Segment and Related Information

6 Months Ended

Jun. 30, 2011

Segment and Related Information [Abstract]

Segment and Related Information

Note 13 – Segment and Related Information

The Company has two reportable segments, community banking and trust and investment services.

Community banking involves making loans to and generating deposits from individuals and businesses.  All assets and liabilities of the Company are allocated to community banking.  Investment income from securities is also allocated to the community banking segment.  Loan fee income, service charges from deposit accounts, and non-deposit fees such as automated teller machine fees and insurance commissions generate additional income for community banking.

Trust and investment services include estate planning, trust account administration, investment management, and retail brokerage.  Investment management services include purchasing equity, fixed income, and mutual fund investments for customer accounts. The trust and investment services division receives fees for investment and administrative services.

Amounts shown in the “Other” column includes activities of American National Bankshares Inc. which are primarily debt service on trust preferred securities and corporate items. Intersegment eliminations primarily consist of American National Bankshares Inc.'s interest income on deposits held by its banking subsidiary.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

Segment information as of and for the three and six month periods ended June 30, 2011 and 2010, is shown in the following table.

	Three Months Ended June 30, 2011
			Trust and
(in thousands)	Community		Investment					Intersegment
	Banking		Services		Other			Eliminations			Total
Interest income	$	8,570	$	-	$	12		$	(12	)	$	8,570
Interest expense		1,686		-		297			(12	)		1,971
Noninterest income		1,064		915		9			-			1,988
Operating income before income taxes		1,781		583		(1,141	)		-			1,223
Net income		1,619		384		(991	)		-			1,012
Depreciation and amortization		384		5		-			-			389
Total assets		841,369		-		4,647			-			846,016
Capital expenditures		146		-		-			-			146
	Three Months Ended June 30, 2010
			Trust and
	Community		Investment					Intersegment
	Banking		Services		Other			Eliminations			Total
Interest income	$	9,011	$	-	$	37		$	(37	)	$	9,011
Interest expense		1,846		-		344			(37	)		2,153
Noninterest income		927		824		11			-			1,762
Operating income before income taxes		2,563		532		(353	)		-			2,742
Net income		1,896		351		(233	)		-			2,014
Depreciation and amortization		403		4		-			-			407
Total assets		831,971		-		673			-			832,644
Capital expenditures		826		-		-			-			826
	Six Months Ended June 30, 2011
			Trust and
	Community		Investment					Intersegment
	Banking		Services		Other			Eliminations			Total
Interest income	$	17,231	$	-	$	32		$	(32	)	$	17,231
Interest expense		3,419		-		640			(32	)		4,027
Noninterest income		2,057		1,883		19			-			3,959
Operating income before income taxes		4,236		1,178		(1,731	)		-			3,683
Net income		3,470		777		(1,457	)					2,790
Depreciation and amortization		777		10		0			-			787
Total assets		841,369		-		4,647			-			846,016
Capital expenditures		249		-		-			-			249
	Six Months Ended June 30, 2010
			Trust and
	Community		Investment					Intersegment
	Banking		Services		Other			Eliminations			Total
Interest income	$	18,062	$	-	$	74		$	(74	)	$	18,062
Interest expense		3,687		-		687			(74	)		4,300
Noninterest income		2,006		1,656		21			-			3,683
Operating income before income taxes		5,447		1,080		(742	)		-			5,785
Net income		3,976		713		(490	)					4,199
Depreciation and amortization		817		8		0			-			825
Total assets		831,971		-		673			-			832,644
Capital expenditures		1,098		1		-			-			1,099