S U M M A R Y
A N N U A L
R E P O R T
2 0 1 7
Progressive
Growth.
Regional
Strength.
Bright
Future.
When an organization begins to review their
future prospects and construct strategic
plans, they begin by accounting for their
Table of Contents
achievements to date and identifying the
Mission, Vision, Guiding Principles and Core Values ..... 1
opportunities that lie ahead. We are proud
to report that our future is quite bright! We
have built a strong foundation of progressive
Executive Leadership Letter .......................................... 2
Financial Highlights ........................................................ 4
growth by creating an organization with
Consolidated Balance Sheets ........................................ 6
regional strength placing an emphasis on local
decisions and cultivating lasting relationships.
This balance positions us for exciting years
Consolidated Statements of Income ............................. 7
Progressive Growth.
ahead and is the inspiration behind the theme
Regional Strength. Bright Future. .................................. 8
of this report.
This theme speaks to a fundamental core
of our strength: progressive growth, which
highlights our ability to connect with our
customers and our markets. Further, this
theme articulates our singular goal: to maintain
Preparing for the Future .............................................. 10
Our Focus: Purposeful Progress .................................. 12
90 Years and Growing .................................................. 13
Our Communities ......................................................... 14
Charley Majors Employee Achievement Award .......... 15
our strong community bank roots, to engage
Our Commitment Grows ............................................. 16
our customers and to serve our communities
in ways that provide for a greater good. We
have a unique story to tell that dates back
Our Board Leadership .................................................. 18
Our Executive Leadership............................................ 19
over 110 years of providing financial services
Shareholder Information .............................................. 20
and enabling success for our customers and
shareholders.
American National
American National Bankshares Inc. (the “Company”) is a bank holding company with assets exceeding
$1.8 billion. Headquartered in Danville, Va., it is the holding company of American National Bank and Trust
Company (the “Bank”), a community bank serving Virginia and North Carolina through 26 banking offices.
In addition, the Bank manages nearly $850 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 ATM network and debit cards to real-time Online Banking with Bill Pay, Mobile Banking with
Mobile Deposit, mobile debit card alerts and Telephone Banking. Chartered in 1909, the Bank is entering
its 110th year of operation. It has grown from a single office on Main Street in Danville to a progressive
multistate, 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 and is a leader in charitable and civic support in all its markets. Many Bank
employees serve on the boards of civic organizations throughout the Bank’s market area.
Table of Contents
Mission, Vision, Guiding Principles and Core Values ..... 1
Executive Leadership Letter .......................................... 2
Financial Highlights ........................................................ 4
Consolidated Balance Sheets ........................................ 6
Consolidated Statements of Income ............................. 7
Progressive Growth.
Regional Strength. Bright Future. .................................. 8
Preparing for the Future .............................................. 10
Our Focus: Purposeful Progress .................................. 12
90 Years and Growing .................................................. 13
Our Communities ......................................................... 14
Charley Majors Employee Achievement Award .......... 15
Our Commitment Grows ............................................. 16
Our Board Leadership .................................................. 18
Our Executive Leadership............................................ 19
Shareholder Information .............................................. 20
Mission,
Vision,
Guiding
Principles
and
Core Values
Mission Statement:
We provide quality financial services with
Vision Statement:
We will enhance the value of our shareholders’
exceptional customer service.
investment by being our communities’
Guiding Principles:
To achieve our vision and carry out our
mission, we:
• Operate a sound, efficient, and highly
preferred provider of relationship-based
financial services.
Core Values:
• Build personal relationships based on
profitable company,
honesty and integrity.
• Identify and respond to our internal and
• Treat people fairly and speak with candor
external customers’ needs and expectations
in an ever-changing financial services
environment,
and care.
• Develop people to their highest potential.
• Coach for improved performance.
• Provide quality sales and quality service to
• Show a passion for winning.
our customers,
• Act like business owners.
• Produce profitable growth,
• Celebrate individual and team successes
• Provide an attractive return for our
often.
shareholders,
• Communicate with strategic purpose and
• Furnish positive leadership for the well-
aim for consistency.
being of all communities we serve,
• Hold ourselves and our teammates
• Continuously develop a challenging and
accountable for results.
rewarding work environment for our
employees, and
• Conduct our work with integrity and
professionalism.
1
April 6, 2018
To Our Shareholders,
Jeffrey V. Haley
Charles H. Majors
For the past several years, we have been writing
two letters to you – one from the Chairman and one
from the Chief Executive Officer. This year, we opted
to deliver one message and to focus on the theme
of this annual report: Progressive Growth. Regional
Strength. Bright Future.
We are pleased to report to you that 2017 was an
exciting and successful year for our company and our
bank. It was our first full year in our new markets –
Roanoke, Virginia and Winston-Salem, North Carolina.
We have assembled strong teams in both markets,
and the results have been impressive.
We now offer banking services in nine market areas in
Southern and Southwest Virginia and Piedmont Triad
North Carolina. These markets offer a balance of
economic opportunities creating “regional strength,”
which produces “progressive growth” for a “bright
future” for our company, our employees, our
customers and our shareholders.
While we had “progressive growth” in loans and
deposits across the bank, loan growth was led
by our Greensboro, Roanoke and Winston-Salem
markets. Our loan portfolio grew $171 million or
14.7%. Deposits across the bank increased $164
million or 12.0%. Leading that growth were Roanoke,
Greensboro and Martinsville/Henry County, Virginia
(one of our legacy markets).
Net income for 2017 was down slightly as compared
with 2016. The enactment of the new federal tax law
in December 2017 negatively affected net income
for 2017. The law provides for the corporate tax rate
to be reduced from 35% to 21%. While this change
will positively affect our income tax expense in 2018
and going forward, GAAP accounting required a
revaluation of our deferred tax assets at the new rate
with a one-time charge in the fourth quarter of 2017.
With the deferred tax asset adjustment, net income
for 2017 was $15.2 million compared to $16.3 million
for 2016. Without this charge, 2017 net income would
have been $17.9 million – “progressive growth” in
earnings. Earnings per share were $1.76 for 2017
compared to $1.89 in 2016. Without the one-time
deferred tax adjustment, 2017 earnings per share
would have been $2.07.
Total assets of the company on December 31, 2017,
exceeded $1.8 billion. Shareholders’ equity was $209
million, and our average equity to average assets
was 11.64%. Our book value per common share grew
to $24.13 from $23.37 on December 31, 2016. All
of these numbers show growth and strength for a
“bright future.”
2017
2016
2015
$38.30
$34.80
$25.61
T H R E E - Y E A R S T O C K
(12/31 Closing Price)
2
In addition to earnings per share, we recognize the
importance of total return to the shareholder, which
we define as increase in your share price plus your
dividend. We continued to see the market price of
our stock increase – it closed on December 31, 2017,
at $38.30, compared to the December 31, 2016,
closing price of $34.80. In the fourth quarter, we
increased our quarterly dividend to $0.25 per share.
Again this shows growth and strength reflecting a
bright future.
We continue to grow a strong team across our
markets, united by a common culture committed to
our mission of providing quality financial services with
exceptional customer service. We live and work in
a manner that is consistent with our vision, guiding
principles and core values, which are set out on page
1 of this report. We hope that, as you read them, you
will understand why we are successful and why we
believe we have a “bright future.”
We have a great team of employees, led by a
talented executive group. As we grow and expand
into new markets, it becomes more evident that our
most important asset is our people – those who have
been with us for many years and those who have
joined us recently.
We also have a strong, effective and dedicated
board of directors. As shareholders, you elect them
and they do an outstanding job of representing
you in strategic policy leadership and management
oversight. We are proud to work with them, and we
hope you are also proud of their work.
In last year’s report, we recognized Ben Davenport,
who retired as a director at the May 2017 annual
2017
2016
2015
$26,075,066
$23,307,631
$21,059,359
I N C O M E B E F O R E I N C O M E
T A X P R O V I S I O N
meeting after 24 years on the board. Ben’s term as
director emeritus will end at this May’s annual meeting of
shareholders. We will miss his wise counsel.
In September 2017, Tammy Moss Finley was elected
as a director of the company and the bank. A native of
the Danville area and a current resident of the Roanoke
Valley area, Tammy serves as executive vice president,
general counsel and corporate secretary of Advance
Auto Parts, Inc., a leading automotive aftermarket
parts provider and a Fortune 500 public company. She
brings significant insight and expertise regarding legal,
human resources, risk management and public company
corporate governance matters. We are pleased and feel
fortunate to have Tammy join our board of directors.
We appreciate your support and recognize the
importance of your investment in our company. We,
our entire employee team and our directors, work hard
to manage the company prudently. Together we look
forward to continuing a successful company through
Progressive Growth and Regional Strength for a Bright
Future.
Very truly yours,
Charles H. Majors
Chairman of the Board
American National Bankshares Inc.
American National Bank and Trust Company
Jeffrey V. Haley
President and Chief Executive Officer
American National Bankshares Inc.
American National Bank and Trust Company
3
Financial Highlights
As of December 31. (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
2017
2016
2015
2014
2013
$ 63,038
7,291
55,747
1,016
14,227
42,883
26,075
10,826
15,249
$ 56,170
6,316
49,854
250
13,505
39,801
23,308
7,007
16,301
$ 55,169
5,904
49,265
950
13,287
40,543
21,059
6,020
$ 15,039
$ 47,455
5,730
41,725
400
11,176
34,558
17,943
5,202
$ 12,741
$ 52,956
6,583
46,373
294
10,827
35,105
21,801
6,054
$ 15,747
$ 1,816,078
1,336,125
327,447
1,534,726
208,717
163,654
$ 1,678,638
1,164,821
352,726
1,370,640
201,380
155,789
$ 1,547,599
1,005,525
345,661
1,262,660
197,835
151,280
$ 1,346,492
840,925
349,250
1,075,837
173,780
132,692
$ 1,307,512
794,671
351,013
1,057,675
167,551
125,349
$ 1.76
1.76
0.97
24.13
18.92
$ 1.89
1.89
0.96
23.37
18.08
$ 1.73
1.73
0.93
22.95
17.55
$ 1.62
1.62
0.92
22.07
16.86
$ 2.00
2.00
0.92
21.23
15.89
Average shares outstanding, basic
Average shares outstanding, diluted
8,641,717
8,660,628
8,611,507
8,621,241
8,680,502
8,688,450
7,867,198
7,877,576
7,872,870
7,884,561
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
Common equity tier 1 capital ratio
Tier 1 risk-based capital ratio
Tier 1 leverage ratio
Tangible equity to tangible assets ratio4
0.87%
7.34%
9.59%
54.98%
60.89%
3.50%
1.02%
8.07%
10.85%
50.71%
61.47%
3.52%
0.99%
7.65%
10.62%
53.65%
63.81%
3.69%
0.97%
7.40%
10.31%
56.80%
63.41%
3.66%
1.20%
9.52%
13.75%
46.03%
57.57%
4.10%
1.02%
1.10%
1.25%
1.48%
1.59%
531.37%
0.21%
0.02%
360.39%
0.29%
0.00%
242.09%
0.48%
0.08%
302.21%
0.46%
0.07%
248.47%
0.65%
(0.02)%
14.39%
11.50%
13.42%
10.95%
9.24%
14.81%
11.77%
13.83%
11.67%
9.54%
16.34%
12.88%
15.23%
12.05%
10.08%
17.86%
n/a
16.59%
12.16%
10.00%
18.14%
n/a
16.88%
11.81%
9.91%
1 Return on average equity is calculated by dividing net income available to common shareholders by average common equity.
2 Return on average tangible 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.
4
Performance
Graphs
On December 31, 2017, we completed a three-year strategic plan. The results are not only progressive,
but also demonstrate our strength and bring into clarity a truly bright future. As a team, we accomplished
significant gains in assets, deposits, loans and shareholder value via our stock price.
Three-Year Strategic
Plan Score Card
YTD
12/31/2017
YTD
12/31/2014
Three-Year
CAGR
% Change
During Plan
Stock Price (EOP)
$38.30
$24.81
15.57%
Total Assets
$1,816,078
$1,346,492
10.49%
Total Loans
1,336,125
840,925
16.69%
Total Deposits
1,534,726
1,075,837
12.57%
54.37%
34.87%
58.89%
42.65%
Total Deposits (in millions)
Total Assets (in millions)
2017
2016
2015
$1,535
2017
$1,816
$1,371
$1,263
2016
2015
$1,679
$1,548
Total Loans (in millions)
2017
2016
2015
$1,336
$1,165
$1,006
5
Consolidated Balance Sheets
As of December 31. (Dollars in thousands, except for 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 $147 in 2017 and $192 in 2016
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
Short-term borrowings:
Customer repurchase agreements
Other short-term borrowings
Long-term borrowings
Junior subordinated debt
Accrued interest payable and other liabilities
Total liabilities
Commitments and Contingencies
Shareholders’ equity:
2017
2016
$ 28,594
23,883
321,337
6,110
1,639
1,336,125
(13,603)
1,322,522
$ 20,268
32,939
346,502
6,224
5,996
1,164,821
(12,801 )
1,152,020
25,901
25,439
1,225
43,872
1,191
18,460
21,344
1,816,078
394,344
226,914
403,024
126,786
383,658
1,534,726
10,726
24,000
—
27,826
10,083
1,607,361
1,328
43,872
1,719
18,163
24,168
1,678,638
378,600
209,430
283,035
120,720
378,855
1,370,640
39,166
20,000
9,980
27,724
9,748
1,477,258
Preferred stock, $5 par, 2,000,0000 shares authorized, none outstanding
Common stock $1 par, 20,000,000 shares authorized,
8,650,574 shares at December 31, 2017, and
8,618,051 shares at December 31, 2016
Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss, net
Total shareholders’ equity
Total liabilities and shareholders’ equity
—
—
8,604
76,179
127,010
(3,076 )
208,717
1,816,078
8,578
75,076
119,600
(1,874 )
201,380
1,678,638
6
Consolidated Statements of Income
Interest and Dividend Income:
Interest and fees on loan
Interest on federal funds sold
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 junior subordinated debt
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, net
Brokerage fees
Income from Small Business Investment Companies
Gains (losses) on premises and equipment, 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
Other real estate owned, net
Merger-related expenses
Other
Total noninterest expense
Income before income taxes
Income taxes
Net Income
Net Income Per Common Share:
Basic
Diluted
Average Common Shares Outstanding:
Basic
Diluted
2017
2016
2015
$ 55,276
—
$ 47,971
—
$ 46,860
6
4,666
2,043
319
734
63,038
5,794
173
296
1,028
7,291
55,747
1,016
54,731
3,926
2,002
2,895
2,208
812
829
236
344
975
14,227
19,829
4,519
4,487
538
1,072
528
2,014
1,144
303
—
8,449
42,883
26,075
10,826
15,249
1.76
1.76
4,454
3,135
334
276
56,170
5,103
10
325
878
6,316
49,854
250
49,604
3,791
2,048
2,680
1,713
836
843
463
(9 )
1,140
13,505
17,568
4,264
4,246
647
995
964
1,828
1,143
336
—
7,810
39,801
23,308
7,007
16,301
1.89
1.89
4,072
3,681
346
204
55,169
4,811
9
324
760
5,904
49,265
950
48,315
3,935
2,066
2,377
1,320
867
946
912
11
853
13,287
16,554
4,311
4,425
750
898
1,201
1,725
1,158
99
1,998
7,424
40,543
21,059
6,020
15,039
1.73
1.73
8,641,717
8,660,628
8,611,507
8,621,241
8,680,502
8,688,450
7
7
Progressive
Growth.
Regional
Strength.
Bright
Future.
Merriam Webster dictionary defines “progress” as:
forward or onward movement toward a destination; a
higher stage.
When American National Bank began in 1909,
progress meant reaching our first anniversary and
simply taking care of our customers’ basic needs.
Today, our progressive growth signals something far
more productive and impactful—it means taking care
of individual customers through each financial stage of
life and ensuring our communities thrive and prosper.
We know and operate under the premise that “the
bank will only be as successful as the communities we
serve.”
For 110 years we have taken care of our customers
and our communities, and that history has served
as the base for our operating theme: “Progressive
Growth. Regional Strength. Bright Future.” Our
staff live, work, shop, raise families and help lead
in the communities we serve. The cycle of support,
success, growth and prosperity is important to us as
stakeholders of our community. Importantly, being a
“community” bank is the hallmark of our efforts and
the path that leads us forward.
Progressive Growth.
Regional Strength.
Bright Future.
Progressive Growth.
Progressive growth symbolizes an organization
that methodically, consistently and with an eye
toward tomorrow marches forward in lock-step
with our customers. It means bringing technology
improvements for our customers, new products
to the marketplace and continuing to serve our
communities. It also means that we understand the
needs of our market and know the true pulse of
the areas in which we operate. Progressive growth
comes at a sustainable pace that leads our team
and customers forward.
We have introduced new services and accounts
tailored to our customers. With consistent
increases in assets, income and funds managed, our
progressive growth is proven and demonstrates
sustainable results.
8
Regional Strength.
Having regional strength provides a strong bench and
supporting staff that enable our local commitment to
progressive growth to take hold. We have the capability
to grow with our customers’ needs and the personal
touch to take every step of the journey together.
Our strength brings opportunity to our customers,
community, staff and our entire region through
ensuring sustainable progress forward and having the
wherewithal to enact positive change and impact.
Our new markets of Roanoke and Winston-Salem bring
into clear focus our regional strength and broader
reach. Our customers can now enjoy increased access
to options, resources and services that our greater
network of branches have made possible.
Bright Future.
Having a bright future is all about sustainable success
and the ability to seize opportunities when presented.
As a community bank, we continue to invest in our
staff, our facilities and our ability to deliver the
personal service and support that our customers
consistently praise, whether it’s a small business
seeking capital to take that next step forward, a
commercial customer fueling their growth, or a
We have consistently received excellent ratings for
capital and asset quality and maintain strength today
for the future that tomorrow brings. By increasing staff
expertise through training and mentoring, we have
ensured a strong foundation to grow into the future
mortgage customer buying his or her very first home.
needs of our customers and communities.
9
Preparing
for the
Future.
In 2017, the bank redefined several key aspects of
our business which will continue to help power our
progressive growth for both our footprint and more
importantly, service and support for our customers
and communities. Paying heed to our community bank
roots yet adding power to our team brings with it the
resources of a regional bank such as treasury services
and experienced commercial relationship managers.
Our customers tell us that they want us to help them
in more ways and with a deeper understanding of their
business—this is a top priority.
As we celebrated our 90th year with our Trust
customers, we added an additional Trust officer
to keep up with customer demand and ensure our
service levels remain extraordinary. In nine decades
of customer service, our reputation has grown into a
proven leader and our financial expertise has helped
our customers mold their future.
The more support we bring
our customers, the more
volume and product demand
we receive.
Across all lines of business, we are united in our
focus on being a partner for our customers, not just
a transaction provider. As banks have consolidated
around us, we have kept our focus of delivering
relationship banking and local decisions. To facilitate
local decision making, and to be more aware of the
true “pulse of our community,” we have realigned
our branch reporting structure so that there is in-
market leadership responsible for the management
activities in each community. This not only speeds
decisions but also enables us to make decisions
closer to the customer point of contact. Our growing
branch network means more access, closer support
and more options for our customers across the
region.
1 0
To ensure our customers and partners have the tools
The customer impact is clear through greater efficiency
available to best serve their needs, we have added
and action. We are positioned for progressive growth,
new services such as:
• Purchasing Cards
• Lockbox Services
• ACH Positive Pay
and our new processes ensure both our local decision
makers and regional support staff have the tools and
teams in place.
Our progress forward has lead our bank on a path of
significant growth from both recent acquisitions and
Proactive financial management is key to maintaining
organic growth. Our future is bright based on our track
progress forward and ensuring a bright future for our
record of successful growth and our regional presence.
customers!
With a clear focus on operational efficiency, customer
support and management of new volumes, we have
Total Assets As of December 31 each year.
2017
$1,816,078,395
also added key staff in:
• Mortgage Origination
• Mortgage Operations
• Credit Administration
• Trust Services
• Loan Review
• Loan Compliance
• Risk and Compliance
2016
2015
2014
2013
2012
2011
2010
$1,678,638,319
$1,547,598,530
$1,346,491,991
$1,307,511,663
$1,283,686,656
$1,304,705,874
$833,664,416
1 1
Our
Focus.
Purposeful Progress
Administration
• Added Tammy Finley as a new Board Member from our Roanoke market
• Appointed Eddie Martin as Chief Credit Officer
Retail Banking
• Officially opened new offices in Winston-Salem and Roanoke
Commercial
Trust and
Investments
Insurance
• Added additional resources within our Credit Administration area to help us
build better processes that position us for additional growth
• Enhanced our Treasury Services products and services
• Celebrated our 90th anniversary and $58M in growth of assets under management
• Added a Trust Officer to enhance the customer experience and administration staff
to handle increased volume
• Brought new Cyber Security support for our customers and business partners
Mortgage Lending
• Implemented new processes within our Mortgage Operations team which
allows for expedited closings
• Added new mortgage originators to support our broader region
1 2
T H
Powerful Legacy and a
Prosperous Future!
For the past 90 years, Trust and Investment Services has
In 2017, we reached a milestone of 90 years of
been a fundamental part of our company’s overall success.
service to our Trust customers and helping each
From humble beginnings driven by the desire to help our
plan their success in a personalized manner. The
customers succeed today and plan for tomorrow, we have
efforts of the Trust and Investment Services team
built a division that now oversees $850M in assets.
have paved the way for a prosperous future in which
the next generation of customers and communities
A key component of our commitment to our communities
will benefit from our powerful legacy.
and customers is being a full-service provider of trust,
investment and banking services. From checking accounts
to the most complex estate planning, we are committed
to meeting the needs of our communities and customers.
Because of our community commitment, dedication
and hard work, generations of families have entrusted
Generations of families
have placed their trust with
American National Bank.
American National Bank and Trust Company with growing
As we build our plans for the next 90 years, rest
and preserving their assets, planning their futures,
assured that American National Bank and Trust
protecting their heirs, providing for the charities they care
Company will focus on leading the industry and our
about and ensuring that their family legacy thrives.
customers forward.
“In 2017, we were thrilled to celebrate our 90th year of helping
multiple generations of families improve their financial lives and
preserve their legacies. We look forward to helping current and
future generations reach their wealth management priorities.”
- John Settle, President of Trust and Investment Services
1 3
Our Communities
COLLINSVILLE
2484 Virginia Avenue
Collinsville, VA 24078
ROANOKE
3000 Ogden Road
Roanoke, VA 24018
GRAHAM
842 South Main Street
Graham, NC 27253
GRETNA
109 North Main Street
Gretna, VA 24557
ROCKY MOUNT
400 Old Franklin Turnpike
Rocky Mount, VA 24151
HARDY
Westlake
12930 Booker T
Washington Hwy
Hardy, VA 24101
LYNCHBURG
Graves Mill
1646 Graves Mill Road
Lynchburg, VA 24502
Timberlake
20479 Timberlake Road
Lynchburg, VA 24502
MARTINSVILLE
900 Liberty Street
Martinsville, VA 24112
RIDGEWAY / 220 SOUTH
3810 Greensboro Road
Ridgeway, VA 24148
SOUTH BOSTON
3609 Old Halifax Road
South Boston, VA 24592
UNION HALL
Southlake
25 Southlake Drive
Union Hall, VA 24176
Phone: (540)576-1218
North Carolina
BURLINGTON
South Church Street
3101 South Church Street
Burlington, NC 27215
Cum Park Plaza
2214 North Church Street
Burlington, NC 27217
Village at Brookwood
1840 Brookwood Avenue
Burlington, NC 27215
GREENSBORO
Green Valley Road
703 Green Valley Road,
Suite 101
Greensboro, NC 27408
Guilford College
5509-A West Friendly
Avenue, Suite 102
Greensboro, NC 27410
MEBANE
1008 Mebane Oaks Road
Mebane, NC 27302
YANCEYVILLE
173 Main Street
Yanceyville, NC 27379
WINSTON-SALEM
110 Oakwood Drive,
Suite 520
Winston-Salem, NC 27103
Virginia
DANVILLE
Main
628 Main Street
Danville, VA 24541
Nor-Dan
239 Nor-Dan Drive
Danville, VA 24540
Piedmont Drive
445 Mount Cross Road
Danville, VA 24540
Airport
1407 South Boston Road
Danville, VA 24540
BEDFORD
207 North Bridge Street
Bedford, VA 24523
CHATHAM
13880 U.S. Highway 29
Chatham, VA 24531
1 4
Charley Majors
Employee
Achievement
Award
In honor of our Chairman and Retired Chief
Treasury Services area whereby
Executive Officer, we established the Charley
today we can offer similar
Majors Employee Achievement Award in 2014.
services as to any of our
Mr. Majors is a champion of the bank’s progressive
competitors. She epitomizes
growth and has been a major influence on the
the spirit of the Charley
culture and achievements of our staff.
Majors Employee Achievement
Award in her actions, energy
This award is given to the employee who best
and passion for helping both
exemplifies the American National Core Values,
customers and fellow staff
Jennifer Stetler, Senior Vice
President—Treasury Services
who is a constant team supporter, who exhibits
members succeed.
the “extra mile” of effort and leadership in
the face of adversity, and who demonstrates a
cheerful spirit of service to customers and
co-workers. The recipient will possess an
exceptional degree of character, high personal
integrity and a sense of service beyond question.
For 2017 the honored employee is Jennifer
Stetler, SVP, Treasury Services. Jennifer is a highly
respected team member and key contributor
to many new services meeting the needs of our
customers. Treasury Services is a newer business
line for American National Bank and we needed
a spirited leader with experience, purpose and
commitment—that is Jennifer Stetler in a nutshell.
Jennifer approaches life with a “can-do” spirit.
“Jennifer’s positive,
proactive, solutions
oriented, team approach
makes her a winner both
for our customers and our
employees. Jennifer cares
and Jennifer matters!”
- Gregg Strader, EVP and Chief Banking Officer
She is willing to jump in, chip in and do whatever
We are pleased to present Jennifer Stetler as
she has to do to make the American National
the 2017 Charley Majors Employee Achievement
Bank team shine. Jennifer has expanded our
Award winner.
1 5
Our Commitment Grows
In 2017, the American National Bank team
other organizations through our broad footprint
participated in outside leadership roles across
in the marketplace. For American National
nearly 300 organizations of various sizes,
Bank, we elevate our commitment to a higher
focus and location. Employees dedicate
their personal time, passion and skills to help
level and bring our regional strength to bear in
benefiting the organizations our staff members
these organizations. In addition, the Bank
participate in and support.
supports their efforts by contributing to these
organizations with financial support.
We take our role of “community bank” very
seriously and realize that one of a company’s
Leadership roles in nearly
300 organizations
fiduciary responsibilities is active leadership
From Lynchburg to Winston-Salem and
within the community. A bank has a unique
Roanoke to South Boston we have integrated
level of impact for organizations—from
leadership assistance, financial planning
ourselves into the fabric of the communities
we serve and have initiated programs and
support, strategic planning and connections to
support that bring progressive growth and
sustainable involvement.
1 6
Here is a sampling of the organizations we supported in 2017:
Blue Ridge Mountains Council, BSA
37th District Scholarship Fund
Action Greensboro
AJ Linville Foundation
Alamance Co. Chamber of
Commerce
Alamance Co. Economic
Development Foundation
Alamance Community College
Foundation
Alamance Eldercare
Alamance Junior Tennis Foundation
Alamance Reg. Charitable
Foundation
Albert Harris Elementary School
Alliance Human Services Inc.
Alzheimer’s Association
American Cancer Society
American Legion
Andrew Haley Memorial
Art at the Rives Theater
Bassett High School
Bedford Area YMCA
Better Together Inc.
Big Brothers Big Sisters
Blue Ridge Regional Library
Foundation Inc.
Boys & Girls Club of Danville
Brambleton Area Business
Association Inc.
Burlington Christian Academy
Burlington Parks & Recreation
Carlisle School
Caswell Co. Chamber of Commerce
Center in the Square
Chatham High School Booster Club
Children’s Assistive Technology
Services
Comet Baseball Booster Club
Community Foundation-Dan River
Community Partnership for Franklin
County
Cool Branch Fire & Rescue Fund
CUMC
Cystic Fibrosis Foundation
Dan River High School JROTC
Dan River Region Assoc. of Realtors
Danville Art League
Danville Family YMCA
Danville Heart Association
Danville Life Saving Crew
Danville Museum of Fine Arts &
History
Danville Parks & Recreation
Danville Pittsylvania Co. Chamber
Danville River District Association
Danville Science Center
Danville Shrine Club
Danville Speech & Hearing Center
Dearington Elementary School
DESI
Dixie Youth Baseball
Don Holliday Memorial Scholarship
Downtown Greensboro Foundation
Downtown Roanoke Inc.
Ducks Unlimited
Education Foundation Inc.
EHS All Sports Foundation
EMM Reading Project
EMM Community Service Project
Enrichment Fund for Guilford
County Schools
Everfi
Faith Christian School Inc.
Ferrum College Athletics
Ferrum College
Fieldale Heritage Inc.
Figsboro Ruritan Club
Five Star Sports
Folds of Honor
Franklin Co. Lacrosse Club, Inc.
Franklin Co. Parks & Recreation
Franklin County Sheriff’s Office
Freshmore Boys Basketball
Front St. United Methodist Church
Future of The Piedmont Foundation
Gallery Players
God’s Pit Crew
God’s Storehouse
Graham Rotary Club
Greensboro Chamber of Commerce
Greensboro Merchants Association
Greensboro Science Center
Greensboro Young Life
Gretna Band
Gretna Volunteer Fire Department
Gretna Volunteer Rescue Squad
Gretna Youth Sports
Guilford Merchants Association
Hadassah
Halifax Co. Booster Club
Halifax Co. Chamber of Commerce
Halifax Co. Fair
Halifax Co. High School
Halifax County Public Schools
Education Foundation
Halifax County Fire Department
Halifax County Little League
Halifax County Little Theatre
Hargrave Military Academy
Harvester Performance Center
HC-SB Sports Hall of Fame
Healing Garden at Alamance
Regional
Henry Co. Sheriff’s Office
Historic Garden Week
Historical Society of Western
Virginia
Horizons Residential Care Center
Hospice League of Alamance-
Caswell
James Madison Middle School
Jill’s Buddy Camp
Junior Achievement of Southwest
Virginia, Inc.
Junior League of Greensboro
Kaleideum
King’s Grant
Kiwanis Club of Botetourt County
Kiwanis Club of Burlington
Kiwanis Club of Danville
Kiwanis Club of Greensboro
Lady Eagles Softball Booster Club
Lake Sugar Tree Motorsports Park
Little Pink Houses of Hope
Local Office on Aging Inc.
Luncheon Pilot Club of Danville
Lynchburg Baseball Corp.
Lynchburg City Schools Education
Lynchburg Morning Rotary Club
Lynchburg Public Library
Lynchburg Regional Business
Alliance
Magna Vista High School
Martinsville City Public Schools
Martinsville City Sheriff’s Office
Martinsville Henry Co. Chamber
Martinsville Henry Co. Lions Club
Martinsville Henry County National
Society of Black Engineers
Mebane Business Association
Mentor/Role Model Program Inc.
Merchants Association of Gretna
MHS After Prom Committee
Mill Mountain Theatre
Moneta Lions Club
Nat Greene Kiwanis
National D-Day Memorial
New London Horse Show
North Carolina Bankers Association
North Carolina Wildlife Habitat
Old North State Council BSA
Olde Dominion Ag. Complex
Operation Merry Christmas
Optimist Club of Graham
PCYLA
Piedmont Arts Association
Piedmont Youth Soccer League
Pigg River Community Center
Pittsylvania Career & Technical
Center
Pittsylvania County Schools
Pittsylvania Pet Center
Presbyterian Community Center
Preservation Greensboro Inc.
RADAR
Ralph Scott Life Services
RCC/Holy Strokes Fundraiser
Rebounding Roanoke
Redwood United Methodist Church
Region 2000
Retail Merchants Association
Ringgold Vol Fire Dept
Roanoke Branch NAACP, Unit 7114
Roanoke Children’s Theatre
Roanoke Kiwanis Foundation
Roanoke Regional Chamber of
Commerce
Roanoke Regional Partnership
Roanoke Regional SBDC
Roanoke Valley Assoc of Realtors
Roanoke Valley Firefighters
Foundation Inc.
Rocky Mount Police Dept
Rooster Walk, Inc.
Rotary Club of Chatham
Rotary Club of Danville
Rotary Club of Danville- Riverview
Rotary Club of Greensboro
Rotary Club of Henry County
Rotary Club of Martinsville
Rotary Club of Rocky Mount
Sacred Heart Catholic School
Salem Rotary
Salvation Army Boys & Girls Club
Scholastic Sports, Inc.
Scottsburg Athletic Association
Smith Mountain Lake Civitan Club
Smith Mountain Lake Regional
Chamber of Commerce
Smith Mountain Lake Marine
Volunteer Fire Rescue
Smith River Sports Complex
Smith Mountain Lake Charity
Home Tour
Smith Mountain Lake Good
Neighbor
South Boston Pizza Festival
Spencer-Penn Centre
Star City Soccer Foundation
Summit Rotary Foundation Inc.
Swansonville Pentecostal Holiness
The Agape Center
The Children’s Heart Foundation
The Volunteer Center of
Greensboro
Triple Negative Breast Cancer
Foundation
Tunstall Golf Team
Tunstall High School DECA
United Way
Virginia Bankers Association
VBA Education Foundation
Virginia Chamber of Commerce
Virginia Government Finance
Officers Association
Virginia Reds Travel Baseball Team
Virginia Special Olympics
Virginia Squires Baseball
Ward Burton Wildlife Foundation
We Care of Franklin County Inc.
Western Alamance Science Club
Western High Athletic Boosters
Westover Christian Academy
Williams High Athletic Boosters
Wyndham Championship
YMCA Camp Weaver
YMCA of Alamance County
YMCA of Central Virginia
YMCA of Franklin County
1 7
Our Board Leadership
Director Emeritus
Ben J. Davenport Jr.
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, 5, 6
Tammy M. Finley
Executive Vice President and General
Counsel
Advance Auto Parts, Inc.
Roanoke, VA
Director since 2017
Committee 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
Michael P. Haley
Retired Advisor
Fenway Partners
New York, NY
Director since 2002
Committees 1, 2, 4, 6, 8
Charles S. Harris
Executive Vice President
Averett University
Danville, VA
Director since 2008
Committees 1, 5, 6
F. D. Hornaday III
President & Chief Executive Officer
Knit Wear Fabrics Inc.
Burlington, NC
Director since 2011
Committees 3, 6, 7
John H. Love
President & Chief Executive Officer
W. E. Love & Associates Inc.
Burlington, NC
Director since 2011
Committees 4, 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
Chairman of the Board
American National Bankshares Inc.
American National Bank and
Trust Company
Danville, VA
Director since 1981
Committee 7
Claude B. Owen Jr.
Retired Chairman &
Chief Executive Officer
DIMON Inc.
Danville, VA
Director since 1984
Committees 2, 3, 6, 7, 8
Ronda M. Penn
Chief Financial Officer
Plexus Capital LLC
Raleigh, NC
Director since 2015
Committees 1, 4, 6
Committees:
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
1 8
Dan M. Pleasant
Chief Operating Officer
The Dewberry Companies Inc.
Fairfax, VA
Director since 2011
Committees 4, 6, 8
Joel R. Shepherd
President
Virginia Home Furnishings Inc.
220 Self Storage Inc.
Roanoke, VA
Director since 2015
Committees 3, 6, 8
North Carolina Advisory
Board Members:
Advisory Boards (as of January 1, 2018)
Thomas E. Chandler Jr.
President
Chandler Concrete Company Inc.
Dawn S. Chaney
President
Chaney Properties
James B. Crouch Jr.
Vice President
Harris, Crouch, Long, Scott & Miller
Inc.
J. Nathan Duggins, III
Managing Partner
Tuggle Duggins P.A.
Anthony E. Foriest
Retired
Xerox Corporation
John A. Holt Sr.
President & Chief Financial Officer
DynaYarn USA LLC
David S. Johnson, M.D.
Physician
Burlington Pediatrics
Ronald A. Joyce
President & Chief Executive Officer
Joyce Foods
Teena M. Koury
Owner
Carolina Hosiery Mills
John B. Leath
Chief Executive Officer
Acucote Inc.
Timothy J. Clark
Vice President
Blair Construction Inc.
James D. Coleman Jr.
President
Rives Brown Realty
Nicholas C. Conte
SVP and General Counsel
Carilion Clinic
Martha W. Medley
Partner
Daniel, Medley & Kirby P.C.
Chris F. Mohr
Chairman & Chief Executive Officer
Ameristaff Inc.
James K. Muehleck, D.D.S
Dentist
Martinsville
C. Laine Dalton
VP, General Manager & Partial Owner
Dalton Insurance Agency
Stephen A. Musselwhite
President
Musselwhite & Associates
R. Aubrey Linville, III
Partner
Linville Team Partners, LLC
Phillip J. Nahser Jr., M.D.
Cardiologist
Cone Health Medical Group
Richard H. Ramsey
Operating Partner
New Page Capital
President
Engineered Steel Products, Inc.
President
American Industrial, LLC
Diane M. Rumley, CPA
Partner
Leeper, Kean & Rumley LLP
Adrian T. Smith
Chief Executive Officer
Ice Age Management
James H. Smith Jr.
President
Villane Inc.
Sherri K. Squier
Chief Executive Officer
All-State Express, Inc.
John M. Deekens
Retired General Manager
Stuart Forest Products
Harold E. Green Jr.
President
Distinct Impressions Inc.
Tammy B. Jewell
Business Manager
Jewell Machinery, Inc.
Richard H. Jones
CPA
Jones & Associates
Kyle M. Winslow
Vice President
Briggs-Shaffner Acquisition Company
Earnest C. Jordan
Retired Senior Vice President
American National Bank and Trust
Company
Virginia Advisory
Board Members:
Dr. Al N. Angle
retired
Drs. Saxon, Angle and Assoc., P.C.
Andy C. Kelderhouse
President
Fralin & Waldron, Inc.
John H. Laramore
Realtor
Wilkins and Co. Realtors
W. Kelvin Bowles
President & Owner
Eastern Communications Associates
John D. Lugar
President
Virginia Varsity Transfer & Storage
J. Brian Burton
President
J.E. Burton Construction Company
Lauren M. Mathena
Director of Economic Development
and Community Engagement
Mid-Atlantic Broadband
Communities Corp.
Harry G. Norris
President
Howell’s Motor Freight
Danny M. Purdue
Vice President
Perdue Properties Inc.
Keith Robinson, M.D.
Physician
Danville
R. Eddie Shelton
Owner
Diamond S Farms
W. Earle Spruill Jr.
President
Osage, Inc.
Thomas S. Stump
President & Chief Executive Officer
First Piedmont Corporation
Michael A. Turner
CEO & Partial Owner
Turner’s Building Inc.
William C. Vaughn
Vice President
J&R Management Inc.
E. Linwood Wright
Consultant
Danville IDA
Our Executive Leadership
Executive Management (as of January 1, 2018)
Jeffrey V. Haley
President
Chief Executive Officer
Edward C. Martin
Executive Vice President
Chief Credit Officer
H. Gregg Strader
Executive Vice President
Chief Banking Officer
William W. Traynham
Executive Vice President
Chief Financial Officer
John H. Settle Jr.
Executive Vice President
President of Trust and Investment
Services
1 9
American National Bankshares Inc.
Shareholder Information
Stockholder Information
Annual Meeting
• The 2018 Annual Meeting of Shareholders of American
National Bankshares Inc. will be held on Tuesday,
May 15, 2018, at 9 a.m. (EDT) at The Wednesday Club,
1002 Main Street, 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.”
Shareholder inquiries
• Shareholders needing information on stock transfer
requirements, lost certificates, dividends, the dividend
retirement plan and other shareholder matters may
contact:
Computershare Inc.
PO Box 30170
College Station, TX 77842
800.368.5948
General Corporate Information
Independent Auditors
Yount, Hyde & Barbour PC
50 South Cameron Street
Winchester, VA 22601
Regulatory and Securities Counsel
Williams Mullen
Williams Mullen Center
200 South 10th Street, Suite 1600
P.O. Box 1320 (23218)
Richmond, VA 23219
Equal Opportunity Employer
American National Bank and Trust Company, a wholly
owned subsidiary of 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.
This Report
The American National Bankshares Inc. 2017 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 2017 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:
American National Bankshares Inc.
Investor Relations
PO Box 191
Danville, VA 24543
800.240.8190
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: financial
market volatility including the level of interest rates could affect the values of financial instruments and the amount
of net interest income earned; general economic or business conditions, either nationally or in the market areas in
which the Company does business, may be less favorable than expected, resulting in deteriorating credit quality,
reduced demand for credit, or a weakened ability to generate deposits; competition among financial institutions may
increase and competitors may have greater financial resources and develop products and technology that enable
those competitors to compete more successfully than the Company; businesses that the Company is engaged in may
be adversely affected by legislative or regulatory changes, including changes in accounting standards; the ability to
retain key personnel; the failure of assumptions underlying the allowance for loan losses; and risks associated with
mergers, acquisitions, and other expansion activities. 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.
2 0
“Progress lies not in
enhancing what is,
but in advancing toward
what will be.”
- Khalil Gibran
628 Main Street,
Danville, VA 24541
434.792.5111
amnb.com