About American National Bankshares

American National Bankshares Inc. operates as the bank holding company for American National Bank and Trust Company that provides a full array of financial products and services, including commercial, mortgage, and consumer banking; trust and investment services; and insurance. Services are also provided through Automated Teller Machines (ATMs), Online Banking, and Telephone Banking. Through these offices, the company serves its primary market area of south central Virginia, the New River Valley and Roanoke, Virginia, and north central North Carolina. Segments The company operates through two segments, Community Banking and Wealth Management. Community banking involves making loans to and generating deposits from individuals and businesses. All assets and liabilities of the company are allocated to community banking. Investment income from securities is also allocated to the community banking segment. Loan fee income, service charges from deposit accounts, and non-deposit fees, such as automated teller machine fees and insurance commissions generate additional income for the community banking segment. Wealth management include estate planning, trust account administration, investment management, and retail brokerage. Investment management include purchasing equity, fixed income, and mutual fund investments for customer accounts. The wealth management segment receives fees for investment and administrative services. Markets The company's primary market area is south central Virginia and north central North Carolina. The company also has a significant presence in Roanoke, Virginia that increased substantially in connection with the acquisition of HomeTown Bankshares Corporation (HomeTown) in 2019. The company's Virginia banking offices are located in the cities of Danville, Lynchburg, Martinsville, Roanoke, and Salem and in the counties of Campbell, Franklin, Halifax, Henry, Montgomery, Pittsylvania and Roanoke. In North Carolina, the company's banking offices are located in the cities of Burlington, Graham, Greensboro, Mebane, Raleigh, Winston-Salem, and Yanceyville, which are within the counties of Alamance, Caswell, Forsyth, Guilford, and Wake. Loans The loan portfolio consists primarily of commercial and residential real estate loans, commercial loans to small and medium-sized businesses, construction and land development loans, and home equity loans. Investment Portfolio As of December 31, 2022, the company’s investment portfolio included U.S. Treasury; federal agencies and GSEs; mortgage-backed and CMOs; state and municipal; and corporate. Deposits The company's deposits consist primarily of checking, money market, savings, and consumer and commercial time deposits. Supervision and Regulation The company is qualified as a bank holding company (BHC) within the meaning of the Bank Holding Company Act of 1956, as amended (the ‘BHC Act’); and is registered as such with the Board of Governors of the Federal Reserve System (the ‘FRB’). As a bank holding company, the company is subject to supervision, regulation, and examination by the FRB; and is required to file various reports and additional information with the FRB. The company is also registered under the bank holding company laws of Virginia; and is subject to supervision, regulation and examination by the Bureau of Financial Institutions of the Virginia State Corporation Commission (the SCC). American National Bank and Trust Company is a federally chartered national bank and is a member of the Federal Reserve System. As a national bank, the bank is subject to supervision, regulation, and examination by the Office of the Comptroller of the Currency (the OCC); and is required to file various reports and additional information with the OCC. Because the bank accepts insured deposits from the public, it is also subject to examination by the Federal Deposit Insurance Corporation (FDIC). The deposits of the bank are insured up to applicable limits by the DIF and are subject to deposit insurance assessments to maintain the DIF. The deposit insurance assessment base of the bank is based on its average total assets minus average tangible equity, pursuant to a rule issued by the FDIC as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). With respect to the bank, the ‘prompt corrective action’ regulations pursuant to Section 38 of the Federal Deposit Insurance Act (the ‘FDIA’) were also revised, effective as of January 1, 2015, to incorporate a CET1 (common equity Tier 1 to risk-weighted assets) ratio and to increase certain other capital ratios. The company's common stock is registered under Section 12 of the Securities Exchange Act of 1934 (Exchange Act). Pursuant to Sections 23A and 23B of the Federal Reserve Act and Regulation W, the authority of the bank to engage in transactions with related parties or ‘affiliates’ or to make loans to insiders is limited. Section 22(g) of the Federal Reserve Act identifies limited circumstances in which the bank is permitted to extend credit to executive officers. The company is subject to a number of federal and state consumer protection laws that extensively govern its relationship with its customers. These laws include the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Fund Transfer Act, the Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, the Service Members Civil Relief Act, laws governing flood insurance, federal and state laws prohibiting unfair and deceptive business practices, foreclosure laws, and various regulations that implement some or all of the foregoing. The bank was rated ‘satisfactory’ in its most recent CRA (Community Reinvestment Act of 1977, as amended) evaluation. The company is subject to several federal laws that are designed to combat money laundering, terrorist financing, and transactions with persons, companies or foreign governments designated by the U.S. authorities (AML laws). This category of laws includes the Bank Secrecy Act of 1970, the Money Laundering Control Act of 1986, the USA PATRIOT Act of 2001, and the Anti-Money Laundering Act of 2020. The U.S. Treasury Department's Office of Foreign Assets Control publishes lists of prohibited parties that are regularly consulted by the company in the conduct of its business in order to assure compliance. The bank’s mortgage origination activities are subject to the FRB’s Regulation Z, which implements the Truth in Lending Act. History American National Bankshares Inc. was founded in 1909. The company was incorporated under the laws of the Commonwealth of Virginia in 1984.