2 0 2 1 SUMMARY
ANNUAL REPORT
The 2021 Summary Annual Report is in memory of Jim Motley,
President of American National Bank from 1980 – 1992
James A. Motley
(1928 – 2021)
FORWARD LOOKING STATEMENTS
Statements made in this Summary Annual Report, other than those concerning historical financial information, may
be considered forward-looking statements, which speak only as of the date of this release and are based on current
expectations and involve a number of assumptions. American National intends such forward-looking statements to
be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation
Reform Act of 1995 and is included in this statement for purposes of these safe harbor provisions. American National’s
ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could
have a material effect on the operations and future prospects of American National include but are not limited to: (1)
the impacts of the ongoing COVID-19 pandemic and the associated efforts to limit the spread of the virus; (2) expected
revenue synergies and cost savings from acquisitions and depositions; (3) changes in interest rates, general economic
conditions, legislation and regulation, and monetary and fiscal policies of the U.S. government, including policies of the
U.S. Treasury, Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System; (4)
the quality and composition of the loan and securities portfolios, demand for loan products, deposit flows, competition,
and demand for financial services in American National’s market areas; (5) the adequacy of the level of the allowance for
loan losses, the amount of loan loss provisions required in future quarters, and the failure of assumptions underlying the
allowance for loan losses; (6) cybersecurity threats or attacks, the implementation of new technologies, and the ability
to develop and maintain secure and reliable electronic systems; (7) accounting principles, policies, and guidelines; and
(8) other risk factors detailed from time to time in filings made by American National with the Securities and Exchange
Commission. American National undertakes no obligation to update or clarify these forward-looking statements, whether
as a result of new information, future events or otherwise.
CONTENTS
Letter to Shareholders
Strategic Initiatives
Living Our Values
Our Board & Leadership
Financial Highlights
Shareholder Information
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TO OUR SHAREHOLDERS
IIn February of this year, we celebrated the 113th birthday of American National. Our
founders and those who followed them managed through many challenges including
World War I, World War II, the Great Depression, and other historical events. We are not
sure if they could have imagined where the bank would be today, or the challenges it’s
faced during the past two years.
In March of 2020, a global pandemic began that impacted our customers and staff in a
profound way. At its onset, we established four goals: (1) to keep our staff safe; (2) to
serve our customers’ needs; (3) to protect the financial performance of the bank; and
finally, (4) to ensure the stock of AMNB continues to perform better than our peers. We
are pleased that each of these goals was achieved, and we feel quite positive about our
position as we move forward.
2021 was an exceptional year for American National. We achieved record earnings
which were largely driven by the Paycheck Protection Program (PPP). Our net income
was $43.5 million in 2021, compared to $30.0 million in 2020, and our return on average
assets was 1.37% compared to 1.08% the prior year. Based on the four goals mentioned
above and looking at both years of the pandemic – 2020 and 2021 – as one reporting
period, our financial performance has been quite strong.
Our success amid an ever-evolving backdrop can only be attributed to our people
– at every level. From the strong team of leaders that helps shape our culture and drive change to those
working directly and indirectly to serve our customers, we are proud of everyone who contributed to our strong
performance – both operationally and financially – during this period. We continued to adapt to the changes in
our industry and beyond. We introduced a new digital banking platform and online customer support center while
remaining flexible and responsive to the needs of our customers and employees.
EARNINGS for 2021 were $4.00 per diluted common share,
compared to $2.73 for 2020
NONINTEREST INCOME was $21.0 million, an increase of
$4.2 million over fiscal 2020
NET LOANS (which excludes PPP loans) increased 7.2%
over 2020
DEPOSITS increased 10.7% over 2020, and CORE DEPOSITS
increased 14.5% year over year
American National’s prior three-year strategic plan expired at the end of 2020. With all the changes happening in
our industry, across our nation and the world, we took our time to undergo a deeper and more comprehensive
process when developing our 2022-2024 strategic plan. The process spanned about a year, working with our Board
and Management teams on its contents. We now have a robust plan to guide us for the next three years, broken
down into five key pillars to direct our focus: (1) maintain strong financial performance; (2) grow our franchise; (3)
enhance the customer experience; (4) achieve operational excellence; and (5) invest in talent and strengthen our
culture of success.
To use a single word to describe our direction – it’s “evolution.” Things are evolving all around us. Not just in
financial services, but in our economy, with our society and the focus on diversity, equity, and inclusion (DE&I)
and environmental, social, and governance (ESG) and with new customer behaviors and changing attitudes in the
workforce. There are different expectations for both customers and employees provoked by the pandemic, and we
are evolving as a company to remain relevant and strong as we work to continue to meet those expectations.
American National is, and has been, fortunate to have dedicated individuals involved at all levels of the
organization. Over the past year, we have lost three such individuals who helped shape who we are today. Jim
Motley was President of the Bank from 1980 to 1992, Landon Wyatt served as a Director from 1965 to 2000 and
Brenda Gibson was employed by American National for 46 years. All three of these people contributed to where we
are today in very meaningful ways, and we are grateful for the time they shared with us.
Together we have served this Company for 41 years. In that time, we’ve never felt more positive about what we
have done and what we have built to move this company forward for our shareholders, our customers, and our
employees. We thank you for your continued support as we propel forward in 2022 and beyond.
Very Truly Yours,
Charley H. Majors
Chairman of the Board
Jeffrey V. Haley
President & CEO
TOTAL ASSETS at December
2021 were $3.3 billion, an
increase of $284.6 million
from the prior year
NON-PERFORMING ASSETS
as a percentage of total
assets were 0.07%, down
from 0.12% for fiscal 2020
TOTAL ASSETS
in billions
$3.3
$3.1
$2.5
$1.8
$1.9
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PROPEL FORWARD
As we witness transformation all around us – in banking and
beyond – we will be active participants. Our foundation is strong;
we will leverage our past success to push through the status quo
and embrace change. We will nurture existing relationships at the
same time we invest in new initiatives and markets to quickly fuel
our growth. Never taking our employees or customers for granted,
we will efficiently adapt to their needs and propel forward.
MAINTAIN
STRONG
FINANCIAL
PERFORMANCE
GROW OUR
FRANCHISE
ENHANCE THE
ACHIEVE
INVEST IN
TALENT &
CUSTOMER
OPERATIONAL
STRENGTHEN
EXPERIENCE
EXCELLENCE
OUR CULTURE
OF SUCCESS
Our new strategic plan contains plenty of
action and we have been busy working on
many initiatives that align with our goals
and values.
Namely, we’ve adopted a DE&I strategic
plan. We are committed to advancing
a culture of belonging, with a focus on
diversity, equity, and inclusion. Not
only do we believe the creation of a
diverse and inclusive climate is the
right thing to do, we believe it’s central
to our success. A workforce that values
varied perspectives helps encourage
innovation and a healthy, open culture
while strengthening connections with
our customers and communities. We
challenge ourselves daily to be and
do better at nurturing the equitable
and inclusive employment experience
necessary for all to succeed and thrive.
We are also embracing environmental,
social and governance (ESG) as we
believe it will become increasingly
central to our industry. We are working
to understand and develop our ESG
strategies now to be sure it’s part of our
culture and we remain ahead of social
or regulatory expectations. As stated,
we take a proactive approach rather
than wait for changes to happen.
These items as well as other initiatives
and focus areas are outlined in our
three-year plan. The plan contains
five pillars to direct our focus (shown
above), but it can also be summed up
in one word: EVOLUTION.
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LIVING OUR VALUES
Left: Our Rocky Mount team donating food to their local United
Way. Above: Roanoke-based EVPs Eddie Martin and Lutheria
Smith presenting TAP with a donation. Below: Martinsville bank-
er, Doreen Fickel reading to Albert Harris E.S. students for the
Virginia Reads One Book program. Right: Our Burlington team
proudly displays their angel gifts at Christmas.
CHARLEY MAJORS ACHIEVEMENT AWARD WINNER
CASEY STOWE, Customer Support Supervisor, assumed a new
leadership role to launch our customer support center and she didn’t
miss a beat. With her leadership, she and her team have successful-
ly handled thousands of customer support requests – both online
and offline – in the first few months of the center’s launch. Casey’s
patient and helpful attitude creates fans among our customers and
teammates with each interaction she has.
BILL TRAYNHAM OUTSTANDING SERVICE AWARD WINNER
JAINA KENT, Digital Solutions Specialist, is known for her superb
service to customers, both internal and external. People value her
can-do attitude and how she goes above and beyond to serve our
customers at a moment’s notice, before hours, and after hours, and
even if its their 5th or 6th time calling. Jaina always answers the
phone with a “smile” and will dig down deep to help you find the
answers you need.
COMMUNITY CHAMPION AWARD WINNER
STETSON FRANKLIN, Danville Relationship Banker, was named
our Community Champion award winner. Stetson proudly attends
many community events and often takes on a leadership role. He
has a passion for volunteering in the community he calls home, as
evident by serving as Kiwanis Club President, team leader in the
Danville Heart Walk, leader in the Community Holiday Meal, as well
as staying active in his church and many other community events.
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BOARD OF DIRECTORS
Charles H. Majors
Chairman of the Board
American National Bankshares Inc.
American National Bank & Trust Company
Director since 1981
Committees 6, 7
Ronda M. Penn
Chief Financial Officer
Plexus Capital, LLC
Director since 2015
Committees 1, 2, 6
Dan M. Pleasant
Chief Operating Officer
The Dewberry Companies Inc.
Director since 2011
Committees 3, 4, 6
Joel R. Shepherd
President
Virginia Home Furnishings, Inc.
220 Self Storage Inc.
Director since 2015
Committees 1, 2, 6
Susan K. Still
Retired President & CEO
HomeTown Bank
Director since 2019
Committees 5, 7
BOARD COMMITTEES
1. Audit
2. Capital Management
3. Corporate Governance
& Nominating
4. Human Resources &
Compensation
5. Risk & Compliance
6. Stock Grant & Options
7. Trust
8. Sub-committee on
Technology
Nancy Howell Agee
President & CEO
Carilion Clinic
Director since 2019
Committees 2, 3, 6
Tammy Moss Finley
Executive Vice President and
General Counsel
Advance Auto Parts, Inc.
Director since 2017
Committees 4, 5, 6, 8
Jeffrey V. Haley
President & CEO
American National Bankshares Inc.
American National Bank & Trust Company
Director since 2012
Committee 7
Michael P. Haley
Retired Advisor
Fenway Partners, LLC
Director since 2002
Committees 1, 2 ,3, 4, 6
Charles S. Harris
Retired Assistant to the President for
External Relations
Averett University
Director since 2008
Committees 1, 5, 6
F. D. Hornaday, III
President & CEO
Knit Wear Fabrics, Inc.
Director since 2011
Committees 3, 6, 7
John H. Love
Retired President & Chief Operating Officer
W. E. Love & Associates, LLC
Director since 2011
Committees 4, 5, 6
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EXECUTIVE
TEAM
AMERICAN NATIONAL
BANKSHARES INC.
AMERICAN NATIONAL
BANK & TRUST COMPANY
Jeffrey V. Haley
President
Chief Executive Officer
Jeffrey W. Farrar
Chief Operating Officer
Chief Financial Officer
Edward C. Martin
Chief Administrative
Officer
AMERICAN NATIONAL BANK & TRUST COMPANY
Rhonda P. Joyce
Co-Head of Banking -
Commercial
Alex Jung
Co-Head of Banking -
Consumer & Financial Services
Mark A. Smith
Chief Credit Officer
Lutheria H. Smith
Chief Human Resources Officer
Charles T. Canaday, Jr.
Regional President
John H. Settle, Jr.
President, Wealth Management
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STATE BANKING
BOARD MEMBERS
Nancy A. Hubbard
University of Lynchburg
Lynchburg
John D. Lugar
Virginia Varsity
Transfer & Storage
Roanoke
Monica T. Monday
Gentry Locke
Attorneys
Martinsville
William C. Vaughn
J&R Management, Inc.
Martinsville
Barton J. Wilner
Entre Computer
Roanoke
VIRGINIA
Rick J. Barker
Supply Resources
Danville
Nathaniel L. Bishop
Virginia Tech Carilion
School of Medicine
Christiansburg
J. Brian Burton
J. E. Burton
Construction
South Boston
Timothy J. Clark
Blair Construction Inc.
Gretna
William J. Farrell, II
Berglund Automotive
Group
Roanoke
Elizabeth K. Hammond
Cobblestone Milk Coop-
erative & Mountain View
Farms of Virginia, LLC
Roanoke
NORTH CAROLINA
Dr. Yun L. Boylston
Burlington Pediatrics
Burlington
R. Aubrey Linville, III
Linville Team Partners
Winston-Salem
Thomas E. Chandler, Jr.
Chandler Concrete
Company Inc.
Burlington
James B. Crouch, Jr.
Harris, Crouch Financial
Burlington
J. Nathan Duggins, III
Tuggle Duggins P.A.
Greensboro
Richard H. Ramsey
New Page Capital
Greensboro
Adrian T. Smith
Ice Age Management
Greensboro
Stephen T. Williams, Jr.
Williams Development
Group
Winston-Salem
FINANCIAL HIGHLIGHTS
for the year ended December 31 (Dollars in thousands except for share and per share data)
NET LOANS
in billions
$1.83
$1.80
$1.93
$1.34
$1.36
CORE DEPOSITS
in billions
$2.54
$2.21
$1.59
$1.15
$1.20
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*excludes PPP loans
NON-PERFORMING ASSETS
TO TOTAL ASSETS
NET INCOME
in millions
$43.5
0.21%
0.11%
0.15% 0.12%
0.07%
$30.0
$22.6
$20.9
$15.2
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2
EARNINGS PER SHARE
diluted
$4.00
COMMON STOCK DIVIDEND
$0.97
$1.00
$1.04
$1.08
$1.09
$2.59
$2.73
$1.76
$1.98
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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
2021
2020
2019
2018
2017
$95,796
5,405
90,391
(2,825)
21,031
59,008
55,239
11,713
43,526
$95,840
12,020
83,820
8,916
16,843
54,565
37,182
7,137
30,045
$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
$3,334,597
1,946,580
700,523
2,890,353
354,792
265,117
$3,050,010
2,015,056
474,806
2,611,330
337,894
246,755
$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
$4.00
4.00
1.09
32.95
24.62
$2.74
2.73
1.08
30.77
22.47
$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
Average common shares outstanding, basic
Average common shares outstanding, diluted
10,873,817
10,877,231
10,981,623
10,985,790
10,531,572
10,541,337
8,698,014
8,708,462
8,641,717
8,660,628
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
1.37%
12.50%
17.34%
27.17%
51.05%
3.05%
1.08%
9.12%
13.19%
39.41%
52.80%
3.30%
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%
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
0.96%
840.59%
0.07%
(0.01%)
1.06%
793.88%
0.12%
0.03%
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%
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
14.61%
12.43%
13.73%
9.13%
8.17%
15.18%
12.36%
13.78%
9.48%
8.34%
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%
for the year ended December 31 (Dollars in thousands except for share and per share data)
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SHAREHOLDER INFORMATION
ANNUAL MEETING
EQUAL OPPORTUNITY EMPLOYER
The 2022 Annual Meeting of Shareholders of
American National Bank & Trust Company, a
American National Bankshares Inc. will be held at
wholly-owned subsidiary of American National
The Wednesday Club at 1002 Main Street,
Bankshares Inc., is an equal opportunity employer.
Danville, Virginia 24541 on Tuesday, May 17, 2022,
All matters regarding recruiting, hiring, training,
at 9 a.m. (EDT).
STOCK LISTING
compensation, benefits, promotions, transfers and
all other personnel policies will remain free from
discriminatory practices.
The common stock of American National
Bankshares Inc. (the “Company”) is traded on the
THIS REPORT
NASDAQ Global Select Market under the symbol
The American National Bankshares Inc. 2021
“AMNB.”
SHAREHOLDER INQUIRIES
Summary Annual Report is presented in a summary
format to provide information regarding the
performance of the Company in a manner that
Shareholders needing information on stock transfer
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
detailed, analytical information regarding the
Company are contained in the 2021 Annual Report
on Form 10-K filed with the Securities and Exchange
Commission.
INVESTOR RELATIONS & FINANCIAL
INDEPENDENT AUDITORS
STATEMENTS
Yount, Hyde & Barbour PC
50 South Cameron Street
Winchester, VA 22601
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
REGULATORY AND SECURITIES COUNSEL
upon written request and are also available on
Williams Mullen
Williams Mullen Center
our website, amnb.com. Those with requests for
this or other financial information about American
200 South 10th Street, Suite 1600
National Bankshares Inc. should contact:
PO Box 1320 (23218)
Richmond, VA 23219
American National Bankshares Inc.
Investor Relations
PO Box 191
Danville, VA 24543
800.240.8190
13
amnb.com
MEMBER FDIC | EQUAL HOUSING LENDER