AMNB American National Bankshares, Inc.

Risks

• The Company's business is subject to interest rate risk, and variations in interest rates and inadequate management of interest rate risk may negatively affect financial performance.
• The Company faces strong competition from financial services companies and other companies that offer banking and other financial services, which could negatively affect the Company's business.
• Changes in economic conditions could materially and negatively affect the Company's business.
• The Company's credit standards and its on-going credit assessment processes might not protect it from significant credit losses.
• The Company's focus on lending to small to mid-sized community-based businesses may increase its credit risk.
• The Company depends on the accuracy and completeness of information about clients and counterparties, and its financial condition could be adversely affected if it relies on misleading information.
• The allowance for loan losses may not be adequate to cover actual losses.
• Nonperforming assets take significant time to resolve and adversely affect the Company's results of operations and financial condition.
• A downturn in the local real estate market could materially and negatively affect the Company's business.
• The Company relies upon independent appraisals to determine the value of the real estate which secures a significant portion of its loans, and the values indicated by such appraisals may not be realizable if the Company is forced to foreclose upon such loans.
• The Company is dependent on key personnel and the loss of one or more of those key personnel may materially and adversely affect the Company's operations and prospects.
• The inability of the Company to successfully manage its growth or implement its growth strategy may adversely affect the Company's results of operations and financial condition.
• Difficulties in combining the operations of acquired entities with the Company's own operations may prevent the Company from achieving the expected benefits from acquisitions.
• The Company is subject to extensive regulation which could adversely affect its business.
• Regulatory capital standards may have an adverse effect on the Company's profitability, lending, and ability to pay dividends on the Company's securities.
• Regulations issued by the CFPB could adversely impact earnings due to, among other things, increased compliance costs or costs due to noncompliance.
• Changes in accounting standards could impact reported earnings.
• Failure to maintain effective systems of internal and disclosure control could have a material adverse effect on the Company's results of operation and financial condition.
• The carrying value of goodwill may be adversely impacted.
• The Company may need to raise additional capital in the future to continue to grow, but may be unable to obtain additional capital on favorable terms or at all.
• The Company relies on other companies to provide key components of the Company's business infrastructure.
• The Company's operations may be adversely affected by cybersecurity risks.
• The Company’s risk-management framework may not be effective in mitigating risk and loss.
• Current and proposed regulation addressing consumer privacy and data use and security could increase the Company's costs and impact its reputation.
• Consumers may increasingly decide not to use the Bank to complete their financial transactions because of technological and other changes, which would have a material adverse impact on the Company's financial condition and operations.
• Negative perception of the Company through media may adversely affect the Company’s reputation and business.
• The Company is subject to claims and litigation pertaining to fiduciary responsibility.
• Severe weather, natural disasters, acts of war or terrorism, and other external events could significantly impact the Company’s business.
• While the Company's common stock is currently traded on the Nasdaq Global Select Market, it has less liquidity than stocks for larger companies quoted on a national securities exchange.
• Economic and other conditions may cause volatility in the price of the Company’s common stock.
• Future issuances of the Company's common stock could adversely affect the market price of the common stock and could be dilutive.
• The primary source of the Company's income from which it pays cash dividends is the receipt of dividends from its subsidiary bank.
• The Company's governing documents and Virginia law contain anti-takeover provisions that could negatively impact its shareholders.