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) July 20,2017
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 July 20, 2017, American National Bankshares Inc. ("the Company") reports earnings for second quarter 2017.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits:

99.1  July 20, 2017 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: July 20, 2017                                                                 /s/ William W. Traynham

Executive Vice President and Chief Financial Officer

EX-99.1

Date:	July 20, 2017
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 SECOND QUARTER 2017 EARNINGS

• Loan growth of $230.7 million (21.8%) during last four quarters

• Q2 2017 net income of $4.3 million and diluted EPS of $0.49

• Net interest margin of 3.54% for Q2 2017

• Average shareholders’ equity of $206.8 million is 11.91% 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 $4,279,000 compared to $4,088,000 for the second quarter of 2016, a $191,000 or 4.7% increase. Basic net income per common share was $0.50 for the 2017 quarter compared to $0.47 for the 2016 quarter. Diluted net income per common share was $0.49 for the 2017 quarter compared to $0.47 for the 2016 quarter. Net income for the second quarter of 2017 produced annualized return on average assets of 0.99%, on average equity of 8.28%, and on average tangible equity of 10.93%.

Net income for the first six months of 2017 was $8,342,000 compared to $8,216,000 for the comparable period of 2016, a $126,000 or 1.5% increase. Basic net income per common share was $0.97 for the 2017 period compared to $0.95 for the 2016 period. Diluted net income per common share was $0.96 for the 2017 period compared to $0.95 for the 2016 period.

Financial Performance and Overview

Jeffrey V. Haley, President and Chief Executive Officer, reported, “We are pleased to report continued strong growth in our balance sheet. Over the past year, loans have

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increased $230.7 million or 21.8%. In the past six months, loans have increased $123.9 million or 10.6%. We are very encouraged that active business development and improving local economic conditions are resulting in this high quality growth. However, the continuing challenge for us, in this hyper-competitive environment, is achieving reasonable risk adjusted yield on our lending.

“Loans require liquidity. Deposits have grown $164.5 million or 12.7% over the past year. In the past six months, deposits have grown $92.2 million or 6.7%. This growth is mostly in non-maturity, core deposits, 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 second quarter was 0.52%, compared to 0.54% for the 2016 quarter.

“On the earnings side, net income for the second quarter was $4,279,000 compared to $4,088,000, an increase of $191,000 or 4.7%.

“Net interest income was up by $1,752,000 (14.4%) in the second quarter of 2017 compared to the second quarter of 2016, driven primarily by growth in loans.

“Provision for loan losses was up $300,000 in the second quarter of 2017, compared to the second quarter of 2016. The need for additional provision expense directly related to continued strong loan growth.

“Noninterest expense increased in the 2017 quarter by $1,055,000 (10.9%). The higher level of expense primarily related to our entry into two new markets in the fourth quarter of 2016.”

Haley concluded, “We are delighted with our balance sheet growth in loans and deposits over the past year. Slightly less than half our growth has been in our new markets, Roanoke and Winston-Salem. We expect growth will continue, but at a somewhat reduced pace. We acknowledge that rising interest rates and hyper-competitive market forces together will put continued pressure on our net interest margin. We are enthusiastic about our ability to manage these challenges and prevail in the community bank marketplace. American National Bank continues to be optimistic about the future of community banking.”

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Capital

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

For the quarter ended June 30, 2017, average shareholders’ equity was 11.91% of average assets, compared to 12.67% for the quarter ended June 30, 2016.

Book value per common share was $23.96 at June 30, 2017, compared to $23.54 at June 30, 2016.

Tangible book value per common share was $18.72 at June 30, 2017, compared to $18.20 at June 30, 2016.

Credit Quality Measurements

Non-performing assets represented 0.31% of total assets at June 30, 2017, compared to 0.29% at June 30, 2016.

Annualized net recoveries to average loans were six basis points (0.06%) for the second quarter compared to net charge offs of two basis points (0.02%) for the same quarter in 2016.

Other real estate owned was $1,686,000 compared to $1,289,000 at June 30, 2016, an increase of $397,000 or 30.8%.

Acquisition Related Financial Impact

The purchase 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 taxes for American National. The impact of the adjustments is summarized below (dollars in thousands):

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Increases to:
For the quarter ended June 30,	2017		2016
Net Interest Income	$	595	$	352
Income Before Income Taxes	$	392	$	64
For the six months ended June 30,	2017		2016
Net Interest Income	$	1,029	$	1,353
Income Before Income Taxes	$	661	$	777

Duringthe second quarter of 2017, the Company received a substantial payoff and a pay-down of two purchased credit impaired loans that resulted in $220,000 in cash-basis accretion income.

Net Interest Income

Net interest income before the provision for loan losses increased to $13,912,000 in the second quarter of 2017 from $12,160,000 in the second quarter of 2016, an increase of $1,752,000 or 14.4%.

For the 2017 quarter, the net interest margin was 3.54% compared to 3.45% for the same quarter in 2016, an increase of nine basis points (0.09%). The increase in net interest income related to higher volumes of earning assets.

Provision for Loan Losses and Allowance for Loan Losses

Provision expense for the second quarter of 2017 was $350,000 compared to $50,000 for the second quarter of 2016.

The allowance for loan losses as a percentage of total loans was 1.06% at June 30, 2017 compared to 1.20% at June 30, 2016.

There was significant growth in loans outstanding in the second quarter 2017, a net of $68.7 million or 5.6%. The need for additions to the allowance for loan losses was mitigated by improvement in various qualitative factors used in the determination of the allowance, notably national and local economic conditions and continued favorable asset quality metrics.

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Noninterest Income

Noninterest income totaled $3,348,000 in the second quarter of 2017, compared with $3,367,000 in the second quarter of 2016, a decrease of $19,000 or 0.6%. There was little net change in total revenue during the quarter.

Noninterest Expense

Noninterest expense totaled $10,711,000 in the second quarter of 2017, compared to $9,656,000 in the second quarter of 2016, an increase of $1,055,000 or 10.9%.         The major driver of the increase was salaries related to the de novo operations in Roanoke and Winston-Salem. Overall salaries expense increased $702,000 or 17.4%. Total full time equivalent employees were 328 at the end of the second quarter of 2017, compared to 302 at the end of the comparable quarter of 2016.

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 27 banking offices and two loan production offices. American National Bank also manages an additional $818 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

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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.

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EX-99.2

American National Bankshares Inc.
Consolidated Balance Sheets
(Dollars in thousands, except per share data)
Unaudited
	June 30
ASSETS	2017			2016
Cash and due from banks	$	23,765		$	21,625
Interest-bearing deposits in other banks	62,164			51,716
Securities available for sale, at fair value	280,503			362,800
Restricted stock, at cost	5,501			5,362
Loans held for sale	2,379			4,692
Loans	1,288,693			1,057,959
Less allowance for loan losses	(13,632		)	(12,674		)
Net Loans	1,275,061			1,045,285
Premises and equipment, net	26,265			22,878
Other real estate owned, net	1,686			1,289
Goodwill	43,872			43,872
Core deposit intangibles, net	1,351			2,107
Bank owned life insurance	18,381			17,885
Accrued interest receivable and other assets	23,545			22,140
Total assets	$	1,764,473		$	1,601,651
Liabilities
Demand deposits -- noninterest-bearing	$	390,603		$	321,442
Demand deposits -- interest-bearing	218,714			205,440
Money market deposits	339,106			252,118
Savings deposits	125,237			116,047
Time deposits	389,181			403,338
Total deposits	1,462,841			1,298,385
Short-term borrowings:
Customer repurchase agreements	48,282			53,369
Long-term borrowings	9,991			9,969
Junior subordinated debt	27,775			27,673
Accrued interest payable and other liabilities	8,531			9,551
Total liabilities	1,557,420			1,398,947
Shareholders' equity
Preferred stock, $5 par, 2,000,000 shares authorized,
none outstanding	—			—
Common stock, $1 par, 20,000,000 shares authorized,
8,642,913 shares outstanding at June 30, 2017 and
8,609,160 shares outstanding at June 30, 2016 and	8,595			8,572
Capital in excess of par value	75,691			74,753
Retained earnings	123,795			115,648
Accumulated other comprehensive income (loss), net	(1,028		)	3,731
Total shareholders' equity	207,053			202,704
Total liabilities and shareholders' equity	$	1,764,473		$	1,601,651

American National Bankshares Inc.
Consolidated Statements of Income
(Dollars in thousands, except per share data)
Unaudited
	Three Months Ended				Six Months Ended
	June 30				June 30
	2017		2016		2017		2016
Interest and Dividend Income:
Interest and fees on loans	$	13,752	$	11,642	$	26,456	$	23,757
Interest and dividends on securities:
Taxable	1,133		1,150		2,287		2,234
Tax-exempt	509		817		1,144		1,640
Dividends	84		93		163		184
Other interest income	125		67		234		125
Total interest and dividend income	15,603		13,769		30,284		27,940
Interest Expense:
Interest on deposits	1,352		1,314		2,552		2,611
Interest on short-term borrowings	14		1		42		2
Interest on long-term borrowings	81		81		161		162
Interest on junior subordinated debt	244		213		483		421
Total interest expense	1,691		1,609		3,238		3,196
Net Interest Income	13,912		12,160		27,046		24,744
Provision for loan losses	350		50		650		100
Net Interest Income After Provision
for Loan Losses	13,562		12,110		26,396		24,644
Noninterest Income:
Trust fees	908		961		1,820		1,891
Service charges on deposit accounts	501		514		985		1,006
Other fees and commissions	733		656		1,445		1,328
Mortgage banking income	462		365		991		657
Securities gains, net	331		222		590		588
Brokerage fees	192		223		384		427
Income from Small Business Investment Companies	6		72		32		238
Other	215		354		372		529
Total noninterest income	3,348		3,367		6,619		6,664
Noninterest Expense:
Salaries	4,733		4,031		9,532		8,246
Employee benefits	1,130		1,055		2,313		2,169
Occupancy and equipment	1,148		1,059		2,216		2,158
FDIC assessment	134		193		263		381
Bank franchise tax	263		256		519		512
Core deposit intangible amortization	203		288		368		576
Data processing	502		459		989		903
Software	271		274		550		571
Other real estate owned, net	68		76		111		209
Other	2,259		1,965		4,291		3,849
Total noninterest expense	10,711		9,656		21,152		19,574

Income Before Income Taxes	6,199		5,821		11,863		11,734
Income Taxes	1,920		1,733		3,521		3,518
Net Income	$	4,279	$	4,088	$	8,342	$	8,216
Net Income Per Common Share:
Basic	$	0.50	$	0.47	$	0.97	$	0.95
Diluted	$	0.49	$	0.47	$	0.96	$	0.95
Average Common Shares Outstanding:
Basic	8,640,648		8,610,156		8,636,954		8,610,998
Diluted	8,659,165		8,619,833		8,655,173		8,616,873

American National Bankshares Inc.
Financial Highlights
Unaudited
	(Dollars in thousands, except per share data)
		2nd Qtr			1st Qtr			2nd Qtr			YTD			YTD
		2017			2017			2016			2017			2016
EARNINGS
Interest income		$	15,603		$	14,681		$	13,769		$	30,284		$	27,940
Interest expense		1,691			1,547			1,609			3,238			3,196
Net interest income		13,912			13,134			12,160			27,046			24,744
Provision for loan losses		350			300			50			650			100
Noninterest income		3,348			3,271			3,367			6,619			6,664
Noninterest expense		10,711			10,441			9,656			21,152			19,574
Income taxes		1,920			1,601			1,733			3,521			3,518
Net income		4,279			4,063			4,088			8,342			8,216
PER COMMON SHARE
Income per share - basic		$	0.5		$	0.47		$	0.47		$	0.97		$	0.95
Income per share - diluted		0.49			0.47			0.47			0.96			0.95
Cash dividends paid		0.24			0.24			0.24			0.48			0.48
Book value per share		23.96			23.64			23.54			23.96			23.54
Book value per share - tangible (a)		18.72			18.38			18.2			18.72			18.2
Closing market price		36.95			37.25			25.18			36.95			25.18
FINANCIAL RATIOS
Return on average assets		0.99		%	0.96		%	1.03		%	0.97		%	1.05		%
Return on average equity		8.28			7.99			8.11			8.13			8.19
Return on average tangible equity (b)		10.93			10.56			10.99			10.75			11.13
Average equity to average assets		11.91			11.97			12.67			11.94			12.76
Tangible equity to tangible assets (a)		9.41			9.51			10.07			9.41			10.07
Net interest margin, taxable equivalent		3.54			3.44			3.45			3.49			3.56
Efficiency ratio (c)		61.76			62.97			60.91			62.35			61.14
Effective tax rate		30.97			28.27			29.77			29.68			29.98
PERIOD-END BALANCES
Securities		$	286,004		$	298,059		$	368,162		$	286,004		$	368,162
Loans held for sale		2,379			1,872			4,692			2,379			4,692
Loans, net of unearned income		1,288,693			1,219,958			1,057,959			1,288,693			1,057,959
Goodwill and other intangibles		45,223			45,426			45,979			45,223			45,979
Assets		1,764,473			1,715,805			1,601,651			1,764,473			1,601,651
Assets - tangible (a)		1,719,250			1,670,379			1,555,672			1,719,250			1,555,672
Deposits		1,462,841			1,416,104			1,298,385			1,462,841			1,298,385
Customer repurchase agreements		48,282			47,776			53,369			48,282			53,369
Long-term borrowings		37,766			37,734			37,642			37,766			37,642
Shareholders' equity		207,053			204,241			202,704			207,053			202,704
Shareholders' equity - tangible (a)		161,830			158,815			156,725			161,830			156,725

American National Bankshares Inc.
Financial Highlights
Unaudited
	(Dollars in thousands, except per share data)
		2nd Qtr			1st Qtr			2nd Qtr			YTD			YTD
		2017			2017			2016			2017			2016
AVERAGE BALANCES
Securities (d)		$	295,863		$	324,588		$	361,064		$	310,146		$	354,038
Loans held for sale		2,426			2,414			2,087			2,420			2,071
Loans, net of unearned income		1,258,346			1,195,560			1,047,993			1,227,127			1,032,345
Interest-earning assets		1,610,132			1,574,460			1,464,692			1,592,395			1,444,611
Goodwill and other intangibles		45,337			45,517			46,150			45,427			46,296
Assets		1,736,686			1,699,730			1,592,261			1,718,310			1,571,692
Assets - tangible (a)		1,691,349			1,654,213			1,546,111			1,672,883			1,525,396
Interest-bearing deposits		1,047,828			1,021,110			972,385			1,034,542			961,328
Deposits		1,433,852			1,392,117			1,295,520			1,413,100			1,278,027
Customer repurchase agreements		49,239			45,106			47,607			47,184			46,008
Other short-term borrowings		—			11,833			—			5,884			—
Long-term borrowings		37,748			37,717			37,624			37,733			37,609
Shareholders' equity		206,774			203,459			201,685			205,126			200,605
Shareholders' equity - tangible (a)		161,437			157,942			155,535			159,699			154,309
CAPITAL
Average common shares outstanding - basic		8,640,648			8,633,219			8,610,156			8,636,954			8,610,998
Average common shares outstanding -
diluted		8,659,165			8,651,139			8,619,833			8,655,173			8,616,873
ALLOWANCE FOR LOAN LOSSES
Beginning balance		$	13,108		$	12,801		$	12,675		$	12,801		$	12,601
Provision for loan losses		350			300			50			650			100
Charge-offs		(85		)	(49		)	(119		)	(134		)	(158		)
Recoveries		259			56			68			315			131
Ending balance		$	13,632		$	13,108		$	12,674		$	13,632		$	12,674
LOANS
Construction and land development		$	132,322		$	130,691		$	89,451		$	132,322		$	89,451
Commercial real estate		590,093			538,069			438,164			590,093			438,164
Residential real estate		211,305			216,035			216,857			211,305			216,857
Home equity		113,580			110,844			107,007			113,580			107,007
Commercial and industrial		236,418			219,455			201,381			236,418			201,381
Consumer		4,975			4,864			5,099			4,975			5,099
Total		$	1,288,693		$	1,219,958		$	1,057,959		$	1,288,693		$	1,057,959
NONPERFORMING ASSETS AT PERIOD-END
Nonperforming loans:
90 days past due and accruing		1,611			1,061			166			1,611			166
Nonaccrual		2,117			2,428			3,246			2,117			3,246
Other real estate owned		1,686			1,664			1,289			1,686			1,289
Nonperforming assets		$	5,414		$	5,153		$	4,701		$	5,414		$	4,701

American National Bankshares Inc.
Financial Highlights
Unaudited
	(Dollars in thousands, except per share data)
		2nd Qtr				1st Qtr			2nd Qtr			YTD				YTD
		2017				2017			2016			2017				2016
ASSET QUALITY RATIOS
Allowance for loan losses to total loans		1.06			%	1.07		%	1.20		%	1.06			%	1.20		%
Allowance for loan losses to
nonperforming loans		365.67				375.7			371.45			365.67				371.45
Nonperforming assets to total assets		0.31				0.3			0.29			0.31				0.29
Nonperforming loans to total loans		0.29				0.29			0.32			0.29				0.32
Annualized net charge-offs (recoveries)
to average loans		(0.06		)		—			0.02			(0.03		)		0.01
OTHER DATA
Fiduciary assets at period-end (e) (f)		$	520,861			$	519,901		$	491,517		$	520,861			$	491,517
Retail brokerage assets at period-end (e) (f)		$	297,463			$	292,505		$	269,066		$	297,463			$	269,066
Number full-time equivalent employees (g)		328				326			302			328				302
Number of full service offices		27				27			25			27				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 June 30, 2016 and 2015
			(Dollars in thousands)
			Unaudited
								Interest
				Average Balance				Income/Expense				Yield/Rate
				2017		2016		2017		2016		2017		2016
Loans:
	Commercial			$	229,690	$	200,000	$	2,241	$	1,976	3.91	%	3.97	%
	Real estate			1,026,010		844,914		11,502		9,591		4.48		4.54
	Consumer			5,072		5,166		89		140		7.04		10.9
		Total loans		1,260,772		1,050,080		13,832		11,707		4.39		4.46
Securities:
	Federal agencies & GSEs			96,339		100,205		454		446		1.89		1.78
	Mortgage-backed & CMOs			80,003		81,379		412		425		2.06		2.09
	State and municipal			104,115		164,788		938		1,472		3.6		3.57
	Other			15,406		14,692		179		130		4.65		3.54
		Total securities		295,863		361,064		1,983		2,473		2.68		2.74
Deposits in other banks				53,497		53,548		125		67		0.94		0.5
	Total interest-earning assets			1,610,132		1,464,692		15,940		14,247		3.96		3.89
Non-earning assets				126,554		127,569
		Total assets		$	1,736,686	$	1,592,261
Deposits:
	Demand			$	219,743	$	229,639	11		43		0.02		0.08
	Money market			322,737		221,508		342		91		0.43		0.17
	Savings			125,134		117,408		9		14		0.03		0.05
	Time			380,214		403,830		990		1,166		1.04		1.16
		Total deposits		1,047,828		972,385		1,352		1,314		0.52		0.54
Customer repurchase agreements				49,239		47,607		14		1		0.11		0.01
Long-term borrowings				37,748		37,624		325		294		3.44		3.13
	Total interest-bearing
		liabilities		1,134,815		1,057,616		1,691		1,609		0.60		0.61
Noninterest bearing demand deposits				386,024		323,135
Other liabilities				9,073		9,825
Shareholders' equity				206,774		201,685
		Total liabilities and
			shareholders' equity	$	1,736,686	$	1,592,261
Interest rate spread												3.36	%	3.28	%
Net interest margin												3.54	%	3.45	%
Net interest income (taxable equivalent basis)								14,249		12,638
Less: Taxable equivalent adjustment								337		478
Net interest income								$	13,912	$	12,160

			Net Interest Income Analysis
			For the Six Months Ended June 30, 2016 and 2015
			(Dollars in thousands)
			Unaudited
								Interest
				Average Balance				Income/Expense				Yield/Rate
				2017		2016		2017		2016		2017		2016
Loans:
	Commercial			$	224,833	$	194,137	$	4,294	$	3,830	3.85	%	3.99	%
	Real estate			999,484		834,943		22,126		19,681		4.43		4.71
	Consumer			5,230		5,336		181		371		6.98		14.06
		Total loans		1,229,547		1,034,416		26,601		23,882		4.33		4.63
Securities:
	Federal agencies & GSEs			96,651		94,244		896		824		1.85		1.75
	Mortgage-backed & CMOs			79,033		78,635		825		825		2.09		2.1
	State and municipal			117,681		165,349		2,090		2,964		3.55		3.59
	Other			16,781		15,810		365		278		4.35		3.52
		Total securities		310,146		354,038		4,176		4,891		2.69		2.76
Deposits in other banks				52,702		56,157		234		125		0.90		0.45
	Total interest-earning assets			1,592,395		1,444,611		31,011		28,898		3.90		4.01
Non-earning assets				125,915		127,081
		Total assets		$	1,718,310	$	1,571,692
Deposits:
	Demand			$	217,847	$	230,504	21		80		0.02		0.07
	Money market			314,235		213,391		583		166		0.37		0.16
	Savings			124,694		117,529		19		28		0.03		0.05
	Time			377,766		399,904		1,929		2,337		1.03		1.18
		Total deposits		1,034,542		961,328		2,552		2,611		0.5		0.55
Customer repurchase agreements				47,184		46,008		15		2		0.06		0.01
Other short-term borrowings				5,884		—		27		—		0.92		—
Long-term borrowings				37,733		37,609		644		583		3.41		3.1
	Total interest-bearing
		liabilities		1,125,343		1,044,945		3,238		3,196		0.58		0.62
Noninterest bearing demand deposits				378,558		316,699
Other liabilities				9,283		9,443
Shareholders' equity				205,126		200,605
		Total liabilities and
			shareholders' equity	$	1,718,310	$	1,571,692
Interest rate spread												3.32	%	3.39	%
Net interest margin												3.49	%	3.56	%
Net interest income (taxable equivalent basis)								27,773		25,702
Less: Taxable equivalent adjustment								727		958
Net interest income								$	27,046	$	24,744