Exhibit 99.1

FOR IMMEDIATE RELEASE

Contact:

Jeffrey W. Farrar

Executive Vice President, COO & CFO

(434)773-2274

farrarj@amnb.com

AMERICAN NATIONAL BANKSHARES

REPORTS FOURTH QUARTER AND FULL YEAR 2021 EARNINGS

Danville, VA, January 20, 2022 – American National Bankshares Inc. (NASDAQ: AMNB) (“American National” or the “Company”) today reported fourth quarter 2021 earnings of $11.3 million, or $1.05 per diluted common share. Those results compare to $8.8 million, or $0.80 per diluted common share, during the same quarter in the prior year, and net income of $10.2 million, or $0.94 per diluted common share, recognized for the third quarter of 2021. Earnings for the twelve months ended December 31, 2021 were $43.5 million, or $4.00 per diluted common share, compared to $30.0 million, or $2.73 per diluted common share for the same period of 2020. 

President and Chief Executive Officer Jeffrey V. Haley commented, “American National finished 2021 on a positive note with strong earnings for the fourth quarter and the full year. Core loan growth for the quarter was 6.6% annualized in spite of some significant paydown activity, and deposit growth continued to exceed expectations. Business activity and our local economies remain fairly robust in spite of factors associated with elevated inflation, supply chain issues and the ongoing pandemic.”

“I am so proud and appreciative of the efforts of our employees, the support of our customers and our shareholders over the past year. We had a very successful year financially, but also achieved many other milestones as we continue to build the Company for future success.”  

Fourth quarter 2021 highlights include:

● Average loans held for investment, excluding U.S. Small Business Administration Paycheck Protection Program (“PPP”) loans, grew $69.0 million, or 14.9% annualized, during the fourth quarter compared to growth of $39.5 million, or 8.7% annualized, in the third quarter of this year and compared to a decrease of $13.6 million, or 3.0% annualized, in the fourth quarter of the prior year.

● Earnings produced a return on average tangible common equity of 17.63% for the fourth quarter of 2021, compared to 16.01% in the previous quarter and 14.90% for the same quarter in the prior year (non-GAAP).

● Average deposits grew 5.3% during the quarter and 14.9% over the same quarter of 2020; the cost of interest-bearing deposits decreased to 0.14% in the fourth quarter, compared to 0.17% in the previous quarter and 0.43% in the same quarter of the prior year.

● Fully taxable equivalent (“FTE”) net interest margin was 2.93% for the quarter, down from 3.09% in the third quarter of 2021 and from 3.22% in the same quarter of the prior year (non-GAAP).

● Noninterest revenues decreased $279 thousand, or 5.4%, when compared to the previous quarter, and increased $623 thousand, or 14.8%, compared to the same quarter in the prior year.

● Noninterest expense increased $620 thousand, or 4.2%, when compared to the previous quarter, and increased $804 thousand, or 5.5%, when compared to the same quarter in the prior year.

● The Company recognized a negative provision for loan losses in the fourth quarter of 2021 of $2.0 million compared to a provision expense of $482 thousand in the third quarter of 2021 and $585 thousand in the fourth quarter of 2020. Annualized net charge-offs (recoveries) as a percentage of average loans outstanding were (0.00%) for the fourth quarter 2021, (0.01%) for the third quarter of 2021 and 0.05% for the fourth quarter of 2020.

● Nonperforming assets as a percentage of total assets were 0.07% at December 31, 2021, up from 0.06% at September 30, 2021 but down from 0.12% at December 31, 2020.

SMALL BUSINESS ADMINISTRATION’S PPP

The Company has processed a total of $364.2 million in PPP loans, with total remaining outstanding net PPP loans of $12.2 million at December 31, 2021, down from $37.2 million at September 30, 2021. These quarter-end balances are net of $24.9 million of loans forgiven in the fourth quarter of 2021 compared to $66.9 million forgiven in the third quarter. Total PPP fees recognized in net interest income during the fourth quarter of 2021 were $919,000 compared to the prior quarter’s $2.4 million. The interest income from the outstanding PPP portfolio generated $68,000 and $169,000, respectively, in the fourth and third quarters of 2021.

NET INTEREST INCOME

Net interest income for the fourth quarter of 2021 was stable compared to the third quarter at $23.1 million. The fourth quarter of 2021 compared to the same quarter of 2020 reflected an increase of $958 thousand, or 4.3%. The FTE net interest margin for the quarter was 2.93%, down from 3.09% in the prior quarter and 3.22% in the same quarter a year ago (non-GAAP). The reduction in PPP income was offset by additional accretion income on purchased loans, higher interest income associated with higher average balances on loans and growth in investment income in the fourth quarter compared to the third quarter of 2021. The increase in net interest income from the same quarter in the prior year was attributable to the same factors as well as the significantly lower rate environment in 2021, which reduced interest expense on deposits $1.2 million, or 64.0%.

The Company’s FTE net interest margin includes the impact of acquisition accounting fair value adjustments. During the fourth quarter of 2021, net accretion related to acquisition accounting amounted to $2.1 million compared to $1.3 million in the prior quarter of 2021 and $1.2 million for the same quarter in 2020. Net accretion for the twelve months ended December 31, 2021 amounted to $5.2 million, compared to $3.8 million for the same period in 2020. Estimated remaining net accretion from acquisitions for the periods indicated is as follows (dollars in thousands):

For the years ending (estimated):

2022	$	1,100
2023		690
2024		429
2025		292
2026		171
Thereafter		234

ASSET QUALITY

Nonperforming assets (“NPAs”) totaled $2.4 million as of December 31, 2021, up slightly from $2.1 million at September 30, 2021, and down significantly from $3.7 million at December 31, 2020. NPAs as a percentage of total assets were 0.07% at December 31, 2021, compared to 0.06% at September 30, 2021 and 0.12% at December 31, 2020.

The Company recorded a negative provision for the fourth quarter of 2021 of $2.0 million compared to the recognition of a provision of $482 thousand in the third quarter and $585 thousand in the fourth quarter in the previous year. The fourth quarter of 2021 negative provision compared to the third quarter of 2021 and the fourth quarter of 2020 was the result of continued improvement in economic conditions, ongoing low charge-off and deliquency rates, and overlal strong asset quality metrics. In addition, the third quarter provision was higher due to significant loan growth during the period. The allowance for loan losses was $18.7 million at December 31, 2021, compared to $20.6 million at September 30, 2021 and $21.4 million at December 31, 2020. Annualized net charge-offs (recoveries) as a percentage of average loans outstanding were (0.00%) for the fourth quarter of 2021, compared to (0.01%) in the previous quarter and 0.05% for the same quarter in the prior year. The allowance as a percentage of loans held for investment was 0.96% at December 31, 2021, compared to 1.06% at September 30, 2021, and 1.06% at December 31, 2020. Excluding PPP loans, the allowance as a percentage of loans decreased to 0.97% at December 31, 2021, compared to 1.08% at September 30, 2021 and 1.19% at December 31, 2020.

NONINTEREST INCOME

Noninterest income decreased $279 thousand, or 5.4%, to $4.8 million for the quarter ended December 31, 2021 from $5.1 million in the prior quarter and increased $623 thousand, or 14.8%, from the same quarter in the prior year. The fourth quarter of 2021 decrease from the prior quarter was the result of increase write-downs on premises and equipment, net of $190 thousand or 178% and a decrease in mortgage banking income of $243 thousand or 24.6%. The increased expense was partially offset by an increase in other fees and commissions of $162 thousand, or 14.1%, in the fourth quarter compared to the third quarter of 2021.

The fourth quarter of 2021 compared to the fourth quarter of 2020 reflected significant growth in trust fees of $240 thousand, or 23.4%, other fees and commissions of $272 thousand, or 26.2%, income from small business investment companies of $226 thousand, or 95.8%, offset by a $296 thousand, or 28.4%, decrease in mortgage banking income.

NONINTEREST EXPENSE

Noninterest expense for the fourth quarter of 2021 amounted to $15.5 million, up $620 thousand, or 4.2%, when compared to the $14.8 million for the previous quarter and up $804 thousand, or 5.5%, from $14.7 million during the same quarter in the previous year. The increase in the fourth quarter compared to the third quarter of 2021 was due to higher compensation costs associated primarily with incentive accrual adjustments, and in other expenses which included $150,000 in additional charitable contributions. Fourth quarter 2021 increases compared to the same quarter of 2020 were primarily due to increased compensation costs and expense seasonality.

INCOME TAXES

The effective tax rate for the three months ended December 31, 2021 was 21.80%, compared to 21.05% for the prior quarter and 20.94% for the same quarter in the prior year. The effective tax rate was relatively consistent among the periods, with slight increases in the 2021 periods atttributable to changes in pre-tax earnings and the levels of permanent tax differences.

BALANCE SHEET

Total assets at December 31, 2021 were $3.3 billion, an increase of $45.5 million from September 30, 2021 and $284.6 million from December 31, 2020. The growth over the previous quarter and over the same quarter of 2020 is the result of continued core deposit growth, deployment of excess liquidity into investments, and loan growth.

At December 31, 2021, loans held for investment (net of deferred fees and costs) were $1.9 billion, an increase of $6.2 million, or 1.3%, annualized from September 30, 2021. This increase is net of $25.9 million of PPP loans forgiven during the fourth quarter of 2021. Loans held for investment increased $130.6 million, or 7.2%, from December 31, 2020 excluding PPP loans.

Investment securities available for sale amounted to $692.5 million at December 31, 2021, with growth of $48.6 million, or 7.5%, compared to September 30, 2021, and growth of $226.4 million, or 48.6%, compared to December 31, 2020.

Deposits amounted to $2.9 billion at December 31, 2021, with growth of $28.3 million, or 4.0%, annualized from September 30, 2021 and $279.0 million, or 10.7%, compared to December 31, 2020. The growth over the same quarter and prior quarter of 2020 is a result of continued higher than average cash balances being maintained by customers. 

The Company continues to be well-capitalized as defined by regulators, with tangible common equity to tangible assets of 8.17% at December 31, 2021 as compared to 8.14% at September 30, 2021 and compared to 8.34% at December 31, 2020. The Company’s common equity Tier 1, Tier 1, total, and Tier 1 leverage capital ratios were 12.43%, 13.73%, 14.61% and 9.13%, respectively, at December 31, 2021.

ABOUT AMERICAN NATIONAL

American National is a multi-state bank holding company with total assets of approximately $3.3 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. American National Bank also manages an additional $1.2 billion of trust, investment and brokerage assets in its Wealth Division. Additional information about American National and American National Bank is available on American National's website at www.amnb.com.

NON-GAAP FINANCIAL MEASURES

This release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States (“GAAP”). American National’s management uses these non-GAAP financial measures in its analysis of American National’s performance. These measures typically adjust GAAP performance measures to exclude the effects of the amortization of intangibles and include the tax benefit associated with revenue items that are tax-exempt, as well as adjust income available to common shareholders for certain significant activities or transactions that are infrequent in nature. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of American National’s core businesses. These non-GAAP disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. For a reconciliation of non-GAAP financial measures, see “Reconciliation of Non-GAAP Financial Measures” at the end of this release.

FORWARD-LOOKING STATEMENTS

Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current expectations and involve a number of assumptions. American National intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. American National’s ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors that could have a material effect on the operations and future prospects of American National include but are not limited to: (1) the impacts of the ongoing COVID-19 pandemic and the associated efforts to limit the spread of the virus; (2) expected revenue synergies and cost savings from acquisitions and depositions; (3) changes in interest rates, general economic conditions, legislation and regulation, and monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury, Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System; (4) the quality and composition of the loan and securities portfolios, demand for loan products, deposit flows, competition, and demand for financial services in American National’s market areas; (5) the adequacy of the level of the allowance for loan losses, the amount of loan loss provisions required in future quarters, and the failure of assumptions underlying the allowance for loan losses; (6) cybersecurity threats or attacks, the implementation of new technologies, and the ability to develop and maintain secure and reliable electronic systems; (7) accounting principles, policies, and guidelines; and (8) other risk factors detailed from time to time in filings made by American National with the Securities and Exchange Commission. American National undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

American National Bankshares Inc.

Consolidated Balance Sheets

(Dollars in thousands, except per share data)

	December 31,
	2021			2020
	(Unaudited)			(Audited)
Assets
Cash and due from banks	$	23,095		$	30,767
Interest-bearing deposits in other banks		487,773			343,603
Securities available for sale, at fair value		692,467			466,091
Restricted stock, at cost		8,056			8,715
Loans held for sale		8,481			15,591
Loans, net of deferred fees and costs		1,946,580			2,015,056
Less allowance for loan losses		(18,678	)		(21,403	)
Net Loans		1,927,902			1,993,653
Premises and equipment, net		35,564			39,723
Other real estate owned, net		143			958
Goodwill		85,048			85,048
Core deposit intangibles, net		4,627			6,091
Bank owned life insurance		29,107			28,482
Other assets		32,334			31,288
Total assets	$	3,334,597		$	3,050,010
Liabilities
Demand deposits -- noninterest-bearing	$	1,009,081		$	830,094
Demand deposits -- interest-bearing		547,878			501,283
Money market deposits		719,498			666,122
Savings deposits		259,193			217,405
Time deposits		354,703			396,426
Total deposits		2,890,353			2,611,330
Customer repurchase agreements		41,128			42,551
Long-term borrowings		28,232			35,630
Other liabilities		20,092			22,605
Total liabilities		2,979,805			2,712,116
Shareholders' equity
Preferred stock, $5 par value, 2,000,000 shares authorized, none outstanding		-			-
Common stock, $1 par value, 20,000,000 shares authorized, 10,766,967 shares outstanding at December 31, 2021 and 10,982,367 shares outstanding at December 31, 2020		10,710			10,926
Capital in excess of par value		147,777			154,850
Retained earnings		201,380			169,681
Accumulated other comprehensive income (loss), net		(5,075	)		2,437
Total shareholders' equity		354,792			337,894
Total liabilities and shareholders' equity	$	3,334,597		$	3,050,010

American National Bankshares Inc.

Consolidated Statements of Income

(Dollars in thousands, except per share data)

	For the Three Months Ended									For the Twelve Months Ended
	12/31/21			9/30/21			12/31/20			12/31/21			12/31/20
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
Interest and Dividend Income:
Interest and fees on loans	$	21,706		$	21,974		$	22,654		$	87,040		$	87,700
Interest and dividends on securities:
Taxable		2,012			1,896			1,536			7,309			6,764
Tax-exempt		92			94			103			385			433
Dividends		115			112			121			464			503
Other interest income		223			201			84			598			440
Total interest and dividend income		24,148			24,277			24,498			95,796			95,840
Interest Expense:
Interest on deposits		655			781			1,821			3,645			9,729
Interest on short-term borrowings		3			3			22			22			259
Interest on long-term borrowings		386			400			509			1,738			2,032
Total interest expense		1,044			1,184			2,352			5,405			12,020
Net Interest Income		23,104			23,093			22,146			90,391			83,820
(Recovery of) Provision for loan losses		(1,955	)		482			585			(2,825	)		8,916
Net Interest Income After (Recovery of) Provision for Loan Losses		25,059			22,611			21,561			93,216			74,904
Noninterest Income:
Trust fees		1,265			1,311			1,025			5,022			4,044
Service charges on deposit accounts		695			664			677			2,611			2,557
Other fees and commissions		1,309			1,147			1,037			4,953			3,925
Mortgage banking income		746			989			1,042			4,195			3,514
Securities gains, net		35			-			-			35			814
Brokerage fees		264			265			192			997			745
Income from Small Business Investment Companies		462			491			236			1,972			270
Income (loss) from insurance investments		137			132			(58	)		1,199			321
Losses on premises and equipment, net		(297	)		(107	)		(13	)		(885	)		(110	)
Other		228			231			83			932			763
Total noninterest income		4,844			5,123			4,221			21,031			16,843
Noninterest Expense:
Salaries and employee benefits		8,461			8,185			8,225			32,342			29,765
Occupancy and equipment		1,484			1,513			1,470			6,032			5,586
FDIC assessment		220			194			206			864			639
Bank franchise tax		446			440			425			1,767			1,702
Core deposit intangible amortization		351			361			391			1,464			1,637
Data processing		734			748			764			2,958			3,017
Software		357			344			342			1,368			1,454
Other real estate owned, net		(17	)		21			26			131			60
Other		3,427			3,037			2,810			12,082			10,705
Total noninterest expense		15,463			14,843			14,659			59,008			54,565
Income Before Income Taxes		14,440			12,891			11,123			55,239			37,182
Income Taxes		3,147			2,713			2,329			11,713			7,137
Net Income	$	11,293		$	10,178		$	8,794		$	43,526		$	30,045
Net Income Per Common Share:
Basic	$	1.05		$	0.94		$	0.80		$	4.00		$	2.74
Diluted	$	1.05		$	0.94		$	0.80		$	4.00		$	2.73
Weighted Average Common Shares Outstanding:
Basic		10,774,268			10,833,875			10,975,349			10,873,817			10,981,623
Diluted		10,776,970			10,836,293			10,978,931			10,877,231			10,985,790

American National Bankshares Inc.

Financial Highlights

(Dollars in thousands, except per share data)										At or for the Twelve Months
	4th Qtr			3rd Qtr			4th Qtr			Ended December 31,
	2021			2021			2020			2021			2020
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
EARNINGS
Interest income	$	24,148		$	24,277		$	24,498		$	95,796		$	95,840
Interest expense		1,044			1,184			2,352			5,405			12,020
Net interest income		23,104			23,093			22,146			90,391			83,820
(Recovery of) Provision for loan losses		(1,955	)		482			585			(2,825	)		8,916
Noninterest income		4,844			5,123			4,221			21,031			16,843
Noninterest expense		15,463			14,843			14,659			59,008			54,565
Income taxes		3,147			2,713			2,329			11,713			7,137
Net income		11,293			10,178			8,794			43,526			30,045
PER COMMON SHARE
Net income per share - basic	$	1.05		$	0.94		$	0.80		$	4.00		$	2.74
Net income per share - diluted		1.05			0.94			0.80			4.00			2.73
Cash dividends paid		0.28			0.27			0.27			1.09			1.08
Book value per share		32.95			32.51			30.77			32.95			30.77
Book value per share - tangible (a)		24.62			24.16			22.47			24.62			22.47
Closing market price		37.68			33.04			26.21			37.68			26.21
FINANCIAL RATIOS
Return on average assets		1.35	%		1.27	%		1.18	%		1.37	%		1.08	%
Return on average common equity		12.82			11.58			10.48			12.50			9.12
Return on average tangible common equity (a)		17.63			16.01			14.90			17.34			13.19
Average common equity to average assets		10.50			10.99			11.30			10.96			11.88
Tangible common equity to tangible assets (a)		8.17			8.14			8.34			8.17			8.34
Net interest margin, taxable equivalent		2.93			3.09			3.22			3.05			3.30
Efficiency ratio (a)		53.46			51.03			53.92			51.05			52.80
Effective tax rate		21.79			21.05			20.94			21.20			19.19
PERIOD-END BALANCES
Securities	$	700,523		$	651,995		$	474,806		$	700,523		$	474,806
Loans held for sale		8,481			9,518			15,591			8,481			15,591
Loans, net		1,946,580			1,940,332			2,015,056			1,946,580			2,015,056
Goodwill and other intangibles		89,675			90,026			91,139			89,675			91,139
Assets		3,334,597			3,289,063			3,050,010			3,334,597			3,050,010
Assets - tangible (a)		3,244,922			3,199,037			2,958,871			3,244,922			2,958,871
Deposits		2,890,353			2,862,081			2,611,330			2,890,353			2,611,330
Customer repurchase agreements		41,128			26,595			42,551			41,128			42,551
Long-term borrowings		28,232			28,207			35,630			28,232			35,630
Shareholders' equity		354,792			350,387			337,894			354,792			337,894
Shareholders' equity - tangible (a)		265,117			260,361			246,755			265,117			246,755
AVERAGE BALANCES
Securities (b)	$	654,595		$	569,508		$	372,529		$	549,554		$	347,952
Loans held for sale		8,121			9,835			8,601			11,257			6,578
Loans, net		1,943,238			1,913,446			2,063,397			1,953,121			2,008,683
Interest-earning assets		3,154,730			2,989,661			2,754,455			2,967,799			2,551,913
Goodwill and other intangibles		89,855			90,257			91,358			90,413			91,751
Assets		3,357,223			3,199,514			2,971,505			3,176,564			2,773,007
Assets - tangible (a)		3,267,368			3,109,257			2,880,147			3,086,151			2,681,256
Interest-bearing deposits		1,868,695			1,817,595			1,701,395			1,797,385			1,595,694
Deposits		2,914,381			2,768,268			2,536,363			2,736,571			2,342,353
Customer repurchase agreements		39,645			29,681			40,819			37,632			42,937
Other short-term borrowings		-			-			-			-			1
Long-term borrowings		28,218			28,192			35,617			31,878			35,586
Shareholders' equity		352,395			351,646			335,671			348,158			329,353
Shareholders' equity - tangible (a)		262,540			261,389			244,313			257,745			237,602

American National Bankshares Inc.

Financial Highlights

(Dollars in thousands, except per share data)										At or for the Twelve Months
	4th Qtr			3rd Qtr			4th Qtr			Ended December 31,
	2021			2021			2020			2021			2020
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
CAPITAL
Weighted average shares outstanding - basic		10,774,268			10,833,875			10,975,349			10,873,817			10,981,623
Weighted average shares outstanding - diluted		10,776,970			10,836,293			10,978,931			10,877,231			10,985,790
COMMON STOCK REPURCHASE PROGRAM
Total shares of common stock repurchased		16,580			100,764			-			264,579			62,669
Average price paid per share of common stock	$	37.12		$	32.87		$	-		$	33.10		$	34.90
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	20,630		$	20,097		$	21,088		$	21,403		$	13,152
(Recovery of) Provision for loan losses		(1,955	)		482			585			(2,825	)		8,916
Charge-offs		(76	)		(19	)		(331	)		(146	)		(1,006	)
Recoveries		79			70			61			246			341
Ending balance	$	18,678		$	20,630		$	21,403		$	18,678		$	21,403
LOANS
Construction and land development	$	134,221		$	120,193		$	140,071		$	134,221		$	140,071
Commercial real estate - owner occupied		391,517			404,029			373,680			391,517			373,680
Commercial real estate - non-owner occupied		731,034			713,339			627,569			731,034			627,569
Residential real estate		289,757			280,351			269,137			289,757			269,137
Home equity		93,203			95,317			104,881			93,203			104,881
Commercial and industrial		299,773			320,278			491,256			299,773			491,256
Consumer		7,075			6,825			8,462			7,075			8,462
Total	$	1,946,580		$	1,940,332		$	2,015,056		$	1,946,580		$	2,015,056
NONPERFORMING ASSETS AT PERIOD-END
Nonperforming loans:
90 days past due and accruing	$	216		$	-		$	262		$	216		$	262
Nonaccrual		2,006			1,903			2,434			2,006			2,434
Other real estate owned and repossessions		143			213			958			143			958
Nonperforming assets	$	2,365		$	2,116		$	3,654		$	2,365		$	3,654
ASSET QUALITY RATIOS
Allowance for loan losses to total loans		0.96	%		1.06	%		1.06	%		0.96	%		1.06	%
Allowance for loan losses to nonperforming loans		840.59			1,084.08			793.88			840.59			793.88
Nonperforming assets to total assets		0.07			0.06			0.12			0.07			0.12
Nonperforming loans to total loans		0.11			0.10			0.13			0.11			0.13
Annualized net charge-offs (recoveries) to average loans		(0.00	)		(0.01	)		0.05			(0.01	)		0.03
OTHER DATA
Fiduciary assets at period-end (c) (d)	$	752,410		$	697,528		$	614,016		$	752,410		$	614,016
Retail brokerage assets at period-end (c) (d)	$	418,850		$	406,408		$	362,022		$	418,850		$	362,022
Number full-time equivalent employees (e)		346			345			342			346			342
Number of full service offices		26			26			26			26			26
Number of loan production offices		1			1			1			1			1
Number of ATMs		36			36			37			36			37

Notes:

(a) - This financial measure is not calculated in accordance with GAAP. For a reconciliation of non-GAAP financial measures, see "Reconciliation of Non-GAAP Financial Measures" at the end of this release.

(b) - Average does not include unrealized gains and losses.

(c) - Market value.

(d) - Assets are not owned by American National and are not reflected in the consolidated balance sheet.

(e) - Average for quarter.

Net Interest Income Analysis

For the Three Months Ended December 31, 2021 and 2020

(Dollars in thousands)

					Interest
	Average Balance				Income/Expense (a)				Yield/Rate
	2021		2020		2021		2020		2021			2020
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)			(Unaudited)
Loans:
Commercial	$	310,175	$	507,750	$	3,386	$	5,354		4.33	%		4.19	%
Real estate		1,634,660		1,556,192		18,244		17,206		4.46			4.42
Consumer		6,524		8,056		112		137		6.81			6.77
Total loans (b)		1,951,359		2,071,998		21,742		22,697		4.45			4.38
Securities:
U.S. Treasury		116,629		14,126		242		4		0.83			0.11
Federal agencies & GSEs		93,042		76,606		265		276		1.14			1.44
Mortgage-backed & CMOs		355,492		206,817		1,117		916		1.26			1.77
State and municipal		63,148		53,257		314		304		1.99			2.28
Other		26,284		21,723		305		286		4.64			5.27
Total securities		654,595		372,529		2,243		1,786		1.37			1.92
Deposits in other banks		548,776		309,928		223		84		0.16			0.11
Total interest-earning assets		3,154,730		2,754,455		24,208		24,567		3.07			3.56
Non-earning assets		202,493		217,050
Total assets	$	3,357,223	$	2,971,505
Deposits:
Demand	$	505,528	$	433,356		37		50		0.03			0.05
Money market		743,354		647,320		101		380		0.05			0.23
Savings		257,289		215,233		6		16		0.01			0.03
Time		362,524		405,486		511		1,375		0.56			1.35
Total deposits		1,868,695		1,701,395		655		1,821		0.14			0.43
Customer repurchase agreements		39,645		40,819		3		22		0.03			0.21
Long-term borrowings		28,218		35,617		386		509		5.47			5.72
Total interest-bearing liabilities		1,936,558		1,777,831		1,044		2,352		0.21			0.53
Noninterest bearing demand deposits		1,045,686		834,968
Other liabilities		22,584		23,035
Shareholders' equity		352,395		335,671
Total liabilities and shareholders' equity	$	3,357,223	$	2,971,505
Interest rate spread										2.86	%		3.03	%
Net interest margin										2.93	%		3.22	%
Net interest income (taxable equivalent basis)						23,164		22,215
Less: Taxable equivalent adjustment (c)						60		69
Net interest income					$	23,104	$	22,146

Notes:

(a) - Interest income includes net accretion/amortization of acquired loan fair value adjustments and the net accretion/ amortization of deferred loan fees and costs.

(b) - Nonaccrual loans are included in the average balances.

(c) - A tax rate of 21% was used in adjusting interest on tax-exempt assets to a fully taxable equivalent basis.

Net Interest Income Analysis

For the Twelve Months Ended December 31, 2021 and 2020

(Dollars in thousands)

					Interest
	Average Balance				Income/Expense (a)				Yield/Rate
	2021		2020		2021		2020		2021			2020
	(Unaudited)		(Audited)		(Unaudited)		(Unaudited)		(Unaudited)			(Audited)
Loans:
Commercial	$	372,538	$	475,068	$	18,819	$	17,768		5.05	%		3.74	%
Real estate		1,584,856		1,531,195		67,887		69,525		4.28			4.54
Consumer		6,984		8,998		475		588		6.80			6.53
Total loans (b)		1,964,378		2,015,261		87,181		87,881		4.44			4.36
Securities:
U.S. Treasury		57,048		9,010		507		51		0.89			0.57
Federal agencies & GSEs		97,943		72,112		1,132		1,423		1.16			1.97
Mortgage-backed & CMOs		308,158		200,612		4,142		4,060		1.34			2.02
State and municipal		61,698		45,836		1,272		1,175		2.06			2.56
Other		24,707		20,382		1,205		1,098		4.88			5.39
Total securities		549,554		347,952		8,258		7,807		1.50			2.24
Deposits in other banks		453,867		188,700		598		440		0.13			0.23
Total interest-earning assets		2,967,799		2,551,913		96,037		96,128		3.24			3.77
Non-earning assets		208,765		221,094
Total assets	$	3,176,564	$	2,773,007
Deposits:
Demand	$	476,710	$	386,790		152		344		0.03			0.09
Money market		710,948		574,510		758		2,634		0.11			0.46
Savings		243,123		198,313		26		117		0.01			0.06
Time		366,604		436,081		2,709		6,634		0.74			1.52
Total deposits		1,797,385		1,595,694		3,645		9,729		0.20			0.61
Customer repurchase agreements		37,632		42,937		22		259		0.06			0.60
Other short-term borrowings		-		1		-		-		-			0.50
Long-term borrowings		31,878		35,586		1,738		2,032		5.45			5.71
Total interest-bearing liabilities		1,866,895		1,674,218		5,405		12,020		0.29			0.72
Noninterest bearing demand deposits		939,186		746,659
Other liabilities		22,325		22,777
Shareholders' equity		348,158		329,353
Total liabilities and shareholders' equity	$	3,176,564	$	2,773,007
Interest rate spread										2.95	%		3.05	%
Net interest margin										3.05	%		3.30	%
Net interest income (taxable equivalent basis)						90,632		84,108
Less: Taxable equivalent adjustment (c)						241		288
Net interest income					$	90,391	$	83,820

Notes:

(a) - Interest income includes net accretion/amortization of acquired loan fair value adjustments and the net accretion/ amortization of deferred loan fees and costs.

(b) - Nonaccrual loans are included in the average balances.

(c) - A tax rate of 21% was used in adjusting interest on tax-exempt assets to a fully taxable equivalent basis.

American National Bankshares Inc.

Reconciliation of Non-GAAP Financial Measures

(Dollars in thousands, except per share data)										At or for the Twelve Months
	4th Qtr			3rd Qtr			4th Qtr			Ended December 31,
	2021			2021			2020			2021			2020
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)
EFFICIENCY RATIO
Noninterest expense	$	15,463		$	14,843		$	14,659		$	59,008		$	54,565
Add/subtract: gain/loss on sale of OREO		-			-			(8	)		(111	)		4
Subtract: core deposit intangible amortization		(351	)		(361	)		(391	)		(1,464	)		(1,637	)
	$	15,112		$	14,482		$	14,260		$	57,433		$	52,932
Net interest income	$	23,104		$	23,093		$	22,146		$	90,391		$	83,820
Tax equivalent adjustment		60			59			69			241			288
Noninterest income		4,844			5,123			4,221			21,031			16,843
Subtract: gain on securities		(35	)		-			-			(35	)		(814	)
Add: loss on fixed assets		297			107			13			885			110
	$	28,270		$	28,382		$	26,449		$	112,513		$	100,247
Efficiency ratio		53.46	%		51.03	%		53.92	%		51.05	%		52.80	%
TAX EQUIVALENT NET INTEREST INCOME
Non-GAAP measures:
Interest income - loans	$	21,742		$	22,012		$	22,697		$	87,181		$	87,881
Interest income - investments and other		2,466			2,327			1,870			8,856			8,247
Interest expense - deposits		(655	)		(781	)		(1,821	)		(3,645	)		(9,729	)
Interest expense - customer repurchase agreements		(3	)		(3	)		(22	)		(22	)		(259	)
Interest expense - long-term borrowings		(386	)		(400	)		(509	)		(1,738	)		(2,032	)
Total net interest income	$	23,164		$	23,155		$	22,215		$	90,632		$	84,108
Less non-GAAP measures:
Tax benefit on nontaxable interest - loans		(36	)		(38	)		(43	)		(141	)		(181	)
Tax benefit on nontaxable interest - securities		(24	)		(24	)		(26	)		(100	)		(107	)
GAAP measures	$	23,104		$	23,093		$	22,146		$	90,391		$	83,820
RETURN ON AVERAGE TANGIBLE EQUITY
Return on average equity (GAAP basis)		12.82	%		11.58	%		10.48	%		12.50	%		9.12	%
Impact of excluding average goodwill and other intangibles		4.81			4.43			4.42			4.84			4.07
Return on average tangible equity (non-GAAP)		17.63	%		16.01	%		14.90	%		17.34	%		13.19	%
TANGIBLE EQUITY TO TANGIBLE ASSETS
Equity to assets ratio (GAAP basis)		10.64	%		10.65	%		11.08	%		10.64	%		11.08	%
Impact of excluding goodwill and other intangibles		(2.47	)		(2.51	)		(2.74	)		(2.47	)		(2.74	)
Tangible equity to tangible assets ratio (non-GAAP)		8.17	%		8.14	%		8.34	%		8.17	%		8.34	%
TANGIBLE BOOK VALUE
Book value per share (GAAP basis)	$	32.95		$	32.51		$	30.77		$	32.95		$	30.77
Impact of excluding goodwill and other intangibles		(8.33	)		(8.35	)		(8.30	)		(8.33	)		(8.30	)
Tangible book value per share (non-GAAP)	$	24.62		$	24.16		$	22.47		$	24.62		$	22.47
ADJUSTED LOAN LOSS ALLOWANCE
Allowance for loan losses	$	18,678		$	20,630		$	21,403		$	18,678		$	21,403
Credit discount on purchased loans		4,474			5,258			7,255			4,474			7,255
Adjusted loan loss allowance	$	23,152		$	25,888		$	28,658		$	23,152		$	28,658
Total loans, net of deferred fees and costs	$	1,946,580		$	1,940,332		$	2,015,056		$	1,946,580		$	2,015,056
Subtract: PPP loans, net		(12,239	)		(37,199	)		(211,275	)		(12,239	)		(211,275	)
Total loans less PPP loans, net	$	1,934,341		$	1,903,133		$	1,803,781		$	1,934,341		$	1,803,781
Adjusted loan loss allowance to total loans less PPP loans, net		1.20	%		1.36	%		1.59	%		1.20	%		1.59	%
Allowance for loan losses to total loans less PPP loans, net		0.97	%		1.08	%		1.19	%		0.97	%		1.19	%