PART
I
|
PAGE
|
|
ITEM
1
|
4
|
|
ITEM
1A
|
7
|
|
ITEM
1B
|
Unresolved
Staff Comments
|
None
|
ITEM
2
|
10
|
|
ITEM
3
|
10
|
|
ITEM
4
|
10
|
|
|
||
PART
II
|
||
ITEM
5
|
12
|
|
ITEM
6
|
15
|
|
ITEM
7
|
15
|
|
ITEM
7A
|
19
|
|
ITEM
8
|
Financial
Statements and Supplementary Data
|
|
32
|
||
33
|
||
34
|
||
36
|
||
three-year
period ended December 31, 2006
|
37
|
|
Consolidated
Statement of Changes in
Shareholders’ Equity for each of the
years
in the three-year period ended December 31, 2006
|
38
|
|
Consolidated
Statements of Cash Flows for each of the
years in the
three-year
period ended December 31, 2006
|
39
|
|
Notes
to Consolidated Financial
Statements
|
41
|
|
ITEM
9
|
Changes
in and Disagreements With Accountants on Accounting and Financial
Disclosure
|
None
|
ITEM
9A
|
33
|
|
ITEM
9B
|
Other
Information
|
None
|
|
||
PART
III
|
||
ITEM
10
|
*11
|
|
ITEM
11
|
Executive
Compensation
|
*
|
ITEM
12
|
Security
Ownership of Certain Beneficial Owners and Management and
Related
Stockholder
Matters
|
*
|
ITEM
13
|
Certain
Relationships, Related Transactions, and Director
Independence
|
*
|
ITEM
14
|
Principal
Accounting Fees and Services
|
*
|
|
||
PART
IV
|
||
ITEM
15
|
65
|
· |
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 such things as deterioration in credit quality, reduced
demand for credit, and reductions in depositors’ account
balances.
|
· |
Changes
in interest rates could increase or reduce
income.
|
· |
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.
|
· |
Adverse
changes may occur in the securities
market.
|
Charles
H. Majors
|
61
|
President
and Chief Executive Officer of the
Company.
|
R.
Helm Dobbins
|
55
|
Senior
Vice President of American National Bankshares Inc.; Executive
Vice
President and Chief Credit Officer of American National Bank and
Trust
Company since November 2005; prior thereto, Senior Vice President
and
Chief Credit Officer of American National Bank and Trust Company
since
June 2003; Executive Vice President and Chief Credit Officer of
Citizens
Bank and Trust Co. from 1998 to
2003.
|
Jeffrey
V. Haley
|
46
|
Senior
Vice President of American National Bankshares Inc.; Executive
Vice
President and Chief Operating Officer of American National Bank
and Trust
Company since November 2005; prior thereto, Senior Vice President
and
Chief Administrative Officer of American National Bank and Trust
Company.
|
Neal
A. Petrovich
|
44
|
Senior
Vice President, Chief Financial Officer, Treasurer and Secretary
of
American National Bankshares Inc.; Executive Vice President, Chief
Financial Officer, and Cashier of American National Bank and Trust
Company
since November 2005; prior thereto, Senior Vice President, Chief
Financial
Officer and Cashier of American National Bank and Trust Company
since May
2004; Senior Vice President of SouthTrust Bank from 2002 to May
2004;
Executive Vice President and Chief Financial Officer of Bank of
Tidewater
from 1995 to 2002.
|
Market
Price of the Company’s Common Stock
|
||||||||||
Dividends
|
||||||||||
Closing
Price
|
Declared
|
|||||||||
2006
|
High
|
Low
|
Per
Share
|
|||||||
4th
quarter
|
$
|
23.87
|
$
|
22.81
|
$
|
0.22
|
||||
3rd
quarter
|
24.00
|
22.45
|
0.22
|
|||||||
2nd
quarter
|
24.02
|
22.50
|
0.22
|
|||||||
1st
quarter
|
24.07
|
22.30
|
0.21
|
|||||||
$
|
0.87
|
|||||||||
|
||||||||||
|
|
|
|
Dividends
|
||||||
Closing
Price
|
Declared
|
|||||||||
2005
|
High
|
Low
|
Per
Share
|
|||||||
4th
quarter
|
$
|
23.80
|
$
|
21.29
|
$
|
0.21
|
||||
3rd
quarter
|
23.71
|
22.25
|
0.21
|
|||||||
2nd
quarter
|
25.04
|
22.28
|
0.21
|
|||||||
1st
quarter
|
24.84
|
23.85
|
0.20
|
|||||||
$
|
0.83
|
|
Total
Number of Shares Purchased
|
Average
Price Paid Per
Share
|
Total
Number of Shares Purchased as Part of Publicly Announced
Program
|
Maximum
Number of Shares That May Yet Be Purchased Under
the Program
|
|||||||||
October
1-31, 2006
|
3,300
|
$
|
23.56
|
3,300
|
121,700
|
||||||||
November
1-30, 2006
|
-
|
-
|
-
|
121,700
|
|||||||||
December
1-31, 2006
|
1,600
|
23.55
|
1,600
|
120,100
|
|||||||||
4,900
|
$
|
23.56
|
4,900
|
||||||||||
December
31, 2006
|
||||||||||
|
Number
of Shares
to
be Issued Upon Exercise
of
Outstanding Options
|
Weighted-Average
Per
Share Exercise Price of Outstanding Options
|
Number
of Shares Remaining Available
for
Future Issuance Under
Stock
Option Plan
|
|||||||
Equity
compensation plans
approved
by shareholders
|
201,849
|
$
|
20.36
|
-
|
||||||
Equity
compensation plans not approved by shareholders
|
-
|
-
|
-
|
|||||||
Total
|
201,849
|
$
|
20.36
|
-
|
2001
|
2002
|
2003
|
2004
|
2005
|
2006
|
|||||
AMERICAN
NATIONAL BANKSHARES, INC.
|
100
|
143
|
148
|
142
|
141
|
147
|
||||
INDEPENDENT
BANK INDEX
|
100
|
124
|
168
|
193
|
199
|
230
|
||||
NASDAQ
INDEX
|
100
|
69
|
103
|
113
|
115
|
126
|
||||
|
|
|||||||||
|
||||||||||
|
|
|||||||||
(in
thousands, except per share amounts and ratios)
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
Results
of Operations:
|
||||||||||||||||
Interest
income
|
$
|
45,070
|
$
|
32,479
|
$
|
30,120
|
$
|
32,178
|
$
|
35,135
|
||||||
Interest
expense
|
16,661
|
8,740
|
7,479
|
9,391
|
12,310
|
|||||||||||
Net
interest income
|
28,409
|
23,739
|
22,641
|
22,787
|
22,825
|
|||||||||||
Provision
for loan losses
|
58
|
465
|
3,095
|
920
|
873
|
|||||||||||
Noninterest
income
|
8,458
|
7,896
|
6,510
|
6,671
|
5,712
|
|||||||||||
Noninterest
expense
|
20,264
|
17,079
|
15,011
|
15,111
|
14,285
|
|||||||||||
Income
before income tax provision
|
16,545
|
14,091
|
11,045
|
13,427
|
13,379
|
|||||||||||
Income
tax provision
|
5,119
|
4,097
|
3,032
|
3,914
|
3,918
|
|||||||||||
Net
income
|
$
|
11,426
|
$
|
9,994
|
$
|
8,013
|
$
|
9,513
|
$
|
9,461
|
||||||
Period-end
Balances:
|
||||||||||||||||
Securities
|
$
|
162,621
|
$
|
165,629
|
$
|
188,163
|
$
|
207,479
|
$
|
163,824
|
||||||
Loans,
net of unearned income
|
542,228
|
417,087
|
407,269
|
406,245
|
406,403
|
|||||||||||
Deposits
|
608,528
|
491,651
|
485,272
|
501,688
|
473,562
|
|||||||||||
Shareholders'
equity
|
94,992
|
73,419
|
71,000
|
71,931
|
70,736
|
|||||||||||
Shareholders'
equity - tangible (a)
|
69,695
|
73,287
|
70,516
|
70,997
|
69,352
|
|||||||||||
Assets
|
777,720
|
623,503
|
619,065
|
644,302
|
605,859
|
|||||||||||
Per
Share Information:
|
||||||||||||||||
Earnings
- basic
|
$
|
1.91
|
$
|
1.83
|
$
|
1.43
|
$
|
1.67
|
$
|
1.63
|
||||||
Earnings
- diluted
|
1.90
|
1.81
|
1.42
|
1.65
|
1.62
|
|||||||||||
Dividends
|
0.87
|
0.83
|
0.79
|
0.75
|
0.71
|
|||||||||||
Book
value
|
15.42
|
13.49
|
12.86
|
12.71
|
12.24
|
|||||||||||
Book
value - tangible (a)
|
11.31
|
13.47
|
12.77
|
12.54
|
12.00
|
|||||||||||
Ratios:
|
||||||||||||||||
Return
on average assets
|
1.51
|
%
|
1.61
|
%
|
1.26
|
%
|
1.52
|
%
|
1.63
|
%
|
||||||
Return
on average shareholders' equity
|
12.72
|
13.95
|
11.15
|
13.52
|
13.97
|
|||||||||||
Return
on average tangible equity (b)
|
16.58
|
14.33
|
11.68
|
14.18
|
14.76
|
|||||||||||
Net
interest margin - taxable equivalent
|
4.20
|
4.17
|
3.90
|
3.98
|
4.28
|
|||||||||||
Average
shareholders' equity/average assets
|
11.85
|
11.57
|
11.34
|
11.27
|
11.64
|
|||||||||||
Net
charge-offs to average loans
|
0.10
|
0.56
|
0.10
|
0.30
|
0.15
|
|||||||||||
Allowance
for loan losses to period-end loans
|
1.34
|
1.46
|
1.96
|
1.30
|
1.38
|
|||||||||||
Nonperforming
assets to total assets
|
0.45
|
0.72
|
1.35
|
0.56
|
0.09
|
|||||||||||
(a)
- Excludes goodwill and other intangible assets
|
||||||||||||||||
(b)
- Excludes amortization expense, net of tax, of intangible
assets
|
Table
1 - Net Interest Income Analysis
|
||||||||||||||||||||||||||||
(in
thousands, except yields and rates)
|
||||||||||||||||||||||||||||
Average
Balance
|
Interest
Income/Expense
|
Average
Yield/Rate
|
||||||||||||||||||||||||||
2006
|
2005
|
2004
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
|
|
2006
|
|
|
2005
|
|
|
2004
|
||||||||
Loans:
|
||||||||||||||||||||||||||||
Commercial
|
$
|
84,676
|
$
|
74,202
|
$
|
94,643
|
$
|
6,481
|
$
|
4,627
|
$
|
4,992
|
7.65
|
%
|
6.24
|
%
|
5.27
|
%
|
||||||||||
Real
Estate
|
416,530
|
327,888
|
290,884
|
29,813
|
20,155
|
16,237
|
7.16
|
6.15
|
5.58
|
|||||||||||||||||||
Consumer
|
12,287
|
12,490
|
18,168
|
1,152
|
1,132
|
1,664
|
9.38
|
9.06
|
9.16
|
|||||||||||||||||||
Total
loans
|
513,493
|
414,580
|
403,695
|
37,446
|
25,914
|
22,893
|
7.29
|
6.25
|
5.67
|
|||||||||||||||||||
Securities:
|
||||||||||||||||||||||||||||
Federal
agencies
|
94,589
|
77,609
|
99,263
|
3,745
|
2,414
|
3,169
|
3.96
|
3.11
|
3.19
|
|||||||||||||||||||
Mortgage-backed
|
21,197
|
25,614
|
23,842
|
988
|
1,099
|
1,046
|
4.66
|
4.29
|
4.39
|
|||||||||||||||||||
State
and municipal
|
46,735
|
51,943
|
52,247
|
2,624
|
3,049
|
3,059
|
5.61
|
5.87
|
5.85
|
|||||||||||||||||||
Other
|
11,059
|
15,273
|
19,776
|
621
|
715
|
923
|
5.62
|
4.68
|
4.67
|
|||||||||||||||||||
Total
securities
|
173,580
|
170,439
|
195,128
|
7,978
|
7,277
|
8,197
|
4.60
|
4.27
|
4.20
|
|||||||||||||||||||
Deposits
in other banks
|
12,922
|
9,782
|
10,092
|
620
|
376
|
132
|
4.80
|
3.84
|
1.31
|
|||||||||||||||||||
Total
interest earning assets
|
699,995
|
594,801
|
608,915
|
46,044
|
33,567
|
31,222
|
6.58
|
5.64
|
5.13
|
|||||||||||||||||||
Nonearning
assets
|
57,807
|
24,273
|
25,036
|
|||||||||||||||||||||||||
Total
assets
|
$
|
757,802
|
$
|
619,074
|
$
|
633,951
|
||||||||||||||||||||||
Deposits:
|
||||||||||||||||||||||||||||
Demand
|
$
|
105,320
|
$
|
82,121
|
$
|
73,338
|
$
|
1,513
|
$
|
539
|
$
|
269
|
1.44
|
%
|
0.66
|
%
|
0.37
|
%
|
||||||||||
Money
market
|
48,124
|
44,685
|
53,305
|
1,180
|
715
|
428
|
2.45
|
1.60
|
0.80
|
|||||||||||||||||||
Savings
|
77,445
|
81,641
|
83,814
|
963
|
629
|
439
|
1.24
|
0.77
|
0.52
|
|||||||||||||||||||
Time
|
255,856
|
189,467
|
204,945
|
9,693
|
5,019
|
4,843
|
3.79
|
2.65
|
2.36
|
|||||||||||||||||||
Total
deposits
|
486,745
|
397,914
|
415,402
|
13,349
|
6,902
|
5,979
|
2.74
|
1.73
|
1.44
|
|||||||||||||||||||
Repurchase
agreements
|
40,970
|
42,757
|
46,787
|
1,384
|
901
|
528
|
3.38
|
2.11
|
1.13
|
|||||||||||||||||||
Other
borrowings
|
33,087
|
19,474
|
20,931
|
1,928
|
937
|
972
|
5.83
|
4.81
|
4.64
|
|||||||||||||||||||
Total
interest bearing
|
||||||||||||||||||||||||||||
liabilities
|
560,802
|
460,145
|
483,120
|
16,661
|
8,740
|
7,479
|
2.97
|
1.90
|
1.55
|
|||||||||||||||||||
Noninterest
bearing
|
||||||||||||||||||||||||||||
demand
deposits
|
102,117
|
84,670
|
76,123
|
|||||||||||||||||||||||||
Other
liabilities
|
5,059
|
2,621
|
2,846
|
|||||||||||||||||||||||||
Shareholders'
equity
|
89,824
|
71,638
|
71,862
|
|||||||||||||||||||||||||
Total
liabilities and
|
||||||||||||||||||||||||||||
shareholders'
equity
|
$
|
757,802
|
$
|
619,074
|
$
|
633,951
|
||||||||||||||||||||||
Interest
rate spread
|
3.61
|
%
|
3.74
|
%
|
3.58
|
%
|
||||||||||||||||||||||
Net
interest margin
|
4.20
|
%
|
4.17
|
%
|
3.90
|
%
|
||||||||||||||||||||||
Net
interest income (taxable equivalent basis)
|
29,383
|
24,827
|
23,743
|
|||||||||||||||||||||||||
Less:
Taxable equivalent adjustment
|
974
|
1,088
|
1,102
|
|||||||||||||||||||||||||
Net
interest income
|
$
|
28,409
|
$
|
23,739
|
$
|
22,641
|
||||||||||||||||||||||
Table
2 - Changes in Net Interest Income (Rate/Volume
Analysis)
|
|||||||||||||||||||||
(in
thousands)
|
|||||||||||||||||||||
|
2006
vs. 2005
|
2005
vs. 2004
|
|||||||||||||||||||
|
|
|
Interest
|
Change
|
Interest
|
Change
|
|||||||||||||||
Increase
|
Attributable
to
|
Increase
|
Attributable
to
|
||||||||||||||||||
Interest
income
|
(Decrease)
|
|
Rate
|
Volume
|
(Decrease)
|
|
Rate
|
Volume
|
|||||||||||||
Loans:
|
|||||||||||||||||||||
Commercial
|
$
|
1,854
|
$
|
1,144
|
$
|
710
|
$
|
(365
|
)
|
$
|
820
|
$
|
(1,185
|
)
|
|||||||
Real
Estate
|
9,658
|
3,652
|
6,006
|
3,918
|
1,736
|
2,182
|
|||||||||||||||
Consumer
|
20
|
39
|
(19
|
)
|
(532
|
)
|
(17
|
)
|
(515
|
)
|
|||||||||||
Total
loans
|
11,532
|
4,835
|
6,697
|
3,021
|
2,539
|
482
|
|||||||||||||||
Securities:
|
|||||||||||||||||||||
Federal
agencies
|
1,331
|
739
|
592
|
(755
|
)
|
(80
|
|
(675
|
)
|
||||||||||||
Mortgage-backed
|
(111
|
)
|
89
|
(200
|
)
|
53
|
(23
|
)
|
76
|
||||||||||||
State
and municipal
|
(425
|
)
|
(129
|
)
|
(296
|
)
|
(10
|
)
|
8
|
(18
|
)
|
||||||||||
Other
securities
|
(94
|
)
|
126
|
(220
|
)
|
(208
|
)
|
3
|
(211
|
)
|
|||||||||||
Total
securities
|
701
|
825
|
(124
|
)
|
(920
|
)
|
(92
|
)
|
(828
|
)
|
|||||||||||
Deposits
in other banks
|
244
|
106
|
138
|
244
|
248
|
(4
|
)
|
||||||||||||||
Total
interest income
|
12,477
|
5,766
|
6,711
|
2,345
|
2,695
|
(350
|
)
|
||||||||||||||
Interest
expense
|
|||||||||||||||||||||
Deposits:
|
|||||||||||||||||||||
Demand
|
974
|
787
|
187
|
270
|
234
|
36
|
|||||||||||||||
Money
market
|
465
|
406
|
59
|
287
|
366
|
(79
|
)
|
||||||||||||||
Savings
|
334
|
368
|
(34
|
)
|
190
|
202
|
(12
|
)
|
|||||||||||||
Time
|
4,674
|
2,576
|
2,098
|
176
|
559
|
(383
|
)
|
||||||||||||||
Total
deposits
|
6,447
|
4,137
|
2,310
|
923
|
1,361
|
(438
|
)
|
||||||||||||||
Repurchase
agreements
|
483
|
522
|
(39
|
)
|
373
|
422
|
(49
|
)
|
|||||||||||||
Other
borrowings
|
991
|
230
|
761
|
(35
|
)
|
34
|
(69
|
)
|
|||||||||||||
Total
interest expense
|
7,921
|
4,889
|
3,032
|
1,261
|
1,817
|
(556
|
)
|
||||||||||||||
Net
interest income
|
$
|
4,556
|
$
|
877
|
$
|
3,679
|
$
|
1,084
|
$
|
878
|
$
|
206
|
|||||||||
Table
3 - Interest Rate Sensitivity Gap Analysis
|
||||||||||||||||
December
31, 2006
|
||||||||||||||||
(dollars in thousands)
|
||||||||||||||||
|
||||||||||||||||
Within
|
>
1 Year
|
>
3 Year
|
||||||||||||||
1
Year
|
to
3 Years
|
to
5 Years
|
>
5 Years
|
Total
|
||||||||||||
Interest
sensitive assets:
|
||||||||||||||||
Interest
bearing deposits
|
||||||||||||||||
with
other banks
|
$
|
1,749
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,749
|
||||||
Securities
(1)
|
50,161
|
37,887
|
48,622
|
27,033
|
163,703
|
|||||||||||
Loans
(2)
|
306,269
|
127,155
|
74,747
|
35,719
|
543,890
|
|||||||||||
Total
interest
|
||||||||||||||||
sensitive
assets
|
358,179
|
165,042
|
123,369
|
62,752
|
709,342
|
|||||||||||
Interest
sensitive liabilities:
|
||||||||||||||||
Checking
and savings deposits
|
176,687
|
-
|
-
|
-
|
176,687
|
|||||||||||
Money
market deposits
|
50,948
|
-
|
-
|
-
|
50,948
|
|||||||||||
Time
deposits
|
179,367
|
68,007
|
26,611
|
23
|
274,008
|
|||||||||||
Repurchase
agreements
|
33,368
|
-
|
-
|
-
|
33,368
|
|||||||||||
Federal
Home Loan Bank advances
|
1,000
|
13,000
|
1,087
|
15,087
|
||||||||||||
Trust
preferred capital notes
|
-
|
-
|
-
|
20,619
|
20,619
|
|||||||||||
Total
interest
|
||||||||||||||||
sensitive
liabilities
|
441,370
|
81,007
|
26,611
|
21,729
|
570,717
|
|||||||||||
Interest
sensitivity gap
|
$
|
(83,191
|
)
|
$
|
84,035
|
$
|
96,758
|
$
|
41,023
|
$
|
138,625
|
|||||
Cumulative
interest sensitivity gap
|
$
|
(83,191
|
)
|
$
|
844
|
$
|
97,602
|
$
|
138,625
|
|||||||
Percentage
cumulative gap
|
||||||||||||||||
to
total interest sensitive assets
|
(11.7
|
)%
|
0.1
|
%
|
13.8
|
%
|
19.5
|
%
|
||||||||
(1)
Securities based on amortized cost.
|
||||||||||||||||
(2)
Loans include loans held for sale and are net of unearned
income.
|
Table
4 - Estimated Changes in Net Interest Income
|
|||||||
(dollars
in thousands)
|
|||||||
As
of December 31, 2006
|
|||||||
Change
in
|
Changes
in
|
||||||
Interest
|
Net
interest Income (1)
|
||||||
Rates
|
Amount
|
Percent
|
|||||
Up
2%
|
$
|
388
|
1.33
|
%
|
|||
Up
1%
|
366
|
1.26
|
|||||
Down
1%
|
(462
|
)
|
(1.59
|
)
|
|||
Down
2%
|
(603
|
)
|
(2.07
|
)
|
|||
(1)
Represents the difference between estimated net interest income
for the
next 12 months in the new interest rate environment and the current
interest rate environment.
|
Table
5 - Securities Portfolio
|
|||||||||||||||||||||||||||||||
This table presents information on the amortized cost, maturities, and taxable equivalent yields of securities at the end of the last 3 years: | |||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||||||||||||||
|
|
Taxable
|
|
Taxable
|
|
Taxable
|
|||||||||||||||||||||||||
( in thousands, except yields) |
Amortized
|
Equivalent
|
Amortized
|
Equivalent
|
Amortized
|
Equivalent
|
|||||||||||||||||||||||||
|
Cost
|
Yield
|
Cost
|
Yield
|
Cost
|
Yield
|
|||||||||||||||||||||||||
Federal
Agencies:
|
|||||||||||||||||||||||||||||||
Within
1 year
|
$
|
36,969
|
3.92
|
%
|
|
$ |
27,005
|
2.77
|
%
|
$
|
12,012
|
3.98
|
%
|
||||||||||||||||||
1
to 5 years
|
45,432
|
4.62
|
44,353
|
3.49
|
56,456
|
2.87
|
|||||||||||||||||||||||||
5
to 10 years
|
6,706
|
4.67
|
10,905
|
4.55
|
18,997
|
3.80
|
|||||||||||||||||||||||||
Over
10 years
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Total
|
89,107
|
4.34
|
82,263
|
3.40
|
87,465
|
3.22
|
|||||||||||||||||||||||||
Mortgage-backed:
|
|||||||||||||||||||||||||||||||
Within
1 year
|
-
|
-
|
-
|
-
|
24
|
5.62
|
|||||||||||||||||||||||||
1
to 5 years
|
4,460
|
4.51
|
4,142
|
4.18
|
3,770
|
4.32
|
|||||||||||||||||||||||||
5
to 10 years
|
8,345
|
4.83
|
10,227
|
4.78
|
13,482
|
4.47
|
|||||||||||||||||||||||||
Over
10 years
|
6,805
|
5.06
|
6,908
|
4.11
|
12,033
|
4.32
|
|||||||||||||||||||||||||
Total
|
19,610
|
4.84
|
21,277
|
4.44
|
29,309
|
4.39
|
|||||||||||||||||||||||||
State
and Municipal:
|
|||||||||||||||||||||||||||||||
Within
1 year
|
1,330
|
6.69
|
3,395
|
6.30
|
3,849
|
5.89
|
|||||||||||||||||||||||||
1
to 5 years
|
23,036
|
5.15
|
23,321
|
5.65
|
18,730
|
6.03
|
|||||||||||||||||||||||||
5
to 10 years
|
16,550
|
5.16
|
19,446
|
5.06
|
26,886
|
4.97
|
|||||||||||||||||||||||||
Over
10 years
|
5,179
|
6.03
|
3,040
|
6.15
|
4,257
|
6.15
|
|||||||||||||||||||||||||
Total
|
46,095
|
5.30
|
49,202
|
5.49
|
53,722
|
5.51
|
|||||||||||||||||||||||||
Other
Securities:
|
|||||||||||||||||||||||||||||||
Within
1 year
|
1,005
|
6.06
|
4,511
|
6.09
|
2,706
|
6.03
|
|||||||||||||||||||||||||
1
to 5 years
|
1,485
|
3.32
|
3,514
|
4.91
|
8,070
|
5.58
|
|||||||||||||||||||||||||
5
to 10 years
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||
Over
10 years
|
6,401
|
6.21
|
5,952
|
3.62
|
6,551
|
2.43
|
|||||||||||||||||||||||||
Total
|
8,891
|
5.71
|
13,977
|
4.74
|
17,327
|
4.46
|
|||||||||||||||||||||||||
Total
portfolio
|
$
|
163,703
|
4.74
|
%
|
$ |
166,719
|
4.26
|
%
|
$
|
187,823
|
4.17
|
%
|
|||||||||||||||||||
As
of December 31, 2006
|
||||||||||
(dollars
in thousands)
|
Balance
|
Percentage
of
Portfolio
|
Percentage
Change
in
Balance Since
December
31, 2005
|
|||||||
Danville
region
|
$
|
215,820
|
39.80
|
%
|
(5.05
|
)%
|
||||
Lynchburg
region
|
145,420
|
26.82
|
2,023.15
|
|||||||
Southside
region:
|
||||||||||
Martinsville
and Henry County
|
98,420
|
18.15
|
(9.01
|
)
|
||||||
Halifax
and Pittsylvania County
|
61,320
|
11.31
|
11.10
|
|||||||
Greensboro
area
|
21,220
|
3.92
|
28.04
|
|||||||
Total
loans
|
$
|
542,200
|
100.00
|
%
|
||||||
Table
6 - Loans
|
||||||||||||||||
|
As
of December 31,
|
|||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(in
thousands)
|
||||||||||||||||
Real
estate:
|
||||||||||||||||
Construction
and land development
|
$
|
69,404
|
$
|
50,092
|
$
|
34,101
|
$
|
12,790
|
$
|
9,208
|
||||||
Commercial
|
186,639
|
142,968
|
147,653
|
136,395
|
115,077
|
|||||||||||
1-4
family residential
|
131,126
|
94,405
|
91,672
|
94,032
|
92,334
|
|||||||||||
Home
equity
|
52,531
|
42,178
|
42,620
|
42,197
|
37,571
|
|||||||||||
Total
real estate
|
439,700
|
329,643
|
316,046
|
285,414
|
254,190
|
|||||||||||
Commercial
and industrial
|
91,511
|
76,735
|
75,847
|
97,114
|
120,164
|
|||||||||||
Consumer
|
11,017
|
10,709
|
15,376
|
23,717
|
32,049
|
|||||||||||
Total
loans
|
$
|
542,228
|
$
|
417,087
|
$
|
407,269
|
$
|
406,245
|
$
|
406,403
|
||||||
Table
7 - Scheduled Loan Maturities
|
||||||||||
December
31, 2006
|
||||||||||
(in
thousands)
|
||||||||||
Commercial
|
||||||||||
and
|
Real
Estate
|
|||||||||
|
Agricultural
|
Construction
|
Total
|
|||||||
1
year or less
|
$
|
56,001
|
$
|
54,331
|
$
|
110,332
|
||||
1-5
years
|
30,740
|
14,564
|
45,304
|
|||||||
After
5 years
|
4,770
|
509
|
5,279
|
|||||||
Total
|
$
|
91,511
|
$
|
69,404
|
$
|
160,915
|
||||
Of
the loans due after one year, $36,513 have predetermined interest
rates
and $14,070 have floating or adjustable interest rates.
|
||||||||||
|
Table
8 - Allocation of Allowance for Loan Losses
|
|||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
|||||||||||||||||||||||||||||||||||
|
For
the year ended December 31,
|
||||||||||||||||||||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||||||||||||||||||||||
|
Percent
of
|
Percent
of
|
Percent
of
|
Percent
of
|
Percent
of
|
||||||||||||||||||||||||||||||
loans
in each
|
loans
in each
|
loans
in each
|
loans
in each
|
loans
in each
|
|||||||||||||||||||||||||||||||
|
category
to
|
category
to
|
category
to
|
category
to
|
category
to
|
||||||||||||||||||||||||||||||
(in thousands): | Amount |
total
loans
|
Amount
|
total
loans
|
Amount
|
total
loans
|
Amount
|
total
loans
|
Amount
|
total
loans
|
|||||||||||||||||||||||||
Commercial
|
|||||||||||||||||||||||||||||||||||
(including
|
|||||||||||||||||||||||||||||||||||
commercial
|
|||||||||||||||||||||||||||||||||||
real
estate)
|
$
|
4,467
|
61
|
%
|
$
|
3,897
|
64
|
%
|
$
|
5,927
|
61
|
%
|
$
|
2,881
|
59
|
%
|
$
|
3,196
|
59
|
%
|
|||||||||||||||
Real
estate-
|
|||||||||||||||||||||||||||||||||||
residential
|
2,119
|
37
|
1,462
|
33
|
1,231
|
35
|
848
|
35
|
781
|
33
|
|||||||||||||||||||||||||
Consumer
|
521
|
2
|
653
|
3
|
816
|
4
|
1,141
|
6
|
1,247
|
8
|
|||||||||||||||||||||||||
Unallocated
|
157
|
-
|
97
|
-
|
8
|
-
|
422
|
-
|
398
|
-
|
|||||||||||||||||||||||||
Balance
at
|
|||||||||||||||||||||||||||||||||||
end of year
|
$
|
7,264
|
100
|
%
|
$
|
6,109
|
100
|
%
|
$
|
7,982
|
100
|
%
|
$
|
5,292
|
100
|
%
|
$
|
5,622
|
100
|
%
|
|||||||||||||||
Table
9 - Asset Quality Ratios
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
Allowance
to loans*
|
1.34
|
%
|
1.46
|
%
|
1.96
|
%
|
1.3
|
%
|
1.38
|
%
|
||||||
Net
charge-offs to year-end allowance
|
6.90
|
38.27
|
5.07
|
23.62
|
10.41
|
|||||||||||
Net
charge-offs to average loans
|
0.10
|
0.56
|
0.10
|
0.30
|
0.15
|
|||||||||||
Nonperforming
assets to total assets*
|
0.45
|
0.72
|
1.35
|
0.56
|
0.09
|
|||||||||||
Nonperforming
loans to loans*
|
0.63
|
1.02
|
1.99
|
0.82
|
0.13
|
|||||||||||
Provision
to net charge-offs
|
11.58
|
19.89
|
764.2
|
73.6
|
149.23
|
|||||||||||
Provision
to average loans
|
0.01
|
0.11
|
0.77
|
0.22
|
0.22
|
|||||||||||
Allowance
to nonperforming loans*
|
2.12
|
x |
1.43
|
x |
0.98
|
x |
1.60
|
x |
10.41
|
x | ||||||
*
-
at year end
|
Table
10 - Summary of Loan Loss Experience
|
||||||||||||||||
(in
thousands)
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
Balance
at beginning of period
|
$
|
6,109
|
$
|
7,982
|
$
|
5,292
|
$
|
5,622
|
$
|
5,334
|
||||||
Allowance
from Community First acquisition
|
1,598
|
-
|
-
|
-
|
-
|
|||||||||||
Charge-offs:
|
||||||||||||||||
Construction
and land development
|
1
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial
|
136
|
2,249
|
-
|
-
|
-
|
|||||||||||
Residential
real estate
|
163
|
35
|
85
|
71
|
26
|
|||||||||||
Home
equity
|
-
|
-
|
44
|
9
|
7
|
|||||||||||
Total
real estate
|
300
|
2,284
|
129
|
80
|
33
|
|||||||||||
Commercial
and industrial
|
354
|
76
|
169
|
1,004
|
343
|
|||||||||||
Consumer
|
259
|
217
|
357
|
373
|
364
|
|||||||||||
Total
charge-offs
|
913
|
2,577
|
655
|
1,457
|
740
|
|||||||||||
Recoveries:
|
||||||||||||||||
Construction
and land development
|
1
|
-
|
-
|
-
|
-
|
|||||||||||
Commercial
|
98
|
46
|
49
|
-
|
-
|
|||||||||||
Residential
real estate
|
11
|
3
|
-
|
-
|
3
|
|||||||||||
Home
equity
|
1
|
-
|
-
|
-
|
-
|
|||||||||||
Total
real estate
|
111
|
49
|
49
|
-
|
3
|
|||||||||||
Commercial
and industrial
|
108
|
11
|
45
|
105
|
28
|
|||||||||||
Consumer
|
193
|
179
|
156
|
102
|
124
|
|||||||||||
Total
recoveries
|
412
|
239
|
250
|
207
|
155
|
|||||||||||
Net
charge-offs
|
501
|
2,338
|
405
|
1,250
|
585
|
|||||||||||
Provision
for loan losses
|
58
|
465
|
3,095
|
920
|
873
|
|||||||||||
Balance
at end of period
|
$
|
7,264
|
$
|
6,109
|
$
|
7,982
|
$
|
5,292
|
$
|
5,622
|
||||||
Table
11 - Nonperforming Assets and Impaired Loans
|
||||||||||||||||
|
As
of December 31,
|
|||||||||||||||
(in
thousands)
|
2006
|
2005
|
2004
|
2003
|
2002
|
|||||||||||
Nonaccrual
loans:
|
||||||||||||||||
Real
estate
|
$
|
3,195
|
$
|
4,098
|
$
|
7,005
|
$
|
1,870
|
$
|
293
|
||||||
Commercial
|
151
|
12
|
853
|
1,236
|
-
|
|||||||||||
Agricultural
|
-
|
-
|
12
|
8
|
8
|
|||||||||||
Consumer
|
79
|
107
|
243
|
148
|
-
|
|||||||||||
Total
nonaccrual loans
|
3,425
|
4,217
|
8,113
|
3,262
|
301
|
|||||||||||
Restructured
loans
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
Loans
past due 90 days
|
||||||||||||||||
and accruing interest:
|
||||||||||||||||
Real
estate
|
-
|
46
|
-
|
-
|
-
|
|||||||||||
Commercial
|
-
|
10
|
-
|
-
|
33
|
|||||||||||
Agricultural
|
-
|
-
|
-
|
-
|
1
|
|||||||||||
Consumer
|
-
|
-
|
-
|
53
|
205
|
|||||||||||
Total
past due loans
|
-
|
56
|
-
|
53
|
239
|
|||||||||||
Total
nonperforming loans
|
3,425
|
4,273
|
8,113
|
3,315
|
540
|
|||||||||||
Foreclosed
real estate
|
99
|
188
|
221
|
303
|
30
|
|||||||||||
Total
nonperforming assets
|
$
|
3,524
|
$
|
4,461
|
$
|
8,334
|
$
|
3,618
|
$
|
570
|
||||||
Amount
|
Expiration
Date
|
||
$1,000,000
|
2007
|
||
8,000,000
|
2008
|
||
5,000,000
|
2009
|
||
1,087,000
|
2014
|
Table
12 - Deposits
|
||||||||||||||||||||||
(in thousands, except rates)
|
||||||||||||||||||||||
As
of December 31,
|
||||||||||||||||||||||
2006
|
2005
|
2004
|
||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
||||||||||||||||
|
Rate
|
Rate
|
Balance
|
Rate
|
Balance
|
Rate
|
||||||||||||||||
Demand
deposits -
|
||||||||||||||||||||||
noninterest
bearing
|
$
|
102,117
|
-
|
% |
$
|
84,670
|
-
|
% |
$
|
76,123
|
-
|
% | ||||||||||
Demand
deposit -
|
||||||||||||||||||||||
interest
bearing
|
105,320
|
1.44
|
|
82,121
|
0.66
|
|
73,338
|
0.37
|
||||||||||||||
Money
market
|
48,124
|
2.45
|
44,685
|
1.60
|
53,305
|
0.80
|
||||||||||||||||
Savings
|
77,445
|
1.24
|
81,641
|
0.77
|
83,814
|
0.52
|
||||||||||||||||
Time
|
255,856
|
3.79
|
189,467
|
2.65
|
204,945
|
2.36
|
||||||||||||||||
$
|
588,862
|
2.27
|
%
|
$
|
482,584
|
1.43
|
%
|
$
|
491,525
|
1.21
|
%
|
|||||||||||
Off-Balance
Sheet Transactions
|
December
31, 2006
|
December
31, 2005
|
|||||
Commitments
to extend credit
|
$
|
155,038
|
$
|
116,898
|
|||
Standby
letters of credit
|
3,125
|
2,625
|
|||||
Commitments
to purchase securities
|
-
|
-
|
|||||
Mortgage
loan rate-lock
|
|||||||
commitments
|
2,246
|
1,716
|
Payments
Due by Period
|
||||||||||||||||
More
than
|
||||||||||||||||
Contractual
Obligations
|
Total
|
Under
1 Year
|
1-3
Years
|
3-5
Years
|
5
years
|
|||||||||||
FHLB
advances
|
$
|
15,087
|
$
|
1,000
|
$
|
13,000
|
$
|
0
|
$
|
1,087
|
||||||
Repurchase
agreements
|
33,368
|
33,368
|
-
|
-
|
-
|
|||||||||||
Operating
leases
|
1,126
|
320
|
692
|
62
|
52
|
|||||||||||
Trust
Preferred Securities
|
27,484
|
1,373
|
2,746
|
2,746
|
20,619
|
Table
14 - Quarterly Financial Results
|
|||||||||||||||
(in thousands, except per share amounts)
|
|||||||||||||||
|
Fourth
|
Third
|
Second
|
First
|
|||||||||||
2006
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||
Interest
income
|
$
|
11,925
|
$
|
12,151
|
$
|
12,146
|
$
|
8,848
|
|||||||
Interest
expense
|
4,752
|
4,645
|
4,435
|
2,829
|
|||||||||||
Net
interest income
|
7,173
|
7,506
|
7,711
|
6,019
|
|||||||||||
Provision
for loan losses
|
(547
|
)
|
125
|
354
|
126
|
||||||||||
Net
interest income after provision
for loan losses
|
7,720
|
7,381
|
7,357
|
5,893
|
|||||||||||
Noninterest
income
|
2,152
|
2,138
|
2,267
|
1,901
|
|||||||||||
Noninterest
expense
|
5,408
|
5,117
|
5,356
|
4,383
|
|||||||||||
Income
before income tax provision
|
4,464
|
4,402
|
4,268
|
3,411
|
|||||||||||
Income
tax provision
|
1,547
|
1,301
|
1,266
|
1,005
|
|||||||||||
Net
income
|
$
|
2,917
|
$
|
3,101
|
$
|
3,002
|
$
|
2,406
|
|||||||
Per
common share:
|
|||||||||||||||
Net
income - basic
|
$
|
0.47
|
$
|
0.50
|
$
|
0.49
|
$
|
0.44
|
|||||||
Net
income - diluted
|
0.47
|
0.50
|
0.48
|
0.44
|
|||||||||||
Cash
dividends
|
0.22
|
0.22
|
0.22
|
0.21
|
|||||||||||
|
Fourth
|
Third
|
Second
|
First
|
|||||||||||
2005
|
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||
Interest
income
|
$
|
8,582
|
$
|
8,144
|
$
|
7,987
|
$
|
7,766
|
|||||||
Interest
expense
|
2,536
|
2,210
|
2,077
|
1,917
|
|||||||||||
Net
interest income
|
6,046
|
5,934
|
5,910
|
5,849
|
|||||||||||
Provision
for loan losses
|
(255
|
)
|
180
|
240
|
300
|
||||||||||
Net
interest income after provision
for loan losses
|
6,301
|
5,754
|
5,670
|
5,549
|
|||||||||||
Noninterest
income
|
1,960
|
1,911
|
1,958
|
2,067
|
|||||||||||
Noninterest
expense
|
4,446
|
4,422
|
4,220
|
3,991
|
|||||||||||
Income
before income tax provision
|
3,815
|
3,243
|
3,408
|
3,625
|
|||||||||||
Income
tax provision
|
1,138
|
933
|
984
|
1,042
|
|||||||||||
Net
income
|
$
|
2,677
|
$
|
2,310
|
$
|
2,424
|
$
|
2,583
|
|||||||
Per
common share:
|
|||||||||||||||
Net
income - basic
|
$
|
0.49
|
$
|
0.42
|
$
|
0.44
|
$
|
0.47
|
|||||||
Net
income - diluted
|
0.49
|
0.42
|
0.44
|
0.46
|
|||||||||||
Cash
dividends
|
0.21
|
0.21
|
0.21
|
0.20
|
American
National Bankshares Inc. and Subsidiary
|
|||||||
December
31, 2006 and 2005
|
|||||||
(Dollars
in thousands, except share data)
|
|||||||
ASSETS
|
2006
|
2005
|
|||||
Cash
and due from banks
|
$
|
24,375
|
$
|
18,300
|
|||
Interest-bearing
deposits in other banks
|
1,749
|
9,054
|
|||||
Securities
available for sale, at fair value
|
148,748
|
147,274
|
|||||
Securities
held to maturity (fair value of $14,131
|
|||||||
in
2006 and $18,701 in 2005)
|
13,873
|
18,355
|
|||||
Total
securities
|
162,621
|
165,629
|
|||||
Loans
held for sale
|
1,662
|
714
|
|||||
Loans,
net of unearned income
|
542,228
|
417,087
|
|||||
Less
allowance for loan losses
|
(7,264
|
)
|
(6,109
|
)
|
|||
Net
loans
|
534,964
|
410,978
|
|||||
Bank
premises and equipment, at cost, less accumulated
|
|||||||
depreciation
of $14,755 in 2006 and $13,194 in 2005
|
12,438
|
7,769
|
|||||
Goodwill
|
22,468
|
-
|
|||||
Core
deposit intangibles, net
|
2,829
|
132
|
|||||
Accrued
interest receivable and other assets
|
14,614
|
10,927
|
|||||
Total
assets
|
$
|
777,720
|
$
|
623,503
|
|||
LIABILITIES
and SHAREHOLDERS' EQUITY
|
|||||||
Liabilities:
|
|||||||
Demand
deposits -- noninterest bearing
|
$
|
106,885
|
$
|
85,965
|
|||
Demand
deposits -- interest bearing
|
107,170
|
90,629
|
|||||
Money
market deposits
|
50,948
|
42,425
|
|||||
Savings
deposits
|
69,517
|
80,315
|
|||||
Time
deposits
|
274,008
|
192,317
|
|||||
Total
deposits
|
608,528
|
491,651
|
|||||
Repurchase
agreements
|
33,368
|
37,203
|
|||||
FHLB
borrowings
|
15,087
|
17,238
|
|||||
Trust
preferred capital notes
|
20,619
|
-
|
|||||
Accrued
interest payable and other liabilities
|
5,126
|
3,992
|
|||||
Total
liabilities
|
682,728
|
550,084
|
|||||
Shareholders'
equity:
|
|||||||
Preferred
stock, $5 par, 200,000 shares authorized,
|
|||||||
none
outstanding
|
-
|
-
|
|||||
Common
stock, $1 par, 10,000,000 shares authorized,
|
|||||||
6,161,865
shares outstanding at December 31, 2006 and
|
|||||||
5,441,758
shares outstanding at December 31, 2005
|
6,162
|
5,442
|
|||||
Capital
in excess of par value
|
26,414
|
9,588
|
|||||
Retained
earnings
|
64,584
|
59,109
|
|||||
Accumulated
other comprehensive income (loss), net
|
(2,168
|
)
|
(720
|
)
|
|||
Total
shareholders' equity
|
94,992
|
73,419
|
|||||
Total
liabilities and shareholders' equity
|
$
|
777,720
|
$
|
623,503
|
|||
The
accompanying notes are an integral part of the consolidated financial
statements.
|
American
National Bankshares Inc. and Subsidiary
|
||||||||||
For
the Years Ended December 31, 2006, 2005 and 2004
|
||||||||||
(Dollars
in thousands, except share and per share data)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Interest
Income:
|
||||||||||
Interest
and fees on loans
|
$
|
37,361
|
$
|
25,825
|
$
|
22,791
|
||||
Interest
and dividends on securities:
|
||||||||||
Taxable
|
5,034
|
4,090
|
5,028
|
|||||||
Tax-exempt
|
1,743
|
2,010
|
2,006
|
|||||||
Dividends
|
312
|
215
|
163
|
|||||||
Other
interest income
|
620
|
339
|
132
|
|||||||
Total
interest income
|
45,070
|
32,479
|
30,120
|
|||||||
Interest
Expense:
|
||||||||||
Interest
on deposits
|
13,349
|
6,902
|
5,979
|
|||||||
Interest
on repurchase agreements
|
1,384
|
901
|
528
|
|||||||
Interest
on other borrowings
|
921
|
937
|
972
|
|||||||
Trust
preferred capital notes
|
1,007
|
-
|
-
|
|||||||
Total
interest expense
|
16,661
|
8,740
|
7,479
|
|||||||
Net
Interest Income
|
28,409
|
23,739
|
22,641
|
|||||||
Provision
for Loan Losses
|
58
|
465
|
3,095
|
|||||||
Net
Interest Income after Provision for Loan Losses
|
28,351
|
23,274
|
19,546
|
|||||||
Noninterest
Income:
|
||||||||||
Trust
fees
|
3,374
|
3,012
|
2,976
|
|||||||
Service
charges on deposit accounts
|
2,654
|
2,446
|
2,411
|
|||||||
Other
fees and commissions
|
1,163
|
1,078
|
888
|
|||||||
Mortgage
banking income
|
709
|
665
|
612
|
|||||||
Securities
gains, net
|
62
|
53
|
157
|
|||||||
Impairment
of securities
|
-
|
-
|
(985
|
)
|
||||||
Other
|
496
|
642
|
451
|
|||||||
Total
noninterest income
|
8,458
|
7,896
|
6,510
|
|||||||
Noninterest
Expense:
|
||||||||||
Salaries
|
9,520
|
8,453
|
6,795
|
|||||||
Pension
and other employee benefits
|
2,506
|
1,975
|
1,699
|
|||||||
Occupancy
and equipment
|
2,977
|
2,476
|
2,457
|
|||||||
Bank
franchise tax
|
651
|
543
|
555
|
|||||||
Core
deposit intangible amortization
|
414
|
353
|
450
|
|||||||
Other
|
4,196
|
3,279
|
3,055
|
|||||||
Total
noninterest expense
|
20,264
|
17,079
|
15,011
|
|||||||
Income
Before Income Tax Provision
|
16,545
|
14,091
|
11,045
|
|||||||
Income
Tax Provision
|
5,119
|
4,097
|
3,032
|
|||||||
Net
Income
|
$
|
11,426
|
$
|
9,994
|
$
|
8,013
|
||||
Net
Income Per Common Share:
|
||||||||||
Basic
|
$
|
1.91
|
$
|
1.83
|
$
|
1.43
|
||||
Diluted
|
$
|
1.90
|
$
|
1.81
|
$
|
1.42
|
||||
Average
Common Shares Outstanding:
|
||||||||||
Basic
|
5,986,262
|
5,465,090
|
5,591,839
|
|||||||
Diluted
|
6,020,071
|
5,506,998
|
5,642,056
|
|||||||
The
accompanying notes are an integral part of the consolidated financial
statements.
|
American
National Bankshares Inc. and Subsidiary
|
|||||||||||||||||||
For
the Years Ended December 31, 2006, 2005, and 2004
|
|||||||||||||||||||
(Dollars
in thousands)
|
|||||||||||||||||||
Common
Stock
|
Capital
in
|
Accumulated
Other
|
Total
|
||||||||||||||||
Excess
of
|
Retained
|
Comprehensive
|
Shareholders'
|
||||||||||||||||
Shares
|
Amount
|
Par
Value
|
Earnings
|
Income
(Loss)
|
|
Equity
|
|||||||||||||
Balance,
December 31, 2003
|
5,660,419
|
$
|
5,660
|
$
|
9,437
|
$
|
55,538
|
$
|
1,296
|
$
|
71,931
|
||||||||
Net
income
|
-
|
-
|
-
|
8,013
|
-
|
8,013
|
|||||||||||||
Change
in unrealized losses on securities
|
|||||||||||||||||||
available for sale, net of tax of $(849)
|
-
|
-
|
-
|
-
|
(1,648
|
)
|
|||||||||||||
Add:
Reclassification adjustment for losses
|
|||||||||||||||||||
on impairment of securities, net of tax of $335
|
650
|
||||||||||||||||||
Less:
Reclassification adjustment for gains on
|
|||||||||||||||||||
securities
available for sale, net of tax of $(38)
|
(73
|
)
|
|||||||||||||||||
Other
comprehensive loss
|
(1,071
|
)
|
(1,071
|
)
|
|||||||||||||||
Comprehensive
income
|
6,942
|
||||||||||||||||||
Stock
repurchased and retired
|
(159,968
|
)
|
(160
|
)
|
(267
|
)
|
(3,360
|
)
|
-
|
(3,787
|
)
|
||||||||
Stock
options exercised
|
20,713
|
21
|
304
|
-
|
-
|
325
|
|||||||||||||
Cash
dividends paid
|
-
|
-
|
-
|
(4,411
|
)
|
-
|
(4,411
|
)
|
|||||||||||
Balance,
December 31, 2004
|
5,521,164
|
5,521
|
9,474
|
55,780
|
225
|
71,000
|
|||||||||||||
Net
income
|
-
|
-
|
-
|
9,994
|
-
|
9,994
|
|||||||||||||
Change
in unrealized losses on securities
|
|||||||||||||||||||
available for sale, net of tax of $(468)
|
-
|
-
|
-
|
-
|
(910
|
)
|
|||||||||||||
Less:
Reclassification adjustment for gains
|
|||||||||||||||||||
on
securities available for sale, net of
|
|||||||||||||||||||
tax
of $ (18)
|
-
|
-
|
-
|
-
|
(35
|
)
|
|||||||||||||
Other
comprehensive loss
|
(945
|
)
|
(945
|
)
|
|||||||||||||||
Comprehensive
income
|
9,049
|
||||||||||||||||||
Stock
repurchased and retired
|
(98,840
|
)
|
(98
|
)
|
(170
|
)
|
(2,136
|
)
|
-
|
(2,404
|
)
|
||||||||
Stock
options exercised
|
19,434
|
19
|
284
|
-
|
-
|
303
|
|||||||||||||
Cash
dividends paid
|
-
|
-
|
-
|
(4,529
|
)
|
-
|
(4,529
|
)
|
|||||||||||
Balance,
December 31, 2005
|
5,441,758
|
5,442
|
9,588
|
59,109
|
(720
|
)
|
73,419
|
||||||||||||
Net
income
|
-
|
-
|
-
|
11,426
|
-
|
11,426
|
|||||||||||||
Change
in unrealized losses on securities
|
|||||||||||||||||||
available
for sale, net of tax of $12
|
-
|
-
|
-
|
-
|
58
|
||||||||||||||
Less:
Reclassification adjustment for gains
|
|||||||||||||||||||
on
securities available for sale, net of
|
|||||||||||||||||||
tax
of $(21)
|
-
|
-
|
-
|
-
|
(41
|
)
|
|||||||||||||
Other
comprehensive income
|
17
|
17
|
|||||||||||||||||
Comprehensive
income
|
11,443
|
||||||||||||||||||
Adjustment
to initially apply SFAS
|
|||||||||||||||||||
158,
net of tax of ($789)
|
-
|
-
|
-
|
-
|
(1,465
|
)
|
(1,465
|
)
|
|||||||||||
Issuance
of common stock in exchange
|
|||||||||||||||||||
for
net assets acquisition
|
746,944
|
747
|
16,799
|
-
|
-
|
17,546
|
|||||||||||||
Stock
repurchased and retired
|
(39,100
|
)
|
(39
|
)
|
(132
|
)
|
(741
|
)
|
-
|
(912
|
)
|
||||||||
Stock
options exercised
|
12,263
|
12
|
159
|
-
|
-
|
171
|
|||||||||||||
Cash
dividends paid
|
-
|
-
|
-
|
(5,210
|
)
|
-
|
(5,210
|
)
|
|||||||||||
Balance,
December 31, 2006
|
6,161,865
|
$
|
6,162
|
$
|
26,414
|
$
|
64,584
|
$
|
(2,168
|
)
|
$
|
94,992
|
|||||||
The
accompanying notes are an integral part of the consolidated financial
statements.
|
American
National Bankshares Inc. and Subsidiary
|
||||||||||
For
the Years Ended December 31, 2006, 2005, and 2004
|
||||||||||
(Dollars
in thousands)
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Cash
Flows from Operating Activities:
|
||||||||||
Net
income
|
$
|
11,426
|
$
|
9,994
|
$
|
8,013
|
||||
Adjustments
to reconcile net income to net cash
provided by operating activities:
|
||||||||||
Provision
for loan losses
|
58
|
465
|
3,095
|
|||||||
Depreciation
|
993
|
866
|
966
|
|||||||
Core
deposit intangible amortization
|
414
|
353
|
450
|
|||||||
Net
amortization (accretion) of bond premiums and discounts
|
(51
|
)
|
227
|
609
|
||||||
Net
gain on sale or call of securities
|
(62
|
)
|
(53
|
)
|
(157
|
)
|
||||
Impairment
of securities
|
-
|
-
|
985
|
|||||||
Gain
on loans held for sale
|
(434
|
)
|
(431
|
)
|
(457
|
)
|
||||
Proceeds
from sales of loans held for sale
|
15,673
|
18,255
|
21,733
|
|||||||
Originations
of loans held for sale
|
(16,187
|
)
|
(17,567
|
)
|
(21,687
|
)
|
||||
Net
(gain) loss on foreclosed real estate
|
(7
|
)
|
(4
|
)
|
23
|
|||||
Valuation
allowance on foreclosed real estate
|
10
|
35
|
10
|
|||||||
Gain
on sale of premises and equipment
|
-
|
(6
|
)
|
(172
|
)
|
|||||
Deferred
income tax expense (benefit)
|
732
|
569
|
(1,309
|
)
|
||||||
(Increase)
decrease in interest receivable
|
(54
|
)
|
(16
|
)
|
336
|
|||||
(Increase)
decrease in other assets
|
(1,369
|
)
|
(953
|
)
|
138
|
|||||
Increase
(decrease) in interest payable
|
429
|
261
|
(137
|
)
|
||||||
Increase
(decrease) in other liabilities
|
(703
|
)
|
1,220
|
(1
|
)
|
|||||
Net
cash provided by operating activities
|
10,868
|
13,215
|
12,438
|
|||||||
Cash
Flows from Investing Activities:
|
||||||||||
Proceeds
from sales of securities available for sale
|
503
|
420
|
6,652
|
|||||||
Proceeds
from maturities and calls of securities available for sale
|
57,920
|
106,908
|
63,724
|
|||||||
Proceeds
from maturities and calls of securities held to maturity
|
4,491
|
3,870
|
17,675
|
|||||||
Purchases
of securities available for sale
|
(51,716
|
)
|
(90,268
|
)
|
(68,035
|
)
|
||||
Purchases
of securities held to maturity
|
-
|
-
|
(3,760
|
)
|
||||||
Net
decrease (increase) in loans
|
10,278
|
(12,218
|
)
|
(1,619
|
)
|
|||||
Proceeds
from sale of bank property and equipment
|
324
|
9
|
227
|
|||||||
Purchases
of bank property and equipment
|
(1,045
|
)
|
(1,121
|
)
|
(820
|
)
|
||||
Proceeds
from sales of foreclosed real estate
|
421
|
65
|
239
|
|||||||
Purchases
of foreclosed real estate
|
(230
|
)
|
(1
|
)
|
-
|
|||||
Cash
paid in bank acquisition
|
(17,087
|
)
|
-
|
-
|
||||||
Cash
acquired in bank acquisition
|
2,956
|
-
|
-
|
|||||||
Net
cash provided by investing activities
|
6,815
|
7,664
|
14,283
|
|||||||
Cash
Flows from Financing Activities:
|
||||||||||
Net
(decrease) increase in demand, money market,
|
||||||||||
and
savings deposits
|
(9,915
|
)
|
8,038
|
8,934
|
||||||
Net
decrease in time deposits
|
(15,180
|
)
|
(1,659
|
)
|
(25,350
|
)
|
||||
Net
decrease in repurchase agreements
|
(3,835
|
)
|
(1,742
|
)
|
(8,090
|
)
|
||||
Net
(decrease) increase in FHLB borrowings
|
(2,151
|
)
|
(4,100
|
)
|
338
|
|||||
Net
increase in other borrowings
|
18,119
|
-
|
-
|
|||||||
Cash
dividends paid
|
(5,210
|
)
|
(4,529
|
)
|
(4,411
|
)
|
||||
Repurchase
of stock
|
(912
|
)
|
(2,404
|
)
|
(3,787
|
)
|
||||
Proceeds
from exercise of stock options
|
171
|
303
|
325
|
|||||||
Net
cash used in financing activities
|
(18,913
|
)
|
(6,093
|
)
|
(32,041
|
)
|
||||
Net
(Decrease) Increase in Cash and Cash Equivalents
|
(1,230
|
)
|
14,786
|
(5,320
|
)
|
|||||
Cash
and Cash Equivalents at Beginning of Period
|
27,354
|
12,568
|
17,888
|
|||||||
Cash
and Cash Equivalents at End of Period
|
$
|
26,124
|
$
|
27,354
|
$
|
12,568
|
||||
Supplemental
Schedule of Cash and Cash Equivalents:
|
||||||||||
Cash
and due from banks
|
$
|
24,375
|
$
|
18,300
|
$
|
12,371
|
||||
Interest
bearing deposits in other banks
|
1,749
|
9,054
|
197
|
|||||||
$
|
26,124
|
$
|
27,354
|
$
|
12,568
|
|||||
Supplemental
Disclosure of Cash Flow Information:
|
||||||||||
Interest
paid
|
$
|
14,906
|
$
|
8,479
|
$
|
7,617
|
||||
Income
taxes paid
|
3,738
|
4,452
|
3,763
|
|||||||
Transfer
of loans to other real estate owned
|
115
|
62
|
190
|
|||||||
Unrealized
gain (loss) on securities available for sale
|
8
|
(1,431
|
)
|
(1,624
|
)
|
|||||
Transactions
related to the merger acquisition:
|
||||||||||
Increase
in assets and liabilities
|
||||||||||
Cash
and due from banks
|
$
|
2,956
|
-
|
-
|
||||||
Securities
|
8,020
|
-
|
-
|
|||||||
Loans,
net
|
134,217
|
-
|
-
|
|||||||
Bank
premises and equipment, net
|
4,930
|
-
|
-
|
|||||||
Goodwill
and core deposit intangibles
|
25,580
|
-
|
-
|
|||||||
Accrued
interest receivable and other assets
|
5,481
|
-
|
-
|
|||||||
Demand
deposits - noninterest bearing
|
21,376
|
-
|
-
|
|||||||
Demand
deposits - interest bearing
|
120,596
|
-
|
-
|
|||||||
Borrowings
|
2,500
|
-
|
-
|
|||||||
Accrued
interest payable and other liabilities
|
2,079
|
-
|
||||||||
Issuance
of common stock
|
17,546
|
-
|
-
|
|||||||
The
accompanying notes are an integral part of the consolidated financial
statements.
|
|
December
31, 2006
|
||||||||||||
(in
thousands)
|
Amortized
|
Unrealized
|
Unrealized
|
Estimated
|
|||||||||
|
Cost
|
Gains
|
Losses
|
Fair
Value
|
|||||||||
Securities
available for sale:
|
|||||||||||||
Federal
agencies
|
$
|
88,106
|
$
|
40
|
$
|
819
|
$
|
87,327
|
|||||
Mortgage-backed
|
19,225
|
104
|
353
|
18,976
|
|||||||||
State
and municipal
|
33,608
|
168
|
423
|
33,353
|
|||||||||
Corporate
|
2,490
|
3
|
56
|
2,437
|
|||||||||
Equity
securities:
|
|||||||||||||
FHLB
stock - restricted
|
2,248
|
-
|
-
|
2,248
|
|||||||||
Federal
Reserve stock - restricted
|
1,429
|
-
|
-
|
1,429
|
|||||||||
FNMA
and FHLMC preferred stock
|
2,643
|
254
|
-
|
2,897
|
|||||||||
Other
|
81
|
-
|
-
|
81
|
|||||||||
Total
securities available for sale
|
149,830
|
569
|
1,651
|
148,748
|
|||||||||
Securities
held to maturity:
|
|||||||||||||
Federal
agencies
|
1,001
|
-
|
12
|
989
|
|||||||||
Mortgage-backed
|
385
|
9
|
-
|
394
|
|||||||||
State
and municipal
|
12,487
|
291
|
30
|
12,748
|
|||||||||
Total
securities held to maturity
|
13,873
|
300
|
42
|
14,131
|
|||||||||
Total
securities
|
$
|
163,703
|
$
|
869
|
$
|
1,693
|
$
|
162,879
|
|||||
December
31, 2005
|
|||||||||||||
(in
thousands)
|
Amortized
|
Unrealized
|
Unrealized
|
Estimated
|
|||||||||
|
Cost
|
Gains
|
Losses
|
Fair
Value
|
|||||||||
Securities
available for sale:
|
|||||||||||||
Federal
agencies
|
$
|
80,764
|
$
|
2
|
$
|
1,221
|
$
|
79,545
|
|||||
Mortgage-backed
|
20,795
|
104
|
346
|
20,553
|
|||||||||
State
and municipal
|
32,828
|
159
|
466
|
32,521
|
|||||||||
Corporate
|
8,025
|
52
|
71
|
8,006
|
|||||||||
Equity
securities:
|
|||||||||||||
FHLB
stock - restricted
|
2,060
|
-
|
-
|
2,060
|
|||||||||
Federal
Reserve stock - restricted
|
363
|
-
|
-
|
363
|
|||||||||
FNMA
and FHLMC preferred stock
|
3,104
|
120
|
-
|
3,224
|
|||||||||
Other
|
425
|
577
|
-
|
1,002
|
|||||||||
Total
securities available for sale
|
148,364
|
1,014
|
2,104
|
147,274
|
|||||||||
Securities
held to maturity:
|
|||||||||||||
Federal
agencies
|
1,499
|
-
|
28
|
1,471
|
|||||||||
Mortgage-backed
|
482
|
12
|
-
|
494
|
|||||||||
State
and municipal
|
16,374
|
407
|
45
|
16,736
|
|||||||||
Total
securities held to maturity
|
18,355
|
419
|
73
|
18,701
|
|||||||||
Total
securities
|
$
|
166,719
|
$
|
1,433
|
$
|
2,177
|
$
|
165,975
|
|||||
Available
for Sale
|
Held
to Maturity
|
||||||||||||
Amortized
|
Estimated
|
Amortized
|
Estimated
|
||||||||||
(in
thousands)
|
Cost
|
Fair
Value
|
Cost
|
Fair
Value
|
|||||||||
Due
in one year or less
|
$
|
37,673
|
$
|
37,454
|
$
|
1,631
|
$
|
1,621
|
|||||
Due
after one year
|
|||||||||||||
through five years
|
62,663
|
61,973
|
7,290
|
7,358
|
|||||||||
Due
after five years
|
|||||||||||||
through ten years
|
19,620
|
19,460
|
3,636
|
3,784
|
|||||||||
Due
after ten years
|
4,248
|
4,230
|
931
|
974
|
|||||||||
Equity
securities
|
6,401
|
6,655
|
-
|
-
|
|||||||||
Mortgage-backed
securities
|
19,225
|
18,976
|
385
|
394
|
|||||||||
$
|
149,830
|
$
|
148,748
|
$
|
13,873
|
$
|
14,131
|
(in thousands) |
2006
|
2005
|
2004
|
||||||||
Realized
gains
|
$
|
62
|
$
|
54
|
$
|
167
|
|||||
Realized
losses
|
-
|
1
|
10
|
Total
|
Less
than 12 Months
|
12
Months or More
|
|||||||||||||||||
(in
thousands)
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||
Federal
agencies
|
$
|
72,091
|
$
|
831
|
$
|
21,439
|
$
|
113
|
$
|
50,652
|
$
|
718
|
|||||||
Mortgage-backed
|
11,091
|
353
|
242
|
2
|
10,849
|
351
|
|||||||||||||
State
and municipal
|
25,310
|
453
|
3,784
|
51
|
21,526
|
402
|
|||||||||||||
Corporate
|
1,429
|
56
|
-
|
-
|
1,429
|
56
|
|||||||||||||
Total
|
$
|
109,921
|
$
|
1,693
|
$
|
25,465
|
$
|
166
|
$
|
84,456
|
$
|
1,527
|
Total
|
Less
than 12 Months
|
12
Months or More
|
|||||||||||||||||
(in
thousands)
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
Fair
Value
|
Unrealized
Loss
|
|||||||||||||
Federal
agencies
|
$
|
73,130
|
$
|
1,249
|
$
|
18,667
|
$
|
190
|
$
|
54,463
|
$
|
1,059
|
|||||||
Mortgage-backed
|
15,048
|
346
|
8,717
|
203
|
6,331
|
143
|
|||||||||||||
State
and municipal
|
25,020
|
511
|
16,680
|
233
|
8,340
|
278
|
|||||||||||||
Corporate
|
1,414
|
71
|
-
|
-
|
1,414
|
71
|
|||||||||||||
Total
|
$
|
114,612
|
$
|
2,177
|
$
|
44,064
|
$
|
626
|
$
|
70,548
|
$
|
1,551
|
(in
thousands)
|
December
31, 2006
|
December
31, 2005
|
|||||
Construction
and land development
|
$
|
69,404
|
$
|
50,092
|
|||
Commercial
real estate
|
186,639
|
142,968
|
|||||
Residential
real estate
|
131,126
|
94,405
|
|||||
Home
equity
|
52,531
|
42,178
|
|||||
Total
real estate
|
439,700
|
329,643
|
|||||
Commercial
and industrial
|
91,511
|
76,735
|
|||||
Consumer
|
11,017
|
10,709
|
|||||
Total
loans
|
$
|
542,228
|
$
|
417,087
|
|||
(in
thousands)
|
December
31, 2006
|
December
31, 2005
|
|||||
Impaired loans with a valuation allowance | $ | 1,376 | $ | 3,532 | |||
Impaired
loans without a valuation allowance
|
-
|
-
|
|||||
Total
impaired loans
|
$
|
1,376
|
$
|
3,532
|
|||
Allowance
provided for impaired loans,
|
|||||||
included in the allowance for loan losses
|
$
|
241
|
$
|
639
|
|||
Nonaccrual
loans excluded from the
|
|||||||
impaired loan disclosure
|
$
|
2,311
|
$
|
1,222
|
|
As
of December 31,
|
|||||||||
(in thousands) |
2006
|
2005
|
2004
|
|||||||
Average
balance in impaired loans
|
$
|
2,534
|
$
|
6,043
|
$
|
3,527
|
||||
Interest
income recognized on impaired loans
|
$
|
121
|
$
|
105
|
$
|
71
|
||||
Interest
income recognized on nonaccrual loans
|
$
|
-
|
$
|
73
|
$
|
146
|
||||
Loans
past due 90 days and still accruing interest
|
$
|
-
|
$
|
56
|
$
|
-
|
(in
thousands)
|
As
of December 31,
2006
|
|||
Commercial
|
$
|
2,030
|
||
Consumer
|
411
|
|||
Outstanding
balance
|
$
|
2,441
|
||
Carrying
amount
|
$
|
1,351
|
(in
thousands)
|
Accretable
Yield
|
|||
Balance
at December 31, 2005
|
$
|
-
|
||
Additions
|
865
|
|||
Accretion
|
(159
|
)
|
||
Reclassifications from (to)
nonaccretable difference
|
(14
|
)
|
||
Disposals
|
-
|
|||
Balance
at December 31, 2006
|
$
|
692
|
||
2006
|
||||
Contractually
required payments
receivable at acquisition:
|
||||
Commercial
|
$
|
3,321
|
||
Consumer
|
438
|
|||
Subtotal
|
$
|
3,759
|
||
Cash
flows expected to be
collected at acquisition
|
$
|
2,414
|
||
Basis
in acquired loans at acquisition
|
1,549
|
Years
Ended December 31,
|
||||||||||
(in
thousands)
|
2006
|
2005
|
2004
|
|||||||
Allowance
for Loan Losses
|
||||||||||
Balance,
beginning of year
|
$
|
6,109
|
$
|
7,982
|
$
|
5,292
|
||||
Allowance
acquired in merger
|
1,598
|
-
|
-
|
|||||||
Provision
for loan losses
|
58
|
465
|
3,095
|
|||||||
Charge-offs
|
(913
|
)
|
(2,577
|
)
|
(655
|
)
|
||||
Recoveries
|
412
|
239
|
250
|
|||||||
Balance,
end of year
|
$
|
7,264
|
$
|
6,109
|
$
|
7,982
|
||||
|
Years
Ended December 31,
|
|||||||||
(in
thousands)
|
2006
|
2005
|
2004
|
|||||||
Reserve
for unfunded lending commitments
|
||||||||||
Balance,
beginning of year
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Provision
for unfunded commitments
|
123
|
-
|
-
|
|||||||
Balance,
end of year
|
$
|
123
|
$
|
-
|
$
|
-
|
|
As
of December 31,
|
||||||
(in thousands) |
2006
|
2005
|
|||||
Land
|
$
|
2,933
|
$
|
1,725
|
|||
Buildings
|
11,542
|
8,290
|
|||||
Leasehold
improvements
|
492
|
446
|
|||||
Furniture
and equipment
|
12,226
|
10,502
|
|||||
27,193
|
20,963
|
||||||
Accumulated
depreciation
|
(14,755
|
)
|
(13,194
|
)
|
|||
Bank
premises and equipment, net
|
$
|
12,438
|
$
|
7,769
|
(in
thousands)
|
Minimum
Lease
|
|||
Year
|
Payments
|
|||
2007
|
$
|
320
|
||
2008
|
277
|
|||
2009
|
236
|
|||
2010
|
179
|
|||
2011
|
62
|
|||
2012
and after
|
52
|
|||
$
|
1,126
|
Balance as of January 1, 2006 |
$
|
- | ||
Goodwill
acquired during year
|
22,468
|
|||
Impairment
losses
|
-
|
|||
Balance
as of December 31, 2006
|
$
|
22,468
|
||
As
of December 31,
|
|||||||||||||
2006
|
2005
|
||||||||||||
(in
thousands)
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
|||||||||
Amortized
intangible assets:
|
|||||||||||||
Core
deposit intangibles
|
$
|
7,616
|
$
|
(4,787
|
)
|
$
|
4,504
|
$
|
(4,372
|
)
|
|||
Aggregate
Amortization Expense:
|
|||||||||||||
For
year ended December 31, 2006
|
$
|
414
|
|||||||||||
Estimated
Amortization Expense:
|
|||||||||||||
For
year ending December 31, 2007
|
$
|
377
|
|||||||||||
For
year ending December 31, 2008
|
|
377
|
|||||||||||
For
year ending December 31, 2009
|
|
377
|
|||||||||||
For
year ending December 31, 2010
|
|
377
|
|||||||||||
For
year ending December 31, 2011
|
|
377
|
|||||||||||
Thereafter
|
|
944
|
(in
thousands)
|
||||
2007
|
$
|
179,367
|
||
2008
|
51,445
|
|||
2009
|
16,562
|
|||
2010
|
9,962
|
|||
2011
|
16,649
|
|||
Thereafter
|
23
|
|||
$
|
274,008
|
As
of December 31,
|
|||||||
2006
|
2005
|
||||||
(in
thousands)
|
|||||||
Repurchase
agreements
|
$
|
33,368
|
$
|
37,203
|
|||
Weighted
interest rate
|
3.69
|
%
|
2.13
|
%
|
|||
Average
for the year ended:
|
|||||||
Outstanding
|
$
|
42,210
|
$
|
43,762
|
|||
Interest rate
|
3.44
|
%
|
2.13
|
%
|
|||
Maximum
month-end outstanding
|
$
|
54,527
|
$
|
47,011
|
|||
Due
by
December
31
|
2006
Advance
Amount
|
Weighted
Average
Rate
|
Due
by
December
31
|
2005
Advance
Amount
|
Weighted
Average
Rate
|
|||||||||||
|
|
|
||||||||||||||
|
|
|
|
|
|
|||||||||||
2006
|
$ | 2,000 |
4.08
|
% | ||||||||||||
2007
|
$
|
1,000 |
4.33
|
% |
2007
|
1,000
|
4.33
|
|||||||||
2008
|
8,000
|
5.25
|
2008
|
8,000
|
5.25
|
|||||||||||
2009
|
5,000
|
5.26
|
2009
|
5,000
|
5.26
|
|||||||||||
2014
|
1,087
|
3.78
|
2014
|
1,238
|
3.78
|
|||||||||||
$
|
15,087
|
4.80
|
%
|
$
|
17,238
|
4.96
|
%
|
|||||||||
(in
thousands, except per share data)
|
2005
|
2004
|
|||||
Net
income, as reported
|
$
|
9,994
|
$
|
8,013
|
|||
Deduct:
total stock-based compensation expense determined under fair
value- based method for all awards
|
-
|
(634
|
)
|
||||
Pro
forma net income
|
$
|
9,994
|
$
|
7,379
|
|||
Earnings
per share:
|
|||||||
Basic, as reported
|
$
|
1.83
|
$
|
1.43
|
|||
Basic, pro forma
|
$
|
1.83
|
$
|
1.32
|
|||
Diluted, as reported
|
$
|
1.81
|
$
|
1.42
|
|||
Diluted, pro forma
|
$
|
1.81
|
$
|
1.31
|
Option
Shares
|
|
Wtd. Avg. Exercise Price
|
|||
Outstanding at December 31, 2003 |
224,037
|
$
|
18.77 | ||
Granted
|
55,800
|
24.22
|
|||
Exercised
|
(20,713
|
)
|
15.72
|
||
Forfeited
|
(9,728
|
)
|
25.49
|
||
Outstanding
at December 31, 2004
|
249,396
|
19.98
|
|||
Granted
|
-
|
-
|
|||
Exercised
|
(19,434
|
)
|
15.60
|
||
Forfeited
|
(15,000
|
)
|
25.18
|
||
Outstanding
at December 31, 2005
|
214,962
|
20.02
|
|||
Granted
|
-
|
-
|
|||
Exercised
|
(12,213
|
)
|
14.01
|
||
Forfeited
|
(900
|
)
|
25.80
|
||
Outstanding
at December 31, 2006
|
201,849
|
$
|
20.36
|
(in
thousands)
|
As
of December 31,
|
||||||
2006
|
2005
|
||||||
Deferred
tax assets:
|
|||||||
Allowance for loan losses
|
$
|
2,398
|
$
|
2,077
|
|||
Nonaccural interest
|
134
|
71
|
|||||
Deferred compensation
|
232
|
240
|
|||||
Core deposit intangible
|
-
|
473
|
|||||
Preferred stock impairment, net of valuation allowance
|
261
|
301
|
|||||
Net unrealized losses on securities
|
379
|
370
|
|||||
Loans
|
1,017
|
-
|
|||||
Other
|
56
|
23
|
|||||
Total deferred tax assets
|
4,477
|
3,555
|
|||||
Deferred
tax liabilities:
|
|||||||
Depreciation
|
847
|
423
|
|||||
Accretion of discounts on securities
|
27
|
23
|
|||||
Core deposit intangibles
|
562
|
-
|
|||||
Prepaid pension
|
11
|
485
|
|||||
Other
|
311
|
126
|
|||||
Total deferred tax liabilities
|
1,758
|
1,057
|
|||||
Net deferred tax assets
|
$
|
2,719
|
$
|
2,498
|
(in
thousands)
|
2006
|
2005
|
2004
|
|||||||
Taxes
currently payable
|
$
|
4,387
|
$
|
3,528
|
$
|
4,341
|
||||
Deferred
tax expense (benefit)
|
732
|
569
|
(1,309
|
)
|
||||||
$
|
5,119
|
$
|
4,097
|
$
|
3,032
|
2006
|
2005
|
2004
|
||||||||
Federal
statutory rate
|
34.4
|
%
|
34.3
|
%
|
34.1
|
%
|
||||
Nontaxable
interest income
|
(3.7
|
)
|
(5.0
|
)
|
(6.6
|
)
|
||||
Other
|
0.2
|
(0.2
|
)
|
-
|
||||||
Effective
rate
|
30.9
|
%
|
29.1
|
%
|
27.5
|
%
|
2006
|
2005
|
2004
|
|||||||||||||||||
|
Shares
|
Per
Share
Amount
|
Shares
|
Per
Share
Amount
|
Shares
|
Per
Share
Amount
|
|||||||||||||
Basic
earnings per share
|
5,986,262
|
$
|
1.91
|
5,465,090
|
$
|
1.83
|
5,591,839
|
$
|
1.43
|
||||||||||
Effect
of dilutive securities, stock options
|
33,809
|
(.01
|
)
|
41,908
|
(.02
|
)
|
50,217
|
(.01
|
)
|
||||||||||
Diluted
earnings per share
|
6,020,071
|
$
|
1.90
|
5,506,998
|
$
|
1.81
|
5,642,056
|
$
|
1.42
|
As
of December 31,
|
|||||||
(in
thousands)
|
2006
|
2005
|
|||||
Commitments
to extend credit
|
$
|
155,038
|
$
|
116,898
|
|||
Standby
letters of credit
|
3,125
|
2,625
|
|||||
Rate
lock commitments
|
2,246
|
1,716
|
|||||
Balance at beginning of year |
$
|
23,776 | |
Additions
|
21,837
|
||
Repayments
|
(27,457
|
)
|
|
Balance
at end of
year
|
$
|
18,156
|
(in
thousands)
|
December
31,
2006
|
December
31, 2005
|
December
31,
2004
|
||||||
Change
in benefit obligation:
|
|||||||||
Projected
benefit obligation at beginning of year
|
$
|
7,225
|
$
|
6,628
|
$
|
5,710
|
|||
Service
cost
|
621
|
438
|
432
|
||||||
Interest
cost
|
351
|
367
|
361
|
||||||
Plan
amendments
|
101
|
(113
|
)
|
-
|
|||||
Actuarial
loss
|
6
|
734
|
257
|
||||||
Benefits
paid
|
(1,266
|
)
|
(829
|
)
|
(132
|
)
|
|||
Projected
benefit obligation at end of year
|
$
|
7,038
|
$
|
7,225
|
$
|
6,628
|
|||
Change
in plan assets:
|
|||||||||
Fair
value of plan assets at beginning of year
|
$
|
6,056
|
$
|
6,276
|
$
|
5,652
|
|||
Actual
return on plan assets
|
780
|
277
|
399
|
||||||
Employer
contributions
|
1,500
|
332
|
357
|
||||||
Benefits
paid
|
(1,266
|
)
|
(829
|
)
|
(132
|
)
|
|||
Fair
value of plan assets at end of year
|
$
|
7,070
|
$
|
6,056
|
$
|
6,276
|
|||
Funded
status at end of year
|
$
|
32
|
$
|
(1,169
|
)
|
$
|
(352
|
)
|
|
Amounts
recognized in the Consolidated Balance
Sheets
|
|||||||||
Other
asset
|
$
|
32
|
$
|
1,425
|
$
|
1,445
|
|||
Amounts
Recognized in Accumulated Other Comprehensive
Loss
|
|||||||||
Net
loss
|
$
|
2,243
|
N/A
|
N/A
|
|||||
Prior
service cost
|
11
|
N/A
|
N/A
|
||||||
Net
obligation at transition
|
-
|
N/A
|
N/A
|
||||||
Deferred
income tax benefit
|
(789
|
)
|
N/A
|
N/A
|
|||||
Amount
recognized
|
1,465
|
N/A
|
N/A
|
||||||
Funded
Status
|
|||||||||
Benefit
obligation
|
$
|
(7,038
|
)
|
$
|
(7,225
|
)
|
$
|
(6,628
|
)
|
Fair
value of assets
|
7,070
|
6,056
|
6,276
|
||||||
Unrecognized
net actuarial loss
|
2,243
|
2,708
|
1,832
|
||||||
Unrecognized
net obligation at transition
|
-
|
-
|
-
|
||||||
Unrecognized
prior service cost
|
11
|
(114
|
)
|
(35
|
)
|
||||
Prepaid
benefit cost included in other assets before adoption of SFAS
158
|
2,286
|
1,425
|
1,445
|
||||||
Components
of Net Periodic Benefit Cost
|
|||||||||
Service
cost
|
$
|
621
|
$
|
438
|
$
|
432
|
|||
Interest
cost
|
351
|
367
|
361
|
||||||
Expected
return on plan assets
|
(521
|
)
|
(502
|
)
|
(452
|
)
|
|||
Amortization
of prior service cost
|
(23
|
)
|
(34
|
)
|
(23
|
)
|
|||
Amortization
of net obligation at transition
|
-
|
-
|
(5
|
)
|
|||||
Recognized
net actuarial loss
|
211
|
83
|
82
|
||||||
Net
periodic benefit cost
|
639
|
352
|
400
|
||||||
Other
Changes in Plan Assets and Benefit Obligations Recognized in Other
Comprehensive Loss
|
|||||||||
Net
loss
|
$
|
2,243
|
N/A
|
N/A
|
|||||
Prior
service cost
|
11
|
N/A
|
N/A
|
||||||
Amortization
of prior service cost
|
-
|
N/A
|
N/A
|
||||||
Net
obligation at transition
|
-
|
N/A
|
N/A
|
||||||
Deferred
tax benefit
|
(789
|
)
|
N/A
|
N/A
|
|||||
Total
recognized in other comprehensive loss
|
1,465
|
N/A
|
N/A
|
||||||
Total
Recognized in Net Periodic Benefit Cost and Other Comprehensive
Loss
|
$
|
2,104
|
$
|
352
|
$
|
400
|
|||
Weighted-average
assumptions at end of year
|
|||||||||
Discount
rate used for net periodic pension cost
|
5.75
|
%
|
6.00
|
%
|
6.50
|
%
|
|||
Discount
rate used for disclosure
|
6.00
|
%
|
5.75
|
%
|
6.00
|
%
|
|||
Expected
return on plan assets
|
8.00
|
%
|
8.00
|
%
|
8.00
|
%
|
|||
Rate
of compensation increase
|
4.00
|
%
|
4.00
|
%
|
4.00
|
%
|
As
of December 31, 2006
|
||||||||||
(in
thousands)
|
Before
Application
of
SFAS 158
|
Adjustments
|
After
Application
of
SFAS 158
|
|||||||
Asset
for pension benefits
|
$
|
2,286
|
$
|
(2,254
|
)
|
$
|
32
|
|||
Deferred
income taxes
|
800
|
789
|
11
|
|||||||
Total
assets
|
779,974
|
(2,254
|
)
|
777,720
|
||||||
Accumulated
other comprehensive income
|
(703
|
)
|
(1,465
|
)
|
(2,168
|
)
|
||||
Total
shareholder’s equity
|
96,457
|
(1,465
|
)
|
94,992
|
Asset
Category
|
October
31, 2006
|
October
31, 2005
|
|||||
Fixed
Income
|
31.6
|
%
|
23.1
|
%
|
|||
Equity
|
66.9
|
74.0
|
|||||
Other
|
1.5
|
2.9
|
|||||
Total
|
100.0
|
%
|
100.0
|
%
|
Year
|
Amount
|
|||
2007 | $ |
20
|
||
2008
|
27
|
|||
2009
|
41
|
|||
2010
|
83
|
|||
2011
|
203
|
|||
2012-2016
|
1,620
|
December
31, 2006
|
December
31, 2005
|
||||||||||||
(in
thousands)
|
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||
Amount
|
Value
|
Amount
|
Value
|
||||||||||
Financial
assets: Cash and due from banks |
$
|
26,124 | $ | 26,124 | $ |
27,354
|
$ |
27,354
|
|||||
Securities
available for sale
|
148,748
|
148,748
|
147,274
|
147,274
|
|||||||||
Securities
held to maturity
|
13,873
|
14,131
|
18,355
|
18,701
|
|||||||||
Loans
held for sale
|
1,662
|
1,662
|
714
|
714
|
|||||||||
Loans,
net of allowance
|
534,964
|
530,373
|
410,978
|
407,065
|
|||||||||
Accrued
interest receivable
|
3,862
|
3,862
|
2,939
|
2,939
|
|||||||||
Financial
liabilities:
|
|||||||||||||
Deposits
|
$
|
608,528
|
$
|
606,466
|
$
|
491,651
|
$
|
489,568
|
|||||
Repurchase
agreements
|
33,368
|
33,368
|
37,203
|
37,203
|
|||||||||
Other
borrowings
|
15,087
|
17,017
|
17,238
|
19,706
|
|||||||||
Trust
preferred capital notes
|
20,619
|
20,619
|
-
|
-
|
|||||||||
Accrued
interest payable
|
1,683
|
1,683
|
960
|
960
|
|||||||||
Off
balance sheet instruments:
|
|||||||||||||
Commitments
to extend credit
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||
Standby
letters of credit
|
-
|
31
|
-
|
26
|
|||||||||
Rate
lock commitments
|
-
|
-
|
-
|
-
|
To
Be Well
|
||||||||||||||||||||
Minimum
|
Capitalized
Under
|
|||||||||||||||||||
Capital
|
Prompt
Corrective
|
|||||||||||||||||||
(in thousands) |
Actual
|
Requirement
|
Action
Provisions
|
|||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||
As
of December 31, 2006
|
||||||||||||||||||||
Total
Capital Company |
$
|
99,074
|
17.45
|
%
|
$
|
45,410
|
>8.0
|
%
|
|
|||||||||||
Bank
|
93,257
|
16.43
|
45,402
|
>8.0
|
$
|
56,752
|
>10.0
|
%
|
||||||||||||
Tier
I Capital
|
||||||||||||||||||||
Company
|
91,863
|
16.18
|
22,705
|
>4.0
|
||||||||||||||||
Bank
|
86,976
|
15.33
|
22,701
|
>4.0
|
34,051
|
>6.0
|
||||||||||||||
Leverage
Capital
|
||||||||||||||||||||
Company
|
91,863
|
12.15
|
30,241
|
>4.0
|
||||||||||||||||
Bank
|
86,976
|
11.53
|
30,181
|
>4.0
|
37,726
|
>5.0
|
||||||||||||||
As
of December 31, 2005
|
||||||||||||||||||||
Total
Capital
|
||||||||||||||||||||
Company
|
$
|
80,038
|
17.57
|
%
|
$
|
36,433
|
>8.0
|
% |
|
|||||||||||
Bank
|
77,343
|
17.01
|
36,375
|
>8.0
|
$
|
45,468
|
>10.0
|
%
|
||||||||||||
Tier
I Capital
|
||||||||||||||||||||
Company
|
74,026
|
16.25
|
18,216
|
>4.0
|
||||||||||||||||
Bank
|
72,321
|
15.91
|
18,187
|
>4.0
|
27,281
|
>6.0
|
||||||||||||||
Leverage
Capital
|
||||||||||||||||||||
Company
|
74,026
|
11.94
|
24,796
|
>4.0
|
||||||||||||||||
Bank
|
72,321
|
11.69
|
24,744
|
>4.0
|
30,930
|
>5.0
|
2006
|
||||||||||||||||
(in
thousands)
|
Trust
and
|
|||||||||||||||
Community
|
Investment
|
Intersegment
|
||||||||||||||
Banking
|
Services
|
Other
|
Eliminations
|
Total
|
||||||||||||
Interest
income
|
$
|
45,060
|
$
|
-
|
$
|
10
|
$
|
-
|
$
|
45,070
|
||||||
Interest
expense
|
15,629
|
-
|
1,032
|
-
|
16,661
|
|||||||||||
Noninterest
income - external customers
|
4,622
|
3,794
|
42
|
-
|
8,458
|
|||||||||||
Operating
income before income taxes
|
15,747
|
1,963
|
(1,165
|
)
|
-
|
16,545
|
||||||||||
Depreciation
and amortization
|
1,383
|
22
|
2
|
-
|
1,407
|
|||||||||||
Total
assets
|
777,001
|
-
|
719
|
-
|
777,720
|
|||||||||||
Capital
expenditures
|
1,044
|
1
|
-
|
-
|
1,045
|
|||||||||||
2005
|
||||||||||||||||
|
Trust
and
|
|||||||||||||||
|
Community
|
Investment
|
Intersegment
|
|||||||||||||
|
Banking
|
Services
|
Other
|
Eliminations
|
Total
|
|||||||||||
Interest
income
|
$
|
32,479
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
32,479
|
||||||
Interest
expense
|
8,740
|
-
|
-
|
-
|
8,740
|
|||||||||||
Noninterest
income - external customers
|
4,482
|
3,398
|
16
|
-
|
7,896
|
|||||||||||
Noninterest
income - internal customers
|
-
|
36
|
-
|
(36
|
)
|
-
|
||||||||||
Operating
income before income taxes
|
12,822
|
1,455
|
(186
|
)
|
-
|
14,091
|
||||||||||
Depreciation
and amortization
|
1,194
|
22
|
2
|
-
|
1,219
|
|||||||||||
Total
assets
|
622,468
|
-
|
1,035
|
-
|
623,503
|
|||||||||||
Capital
expenditures
|
1,062
|
59
|
-
|
-
|
1,121
|
2004
|
||||||||||||||||
|
||||||||||||||||
Trust
and
|
||||||||||||||||
Community
|
Investment
|
Intersegment
|
||||||||||||||
|
Banking
|
Services
|
Other
|
Eliminations
|
Total
|
|||||||||||
Interest
income
|
$
|
30,120
|
$
|
-
|
$
|
53
|
$
|
(53
|
)
|
$
|
30,120
|
|||||
Interest
expense
|
7,479
|
-
|
53
|
(53
|
)
|
7,479
|
||||||||||
Noninterest
income - external customers
|
2,712
|
2,976
|
822
|
-
|
6,510
|
|||||||||||
Noninterest
income - internal customers
|
-
|
48
|
-
|
(48
|
)
|
-
|
||||||||||
Operating
income before income taxes
|
9,321
|
1,694
|
30
|
-
|
11,045
|
|||||||||||
Depreciation
and amortization
|
1,389
|
21
|
6
|
-
|
1,416
|
|||||||||||
Total
assets
|
618,325
|
-
|
2,444
|
(1,704
|
)
|
619,065
|
||||||||||
Capital
expenditures
|
790
|
29
|
-
|
-
|
819
|
As
of December 31,
|
|||||||||
Condensed
Balance Sheets
|
2006
|
2005
|
|||||||
Cash | $ | 4,452 | $ | 968 | |||||
Investment
in subsidiaries
|
110,724
|
71,353
|
|||||||
Other
assets
|
571
|
1,295
|
|||||||
Total
Assets
|
$
|
115,747
|
$
|
73,616
|
|||||
Liabilities
|
$
|
136
|
$
|
197
|
|||||
Trust
preferred capital notes
|
20,619
|
-
|
|||||||
Shareholders’
equity
|
94,992
|
73,419
|
|||||||
Total
Liabilities and Shareholders’ Equity
|
$
|
115,747
|
$
|
73,616
|
For
the Years Ended December 31,
|
||||||||||
Condensed
Statements of Income
|
2006
|
2005
|
2004
|
|||||||
Dividends from subsidiary | $ |
7,900
|
$ |
7,000
|
$ | 7,400 | ||||
Income
|
52
|
16
|
15
|
|||||||
Expenses
|
1,217
|
201
|
179
|
|||||||
Income
taxes (benefit)
|
(396
|
)
|
(63
|
)
|
(56
|
)
|
||||
Income
before equity in undistributed
|
||||||||||
earnings
of subsidiary
|
7,131
|
6,878
|
7,292
|
|||||||
Equity
in undistributed earnings of subsidiary
|
4,295
|
3,116
|
721
|
|||||||
Net
Income
|
$
|
11,426
|
$
|
9,994
|
$
|
8,013
|
||||
|
For
the Years Ended December 31,
|
|||||||||
Condensed
Statements of Cash Flows
|
2006
|
2005
|
2004
|
|||||||
Cash
provided by dividends received
|
||||||||||
from
subsidiary
|
$
|
7,900
|
$
|
7,000
|
$
|
7,400
|
||||
Cash
used for payment of dividends
|
(5,210
|
)
|
(4,529
|
)
|
(4,411
|
)
|
||||
Cash
used for repurchase of stock
|
(912
|
)
|
(2,404
|
)
|
(3,787
|
)
|
||||
Proceeds
from exercise of options
|
171
|
303
|
326
|
|||||||
Other
|
1,535
|
(204
|
)
|
(123
|
)
|
|||||
Net
increase (decrease) in cash
|
$
|
3,484
|
$
|
166
|
$
|
(595
|
)
|
EXHIBIT
INDEX
|
||
Exhibit
#
|
Location
|
|
2.1
|
Agreement
and Plan of Reorganization, as of October 18,
2005,
between American National Bankshares Inc. and
Community
First Financial Corporation
|
Exhibit
2.1 on Form 8-K
filed
October 20, 2005
|
3.1
|
Amended
and Restated Articles of Incorporation
Dated
August 20, 1997
|
Exhibit
4.1 on Form S-3
filed
August 20, 1997
|
3.2
|
Amended
Bylaws dated April 22, 2003
|
Exhibit
3.2 on Form 8-K
filed
April 23, 2003
|
10.3
|
Agreement
between American National Bankshares Inc.,
American
National Bank and Trust Company, and
Charles
H. Majors dated December 18, 2001
|
Exhibit
10.5 on Form 10-K
filed
March 25, 2002
|
10.5
|
Agreement
between American National Bankshares Inc.,
American
National Bank and Trust Company, and
Jeffrey
V. Haley dated December 18, 2001
|
Exhibit
10.8 on Form 10-K
filed
March 25, 2002
|
10.6
|
Agreement
between American National Bank and Trust
Company,
and Charles H. Majors dated January 1, 2002
|
Exhibit
10.10 on Form 10-K
filed
March 25, 2002
|
10.7
|
Agreement
between American National Bankshares Inc.,
American
National Bank and Trust Company, and
R.
Helm Dobbins dated June 17, 2003
|
Exhibit
10.1 on Form 10-K
filed
March 16, 2005
|
10.8
|
Agreement
between American National Bankshares Inc.,
American
National Bank and Trust Company, and
Neal
A. Petrovich dated June 15, 2004
|
Exhibit
10.2 on Form 10-K
filed
March 16, 2005
|
11.
|
Refer
to EPS calculation in the Notes to Financial Statements
|
Filed
herewith
|
21.1
|
Filed
herewith
|
|
31.1
|
Filed
herewith
|
|
31.2
|
Filed
herewith
|
|
32.1
|
Filed
herewith
|
|
32.2
|
Filed
herewith
|
|
99.2
|
American
National Bankshares Inc. Dividend Reinvestment
Plan
dated August 19, 1997
|
Exhibit
99 on Form S-3
Filed
August 20, 1997
|
March
9, 2007
|
AMERICAN
NATIONAL BANKSHARES INC.
|
/s/
Charles H. Majors
|
President
and
|
|
Charles
H. Majors
|
Chief
Executive Officer
|
|
/s/
Fred A. Blair
|
Director
|
|
Fred
A. Blair
|
||
/s/
Dr. Frank C. Crist, Jr.
|
Director
|
|
Dr.
Frank C. Crist, Jr.
|
||
/s/
Ben J. Davenport, Jr.
|
Director
|
|
Ben
J. Davenport, Jr.
|
||
/s/
H. Dan Davis
|
Director
|
|
H.
Dan Davis
|
||
/s/
Michael P. Haley
|
Director
|
|
Michael
P. Haley
|
||
/s/
Lester A. Hudson, Jr.
|
Director
|
|
Lester
A. Hudson, Jr., Ph.D.
|
||
/s/
E. Budge Kent, Jr.
|
Director
|
|
E.
Budge Kent, Jr.
|
||
/s/
Fred B. Leggett, Jr.
|
Director
|
|
Fred
B. Leggett, Jr.
|
||
/s/
Franklin W. Maddux
|
Director
|
|
Franklin
W. Maddux, M.D.
|
||
/s/
Claude B. Owen, Jr.
|
Director
|
|
Claude
B. Owen, Jr.
|
||
/s/
Neal A. Petrovich
|
Senior
Vice President and
|
|
Neal
A. Petrovich
|
Chief
Financial Officer
|
|