8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 20,2016
AMERICAN NATIONAL BANKSHARES INC.
(Exact name of registrant as specified in its charter)
Virginia	0-12820	54-1284688
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
Registrant’s telephone number, including area code: 434-792-5111
Not Applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
þ	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13a-4(c))

Item 2.02 Results of Operations and Financial Condition

On October 20, 2016, American National Bankshares Inc. ("the Company") reports earnings for third quarter 2016.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits:

99.1  October 20, 2016 News Release

99.2 Quarterly Balance Sheets, Statements of Income, Net Interest Income Analysis and Selected Financial Data

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 20, 2016                                                                 /s/ William W. Traynham

Executive Vice President and Chief Financial Officer

EX-99.1

Date:	October 20, 2016
Contact:	William W. Traynham, Chief Financial Officer
	434-773-2242
	traynhamw@amnb.com
Traded:	NASDAQ Global Select Market	Symbol:	AMNB

AMERICAN NATIONAL BANKSHARES INC. REPORTS THIRD QUARTER 2016 EARNINGS

• Organic loan growth of $102.2 million (10.4%) during last four quarters

• De novo initiatives in Roanoke and Winston-Salem

• Q3 2016 net income of $4.0 million and diluted EPS of $0.45

• Net interest margin of 3.50% for Q3 2016

• Average shareholders’ equity of $203.5 million is 12.67% of average assets

Danville, VA -- American National Bankshares Inc. (“American National”) (NASDAQ: AMNB), parent company of American National Bank and Trust Company, today announced net income of $3,963,000 for the third quarter of 2016 compared to $4,037,000 for the third quarter of 2015, a $74,000 or 1.8% decrease. Diluted net income per common share was $0.45 for the 2016 quarter compared to $0.47 for the 2015 quarter. Net income for the third quarter of 2016 produced annualized returns on average assets of 0.99%, on average equity of 7.79%, and on average tangible equity of 10.41%.

Net income for the first nine months of 2016 was $12,179,000 compared to $10,432,000 for the comparable period of 2015, a $1,747,000 or 16.7% increase. Basic and diluted net income per common share was $1.41 for the 2016 period compared to $1.20 for the 2015 period.

Financial Performance and Overview

Jeffrey V. Haley, President and Chief Executive Officer, reported, “We are excited about our results for 2016 and even more excited about our prospects for 2017. We recently announced the hiring of a team of bankers in Roanoke and a team of bankers in Winston-

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Salem. We believe these two de novo efforts will complement our existing organic growth and expand our footprint in North Carolina and Virginia. We anticipate these new initiatives will have a material and positive impact to the bank’s balance sheet, especially over the next five quarters.

“In the meantime, the legacy bank is growing well. Loans have increased $102.2 million or 10.4% during the past year. We are encouraged that a combination of active business development and improving local market economic conditions are resulting in this high quality growth. However, the continuing challenge for us in this competitive environment is achieving reasonable risk adjusted yield on lending.

Deposits, which are needed to fund loans, have grown $79.5 million or 6.5% over the past year. This growth is mostly in non-maturity, core deposits, the heart of our balance sheet. We continue working to grow these core deposits and their affiliated relationships, but the challenge in this ongoing low rate environment is to do so in a cost effective yet competitive manner. Our cost of interest bearing deposits for the third quarter was 0.53%, compared to 0.52% for the 2015 quarter.

“Earnings for the quarter were good, $3,963,000 compared to $4,037,000, a decrease of $74,000 or 1.8%. The major driver for this slight decrease was increased salaries expense, largely related to the de novo Roanoke start up.”

Haley concluded, “We believe American National has tremendous growth potential, in our new and our existing markets. We think that the next year can be transformational for us. We believe we can achieve this dynamic change and maintain the same fundamental corporate character, i.e. asset quality and strong capital, that has served the bank so well over the past decade.”

Capital

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

For the quarter ended September 30, 2016, average shareholders’ equity was 12.67% of average assets, compared to 12.95% for the quarter ended September 30, 2015.

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Book value per common share was $23.66 at September 30, 2016, compared to $22.81 at September 30, 2015.

Tangible book value per common share was $18.34 at September 30, 2016, compared to $17.32 at September 30, 2015.

Credit Quality Measurements

Non-performing assets ($3,846,000 of non-performing loans and $1,145,000 of other real estate owned) represented 0.31% of total assets at September 30, 2016, compared to 0.44% at September 30, 2015.

Annualized net charge offs to average loans were one basis point (0.01%) for the 2016 third quarter, compared to seven basis points (0.07%) for the same quarter in 2015.

Other real estate owned was $1,145,000 compared to $1,333,000 at September 30, 2015, a decrease of 188,000 or 14.1%.

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):

Acquisition related financial impact
For the quarter ended September 30,	2016		2015
Net interest income	$	356	$	548
Income before Income taxes	$	143	$	248
For the nine months ended September 30,	2016		2015
Net interest income	$	1,709	$	2,503
Income before Income taxes	$	920	$	1,602

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Net Interest Income

Net interest income before the provision for loan losses increased to $12,464,000 in the third quarter of 2016 from $12,061,000 in the third quarter of 2015, an increase of $403,000 or 3.3%.

For the 2016 quarter, the net interest margin was 3.50% compared to 3.64% for the same quarter in 2015, a decrease of 14 basis points (0.14%). The decrease in net interest margin was driven by lower yields on earning assets and reduced levels of accretion income.

Provision for Loan Losses and Allowance for Loan Losses

Provision expense for the third quarter of 2016 was $100,000 compared to zero for the third quarter of 2015.

There has been significant growth in the loans outstanding over the past four quarters. The need for additions to the allowance for loan losses was reduced by improvement in various qualitative factors used in the determination of the allowance, notably asset quality and economic conditions. As noted in the Credit Quality Measurements discussion, non-performing assets, charge-offs, and other real estate owned are all improved over the past year.

The allowance for loan losses as a percentage of total loans was 1.18% at September 30, 2016 compared to 1.29% at September 30, 2015.

Noninterest Income

Noninterest income totaled $3,120,000 in the third quarter of 2016, compared with $3,055,000 in the third quarter of 2015, an increase of $65,000 or 2.1%. Mortgage banking income was the most notable change, as it increased to $512,000, up 36.2% over the prior year quarter.

Noninterest Expense

Noninterest expense totaled $9,867,000 in the third quarter of 2016, compared to $9,388,000 in the third quarter of 2015, an increase of $479,000 or 5.1%. The increase in

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expenses included compensation and start-up expenses related to the de novo branch in Roanoke.

About American National

American National is a multi-state bank holding company with total assets of approximately $1.6 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 25 banking offices and two loan production offices. American National Bank also manages an additional $780 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; and 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.

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EX-99.2

American National Bankshares Inc.
Consolidated Balance Sheets
(Dollars in thousands, except share and per share data)
Unaudited
	September 30
ASSETS	2016	2015
Cash and due from banks	$ 37,679	$ 19,280
Interest-bearing deposits in other banks	35,138	46,637
Federal funds sold	—	—
Securities available for sale, at fair value	351,439	358,306
Restricted stock, at cost	6,006	5,308
Loans held for sale	4,776	2,998
Loans	1,083,201	980,984
Less allowance for loan losses	(12,757)	(12,611)
Net Loans	1,070,444	968,373
Premises and equipment, net	22,846	23,854
Other real estate owned, net	1,145	1,333
Goodwill	43,872	44,333
Core deposit intangibles, net	1,894	2,983
Bank owned life insurance	17,998	17,491
Accrued interest receivable and other assets	22,297	21,541
Total assets	$ 1,615,534	$ 1,512,437
Liabilities
Demand deposits -- noninterest-bearing	$ 339,797	$ 305,110
Demand deposits -- interest-bearing	196,696	220,562
Money market deposits	255,748	191,534
Savings deposits	119,476	108,992
Time deposits	394,291	400,323
Total deposits	1,306,008	1,226,521
Short-term borrowings:
Customer repurchase agreements	44,090	43,579
Other short-term borrowings	15,000	—
Long-term borrowings	9,974	9,952
Junior subordinated debt	27,698	27,597
Accrued interest payable and other liabilities	9,051	8,337
Total liabilities	1,411,821	1,315,986
Shareholders' equity
Preferred stock, $5 par, 2,000,000 shares authorized,
none outstanding	—	—
Common stock, $1 par, 20,000,000 shares authorized,
8,610,741 shares outstanding at September 30, 2016 and
8,630,329 shares outstanding at September 30, 2015	8,573	8,611
Capital in excess of par value	74,839	75,524
Retained earnings	117,543	109,030
Accumulated other comprehensive income, net	2,758	3,286
Total shareholders' equity	203,713	196,451
Total liabilities and shareholders' equity	$ 1,615,534	$ 1,512,437

American National Bankshares Inc.
Consolidated Statements of Income
(Dollars in thousands, except share and per share data)
Unaudited
	Three Months Ended		Nine Months Ended
	September 30		September 30
	2016	2015	2016	2015
Interest and Dividend Income:
Interest and fees on loans	$ 12,032	$ 11,474	$ 35,789	$ 35,011
Interest on federal funds sold	—	1	—	6
Interest and dividends on securities:
Taxable	1,112	1,052	3,346	3,021
Tax-exempt	767	899	2,407	2,799
Dividends	74	91	258	258
Other interest income	78	25	203	123
Total interest and dividend income	14,063	13,542	42,003	41,218
Interest Expense:
Interest on deposits	1,291	1,205	3,902	3,583
Interest on short-term borrowings	4	2	6	7
Interest on long-term borrowings	81	82	243	243
Interest on junior subordinated debt	223	192	644	564
Total interest expense	1,599	1,481	4,795	4,397
Net Interest Income	12,464	12,061	37,208	36,821
Provision for loan losses	100	—	200	700
Net Interest Income After Provision
for Loan Losses	12,364	12,061	37,008	36,121
Noninterest Income:
Trust fees	938	1,006	2,829	2,963
Service charges on deposit accounts	514	521	1,520	1,543
Other fees and commissions	663	592	1,991	1,787
Mortgage banking income	512	376	1,169	987
Securities gains, net	73	6	662	553
Brokerage fees	209	255	636	681
Income from Small Business Investment Companies	—	99	238	427
Other	211	200	739	528
Total noninterest income	3,120	3,055	9,784	9,469
Noninterest Expense:
Salaries	4,626	4,179	12,872	12,634
Employee benefits	1,034	1,029	3,203	3,215
Occupancy and equipment	1,004	1,094	3,162	3,290
FDIC assessment	138	185	519	565
Bank franchise tax	257	220	769	675
Core deposit intangible amortization	213	300	789	901
Data processing	437	366	1,340	1,311
Software	301	290	872	850
Other real estate owned, net	105	(126)	314	60
Organizational expenses	23	—	23	—
Merger related expenses	—	87	—	1,948

Other	1,729	1,764	5,578	5,628
Total noninterest expense	9,867	9,388	29,441	31,077
Income Before Income Taxes	5,617	5,728	17,351	14,513
Income Taxes	1,654	1,691	5,172	4,081
Net Income	$ 3,963	$ 4,037	$ 12,179	$ 10,432
Net Income Per Common Share:
Basic	$ 0.46	$ 0.47	$ 1.41	$ 1.20
Diluted	$ 0.45	$ 0.47	$ 1.41	$ 1.20
Weighted Average Common Shares Outstanding:
Basic	8,702,919	8,668,618	8,641,862	8,698,394
Diluted	8,712,931	8,676,571	8,650,148	8,706,870

American National Bankshares Inc.
Financial Highlights
	(In thousands, except share, ratio and
	nonfinancial data, unaudited)	3rd Qtr		2nd Qtr		3rd Qtr		YTD		YTD
		2016		2016		2015		2016		2015
EARNINGS
Interest income		$ 14,063		$ 13,769		$ 13,542		$ 42,003		$ 41,218
Interest expense		1,599		1,609		1,481		4,795		4,397
Net interest income		12,464		12,160		12,061		37,208		36,821
Provision for loan losses		100		50		—		200		700
Noninterest income		3,120		3,367		3,055		9,784		9,469
Noninterest expense		9,867		9,656		9,388		29,441		31,077
Income taxes		1,654		1,733		1,691		5,172		4,081
Net income		3,963		4,088		4,037		12,179		10,432
PER COMMON SHARE
Income per share - basic		$ 0.46		$ 0.47		$ 0.47		$ 1.41		$ 1.20
Income per share - diluted		0.45		0.47		0.47		1.41		1.20
Cash dividends paid		0.24		0.24		0.23		0.72		0.69
Book value per share		23.66		23.54		22.81		23.66		22.81
Book value per share - tangible (a)		18.34		18.20		17.32		18.34		17.32
Closing market price		27.95		25.18		23.45		27.95		23.45
FINANCIAL RATIOS
Return on average assets		0.99	%	1.03	%	1.07	%	1.03	%	0.91	%
Return on average equity		7.79		8.11		8.25		8.06		7.09
Return on average tangible equity (b)		10.41		10.99		11.42		10.89		9.90
Average equity to average assets		12.67		12.67		12.95		12.73		12.90
Tangible equity to tangible assets (a)		10.06		10.07		10.18		10.06		10.18
Net interest margin, taxable equivalent		3.50		3.45		3.64		3.54		3.69
Efficiency ratio (c)		61.25		60.91		61.25		61.18		66.00
Effective tax rate		29.45		29.77		29.52		29.81		28.12
PERIOD-END BALANCES
Securities		$ 357,445		$ 368,162		$ 363,614		$ 357,445		$ 363,614
Loans held for sale		4,776		4,692		2,998		4,776		2,998
Loans, net of unearned income		1,083,201		1,057,959		980,984		1,083,201		980,984
Goodwill and other intangibles		45,766		45,979		47,316		45,766		47,316
Assets		1,615,534		1,601,651		1,512,437		1,615,534		1,512,437
Assets - tangible (a)		1,569,768		1,555,672		1,465,121		1,569,768		1,465,121
Deposits		1,306,008		1,298,385		1,226,521		1,306,008		1,226,521
Customer repurchase agreements		44,090		53,369		43,579		44,090		43,579
Other short-term borrowings		15,000		—		—		15,000		—
Long-term borrowings		37,672		37,642		37,549		37,672		37,549
Shareholders' equity		203,713		202,704		196,451		203,713		196,451
Shareholders' equity - tangible (a)		157,947		156,725		149,135		157,947		149,135

American National Bankshares Inc.
Financial Highlights
	(In thousands, except share, ratio and
	nonfinancial data, unaudited)	2nd Qtr	1st Qtr	2nd Qtr	YTD	YTD
		2016	2016	2015	2016	2015
AVERAGE BALANCES
Securities		$ 354,780	$ 361,064	$ 357,427	$ 354,287	$ 350,831
Loans held for sale		3,761	2,087	2,873	2,638	2,223
Loans, net of unearned income		1,064,606	1,047,993	982,212	1,043,177	969,826
Interest-earning assets		1,477,208	1,464,692	1,380,576	1,455,556	1,386,714
Goodwill and other intangibles		45,872	46,150	47,446	46,153	47,703
Assets		1,605,387	1,592,261	1,511,464	1,583,006	1,520,235
Assets - tangible (a)		1,559,515	1,546,111	1,464,018	1,536,853	1,472,532
Interest-bearing deposits		973,431	972,385	923,840	965,391	935,893
Deposits		1,301,874	1,295,520	1,223,328	1,286,034	1,227,005
Customer repurchase agreements		50,013	47,607	45,444	47,353	49,985
Other short-term borrowings		1,521	—	57	512	19
Long-term borrowings		37,655	37,624	37,531	37,624	37,500
Shareholders' equity		203,451	201,685	195,660	201,560	196,135
Shareholders' equity - tangible (a)		157,579	155,535	148,214	155,407	148,432
CAPITAL
Weighted average shares outstanding - basic		8,702,919	8,610,156	8,668,618	8,641,862	8,698,394
Weighted average shares outstanding - diluted		8,712,931	8,619,833	8,676,571	8,650,148	8,706,870
ALLOWANCE FOR LOAN LOSSES
Beginning balance		$ 12,674	$ 12,675	$ 12,793	$ 12,601	$ 12,427
Provision for loan losses		100	50	—	200	700
Charge-offs		(86)	(119)	(253)	(245)	(883)
Recoveries		69	68	71	201	367
Ending balance		$ 12,757	$ 12,674	$ 12,611	$ 12,757	$ 12,611
LOANS
Construction and land development		$ 91,688	$ 89,451	$ 68,692	$ 91,688	$ 68,692
Commercial real estate		454,797	438,164	424,404	454,797	424,404
Residential real estate		218,632	216,857	219,415	218,632	219,415
Home equity		108,617	107,007	98,249	108,617	98,249
Commercial and industrial		204,184	201,381	164,025	204,184	164,025
Consumer		5,283	5,099	6,199	5,283	6,199
Total		$1,083,201	$1,057,959	$ 980,984	$1,083,201	$ 980,984
NONPERFORMING ASSETS AT PERIOD-END
Nonperforming loans:
90 days past due and accruing		—	—	—	—	—
Nonaccrual		3,846	3,412	5,360	3,846	5,360
Other real estate owned		1,145	1,289	1,333	1,145	1,333
Nonperforming assets		$ 4,991	$ 4,701	$ 6,693	$ 4,991	$ 6,693

American National Bankshares Inc.
Financial Highlights
	(In thousands, except share, ratio and
	nonfinancial data, unaudited)	2nd Qtr		1st Qtr		2nd Qtr		YTD		YTD
		2016		2016		2015		2016		2015
ASSET QUALITY RATIOS
Allowance for loan losses to total loans		1.18	%	1.20	%	1.29	%	1.18	%	1.29	%
Allowance for loan losses to
nonperforming loans		331.70		371.45		235.28		331.70		235.28
Nonperforming assets to total assets		0.31		0.29		0.44		0.31		0.44
Nonperforming loans to total loans		0.36		0.32		0.55		0.36		0.55
Annualized net charge-offs (recoveries)
to average loans		0.01		0.02		0.07		0.01		0.07
OTHER DATA
Fiduciary assets at period-end (d) (e)		$ 502,390		$ 491,517		$ 486,173		$ 502,390		$ 486,173
Retail brokerage assets at period-end (d) (e)		$ 278,089		$ 269,066		$ 247,258		$ 278,089		$ 247,258
Number full-time equivalent employees (f)		309		302		310		309		310
Number of full service offices		25		25		25		25		25
Number of loan production offices		2		2		2		2		2
Number of ATM's		33		33		34		33		34
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) - Market value.
(e) - Assets are not owned by the Company and are not reflected in the consolidated balance sheet.
(f) - Average for quarter.

			Net Interest Income Analysis
			For the Three Months Ended September 30, 2016 and 2015
			(in thousands, except yields/rates)
						Interest
				Average Balance		Income/Expense		Yield/Rate
				2016	2015	2016	2015	2016		2015
Loans:
	Commercial			$ 200,448	$ 164,551	$ 2,022	$ 1,801	4.01	%	4.34	%
	Real estate			862,740	814,500	9,939	9,557	4.61		4.69
	Consumer			5,179	6,034	136	150	10.45		9.86
		Total loans		1,068,367	985,085	12,097	11,508	4.52		4.67
Securities:
	Federal agencies & GSEs			99,375	103,303	428	431	1.72		1.67
	Mortgage-backed & CMOs			81,945	57,100	411	282	2.01		1.98
	State and municipal			158,010	180,799	1,370	1,650	3.47		3.65
	Other			15,450	16,225	132	140	3.42		3.45
		Total securities		354,780	357,427	2,341	2,503	2.64		2.80
Federal funds sold				—	76	—	1	—		5.22
Deposits in other banks				54,061	37,988	78	25	0.57		0.26
	Total interest-earning assets			1,477,208	1,380,576	14,516	14,037	3.93		4.06
Non-earning assets				128,179	130,888
		Total assets		$1,605,387	$1,511,464
Deposits:
	Demand			$ 200,469	$ 221,700	10	20	0.02		0.04
	Money market			253,269	191,689	118	63	0.19		0.13
	Savings			117,737	109,919	9	13	0.03		0.05
	Time			401,956	400,532	1,154	1,109	1.14		1.10
		Total deposits		973,431	923,840	1,291	1,205	0.53		0.52
Customer repurchase agreements				50,013	45,444	1	2	0.01		0.02
Other short-term borrowings				1,521	57	3	—	0.79		0.35
Long-term borrowings				37,655	37,531	304	274	3.23		2.92
	Total interest-bearing
		liabilities		1,062,620	1,006,872	1,599	1,481	0.60		0.58
Noninterest bearing demand deposits				328,443	299,488
Other liabilities				10,873	9,444
Shareholders' equity				203,451	195,660
		Total liabilities and
			shareholders' equity	$1,605,387	$1,511,464
Interest rate spread								3.33	%	3.48	%
Net interest margin								3.50	%	3.64	%
Net interest income (taxable equivalent basis)						12,917	12,556
Less: Taxable equivalent adjustment						453	495
Net interest income						$12,464	$12,061

			Net Interest Income Analysis
			For the Nine Months Ended September 30, 2016 and 2015
			(in thousands, except yields/rates)
						Interest
				Average Balance		Income/Expense		Yield/Rate
				2016	2015	2016	2015	2016		2015
Loans:
	Commercial			$ 196,256	$ 153,234	$ 5,852	$ 5,387	3.98	%	4.70	%
	Real estate			844,276	807,875	29,620	29,117	4.68		4.81
	Consumer			5,283	10,940	507	595	12.82		7.27
		Total loans		1,045,815	972,049	35,979	35,099	4.59		4.82
Securities:
	Federal agencies & GSEs			95,967	88,427	1,252	1,000	1.74		1.51
	Mortgage-backed & CMOs			79,746	61,434	1,235	994	2.06		2.16
	State and municipal			162,885	185,587	4,336	5,133	3.55		3.69
	Other			15,689	15,383	410	388	3.48		3.36
		Total securities		354,287	350,831	7,233	7,515	2.72		2.86
Federal funds sold				—	6,992	—	6	—		0.11
Deposits in other banks				55,454	56,842	203	123	0.49		0.29
	Total interest-earning assets			1,455,556	1,386,714	43,415	42,743	3.98		4.11
Non-earning assets				127,450	133,521
		Total assets		$1,583,006	$1,520,235
Deposits:
	Demand			$ 220,419	$ 223,858	90	60	0.05		0.04
	Money market			226,780	196,693	284	195	0.17		0.13
	Savings			117,599	109,008	37	39	0.04		0.05
	Time			400,593	406,334	3,491	3,289	1.16		1.08
		Total deposits		965,391	935,893	3,902	3,583	0.54		0.51
Customer repurchase agreements				47,353	49,985	3	7	0.01		0.02
Other short-term borrowings				512	19	3	—	0.78		0.35
Long-term borrowings				37,624	37,500	887	807	3.14		2.87
	Total interest-bearing
		liabilities		1,050,880	1,023,397	4,795	4,397	0.61		0.57
Noninterest bearing demand deposits				320,643	291,112
Other liabilities				9,923	9,591
Shareholders' equity				201,560	196,135
		Total liabilities and
			shareholders' equity	$1,583,006	$1,520,235
Interest rate spread								3.37	%	3.54	%
Net interest margin								3.54	%	3.69	%
Net interest income (taxable equivalent basis)						38,620	38,346
Less: Taxable equivalent adjustment						1,412	1,525
Net interest income						$37,208	$36,821