Annual Report 2018
Bigger.
Better.
Stronger.
Together.
we’re focused on
delivering a better
banking experience
for our customers
contents
Shareholder Letter
HomeTown Bank Announcement
Growing Communities
Future and Focus
Leadership
Charley Majors Achievement Award
Financials
Shareholder Information
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8
10
12
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To Our Shareholders
Our accomplishments in 2018, both financially
and strategically, underscore the relevance
of our focus and direction as a progressive
community bank. As outlined in American
National’s three-year strategic plan that guides
us through 2021, we will remain a top-performing
community bank by focusing on key objectives
under the theme of Bigger, Better, Stronger.
We demonstrated our commitment to the “Bigger”
part of this theme in October of 2018 when we
announced our largest acquisition to date. With
the merger with Roanoke-based HomeTown
Bankshares Corporation and HomeTown Bank
effective on April 1, we have expanded our
presence in a market that we have enjoyed being
part of for the past couple of years, in addition to
building a presence in the New River Valley. We
now have assets approaching $2.5 billion and are
one of the largest community banks headquartered
in Virginia.
As we actively work to strategically grow in markets
that afford the best opportunities for growth, we
Charles H. Majors I Chairman of the Board
Jeffrey V. Haley I President & Chief Executive Officer
are also becoming “Better.” We all recognize that
With balance sheet growth during 2018 combined
bigger isn’t everything, but by focusing on delivering
with our strong capital position and excellent asset
a better banking experience for our customers
quality, we are “Stronger” than ever. We plan to
and employees, we will continue to attract new
leverage our strengths as we demonstrate our ability
customers and talent to our bank. We are actively
to grow in both our new and existing markets. Our
seeking ways to improve processes to ensure it’s
revenue growth was impressive in each of American
easy to do business with us, while also investing in
National’s three regions with year-over-year loan
our bank’s next generation of leaders.
growth of $21.4 million over 2017, and year-over-year
1
HomeTown Bank Announcement
deposit growth was $31.5 million, primarily driven
We wish to recognize Fred Blair and Frank Crist,
by growth in non-interest bearing accounts.
who will retire as directors at the May 2019 annual
meeting. Mr. Blair has served on our board since
Net income for 2018 was $22.6 million, compared
1992 and Dr. Crist joined us in 2006. We anticipate
to $15.2 million for 2017, a 48.1% increase, while
the board naming each of them as a director
earnings per share were $2.60 for 2018 compared
emeritus for the coming year.
to $1.76 for 2017. Net income for 2017 was impacted
negatively by the enactment of the new federal tax
With our HomeTown acquisition, we welcome new
2018 was an exciting year on all fronts for
American National Bank & Trust Company.
It was a year filled with growth, success,
opportunities, community involvement, and new
milestones as we enter our 110th year of business.
Biggest and brightest among 2018’s achievements
is American National’s acquisition of HomeTown
law in December 2017, but it had a positive impact in
board members, with the addition of Nancy Agee,
Bank. It’s an important addition for many reasons,
our presence in this great community and also
2018 and for future years.
President & CEO of Carilion Clinic; Kenneth Bowling,
but perhaps the most significant of these is how
further into the New River Valley. With the additional
Net Income
Earnings per share
2018
$22,579
$2.60
2017
$15,249
$1.76
Vice President, HT Bowling Inc.; and Susan Still,
HomeTown Bank’s President & CEO. Ms. Agee and
Mr. Bowling now serve as directors of both the bank
and the Company. Ms. Still is now a director of the
bank and she has been nominated for election to
the Company board at the annual shareholders’
Our growth, performance and accomplishments are
meeting in May. These directors will help ensure
not possible without a strong and committed team
a smooth transition during HomeTown Bank’s
of bankers to carry out our vision. We have always
integration and beyond.
known and appreciate that our greatest asset is our
well our banks complement each other and the
locations, we’ll inherit a great team of bankers and
extent to which we share missions and values.
professionals to help us continue to grow.
Cultural alignment is what makes most mergers
successful (or not), and we knew early on it was a
But bigger isn’t everything. Together we’re now
great fit with HomeTown.
BETTER as well. While HomeTown was younger,
having been founded in 2005, we did learn some
Together we’re now BIGGER, and American National
things from their youth; pairing those learnings
has added 4 branches in key areas of Roanoke,
with our strong legacy of community banking, we
Salem, and the New River Valley to our footprint,
have combined the best of both of our banks. In
for a total of 28 offices. We have enjoyed being part
the spirit of constant improvement, we’re actively
people, and we thank all 417 team members who
As we work to be Bigger, Better, and Stronger, we
of the Roanoke market and are excited to expand
refining what it means to be a community bank,
now will be an integral part of American National’s
appreciate your support and your investment in
overall success.
our company. We look forward to ongoing success
as we realize new opportunities and continue to
We also recognize that a strong team is made
deliver on our commitment to our shareholders,
stronger with the guidance and expertise of an
employees, customers, and communities.
experienced, dedicated and effective Board of
Directors. We have a seasoned team of directors
Very truly yours,
who bring the voice for the shareholders, customers
and local markets to every decision, action and
strategy of the Company.
and what we can offer the communities we serve.
Finally, coming together has made us even
STRONGER. As a combined bank, we’re now one
of the largest independent community banks in
the state, with assets of around $2.5 billion. That
means more possibilities, more growth and more
support for the communities we call home.
For us, that’s what it’s all about. Community.
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3
Community Growth: News from across our footprint
American National Bank & Trust Company operates
growing franchises in three regions surrounding
our main office in Danville: North, South, and East.
Each region is led by a Regional President and is
composed of distinct markets, including a string of
cities and counties we are proud to be part of.
Across our footprint, we are very involved in financial
education through our partnerships with Everfi’s
Financial Literacy program, as well as loyal supporters
of our local United Way chapters. We are guided by
the belief that a community bank is only as strong as
the communities it serves, and are very proud of the
active role we play in growing and investing in each of
our markets while staying true to the things that make
each one unique.
There has been no shortage of activity, and what
follows are highlights from some of this year’s most
important stories from across our regions.
2018 Big Lick Train Tug
4
Vikeesa Stultz (center) at the Field of Honor ceremony
NORTH REGION
Led by Kevin Meade, the North Region stayed active
with many community events across Roanoke,
Franklin County, and Lynchburg.
Roanoke
The biggest headline by far is American National’s
announcement of the merger with HomeTown Bank
as we subsequently established Roanoke as our
Virginia banking headquarters. We are excited to
welcome our new colleagues and customers as we
grow bigger, better, and stronger together.
American National sponsored the Big Lick Train Tug
benefiting the Presbyterian Community Center for
the second year. This unique event assembles teams
of people to raise money and compete for the best
time for pulling the iconic 611 locomotive a specified
distance. We also enjoyed being part of Turn the
Page’s inaugural fundraiser, “The Rooftop is Waiting.”
Turn the Page is a non-profit organization promoting
early learning that encourages parents to read to their
children by providing new, age-appropriate books.
Franklin County
Always active supporters in our local United Way
chapters, we love the opportunity to write BIG checks
to them (big both in monetary amount and physical
size!) as our Rocky Mount team was able to do in 2018.
Market President Todd Hammock, as Treasurer of the
area chamber, along with his community-oriented
team stayed busy with many Smith Mountain Lake
Chamber of Commerce events throughout the year.
Our Rocky Mount team presenting a check to the United Way
Lynchburg
American National proudly sponsored the Forest
Jason Owens and Tim Marshall delivering 14 bicycles
EAST REGION
Charles Canaday leads our East Region, which includes
Alamance County, North Carolina; Southside Virginia;
and our home market of Danville in Pittsylvania County.
Pittsylvania County
The community of Danville has seen a lot of
resurgence on the economic development front,
and we are proud to play an important role in this
growth. John Settle, with his involvement on the
Chamber of Commerce Board, and Market President
Rotary Club’s annual Field of Honor from September
Ted Laws, through his involvement with the River
1-15. Market President Vikeesa Stultz had the honor
District Association (RDA), are both an active part
of reading the mayoral proclamation on behalf
of this rebirth. The RDA has done tremendous work
of Lynchburg Mayor Tweedy at the Field of Honor
revitalizing the downtown Danville community
opening ceremony.
through public-private partnerships, events, and
initiatives to help market the area’s unique assets.
Employees acquired a total of 14 bicycles, which
In other Danville-area developments, American
were purchased by the central market of Lynchburg
National played a key part in financing Kyocera’s new
and Bedford and donated to Dearington Elementary
30,000-square-foot state-of-the-art facility through
School of Innovation during the end-of-year awards
our partnership with The Industrial Development
program.
Authority of Danville.
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Ted Laws, Ashley Ege with the Heart Association, and Stetson
Franklin showing AMNB’s awards from the 2018 Heart Walk
Edwin Bland, Vanessa Smith with Stitch Design Shop, Trent Wall, Rhonda Joyce, Jeff Haley, and
Mark Dunnagan with Frank L Blum Construction inside our Winston-Salem office under construction
South Boston
Market President Ronnie Moore chaired the Jeff
Nelson Memorial Golf Tournament, an event for
which American National was a major sponsor. The
tournament raised over $7,500 for the Halifax County
Education Foundation to benefit its high school
athletics programs.
Alamance County
American National has always been a leading sponsor
of the Alamance Chamber of Commerce’s Teacher of
the Year program. We were thrilled when this year’s
recipient, Freebird McKinney, went on to complete
for North Carolina Teacher of the Year. After winning
community. This project is a prime example of our
commitment to investing in our communities. We
love when we can inject money directly into our
communities to help them grow and prosper.
SOUTH REGION
Our South Region is led by Rhonda Joyce and
includes Greensboro, which was named our North
Carolina banking headquarters; Winston-Salem; and
Martinsville.
Greensboro
In this bustling corner of the Triad, we’ve stayed active
in many community events, with Rhonda co-chairing
the state competition, Freebird is now a candidate for
the Habitat for Humanity Bankers Build as well as
National Teacher of the Year. It’s our distinct pleasure
participating in the Simple Gesture program to help
to help support those who are creating our next
fight hunger. Our Chief Banking Officer, Gregg Strader,
generation.
chaired the United Way of Greater Greensboro’s
Board of Directors for a second year. Gregg has been
The city of Mebane completed the construction of a
instrumental in leading American National’s support of
highly anticipated new community park in November
the United Way and helping them achieve their mission
2018. We were proud to be involved with financing
of improving lives and creating thriving communities.
this great community asset as it helps create another
attraction for the charming and fast-growing Mebane
AMNB’s Winston-Salem location coming soon!
Martinsville
While Martinsville has long been known for its exciting
short track, which we love, we’ve also enjoyed
supporting some of its newly established community
events as well. The Rooster Walk is one of the
events growing in popularity that is playing a part in
Guilford banker Andrea Davis presenting bags of donated food
to A Simple Gesture
Winston-Salem
2018 marked the first full year of operation for our de
novo Winston-Salem banking office and validated
the need for an updated space, which we began
renovating in 2018 under the leadership of Market
we look forward to
becoming more visible
in this great city
President Trent Wall. After establishing ourselves
and serving customers from an office space with no
City of Mebane Community Park
Volunteers at the Habitat for Humanity Bankers Build
signage, we are excited to become significantly more
Rooster Walk Kids Area sponsorship
visible in the community. With 9,800-square-feet, the
new space is in a vibrant part of the city and will offer
reinventing Martinsville. As sponsor of the children’s
full-service banking with a drive-thru and ATM. The
area, we helped create a fun event for families to
opening is planned for the third quarter of 2019, and
enjoy during the multi-day music and art festival
we are looking forward to becoming a bigger, better,
each spring.
and stronger part of this great city.
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7
Future and Focus
Guiding Principles:
Core Values:
1. Operate a sound, efficient, growing, and highly
1. Build personal relationships based on honesty
profitable company.
and integrity.
2. Identify and respond to our internal and external
customers’ needs and expectations in an ever-
changing financial environment.
3. Provide 21st-century financial solutions to
our customers that are designed to meet their
current and future needs.
2. Treat people fairly and speak with candor and
care.
3. Develop people to their highest potential.
4. Coach for improved performance.
5. Show a passion for winning.
4. Provide an attractive return for our shareholders.
6. Act like business owners.
5. Furnish positive leadership for the well-being of
7. Celebrate individual and team successes often.
all the communities we serve.
6. Continuously develop a challenging and
rewarding work environment for our employees
that focuses on working as a team.
7. Conduct our work with integrity and
professionalism.
8. Communicate with strategic purpose and aim
for consistency.
9. Hold ourselves and our teammates accountable
for results.
10. Always use good, sound judgment when
engaging with customers and seek help with
decisions when we are uncomfortable.
OUR MISSION:
We provide quality financial services with
exceptional customer service.
OUR VISION:
We will enhance the value of our shareholders’
investment by being our communities’ preferred
provider of relationship-based financial services.
8
9
9
Leadership
Our Executive Leadership
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
American National Bankshares Inc. and
American National Bank & Trust Company
Edward C. Martin
Executive Vice President
Chief Credit Officer
John H. Settle, Jr.
Executive Vice President
President of Trust and
Investment Services
Charles Canaday, Jr.
Executive Vice President
Regional President,
East Region
Rhonda P. Joyce
Executive Vice President
Regional President,
South Region
Kevin S. Meade
Executive Vice President
Regional President,
North Region
Board of Directors
Fred A. Blair
President
Blair Construction Inc.
Director since 1992
Committees 1, 5, 6
Michael P. Haley
Retired Advisor
Fenway Partners
Director since 2002
Committees 1, 2, 4, 6, 8
Frank C. Crist Jr., D.D.S.
President
Brady & Crist Dentists Inc.
Director since 2006
Committees 3, 6, 7
Charles S. Harris
Executive Vice President
Averett University
Director since 2008
Committees 1, 5, 6
Franklin W. Maddux, M.D.
Chief Medical Officer
Executive Vice President
for Clinical &
Scientific Affairs
Fresenius Medical Care
North America
Director since 2002
Committees 3, 5, 6
Charles H. Majors
Chairman of the Board
American National
Bankshares Inc.
American National Bank
& Trust Company
Director since 1981
Committee 7
Ronda M. Penn
Chief Financial Officer
Plexus Capital LLC
Director since 2015
Committees 1, 4, 6
Dan M. Pleasant
Chief Operating
Officer
The Dewberry
Companies Inc.
Director since 2011
Committees 4, 6, 8
Joel R. Shepherd
President
Virginia Home
Furnishings Inc.
220 Self Storage Inc.
Director since 2015
Committees 2, 3, 6, 8
F. D. Hornaday III
President & Chief
Executive Officer
Knit Wear Fabrics Inc.
Director since 2011
Committees 3, 6, 7
John H. Love
President & Chief
Executive Officer
W. E. Love & Associates Inc.
Director since 2011
Committees 4, 5, 6
Claude B. Owen Jr.
Retired Chairman &
Chief Executive Officer
DIMON Inc.
Director since 1984
Committees 2, 3, 6, 8
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
Committees
Tammy M. Finley
Executive Vice President
and General Counsel
Advance Auto Parts, Inc.
Director since 2017
Committee 4, 5, 6
Jeffrey V. Haley
President & Chief
Executive Officer
American National
Bankshares Inc.
American National Bank
& Trust Company
Director since 2010
Committee 7
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North Carolina
Advisory Board
Members:
Advisory Boards
(as of January 1, 2018)
Thomas E. Chandler Jr.
President
Chandler Concrete
Company Inc.
Diane M. Rumley, CPA
Partner
Leeper, Kean & Rumley LLP
Tammy B. Jewell
Business Manager
Jewell Machinery, Inc.
Adrian T. Smith
Chief Executive Officer
Ice Age Management
Sherri K. Squier
Chief Executive Officer
All-State Express, Inc.
Richard H. Jones
CPA
Jones & Associates
Harry G. Norris
President
Howell’s Motor Freight
Danny M. Purdue
Vice President
Perdue Properties Inc.
Earnest C. Jordan
Retired Senior Vice President
American National Bank
& Trust Company
Keith Robinson, M.D.
Physician
Complexions Dermatology
James B. Crouch Jr.
Vice President
Harris, Crouch, Long, Scott
& Miller Inc.
Kyle M. Winslow
Vice President
Briggs-Shaffner Acquisition
Company
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
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
Virginia Advisory
Board Members:
W. Kelvin Bowles
President & Owner
Eastern Communications
Associates
Thomas C. Capps
President
Capps Shoe Company Inc.
James D. Coleman Jr.
President
Rives Brown Realty
Nicholas C. Conte
SVP and General Counsel
Carilion Clinic
John M. Deekens
Retired General Manager
Stuart Forest Products
S. Cabell Dudley Jr.
Retired Executive
Vice President
American National Bank
& Trust Company
Harold E. Green Jr.
President
Distinct Impressions Inc.
Brian J. Kelleher
President
Atlantic Precision
Resources Inc.
Andy C. Kelderhouse
President
Fralin & Waldron, Inc.
John H. Laramore
Realtor
Wilkins and Co. Realtors
John D. Lugar
President
Virginia Varsity Transfer &
Storage
Lauren M. Mathena
Director of Economic
Development and
Community Engagement
Mid-Atlantic Broadband
Communities Corp.
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 Family Dentistry
Stephen A. Musselwhite
President
Musselwhite & Associates
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
11
2018 Charley Majors Achievement Award Recipient: Lisa Pass
Financials
FINANCIAL HIG HL IGHTS
as of December 31 (Dollars in thousands, except for share data)
Lisa’s dedication and work ethic have been highly
visible throughout our merger with Franklin Community
Bank, where she mentored new staff and set the
example of how to deliver excellent customer service.
Because of her strengths as a manager and leader,
Lisa will also be assisting our newest team members
throughout this year’s merger with HomeTown Bank.
Another shining example of her commitment to service
is the leadership role she informally took in a complex
Each year, one exceptional American National
branch operational project involving routing and
employee is selected to receive the Charley Majors
transit number conversion. Lisa quickly established a
Award in honor of our Chairman and retired Chief
Executive Officer. Established in 2014, this award
is presented to an individual who best exemplifies
process and set of simple strategies to complete the
necessary tasks. As a result, the Cum Park office was
the first to complete their portion of the project, and
American National’s Core Values. The recipient must
the strategies Lisa developed were put into use at
possess an exceptional degree of character, high
other branches.
levels of personal integrity, and a sense of service that
goes above and beyond expectations.
In addition to her leadership role at American National,
Lisa is highly active in her community, volunteering
This year we are proud to present the Charley Majors
with Everfi for four years as well as partnering with
Award to Lisa Pass, Manager of the Cum Park branch
Cummings High School to teach financial literacy to
in Burlington. Lisa has been with the bank since 2004,
high school teenagers.
having started her career with MidCarolina Bank,
which was acquired by American National in 2012.
In the words of her manager, Matt Blake, “Lisa’s
As she has advanced in her career, Lisa has become
leadership, teamwork and customer focus are her
adept at all aspects of branch management from start
greatest components of success. She makes sure that
to finish.
everyone around her — both our customers as well as
her fellow employees — know that they are valued and
“To say Lisa Pass is a self-starter would be a major
really matter.”
understatement,” says Charles Canaday, Jr., Executive
Vice President. “She is a natural leader who plans
On behalf of everyone at American National, we would
a path ahead of schedule and sets a well-defined
direction that is very clear for the entire team to
like to extend our heartfelt congratulations to Lisa for
receiving the 2018 Charley Majors Award and wish her
follow. Above all else, she simply knows how to get
continued success in her important role at American
things done!”
National Bank & Trust Company.
RESULTS OF OPERATIONS:
Interest income
Interest expense
Net interest income
Provision for (recovery of) 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
2018
2017
2016
2015
2014
$68,768
9,674
59,094
(103)
13,274
44,246
28,225
5,646
22,579
$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
$1,862,866
1,357,476
339,730
1,566,227
222,542
177,744
$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
$2.60
2.59
1.00
25.52
20.38
$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
Average shares outstanding, basic
Average shares outstanding, diluted
8,698,014
8,708,462
8,641,717
8,660,628
8,611,507
8,621,241
8,680,502
8,688,450
7,867,198
7,877,576
SELECTED RATIOS:
Return on average assets
Return on average equity
Return on average tangible equity
Dividend payout ratio
Efficiency ratio
Net interest margin
ASSET QUALITY RATIOS:
1.24%
10.56%
13.49%
38.54%
59.57%
3.49%
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%
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
0.94%
1,101.98%
0.11%
0.05%
1.02%
531.37%
0.21%
0.02%
1.10%
360.39%
0.29%
0.00%
1.25%
242.09%
0.48%
0.08%
1.48%
302.21%
0.46%
0.07%
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 ratio
15.35%
12.55%
14.46%
11.62%
9.78%
14.39%
11.50%
13.42%
10.95%
9.24%
14.81%
11.77%
13.83%
11.67%
9.54%
16.35%
12.88%
15.23%
12.05%
10.08%
17.68%
n/a
16.59%
12.16%
10.00%
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2018
CON S OLIDATED BALANCE SHEETS
as of December 31 (Dollars in thousands, except for share data)
CONSOLIDATED STATEMENTS O F INCOME
as of December 31 (Dollars in thousands, except for share data)
ASSETS:
Cash and due from banks
Interest bearing deposits in other banks
Equity securities, at fair value
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 $109 in 2018 and $147 in 2017
Goodwill
Core deposit intangibles, net
Bank owned life insurance
Accrued interest receivable and other assets
Total Assets
LIABILITIES AND SHAREHOLDERS’ EQUITY:
LIABILITIES:
Demand deposits — non-interest bearing
Demand deposits — interest bearing
Money market deposits
Savings deposits
Time deposits
Total deposits
Short-term borrowings:
Customer repurchase agreements
Other short-term borrowings
Junior subordinated debt
Accrued interest payable and other liabilities
Total liabilities
Commitments and Contingencies
2018
$29,587
34,668
1,830
332,653
5,247
640
1,357,476
(12,805)
1,344,671
26,675
869
43,872
926
18,941
22,287
$1,862,866
$435,828
234,621
401,461
132,360
361,957
1,566,227
35,243
0
27,927
10,927
1,640,324
2017
$28,594
23,883
0
321,337
6,110
1,639
1,336,125
(13,603)
1,322,522
25,901
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
SHAREHOLDERS’ EQUITY
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding
Common stock, $1 par, 20,000,000 shares authorized,
8,720,337 shares outstanding at December 31, 2018 and
8,650,547 shares outstanding at December 31, 2017
Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss, net
Total shareholders’ equity
Total liabilities and shareholders’ equity
0
0
8,668
78,172
141,537
(5,835)
222,542
$1,862,866
8,604
76,179
127,010
(3,076)
208,717
$1,816,078
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 junior subordinated debt
Total interest expense
NET INTEREST INCOME
Provision for (recovery of) loan losses
2018
$59,966
6,106
1,502
321
873
68,768
8,086
186
0
1,402
9,674
59,094
(103)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES:
59,197
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 NON-INTEREST EXPENSE
Income Before Income Taxes
Income Taxes
NET INCOME
NET INCOME PER COMMON SHARE:
Basic
Diluted
AVERAGE COMMON SHARES OUTSTANDING:
Basic
Diluted
3,783
2,455
2,637
1,862
123
795
637
60
922
13,274
20,509
4,370
4,378
537
1,054
265
1,691
1,279
122
872
9,169
44,246
28,225
5,646
$22,579
$2.60
$2.59
2017
$55,276
4,666
2,043
319
734
63,038
5,794
173
296
1,028
7,291
55,747
1,016
54,731
3,926
2,426
2,471
2,208
812
829
236
344
975
14,227
19,829
4,274
4,487
538
1,072
528
2,014
1,144
303
0
8,694
42,883
26,075
10,826
$15,249
$1.76
$1.76
2016
$47,971
4,454
3,135
334
276
56,170
5,103
10
325
878
6,316
49,854
250
49,604
3,791
2,467
2,261
1,713
836
843
463
(9)
1,140
13,505
17,568
3,829
4,246
647
995
964
1,828
1,143
336
0
8,245
39,801
23,308
7,007
$16,301
$1.89
$1.89
8,698,014
8,708,462
8,641,717
8,660,628
8,611,507
8,621,241
14
15
Shareholder Information
Branch Locations
Annual Meeting
The 2018 Annual Meeting of Shareholders of
Equal Opportunity Employer
American National Bank & Trust Company, a
American National Bankshares Inc. will be held
wholly owned subsidiary of American National
on Tuesday, May 21, 2019, at 9 a.m. (EDT) at The
Bankshares Inc., is an equal opportunity employer.
Wednesday Club, 1002 Main Street, Danville, VA.
All matters regarding recruiting, hiring, training,
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
compensation, benefits, promotions, transfers and
all other personnel policies will remain free from
discriminatory practices.
This Report
The American National Bankshares Inc. 2018
Summary Annual Report is presented in a summary
format to provide information regarding the
transfer requirements, lost certificates,
performance of the Company in a manner that
dividends, the dividend retirement plan and other
is meaningful and useful to the widest range
shareholder matters may contact:
of readers. The audited consolidated financial
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
PO Box 1320 (23218)
Richmond, VA 23219
16
statements of the Company and other more detailed
analytical information regarding the Company are
contained in the 2018 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
Virginia
DANVILLE
(Bank & Company
headquarters)
BEDFORD
CHATHAM
CHRISTIANSBURG
GRETNA
LYNCHBURG
MARTINSVILLE
RIDGEWAY
North Carolina
ROANOKE
(VA Banking headquarters)
BURLINGTON
GRAHAM
ROCKY MOUNT
SALEM
SOUTH BOSTON
UNION HALL
GREENSBORO
(NC Banking headquarters)
MEBANE
WINSTON-SALEM
YANCEYVILLE
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.
Bigger. Better. Stronger. Together.
(800) 240-8190 I www.amnb.com