• Organic loan growth of $212.0 million (19.6%) during last four quarters
  
  
• Q3 2017 net income of $4.8 million and diluted EPS of $0.55
  
  
• Net interest margin of 3.56% for Q3 2017
  
  
• Average shareholders’ equity of $209.0 million is 11.79% of average assets

DANVILLE, Va., Oct. 19, 2017 (GLOBE NEWSWIRE) -- American National Bankshares Inc. (“American National”) (NASDAQ:AMNB), parent company of American National Bank and Trust Company, today announced net income of $4,787,000 for the third quarter of 2017 compared to $3,963,000 for the third quarter of 2016, an $824,000 or 20.8% increase.  Diluted net income per common share was $0.55 for the 2017 quarter compared to $0.46 for the 2016 quarter. Net income for the third quarter of 2017 produced annualized returns on average assets of 1.08%, on average equity of 9.16%, and on average tangible equity of 11.81%.

Net income for the first nine months of 2017 was $13,129,000 compared to $12,179,000 for the comparable period of 2016, a $950,000 or 7.8% increase. Basic and diluted net income per common share was $1.52 for the 2017 period compared to $1.41 for the 2016 period.

Financial Performance and Overview

Jeffrey V. Haley, President and Chief Executive Officer, reported, “We are delighted to report strong growth in our balance sheet. Over the past year, loans have increased $212.0 million or 19.6%.  However, the continuing challenge for us, in this hyper-competitive environment, is achieving reasonable risk adjusted yields on our lending.

“Loans require liquidity. Deposits have grown $174.2 million or 13.3% over the past year. This growth is mostly in non-maturity core deposits (noninterest bearing and money market accounts), which are the heart of our balance sheet. We continue striving to grow these core deposits and their affiliated relationships, but like the asset side of the balance sheet, the challenge is to do that in a cost effective yet competitive manner. Our cost of interest bearing deposits for the third quarter was 0.57%, compared to 0.53% for the 2016 quarter.

“On the earnings side, net income for the third quarter was $4,787,000 compared to $3,963,000, an increase of $824,000 or 20.8%.

“Net interest income was up by $1,874,000 (15.0%) in the third quarter of 2017 compared to the third quarter of 2016. The increase was driven by growth in loans, three prime rate increases, and $333,000 in additional cash basis accretion income, which is unpredictable and non-recurring in nature.

“Provision for loan losses was up $340,000 in the third quarter of 2017, compared to the third quarter of 2016. The need for additional provision expense related to continued loan growth, an increase in reserves for impaired loans and the charge off of two purchased credit impaired loans, but was mitigated by continued strong asset quality metrics.

“Noninterest income increased $684,000 (21.9%) in the third quarter of 2017, compared to the third quarter of 2016. This category was positively impacted by a $337,000 gain from the sale of a bank owned commercial lot acquired in the MidCarolina acquisition and non-recurring trust fees of $160,000.

“Noninterest expense increased in the 2017 quarter by $843,000 (8.5%). The higher level of expense was primarily related to our entry into two new markets in the fourth quarter of 2016.”

Haley concluded, “We are pleased with our growth in loans and deposits over the past year. Slightly less than half our growth continues from our new markets, Roanoke and Winston-Salem. Our de novo offices have exceeded our initial growth expectations for year one. However, like many other banks, we did see a general slowdown in the third quarter. Our loans grew $6.4 million (0.5%). This is consistent with a national trend in reduced commercial lending, noted in a recent Wall Street Journal article, and was magnified for us by several large loan payoffs. Furthermore, some loan requests have not been consistent with our risk profile requirements. We expect growth will continue, but at a reduced pace compared to the year over year rate. We acknowledge that rising interest rates and hyper-competitive market forces together will put continued pressure on our net interest margin. We will manage these challenges and prevail in the community bank marketplace.”

Capital

American National’s capital ratios remain strong and exceed all regulatory requirements.

For the quarter ended September 30, 2017, average shareholders’ equity was 11.79% of average assets, compared to 12.67% for the quarter ended September 30, 2016.

Book value per common share was $24.31 at September 30, 2017, compared to $23.66 at September 30, 2016.

Tangible book value per common share was $19.09 at September 30, 2017, compared to $18.34 at September 30, 2016.

Credit Quality Measurements

Non-performing assets ($2,498,000 of non-performing loans, $538,000 of 90 day past due and accruing loans, and $2,101,000 of other real estate owned) represented 0.29% of total assets at September 30, 2017, compared to 0.31% at September 30, 2016.

Annualized net charge offs to average loans were seven basis points (0.07%) for the 2017 third quarter, compared to one basis point (0.01%) for the same quarter in 2016.

Other real estate owned was $2,101,000 compared to $1,145,000 at September 30, 2016, an increase of $956,000 or 83.5%.

Acquisition Related Financial Impact

The acquisition accounting adjustments related to our two recent acquisitions have had and continue to have a positive impact on net interest income and income before income tax for American National.  The impact of these adjustments is summarized below (dollars in thousands):

For the quarter ended September 30,			2017			2016
Net Interest Income		$	557		$	356
Income Before Income Taxes		$	477		$	143
For the nine months ended September 30,			2017			2016
Net Interest Income		$	1,586		$	1,709
Income Before Income Taxes		$	1,138		$	920

The third quarter of 2017 includes $333,000 in cash basis accretion income related to the early payoff of several acquired loans.

Net Interest Income

Net interest income before the provision for loan losses increased to $14,338,000 in the third quarter of 2017 from $12,464,000 in the third quarter of 2016, an increase of $1,874,000 or 15.0%.

For the 2017 quarter, the net interest margin was 3.56% compared to 3.50% for the same quarter in 2016, an increase of six basis points (0.06%).  The increase in net interest margin was driven by higher yields on earning assets.

Provision for Loan Losses and Allowance for Loan Losses

Provision expense for the third quarter of 2017 was $440,000 compared to $100,000 for the third quarter of 2016.

There has been significant growth in the loans outstanding over the past four quarters. The need for additional provision expense related to continued loan growth, an increase in reserves for impaired loans and the charge off of two purchased credit impaired loans, but was mitigated by continued strong asset quality metrics.

The allowance for loan losses as a percentage of total loans was 1.07% at September 30, 2017 compared to 1.18% at September 30, 2016.

Noninterest Income

Noninterest income totaled $3,804,000 in the third quarter of 2017, compared with $3,120,000 in the third quarter of 2016, an increase of $684,000 or 21.9%.  Trust fees were up $160,000 or 17.1%, driven mostly by non-recurring revenue sources. Other fees were up $64,000 or 9.7%, mostly driven by increased volume in debit card transactions. Mortgage banking was up $100,000 or 19.5%, mostly driven by higher volumes of secondary market mortgages. This category was positively impacted by a $337,000 gain from the sale of a bank owned commercial lot acquired in the MidCarolina acquisition.

Noninterest Expense

Noninterest expense totaled $10,710,000 in the third quarter of 2017, compared to $9,867,000 in the third quarter of 2016, an increase of $843,000 or 8.5%. Most of the increase was driven by the startup of operations in Roanoke and Winston-Salem. In addition, we have added personnel expense related to bank wide growth objectives and advance planning for key position, near term succession issues.

About American National

American National is a multi-state bank holding company with total assets of approximately $1.8 billion. Headquartered in Danville, Virginia, American National is the parent company of American National Bank and Trust Company. American National Bank is a community bank serving Virginia and North Carolina with 26 banking offices and two loan production offices. American National Bank also manages an additional $825 million of trust, investment and brokerage assets in its Trust and Investment Services Division. Additional information about the company and the bank is available on the bank's website at www.amnb.com.

Shares of American National are traded on the NASDAQ Global Select Market under the symbol "AMNB."

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws. Certain of the statements involve significant risks and uncertainties. The statements herein are based on certain assumptions and analyses by American National and are factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: changes in interest rates; changes in accounting principles, policies or guidelines; significant changes in the economic scenario; significant changes in regulatory requirements; significant changes in securities markets; changes in technology and information security; and changes regarding acquisitions and dispositions. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in American National's most recent Form 10-K report and other documents filed with the Securities and Exchange Commission.  American National does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

American National Bankshares Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
Unaudited
		September 30
ASSETS			2017				2016
Cash and due from banks		$	26,949			$	37,679
Interest-bearing deposits in other banks			76,271				35,138
Securities available for sale, at fair value			272,205				351,439
Restricted stock, at cost			5,509				6,006
Loans held for sale			3,386				4,776
Loans			1,295,154				1,083,201
Less allowance for loan losses			(13,858	)			(12,757	)
Net Loans			1,281,296				1,070,444
Premises and equipment, net			25,923				22,846
Other real estate owned, net			2,101				1,145
Goodwill			43,872				43,872
Core deposit intangibles, net			1,271				1,894
Bank owned life insurance			18,491				17,998
Accrued interest receivable and other assets			23,267				22,297
Total assets		$	1,780,541			$	1,615,534
Liabilities
Demand deposits -- noninterest-bearing		$	402,100			$	339,797
Demand deposits -- interest-bearing			225,279				196,696
Money market deposits			336,752				255,748
Savings deposits			124,025				119,476
Time deposits			392,049				394,291
Total deposits			1,480,205				1,306,008
Short-term borrowings:
Customer repurchase agreements			43,240				44,090
Other short-term borrowings			-				15,000
Long-term borrowings			9,996				9,974
Junior subordinated debt			27,800				27,698
Accrued interest payable and other liabilities			9,086				9,051
Total liabilities			1,570,327				1,411,821
Shareholders' equity
Preferred stock, $5 par, 2,000,000 shares authorized,
none outstanding			-				-
Common stock, $1 par, 20,000,000 shares authorized,
8,647,345 shares outstanding at September 30, 2017 and
8,610,741 shares outstanding at September 30, 2016			8,600				8,573
Capital in excess of par value			75,943				74,839
Retained earnings			126,507				117,543
Accumulated other comprehensive income (loss), net			(836	)			2,758
Total shareholders' equity			210,214				203,713
Total liabilities and shareholders' equity		$	1,780,541			$	1,615,534

American National Bankshares Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Unaudited
		Three Months Ended										Nine Months Ended
		September 30										September 30
		2017				2016						2017				2016
Interest and Dividend Income:
Interest and fees on loans		$	14,394			$	12,032					$	40,850			$	35,789
Interest and dividends on securities:
Taxable			1,108				1,112						3,395				3,346
Tax-exempt			460				767						1,604				2,407
Dividends			77				74						240				258
Other interest income			235				78						469				203
Total interest and dividend income			16,274				14,063						46,558				42,003
Interest Expense:
Interest on deposits			1,529				1,291						4,081				3,902
Interest on short-term borrowings			52				4						94				6
Interest on long-term borrowings			82				81						243				243
Interest on junior subordinated debt			273				223						756				644
Total interest expense			1,936				1,599						5,174				4,795
Net Interest Income			14,338				12,464						41,384				37,208
Provision for loan losses			440				100						1,090				200
Net Interest Income After Provision
for Loan Losses			13,898				12,364						40,294				37,008
Noninterest Income:
Trust fees			1,098				938						2,918				2,829
Service charges on deposit accounts			513				514						1,498				1,520
Other fees and commissions			727				663						2,172				1,991
Mortgage banking income			612				512						1,603				1,169
Securities gains, net			-				73						590				661
Brokerage fees			219				209						603				636
Income from Small Business Investment Companies			86				-						118				238
Gains (losses) on premises and equipment, net			337				(1	)					337				(9	)
Other			212				212						584				749
Total noninterest income			3,804				3,120						10,423				9,784
Noninterest Expense:
Salaries			5,072				4,626						14,604				12,872
Employee benefits			1,112				1,034						3,425				3,203
Occupancy and equipment			1,151				1,004						3,367				3,162
FDIC assessment			138				138						401				519
Bank franchise tax			276				257						795				769
Core deposit intangible amortization			80				213						448				789
Data processing			475				437						1,464				1,340
Software			303				301						853				872
Other real estate owned, net			62				105						173				314
Other			2,041				1,752						6,332				5,601
Total noninterest expense			10,710				9,867						31,862				29,441
Income Before Income Taxes			6,992				5,617						18,855				17,351
Income Taxes			2,205				1,654						5,726				5,172
Net Income		$	4,787			$	3,963					$	13,129			$	12,179
Net Income Per Common Share:
Basic		$	0.55			$	0.46					$	1.52			$	1.41
Diluted		$	0.55			$	0.46					$	1.52			$	1.41
Average Common Shares Outstanding:
Basic			8,644,310				8,608,323						8,639,433				8,610,100
Diluted			8,663,246				8,618,335						8,657,891				8,618,386

American National Bankshares Inc.
Financial Highlights
Unaudited
	(Dollars in thousands, except per share data)
				3rd Qtr				2nd Qtr				3rd Qtr					YTD				YTD
				2017				2017				2016					2017				2016
EARNINGS
Interest income				$	16,274			$	15,603			$	14,063				$	46,558			$	42,003
Interest expense					1,936				1,691				1,599					5,174				4,795
Net interest income					14,338				13,912				12,464					41,384				37,208
Provision for loan losses					440				350				100					1,090				200
Noninterest income					3,804				3,348				3,120					10,423				9,784
Noninterest expense					10,710				10,711				9,867					31,862				29,441
Income taxes					2,205				1,920				1,654					5,726				5,172
Net income					4,787				4,279				3,963					13,129				12,179
PER COMMON SHARE
Income per share - basic				$	0.55			$	0.50			$	0.46				$	1.52			$	1.41
Income per share - diluted					0.55				0.49				0.46					1.52				1.41
Cash dividends paid					0.24				0.24				0.24					0.72				0.72
Book value per share					24.31				23.96				23.66					24.31				23.66
Book value per share - tangible (a)					19.09				18.72				18.34					19.09				18.34
Closing market price					41.20				36.95				27.95					41.20				27.95
FINANCIAL RATIOS
Return on average assets					1.08		%		0.99		%		0.99		%			1.01		%		1.03		%
Return on average equity					9.16				8.28				7.79					8.48				8.06
Return on average tangible equity (b)					11.81				10.93				10.41					11.11				10.89
Average equity to average assets					11.79				11.91				12.67					11.89				12.73
Tangible equity to tangible assets (a)					9.51				9.41				10.06					9.51				10.06
Net interest margin, taxable equivalent					3.56				3.54				3.50					3.51				3.54
Efficiency ratio (c)					59.14				61.76				61.25					61.23				61.18
Effective tax rate					31.54				30.97				29.45					30.37				29.81
PERIOD-END BALANCES
Securities				$	277,714			$	286,004			$	357,445				$	277,714			$	357,445
Loans held for sale					3,386				2,379				4,776					3,386				4,776
Loans, net of unearned income					1,295,154				1,288,693				1,083,201					1,295,154				1,083,201
Goodwill and other intangibles					45,143				45,223				45,766					45,143				45,766
Assets					1,780,541				1,764,473				1,615,534					1,780,541				1,615,534
Assets - tangible (a)					1,735,398				1,719,250				1,569,768					1,735,398				1,569,768
Deposits					1,480,205				1,462,841				1,306,008					1,480,205				1,306,008
Customer repurchase agreements					43,240				48,282				44,090					43,240				44,090
Other short-term borrowings					-				-				15,000					-				15,000
Long-term borrowings					37,796				37,766				37,672					37,796				37,672
Shareholders' equity					210,214				207,053				203,713					210,214				203,713
Shareholders' equity - tangible (a)					165,071				161,830				157,947					165,071				157,947
AVERAGE BALANCES
Securities (d)				$	281,246			$	295,863			$	354,780				$	300,407			$	354,287
Loans held for sale					3,607				2,426				3,761					2,820				2,638
Loans, net of unearned income					1,291,822				1,258,346				1,064,606					1,248,929				1,043,177
Interest-earning assets					1,646,241				1,610,132				1,477,208					1,610,541				1,455,556
Goodwill and other intangibles					45,191				45,337				45,872					45,347				46,153
Assets					1,773,636				1,736,686				1,605,387					1,736,955				1,583,006
Assets - tangible (a)					1,728,445				1,691,349				1,559,515					1,691,608				1,536,853
Interest-bearing deposits					1,066,827				1,047,828				973,431					1,045,422				965,391
Deposits					1,468,523				1,433,852				1,301,874					1,431,777				1,286,034
Customer repurchase agreements					48,461				49,239				50,013					47,614				47,353
Other short-term borrowings					-				-				1,521					3,902				512
Long-term borrowings					37,780				37,748				37,655					37,748				37,624
Shareholders' equity					209,026				206,774				203,451					206,440				201,560
Shareholders' equity - tangible (a)					163,835				161,437				157,579					161,093				155,407
American National Bankshares Inc.
Financial Highlights
Unaudited
	(Dollars in thousands, except per share data)
				3rd Qtr				2nd Qtr				3rd Qtr					YTD				YTD
				2017				2017				2016					2017				2016
CAPITAL
Average common shares outstanding - basic					8,644,310				8,640,648				8,608,323					8,639,433				8,610,100
Average common shares outstanding - diluted					8,663,246				8,659,165				8,618,335					8,657,891				8,618,386
ALLOWANCE FOR LOAN LOSSES
Beginning balance				$	13,632			$	13,108			$	12,674				$	12,801			$	12,601
Provision for loan losses					440				350				100					1,090				200
Charge-offs					(277	)			(85	)			(86	)				(411	)			(245	)
Recoveries					63				259				69					378				201
Ending balance				$	13,858			$	13,632			$	12,757				$	13,858			$	12,757
LOANS
Construction and land development				$	137,869			$	132,322			$	91,688				$	137,869			$	91,688
Commercial real estate					602,434				590,093				454,797					602,434				454,797
Residential real estate					209,201				211,305				218,632					209,201				218,632
Home equity					110,926				113,580				108,617					110,926				108,617
Commercial and industrial					230,484				236,418				204,184					230,484				204,184
Consumer					4,240				4,975				5,283					4,240				5,283
Total				$	1,295,154			$	1,288,693			$	1,083,201				$	1,295,154			$	1,083,201
NONPERFORMING ASSETS AT PERIOD-END
Nonperforming loans:
90 days past due and accruing				$	538			$	1,611			$	320				$	538			$	320
Nonaccrual					2,498				2,117				3,526					2,498				3,526
Other real estate owned					2,101				1,686				1,145					2,101				1,145
Nonperforming assets				$	5,137			$	5,414			$	4,991				$	5,137			$	4,991
ASSET QUALITY RATIOS
Allowance for loan losses to total loans					1.07		%		1.06		%		1.18		%			1.07		%		1.18		%
Allowance for loan losses to
nonperforming loans					456.46				365.67				331.70					456.46				331.70
Nonperforming assets to total assets					0.29				0.31				0.31					0.29				0.31
Nonperforming loans to total loans					0.23				0.29				0.36					0.23				0.36
Annualized net charge-offs (recoveries)
to average loans					0.07				(0.06	)			0.01					0.00				0.01
OTHER DATA
Fiduciary assets at period-end (e) (f)				$	517,294			$	520,861			$	502,390				$	517,294			$	502,390
Retail brokerage assets at period-end (e) (f)				$	307,281			$	297,463			$	278,089				$	307,281			$	278,089
Number full-time equivalent employees (g)					335				328				309					335				309
Number of full service offices					26				27				25					26				25
Number of loan production offices					2				2				2					2				2
Number of ATM's					34				34				33					34				33
Notes:
(a) - Excludes goodwill and other intangible assets.
(b) - Excludes amortization expense, net of tax, of intangible assets.
(c) - The efficiency ratio is calculated by dividing noninterest expense excluding gains or losses on the sale of OREO by net
interest income including tax equivalent income on nontaxable loans and securities and noninterest income and excluding (i) gains or
losses on securities and (ii) gains or losses on sale of premises and equipment.
(d) - Average does not include unrealized gains and losses.
(e) - Market value.
(f) - Assets are not owned by the Company and are not reflected in the consolidated balance sheet.
(g) - Average for quarter.

Net Interest Income Analysis
For the Three Months Ended September 30, 2017 and 2016
(Dollars in thousands)
Unaudited
								Interest
		Average Balance						Income/Expense						Yield/Rate
			2017			2016			2017			2016		2017		2016
Loans:
Commercial		$	233,455		$	200,448		$	2,282		$	2,022		3.88	%	4.01	%
Real estate			1,057,326			862,740			12,102			9,939		4.58		4.61
Consumer			4,648			5,179			92			136		7.85		10.45
Total loans			1,295,429			1,068,367			14,476			12,097		4.46		4.52
Securities:
Federal agencies & GSEs			92,822			99,375			445			428		1.92		1.72
Mortgage-backed & CMOs			77,663			81,945			399			411		2.06		2.01
State and municipal			95,861			158,010			862			1,370		3.60		3.47
Other			14,900			15,450			170			132		4.56		3.42
Total securities			281,246			354,780			1,876			2,341		2.67		2.64
Deposits in other banks			69,566			54,061			235			78		1.34		0.57
Total interest-earning assets			1,646,241			1,477,208			16,587			14,516		4.03		3.93
Non-earning assets			127,395			128,179
Total assets		$	1,773,636		$	1,605,387
Deposits:
Demand		$	215,486		$	200,469			11			10		0.02		0.02
Money market			336,501			253,269			463			118		0.55		0.19
Savings			124,949			117,737			9			9		0.03		0.03
Time			389,891			401,956			1,046			1,154		1.06		1.14
Total deposits			1,066,827			973,431			1,529			1,291		0.57		0.53
Customer repurchase agreements			48,461			50,013			53			1		0.43		0.01
Other short-term borrowings			0			1521			0			3		0.00		0.79
Long-term borrowings			37,780			37,655			354			304		3.75		3.23
Total interest-bearing
liabilities			1,153,068			1,062,620			1,936			1,599		0.67		0.60
Noninterest bearing demand deposits			401,696			328,443
Other liabilities			9,846			10,873
Shareholders' equity			209,026			203,451
Total liabilities and
shareholders' equity		$	1,773,636		$	1,605,387
Interest rate spread														3.36	%	3.33	%
Net interest margin														3.56	%	3.50	%
Net interest income (taxable equivalent basis)									14,651			12,917
Less: Taxable equivalent adjustment									313			453
Net interest income								$	14,338		$	12,464

Net Interest Income Analysis
For the Nine Months Ended September 30, 2017 and 2016
(Dollars in thousands)
Unaudited
									Interest
			Average Balance						Income/Expense					Yield/Rate
			2017			2016			2017			2016		2017		2016
Loans:
Commercial		$	227,739		$	196,256		$	6,577		$	5,852		3.86	%	3.98	%
Real estate			1,019,185			844,276			34,228			29,620		4.48		4.68
Consumer			4,825			5,283			272			507		7.54		12.82
Total loans			1,251,749			1,045,815			41,077			35,979		4.38		4.59
Securities:
Federal agencies & GSEs			95,360			95,967			1,340			1,252		1.87		1.74
Mortgage-backed & CMOs			78,572			79,746			1,224			1,235		2.08		2.06
State and municipal			110,328			162,885			2,952			4,336		3.57		3.55
Other			16,147			15,689			536			410		4.43		3.48
Total securities			300,407			354,287			6,052			7,233		2.69		2.72
Deposits in other banks			58,385			55,454			469			203		1.07		0.49
Total interest-earning assets			1,610,541			1,455,556			47,598			43,415		3.94		3.98
Non-earning assets			126,414			127,450
Total assets		$	1,736,955		$	1,583,006
Deposits:
Demand		$	217,052		$	220,419			32			90		0.02		0.05
Money market			321,738			226,780			1,046			284		0.43		0.17
Savings			124,780			117,599			28			37		0.03		0.04
Time			381,852			400,593			2,975			3,491		1.04		1.16
Total deposits			1,045,422			965,391			4,081			3,902		0.52		0.54
Customer repurchase agreements			47,614			47,353			68			3		0.19		0.01
Other short-term borrowings			3,902			512			27			3		0.92		0.78
Long-term borrowings			37,748			37,624			998			887		3.53		3.14
Total interest-bearing
liabilities			1,134,686			1,050,880			5,174			4,795		0.61		0.61
Noninterest bearing demand deposits			386,355			320,643
Other liabilities			9,474			9,923
Shareholders' equity			206,440			201,560
Total liabilities and
shareholders' equity		$	1,736,955		$	1,583,006
Interest rate spread														3.33	%	3.37	%
Net interest margin														3.51	%	3.54	%
Net interest income (taxable equivalent basis)									42,424			38,620
Less: Taxable equivalent adjustment									1,040			1,412
Net interest income								$	41,384		$	37,208

Contact:	William W. Traynham, Chief Financial Officer
	434-773-2242
	traynhamw@amnb.com