-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QSM21ggHIf/7T/H25khWbk8tggVQ/9IInuwKEj0sVo8/c3ZDUJ7xN6STP6sG7VSW 0BKWznr88W+l+WlNzk/FyA== 0000741516-04-000024.txt : 20040721 0000741516-04-000024.hdr.sgml : 20040721 20040721162823 ACCESSION NUMBER: 0000741516-04-000024 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040630 ITEM INFORMATION: FILED AS OF DATE: 20040721 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN NATIONAL BANKSHARES INC CENTRAL INDEX KEY: 0000741516 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 541284688 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-12820 FILM NUMBER: 04924650 BUSINESS ADDRESS: STREET 1: 628 MAIN ST CITY: DANVILLE STATE: VA ZIP: 24541 BUSINESS PHONE: 4347925111 MAIL ADDRESS: STREET 1: 628 MAIN STREET STREET 2: P O BOX 191 CITY: DANVILLE STATE: VA ZIP: 24543 8-K 1 jul2104-8k.txt 8K 07/21/2004 AMERICAN NAT'L BANKSHARES INC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: July 21, 2004 ------------- Commission file number 0-12820 ------- AMERICAN NATIONAL BANKSHARES INC. --------------------------------- (Exact name of registrant as specified in its charter) VIRGINIA 54-1284688 -------------------------------- -------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 628 Main Street Danville, Virginia 24541 ---------------------------------------- -------------------- (Address of principal executive offices) (Zip Code) (434) 792-5111 ---------------------------------------------------- (Registrant's telephone number, including area code) Item 12. Results of Operations and Financial Condition On July 21, 2004, American National Bankshares Inc. issued a press release announcing second quarter results for the period ended June 30, 2004. Exhibits 99.1 News Release and supporting schedules - -------------------------------------------------------------------------------- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN NATIONAL BANKSHARES INC. --------------------------------- (Registrant) Date - July 21, 2004 By: /s/ Neal A. Petrovich -------------------------- Senior Vice President and Secretary-Treasurer (Chief Financial Officer) EX-99 2 ex991jul04-8k.txt EXHIBIT 99.1 8K 07/21/2004 AMER NATL BANKSHARES EXHIBIT 99.1 Contact: Neal A. Petrovich - (434) 773-2242 Senior Vice President and Chief Financial Officer Distribute: PR Newswire, Virginia State/Local Newslines July 21, 2004 Traded: NASDAQ National Market Symbol: AMNB AMERICAN NATIONAL BANKSHARES INC. REPORTS EARNINGS INCREASE ----------------------------------------------------------- FOR IMMEDIATE RELEASE (Danville, Virginia) -- American National Bankshares Inc. reported second quarter 2004 earnings of $2.424 million, which represents income of $0.43 per share. During the same period in 2003, the Corporation earned $2.308 million, or $0.40 per share. The annualized return on average equity (ROE) for the quarter was 13.51%, compared to 13.14% in the second quarter of 2003. The annualized return on average assets (ROA) was 1.52% for the second quarter, compared with 1.49% in the year-earlier quarter. For the first six months of 2004, earnings were $4.894 million, compared to $4.642 million for the first six months of 2003, an increase of 5.4%. Diluted earnings per share increased 7.5%, from $0.80 in 2003 to $0.86 in 2004. ROE was 13.57% for the first half of 2004, compared with 13.18% for the comparable 2003 period. The growth in second quarter earnings was fueled by increases in non-interest income, which advanced $430,000, or 26.6%, from the second quarter of 2003 to 2004. This increase is attributable to growth in deposit service charges, trust and investment management, mortgage banking income, and a gain on the sale of real estate. Non-interest expense increased only 1.7% during this period. Total assets averaged $637.9 million during the second quarter of 2004, up 2.8% from the second quarter of 2003. While average total deposits increased only 1.7% during this period, demand and savings accounts grew 12.9%. Average loans declined 5.1%, due primarily to pay downs of participation loans. "Our focus on growing non-interest income and controlling expenses during this period of low interest rates and below-average loan growth produced good results in the second quarter," stated Charles H. Majors, President and Chief Executive Officer. "I am also pleased with the growth in demand and savings deposits, which reflects our effort to build long-term customer relationships. Additionally, our balance sheet is positioned to benefit from the recent quarter-point prime rate increase. Looking forward, we will focus on growing the loan portfolio through our business development efforts and our recent expansion into the Greensboro, North Carolina area." Nonperforming assets totaled $4.3 million at June 30, 2004, up from $3.0 million one year earlier. Two commercial relationships accounted for the majority of this increase. "New credit policies and loan review procedures implemented in 2003 will better enable us to manage our loan portfolio risks and maintain strong credit quality as we grow," stated Majors. American National Bankshares Inc. is the holding company of American National Bank and Trust Company, a community bank with fourteen offices in Danville, Chatham, Collinsville, Gretna, Martinsville, Henry County, and South Boston, Virginia, and Yanceyville, North Carolina. Services are also provided through eighteen ATMs, "AmeriLink" internet banking, and our 24-hour "Access American" phone banking. Banking subsidiaries include ANB Mortgage Corp. (secondary mortgage origination), ANB Investor Services (retail brokerage) and ANB Insurance Services (full-service insurance agency). Additional information is available on our website at www.amnb.com. The shares of American National Bankshares Inc. are traded on the NASDAQ National Market under the symbol "AMNB". 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 Corporation 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; and significant changes in securities markets. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Corporation'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. Consolidated Balance Sheets American National Bankshares Inc. and Subsidiary (In Thousands) Unaudited - ------------------------------------------------------------------------------------------------------------
June 30 ---------------------------- 2004 2003 ------------ ----------- ASSETS Cash and due from banks.........................................................$ 14,829 $ 12,039 Interest-bearing deposits in other banks........................................ 1,097 7,953 Securities: Securities available for sale................................................. 180,052 140,550 Securities held to maturity................................................... 19,528 24,105 ----------- ----------- Total securities.............................................................. 199,580 164,655 ----------- ----------- Loans held for sale............................................................. 1,059 2,106 Loans, net of unearned income .................................................. 400,613 432,647 Less allowance for loan losses.................................................. (5,457) (5,991) ----------- ----------- Net loans..................................................................... 395,156 426,656 ----------- ----------- Bank premises and equipment, net................................................ 7,710 7,930 Core deposit intangibles, net................................................... 709 1,159 Accrued interest receivable and other assets.................................... 10,431 8,802 ----------- ----------- Total assets..................................................................$ 630,571 $ 631,300 =========== =========== LIABILITIES and SHAREHOLDERS' EQUITY Liabilities: Demand deposits -- non-interest bearing.......................................$ 75,121 $ 68,166 Demand deposits -- interest bearing........................................... 71,071 60,943 Money market deposits......................................................... 50,434 44,634 Savings deposits.............................................................. 84,393 81,840 Time deposits................................................................. 203,878 234,588 ----------- ----------- Total deposits................................................................ 484,897 490,171 ----------- ----------- Repurchase agreements......................................................... 47,911 46,062 FHLB borrowings............................................................... 23,763 21,500 Accrued interest payable and other liabilities................................ 3,341 3,269 ----------- ----------- Total liabilities............................................................. 559,912 561,002 ----------- ----------- Shareholders' equity: Common stock, $1 par, 10,000,000 shares authorized, 5,593,430 shares outstanding at June 30, 2004 and 5,680,909 shares outstanding at June 30, 2003............................... 5,593 5,681 Capital in excess of par value................................................ 9,446 9,407 Retained earnings............................................................. 56,620 53,396 Accumulated other comprehensive income (loss), net............................ (1,000) 1,814 ----------- ----------- Total shareholders' equity.................................................... 70,659 70,298 ----------- ----------- Total liabilities and shareholders' equity....................................$ 630,571 $ 631,300 =========== ===========
Consolidated Statements of Income American National Bankshares Inc. and Subsidiary (In Thousands) (Unaudited) - ---------------------------------------------------------------------------------------------------------
Three Months Ended Six Months Ended June 30 June 30 ------------------ ------------------- 2004 2003 2004 2003 -------- -------- -------- -------- Interest Income: Interest and fees on loans....................................................$ 5,572 $ 6,508 $ 11,313 $ 13,067 Interest on deposits in other banks........................................... 13 11 44 36 Income on securities: Federal agencies............................................................ 835 511 1,657 1,060 Mortgage-backed............................................................. 233 385 466 839 State and municipal......................................................... 525 515 1,037 984 Other ...................................................................... 232 305 474 651 -------- ------- -------- -------- Total interest income....................................................... 7,410 8,235 14,991 16,637 -------- ------- -------- -------- Interest Expense: Interest on deposits: Demand...................................................................... 61 61 120 129 Money market................................................................ 92 125 194 264 Savings..................................................................... 104 212 213 437 Time........................................................................ 1,233 1,677 2,560 3,397 Interest on repurchase agreements............................................. 124 135 251 260 Interest on other borrowings.................................................. 250 248 491 490 -------- ------- -------- -------- Total interest expense...................................................... 1,864 2,458 3,829 4,977 -------- ------- -------- -------- Net Interest Income............................................................. 5,546 5,777 11,162 11,660 Provision for Loan Losses....................................................... 255 255 470 495 -------- ------- -------- -------- Net Interest Income After Provision For Loan Losses............................................................... 5,291 5,522 10,692 11,165 -------- ------- -------- -------- Non-Interest Income: Trust and investment services................................................. 743 647 1,471 1,253 Service charges on deposit accounts........................................... 631 541 1,205 964 Other fees and commissions.................................................... 222 210 468 438 Mortgage banking income....................................................... 211 150 344 278 Securities gains (losses), net................................................ 14 1 119 3 Other income.................................................................. 224 66 291 141 -------- ------- -------- -------- Total non-interest income................................................... 2,045 1,615 3,898 3,077 -------- ------- -------- -------- Non-Interest Expense: Salaries...................................................................... 1,846 1,754 3,614 3,475 Pension and other employee benefits........................................... 412 522 834 970 Occupancy and equipment....................................................... 647 640 1,264 1,281 Core deposit intangible amortization ......................................... 113 113 225 225 Other expenses................................................................ 931 853 1,813 1,740 -------- ------- -------- -------- Total non-interest expense.................................................. 3,949 3,882 7,750 7,691 -------- ------- -------- -------- Income Before Taxes............................................................. 3,387 3,255 6,840 6,551 Income Tax Provision............................................................ 963 947 1,946 1,909 -------- ------- -------- -------- Net Income......................................................................$ 2,424 $ 2,308 $ 4,894 $ 4,642 ======== ======= ======== ======== - --------------------------------------------------------------------------------------------------------------------------- Net Income Per Common Share: Basic.........................................................................$ .43 $ .40 $ .87 $ .81 Diluted.......................................................................$ .43 $ .40 $ .86 $ .80
Financial Highlights American National Bankshares Inc. and Subsidiary (Dollars in thousands, except per share data)
Three Months Ended Six Months Ended June 30 June 30 ------------------------ ------------------------ 2004 2003 Change 2004 2003 Change ----------- ----------- -------- ----------- ----------- -------- EARNINGS Interest income $ 7,410 $ 8,235 (10.0)% $ 14,991 $ 16,637 (9.9)% Interest expense 1,864 2,458 (24.2) 3,829 4,977 (23.1) Net interest income 5,546 5,777 (4.0) 11,162 11,660 (4.3) Provision for loan losses 255 255 - 470 495 (5.1) Noninterest income 2,045 1,615 26.6 3,898 3,077 26.7 Noninterest expense 3,949 3,882 1.7 7,750 7,691 .8 Income taxes 963 947 1.7 1,946 1,909 1.9 Net income 2,424 2,308 5.0 4,894 4,642 5.4 PER COMMON SHARE Earnings per share - basic $ .43 $ .40 7.5 % $ .87 $ .81 7.4 % Earnings per share - diluted .43 .40 7.5 .86 .80 7.5 Cash dividends paid .20 .19 5.3 .39 .37 5.4 Book value 12.64 12.37 2.2 Closing market price 21.78 25.96 (16.1) FINANCIAL RATIOS Return on average assets 1.52 % 1.49 % 3 bp 1.53 % 1.52 % 1 bp Return on average shareholders' equity 13.51 13.14 37 13.57 13.18 39 Average equity to average assets 11.25 11.32 (7) 11.28 11.50 (22) Net interest margin (FTE) 3.80 4.07 (27) 3.82 4.15 (33) Efficiency ratio 51.26 50.66 60 50.48 50.44 4 PERIOD END BALANCES Securities $ 199,580 $ 164,655 21.2 % Loans held for sale 1,059 2,106 (49.7) Loans - net of unearned income 400,613 432,647 (7.4) Assets 630,571 631,300 (.1) Deposits 484,897 490,171 (1.1) Repurchase agreement funding 47,911 46,062 4.0 FHLB borrowings 23,763 21,500 10.5 Shareholders' equity 70,659 70,298 .5 AVERAGE BALANCES Securities $ 201,131 $ 163,186 23.3 % $ 196,849 $ 160,660 22.5 % Loans - net of unearned income 405,717 427,380 (5.1) 406,881 418,970 (2.9) Interest-earning assets 612,418 594,536 3.0 613,559 586,046 4.7 Assets 637,890 620,486 2.8 639,356 612,118 4.4 Interest-bearing deposits 417,372 420,804 (.8) 421,095 416,783 1.0 Total deposits 493,036 484,716 1.7 494,241 479,162 3.1 Repurchase agreements 47,980 39,489 21.5 48,628 37,065 31.2 FHLB borrowings 22,222 22,426 (.9) 21,819 22,089 (1.2) Shareholders' equity 71,755 70,268 2.1 72,105 70,414 2.4 CAPITAL Average shares outstanding - basic 5,610,462 5,718,821 (1.9)% 5,629,370 5,737,354 (1.9)% Average shares outstanding - diluted 5,657,721 5,776,591 (2.1) 5,681,795 5,796,769 (2.0) Shares repurchased 43,368 65,000 75,568 100,000 Average price of shares repurchased $ 23.29 $ 24.58 $ 24.12 $ 24.86
Financial Highlights American National Bankshares Inc. and Subsidiary (Dollars in thousands, except per share data)
Three Months Ended Six Months Ended June 30 June 30 ------------------------ ------------------------ 2004 2003 Change 2004 2003 Change ----------- ----------- -------- ----------- ----------- -------- ALLOWANCE FOR LOAN LOSSES Beginning balance $ 5,323 $ 5,771 (7.8)% $ 5,292 $ 5,622 (5.9)% Provision for loan losses 255 255 - 470 495 (5.1) Charge-offs (196) (122) 60.7 (419) (286) 46.5 Recoveries 75 87 (13.8) 114 160 (28.8) ----------- ----------- ------ ----------- ----------- ------ Ending balance $ 5,457 $ 5,991 (8.9)% $ 5,457 $ 5,991 (8.9)% COMPOSITION OF RISK ASSETS Nonperforming loans: 90 days past due $ - $ 285 (100.0)% Nonaccrual 4,088 2,607 56.8 OREO 251 124 102.4 ----------- ----------- ------ Nonperforming assets $ 4,339 $ 3,016 43.9 % ASSET QUALITY RATIOS ** Nonperforming loans to total assets .69 % .48 % 21 bp Nonperforming loans to total loans 1.02 .67 35 Allowance for loan losses to total loans 1.36 1.38 (2) Allowance for loan losses to nonperforming loans 1.33 X 2.07 X (74) Notes: bp - Change is measured as difference in basis points ** - Balance sheet amounts used in calculations are based on period end balances
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