0001437749-22-001555.txt : 20220125 0001437749-22-001555.hdr.sgml : 20220125 20220125130342 ACCESSION NUMBER: 0001437749-22-001555 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 14 CONFORMED PERIOD OF REPORT: 20220120 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20220125 DATE AS OF CHANGE: 20220125 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: 22552387 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 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN NATIONAL BANKSHARES INC DATE OF NAME CHANGE: 19920703 8-K 1 americannb20220119_8k.htm FORM 8-K americannb20220119_8k.htm
false 0000741516 0000741516 2022-01-20 2022-01-20
 
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 (Date of earliest event reported) January 20, 2022
 
AMERICAN NATIONAL BANKSHARES INC.
(Exact name of registrant as specified in its charter)
 
Virginia
0-12820
54-1284688
(State or other jurisdiction of incorporation)
(Commission File Number)
(I.R.S. Employer Identification No.)
 
 
 
628 Main Street, Danville, VA 24541
(Address of principal executive offices) (Zip Code)
 
Registrant’s telephone number, including area code: 434-792-5111
 
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $1.00 par value
AMNB
Nasdaq Global Select Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
 

 
Item 2.02 Results of Operations and Financial Condition
 
On January 20, 2022, American National Bankshares Inc. ("the Company") reports earnings for fourth quarter and full year 2021.
 
Item 9.01 Financial Statements and Exhibits
 
(d) Exhibits:
 
Exhibit No. Description
   
99.1
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
 
 

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: January 25, 2022 By: /s/ Jeffrey W. Farrar
      Jeffrey W. Farrar
      Executive Vice President,
      Chief Financial Officer, and Chief Operating Officer
 
 
EX-99.1 2 ex_325706.htm EXHIBIT 99.1 ex_325706.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 FOURTH QUARTER AND FULL YEAR 2021 EARNINGS

 

Danville, VA, January 20, 2022 – American National Bankshares Inc. (NASDAQ: AMNB) (“American National” or the “Company”) today reported fourth quarter 2021 earnings of $11.3 million, or $1.05 per diluted common share. Those results compare to $8.8 million, or $0.80 per diluted common share, during the same quarter in the prior year, and net income of $10.2 million, or $0.94 per diluted common share, recognized for the third quarter of 2021. Earnings for the twelve months ended December 31, 2021 were $43.5 million, or $4.00 per diluted common share, compared to $30.0 million, or $2.73 per diluted common share for the same period of 2020

 

President and Chief Executive Officer Jeffrey V. Haley commented, “American National finished 2021 on a positive note with strong earnings for the fourth quarter and the full year. Core loan growth for the quarter was 6.6% annualized in spite of some significant paydown activity, and deposit growth continued to exceed expectations. Business activity and our local economies remain fairly robust in spite of factors associated with elevated inflation, supply chain issues and the ongoing pandemic.”

 

“I am so proud and appreciative of the efforts of our employees, the support of our customers and our shareholders over the past year. We had a very successful year financially, but also achieved many other milestones as we continue to build the Company for future success.”  

 

Fourth quarter 2021 highlights include:

 

 

Average loans held for investment, excluding U.S. Small Business Administration Paycheck Protection Program (“PPP”) loans, grew $69.0 million, or 14.9% annualized, during the fourth quarter compared to growth of $39.5 million, or 8.7% annualized, in the third quarter of this year and compared to a decrease of $13.6 million, or 3.0% annualized, in the fourth quarter of the prior year.

 

 

Earnings produced a return on average tangible common equity of 17.63% for the fourth quarter of 2021, compared to 16.01% in the previous quarter and 14.90% for the same quarter in the prior year (non-GAAP).

 

 

Average deposits grew 5.3% during the quarter and 14.9% over the same quarter of 2020; the cost of interest-bearing deposits decreased to 0.14% in the fourth quarter, compared to 0.17% in the previous quarter and 0.43% in the same quarter of the prior year.

 

 

Fully taxable equivalent (“FTE”) net interest margin was 2.93% for the quarter, down from 3.09% in the third quarter of 2021 and from 3.22% in the same quarter of the prior year (non-GAAP).

 

 

Noninterest revenues decreased $279 thousand, or 5.4%, when compared to the previous quarter, and increased $623 thousand, or 14.8%, compared to the same quarter in the prior year.

 

 

Noninterest expense increased $620 thousand, or 4.2%, when compared to the previous quarter, and increased $804 thousand, or 5.5%, when compared to the same quarter in the prior year.

 

 

The Company recognized a negative provision for loan losses in the fourth quarter of 2021 of $2.0 million compared to a provision expense of $482 thousand in the third quarter of 2021 and $585 thousand in the fourth quarter of 2020. Annualized net charge-offs (recoveries) as a percentage of average loans outstanding were (0.00%) for the fourth quarter 2021, (0.01%) for the third quarter of 2021 and 0.05% for the fourth quarter of 2020.

 

 

Nonperforming assets as a percentage of total assets were 0.07% at December 31, 2021, up from 0.06% at September 30, 2021 but down from 0.12% at December 31, 2020.

 

 

 

SMALL BUSINESS ADMINISTRATIONS PPP

 

The Company has processed a total of $364.2 million in PPP loans, with total remaining outstanding net PPP loans of $12.2 million at December 31, 2021, down from $37.2 million at September 30, 2021. These quarter-end balances are net of $24.9 million of loans forgiven in the fourth quarter of 2021 compared to $66.9 million forgiven in the third quarter. Total PPP fees recognized in net interest income during the fourth quarter of 2021 were $919,000 compared to the prior quarter’s $2.4 million. The interest income from the outstanding PPP portfolio generated $68,000 and $169,000, respectively, in the fourth and third quarters of 2021.

 

NET INTEREST INCOME

 

Net interest income for the fourth quarter of 2021 was stable compared to the third quarter at $23.1 million. The fourth quarter of 2021 compared to the same quarter of 2020 reflected an increase of $958 thousand, or 4.3%. The FTE net interest margin for the quarter was 2.93%, down from 3.09% in the prior quarter and 3.22% in the same quarter a year ago (non-GAAP). The reduction in PPP income was offset by additional accretion income on purchased loans, higher interest income associated with higher average balances on loans and growth in investment income in the fourth quarter compared to the third quarter of 2021. The increase in net interest income from the same quarter in the prior year was attributable to the same factors as well as the significantly lower rate environment in 2021, which reduced interest expense on deposits $1.2 million, or 64.0%.

 

The Company’s FTE net interest margin includes the impact of acquisition accounting fair value adjustments. During the fourth quarter of 2021, net accretion related to acquisition accounting amounted to $2.1 million compared to $1.3 million in the prior quarter of 2021 and $1.2 million for the same quarter in 2020. Net accretion for the twelve months ended December 31, 2021 amounted to $5.2 million, compared to $3.8 million for the same period in 2020. Estimated remaining net accretion from acquisitions for the periods indicated is as follows (dollars in thousands):

 

For the years ending (estimated):

2022

  $ 1,100  

2023

    690  

2024

    429  

2025

    292  

2026

    171  

Thereafter

    234  

 

ASSET QUALITY

 

Nonperforming assets (“NPAs”) totaled $2.4 million as of December 31, 2021, up slightly from $2.1 million at September 30, 2021, and down significantly from $3.7 million at December 31, 2020. NPAs as a percentage of total assets were 0.07% at December 31, 2021, compared to 0.06% at September 30, 2021 and 0.12% at December 31, 2020.

 

The Company recorded a negative provision for the fourth quarter of 2021 of $2.0 million compared to the recognition of a provision of $482 thousand in the third quarter and $585 thousand in the fourth quarter in the previous year. The fourth quarter of 2021 negative provision compared to the third quarter of 2021 and the fourth quarter of 2020 was the result of continued improvement in economic conditions, ongoing low charge-off and deliquency rates, and overlal strong asset quality metrics. In addition, the third quarter provision was higher due to significant loan growth during the period. The allowance for loan losses was $18.7 million at December 31, 2021, compared to $20.6 million at September 30, 2021 and $21.4 million at December 31, 2020. Annualized net charge-offs (recoveries) as a percentage of average loans outstanding were (0.00%) for the fourth quarter of 2021, compared to (0.01%) in the previous quarter and 0.05% for the same quarter in the prior year. The allowance as a percentage of loans held for investment was 0.96% at December 31, 2021, compared to 1.06% at September 30, 2021, and 1.06% at December 31, 2020. Excluding PPP loans, the allowance as a percentage of loans decreased to 0.97% at December 31, 2021, compared to 1.08% at September 30, 2021 and 1.19% at December 31, 2020.

 

 

 

NONINTEREST INCOME

 

Noninterest income decreased $279 thousand, or 5.4%, to $4.8 million for the quarter ended December 31, 2021 from $5.1 million in the prior quarter and increased $623 thousand, or 14.8%, from the same quarter in the prior year. The fourth quarter of 2021 decrease from the prior quarter was the result of increase write-downs on premises and equipment, net of $190 thousand or 178% and a decrease in mortgage banking income of $243 thousand or 24.6%. The increased expense was partially offset by an increase in other fees and commissions of $162 thousand, or 14.1%, in the fourth quarter compared to the third quarter of 2021.

 

The fourth quarter of 2021 compared to the fourth quarter of 2020 reflected significant growth in trust fees of $240 thousand, or 23.4%, other fees and commissions of $272 thousand, or 26.2%, income from small business investment companies of $226 thousand, or 95.8%, offset by a $296 thousand, or 28.4%, decrease in mortgage banking income.

 

NONINTEREST EXPENSE

 

Noninterest expense for the fourth quarter of 2021 amounted to $15.5 million, up $620 thousand, or 4.2%, when compared to the $14.8 million for the previous quarter and up $804 thousand, or 5.5%, from $14.7 million during the same quarter in the previous year. The increase in the fourth quarter compared to the third quarter of 2021 was due to higher compensation costs associated primarily with incentive accrual adjustments, and in other expenses which included $150,000 in additional charitable contributions. Fourth quarter 2021 increases compared to the same quarter of 2020 were primarily due to increased compensation costs and expense seasonality.

 

INCOME TAXES

 

The effective tax rate for the three months ended December 31, 2021 was 21.80%, compared to 21.05% for the prior quarter and 20.94% for the same quarter in the prior year. The effective tax rate was relatively consistent among the periods, with slight increases in the 2021 periods atttributable to changes in pre-tax earnings and the levels of permanent tax differences.

 

BALANCE SHEET

 

Total assets at December 31, 2021 were $3.3 billion, an increase of $45.5 million from September 30, 2021 and $284.6 million from December 31, 2020. The growth over the previous quarter and over the same quarter of 2020 is the result of continued core deposit growth, deployment of excess liquidity into investments, and loan growth.

 

At December 31, 2021, loans held for investment (net of deferred fees and costs) were $1.9 billion, an increase of $6.2 million, or 1.3%, annualized from September 30, 2021. This increase is net of $25.9 million of PPP loans forgiven during the fourth quarter of 2021. Loans held for investment increased $130.6 million, or 7.2%, from December 31, 2020 excluding PPP loans.

 

Investment securities available for sale amounted to $692.5 million at December 31, 2021, with growth of $48.6 million, or 7.5%, compared to September 30, 2021, and growth of $226.4 million, or 48.6%, compared to December 31, 2020.

 

Deposits amounted to $2.9 billion at December 31, 2021, with growth of $28.3 million, or 4.0%, annualized from September 30, 2021 and $279.0 million, or 10.7%, compared to December 31, 2020. The growth over the same quarter and prior quarter of 2020 is a result of continued higher than average cash balances being maintained by customers. 

 

The Company continues to be well-capitalized as defined by regulators, with tangible common equity to tangible assets of 8.17% at December 31, 2021 as compared to 8.14% at September 30, 2021 and compared to 8.34% at December 31, 2020. The Company’s common equity Tier 1, Tier 1, total, and Tier 1 leverage capital ratios were 12.43%, 13.73%, 14.61% and 9.13%, respectively, at December 31, 2021.

 

 

 

ABOUT AMERICAN NATIONAL

 

American National is a multi-state bank holding company with total assets of approximately $3.3 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 $1.2 billion of trust, investment and brokerage assets in its Wealth 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 and the associated efforts to limit the spread of the virus; (2) expected revenue synergies and cost savings from acquisitions and depositions; (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 adequacy of the level of the allowance for loan losses, the amount of loan loss provisions required in future quarters, and the failure of assumptions underlying the allowance for loan losses; (6) cybersecurity threats or attacks, the implementation of new technologies, and the ability to develop and maintain secure and reliable electronic systems; (7) accounting principles, policies, and guidelines; and (8) 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)

 

   

December 31,

 
   

2021

   

2020

 
    (Unaudited)     (Audited)  

Assets

               

Cash and due from banks

  $ 23,095     $ 30,767  

Interest-bearing deposits in other banks

    487,773       343,603  

Securities available for sale, at fair value

    692,467       466,091  

Restricted stock, at cost

    8,056       8,715  

Loans held for sale

    8,481       15,591  

Loans, net of deferred fees and costs

    1,946,580       2,015,056  

Less allowance for loan losses

    (18,678 )     (21,403 )

Net Loans

    1,927,902       1,993,653  

Premises and equipment, net

    35,564       39,723  

Other real estate owned, net

    143       958  

Goodwill

    85,048       85,048  

Core deposit intangibles, net

    4,627       6,091  

Bank owned life insurance

    29,107       28,482  

Other assets

    32,334       31,288  
                 

Total assets

  $ 3,334,597     $ 3,050,010  
                 
                 

Liabilities

               

Demand deposits -- noninterest-bearing

  $ 1,009,081     $ 830,094  

Demand deposits -- interest-bearing

    547,878       501,283  

Money market deposits

    719,498       666,122  

Savings deposits

    259,193       217,405  

Time deposits

    354,703       396,426  

Total deposits

    2,890,353       2,611,330  

Customer repurchase agreements

    41,128       42,551  

Long-term borrowings

    28,232       35,630  

Other liabilities

    20,092       22,605  

Total liabilities

    2,979,805       2,712,116  
                 

Shareholders' equity

               

Preferred stock, $5 par value, 2,000,000 shares authorized, none outstanding

    -       -  

Common stock, $1 par value, 20,000,000 shares authorized, 10,766,967 shares outstanding at December 31, 2021 and 10,982,367 shares outstanding at December 31, 2020

    10,710       10,926  

Capital in excess of par value

    147,777       154,850  

Retained earnings

    201,380       169,681  

Accumulated other comprehensive income (loss), net

    (5,075 )     2,437  

Total shareholders' equity

    354,792       337,894  
                 

Total liabilities and shareholders' equity

  $ 3,334,597     $ 3,050,010  

 

 

 

American National Bankshares Inc.

Consolidated Statements of Income

(Dollars in thousands, except per share data)

 

   

For the Three Months Ended

   

For the Twelve Months Ended

 
   

12/31/21

   

9/30/21

   

12/31/20

   

12/31/21

   

12/31/20

 
   

(Unaudited)

   

(Unaudited)

   

(Unaudited)

   

(Unaudited)

   

(Audited)

 

Interest and Dividend Income:

                                       

Interest and fees on loans

  $ 21,706     $ 21,974     $ 22,654     $ 87,040     $ 87,700  

Interest and dividends on securities:

                                       

Taxable

    2,012       1,896       1,536       7,309       6,764  

Tax-exempt

    92       94       103       385       433  

Dividends

    115       112       121       464       503  

Other interest income

    223       201       84       598       440  

Total interest and dividend income

    24,148       24,277       24,498       95,796       95,840  
                                         

Interest Expense:

                                       

Interest on deposits

    655       781       1,821       3,645       9,729  

Interest on short-term borrowings

    3       3       22       22       259  

Interest on long-term borrowings

    386       400       509       1,738       2,032  

Total interest expense

    1,044       1,184       2,352       5,405       12,020  
                                         

Net Interest Income

    23,104       23,093       22,146       90,391       83,820  

(Recovery of) Provision for loan losses

    (1,955 )     482       585       (2,825 )     8,916  
                                         

Net Interest Income After (Recovery of) Provision for Loan Losses

    25,059       22,611       21,561       93,216       74,904  
                                         

Noninterest Income:

                                       

Trust fees

    1,265       1,311       1,025       5,022       4,044  

Service charges on deposit accounts

    695       664       677       2,611       2,557  

Other fees and commissions

    1,309       1,147       1,037       4,953       3,925  

Mortgage banking income

    746       989       1,042       4,195       3,514  

Securities gains, net

    35       -       -       35       814  

Brokerage fees

    264       265       192       997       745  

Income from Small Business Investment Companies

    462       491       236       1,972       270  

Income (loss) from insurance investments

    137       132       (58 )     1,199       321  

Losses on premises and equipment, net

    (297 )     (107 )     (13 )     (885 )     (110 )

Other

    228       231       83       932       763  

Total noninterest income

    4,844       5,123       4,221       21,031       16,843  
                                         

Noninterest Expense:

                                       

Salaries and employee benefits

    8,461       8,185       8,225       32,342       29,765  

Occupancy and equipment

    1,484       1,513       1,470       6,032       5,586  

FDIC assessment

    220       194       206       864       639  

Bank franchise tax

    446       440       425       1,767       1,702  

Core deposit intangible amortization

    351       361       391       1,464       1,637  

Data processing

    734       748       764       2,958       3,017  

Software

    357       344       342       1,368       1,454  

Other real estate owned, net

    (17 )     21       26       131       60  

Other

    3,427       3,037       2,810       12,082       10,705  

Total noninterest expense

    15,463       14,843       14,659       59,008       54,565  
                                         

Income Before Income Taxes

    14,440       12,891       11,123       55,239       37,182  

Income Taxes

    3,147       2,713       2,329       11,713       7,137  

Net Income

  $ 11,293     $ 10,178     $ 8,794     $ 43,526     $ 30,045  
                                         

Net Income Per Common Share:

                                       

Basic

  $ 1.05     $ 0.94     $ 0.80     $ 4.00     $ 2.74  

Diluted

  $ 1.05     $ 0.94     $ 0.80     $ 4.00     $ 2.73  

Weighted Average Common Shares Outstanding:

                                       

Basic

    10,774,268       10,833,875       10,975,349       10,873,817       10,981,623  

Diluted

    10,776,970       10,836,293       10,978,931       10,877,231       10,985,790  

 

 

 

American National Bankshares Inc.

Financial Highlights

 

 

(Dollars in thousands, except per share data)

                         

At or for the Twelve Months

 
   

4th Qtr

   

3rd Qtr

   

4th Qtr

   

Ended December 31,

 
   

2021

   

2021

   

2020

   

2021

   

2020

 
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Audited)  

EARNINGS

                                       

Interest income

  $ 24,148     $ 24,277     $ 24,498     $ 95,796     $ 95,840  

Interest expense

    1,044       1,184       2,352       5,405       12,020  

Net interest income

    23,104       23,093       22,146       90,391       83,820  

(Recovery of) Provision for loan losses

    (1,955 )     482       585       (2,825 )     8,916  

Noninterest income

    4,844       5,123       4,221       21,031       16,843  

Noninterest expense

    15,463       14,843       14,659       59,008       54,565  

Income taxes

    3,147       2,713       2,329       11,713       7,137  

Net income

    11,293       10,178       8,794       43,526       30,045  
                                         

PER COMMON SHARE

                                       

Net income per share - basic

  $ 1.05     $ 0.94     $ 0.80     $ 4.00     $ 2.74  

Net income per share - diluted

    1.05       0.94       0.80       4.00       2.73  

Cash dividends paid

    0.28       0.27       0.27       1.09       1.08  

Book value per share

    32.95       32.51       30.77       32.95       30.77  

Book value per share - tangible (a)

    24.62       24.16       22.47       24.62       22.47  

Closing market price

    37.68       33.04       26.21       37.68       26.21  
                                         

FINANCIAL RATIOS

                                       

Return on average assets

    1.35 %     1.27 %     1.18 %     1.37 %     1.08 %

Return on average common equity

    12.82       11.58       10.48       12.50       9.12  

Return on average tangible common equity (a)

    17.63       16.01       14.90       17.34       13.19  

Average common equity to average assets

    10.50       10.99       11.30       10.96       11.88  

Tangible common equity to tangible assets (a)

    8.17       8.14       8.34       8.17       8.34  

Net interest margin, taxable equivalent

    2.93       3.09       3.22       3.05       3.30  

Efficiency ratio (a)

    53.46       51.03       53.92       51.05       52.80  

Effective tax rate

    21.79       21.05       20.94       21.20       19.19  
                                         

PERIOD-END BALANCES

                                       

Securities

  $ 700,523     $ 651,995     $ 474,806     $ 700,523     $ 474,806  

Loans held for sale

    8,481       9,518       15,591       8,481       15,591  

Loans, net

    1,946,580       1,940,332       2,015,056       1,946,580       2,015,056  

Goodwill and other intangibles

    89,675       90,026       91,139       89,675       91,139  

Assets

    3,334,597       3,289,063       3,050,010       3,334,597       3,050,010  

Assets - tangible (a)

    3,244,922       3,199,037       2,958,871       3,244,922       2,958,871  

Deposits

    2,890,353       2,862,081       2,611,330       2,890,353       2,611,330  

Customer repurchase agreements

    41,128       26,595       42,551       41,128       42,551  

Long-term borrowings

    28,232       28,207       35,630       28,232       35,630  

Shareholders' equity

    354,792       350,387       337,894       354,792       337,894  

Shareholders' equity - tangible (a)

    265,117       260,361       246,755       265,117       246,755  
                                         

AVERAGE BALANCES

                                       

Securities (b)

  $ 654,595     $ 569,508     $ 372,529     $ 549,554     $ 347,952  

Loans held for sale

    8,121       9,835       8,601       11,257       6,578  

Loans, net

    1,943,238       1,913,446       2,063,397       1,953,121       2,008,683  

Interest-earning assets

    3,154,730       2,989,661       2,754,455       2,967,799       2,551,913  

Goodwill and other intangibles

    89,855       90,257       91,358       90,413       91,751  

Assets

    3,357,223       3,199,514       2,971,505       3,176,564       2,773,007  

Assets - tangible (a)

    3,267,368       3,109,257       2,880,147       3,086,151       2,681,256  

Interest-bearing deposits

    1,868,695       1,817,595       1,701,395       1,797,385       1,595,694  

Deposits

    2,914,381       2,768,268       2,536,363       2,736,571       2,342,353  

Customer repurchase agreements

    39,645       29,681       40,819       37,632       42,937  

Other short-term borrowings

    -       -       -       -       1  

Long-term borrowings

    28,218       28,192       35,617       31,878       35,586  

Shareholders' equity

    352,395       351,646       335,671       348,158       329,353  

Shareholders' equity - tangible (a)

    262,540       261,389       244,313       257,745       237,602  

 

 

 

American National Bankshares Inc.

Financial Highlights

 

(Dollars in thousands, except per share data)

                 

At or for the Twelve Months

 
 

4th Qtr

 

3rd Qtr

 

4th Qtr

 

Ended December 31,

 
 

2021

 

2021

 

2020

 

2021

 

2020

 
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Audited)  

CAPITAL

                             

Weighted average shares outstanding - basic

  10,774,268     10,833,875     10,975,349     10,873,817     10,981,623  

Weighted average shares outstanding - diluted

  10,776,970     10,836,293     10,978,931     10,877,231     10,985,790  
                               

COMMON STOCK REPURCHASE PROGRAM

                             

Total shares of common stock repurchased

  16,580     100,764     -     264,579     62,669  

Average price paid per share of common stock

$ 37.12   $ 32.87   $ -   $ 33.10   $ 34.90  
                               

ALLOWANCE FOR LOAN LOSSES

                             

Beginning balance

$ 20,630   $ 20,097   $ 21,088   $ 21,403   $ 13,152  

(Recovery of) Provision for loan losses

  (1,955 )   482     585     (2,825 )   8,916  

Charge-offs

  (76 )   (19 )   (331 )   (146 )   (1,006 )

Recoveries

  79     70     61     246     341  

Ending balance

$ 18,678   $ 20,630   $ 21,403   $ 18,678   $ 21,403  
                               

LOANS

                             

Construction and land development

$ 134,221   $ 120,193   $ 140,071   $ 134,221   $ 140,071  

Commercial real estate - owner occupied

  391,517     404,029     373,680     391,517     373,680  

Commercial real estate - non-owner occupied

  731,034     713,339     627,569     731,034     627,569  

Residential real estate

  289,757     280,351     269,137     289,757     269,137  

Home equity

  93,203     95,317     104,881     93,203     104,881  

Commercial and industrial

  299,773     320,278     491,256     299,773     491,256  

Consumer

  7,075     6,825     8,462     7,075     8,462  

Total

$ 1,946,580   $ 1,940,332   $ 2,015,056   $ 1,946,580   $ 2,015,056  
                               

NONPERFORMING ASSETS AT PERIOD-END

                             

Nonperforming loans:

                             

90 days past due and accruing

$ 216   $ -   $ 262   $ 216   $ 262  

Nonaccrual

  2,006     1,903     2,434     2,006     2,434  

Other real estate owned and repossessions

  143     213     958     143     958  

Nonperforming assets

$ 2,365   $ 2,116   $ 3,654   $ 2,365   $ 3,654  
                               

ASSET QUALITY RATIOS

                             

Allowance for loan losses to total loans

  0.96 %   1.06 %   1.06 %   0.96 %   1.06 %

Allowance for loan losses to nonperforming loans

  840.59     1,084.08     793.88     840.59     793.88  

Nonperforming assets to total assets

  0.07     0.06     0.12     0.07     0.12  

Nonperforming loans to total loans

  0.11     0.10     0.13     0.11     0.13  

Annualized net charge-offs (recoveries) to average loans

  (0.00 )   (0.01 )   0.05     (0.01 )   0.03  
                               
                               

OTHER DATA

                             

Fiduciary assets at period-end (c) (d)

$ 752,410   $ 697,528   $ 614,016   $ 752,410   $ 614,016  

Retail brokerage assets at period-end (c) (d)

$ 418,850   $ 406,408   $ 362,022   $ 418,850   $ 362,022  

Number full-time equivalent employees (e)

  346     345     342     346     342  

Number of full service offices

  26     26     26     26     26  

Number of loan production offices

  1     1     1     1     1  

Number of ATMs

  36     36     37     36     37  

 

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 December 31, 2021 and 2020

(Dollars in thousands)

 

                   

Interest

                 
   

Average Balance

   

Income/Expense (a)

   

Yield/Rate

 
   

2021

   

2020

   

2021

   

2020

   

2021

   

2020

 
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Loans:

                                               

Commercial

  $ 310,175     $ 507,750     $ 3,386     $ 5,354       4.33 %     4.19 %

Real estate

    1,634,660       1,556,192       18,244       17,206       4.46       4.42  

Consumer

    6,524       8,056       112       137       6.81       6.77  

Total loans (b)

    1,951,359       2,071,998       21,742       22,697       4.45       4.38  
                                                 

Securities:

                                               

U.S. Treasury

    116,629       14,126       242       4       0.83       0.11  

Federal agencies & GSEs

    93,042       76,606       265       276       1.14       1.44  

Mortgage-backed & CMOs

    355,492       206,817       1,117       916       1.26       1.77  

State and municipal

    63,148       53,257       314       304       1.99       2.28  

Other

    26,284       21,723       305       286       4.64       5.27  

Total securities

    654,595       372,529       2,243       1,786       1.37       1.92  
                                                 

Deposits in other banks

    548,776       309,928       223       84       0.16       0.11  
                                                 

Total interest-earning assets

    3,154,730       2,754,455       24,208       24,567       3.07       3.56  
                                                 

Non-earning assets

    202,493       217,050                                  
                                                 

Total assets

  $ 3,357,223     $ 2,971,505                                  
                                                 

Deposits:

                                               

Demand

  $ 505,528     $ 433,356       37       50       0.03       0.05  

Money market

    743,354       647,320       101       380       0.05       0.23  

Savings

    257,289       215,233       6       16       0.01       0.03  

Time

    362,524       405,486       511       1,375       0.56       1.35  

Total deposits

    1,868,695       1,701,395       655       1,821       0.14       0.43  
                                                 

Customer repurchase agreements

    39,645       40,819       3       22       0.03       0.21  

Long-term borrowings

    28,218       35,617       386       509       5.47       5.72  

Total interest-bearing liabilities

    1,936,558       1,777,831       1,044       2,352       0.21       0.53  
                                                 

Noninterest bearing demand deposits

    1,045,686       834,968                                  

Other liabilities

    22,584       23,035                                  

Shareholders' equity

    352,395       335,671                                  

Total liabilities and shareholders' equity

  $ 3,357,223     $ 2,971,505                                  
                                                 

Interest rate spread

                                    2.86 %     3.03 %

Net interest margin

                                    2.93 %     3.22 %
                                                 

Net interest income (taxable equivalent basis)

                    23,164       22,215                  

Less: Taxable equivalent adjustment (c)

                    60       69                  

Net interest income

                  $ 23,104     $ 22,146                  

 

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.

(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 December 31, 2021 and 2020

(Dollars in thousands)

 

                   

Interest

                 
   

Average Balance

   

Income/Expense (a)

   

Yield/Rate

 
   

2021

   

2020

   

2021

   

2020

   

2021

   

2020

 
    (Unaudited)     (Audited)     (Unaudited)     (Unaudited)     (Unaudited)     (Audited)  

Loans:

                                               

Commercial

  $ 372,538     $ 475,068     $ 18,819     $ 17,768       5.05 %     3.74 %

Real estate

    1,584,856       1,531,195       67,887       69,525       4.28       4.54  

Consumer

    6,984       8,998       475       588       6.80       6.53  

Total loans (b)

    1,964,378       2,015,261       87,181       87,881       4.44       4.36  
                                                 

Securities:

                                               

U.S. Treasury

    57,048       9,010       507       51       0.89       0.57  

Federal agencies & GSEs

    97,943       72,112       1,132       1,423       1.16       1.97  

Mortgage-backed & CMOs

    308,158       200,612       4,142       4,060       1.34       2.02  

State and municipal

    61,698       45,836       1,272       1,175       2.06       2.56  

Other

    24,707       20,382       1,205       1,098       4.88       5.39  

Total securities

    549,554       347,952       8,258       7,807       1.50       2.24  
                                                 

Deposits in other banks

    453,867       188,700       598       440       0.13       0.23  
                                                 

Total interest-earning assets

    2,967,799       2,551,913       96,037       96,128       3.24       3.77  
                                                 

Non-earning assets

    208,765       221,094                                  
                                                 

Total assets

  $ 3,176,564     $ 2,773,007                                  
                                                 

Deposits:

                                               

Demand

  $ 476,710     $ 386,790       152       344       0.03       0.09  

Money market

    710,948       574,510       758       2,634       0.11       0.46  

Savings

    243,123       198,313       26       117       0.01       0.06  

Time

    366,604       436,081       2,709       6,634       0.74       1.52  

Total deposits

    1,797,385       1,595,694       3,645       9,729       0.20       0.61  
                                                 

Customer repurchase agreements

    37,632       42,937       22       259       0.06       0.60  

Other short-term borrowings

    -       1       -       -       -       0.50  

Long-term borrowings

    31,878       35,586       1,738       2,032       5.45       5.71  

Total interest-bearing liabilities

    1,866,895       1,674,218       5,405       12,020       0.29       0.72  
                                                 

Noninterest bearing demand deposits

    939,186       746,659                                  

Other liabilities

    22,325       22,777                                  

Shareholders' equity

    348,158       329,353                                  

Total liabilities and shareholders' equity

  $ 3,176,564     $ 2,773,007                                  
                                                 

Interest rate spread

                                    2.95 %     3.05 %

Net interest margin

                                    3.05 %     3.30 %
                                                 

Net interest income (taxable equivalent basis)

                    90,632       84,108                  

Less: Taxable equivalent adjustment (c)

                    241       288                  

Net interest income

                  $ 90,391     $ 83,820                  

 

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.

(c) - A tax rate of 21% was used in adjusting interest on tax-exempt assets to a fully taxable equivalent basis.

 

 

 

American National Bankshares Inc.

Reconciliation of Non-GAAP Financial Measures

 

 

(Dollars in thousands, except per share data)

                         

At or for the Twelve Months

 
   

4th Qtr

   

3rd Qtr

   

4th Qtr

   

Ended December 31,

 
   

2021

   

2021

   

2020

   

2021

   

2020

 
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Audited)  

EFFICIENCY RATIO

                                       

Noninterest expense

  $ 15,463     $ 14,843     $ 14,659     $ 59,008     $ 54,565  

Add/subtract: gain/loss on sale of OREO

    -       -       (8 )     (111 )     4  

Subtract: core deposit intangible amortization

    (351 )     (361 )     (391 )     (1,464 )     (1,637 )
    $ 15,112     $ 14,482     $ 14,260     $ 57,433     $ 52,932  
                                         

Net interest income

  $ 23,104     $ 23,093     $ 22,146     $ 90,391     $ 83,820  

Tax equivalent adjustment

    60       59       69       241       288  

Noninterest income

    4,844       5,123       4,221       21,031       16,843  

Subtract: gain on securities

    (35 )     -       -       (35 )     (814 )

Add: loss on fixed assets

    297       107       13       885       110  
    $ 28,270     $ 28,382     $ 26,449     $ 112,513     $ 100,247  
                                         

Efficiency ratio

    53.46 %     51.03 %     53.92 %     51.05 %     52.80 %
                                         

TAX EQUIVALENT NET INTEREST INCOME

                                       

Non-GAAP measures:

                                       

Interest income - loans

  $ 21,742     $ 22,012     $ 22,697     $ 87,181     $ 87,881  

Interest income - investments and other

    2,466       2,327       1,870       8,856       8,247  

Interest expense - deposits

    (655 )     (781 )     (1,821 )     (3,645 )     (9,729 )

Interest expense - customer repurchase agreements

    (3 )     (3 )     (22 )     (22 )     (259 )

Interest expense - long-term borrowings

    (386 )     (400 )     (509 )     (1,738 )     (2,032 )

Total net interest income

  $ 23,164     $ 23,155     $ 22,215     $ 90,632     $ 84,108  

Less non-GAAP measures:

                                       

Tax benefit on nontaxable interest - loans

    (36 )     (38 )     (43 )     (141 )     (181 )

Tax benefit on nontaxable interest - securities

    (24 )     (24 )     (26 )     (100 )     (107 )

GAAP measures

  $ 23,104     $ 23,093     $ 22,146     $ 90,391     $ 83,820  
                                         

RETURN ON AVERAGE TANGIBLE EQUITY

                                       

Return on average equity (GAAP basis)

    12.82 %     11.58 %     10.48 %     12.50 %     9.12 %

Impact of excluding average goodwill and other intangibles

    4.81       4.43       4.42       4.84       4.07  

Return on average tangible equity (non-GAAP)

    17.63 %     16.01 %     14.90 %     17.34 %     13.19 %
                                         

TANGIBLE EQUITY TO TANGIBLE ASSETS

                                       

Equity to assets ratio (GAAP basis)

    10.64 %     10.65 %     11.08 %     10.64 %     11.08 %

Impact of excluding goodwill and other intangibles

    (2.47 )     (2.51 )     (2.74 )     (2.47 )     (2.74 )

Tangible equity to tangible assets ratio (non-GAAP)

    8.17 %     8.14 %     8.34 %     8.17 %     8.34 %
                                         

TANGIBLE BOOK VALUE

                                       

Book value per share (GAAP basis)

  $ 32.95     $ 32.51     $ 30.77     $ 32.95     $ 30.77  

Impact of excluding goodwill and other intangibles

    (8.33 )     (8.35 )     (8.30 )     (8.33 )     (8.30 )

Tangible book value per share (non-GAAP)

  $ 24.62     $ 24.16     $ 22.47     $ 24.62     $ 22.47  
                                         

ADJUSTED LOAN LOSS ALLOWANCE

                                       

Allowance for loan losses

  $ 18,678     $ 20,630     $ 21,403     $ 18,678     $ 21,403  

Credit discount on purchased loans

    4,474       5,258       7,255       4,474       7,255  

Adjusted loan loss allowance

  $ 23,152     $ 25,888     $ 28,658     $ 23,152     $ 28,658  
                                         

Total loans, net of deferred fees and costs

  $ 1,946,580     $ 1,940,332     $ 2,015,056     $ 1,946,580     $ 2,015,056  

Subtract: PPP loans, net

    (12,239 )     (37,199 )     (211,275 )     (12,239 )     (211,275 )

Total loans less PPP loans, net

  $ 1,934,341     $ 1,903,133     $ 1,803,781     $ 1,934,341     $ 1,803,781  
                                         

Adjusted loan loss allowance to total loans less PPP loans, net

    1.20 %     1.36 %     1.59 %     1.20 %     1.59 %
                                         

Allowance for loan losses to total loans less PPP loans, net

    0.97 %     1.08 %     1.19 %     0.97 %     1.19 %

 

 
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Document And Entity Information
Jan. 20, 2022
Document Information [Line Items]  
Entity, Registrant Name AMERICAN NATIONAL BANKSHARES INC.
Document, Type 8-K
Document, Period End Date Jan. 20, 2022
Entity, Incorporation, State or Country Code VA
Entity, File Number 0-12820
Entity, Tax Identification Number 54-1284688
Entity, Address, Address Line One 628 Main Street
Entity, Address, City or Town Danville
Entity, Address, State or Province VA
Entity, Address, Postal Zip Code 24541
City Area Code 434
Local Phone Number 792-5111
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol AMNB
Security Exchange Name NASDAQ
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0000741516
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