Exhibit 99.3

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

The following unaudited pro forma combined financial information is designed to show how the merger of American National Bankshares Inc. (“American”) and MidCarolina Financial Corporation (“MidCarolina”) might have affected historical financial statements if the merger had been completed at an earlier time and was prepared based on the historical financial results reported by American and disclosed by MidCarolina in other public filings.

The unaudited pro forma balance sheet data assumes that the merger took place on March 31, 2011 and combines American’s consolidated balance sheet as of March 31, 2011 with MidCarolina’s consolidated balance sheet as of March 31, 2011. The unaudited pro forma statements of income for the three months ended March 31, 2011 and the year ended December 31, 2010 give effect to the merger as if it occurred at the beginning of each applicable period. The unaudited pro forma financial statements give effect to the proposed merger under the acquisition method of accounting.

The unaudited pro forma combined financial information, while helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings or opportunities to earn additional revenue and, accordingly, does not attempt to predict or suggest future results. It also is not necessarily indicative of the financial condition or results of operations of future periods or the financial condition or results of operations that actually would have been realized had the companies been combined during these periods.

The unaudited pro forma combined consolidated financial statements are based on, and should be read together with, the historical consolidated financial statements and related notes of American contained in its Annual Report on Form 10-K for the year ended December 31, 2010 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, and of MidCarolina, contained in its Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011.

In December 2007, the Financial Accounting Standards Board issued Statement of Financial Standards (“SFAS”) No. 141(R) (ASC Topic 805) (“ASC Topic 805”), which replaced SFAS 141, “Business Combinations,” for periods beginning on or after December 15, 2008, but retains the fundamental requirements in SFAS 141, that the acquisition method of accounting (which SFAS 141 called the purchase method) be used for all business combinations and for an acquirer to be identified for each business combination.

AMERICAN NATIONAL BANKSHARES INC. AND MIDCAROLINA FINANCIAL CORP.

Unaudited Pro Forma Condensed Combined Consolidated Balance Sheet

March 31, 2011

(dollars in thousands, except per share data)

The accompanying notes are an integral part of the unaudited pro forma condensed combined consolidated financial information. Certain reclassifications have been made to MidCarolina’s balance sheet to conform with American’s presentation.

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Notes to Unaudited Pro Forma Condensed Combined Consolidated Balance Sheet at March 31, 2011

Under acquisition accounting MidCarolina’s assets and liabilities and any identifiable intangible assets are required to be stated at their estimated fair values. American has engaged a competent third party valuation specialist to assist in the valuation of the major financial assets and liabilities of the acquired bank. Pro form adjustments reflected herein present preliminary estimates based on initial work by the valuation specialist and American and is preliminary and subject to adjustment and may vary from the actual purchase price allocation that will be recorded based on the actual balance sheet at the acquisition date.

(1) Adjustment to record estimated one-time merger related expenses totaling $5.3 million ($4.0 million net of taxes at a 35% tax rate.)

(2) Management has not finalized the amounts of those loans with evidence of deterioration of credit quality since origination and where it is probable that the collection of all contractually required payments receivable would not occur and thus within the scope of ASC 310-30 (formerly SOP 03-3). However, initial estimates are $88.3 million of unpaid principal balance will apply. The contractually required payments receivable related to these loans is approximately $93.3 million with expected cash flow to be collected of $80.3 million. The estimated fair value of such loans is $71.7 million, with a nonaccretable difference of $12.9 million and accretable yield of $8.6 million. For purposes of these pro formas, management is recognizing income on the related interest mark of $3.5 million over five years, the expected life of the loans, using the sum of the years digits method as an approximation of the level yield method.

For the remaining portfolio of approximately $298.6 million that is not within the scope of ASC 310-30, the Company will accrete the estimated fair value adjustment of $18.6 million over the estimated life of the loans of five years using the sum of the years digits method as an approximation of the level yield method, based upon the guidance for accounting for loan origination fees and costs under ASC 310-20 (formerly SFAS 91).

(3) Elimination of MidCarolina’s allowance for loan losses.

(4) Adjustment to premises and equipment to reflect increased value of real estate as provided by a preliminary valuation.

(5) Adjustment to reflect fair value of other real estate as provided by a preliminary valuation.

(6) Estimation of fair value of core deposit intangible (“CDI”). The estimated CDI represents the estimated future economic benefit resulting from the acquired customer balances and relationships. This value was estimated based on similar transactions while the final value will be determined based upon an independent appraisal at the date of the acquisition. For pro forma purposes, we are amortizing the CDI using the sum-of-the-years-digits method, as a proxy for accelerated amortization, and an estimated life of seven years.

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(7) Estimated amount of goodwill to be recorded in the acquisition of MidCarolina, less amounts allocated to the fair value of tangible and specifically identified intangible assets acquired. The purchase price and purchase price allocation are as follows:

(8) Estimated deferred tax asset arising from the credit quality fair value adjustment on loans and other fair value adjustments of assets and liabilities, less deferred tax liabilities arising from the core deposit intangible and other fair value adjustments of assets and liabilities, all at a 35% tax rate.

(9) Fair value adjustment on time deposits at current market rates for similar products. This adjustment will be accreted into income over the estimated lives of the time deposits. Due to the very short estimated lives of these deposits, American expects that the adjustment accretion will reduce interest expense over the first year of the merger. This amount will be adjusted to actual based on a final valuation as of the merger date.

(10) Fair value adjustment of borrowings at current interest rates for similar borrowings. This adjustment amortization will increase interest expense over the estimated remaining five year life of the borrowings. Estimated amortization was determined using the straight line method, which should approximate the level yield method, as these borrowings are due at maturity. We are in the process of conducting a merger date independent valuation of these amounts.

(11) Fair value adjustment of borrowings at current interest rates for similar borrowings. This adjustment amortization will increase interest expense over the estimated remaining 20 year life of the borrowings. Estimated amortization was determined using the straight line method, which should approximate the level yield method, as their borrowings are due at maturity. We are in the process of conducting a merger date independent valuation of these amounts.

(12) Elimination of MidCarolina stockholders’ equity as part of the acquisition accounting adjustments representing the conversion of all MidCarolina common shares into American common shares and the conversion of MidCarolina preferred into American preferred. MidCarolina common shares convert at a ratio of 0.33 American shares for each share of MidCarolina. MidCarolina preferred shares will be converted with the same terms and conditions as they had originally.

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AMERICAN NATIONAL BANKSHARES INC. AND MIDCAROLINA FINANCIAL CORP.

Unaudited Pro Forma Condensed Combined Consolidated Statements of Income

For the Quarter Ended March 31, 2011

(dollars in thousands, except per share data)

The accompanying notes are an integral part of the unaudited pro forma condensed combined consolidated financial information. Certain reclassifications have been made to MidCarolina’s income statement to conform with American’s presentation.

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AMERICAN NATIONAL BANKSHARES INC. AND MIDCAROLINA FINANCIAL CORP.

Unaudited Pro Forma Condensed Combined Consolidated Statements of Income

For the Year Ended December 31, 2010

(dollars in thousands, except per share data)

The accompanying notes are an integral part of the unaudited pro forma condensed combined consolidated financial information. Certain reclassifications have been made to MidCarolina’s income statement to conform with American’s presentation.

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Notes to Unaudited Pro Forma Condensed Combined Consolidated Statements of Operations for the three months ended March 31, 2011 and the year ended December 31, 2010

(1) Reflects estimated accretion of the fair value adjustments to loans over the expected life of five years, using the sum of years digits method as an approximation of the level yield method.

(2) All investments were identified as available for sale and recorded at fair value. The available for sale discount of $1.6 million accreted into income over an estimated life of seven years, computed using the sum of years digits method as an approximation of the level yield method.

(3) Reflects estimated accretion of the fair value adjustments to time deposits over their expected life of one year.

(4) Reflects the estimated amortization of the fair value adjustments to FHLB borrowings over the expected life of five years and the fair value adjustment of trust preferred notes over the expected life of 20 years. All this debt is payable at maturity and amortization is computed on a straight line basis, as an approximation of the level yield method.

(5) Amount represents estimated additional depreciation from fair value adjustment to real estate assets, computed over an estimated 20 year life on a straight line basis.

(6) Amount represents CDI amortization computed using the sum of years digits method as a proxy for accelerated amortization, over an estimated life of seven years.

(7) Adjustment to remove merger related expenses from pro forma income statement.

(8) The effective tax rate for American is less than 28%. For purposes of this pro forma we are estimating the combined effective tax rate at 30%.

(9) The pro forma number of shares issued by American was computed by multiplying 4.9 million MidCarolina shares outstanding by the fixed exchange ratio of 0.33.

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