Scott & Stringfellow, Inc.
Presentation
May 8, 2007
Charles H. Majors
President and Chief Executive Officer
628 Main Street
Danville, VA 24541
Phone: 434-773-2219
E-mail: majorsc@amnb.com
Neal A. Petrovich
Senior Vice President and
Chief Financial Officer
103 Tower Drive
Danville, VA 24540
Phone: 434-773-2242
E-mail: petrovichn@amnb.com
Please visit us on the web at www.amnb.com
Contact Information
This presentation may contain "forward-looking statements," within the meaning of federal securities laws that involve significant risks and uncertainties. Statements herein are based on certain assumptions and analyses by the Corporation 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; and significant changes in securities markets. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language in the Corporation's most recent Form 10-K report and other documents filed with the Securities and Exchange Commission. American National Bankshares Inc. 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 Profile
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Founded in 1909
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Headquartered in Danville, VA
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Commercial and Retail Banking
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Trust and Investment Services
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Insurance
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Title Insurance
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Personal and business lines
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Eighteen branch locations
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Three loan production offices
Geographical Information
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Danville Region
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7 offices in City of Danville and
1 office in Yanceyville, NC
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Southside Region
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1 office each in Martinsville,
Collinsville, Ridgeway, South
Boston, Chatham, Gretna, and
a Loan Production Office in
Greensboro, NC
Boston, Chatham, Gretna, and
a Loan Production Office in
Greensboro, NC
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Lynchburg Region
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3 offices in Lynchburg and 1
in Lovingston
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Loan production office in
Lynchburg
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New loan production office at Smith Mountain Lake (opened May 1, 2007 in temporary space)
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Branch application and
permanent site selection in
process
process
Acquisition of Community First
Financial Corporation
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Parent company of Community First Bank
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Date Closed – April 1, 2006
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Approximately $140 million in loans and deposits each
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Growth market
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Four excellent locations
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Accretive to earnings per share
14% increase
Net Income (thousands)
Earnings Per Share
Balance Sheet Highlights – 3/31/07
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$788 million in assets
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$97 million in shareholders’ equity
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$545 million in loans
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$651 million in deposits and repurchase agreements
Deposits
Loans
3/31/07
Deposit and Loan Distribution
New Loan Volume Q1 2007
In thousands
Up 12.4%
Net Income
No Change
Earnings Per Share
Up 32%
In thousands
Loans
(quarterly averages)
Loan Composition 3/31/07
In thousands
Nonperforming Assets
Up 19%
In thousands
Deposits and Repurchase Agreements
(quarterly averages)
Deposit Composition 3/31/07
Up 16%
In thousands
Noninterest Income
Q1 2007 | Q1 2006 | Change | |
| Trust fees | $879 | $755 | 16% |
| Service charges | 622 | 571 | 9% |
| Mortgage banking fees | 190 | 133 | 43% |
| Retail brokerage | 89 | 125 | -29% |
| Other | 432 | 317 | 36% |
TOTAL | $2,212 | $1,901 | 16% |
In thousands
Noninterest Income
In thousands
Up 9.2%
Trust and Investment Services
Peer average 82/18
Net interest income is after loan loss provision
Revenue Components
Q1 2007
Up 18%
In thousands
Noninterest Expense
Q1 2007 | Q1 2006 | Change | |
| Salaries | $2,390 | $1,984 | 20% |
| Benefits | $648 | $649 | 0% |
| Occupancy and equipment | $829 | $646 | 28% |
| Amortization | $94 | $39 | 141% |
| Other | $1,209 | $1,065 | 14% |
Total | $5,170 | $4,383 | 18% |
In thousands
Noninterest Expense
Key Financial Ratios – Q1 2007
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Return on average assets: 1.39%
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Scott & Stringfellow peer group average: 1.06%*
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Return on average equity: 11.35%
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Scott & Stringfellow peer group average: 11.52%*
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Return on average tangible equity: 15.81%
* Selected community banks and thrifts with market cap less than $1 billion.
Common Stock Information
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Market: Nasdaq Global Select Market
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Symbol: AMNB
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Shares outstanding: 6.1 million
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52 week range through 5/1/07: $21.75 - $24.41
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Closing price, 5/1/07: $22.24
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Avg daily volume (3 mo): 3,324 shares
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Market cap: $136 million
Dividends
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Dividend: $.22 per share quarterly
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Dividend yield: 3.96% (at $22.24 per share)
Common Stock Ratios
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Price to earnings (ttm): 12
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Scott & Stringfellow peer group average: 17 *
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Price to book: 1.5
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Scott & Stringfellow peer group average: 1.8 *
* Selected community banks and thrifts with market cap less than $1 billion.
Going Forward
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Priorities:
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Profitable growth
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Higher growth in Lynchburg region
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Maintain market share in Danville and Southside regions
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Stable credit in older markets permits more aggressive underwriting in new markets
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Look for opportunities in new markets with higher growth potential
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Consider other acquisition opportunities
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Relationship banking / exceptional customer service
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Continue to control expenses
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Maintain attractive dividend
Thank you!