American National Bankshares Inc. Announces Record Earnings for First Quarter 2001

Apr 18, 2001, 01:00 ET from American National Bankshares Inc.

    DANVILLE, Va., April 18 /PRNewswire/ -- American National Bankshares Inc.
 (Nasdaq: AMNB) today reported record earnings for the first quarter of 2001.
 American National's net income for the quarter was $2.318 million, a gain of
 9.6% from the first quarter of 2000 of $2.115 million.
     Earnings per share rose to $0.38 in the quarter from $0.35 in the same
 quarter in 2000. Return on average assets (ROA) for the quarter was 1.70%, on
 an annualized basis, compared to 1.71% in the comparable period in 2000 and
 return on average equity (ROE) was 14.64%, annualized, compared to 14.77% in
 2000.
     "Continued strong deposit and loan growth, excellent credit quality,
 higher non-interest income and control of expenses have all contributed to the
 record earnings for the first quarter," said Charles H. Majors, President and
 Chief Executive Officer. Mr. Majors added, "In this period of a slowing
 economy and a challenging interest rate environment, we are pleased that,
 through relationship banking, we continue to maintain excellent returns for
 our shareholders."
     American National Bank and Trust Company, the corporation's banking
 subsidiary, operates offices in Danville, Chatham, Collinsville, Gretna,
 Martinsville and South Boston, Virginia and Yanceyville, North Carolina. In
 addition to the 13 offices, the bank also maintains 14 ATMs to serve its area
 and offers 24-hour telephone banking through "Access American." The bank has
 just begun offering Internet banking through "AmeriLink." Two bank
 subsidiaries, ANB Mortgage Corp. and ANB Investor Services, offer mortgage
 loans and brokerage services.
     The corporation's stock is traded on the NASDAQ National Market under the
 symbol "AMNB." Additional information about American National is available on
 its web site at http://www.amnb.com .
 
 
                            Consolidated Balance Sheets
                 American National Bankshares Inc. and Subsidiary
                                  (In thousands)
                                     Unaudited
 
                                                              March 31
     ASSETS                                          2001              2000
 
     Cash and due from banks                        $13,679           $14,267
     Interest-bearing deposits in other
      banks                                          16,243             1,806
 
     Investment securities:
        Securities available for sale               117,852           127,073
        Securities held to maturity                  41,289            44,035
           Total investment securities              159,141           171,108
 
     Loans, net of unearned income                  353,565           302,424
     Less allowance for loan losses                  (4,937)           (4,286)
           Net Loans                                348,628           298,138
 
     Bank premises and equipment                      7,933             7,846
     Accrued interest receivable and other
      assets                                         10,052            11,064
 
           Total assets                            $555,676          $504,229
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     LIABILITIES:
        Demand deposits--non-interest
         bearing                                    $53,108           $51,512
        Demand deposits--interest bearing            55,994            57,847
        Money market deposits                        40,152            22,310
        Savings deposits                             61,983            65,338
        Time deposits                               228,089           200,054
           Total deposits                           439,326           397,061
 
        Repurchase agreements                        30,184            24,529
        FHLB borrowings                              16,000            21,090
        Accrued interest payable and other
         liabilities                                  5,273             3,934
           Total liabilities                        490,783           446,614
 
     SHAREHOLDERS' EQUITY:
        Common stock, $1 par, 10,000,000
         shares authorized,
            6,021,772 shares outstanding
             at March 31, 2001 and
            6,103,772 shares outstanding
             at March 31, 2000                        6,022             6,104
        Capital in excess of par value                9,763             9,896
        Retained earnings                            47,954            43,758
        Net unrealized gains (losses) on
         securites available for sale                 1,154            (2,143)
           Total shareholders' equity                64,893            57,615
 
           Total liabilities and
            shareholders' equity                   $555,676          $504,229
 
 
                         Consolidated Statements of Income
                 American National Bankshares Inc. and Subsidiary
                                  (In thousands)
                                     Unaudited
                                                        Three Months Ended
                                                             March 31
                                                       2001              2000
     INTEREST INCOME:
        Interest and fees on loans                   $7,710            $6,436
        Interest on deposits in other
         banks                                          121                52
        Income on investment securities:
          U S Government                                  -               109
          Federal agencies                            1,565             1,649
          State and municipal                           480               488
          Other investments                             427               333
               Total interest income                 10,303             9,067
     INTEREST EXPENSE:
        Interest on deposits:
          Demand                                        165               264
          Money market                                  391               189
          Savings                                       326               427
          Time                                        3,293             2,519
        Interest on repurchase agreements               328               274
        Interest on other borrowings                    212               277
               Total interest expense                 4,715             3,950
     NET INTEREST INCOME                              5,588             5,117
     PROVISION FOR LOAN LOSSES                          262               215
 
     NET INTEREST INCOME AFTER PROVISION
        FOR LOAN LOSSES                               5,326             4,902
 
     NON-INTEREST INCOME:
        Trust and investment services                   660               692
        Service charges on deposit
         accounts                                       296               250
        Other fees and commissions                      187               128
        Mortgage banking income                          83                62
        Gains on securities called                      170                 -
        Other income                                     51                43
               Total non-interest income              1,447             1,175
     NON-INTEREST EXPENSE:
        Salaries                                      1,630             1,462
        Pension and other employee
         benefits                                       355               281
        Occupancy and equipment                         579               507
        Postage and printing                            135               123
        Core deposit intangible
         amortization                                   112               112
        Other expenses                                  651               638
               Total non-interest expense             3,462             3,123
     INCOME BEFORE TAXES                              3,311             2,954
     Income Tax Provision                               993               839
     NET INCOME                                      $2,318            $2,115
 
     NET INCOME PER COMMON SHARE:
       Basic                                          $0.38             $0.35
       Diluted                                        $0.38             $0.35
 
 
     Financial Highlights
     American National Bankshares Inc. and Subsidiary
 
         (Dollars in thousands,
          except per share data)                Three Months Ended March 31
                                                2001         2000    Change
     EARNINGS
         Interest income                     $10,303       $9,067      13.6 %
         Interest expense                      4,715        3,950      19.4
         Net interest income                   5,588        5,117       9.2
         Provision for loan losses               262          215      21.9
         Noninterest income                    1,447        1,175      23.1
         Noninterest expense                   3,462        3,123      10.9
         Income taxes                            993          839      18.4
         Net income                            2,318        2,115       9.6
 
     PER COMMON SHARE
         Earnings per share -- basic           $0.38        $0.35       8.6 %
         Earnings per share -- diluted          0.38         0.35       8.6
         Cash dividends paid                   0.150        0.135      11.1
         Book value                            10.78         9.44      14.2
         Closing market price                  20.00        14.25      40.4
 
     FINANCIAL RATIOS
         Return on average assets               1.70 %       1.71 %      (1)bp
         Return on average shareholders'
          equity                               14.64        14.77       (13)
         Average equity to average assets      11.61        11.56         5
 
     PERIOD END BALANCES
         Assets                             $555,676     $504,229      10.2 %
         Investment securities               159,141      171,108      (7.0)
         Loans -- net of unearned income     353,565      302,424      16.9
         Total deposits                      439,326      397,061      10.6
         Repurchase agreement funding         30,184       24,529      23.1
         FHLB borrowings                      16,000       21,090     (24.1)
         Shareholders' equity                 64,893       57,615      12.6
 
     ALLOWANCE FOR LOAN LOSSES
         Beginning balance                    $4,746       $4,135      14.8 %
         Provision for loan losses               262          215      21.9
         Charge-offs                            (111)         (91)     22.0
         Recoveries                               40           27      48.1
         Ending balance                        4,937        4,286      15.2
 
     COMPOSITION OF RISK ASSETS
         Nonperforming loans:
             90 days past due                    164          147      11.6 %
             non-accrual                         276          242      14.0
         OREO                                    245           30     716.7
         Nonperforming assets                    685          419      63.5
 
     ASSET QUALITY RATIOS **
         Nonperforming loans to total
          loans                                 0.12 %       0.13 %      (1)bp
         Allowance for loan losses to
          total loans                           1.40         1.42        (2)
         Allowance for loan losses
            to nonperforming loans             11.22 X      11.02 X      20
 
     Notes:
 
         bp -- Change is measured as difference in basis points.
         ** -- Balance sheet amounts used in calculations are based on period
                end balances.
 
 

SOURCE American National Bankshares Inc.
    DANVILLE, Va., April 18 /PRNewswire/ -- American National Bankshares Inc.
 (Nasdaq: AMNB) today reported record earnings for the first quarter of 2001.
 American National's net income for the quarter was $2.318 million, a gain of
 9.6% from the first quarter of 2000 of $2.115 million.
     Earnings per share rose to $0.38 in the quarter from $0.35 in the same
 quarter in 2000. Return on average assets (ROA) for the quarter was 1.70%, on
 an annualized basis, compared to 1.71% in the comparable period in 2000 and
 return on average equity (ROE) was 14.64%, annualized, compared to 14.77% in
 2000.
     "Continued strong deposit and loan growth, excellent credit quality,
 higher non-interest income and control of expenses have all contributed to the
 record earnings for the first quarter," said Charles H. Majors, President and
 Chief Executive Officer. Mr. Majors added, "In this period of a slowing
 economy and a challenging interest rate environment, we are pleased that,
 through relationship banking, we continue to maintain excellent returns for
 our shareholders."
     American National Bank and Trust Company, the corporation's banking
 subsidiary, operates offices in Danville, Chatham, Collinsville, Gretna,
 Martinsville and South Boston, Virginia and Yanceyville, North Carolina. In
 addition to the 13 offices, the bank also maintains 14 ATMs to serve its area
 and offers 24-hour telephone banking through "Access American." The bank has
 just begun offering Internet banking through "AmeriLink." Two bank
 subsidiaries, ANB Mortgage Corp. and ANB Investor Services, offer mortgage
 loans and brokerage services.
     The corporation's stock is traded on the NASDAQ National Market under the
 symbol "AMNB." Additional information about American National is available on
 its web site at http://www.amnb.com .
 
 
                            Consolidated Balance Sheets
                 American National Bankshares Inc. and Subsidiary
                                  (In thousands)
                                     Unaudited
 
                                                              March 31
     ASSETS                                          2001              2000
 
     Cash and due from banks                        $13,679           $14,267
     Interest-bearing deposits in other
      banks                                          16,243             1,806
 
     Investment securities:
        Securities available for sale               117,852           127,073
        Securities held to maturity                  41,289            44,035
           Total investment securities              159,141           171,108
 
     Loans, net of unearned income                  353,565           302,424
     Less allowance for loan losses                  (4,937)           (4,286)
           Net Loans                                348,628           298,138
 
     Bank premises and equipment                      7,933             7,846
     Accrued interest receivable and other
      assets                                         10,052            11,064
 
           Total assets                            $555,676          $504,229
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     LIABILITIES:
        Demand deposits--non-interest
         bearing                                    $53,108           $51,512
        Demand deposits--interest bearing            55,994            57,847
        Money market deposits                        40,152            22,310
        Savings deposits                             61,983            65,338
        Time deposits                               228,089           200,054
           Total deposits                           439,326           397,061
 
        Repurchase agreements                        30,184            24,529
        FHLB borrowings                              16,000            21,090
        Accrued interest payable and other
         liabilities                                  5,273             3,934
           Total liabilities                        490,783           446,614
 
     SHAREHOLDERS' EQUITY:
        Common stock, $1 par, 10,000,000
         shares authorized,
            6,021,772 shares outstanding
             at March 31, 2001 and
            6,103,772 shares outstanding
             at March 31, 2000                        6,022             6,104
        Capital in excess of par value                9,763             9,896
        Retained earnings                            47,954            43,758
        Net unrealized gains (losses) on
         securites available for sale                 1,154            (2,143)
           Total shareholders' equity                64,893            57,615
 
           Total liabilities and
            shareholders' equity                   $555,676          $504,229
 
 
                         Consolidated Statements of Income
                 American National Bankshares Inc. and Subsidiary
                                  (In thousands)
                                     Unaudited
                                                        Three Months Ended
                                                             March 31
                                                       2001              2000
     INTEREST INCOME:
        Interest and fees on loans                   $7,710            $6,436
        Interest on deposits in other
         banks                                          121                52
        Income on investment securities:
          U S Government                                  -               109
          Federal agencies                            1,565             1,649
          State and municipal                           480               488
          Other investments                             427               333
               Total interest income                 10,303             9,067
     INTEREST EXPENSE:
        Interest on deposits:
          Demand                                        165               264
          Money market                                  391               189
          Savings                                       326               427
          Time                                        3,293             2,519
        Interest on repurchase agreements               328               274
        Interest on other borrowings                    212               277
               Total interest expense                 4,715             3,950
     NET INTEREST INCOME                              5,588             5,117
     PROVISION FOR LOAN LOSSES                          262               215
 
     NET INTEREST INCOME AFTER PROVISION
        FOR LOAN LOSSES                               5,326             4,902
 
     NON-INTEREST INCOME:
        Trust and investment services                   660               692
        Service charges on deposit
         accounts                                       296               250
        Other fees and commissions                      187               128
        Mortgage banking income                          83                62
        Gains on securities called                      170                 -
        Other income                                     51                43
               Total non-interest income              1,447             1,175
     NON-INTEREST EXPENSE:
        Salaries                                      1,630             1,462
        Pension and other employee
         benefits                                       355               281
        Occupancy and equipment                         579               507
        Postage and printing                            135               123
        Core deposit intangible
         amortization                                   112               112
        Other expenses                                  651               638
               Total non-interest expense             3,462             3,123
     INCOME BEFORE TAXES                              3,311             2,954
     Income Tax Provision                               993               839
     NET INCOME                                      $2,318            $2,115
 
     NET INCOME PER COMMON SHARE:
       Basic                                          $0.38             $0.35
       Diluted                                        $0.38             $0.35
 
 
     Financial Highlights
     American National Bankshares Inc. and Subsidiary
 
         (Dollars in thousands,
          except per share data)                Three Months Ended March 31
                                                2001         2000    Change
     EARNINGS
         Interest income                     $10,303       $9,067      13.6 %
         Interest expense                      4,715        3,950      19.4
         Net interest income                   5,588        5,117       9.2
         Provision for loan losses               262          215      21.9
         Noninterest income                    1,447        1,175      23.1
         Noninterest expense                   3,462        3,123      10.9
         Income taxes                            993          839      18.4
         Net income                            2,318        2,115       9.6
 
     PER COMMON SHARE
         Earnings per share -- basic           $0.38        $0.35       8.6 %
         Earnings per share -- diluted          0.38         0.35       8.6
         Cash dividends paid                   0.150        0.135      11.1
         Book value                            10.78         9.44      14.2
         Closing market price                  20.00        14.25      40.4
 
     FINANCIAL RATIOS
         Return on average assets               1.70 %       1.71 %      (1)bp
         Return on average shareholders'
          equity                               14.64        14.77       (13)
         Average equity to average assets      11.61        11.56         5
 
     PERIOD END BALANCES
         Assets                             $555,676     $504,229      10.2 %
         Investment securities               159,141      171,108      (7.0)
         Loans -- net of unearned income     353,565      302,424      16.9
         Total deposits                      439,326      397,061      10.6
         Repurchase agreement funding         30,184       24,529      23.1
         FHLB borrowings                      16,000       21,090     (24.1)
         Shareholders' equity                 64,893       57,615      12.6
 
     ALLOWANCE FOR LOAN LOSSES
         Beginning balance                    $4,746       $4,135      14.8 %
         Provision for loan losses               262          215      21.9
         Charge-offs                            (111)         (91)     22.0
         Recoveries                               40           27      48.1
         Ending balance                        4,937        4,286      15.2
 
     COMPOSITION OF RISK ASSETS
         Nonperforming loans:
             90 days past due                    164          147      11.6 %
             non-accrual                         276          242      14.0
         OREO                                    245           30     716.7
         Nonperforming assets                    685          419      63.5
 
     ASSET QUALITY RATIOS **
         Nonperforming loans to total
          loans                                 0.12 %       0.13 %      (1)bp
         Allowance for loan losses to
          total loans                           1.40         1.42        (2)
         Allowance for loan losses
            to nonperforming loans             11.22 X      11.02 X      20
 
     Notes:
 
         bp -- Change is measured as difference in basis points.
         ** -- Balance sheet amounts used in calculations are based on period
                end balances.
 
 SOURCE  American National Bankshares Inc.