ex_180506.htm

EX-99.1 2 ex_180506.htm EXHIBIT 99.1 ex_180506.htm

Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Jeffrey W. Farrar

Executive Vice President, COO & CFO

(434)773-2274

farrarj@amnb.com

AMERICAN NATIONAL BANKSHARES

REPORTS FIRST QUARTER EARNINGS

Danville, VA, April 23, 2020 – American National Bankshares Inc. (NASDAQ: AMNB) (“American National” or the “Company”) today reported first quarter 2020 earnings of $8.5 million, or $0.77 per diluted common share. Those results compare to net income of $6.0 million, or $0.69 per diluted common share, during the same quarter in the prior year, and net income of $7.4 million, or $0.67 per diluted common share, recognized for the fourth quarter of 2019.

President and Chief Executive Officer Jeffrey V. Haley commented, “We are certainly pleased with the first quarter results, but have now entered unprecedented times in our nation with the onset of a global pandemic and resulting economic impacts. Our priorities have shifted somewhat to maintaining our high level of care for our customers, communities and our employees during this challenging time.”

“We have taken comprehensive steps to help each of these constituencies. For our customers, we’ve suspended foreclosures and provided payment deferrals, among other actions. Starting in March and continuing into last week, we have provided payment deferral assistance to over 450 customers with approximately $200 million in loan balances outstanding. In addition, we are pleased to be one of approximately 5,000 financial institutions who successfully implemented the SBA’s Paycheck Protection Program, in order to assist our small business customers. For our employees, we’ve enabled approximately 65% of our workforce to work remotely. We have made certain accommodations to employees whose roles require them to come into the office, and have taken significant actions to help ensure their safety. We continue to provide financial support to our communities and maintain banking hours at branches throughout our footprint.

“I’m incredibly proud of the efforts our employees are making across American National to support our customers and each other. We will come out of this together and stronger.”

First quarter 2020 highlights include:

●

Earnings produced a return on average assets of 1.37% for the first quarter of 2020, compared to 1.20% in the previous quarter and 1.29% for the same quarter in the prior year.

●

Net loans receivable increased $24.1 million for the quarter, or 5.3% annualized.

●

Net interest margin was 3.52% for the quarter, down from 3.62% in the fourth quarter of 2019 and up from 3.50% in the same quarter of the prior year (non-GAAP).

●

Noninterest revenues increased $629 thousand, or 16.3%, when compared to the previous quarter, and increased $1.0 million, or 30.3%, to $4.5 million from $3.5 million in the same quarter in the prior year.

●

The first quarter provision for loan losses totaled $953 thousand, which compares to a provision of $462 thousand for the previous quarter, and $16 thousand in the same quarter in the prior year.

●

Nonperforming assets as a percentage of total assets remained level at 0.16% at March 31, 2020, compared with 0.15% at December 31, 2019, and up from 0.10% at March 31, 2019.

●

Annualized net charge-offs were 0.01% for the first quarter of 2020, compared to zero for the corresponding quarter in the prior year and down from 0.02% for the fourth quarter of 2019.

NET INTEREST INCOME

Net interest income for the first quarter of 2020 was $20.0 million, a decrease of $529 thousand, or 2.59%, from the prior quarter and an increase of $4.9 million, or 32.2%, from the first quarter of 2019. The year-over-year growth was positively impacted by higher earning asset balances and overall higher loan yields in large part associated with the Hometown Bankshares (“HomeTown”) acquisition which was consummated on April 1, 2019. The quarter-over-quarter decrease in net interest income was principally the result of lower yields on assets associated with the recent decreases in short term rates and market pricing pressure in the commercial portfolio offset in part by a decrease in funding costs. The fully taxable equivalent (“FTE”) net interest margin for the quarter was 3.52%, down from 3.62% in the prior quarter and up from 3.50% in the same period a year ago (non-GAAP).

The Company’s FTE net interest margin includes the impact of acquisition accounting fair value adjustments. During the first quarter of 2020, net accretion related to acquisition accounting amounted to $957 thousand, compared to $255 thousand for the same period in 2019 and $1.1 million in the prior quarter. Estimated remaining net accretion from acquisitions for the periods indicated is as follows (dollars in thousands):

For the remaining nine months of 2020 (estimated)	$	1,712
For the years ending (estimated):
2021		1,769
2022		1,144
2023		695
2024		375
2025		276
Thereafter		1,165

ASSET QUALITY/LOAN LOSS PROVISION

Nonperforming assets (“NPAs”) totaled $4.0 million as of March 31, 2020, up from $3.6 million at December 31, 2019 and up from $2.0 million at March 31, 2019. NPAs as a percentage of total assets were 0.16% at March 31, 2020, which compares to 0.15% at December 31, 2019 and 0.10% at March 31, 2019.

The provision for loan losses was $953 thousand for the first quarter of 2020, as compared to $462 thousand for the previous quarter and $16 thousand for the same period in the previous year. The increase over the prior periods is a direct result of early stage declines in economic factors associated with increases in unemployment claims and a decrease in retail sales in the wake of the COVID-19 Pandemic. It also reflects $197 thousand in impairments recorded during the quarter, compared to $218 thousand in the prior quarter and $15 thousand in the same quarter of prior year. The allowance for loan losses was $14.1 million at March 31, 2020, compared to $13.2 million at December 31, 2019 and $12.8 million at March 31, 2019. Annualized net charge-offs as a percentage of average loans outstanding was 0.01% for the first quarter of 2020, compared to 0.02% in the previous quarter and none for the same period in the prior year. The allowance as a percentage of loans held for investment was 0.76% at March 31, 2020, compared to 0.72% at December 31, 2019 and 0.94% at March 31, 2019.

American National continues to use an incurred loss model for its allowance methodology and has not implemented the new current expected credit losses standard (CECL). CECL incorporates an estimation of expected losses over the life of the loans instead of the current model which is an incurred loss model. The CECL implementation guidance was amended in October 2019 allowing for the deferral of CECL for smaller reporting companies. American National qualified under this amendment and elected to defer the implementation until January 2023.

DISASTER ASSISTANCE AND PAYCHECK PROTECTION PROGRAMS

American National has implemented a Disaster Assistance Program (DAP) and is participating in the Paycheck Protection Program (“PPP”) initiated by the U.S. Treasury on April 3, 2020. At March 31, 2020, American National has provided interest only and payment deferrals to over 450 customers on loan balances of approximately $200 million. With respect to the PPP program, American National has to date processed with U.S. Small Business Administration approval 1,321 applications for loans in excess of $228 million, representing 96% of applications received prior to the Treasury initial funding allocation of $349 billion reaching capacity and all of which occurred subsequent to March 31, 2020. From a funding perspective, the Company expects to utilize core and wholesale funding for liquidity needs related to the DAP loan program, and both the Federal Reserve discount window and newly created Payroll Protection Program Lending Facility for the PPP program.

NONINTEREST INCOME

Noninterest income increased $629 thousand to $4.5 million for the quarter ended March 31, 2020 from $3.9 million in the prior quarter and increased $1.0 million from the same period in the prior year. The first quarter of 2020 benefitted from gains on the sale of securities of $814 thousand, partially offset by a $188 thousand decrease in mortgage banking income from the prior quarter. The improvement from the prior quarter was also attributable to losses of $309 thousand in the fourth quarter of 2019 related to the write-down of premises and equipment in connection with an ATM replacement initiative. Increases in service charges on deposits, other fees and commissions, mortgage banking fees and securities gains primarily accounted for the increase over the same period in the prior year.

NONINTEREST EXPENSE

Noninterest expense for the first quarter of 2020 amounted to $13.3 million, down $1.7 million, or 11.3%, when compared to the $15.0 million for the previous quarter and up $2.4 million, or 22.0%, when compared to the same period in the previous year. The change as compared to the previous quarter was driven by reduced corporate incentive and stock compensation expense in the first quarter of 2020 while the fourth quarter of 2019 reflected merger costs of $460 thousand, incentive compensation costs associated with establishing the Raleigh, North Carolina loan production office, and additional other professional fees and data processing costs. The increase from the same period in the prior year is primarily related to the acquisition of HomeTown.

INCOME TAXES

The effective tax rate for the three months ended March 31, 2020 was 15.7%, compared to 15.6% for the prior quarter and 20.7% for the same period in the prior year. The decreased rates for the quarters ended March 31, 2020 and December 31, 2019 compared to the rates for the three months ended March 31, 2019 are a result of tax benefits recognized during both periods. As a result of the enactment of the CARES Act in the first quarter of 2020, the Company recognized a tax benefit for the net operating loss (‘NOL’) five-year carryback provision for the NOL acquired in the HomeTown merger. An income tax benefit was realized for the difference between the current corporate income tax rate of 21% and the higher federal corporate tax rate of 35% prior to 2018. The lower effective tax rate in the fourth quarter of 2019 was primarily due to a change in the future effective rate assumption related to state apportionments which was prompted by the HomeTown acquisition.

ABOUT AMERICAN NATIONAL

American National is a multi-state bank holding company with total assets of approximately $2.5 billion. Headquartered in Danville, Virginia, American National is the parent company of American National Bank and Trust Company. American National Bank is a community bank serving Virginia and North Carolina with 26 banking offices. American National Bank also manages an additional $728 million of trust, investment and brokerage assets in its Trust and Investment Services Division. Additional information about American National and American National Bank is available on American National's website at www.amnb.com.

NON-GAAP FINANCIAL MEASURES

This release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). American National’s management uses these non-GAAP financial measures in its analysis of American National’s performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of American National’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. For a reconciliation of non-GAAP financial measures, see “Reconciliation of Non-GAAP Financial Measures” at the end of this release.

FORWARD-LOOKING STATEMENTS

Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current expectations and involve a number of assumptions. American National intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. American National’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could have a material effect on the operations and future prospects of American National include but are not limited to: (1) the impacts of the ongoing COVID-19 pandemic; (2) expected revenue synergies and cost savings from the recently completed merger with HomeTown may not be fully realized or realized within the expected timeframe; (3) changes in interest rates, general economic conditions, legislation and regulation, and monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury, Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System; (4) the quality and composition of the loan and securities portfolios, demand for loan products, deposit flows, competition, and demand for financial services in American National’s market areas; (5) the implementation of new technologies, and the ability to develop and maintain secure and reliable electronic systems; (6) accounting principles, policies, and guidelines; and (7) other risk factors detailed from time to time in filings made by American National with the Securities and Exchange Commission. American National undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

American National Bankshares Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
Unaudited

	March 31
	2020			2019
Assets
Cash and due from banks	$	39,602		$	28,912
Interest-bearing deposits in other banks		69,968			41,949

Equity securities, at fair value		-			2,069
Securities available for sale, at fair value		342,769			324,289
Restricted stock, at cost		8,682			5,299
Loans held for sale		2,666			1,252

Loans, net of unearned income		1,854,928			1,360,063
Less allowance for loan losses		(14,065	)		(12,806	)
Net Loans		1,840,863			1,347,257

Premises and equipment, net		39,632			26,663
Other real estate owned, net		984			646
Goodwill		85,048			43,872
Core deposit intangibles, net		7,301			871
Bank owned life insurance		27,970			19,047
Accrued interest receivable and other assets		29,580			26,278

Total assets	$	2,495,065		$	1,868,404


Liabilities
Demand deposits -- noninterest-bearing	$	567,772		$	425,579
Demand deposits -- interest-bearing		343,291			242,802
Money market deposits		524,234			379,668
Savings deposits		181,564			135,289
Time deposits		453,806			376,452
Total deposits		2,070,667			1,559,790

Customer repurchase agreements		42,114			35,945
Subordinated debt		7,513			-
Junior subordinated debt		28,054			27,953
Accrued interest payable and other liabilities		23,424			15,243
Total liabilities		2,171,772			1,638,931

Shareholders' equity
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding		-			-
Common stock, $1 par, 20,000,000 shares authorized, 10,957,502 shares outstanding at March 31, 2020 and 8,756,569 shares outstanding at March 31, 2019		10,898			8,705
Capital in excess of par value		153,817			78,738
Retained earnings		157,064			145,351
Accumulated other comprehensive income (loss), net		1,514			(3,321	)
Total shareholders' equity		323,293			229,473

Total liabilities and shareholders' equity	$	2,495,065		$	1,868,404

American National Bankshares Inc.

Consolidated Statements of Income

(Dollars in thousands, except per share data)

Unaudited

	Three Months Ended
	March 31
	2020			2019
Interest and Dividend Income:
Interest and fees on loans	$	21,321		$	15,638
Interest and dividends on securities:
Taxable		2,037			1,821
Tax-exempt		112			287
Dividends		132			84
Other interest income		264			266
Total interest and dividend income		23,866			18,096

Interest Expense:
Interest on deposits		3,312			2,472
Interest on short-term borrowings		129			172
Interest on subordinated debt		122			-
Interest on junior subordinated debt		384			384
Total interest expense		3,947			3,028

Net Interest Income		19,919			15,068
Provision for loan losses		953			16

Net Interest Income After Provision for Loan Losses		18,966			15,052

Noninterest Income:
Trust fees		1,012			914
Service charges on deposit accounts		721			594
Other fees and commissions		941			708
Mortgage banking income		549			406
Securities gains, net		814			323
Brokerage fees		211			147
Income from Small Business Investment Companies		55			168
Losses on premises and equipment, net		(82	)		-
Other		274			191
Total noninterest income		4,495			3,451

Noninterest Expense:
Salaries		6,059			4,664
Employee benefits		1,301			1,230
Occupancy and equipment		1,366			1,084
FDIC assessment		95			125
Bank franchise tax		426			290
Core deposit intangible amortization		427			55
Data processing		763			532
Software		356			324
Other real estate owned, net		(9	)		13
Merger related expenses		-			451
Other		2,550			2,161
Total noninterest expense		13,334			10,929

Income Before Income Taxes		10,127			7,574
Income Taxes		1,585			1,571
Net Income	$	8,542		$	6,003

Net Income Per Common Share:
Basic	$	0.77		$	0.69
Diluted	$	0.77		$	0.69
Weighted Average Common Shares Outstanding:
Basic		11,025,185			8,745,174
Diluted		11,031,310			8,745,723

American National Bankshares Inc.
Financial Highlights
Unaudited

(Dollars in thousands, except per share data)
	1st Qtr			4th Qtr			1st Qtr
	2020			2019			2019
EARNINGS
Interest income	$	23,866		$	24,590		$	18,096
Interest expense		3,947			4,142			3,028
Net interest income		19,919			20,448			15,068
Provision for loan losses		953			462			16
Noninterest income		4,495			3,866			3,451
Noninterest expense		13,334			15,037			10,929
Income taxes		1,585			1,374			1,571
Net income		8,542			7,441			6,003

PER COMMON SHARE
Net income per share - basic	$	0.77		$	0.67		$	0.69
Net income per share - diluted		0.77			0.67			0.69
Cash dividends paid		0.27			0.27			0.25
Book value per share		29.50			28.93			26.21
Book value per share - tangible (a)		21.08			20.64			21.10
Closing market price		23.90			39.57			34.92

FINANCIAL RATIOS
Return on average assets		1.37	%		1.20	%		1.29
Return on average equity		10.56			9.31			10.69
Return on average tangible equity (a)		15.32			13.71			13.44
Average equity to average assets		12.99			12.88			12.06
Tangible equity to tangible assets (a)		9.61			9.57			10.13
Net interest margin, taxable equivalent		3.52			3.62			3.50
Efficiency ratio (a)		54.46			57.24			56.95
Effective tax rate		15.65			15.59			20.74

PERIOD-END BALANCES
Securities	$	351,451		$	387,825		$	331,657
Loans held for sale		2,666			2,027			1,252
Loans, net		1,854,928			1,830,815			1,360,063
Goodwill and other intangibles		92,349			91,730			44,743
Assets		2,495,065			2,478,550			1,868,404
Assets - tangible (a)		2,402,716			2,386,820			1,823,661
Deposits		2,070,667			2,060,547			1,559,790
Customer repurchase agreements		42,114			40,475			35,945
Long-term borrowings		35,567			35,546			27,953
Shareholders' equity		323,293			320,258			229,473
Shareholders' equity - tangible (a)		230,944			228,528			184,730

AVERAGE BALANCES
Securities (b)	$	369,730		$	347,502		$	343,834
Loans held for sale		3,156			4,991			1,830
Loans, net		1,829,125			1,810,744			1,352,521
Interest-earning assets		2,274,920			2,264,687			1,736,887
Goodwill and other intangibles		91,738			92,607			44,778
Assets		2,491,591			2,482,502			1,863,212
Assets - tangible (a)		2,399,853			2,389,895			1,818,434
Interest-bearing deposits		1,495,565			1,466,116			1,131,604
Deposits		2,069,927			2,066,435			1,551,413
Customer repurchase agreements		41,519			38,742			42,705
Other short-term borrowings		3			-			61
Long-term borrowings		35,554			35,537			27,937
Shareholders' equity		323,573			319,851			224,677
Shareholders' equity - tangible (a)		231,835			227,244			179,899

American National Bankshares Inc.

Financial Highlights

Unaudited

(Dollars in thousands, except per share data)
	1st Qtr			4th Qtr			1st Qtr
	2020			2019			2019
CAPITAL
Weighted average shares outstanding - basic		11,025,185			11,094,346			8,745,174
Weighted average shares outstanding - diluted		11,031,310			11,103,905			8,745,723

ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	13,152		$	12,758		$	12,805
Provision for loan losses		953			462			16
Charge-offs		(105	)		(144	)		(69	)
Recoveries		65			76			54
Ending balance	$	14,065		$	13,152		$	12,806

LOANS
Construction and land development	$	141,154		$	137,920		$	93,759
Commercial real estate		953,363			899,199			659,133
Residential real estate		301,284			324,315			212,665
Home equity		118,030			119,423			99,979
Commercial and industrial		331,507			339,077			289,301
Consumer		9,590			10,881			5,226
Total	$	1,854,928		$	1,830,815		$	1,360,063

NONPERFORMING ASSETS AT PERIOD-END
Nonperforming loans:
90 days past due and accruing	$	459		$	361		$	197
Nonaccrual		2,579			1,944			1,111
Other real estate owned		984			1,308			646
Nonperforming assets	$	4,022		$	3,613		$	1,954

ASSET QUALITY RATIOS
Allowance for loan losses to total loans		0.76	%		0.72	%		0.94
Allowance for loan losses to nonperforming loans		462.97			570.59			979.05
Nonperforming assets to total assets		0.16			0.15			0.10
Nonperforming loans to total loans		0.16			0.13			0.10
Annualized net charge-offs to average loans		0.01			0.02			0.00


OTHER DATA
Fiduciary assets at period-end (c) (d)	$	492,850		$	560,776		$	533,063
Retail brokerage assets at period-end (c) (d)	$	235,359		$	317,262		$	303,045
Number full-time equivalent employees (e)		355			355			299
Number of full service offices		26			26			24
Number of loan production offices		1			1			-
Number of ATMs		38			38			33

Notes:

(a) - This financial measure is not calculated in accordance with GAAP. For a reconciliation of non-GAAP financial measures, see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.

(b) - Average does not include unrealized gains and losses.

(d) - Assets are not owned by American National and are not reflected in the consolidated balance sheet.

(e) - Average for quarter.

Net Interest Income Analysis

For the Three Months Ended March 31, 2020 and 2019

(Dollars in thousands)

Unaudited

					Interest
	Average Balance				Income/Expense (a)				Yield/Rate

	2020		2019		2020		2019		2020			2019
Loans:
Commercial	$	332,920	$	265,578	$	3,543	$	2,891		4.28	%		4.41	%
Real estate		1,489,319		1,083,800		17,663		12,716		4.74			4.69
Consumer		10,042		4,973		157		75		6.29			6.12
Total loans (b)		1,832,281		1,354,351		21,363		15,682		4.67			4.64

Securities:
U.S. Treasury		9,049		-		36		-		1.59			-
Federal agencies & GSEs		103,311		139,465		576		850		2.23			2.44
Mortgage-backed & CMOs		197,774		111,701		1,144		693		2.31			2.48
State and municipal		40,825		78,597		288		538		2.82			2.74
Other		18,771		14,071		264		178		5.63			5.06
Total securities		369,730		343,834		2,308		2,259		2.50			2.63

Deposits in other banks		72,909		38,702		264		266		1.46			2.79

Total interest-earning assets		2,274,920		1,736,887		23,935		18,207		4.21			4.20

Non-earning assets		216,671		126,325

Total assets	$	2,491,591	$	1,863,212

Deposits:
Demand	$	331,357	$	238,430		123		14		0.15			0.02
Money market		515,339		395,704		1,188		1,153		0.93			1.18
Savings		178,896		134,060		53		10		0.12			0.03
Time		469,973		363,410		1,948		1,295		1.67			1.45
Total deposits		1,495,565		1,131,604		3,312		2,472		0.89			0.89

Customer repurchase agreements		41,519		42,705		129		171		1.25			1.62
Other short-term borrowings		3		61		-		1		1.01			6.56
Long-term borrowings		35,554		27,937		506		384		5.69			5.50
Total interest-bearing liabilities		1,572,641		1,202,307		3,947		3,028		1.01			1.02

Noninterest bearing demand deposits		574,362		419,809
Other liabilities		21,015		16,419
Shareholders' equity		323,573		224,677
Total liabilities and shareholders' equity	$	2,491,591	$	1,863,212

Interest rate spread										3.20	%		3.18	%
Net interest margin										3.52	%		3.50	%

Net interest income (taxable equivalent basis)						19,988		15,179
Less: Taxable equivalent adjustment (c)						69		111
Net interest income					$	19,919	$	15,068

Notes:

(a) - Interest income includes net accretion/amortization of acquired loan fair value adjustments and the net accretion/amortization of deferred loan fees and costs.

(b) - Nonaccrual loans are included in the average balances.

American National Bankshares Inc.
Reconciliation of Non-GAAP Financial Measures
Unaudited

(Dollars in thousands, except per share data)
	1st Qtr			4th Qtr			1st Qtr
	2020			2019			2019
EFFICIENCY RATIO
Noninterest expense	$	13,334		$	15,037		$	10,929
Add/subtract: gain/loss on sale of OREO		27			(3	)		2
Subtract: core deposit intangible amortization		(427	)		(437	)		(55	)
Subtract: merger related expenses		-			(460	)		(451	)
	$	12,934		$	14,137		$	10,425

Net interest income	$	19,919		$	20,448		$	15,068
Tax equivalent adjustment		69			76			111
Noninterest income		4,495			3,866			3,451
Subtract: gain on securities		(814	)		(32	)		(323	)
Add: loss on fixed assets		82			338			-
	$	23,751		$	24,696		$	18,307

Efficiency ratio		54.46	%		57.24	%		56.95	%

TAX EQUIVALENT NET INTEREST INCOME
Non-GAAP measures:
Interest income - loans	$	21,363		$	21,993		$	15,682
Interest income - investments and other		2,572			2,673			2,525
Interest expense - deposits		(3,312	)		(3,496	)		(2,472	)
Interest expense - customer repurchase agreements		(129	)		(134	)		(171	)
Interest expense - other short-term borrowings		-			-			(1	)
Interest expense - long-term borrowings		(506	)		(512	)		(384	)
Total net interest income	$	19,988		$	20,524		$	15,179
Less non-GAAP measures:
Tax benefit on nontaxable interest - loans		(42	)		(46	)		(44	)
Tax benefit on nontaxable interest - securities		(27	)		(30	)		(67	)
GAAP measures	$	19,919		$	20,448		$	15,068


RETURN ON AVERAGE TANGIBLE EQUITY
Return on average equity (GAAP basis)		10.56	%		9.31	%		10.69	%
Impact of excluding average goodwill and other intangibles		4.76			4.40			2.75
Return on average tangible equity (non-GAAP)		15.32	%		13.71	%		13.44	%

TANGIBLE EQUITY TO TANGIBLE ASSETS
Equity to assets ratio (GAAP basis)		12.96	%		12.92	%		12.28	%
Impact of excluding goodwill and other intangibles		3.35			3.35			2.15
Tangible equity to tangible assets ratio (non-GAAP)		9.61	%		9.57	%		10.13	%

TANGIBLE BOOK VALUE
Book value per share (GAAP basis)	$	29.50		$	28.93		$	26.21
Impact of excluding goodwill and other intangibles		8.42			8.29			5.11
Tangible book value per share (non-GAAP)	$	21.08		$	20.64		$	21.10