2022
SUMMARY
ANNUAL REPORT
1
EVOLVING WITH
PURPOSE AND
RELEVANCE
In loving memory of:
Charles Somerville Harris
1951-2022
The 2022 Summary Annual Report is dedicated to Charles Somerville Harris, who
served as a director of American National Bankshares since 2008.
FORWARD LOOKING STATEMENTS
Statements made in this release, 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 including 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
4
Letters to Shareholders
• Charles H. Majors, Chairman
• Jeffrey V. Haley, President
& CEO
6
Evolving with Purpose
& Relevance
• Three-year strategic plan
• Our Values
8
Making a Difference
• Community Impact
• Employee Awards
2022 Financial
Highlights
10
12
Our People
• Board of Directors
• Executive Team
• State Banking Board
Members
15
Shareholder
Information
LETTERS OUR SHAREHOLDERS
TO
Dear Shareholders,
At the conclusion of the Annual Shareholders’ Meeting
in May, I will retire as Chair of the Board, having served
over forty-one years as a member of the Board. The first
eleven was as an independent director and the last thirty
while serving sequentially as President, Chief Executive
Officer, Executive Chair and now non-executive Chair of
the Board.
What a journey this has been! Let’s look at some
comparative statistics over these mileposts.
When I joined the Board of Directors in September 1981,
the Bank had assets of less than $100 million. When I
joined the executive team as President in 1993, assets
were approximately $240 million. Today, assets of your
company exceed $3 billion.
Annual earnings in 1981 were $1.2 million. In 1993, earnings
had grown to $3.3 million and last year in 2022, earnings
were $34.4 million.
In 1981, as well as in 1993, the Bank had six offices – all
in the City of Danville. We now have twenty-six banking
offices in 11 distinct markets in Virginia and North Carolina.
How did we have such growth in assets, earnings and
offices? First and foremost, we have adapted to the
necessary changes to be relevant and successful as we
became a regional community financial institution. Those
changes had to be made while retaining our corporate
culture which has attracted and retained customers,
employees and shareholders. We used
a strategy consisting of organic growth in our legacy
markets, while also entering new growth markets through
branch acquisitions, de novo branching, and mergers and
acquisitions.
Successful execution of that strategy required a strong
team. As we have grown, we had long-tenured employees,
balanced with new teammates who liked what they saw
and chose to join us. We have always had a board of
directors who provided positive strategic advice and who
represented our shareholders wisely. And importantly, we
have shareholders who believe in American National and
who have supported us – often as customers as well as
“owners.”
I have always felt that any success I have helped to bring
to the Bank and the Company would be measured greatly
on whether we had an effective transition of leadership
as I leave. I feel we have met that goal. I strongly believe
that we have executive leadership up to the task for future
success. I am also confident that the Board consists of
strong and dedicated business and community leaders who
represent your interests appropriately and wisely.
It has been a privilege to serve as director, President, CEO,
and Board Chair for you. I thank you for the opportunity.
Sincerely,
Charles H. Majors
Charles H. Majors
Chairman of the Board
Chairman of the Board
4
Board Chairman Charley Majors (left)
and President & CEO Jeffrey Haley (right)
Dear Shareholders,
American National is evolving. We are evolving our
operations. We are evolving our customer experience.
We are evolving our talent and leadership. We are not
just evolving for evolution’s sake; we are evolving with
purpose and relevance.
Succession planning is critical to any company’s evolution
and something we continue to take very seriously at all
levels of the bank. We have done tremendous work in this
area and specifically at the board level. We were extremely
saddened to lose a valuable, longtime director, Charles
Harris in December of 2022. Charles served as a director at
American National since 2008 with numerous contributions
to our Company, most recently serving as Chair of our Audit
Committee. He was an amazing person and we remain
grateful for the time he shared with us.
As we work to maintain a strong board, we added two
directors, William Farrell and Nathan Duggins, both of
whom were members of our state banking boards. William
was a director with HomeTown Bank, the bank we acquired
in April 2019, and has remained involved as a member
of our Virginia State Banking Board. He is President of
Berglund Automotive, which operates 12 dealerships
representing 25 brands in Virginia. Nathan has been a key
member of our North Carolina State Banking Board since
its inception. He is Managing Partner of Tuggle Duggins in
Greensboro, a firm founded in 1974 that serves domestic
and international clients in a wide assortment of industries.
The completion of Charley Majors’s final board term
this May marks a significant leadership evolution for the
Company. Charley succeeded James Motley as President.
Charley gets a lot of credit for where this company is today.
He oversaw our expansion to other markets including our
purchase of a branch in Yanceyville, North Carolina, making
American National the first nationally chartered bank in
history to purchase a branch across state lines. We became
listed on NASDAQ, we adopted an online banking platform,
we completed multiple acquisitions, growing to over $3.0
billion in assets during his entire 41-year tenure. Those who
know Charley know what an exceptional leader and person
he is. Our Company and communities have benefited from
the many roles he has played during his time here and
including the impact he has had as a mentor to me.
I am very pleased with our financial performance and
how it compares to prior years and the overall industry. In
comparison to 2021, which was a record year driven by the
Paycheck Protection Program and its associated revenue, I
would like to recognize that 2022 was also a successful year
for American National. You can see our financial highlights
on page 10 of this report along with the following notable
accomplishments. We realized $34.4 million in net income
and $3.23 earnings per share. We achieved significant loan
growth with $239.9 million in loans, an increase of 12.3%
over December 2021 and our credit quality remained very
strong. Some key ratios as of December 31, 2022 are as
follows: Return on average assets was 1.07%, Return on
common tangible equity was 14.56% and our efficiency
ratio remained low at 57.37%. Overall, 2022 was strong and
we were pleased to offer an increase to our dividend again.
At the start of 2023, our local economies remain fairly
stable in spite of factors associated with elevated inflation
and rising rates. Like other financial institutions, deposits
remain a primary focus for us. While we work to grow our
balance sheet, we remain committed to the pillars in our
strategic plan as we evolve our company. Those pillars are:
1. grow our franchise; 2. enhance the customer experience;
3. achieve operational excellence; and 4. strengthen our
culture and talent. As we strategically evolve the bank,
we remain steadfast on 5. maintaining strong financial
performance.
Of course, none of this evolution is possible without the
support of our stakeholders. I remain appreciative of the
efforts of our employees and the support of our customers
and shareholders. American National was named one of
the “Best Banks to Work For” by American Banker for the
third consecutive year. This achievement is a testament
to our efforts to provide a great workplace culture. It is
this committed workforce along with our strong Board of
Directors that will help prepare the Company for future
growth and success. That is how we are evolving with
purpose and relevance.
Sincerely,
Jeffrey V. Haley
Jeffrey V. Haley
President & CEO
5
Board Chairman Charley Majors (left)
and President & CEO Jeffrey Haley (right)
One of the greatest joys serving a
community as its hometown bank is seeing
its people and businesses grow and
thrive, generation after generation.
Our charge in helping them these many
years is twofold: staying true to the values
that have guided our success, while also
adapting our services and operations to
meet the needs of our customers – both for
today and tomorrow.
It’s this marriage of steadfastness and
purposeful evolution that has allowed
us to be such a trusted financial partner to
countless individuals and businesses for
114 years, a theme that was exemplified this
past year.
6
2022-2024: THREE-YEAR STRATEGIC PLAN
Maintain
strong financial
performance
Grow our
franchise
Enhance the
customer
experience
Achieve
operational
excellence
Invest in talent
& strengthen
our culture of
success
OUR VALUES
2022 HIGHLIGHTS
Relationship Focus.
Establishing trust based on respecting others and doing the
right thing
Teamwork.
Working as one team, we value diverse perspectives to move us
forward together
Reliability.
Doing what we say we are going to do through responsive com-
munication and service
Constant Improvement.
Embracing change as we push ourselves to be better
Authenticity.
Being genuine and practical in our words and actions
$34.4 MILLION
Net Income
$3.23
Earnings per share
$239.9 MILLION
In loan growth, an increase of 12.3%
2,097 HOURS
Volunteer hours AMNB employees logged
in 2022
“BEST BANKS TO WORK FOR”
Named by American Banker Magazine
7
MAKING
A
DIFFERENCE
Strengthening our communities is what
American National is all about, as we
have long understood our bank is only
as strong as the communities we serve.
From sponsoring community events to
volunteering on not-for-profit boards
and teaching financial education at
local schools, we are committed to help
our communities thrive.
In 2022, American National set a
volunteer goal of 1,500 community
volunteer hours in 2022 for our team,
which we greatly exceeded thanks
to having a team of people who
care about the communities we are
privileged to be part of.
2,097
Volunteer hours AMNB employees logged in 2022
11
Virginia & North Carolina communities reached
90
Not-for-profit organizations supported
$45,879
Employee-matched donations going to local
United Way chapters or other health and human
service organizations in the AMNB footprint
$359,660
Dollars given in corporate donations
and sponsorships
8
AWARD-WINNING STAFF
THE CHARLEY MAJORS EMPLOYEE ACHIEVEMENT AWARD
DEBBIE DURHAM, Director of Enterprise Project Office, not only developed the bank’s project
management department, but also assumed the responsibility of Vendor Management in 2022.
She reaches across departmental lines to help the bank successfully implement many key projects
that are essential to evolving the company. Debbie is calm and steadfast in her approach and is
tireless in her commitment to helping employees and the bank achieve success.
This award is given to the employee who best exemplifies the American National service
principles, who is the constant team supporter, who exhibits 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. All employees are eligible for this award.
THE BILL TRAYNHAM OUTSTANDING SERVICE AWARD
AMBER NIKOLAY, Lending Assistant Manager, exemplifies American National’s core values
in her day to day actions. Her positive attitude and focus on service is recognized across the
bank and among our customers as she consistently exceeds expectations through responsive
communication and a commitment to service. As a bank focused on relationships, Amber leads an
amazing team of people that work hard to be sure we are consistently meeting and anticipating
our customers’ needs.
This award is given to a support employee that embodies the characteristics of hard work,
perseverance and teamwork. This employee goes above and beyond to help co-workers and does
so with a “can-do” attitude. Any employee who works in a support, operational or administrative
capacity is eligible for this award.
THE COMMUNITY CHAMPION AWARD
ASHLEY MULERO, Customer Support Manager of the Main Office in Danville, has a passion for
giving back to the community exceeding her personal goal of 100 volunteer hours in 2022. Some
of her efforts included organizing a Movie Night, with donations and food sales benefiting the
Danville-Pittsylvania Cancer Association, being named the Danville Heart Walk’s 2022 Overall Top
Walker by the American Heart Association, helping construct homes for Habitat for Humanity,
and teaching financial education at local schools. Her tireless service in the community truly
exemplifies what it means to be a community banker.
This award given to an employee who gives back to the community in big ways supporting the
community through philanthropy and giving of personal time and talents to make the community
a better place to live and work.
9
2022 FINANCIAL HIGHLIGHTS
NET LOANS (in billions)
CORE DEPOSITS (in billions)
$1.83
$1.80
$1.93
$2.19
$1.36
$2.54
$2.34
$2.21
$1.59
$1.20
2018
2019
2020*
2021*
2022*
2018
2019
2020
2021
2022
NON-PERFORMING ASSETS TO TOTAL ASSETS
NET INCOME (in millions)
.15%
.11%
.12%
$43.5
$34.4
$30.0
.07%
.04%
$22.6
$20.9
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
EARNINGS PER SHARE (diluted)
COMMON STOCK DIVIDEND
$4.00
$3.23
$1.00
$1.04
$1.08
$1.09
$1.14
$2.59
$2.73
$1.98
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
For the year ended December 31 (Dollars in thousands except for share and per share data)
*Excludes PPP loans
10
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
2022
2021
2020
2019
2018
$96,004
5,766
90,238
1,597
18,807
64,086
43,362
8,934
34,428
$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
$3,065,902
2,186,449
620,713
2,596,328
321,174
232,759
$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
$3.23
3.23
1.14
30.27
21.94
$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
Average common shares outstanding, basic
Average common shares outstanding, diluted
10,672,314
10,674,613
10,873,817
10,877,231
10,981,623
10,985,790
10,531,572
10,541,337
8,698,014
8,708,462
SELECTED RATIOS
Return on average assets
Return on average common equity
Return on average tangible equity
Dividend payout ratio
Efficiency ratio
Net interest margin
1.07%
10.36%
14.56%
35.27%
57.37%
2.97%
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%
ASSET QUALITY RATIOS
Allowance for loan losses to period-end loans
Allowance for loan losses to period-end
non-performing loans
Nonperforming assets to total assets
Net (recoveries) charge-offs to average loans
0.89%
0.96%
1.06%
0.72%
0.94%
1,478.08%
0.05%
0.04%
840.59%
0.07%
(0.01)%
793.88%
0.12%
0.03%
570.59%
0.15%
0.01%
1,101.98%
0.11 %
0.05%
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
13.67%
11.70%
12.86%
10.36%
7.82%
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%
For the year ended December 31 (Dollars in thousands except for share and per share data)
2022 FINANCIALS
11
1 Charles H. Majors
Chairman, American National
Bankshares Inc., American National
Bank & Trust, Danville, VA
2 Jeffrey V. Haley
President & CEO, American National
Bankshares Inc., American National
Bank & Trust, Danville, VA
3 J. Nathan Duggins III
Managing Partner, Tuggle Duggins
Greensboro, NC
4
7
1
1
5
7 Michael P. Haley
Retired Advisor, Fenway Partners Inc.
New York, NY
8 F.D. Hornaday III
President & CEO,
Knit Wear Fabrics Inc.
Burlington, NC
9 John H. Love
Retired President & COO, W.E. Love &
Associates Inc.
Burlington, NC
10
11
2
4 Nancy Howell Agee
President & CEO, Carilion Clinic
Roanoke, VA
5 William J. Farrell II
President, Berglund Automotive
Roanoke, VA
6 Tammy M. Finley
EVP, General Counsel & Corporate
Secretary, Advance Auto Parts Inc.
Roanoke, VA
8
10 Dan M. Pleasant
Senior Consultant, The Dewberry
Companies Inc.
Fairfax, VA
11 Joel R. Shepherd
President, Virginia Home
Furnishings Inc.
Roanoke, VA
12 Ronda M. Penn
CFO, Plexus Capital LLC
Raleigh, NC
3
6
9
12
BOARD OF DIRECTORS
12
EXECUTIVE TEAM
1 Jeffrey V. Haley
President & Chief Executive Officer
2 Jeffrey W. Farrar
Chief Operating Officer
Chief Financial Officer
3 Edward C. Martin
Chief Administrative Officer
5
7 Lutheria H. Smith
Chief Human Resources Officer
8 Charles T. Canaday Jr.
Regional President
9 John H. Settle Jr.
President, Wealth Management
3
6
9
2
4 Rhonda P. Joyce
Co-head of Banking, Commercial
5 Alex Jung
Co-head of Banking, Consumer &
Financial Services
6 Mark A. Smith
Chief Credit Officer
8
1
4
7
13
STATE BANKING
BOARD MEMBERS
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
Elizabeth K. Hammond
Cobblestone Milk Cooperative
& Mountain View Farms of
Virginia, LLC
Roanoke
Nancy A. Hubbard
University of Lynchburg
Lynchburg
NORTH CAROLINA
Dr. Yun L. Boylston
Burlington Pediatrics
Burlington
John D. Lugar
Virginia Varsity Transfer & Storage
Roanoke
Thomas E. Chandler, Jr.
Chandler Concrete Company Inc.
Burlington
Monica T. Monday
Gentry Locke Attorneys
Martinsville
William C. Vaughn
J&R Management, Inc.
Martinsville
Barton J. Wilner
Entre Computer
Roanoke
R. Aubrey Linville, III
Linville Team Partners
Winston-Salem
Richard H. Ramsey
New Page Capital
Greensboro
Adrian T. Smith
Ice Age Management
Greensboro
Stephen T. Williams, Jr.
Williams Development Group
Winston-Salem
14
SHAREHOLDER INFORMATION
ANNUAL MEETING
The 2023 Annual Meeting of Shareholders of American National
Bankshares Inc. will be held at The Wednesday Club at 1002
Main Street, Danville, Virginia 24541 on Tuesday, May 16, 2023,
at 9 a.m. (EDT).
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
reinvestment plan and other shareholder matters may contact:
Computershare Inc. PO Box 30170
College Station, TX 77842 800.368.5948
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
EQUAL OPPORTUNITY EMPLOYER
American National Bank & 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. 2022 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 2022 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
15
800.240.8190 | www.amnb.com