 | |||||||
Total liabilities | 2,747,549 | 2,744,728 | |||||||
Shareholders' equity | |||||||||
Preferred stock, | |||||||||
none outstanding | - | - | |||||||
Common stock, | |||||||||
10,633,409 shares outstanding at | |||||||||
10,608,781 shares outstanding at | 10,551 | 10,538 | |||||||
Capital in excess of par value | 142,834 | 141,948 | |||||||
Retained earnings | 232,847 | 223,664 | |||||||
Accumulated other comprehensive loss, net | (43,064 | ) | (54,976 | ) | |||||
Total shareholders' equity | 343,168 | 321,174 | |||||||
Total liabilities and shareholders' equity | $ | 3,090,717 | $ | 3,065,902 | |||||
Consolidated Statements of Income | |||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||||||||
Interest and Dividend Income: | |||||||||||||||||||||
Interest and fees on loans | $ | 27,995 | $ | 27,512 | $ | 23,544 | $ | 106,471 | $ | 82,568 | |||||||||||
Interest and dividends on securities: | |||||||||||||||||||||
Taxable | 2,503 | 2,564 | 2,721 | 10,358 | 10,065 | ||||||||||||||||
Tax-exempt | 24 | 24 | 110 | 139 | 407 | ||||||||||||||||
Dividends | 147 | 163 | 126 | 676 | 473 | ||||||||||||||||
Other interest income | 767 | 797 | 415 | 2,585 | 2,491 | ||||||||||||||||
Total interest and dividend income | 31,436 | 31,060 | 26,916 | 120,229 | 96,004 | ||||||||||||||||
Interest Expense: | |||||||||||||||||||||
Interest on deposits | 9,693 | 9,057 | 1,597 | 28,843 | 3,553 | ||||||||||||||||
Interest on short-term borrowings | 1,767 | 938 | 633 | 5,192 | 659 | ||||||||||||||||
Interest on long-term borrowings | 429 | 402 | 398 | 1,612 | 1,554 | ||||||||||||||||
Total interest expense | 11,889 | 10,397 | 2,628 | 35,647 | 5,766 | ||||||||||||||||
Net Interest Income | 19,547 | 20,663 | 24,288 | 84,582 | 90,238 | ||||||||||||||||
Provision for (recovery of) credit losses | 437 | (538 | ) | 1,159 | 495 | 1,597 | |||||||||||||||
Net Interest Income After Provision for | |||||||||||||||||||||
(Recovery of) Credit Losses | 19,110 | 21,201 | 23,129 | 84,087 | 88,641 | ||||||||||||||||
Noninterest Income: | |||||||||||||||||||||
Wealth management income | 1,721 | 1,736 | 1,522 | 6,751 | 6,521 | ||||||||||||||||
Service charges on deposit accounts | 531 | 565 | 597 | 2,216 | 2,676 | ||||||||||||||||
Interchange fees | 1,316 | 1,162 | 1,117 | 4,775 | 4,107 | ||||||||||||||||
Other fees and commissions | 157 | 169 | 207 | 650 | 906 | ||||||||||||||||
Mortgage banking income | 190 | 293 | 176 | 824 | 1,666 | ||||||||||||||||
Securities losses, net | - | - | - | (68 | ) | - | |||||||||||||||
Income (loss) from Small Business Investment Companies | 44 | 453 | (263 | ) | 932 | 1,409 | |||||||||||||||
Income from insurance investments | 171 | 128 | 103 | 764 | 747 | ||||||||||||||||
Losses on premises and equipment, net | (42 | ) | - | (146 | ) | (155 | ) | (228 | ) | ||||||||||||
Other | 747 | 268 | 297 | 1,647 | 1003 | ||||||||||||||||
Total noninterest income | 4,835 | 4,774 | 3,610 | 18,336 | 18,807 | ||||||||||||||||
Noninterest Expense: | |||||||||||||||||||||
Salaries and employee benefits | 9,655 | 9,229 | 9,446 | 36,356 | 36,382 | ||||||||||||||||
Occupancy and equipment | 1,543 | 1,601 | 1,499 | 6,219 | 6,075 | ||||||||||||||||
351 | 354 | 209 | 1,404 | 903 | |||||||||||||||||
Bank franchise tax | 502 | 520 | 501 | 2,052 | 1,953 | ||||||||||||||||
Core deposit intangible amortization | 252 | 262 | 300 | 1,069 | 1,260 | ||||||||||||||||
Data processing | 954 | 821 | 864 | 3,565 | 3,310 | ||||||||||||||||
Software | 439 | 470 | 417 | 1,829 | 1,505 | ||||||||||||||||
Other real estate owned, net | - | (10 | ) | (1 | ) | (10 | ) | 3 | |||||||||||||
Merger related expenses | 875 | 1,702 | - | 2,577 | - | ||||||||||||||||
Other | 3,306 | 3,394 | 3,599 | 12,989 | 12,695 | ||||||||||||||||
Total noninterest expense | 17,877 | 18,343 | 16,834 | 68,050 | 64,086 | ||||||||||||||||
Income Before Income Taxes | 6,068 | 7,632 | 9,905 | 34,373 | 43,362 | ||||||||||||||||
Income Taxes | 1,995 | 1,844 | 1,872 | 8,214 | 8,934 | ||||||||||||||||
Net Income | $ | 4,073 | $ | 5,788 | $ | 8,033 | $ | 26,159 | $ | 34,428 | |||||||||||
Net Income Per Common Share: | |||||||||||||||||||||
Basic | $ | 0.38 | $ | 0.54 | $ | 0.76 | $ | 2.46 | $ | 3.23 | |||||||||||
Diluted | $ | 0.38 | $ | 0.54 | $ | 0.76 | $ | 2.46 | $ | 3.23 | |||||||||||
Weighted Average Common Shares Outstanding: | |||||||||||||||||||||
Basic | 10,631,001 | 10,625,709 | 10,607,678 | 10,627,709 | 10,672,314 | ||||||||||||||||
Diluted | 10,631,001 | 10,625,709 | 10,609,937 | 10,628,559 | 10,674,613 |
Financial Highlights | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Dollars in thousands, except per share data) | At or for the Twelve Months | |||||||||||||||||||
4th Qtr | 3rd Qtr | 4th Qtr | Ended | |||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
EARNINGS | ||||||||||||||||||||
Interest income | $ | 31,436 | $ | 31,060 | $ | 26,916 | $ | 120,229 | $ | 96,004 | ||||||||||
Interest expense | 11,889 | 10,397 | 2,628 | 35,647 | 5,766 | |||||||||||||||
Net interest income | 19,547 | 20,663 | 24,288 | 84,582 | 90,238 | |||||||||||||||
Provision for (recovery of) credit losses | 437 | (538 | ) | 1,159 | 495 | 1,597 | ||||||||||||||
Noninterest income | 4,835 | 4,774 | 3,610 | 18,336 | 18,807 | |||||||||||||||
Noninterest expense | 17,877 | 18,343 | 16,834 | 68,050 | 64,086 | |||||||||||||||
Income taxes | 1,995 | 1,844 | 1,872 | 8,214 | 8,934 | |||||||||||||||
Net income | 4,073 | 5,788 | 8,033 | 26,159 | 34,428 | |||||||||||||||
PER COMMON SHARE | ||||||||||||||||||||
Net income per share - basic | $ | 0.38 | $ | 0.54 | $ | 0.76 | $ | 2.46 | $ | 3.23 | ||||||||||
Net income per share - diluted | 0.38 | 0.54 | 0.76 | 2.46 | 3.23 | |||||||||||||||
Cash dividends paid | 0.30 | 0.30 | 0.30 | 1.20 | 1.14 | |||||||||||||||
Book value per share | 32.27 | 30.79 | 30.27 | 32.27 | 30.27 | |||||||||||||||
Book value per share - tangible (a) | 24.06 | 22.55 | 21.94 | 24.06 | 21.94 | |||||||||||||||
Closing market price | 48.75 | 37.94 | 36.93 | 48.75 | 36.93 | |||||||||||||||
FINANCIAL RATIOS | ||||||||||||||||||||
Return on average assets | 0.53 | % | 0.75 | % | 1.05 | % | 0.85 | % | 1.07 | % | ||||||||||
Return on average common equity | 4.91 | 7.02 | 10.15 | 7.94 | 10.36 | |||||||||||||||
Return on average tangible common equity (a) | 6.99 | 9.91 | 14.50 | 11.18 | 14.56 | |||||||||||||||
Average common equity to average assets | 10.72 | 10.68 | 10.33 | 10.70 | 10.35 | |||||||||||||||
Tangible common equity to tangible assets (a) | 8.52 | 7.98 | 7.82 | 8.52 | 7.82 | |||||||||||||||
Net interest margin, taxable equivalent | 2.60 | 2.76 | 3.33 | 2.86 | 2.97 | |||||||||||||||
Efficiency ratio (a) | 68.39 | 64.31 | 58.82 | 62.31 | 57.37 | |||||||||||||||
Effective tax rate | 32.88 | 24.16 | 18.90 | 23.90 | 20.60 | |||||||||||||||
PERIOD-END BALANCES | ||||||||||||||||||||
Securities | $ | 532,133 | $ | 556,851 | $ | 620,713 | $ | 532,133 | $ | 620,713 | ||||||||||
Loans held for sale | 1,279 | 1,981 | 1,061 | 1,279 | 1,061 | |||||||||||||||
Loans, net | 2,288,320 | 2,273,455 | 2,186,449 | 2,288,320 | 2,186,449 | |||||||||||||||
87,346 | 87,598 | 88,415 | 87,346 | 88,415 | ||||||||||||||||
Assets | 3,090,717 | 3,091,258 | 3,065,902 | 3,090,717 | 3,065,902 | |||||||||||||||
Assets - tangible (a) | 3,003,371 | 3,003,660 | 2,977,487 | 3,003,371 | 2,977,487 | |||||||||||||||
Interest-bearing deposits | 1,800,929 | 1,723,227 | 1,585,726 | 1,800,929 | 1,585,726 | |||||||||||||||
Noninterest bearing demand deposits | 805,584 | 848,017 | 1,010,602 | 805,584 | 1,010,602 | |||||||||||||||
Customer repurchase agreements | 59,348 | 60,035 | 370 | 59,348 | 370 | |||||||||||||||
Other short-term borrowings | 35,000 | 85,000 | 100,531 | 35,000 | 100,531 | |||||||||||||||
Long-term borrowings | 28,435 | 28,410 | 28,334 | 28,435 | 28,334 | |||||||||||||||
Shareholders' equity | 343,168 | 327,278 | 321,174 | 343,168 | 321,174 | |||||||||||||||
Shareholders' equity - tangible (a) | 255,822 | 239,680 | 232,759 | 255,822 | 232,759 | |||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||
Securities (b) | $ | 622,686 | $ | 634,313 | $ | 713,996 | $ | 646,658 | $ | 720,001 | ||||||||||
Loans held for sale | 2,047 | 2,488 | 972 | 1,788 | 3,235 | |||||||||||||||
Loans, net | 2,276,999 | 2,248,675 | 2,168,636 | 2,232,795 | 2,052,158 | |||||||||||||||
Interest-earning assets | 2,953,377 | 2,939,234 | 2,920,992 | 2,928,996 | 3,042,775 | |||||||||||||||
87,506 | 87,758 | 88,593 | 87,900 | 89,048 | ||||||||||||||||
Assets | 3,098,235 | 3,088,231 | 3,066,362 | 3,077,352 | 3,211,668 | |||||||||||||||
Assets - tangible (a) | 3,010,729 | 3,000,473 | 2,977,769 | 2,989,452 | 3,122,620 | |||||||||||||||
Interest-bearing deposits | 1,744,549 | 1,758,994 | 1,609,503 | 1,697,250 | 1,765,134 | |||||||||||||||
Noninterest bearing demand deposits | 838,105 | 872,488 | 1,031,630 | 897,199 | 1,028,871 | |||||||||||||||
Customer repurchase agreements | 58,312 | 65,550 | 704 | 48,409 | 24,005 | |||||||||||||||
Other short-term borrowings | 75,669 | 12,935 | 62,004 | 58,072 | 15,629 | |||||||||||||||
Subordinated debt | 28,419 | 28,393 | 28,318 | 28,381 | 28,280 | |||||||||||||||
Shareholders' equity | 332,127 | 329,812 | 316,697 | 329,339 | 332,356 | |||||||||||||||
Shareholders' equity - tangible (a) | 244,621 | 242,054 | 228,104 | 241,439 | 243,308 | |||||||||||||||
Financial Highlights | ||||||||||||||||||||
Unaudited | ||||||||||||||||||||
(Dollars in thousands, except per share data) | At or for the Twelve Months | |||||||||||||||||||
4th Qtr | 3rd Qtr | 4th Qtr | Ended | |||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
CAPITAL | ||||||||||||||||||||
Weighted average shares outstanding - basic | 10,631,001 | 10,625,709 | 10,607,678 | 10,627,709 | 10,672,314 | |||||||||||||||
Weighted average shares outstanding - diluted | 10,631,001 | 10,625,709 | 10,609,937 | 10,628,559 | 10,674,613 | |||||||||||||||
COMMON STOCK REPURCHASE PROGRAM | ||||||||||||||||||||
Total shares of common stock repurchased | - | - | 3,269 | 34,131 | 206,978 | |||||||||||||||
Average price paid per share of common stock | $ | - | $ | - | $ | 36.44 | $ | 30.58 | $ | 36.26 | ||||||||||
ALLOWANCE FOR CREDIT LOSSES - LOANS | ||||||||||||||||||||
Beginning balance | $ | 25,124 | $ | 25,342 | $ | 19,189 | $ | 19,555 | $ | 18,678 | ||||||||||
Day 1 Impact of CECL adoption | - | - | - | 5,192 | - | |||||||||||||||
Provision for (recovery of) credit losses | 418 | (533 | ) | 1,159 | 433 | 1,597 | ||||||||||||||
Charge-offs | (573 | ) | (19 | ) | (834 | ) | (1,002 | ) | (1,019 | ) | ||||||||||
Recoveries | 304 | 334 | 41 | 1095 | 299 | |||||||||||||||
Ending balance | $ | 25,273 | $ | 25,124 | $ | 19,555 | $ | 25,273 | $ | 19,555 | ||||||||||
LOANS | ||||||||||||||||||||
Construction and land development | $ | 274,035 | $ | 269,840 | $ | 197,525 | $ | 274,035 | $ | 197,525 | ||||||||||
Commercial real estate - owner occupied | 414,321 | 413,151 | 418,462 | 414,321 | 418,462 | |||||||||||||||
Commercial real estate - non-owner occupied | 830,655 | 803,440 | 827,728 | 830,655 | 827,728 | |||||||||||||||
Residential real estate | 369,892 | 366,557 | 338,132 | 369,892 | 338,132 | |||||||||||||||
Home equity | 90,298 | 91,393 | 93,740 | 90,298 | 93,740 | |||||||||||||||
Commercial and industrial | 302,305 | 322,209 | 304,247 | 302,305 | 304,247 | |||||||||||||||
Consumer | 6,814 | 6,865 | 6,615 | 6,814 | 6,615 | |||||||||||||||
Total | $ | 2,288,320 | $ | 2,273,455 | $ | 2,186,449 | $ | 2,288,320 | $ | 2,186,449 | ||||||||||
NONPERFORMING ASSETS AT PERIOD-END | ||||||||||||||||||||
Nonperforming loans: | ||||||||||||||||||||
90 days past due and accruing | $ | - | $ | - | $ | 16 | $ | - | $ | 16 | ||||||||||
Nonaccrual | 5,814 | 3,740 | 1,307 | 5,814 | 1,307 | |||||||||||||||
Other real estate owned and repossessions | - | - | 80 | - | 80 | |||||||||||||||
Nonperforming assets | $ | 5,814 | $ | 3,740 | $ | 1,403 | $ | 5,814 | $ | 1,403 | ||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
Allowance for credit losses - loans to total loans | 1.10 | % | 1.11 | % | 0.89 | % | 1.10 | % | 0.89 | % | ||||||||||
Allowance for credit losses - loans to | ||||||||||||||||||||
nonperforming loans | 434.69 | 671.76 | 1,478.08 | 434.69 | 1,478.08 | |||||||||||||||
Nonperforming assets to total assets | 0.19 | 0.12 | 0.05 | 0.19 | 0.05 | |||||||||||||||
Nonperforming loans to total loans | 0.25 | 0.16 | 0.06 | 0.25 | 0.06 | |||||||||||||||
Annualized net charge-offs (recoveries) to average loans | 0.05 | (0.06 | ) | 0.15 | 0.00 | 0.04 | ||||||||||||||
OTHER DATA | ||||||||||||||||||||
Fiduciary assets at period-end (c) (d) | $ | 834,150 | $ | 774,126 | $ | 736,121 | $ | 834,150 | $ | 736,121 | ||||||||||
Retail brokerage assets at period-end (c) (d) | $ | 395,585 | $ | 413,956 | $ | 413,235 | $ | 395,585 | $ | 413,235 | ||||||||||
Number full-time equivalent employees (e) | 352 | 358 | 359 | 352 | 359 | |||||||||||||||
Number of full service offices | 26 | 26 | 26 | 26 | 26 | |||||||||||||||
Number of loan production offices | 1 | 1 | 1 | 1 | 1 | |||||||||||||||
Number of ATMs | 34 | 34 | 34 | 34 | 34 | |||||||||||||||
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 | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Unaudited | |||||||||||||||||||
Interest | |||||||||||||||||||
Average Balance | Income/Expense (a) | Yield/Rate | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Assets: | |||||||||||||||||||
Total loans (b) | $ | 2,279,046 | $ | 2,169,608 | $ | 28,058 | $ | 23,585 | 4.83 | % | 4.34 | % | |||||||
Securities: | |||||||||||||||||||
Taxable | 618,466 | 693,573 | 2,650 | 2,847 | 1.71 | 1.64 | |||||||||||||
Tax exempt | 4,220 | 20,423 | 30 | 137 | 2.85 | 2.73 | |||||||||||||
Total securities | 622,686 | 713,996 | 2,680 | 2,984 | 1.72 | 1.67 | |||||||||||||
Deposits in other banks | 51,645 | 37,388 | 767 | 415 | 5.90 | 4.40 | |||||||||||||
Total interest-earning assets | 2,953,377 | 2,920,992 | 31,505 | 26,984 | 4.20 | 3.69 | |||||||||||||
Non-earning assets | 144,858 | 145,370 | |||||||||||||||||
Total assets | $ | 3,098,235 | $ | 3,066,362 | |||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand | $ | 492,925 | $ | 494,572 | 1,077 | 95 | 0.87 | 0.08 | |||||||||||
Savings and money market | 880,402 | 864,089 | 5,443 | 1,041 | 2.45 | 0.48 | |||||||||||||
Time | 371,222 | 250,842 | 3,173 | 461 | 3.39 | 0.73 | |||||||||||||
Total deposits | 1,744,549 | 1,609,503 | 9,693 | 1,597 | 2.20 | 0.39 | |||||||||||||
Customer repurchase agreements | 58,312 | 704 | 695 | - | 4.72 | 0.00 | |||||||||||||
Other short-term borrowings | 75,669 | 62,004 | 1,072 | 633 | 5.54 | 4.08 | |||||||||||||
Long-term borrowings | 28,419 | 28,318 | 429 | 398 | 5.90 | 5.62 | |||||||||||||
Total interest-bearing | |||||||||||||||||||
liabilities | 1,906,949 | 1,700,529 | 11,889 | 2,628 | 2.48 | 0.62 | |||||||||||||
Noninterest bearing demand deposits | 838,105 | 1,031,630 | |||||||||||||||||
Other liabilities | 21,054 | 17,506 | |||||||||||||||||
Shareholders' equity | 332,127 | 316,697 | |||||||||||||||||
Total liabilities and | |||||||||||||||||||
shareholders' equity | $ | 3,098,235 | $ | 3,066,362 | |||||||||||||||
Interest rate spread | 1.72 | % | 3.07 | % | |||||||||||||||
Net interest margin | 2.60 | % | 3.33 | % | |||||||||||||||
Net interest income (taxable equivalent basis) | 19,616 | 24,356 | |||||||||||||||||
Less: Taxable equivalent adjustment (c) | 69 | 68 | |||||||||||||||||
Net interest income | $ | 19,547 | $ | 24,288 | |||||||||||||||
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 and loans held for sale 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. | |||||||||||||||||||
Net Interest Income Analysis | |||||||||||||||||||
For the Twelve Months Ended | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Unaudited | |||||||||||||||||||
Interest | |||||||||||||||||||
Average Balance | Income/Expense (a) | Yield/Rate | |||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||
Assets: | |||||||||||||||||||
Total loans (b) | $ | 2,234,583 | $ | 2,055,393 | $ | 106,670 | $ | 82,708 | 4.72 | % | 4.02 | % | |||||||
Securities: | |||||||||||||||||||
Taxable | 640,322 | 700,660 | 11,034 | 10,538 | 1.72 | 1.50 | |||||||||||||
Tax exempt | 6,336 | 19,341 | 176 | 511 | 2.78 | 2.66 | |||||||||||||
Total securities | 646,658 | 720,001 | 11,210 | 11,049 | 1.73 | 1.53 | |||||||||||||
Deposits in other banks | 47,755 | 267,381 | 2,585 | 2,491 | 5.41 | 0.93 | |||||||||||||
Total interest-earning assets | 2,928,996 | 3,042,775 | 120,465 | 96,248 | 4.07 | 3.16 | |||||||||||||
Non-earning assets | 148,356 | 168,893 | |||||||||||||||||
Total assets | $ | 3,077,352 | $ | 3,211,668 | |||||||||||||||
Liabilities and Stockholders' Equity: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand | $ | 483,573 | $ | 522,043 | 2,892 | 202 | 0.60 | 0.04 | |||||||||||
Savings and money market | 888,355 | 962,419 | 17,285 | 1,750 | 1.95 | 0.18 | |||||||||||||
Time | 325,322 | 280,672 | 8,666 | 1,601 | 2.67 | 0.57 | |||||||||||||
Total deposits | 1,697,250 | 1,765,134 | 28,843 | 3,553 | 1.70 | 0.20 | |||||||||||||
Customer repurchase agreements | 48,409 | 24,005 | 2,980 | 26 | 4.57 | 0.11 | |||||||||||||
Other short-term borrowings | 58,072 | 15,629 | 2,212 | 633 | 5.06 | 4.05 | |||||||||||||
Long-term borrowings | 28,381 | 28,280 | 1,612 | 1,554 | 5.60 | 5.50 | |||||||||||||
Total interest-bearing | |||||||||||||||||||
liabilities | 1,832,112 | 1,833,048 | 35,647 | 5,766 | 1.94 | 0.31 | |||||||||||||
Noninterest bearing demand deposits | 897,199 | 1,028,871 | |||||||||||||||||
Other liabilities | 18,702 | 17,393 | |||||||||||||||||
Shareholders' equity | 329,339 | 332,356 | |||||||||||||||||
Total liabilities and | |||||||||||||||||||
shareholders' equity | $ | 3,077,352 | $ | 3,211,668 | |||||||||||||||
Interest rate spread | 2.13 | % | 2.85 | % | |||||||||||||||
Net interest margin | 2.86 | % | 2.97 | % | |||||||||||||||
Net interest income (taxable equivalent basis) | 84,818 | 90,482 | |||||||||||||||||
Less: Taxable equivalent adjustment (c) | 236 | 244 | |||||||||||||||||
Net interest income | $ | 84,582 | $ | 90,238 | |||||||||||||||
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 and loans held for sale 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. | |||||||||||||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||||||||||||||
Unaudited | |||||||||||||||||||||
(Dollars in thousands, except per share data) | At or for the Nine Months | ||||||||||||||||||||
4th Qtr | 3rd Qtr | 4th Qtr | Ended | ||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||
EFFICIENCY RATIO | |||||||||||||||||||||
Noninterest expense | $ | 17,877 | $ | 18,343 | $ | 16,834 | $ | 68,050 | $ | 64,086 | |||||||||||
Add: loss on sale of OREO | - | 13 | 2 | 13 | 2 | ||||||||||||||||
Subtract: core deposit intangible amortization | (252 | ) | (262 | ) | (300 | ) | (1,069 | ) | (1,260 | ) | |||||||||||
Subtract: merger related expenses | (875 | ) | (1,702 | ) | - | (2,577 | ) | - | |||||||||||||
$ | 16,750 | $ | 16,392 | $ | 16,536 | $ | 64,417 | $ | 62,828 | ||||||||||||
Net interest income | $ | 19,547 | $ | 20,663 | $ | 24,288 | $ | 84,582 | $ | 90,238 | |||||||||||
Tax equivalent adjustment | 69 | 53 | 68 | 236 | 244 | ||||||||||||||||
Noninterest income | 4,835 | 4,774 | 3,610 | 18,336 | 18,807 | ||||||||||||||||
Add: loss on securities | - | - | - | 68 | - | ||||||||||||||||
Add: loss on premises and equipment | 42 | - | 146 | 155 | 228 | ||||||||||||||||
$ | 24,493 | $ | 25,490 | $ | 28,112 | $ | 103,377 | $ | 109,517 | ||||||||||||
Efficiency ratio | 68.39 | % | 64.31 | % | 58.82 | % | 62.31 | % | 57.37 | % | |||||||||||
TAX EQUIVALENT NET INTEREST INCOME | |||||||||||||||||||||
GAAP measures: | |||||||||||||||||||||
Interest income - loans | $ | 28,058 | $ | 27,559 | $ | 23,585 | $ | 106,670 | $ | 82,708 | |||||||||||
Interest income - investments and other | 3,447 | 3,554 | 3,399 | 13,795 | 13,540 | ||||||||||||||||
Interest expense - deposits | (9,693 | ) | (9,057 | ) | (1,597 | ) | (28,843 | ) | (3,553 | ) | |||||||||||
Interest expense - customer repurchase | |||||||||||||||||||||
agreements | (695 | ) | (759 | ) | - | (2,980 | ) | (26 | ) | ||||||||||||
Interest expense - other short-term borrowings | (1,072 | ) | (179 | ) | (633 | ) | (2,212 | ) | (633 | ) | |||||||||||
Interest expense - long-term borrowings | (429 | ) | (402 | ) | (398 | ) | (1,612 | ) | (1,554 | ) | |||||||||||
Total net interest income | $ | 19,616 | $ | 20,716 | $ | 24,356 | $ | 84,818 | $ | 90,482 | |||||||||||
Less non-GAAP measures: | |||||||||||||||||||||
Tax benefit on nontaxable interest - loans | (63 | ) | (47 | ) | (41 | ) | (199 | ) | (139 | ) | |||||||||||
Tax benefit on nontaxable interest - securities | (6 | ) | (6 | ) | (27 | ) | (37 | ) | (105 | ) | |||||||||||
Non- GAAP measures | $ | 19,547 | $ | 20,663 | $ | 24,288 | $ | 84,582 | $ | 90,238 | |||||||||||
NET INTEREST MARGIN | |||||||||||||||||||||
Net interest margin (FTE) (non-GAAP) | 2.60 | % | 2.76 | % | 3.33 | % | 2.86 | % | 2.97 | % | |||||||||||
Net interest margin (GAAP) | 2.59 | % | 2.75 | % | 3.32 | % | 2.85 | % | 2.97 | % | |||||||||||
RETURN ON AVERAGE TANGIBLE EQUITY | |||||||||||||||||||||
Return on average equity (GAAP basis) | 4.91 | % | 7.02 | % | 10.15 | % | 7.94 | % | 10.36 | % | |||||||||||
Impact of excluding average goodwill | |||||||||||||||||||||
and other intangibles | 2.08 | 2.89 | 4.35 | 3.24 | 4.20 | ||||||||||||||||
Return on average tangible equity | |||||||||||||||||||||
(non-GAAP) | 6.99 | % | 9.91 | % | 14.50 | % | 11.18 | % | 14.56 | % | |||||||||||
TANGIBLE EQUITY TO TANGIBLE ASSETS | |||||||||||||||||||||
Equity to assets ratio (GAAP basis) | 11.10 | % | 10.59 | % | 10.48 | % | 11.10 | % | 10.48 | % | |||||||||||
Impact of excluding goodwill and | |||||||||||||||||||||
other intangibles | (2.58 | ) | (2.61 | ) | (2.66 | ) | (2.58 | ) | (2.66 | ) | |||||||||||
Tangible equity to tangible assets ratio | |||||||||||||||||||||
(non-GAAP) | 8.52 | % | 7.98 | % | 7.82 | % | 8.52 | % | 7.82 | % | |||||||||||
TANGIBLE BOOK VALUE | |||||||||||||||||||||
Book value per share (GAAP basis) | $ | 32.27 | $ | 30.79 | $ | 30.27 | $ | 32.27 | $ | 30.27 | |||||||||||
Impact of excluding goodwill and | |||||||||||||||||||||
other intangibles | (8.21 | ) | (8.24 | ) | (8.33 | ) | (8.21 | ) | (8.33 | ) | |||||||||||
Tangible book value per share | |||||||||||||||||||||
(non-GAAP) | $ | 24.06 | $ | 22.55 | $ | 21.94 | $ | 24.06 | $ | 21.94 | |||||||||||
Source:
2024 GlobeNewswire, Inc., source