American National Bankshares Inc.
Annual Report 2013

Plain-text annual report

solutions yesterday experience technology e n g a m g n i k creativity n a service b innovation i i 2 0 1 3 S U M M A R Y A N N U A L R E P O R T deposits relationship GENERAL CORPORATE INFORMATION Annual Meeting The 2014 Annual Meeting of Shareholders of American National Bankshares Inc. will be held on Tuesday, May 20, 2014, at 9 a.m. (EDT) at The Wednesday Club, 1002 Main St., Danville, Va. Stock Listing The common stock of American National Bankshares Inc. (the “Company”) is traded on the NASDAQ Global Select Market under the symbol “AMNB.” American National Bankshares Inc. Stock Price and Dividends The following represent the intra-day high and low sales prices of the Company’s common stock as traded on the NASDAQ Global Select Market, as well as the quarterly cash dividends declared by the Company’s Board of Directors each quarter for the years 2013 and 2012. High Low Dividend Per Share This Report The American National Bankshares Inc. 2013 Summary Annual Report is presented in a summary format to provide information regarding the performance of the Company in a manner that is meaningful and useful to the widest range of readers. The audited consolidated financial statements of the Company and other more detailed analytical information regarding the Company are contained in the 2013 Annual Report on Form 10-K filed with the Securities and Exchange Commission. Investor Relations & Financial Statements A copy of the Company’s annual reports on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission, are available without charge to shareholders upon written request and are also available on our website, amnb.com. Those with requests for this or other financial information about American National Bankshares Inc. should contact: 2013 2012 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $22.00 23.46 25.90 27.74 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $22.19 24.00 23.99 22.81 $19.57 19.60 20.77 21.16 $18.54 20.91 21.60 18.50 $0.23 0.23 0.23 0.23 $0.92 $0.23 0.23 0.23 0.23 $0.92 American National Bankshares Inc. Investor Relations PO Box 191 Danville, VA 24543 800.240.8190 Equal Opportunity Employer American National Bankshares Inc. is an equal opportunity employer. All matters regarding recruiting, hiring, training, compensation, benefits, promotions, transfers and all other personnel policies will remain free from discriminatory practices. Shareholder Information Shareholders needing information on stock transfer requirements, lost certificates, dividends, the dividend reinvestment plan and other shareholder matters may contact: Corporate Headquarters American National Bankshares Inc. 628 Main Street Danville, VA 24541 434.792.5111 Registrar and Transfer Company 10 Commerce Drive Cranford, NJ 07016 800.368.5948 Independent Auditors Yount, Hyde & Barbour P.C. 50 South Cameron Street Winchester, VA 22601 Regulatory and Securities Counsel LeClairRyan 951 East Byrd Street Eighth Floor Richmond, VA 23219 North Carolina Burlington (4) Graham Greensboro (2) Mebane Yanceyville Banking Offices Virginia Bedford Chatham Collinsville Danville (5) Gretna Lovingston Lynchburg (3) Martinsville Ridgeway South Boston Forward-Looking Statements This Summary Annual Report may contain “forward-looking statements” within the meaning of federal securities laws that involve significant risks and uncertainties. Statements herein are based on certain assumptions and analyses by the Company and are factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies or guidelines; changes in the economic scenario; changes in regulatory requirements; and changes in securities markets. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Company’s most recent Form 10-K report and other documents filed with the Securities and Exchange Commission. American National Bankshares Inc. does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made. TABLE OF CONTENTS General Corporate Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Letter from the Executive Chairman . . . . . . . . . . . . . . . . . . . . . . . . . .4 Letter from the President & Chief Executive Officer . . . . . . . . . . . . . .5 American National . . . Pass It On . . . . . . . . . . . . . . . . . . . . . . . . . . . .6 Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10 Performance Graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Consolidated Statements of Income . . . . . . . . . . . . . . . . . . . . . . . . . .13 Management/Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Advisory Boards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 About American National American National Bankshares Inc. is a bank holding company with assets of $1.3 billion. Headquartered in Danville, Va., it is the holding company of American National Bank and Trust Company (the “Bank”), a community bank serving Central and Southside Virginia and the Piedmont of North Carolina through 25 banking offices. In addition, the Bank manages $628 million through its Trust & Investment Services division. The Bank provides a full array of financial products and services, including personal and business banking, trust and investment services and mortgage and insurance services. Electronic banking solutions range from a convenient Automated Teller Machine (ATM) network and check cards to real-time Online Banking, Online Bill Pay, Mobile Banking, Mobile Deposit and Telephone Banking. Chartered in 1909, the Bank is entering its 106th year of operation. It has grown from a single office on Main Street in Danville to a progressive multi-state, regional financial institution. The focus on building relationships through quality financial services with exceptional customer service has remained constant. The Bank operates under a strong community bank philosophy as a leader in charitable and civic support. Many Bank employees serve on the boards of civic organizations throughout the Bank’s market area. American National operates under a strong community bank philosophy as a leader in charitable and civic support. y t i v i t a e r c community s n a o l deposits g n i k n a trust b 3 LETTER FROM THE EXECUTIVE CHAIRMAN April 2, 2014 To Our Shareholders: By standard banking measurements, American National continued to be a high-performing banking company in 2013. As we all continued to emerge slowly from the “great recession,” our earnings per share were $2.00 for 2013, only slightly less than the $2.04 we reported for 2012. Net income available to common shareholders for 2013 was $15.7 million compared to $16 million for 2012. This net income produced for 2013 a return on average assets of 1.20 percent, a return on average equity of 9.52 percent and a return on average tangible assets of 13.75 percent. Last year I reminded you that a significant portion of our earnings was driven by merger-related fair value accounting, primarily from the loan portfolio purchase discount. While we continued to benefit from this “accretion income,” it was less in 2013 than the prior year. The good news is that this means our core earnings (without the fair value accretion income) were stronger this year. The favorable earnings impact of the merger and the related fair value accounting continues to decrease rapidly quarter to quarter, which is normal in the context of current rules for merger accounting. Our capital ratios remain strong and continue to exceed all regulatory minimums for “well capitalized” banking organizations. At December 31, 2013, average shareholders’ equity for the year was 12.65 percent of average assets, up from 12.19 percent at December 31, 2012. Our book value per common share was $21.23 at year end, compared to $20.80 at the end of 2012. We have continued successfully our CEO transition plan. During 2012, Jeff Haley served as President of the Company as well as President and Chief Executive Officer of the Bank. On January 1, 2013, he became Chief Executive Officer of the Company. I believe the transition has been seamless and successful. Jeff has done and will continue to do a great job. I am proud to have him succeed me and to lead the Company in the future. Your Board also does a great job of representing the shareholders by providing strategic policy leadership and management oversight. You should be proud of them. I know I am. We have two directors who are retiring at the annual meeting of shareholders in May. Les Hudson has been a director since 1984 and will be retiring pursuant to our directors’ retirement policy. While we will miss his long and valuable service as a director, he will continue as a Director Emeritus during the next year. Martha Medley, who has been a director since 2008, has chosen not to seek re-election at the annual meeting. We appreciate Martha’s contributions to the board and we are pleased that she will continue to advise us as a member of the Bank’s Virginia State Advisory Board. We know the importance of your investment in our Company. We appreciate your support and your patronage. Your continued willingness to invest in American National is critical to our ongoing success. We work hard to manage it prudently and appropriately. We will continue to do so. Very truly yours, Charles H. Majors Executive Chairman American National Bankshares Inc. American National Bank and Trust Company 4 LETTER FROM THE PRESIDENT & CEO April 2, 2014 To Our Shareholders: The year 2013 was an exciting and productive one for American National, as Charley Majors outlined in his message. The Company enjoyed another strong year, and it was my pleasure to serve as the Company’s new Chief Executive Officer. I am happy to continue in this role alongside Charley, our Board of Directors, our management group and all of our employees— who altogether do an outstanding job leading American National. Last year, we began to talk about American National in a new way, as “. . . just the bank you would imagine.” We introduced this message in our 2012 Summary Annual Report; the Bank also launched a comprehensive branding campaign that included TV and radio. We even developed a new video titled “Pass it On” (amnb.com/investors-pass-it-on). All in all, we are proud of the following strides we have made toward fulfilling this new brand promise. We Imagine Solutions To enhance the customer experience, we launched several new 21st century services: Mobile Deposit for smartphone users wanting a deposit option while on the go; Rapid Deposit Automated Teller Machines (ATMs) at select locations for deposit-taking capabilities; and Instant Issue Debit Cards, available at most all of our banking offices. In addition, American National improved internal processes to benefit our employees. We deployed a centralized electronic documentation library for our policies and procedures. We equipped banking offices with iPads to foster Online Banking enrollment. We also launched our new customer relationship management platform so that employees could more effectively see and communicate about the customer’s entire relationship. We Imagine Growth One of our 2013 strategic priorities was to focus on organic growth. To that end, we reorganized, naming a chief banking officer and five market presidents, responsible for the leadership and growth of our six regions. We also hired a senior vice president to begin development of a new retail banking strategy that deals with the emerging retail needs of our consumers in today’s technologically savvy world. We Imagine Excellence American National was fortunate to receive the following honors in 2013: • Nifty 50 (Bank Director magazine) • Top 10—2013 Performance Scorecard (Bank Director magazine) • Raymond James Community Bankers Cup Each of these awards recognizes American National as a high-performing community bank when compared to others around the nation. As we continue to evolve into “. . . just the bank you would imagine,” I want to thank our employees who work tirelessly to serve our customers while maintaining our community banking traditions developed over the past 105 years. Thanks also to our loyal and valued customers and to our shareholders who continue their support. It is critical to our ongoing success. Sincerely, Jeffrey V. Haley President & Chief Executive Officer American National Bankshares Inc. American National Bank and Trust Company 5 Why choose to do business with American National? To open a first checking account? To get a mortgage for a first home? To obtain a loan in order to grow a business? To maintain a trust relationship? We believe our commitment to grow as “. . . just the bank you would imagine” is the answer. We’ve offered banking services to individuals and businesses for more than a century, working with customers just like you. Every customer relationship we have and each decision we make is backed by the collective experience of everyone who has ever worked here and the wisdom gained through every customer relationship we’ve ever had. trust relationship 6 e g a g t r o m We don’t rest on experience alone, though. Instead, we combine our experience with the technology necessary for doing business in the 21st century, offering banking solutions that work for people today. Summed up, “We have more than a century of experience and offer 21st century banking solutions.” Everyone is invited to find out what a difference that can make . . . community century i g n k n a b We’ve offered banking services to individuals and businesses for more than a century. 7 Experience. Why is it important for customers—both individuals and businesses—to consider the longevity of their bank? If good times are all they ever experience, then maybe it doesn’t matter as much how long their bank has been around. Experience tells us that times won’t always be good. That’s when people want a bank that takes a long view, one that has weathered a few storms. American National has stood right by our customers and we have stood the test of time. 21st century banking solutions. How do we provide the banking services people need today? By listening and responding. By learning more about how our customers want to interact with us and how they want to bank. By keeping pace with technology. g n i k n a b service experience technology 8 solutions e n i g a m i Last year, we introduced Rapid Deposit ATMs at select locations, allowing customers to make deposits with no deposit slip or envelope and have the balance totaled for them. Fast. We began offering Instant Issue Debit Cards, which means customers can open a new account at most of our offices and walk out with a debit card in hand that day. Convenient. After introducing Mobile Banking in 2012, we added Mobile Deposit in 2013 for smartphone users to enjoy another level of convenience. Easy. While we will always be focused on relationships, our goal is to continue to grow as “. . . just the bank you would imagine.” That’s what we believe the people who have worked here over the years would want us to be. It’s the legacy they passed on to us. We’ve got a great story to tell . . . a long history and a bright future. Join us as we continue to pass it on. Click here to see what it means at American National to “pass it on!” deposits creativity s n a o l trust innovation i e n g a m i Our goal is to continue to grow as “. . . just the bank you would imagine.” Scan this QR code to watch our “Pass it On” video on YouTube. Or, visit amnb.com/investors-pass-it-on to view it on our website. 9 FINANCIAL HIGHLIGHTS (Amounts in thousands, except per share information and ratios) Results of Operations: Interest income Interest expense Net interest income Provision for loan losses Noninterest income Noninterest expense Income before income tax provision Income tax provision Net income Financial Condition: Assets Loans, net of unearned income Securities Deposits Shareholders' equity Shareholders' equity, tangible Per Share Information: Earnings per share, basic Earnings per share, diluted Cash dividends paid Book value Book value, tangible 2013 2012 December 31, 2011 2010 2009 $ $ 52,956 6,583 46,373 294 10,827 35,105 21,801 6,054 15,747 $ 1,307,512 794,671 351,013 1,057,675 167,551 125,349 $ 2.00 2.00 0.92 21.23 15.89 $ $ 57,806 8,141 49,665 2,133 11,410 36,643 22,299 6,293 16,006 $ 1,283,687 788,705 340,533 1,027,667 163,246 119,543 $ 2.04 2.04 0.92 20.80 15.23 $ $ 49,187 8,780 40,407 3,170 9,244 30,000 16,481 4,910 11,571 $ 1,304,706 824,758 339,385 1,058,754 152,829 107,335 $ 1.64 1.64 0.92 19.58 13.75 $ $ $ $ 35,933 8,719 27,214 1,490 9,114 23,379 11,459 3,181 8,278 833,664 520,781 235,691 640,098 108,087 84,299 1.35 1.35 0.92 17.64 13.76 $ $ $ $ 38,061 10,789 27,272 1,662 8,518 24,793 9,335 2,525 6,810 808,973 527,991 199,686 604,273 106,389 82,223 1.12 1.12 0.92 17.41 13.46 Weighted average shares outstanding, basic Weighted average shares outstanding, diluted 7,872,870 7,884,561 7,834,351 7,845,652 6,982,524 6,989,877 6,123,870 6,131,650 6,097,810 6,102,895 Selected Ratios: Return on average assets Return on average equity1 Return on average tangible equity2 Dividend payout ratio Efficiency ratio3 Net interest margin Asset Quality Ratios: Allowance for loan losses to period-end loans Allowance for loan losses to period-end non-performing loans Non-performing assets to total assets Net charge-offs to average loans Capital Ratios: Total risk-based capital ratio Tier 1 risk-based capital ratio Tier 1 leverage ratio Tangible equity to tangible assets ratio4 1.20% 9.52% 13.75% 46.03% 57.57% 4.10% 1.23% 10.08% 15.25% 45.06% 58.23% 4.44% 1.59% 1.54% 248.47% 0.65% (0.02)% 18.14% 16.88% 11.81% 9.91% 227.95% 0.90% 0.07% 17.00% 15.75% 11.27% 9.64% 1.07% 8.88% 12.97% 55.50% 58.48% 4.35% 1.28% 76.76% 1.46% 0.16% 15.55% 14.36% 10.32% 8.52% 1.00% 7.59% 10.05% 68.08% 61.53% 3.78% 0.84% 6.57% 8.94% 82.40% 63.46% 3.81% 1.62% 1.55% 324.22% 0.76% 0.24% 19.64% 18.38% 12.74% 10.41% 224.22% 0.87% 0.24% 18.82% 17.56% 12.81% 10.48% 1 Return on average common equity is calculated by dividing net income available to common shareholders by average common equity. 2 Return on average tangible common equity is calculated by dividing net income available to common shareholders plus amortization of intangibles tax effected by average common equity less average intangibles. 3 The efficiency ratio is calculated by dividing noninterest expense excluding gains or losses on the sale of other real estate owned by net interest income including tax equivalent income on nontaxable loans and securities and excluding (a) gains or losses on securities and (b) gains or losses on sale of premises and equipment. 4 Tangible equity to tangible assets ratio is calculated by dividing period-end common equity less period-end intangibles by period-end assets less period-end intangibles. 10 PERFORMANCE GRAPHS 11 CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) ASSETS Cash and due from banks Interest-bearing deposits in other banks Securities available for sale, at fair value Restricted stock, at cost Loans held for sale Loans, net of unearned income Less allowance for loan losses Net loans Premises and equipment, net Other real estate owned, net of valuation allowance of $3,340 in 2013 and $2,367 in 2012 Goodwill Core deposit intangibles, net Bank owned life insurance Accrued interest receivable and other assets Total assets LIABILITIES and SHAREHOLDERS’ EQUITY Liabilities: Demand deposits—noninterest bearing Demand deposits—interest bearing Money market deposits Savings deposits Time deposits Total deposits Customer repurchase agreements Long-term borrowings Trust preferred capital notes Accrued interest payable and other liabilities Total liabilities Shareholders’ equity: Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding Common stock, $1 par, 20,000,000 shares authorized, 7,890,697 shares outstanding at December 31, 2013, and 7,846,912 shares outstanding at December 31, 2012 Capital in excess of par value Retained earnings Accumulated other comprehensive income, net Total shareholders’ equity Total liabilities and shareholders’ equity December 31, 2013 2012 $ 19,808 47,873 $ 20,435 27,007 346,124 4,889 2,760 794,671 (12,600) 782,071 335,246 5,287 13,852 788,705 (12,118) 776,587 23,674 24,543 3,422 39,043 3,159 14,746 19,943 $ 1,307,512 $ 229,347 167,736 185,270 85,724 389,598 1,057,675 39,478 9,951 27,419 5,438 1,139,961 6,193 39,043 4,660 14,289 16,545 $ 1,283,687 $ 217,275 153,578 166,111 81,135 409,568 1,027,667 49,942 10,079 27,317 5,436 1,120,441 – – 7,891 58,050 99,090 2,520 167,551 $ 1,307,512 7,847 57,211 90,591 7,597 163,246 $ 1,283,687 12 CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) Interest and Dividend Income: Interest and fees on loans Interest and dividends on securities: Taxable Tax-exempt Dividends Other interest income Total interest and dividend income Interest Expense: Interest on deposits Interest on short-term borrowings Interest on long-term borrowings Interest on trust preferred capital notes Total interest expense Net Interest Income Provision for Loan Losses Net Interest Income after Provision for Loan Losses Noninterest Income: Trust fees Service charges on deposit accounts Other fees and commissions Mortgage banking income Securities gains (losses), net Other Total noninterest income Noninterest Expense: Salaries Employee benefits Occupancy and equipment FDIC assessment Bank franchise tax Core deposit intangible amortization Data processing Software Foreclosed real estate, net Merger-related expenses Other Total noninterest expense Income before income taxes Income taxes Net Income: Dividends on preferred stock Net Income Available to Common Shareholders Net Income Per Common Share: Basic Diluted Average Common Shares Outstanding: Basic Diluted $ $ $ For the Years Ended December 31, 2012 2013 2011 $ 44,817 $ 49,189 $ 40,688 3,530 4,213 245 151 52,956 5,460 40 329 754 6,583 46,373 294 46,079 3,689 1,750 1,864 2,008 192 1,324 10,827 14,059 3,848 3,614 647 745 1,501 1,248 923 1,523 – 6,997 35,105 21,801 6,054 15,747 – 15,747 2.00 2.00 4,044 4,280 213 80 57,806 6,843 150 335 813 8,141 49,665 2,133 47,532 3,703 1,757 1,768 2,234 158 1,790 11,410 15,785 3,604 3,951 692 690 1,935 512 1,028 528 19 7,899 36,643 22,299 6,293 16,006 – 16,006 2.04 2.04 $ $ $ 4,595 3,646 131 127 49,187 7,203 325 229 1,023 8,780 40,407 3,170 37,237 3,561 1,963 1,510 1,262 (1) 949 9,244 12,409 2,681 3,199 651 763 1,282 – 855 296 1,607 6,257 30,000 16,481 4,910 11,571 103 11,468 1.64 1.64 $ $ $ 7,872,870 7,884,561 7,834,351 7,845,652 6,982,524 6,989,877 13 MANAGEMENT AND BOARD OF DIRECTORS MANAGEMENT American National Bankshares Inc. BOARD OF DIRECTORS American National Bankshares Inc. and American National Bank and Trust Company Board of Directors Fred A. Blair President Blair Construction Inc. Gretna, VA Director since 1992 Committees 1, 5, 6 Frank C. Crist Jr., D.D.S. President Brady & Crist Dentists Inc. Lynchburg, VA Director since 2006 Committees 3, 6 Ben J. Davenport Jr. Chairman First Piedmont Corporation Chatham, VA Chairman Davenport Energy Inc. Chatham, VA Director since 1992 Committees 2, 4, 6 Jeffrey V. Haley President & Chief Executive Officer American National Bankshares Inc. American National Bank and Trust Company Danville, VA Director since 2010 Committee 7 Executive Officers Charles H. Majors Executive Chairman Jeffrey V. Haley President Chief Executive Officer William W. Traynham Senior Vice President Chief Financial Officer American National Bank and Trust Company Executive Group (as of Jan. 1, 2014) Charles H. Majors Executive Chairman Jeffrey V. Haley President Chief Executive Officer William W. Traynham Executive Vice President Chief Financial Officer H. Gregg Strader Executive Vice President Chief Banking Officer Charles T. Canaday Jr. Executive Vice President President—North Carolina Banking R. Helm Dobbins Executive Vice President Chief Credit Officer S. Cabell Dudley Jr. Executive Vice President Ma rket President—Central & Danville Regions Dabney T.P. Gilliam Jr. Executive Vice President Chief Administrative Officer Michael P. Haley Advisor Fenway Partners New York, NY Director since 2002 Committees 1, 4, 6, 8 Charles S. Harris Executive Vice President Averett University Danville, VA Director since 2008 Committees 5, 6 F. D. Hornaday III President & Chief Executive Officer Knit Wear Fabrics Inc. Burlington, NC Director since 2011 Committees 3, 6, 7 Lester A. Hudson Jr., Ph.D. Professor & Wayland H. Cato Chair of Leadership McColl School of Business Queens University Charlotte, NC Director since 1984 Committees 2, 4, 6 John H. Love President & Chief Executive Officer W. E. Love & Associates Inc. Burlington, NC Director since 2011 Committees 5, 6 Franklin W. Maddux, M.D. Chief Medical Officer Executive Vice President for Clinical & Scientific Affairs Fresenius Medical Care North America Waltham, MA Director since 2002 Committees 1, 3, 6 Charles H. Majors Executive Chairman American National Bankshares Inc. American National Bank and Trust Company Danville, VA Director since 1981 Committee 7 Martha W. Medley Partner Daniel, Medley & Kirby P.C. Danville and Martinsville, VA Director since 2008 Committees 5, 6, 7 Claude B. Owen Jr. Retired Chairman & Chief Executive Officer DIMON Inc. Danville, VA Director since 1984 Committees 2, 3, 6, 7, 8 Dan M. Pleasant Chief Operating Officer The Dewberry Companies Inc. Fairfax, VA Director since 2011 Committees 4, 6, 8 Robert A. Ward Retired Executive Vice President & Chief Financial Officer Unifi Inc. Greensboro, NC Director since 2011 Committees 1, 6, 8 Committees (as of Jan. 1, 2014) 1. Audit 2. Chief Executive Officer’s Advisory 3. Corporate Governance and Nominating 4. Human Resources and Compensation 5. Risk and Compliance 6. Stock Grant and Option 7. Trust 8. Capital Management Management Group Pictured (l-r): Charles T. Canaday Jr., S. Cabell Dudley Jr., R. Helm Dobbins, Charles H. Majors, Jeffrey V. Haley, William W. Traynham, H. Gregg Strader, Dabney T.P. Gilliam Jr. 14 Board of Directors Pictured (l-r): F.D. Hornaday III; Dan M. Pleasant; Charles S. Harris; Lester A. Hudson Jr., Ph.D.; Claude B. Owen Jr.; Charles H. Majors; Fred A. Blair; Jeffrey V. Haley; Michael P. Haley; John H. Love; Frank C. Crist Jr., D.D.S.; Martha W. Medley; Ben J. Davenport Jr. Not Pictured: Franklin W. Maddux, M.D.; Robert A. Ward ADVISORY BOARDS NORTH CAROLINA Dexter R. Barbee Sr. President Barbee Holdings Inc. H. Thomas Bobo Retired Chairman Fairystone Fabrics Thomas E. Chandler Sr. Chairman Chandler Concrete Company Inc. Dawn S. Chaney President Chaney Properties Paul E. Cobb Jr. Retired Managing Partner Cobb, Ezekiel, Loy and Company P.A. James R. Copland III Chairman Copland Fabrics Inc. Copland Industries Inc. James B. Crouch Jr. Vice President Harris, Crouch, Long, Scott & Miller Inc. J. Nathan Duggins III Partner Tuggle, Duggins & Meschan P.A. Victor E. Euliss Retired President Tarheel Dental Studio Anthony E. Foriest Retired Xerox Corporation J. Pat Harman Chairman & Chief Executive Officer North State Telecommunications Corporation John A. Holt Sr. President & Chief Financial Officer DynaYarn USA LLC Herman C. Johnson President Burlington Mechanical Contractors Inc. Teena M. Koury Owner Carolina Hosiery Mills John B. Leath Chief Executive Officer Acucote Inc. Phillip J. Nahser Jr., M.D. Cardiologist Cone Health Fred W. Reiber President Burlington Printing Company Inc. Alamance Professional Supplies Inc. Jeanne S. Robertson Professional Speaker JSR Inc. Gary A. Rogers Vice President D.H. Griffin Construction Diane M. Rumley, CPA Partner Leeper, Kean & Rumley LLP Charles K. Scott, M.D. President Burlington/Mebane Pediatrics Kenneth J. Shahbaz, CPA Partner Shahbaz Southern & Company P.A. James H. Smith Jr. President Villane Inc. George C. Waldrep Jr. Retired Executive Burlington Industries VIRGINIA Kim E. Adkins Mayor City of Martinsville President KEA Consulting Services Jay E. Barker President JEB International Tobacco Company James E. Barkhouser President Barkhouser Motors Inc. J. Brian Burton President J.E. Burton Construction Company Thomas C. Capps President Capps Shoe Company Inc. Timothy J. Clark Operations Officer Blair Construction Inc. James D. Coleman Jr. President Rives Brown Realty Eric Deaton Market President Danville Regional Medical Center Tiffany M. Franks, Ph.D. President Averett University Harold E. Green Jr. President Distinct Impressions Inc. Wanda B. Jeffress Owner Jeffress Funeral Home Earnest C. Jordan Retired Senior Vice President American National Bank and Trust Company Brian J. Kelleher Vice President Atlantic Precision Resources Inc. Chris A. Lumsden Chief Executive Officer Halifax Regional Hospital Chris F. Mohr Chairman & Chief Executive Officer Ameristaff Inc. James K. Muehleck, D.D.S. Dentist Martinsville Thomas S. Stump President & Chief Executive Officer First Piedmont Corporation Michael A. Thornton President Progress Printing William C. Vaughn Vice President J & R Management Inc. Lewis E. Wall Jr. President Davenport Energy 15 e g a g t r o m today tomorrow relationship century North Carolina trust community loans s service t i s o p e d solutions Virginia y t i v e g n o l PO Box 191 Danville, VA 24543 amnb.com 

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