SUMMARY ANNUAL REPORT 2019 CONTENTS 110 YEARS & GROWING Map of our Footprint SHAREHOLDER LETTER From your Chairman and President & CEO OUR COMMUNITIES Regional Impact OUR VALUES & HISTORY Our Growth Over Time 2019 EMPLOYEE RECOGNITIONS P01 P02 P04 P08 P12 Charley Majors Achievement Award & Bill Traynham Outstanding Service Award FINANCIALS Historical Highlights, Balance Sheet, Income Statement OUR LEADERSHIP Executive Leadership, Board of Directors and State Banking Board Members SHAREHOLDER INFORMATION P13 P16 P18 110 YEARS & GROWING American National Bank & Trust Company may be over 110 years old, and we believe that while our century+ ideas, and always pushing ourselves to be better than the day before. In our 111th year, we are poised to continue with our legacy of strength history matters, we understand that for the benefit of our employees, we earn our customers’ business by our customers, our communities looking forward, embracing fresh and you, our shareholders. 1 TO OUR SHAREHOLDERS 2019 marked 110 years for American National and it may be one of our most significant Results for 2019 include the impact of merger- due to his transition to a new role with years to date. Our many accomplishments in 2019 position us well for continued success. We followed the same strategic blueprint that has made us a top-performing community bank throughout our years – balancing disciplined expansion in key markets with superb asset quality while making sure we are exceeding the expectations of the people and communities we serve. Part of our expansion included growing our presence in Roanoke and the New River Valley with our acquisition of HomeTown Bankshares that was completed on April 1, 2019. The integration of HomeTown Bank was extremely successful thanks to the hard work of our dedicated employees, as we added five new bank branches and converted thousands This activity all contributed to our balance sheet growth, ending the year with a total of $2.48 billion in total assets. We ended the year with $2.06 billion in total deposits versus $1.57 billion in 2018 and $1.83 billion in loans, compared to $1.36 billion in 2018. With this deliberate balance sheet growth, we continue to maintain a strong capital position and of customers to our banking platform. This excellent asset quality. deal makes American National Bank & Trust Company the largest community bank in the Roanoke market. Our net income for the year was $20.9 million, compared to $22.6 million in 2018. On top of the HomeTown acquisition, we also opened our full-service banking office in Winston-Salem in September, which greatly heightens our visibility in a market where our model has proven successful. And as a finale to 2019, we hired a strong team of seasoned bankers at the end of the year to expand into the Triangle market in North Carolina. In our eleventh market, this team has hit the ground running and we look forward to their many contributions to our company. related costs of $11.8 million associated with Fresenius Medical Care. His expertise on the HomeTown acquisition. We also began an our Board will undoubtedly be missed and active stock repurchase program, providing an additional outlet, when appropriate, to efficiently manage our capital. we thank Dr. Maddux for his 17 years of valuable service to our board and our company. We are proud of our heritage and pleased with where we are positioned today. While our century-plus history matters, we will continue to look forward and push ourselves to be better than the day before. Your support is what allows us to continue to serve our customers and strengthen our communities as we enter the next decade. Very truly yours, Chairman of the Board President & Chief Executive Officer The accomplishments of this past year and the growth we saw as a company would not happen without the people and teams we have in place. We cannot say enough about the great team of people at American National, as they really are our greatest asset. We have attracted the best around to help successfully carry out our strategic plans. In addition to our strong team of employees, we are so fortunate to have the diverse exper- tise of our committed Board of Directors. Our directors are very engaged in the strategic di- rection and policy management of the compa- ny and do an outstanding job of representing you, our shareholders. Unfortunately, we had to accept a couple resignations for various reasons. One was the medical retirement of William (Bill) Traynham, Executive Vice President and Chief Financial Officer of the bank and the company. In his ten years with us, Bill helped our company such tremendously, particularly during critical periods in the bank’s growth and we wish him well. In addition, Dr. Frank Maddux resigned from our Board of Directors 2 3 NORTH REGION Markets: Roanoke, New River Valley, Lynchburg, Franklin County On a more grassroots level, you could find us running in 5Ks, hosting shred days, sponsoring little league teams and minor league ball parks or donating meals to Lynchburg families to enjoy during the holidays. And we love it all. The North Region saw tremendous growth as it integrated HomeTown Bank. This deal also helped us expand further into the New River Valley, a market with a lot of opportunity. With a larger branch network and a quality team of bankers serving the area, we are now the largest community bank in the Roanoke Region. We have proudly accepted this new leadership role by continuing to serve our area businesses, supporting locally-oriented not-for-profit organizations, and spreading financial education to various populations. A few notable things we have been a part of in 2019 were the Junior Achievement Business Hall of Fame, an annual fundraising dinner where local business leaders are recognized for their professional accomplishments and contributions. We were proud to have a couple of our customers recognized this year, including Virginia State Banking Board member, John Lugar of Virginia Varsity Transfer. EAST REGION Markets: Danville South Boston Alamance County We also stayed quite active supporting our communities in our East Region. You can find us educating seniors about scams targeting older populations, throwing birthday parties for our centenarian customers (check out the three photos included in this report), walking in the Heart Walk, or sponsoring the Carousel Festival in Burlington (and that’s the short list). We particularly enjoy it when our community support takes place inside one of our offices. And this year’s Graham Parade of Homes did just that. With this event, Kindergarten classes design homes based on themes of books they are reading. The creative homes were on display in our Graham Branch and the community is invited to vote on their favorite design. OUR COMMUNITIES MAKING A DIFFERENCE ACROSS OUR FOOTPRINT 2019 added a couple of new markets to our growing footprint. We now operate in 11 markets that are part of three regions surrounding Danville, Virginia, our bank’s headquarters since 1909. leadership and characteristics, with all Each of our eleven markets have their own stability of our communities and the growth of them successfully contributing to the supporting our communities. In 2019, American National launched an employee matching campaign which generated of our company. But across our footprint, we over $38,000 to local health and human service share a commitment to financial education and organizations. 4 5 SOUTH REGION Markets: Greensboro, Winston-Salem, Martinsville The highlight in our South Region was the highly anticipated opening of our Winston-Salem office, located at 22 Miller Street, as we expanded our presence in the Triad. In addition to having a location with more square footage in a high-traffic area, the new space offers full-service banking including a drive- thru and a 24-hour ATM. The office opened in September and marked the occasion with a ribbon cutting on September 25. The Winston-Salem Team has remained visible in many ways outside their new office by supporting the Ronald McDonald House of Winston-Salem Character Breakfast as well as the Kaleideum Trunk or Treat, where our Kids’ Club mascot, Homer, made special appearances. Nearby in Martinsville, we played a part in attracting a U.K.-based metals company to Ridgeway, where they will operate in a former clock factory. We also enjoyed being part of Martinsville’s annual Rooster Walk Festival as the Childrens’ Area sponsor. OUR FINANCIAL EDUCATION EFFORTS REACHED OVER 2,656 STUDENTS AT 18 SCHOOLS 11,607 HOURS OF FINANCIAL EDUCATION THROUGH AMERICAN NATIONAL- SPONSORED PROGRAMS REPORTED IN 2019 BY AMNB EMPLOYEES 607 VOLUNTEER HOURS 278 NON-PROFITS RECEIVED SUPPORT FROM AMNB $38,397 DONATED TO LOCAL HEALTH & HUMAN SERVICE ORGANIZATIONS FROM OUR 2019 EMPLOYEE MATCH CAMPAIGN 6 7 OUR VISION & VALUES We will be the best provider of relationship-based financial services in the communities we serve, resulting in enhanced shareholder value, organic franchise growth, stronger customer loyalty and higher employee engagement. Build personal relationships based on honesty and integrity | Treat people fairly and speak with candor and care | Develop people to their highest potential | Coach for improved performance | Show a passion for winning | Act like business owners | Celebrate individual and team successes often | Communicate with strategic purpose and aim for consistency | Hold ourselves and our teammates accountable for results | Always use good, sound judgment when engaging with customers 8 9 Trust Added The Trust Department was organized to offer Trust Services Name Changed to American National Bank and Trust Company Opening Day American National Bank of Danville opened its doors on First Drive-Thru in Virginia opened in 1948 at our first branch February 17, 1909 Stock Market Crash office in Danville OUR HISTORY GROWTH OVER THE DECADES added to Russell 2000 Index James A. Motley named President American National Bankshares Inc. was organized on September 1, 1984 NEW 24-hour ATMs installed in 1984 Acquired Lynchburg-based Community First Bank Expanded to South Boston & Ridgeway Jeffrey V. Haley named Launched Online Banking President & CEO launched mobile banking app $1.3B 6 markets $1.5B 7 markets $2.5B 11 markets $1.8B 9 markets 1909 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2011 2012 2013 2014 2015 2016 2017 2018 “Character Loan” introduced to help Danville residents out of Depression (similar to today’s installment loan) $100K capital $4.6M 1 market $25M 1 market 10 $809M 4 markets The Bank expanded into North Carolina by acquiring MidCarolina Bank, adding offices in Graham, Burlington, Mebane and Greensboro $571M 4 markets Charles H. Majors named President AMNB listed on NASDAQ American National completes first merger (Mutual Savings Bank) Bank expands to Gretna, Chatham Yanceyville, & Martinsville $ asset and market growth New Home Office opened at 628 Main Street in Danville where it remains today $88M 1 market American National launched a de novo banking presence in both Roanoke, VA and Winston-Salem, NC American National acquired Franklin Community Bank in Franklin County with offices in Rocky Mount and Smith Mountain Lake 11 2019 AMNB acquired HomeTown Bank, further growing its market share in Roanoke and the New River Valley Expanded to the Triangle market (Raleigh, NC) with a de novo banking presence EMPLOYEE AWARDS FINANCIAL HIGHLIGHTS for the year ended December 31 (Dollars in thousands except for share and per share data) 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 2019 2018 2017 2016 2015 $92,855 15,728 77,127 456 15,170 66,074 25,767 4,861 20,906 $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 $2,478,550 1,830,815 387,825 2,060,547 320,258 228,528 $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 $1.99 1.98 1.04 28.93 20.64 $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 Average common shares outstanding, basic Average common shares outstanding, diluted 10,531,572 10,541,337 8,698,014 8,708,462 8,641,717 8,660,628 8,611,507 8,621,241 8,680,502 8,688,450 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 0.91% 7.16% 10.43% 52.45% 57.25% 3.68% 1.24% 10.56% 13.49% 38.54% 59.20% 3.49% 0.87% 7.34% 9.59% 54.98% 60.14% 3.50% 1.02% 8.07% 10.85% 50.71% 59.97% 3.52% 0.99% 7.65% 10.62% 53.65% 61.93% 3.69% 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 0.72% 570.59% 0.15% 0.01% 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% 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 14.04% 11.56% 12.98% 10.75% 9.57% 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% 16.34% 12.88% 15.23% 12.05% 10.08% JENNY KRANTZ Bill Traynham Outstanding Service Award Recipient MARY BRIDGES-HICKS Charley Majors Achievement Award Recipient This award was established to recognize With over 350 employees who come to a person for demonstrating outstanding work each day ready to give the best of service, aptly named after our former themselves, this is always a competitive Chief Financial Officer, Bill Traynham, award with an impressive list of peer- following his ten valuable years of service. nominated employees. Our inaugural recipient is Jennifer (Jenny) This year’s recipient of the Charley Majors Krantz. Jenny is someone who gets in the Outstanding Employee Award, Mary trenches and works tirelessly to ensure Bridges-Hicks, is truly one of the best of our employees have what they need to do the best. their job. She continually gives her time to find solutions to difficult problems, Mary is an experienced banker with whether working late hours or fielding an infectious personality and a can-do external and internal customer calls – she spirit. When speaking on the phone with always goes above and beyond to ensure her, you can feel her smile on the other that we are operationally sound. end. She meets adversity head on and is not afraid to tackle hard problems. With a can-do spirit, Jenny does not get Mary played a key role in the merger easily rattled and does not give up until activities, especially post-merger, with the jobs are complete. We appreciate this transition of the HomeTown Bank loan hard-working bright light within our bank. portfolio. We can’t thank her enough for her many contributions to the bank. 12 13 BALANCE SHEET for the year ended December 31 (Dollars in thousands except for share and per share data) STATEMENT OF INCOME for the year ended December 31 (Dollars in thousands except for share and per share data) 2018 2019 2018 $32,505 47,077 0 379,195 8,630 2,027 $29,587 34,668 1,830 332,653 5,247 640 1,830,815 (13,152) 1,817,663 39,848 1,308 84,002 7,728 27,817 30,750 $2,478,550 1,357,476 (12,805) 1,344,671 26,675 869 43,872 926 18,941 22,287 $1,862,866 $578,606 328,015 504,651 177,505 471,770 2,060,547 40,475 7,517 28,029 21,724 2,158,292 $435,828 234,621 401,461 132,360 361,957 1,566,227 35,243 0 27,927 10,927 1,640,324 0 0 11,019 158,244 151,478 (483) 320,258 $2,478,550 8,668 78,172 141,537 (5,835) 222,542 $1,862,866 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 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 Subordinated debt Junior subordinated debt Accrued interest payable and other liabilities Total liabilities Commitments and Contingencies SHAREHOLDERS’ EQUITY Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding Common stock, $1 par, 20,000,000 shares authorized, 11,071,540 shares outstanding at December 31, 2019 and 8,720,337 shares outstanding at December 31, 2018 Capital in excess of par value Retained earnings Accumulated other comprehensive loss, net Total shareholders’ equity Total liabilities and shareholders’ equity 14 2019 2018 2017 $82,684 $59,966 $55,276 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 subordinated debt Interest on junior subordinated debt Total interest expense NET INTEREST INCOME Provision for (recovery of) loan losses Net interest income after provision for (recovery of) 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 7,682 777 451 1,261 92,855 13,143 650 14 367 1,554 15,728 77,127 456 76,671 3,847 2,866 3,693 2,439 607 721 211 (427) 1,213 15,170 24,672 5,343 5,417 119 1,644 1,398 2,567 1,295 31 11,782 11,806 66,074 25,767 4,861 $20,906 $1.99 $1.98 10,531,572 10,541,337 15 6,106 1,502 321 873 68,768 8,086 186 0 0 1,402 9,674 59,094 (103) 59,197 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 8,698,014 8,708,462 4,666 2,043 319 734 63,038 5,794 173 296 0 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 8,641,717 8,660,628 OUR LEADERSHIP EXECUTIVE LEADERSHIP American National Bankshares Inc. and American National Bank & Trust Company Jeffrey V. Haley President Chief Executive Officer Jeffrey W. Farrar Executive Vice President, Chief Financial Officer & Chief Operating Officer H. Gregg Strader Executive Vice President Chief Banking Officer Edward C. Martin Executive Vice President Chief Credit Officer Charles T. 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 John H. Settle, Jr. Executive Vice President President of Wealth Management BOARD OF DIRECTORS Michael P. Haley Nancy Howell Agee Retired Advisor President & CEO Fenway Partners, LLC Carilion Clinic Director since 2002 Director since 2019 Committees 1, 2 ,3, 5, 7 Committees 2, 4, 7 Kenneth S. Bowling Vice President H.T. Bowling, Inc. Director since 2019 Committees 1, 6, 7 Charles S. Harris Executive Vice President Averett University Director since 2008 Committees 1, 6, 7 Tammy Moss Finley Executive Vice President and General Counsel Advance Auto Parts, Inc. Director since 2017 Committee 5, 6, 7 F. D. Hornaday III President & Chief Executive Officer Knit Wear Fabrics, Inc. Director since 2011 Committees 4, 7, 8 Jeffrey V. Haley President & Chief Executive Officer American National Bankshares Inc. American National Bank & Trust Company Director since 2012 Committee 8 John H. Love President & Chief Operating Officer W. E. Love & Associates, LLC Director since 2011 Committees 5, 6, 7 Franklin W. Maddux, M.D. Global Chief Medical Officer Fresenius Medical Care North America Director from 2002 - 2019 Committees 4, 6, 7 Charles H. Majors Chairman of the Board American National Bankshares Inc. American National Bank & Trust Company Director since 1981 Committee 8 Claude B. Owen Jr. Retired Chairman & Chief Executive Officer DIMON Inc. Director since 1984 Committees 1, 2, 3, 4, 7 Ronda M. Penn Chief Financial Officer Plexus Capital LLC Director since 2015 Committees 1, 5, 7 16 BOARD COMMITTEES 1. Audit 2. Capital Management 3. Chief Executive’s Advisory 4. Corporate Governance and Nominating 5. Human Resources and Compensation 6. Risk and Compliance 7. Stock Grant and Option 8. Trust Dan M. Pleasant Chief OperatingOfficer The Dewberry Companies Inc. Director since 2011 Committees 2, 3, 5, 7 Joel R. Shepherd President Virginia Home Furnishings Inc. 220 Self Storage Inc. Director since 2015 Committees 2, 3, 4, 7 Susan K. Still Retired President & CEO HomeTown Bank Director since 2019 Committees 6, 8 DIRECTOR EMERITUS Fred A. Blair Chairman Blair Construction Inc. Frank C. Crist Jr., D.D.S. President Brady & Crist Dentists Inc. STATE BANKING BOARD MEMBERS VIRGINIA Rickey J. Barker President Supply Resource Danville William R. Rakes Senior Counsel Gentry-Locke Attorneys Roanoke Nathaniel L. Bishop Sr. Associate Dean Virginia Tech Carilion School of Medicine Christiansburg J. Brian Burton President J. E. Burton Construction South Boston Deama P. Stone Attorney Rhodes, Ferguson & Stone Rocky Mount Thomas S. Stump President & Chief Executive Officer First Piedmont Corp. Chatham William C. Vaughn Vice President J&R Management Inc. Martinsville Barton J. Wilner President and Owner Entre Computer Center Roanoke Timothy J. Clark President Blair Construction Inc. Gretna William J. Farrell, II President Berglund Automotive Group Roanoke Daniel D. Hamrick Attorney Hamrick Law Christiansburg John D. Lugar President Virginia Varsity Transfer & Storage Roanoke NORTH CAROLINA Dr. Yun L. Boylston Physician Burlington Pediatrics Burlington Thomas E. Chandler, Jr. President Chandler Concrete Company Inc. Burlington James B. Crouch, Jr. Partner Harris, Crouch Burlington J. Nathan Duggins, III Managing Partner Tuggle Duggins P.A. Greensboro R. Aubrey Linville, III Partner Linville Team Partners Winston-Salem Richard H. Ramsey Partner New Page Capital Greensboro Adrian T. Smith Chief Executive Officer Ice Age Management Greensboro Stephen T. Williams, Jr. Williams Development Group Winston-Salem Back Row, L to R Jeffrey Haley Claude Owen Fred Blair Charles Harris Charles Majors Kenneth Bowling Joel Shepherd Ronda Penn Frank Crist Front Row L to R F. D. Hornaday Nancy Agee Frank Maddux Dan Pleasant Susan Still Tammy Finley Not Pictured: John Love Michael Haley 17 SHAREHOLDER INFORMATION Annual Meeting The 2020 Annual Meeting of Shareholders of Equal Opportunity Employer American National Bank & Trust Company, a American National Bankshares Inc. will be held at wholly-owned subsidiary of American National our main office board room at 628 Main Street in Bankshares Inc., is an equal opportunity employer. Danville, Virginia 24541 on Tuesday, May 19, 2020, All matters regarding recruiting, hiring, training, at 9 a.m. (EDT). Stock Listing The common stock of American National compensation, benefits, promotions, transfers and all other personnel policies will remain free from discriminatory practices. Bankshares Inc. (the “Company”) is traded on the NASDAQ Global Select Market under the symbol This Report The American National Bankshares Inc. 2019 “AMNB.” Summary Annual Report is presented in a summary format to provide information regarding the Shareholder Inquiries Shareholders needing information on stock transfer performance of the Company in a manner that is meaningful and useful to the widest range requirements, lost certificates, dividends, the of readers. The audited consolidated financial dividend reinvestment plan and other shareholder statements of the Company and other more 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 PO Box 1320 (23218) Richmond, VA 23219 detailed analytical information regarding the Company are contained in the 2019 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 18 amnb.com | (800) 240-8190 MEMBER FDIC | EQUAL HOUSING LENDER 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. 110 Y EARS & GROWIN G