SOURCE: National Bankshares, Inc.

National Bankshares, Inc.

April 23, 2015 16:30 ET

National Bankshares, Inc. Reports First Quarter Earnings

BLACKSBURG, VA--(Marketwired - Apr 23, 2015) - National Bankshares, Inc. (NASDAQ: NKSH) today announced its results of operations for the first quarter of 2015. The Company reported net income of almost $3.97 million for the quarter ended March 31, 2015 compared to $4.40 million at March 31, 2014. Basic earnings per share were $0.57 at March 31, 2015 compared to $0.63 for the same period in 2014. For the first quarter, the return on average assets was 1.40% and the return on average equity was 9.50% compared to 1.61% and 11.92%, respectively, for the first quarter of 2014. At March 31, 2015, the Company had total assets of $1.16 billion which was an increase of 3.72% when compared to $1.12 billion at the end of the first quarter of 2014.

Commenting on the Company's financial results, National Bankshares Chairman, President & CEO James G. Rakes said, "We experienced write downs of $394 thousand on other real estate owned during the first quarter that contributed to the lower net income. Among other expenses, we had increased employee benefit expenses, mostly the result of pension related costs. Our loans, however, showed positive growth of over $33 million, or 5.71%, compared to first quarter of 2014. We still face challenges, such as the low interest rate environment which affect our margins, but we continue to be optimistic and focused on opportunities to grow our business and deliver the promise of successful community banking to our customers, employees, and stockholders."

National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of The National Bank of Blacksburg, which does business as National Bank, and of National Bankshares Financial Services, Inc. National Bank is a community bank operating from 26 offices throughout Southwest Virginia. National Bankshares Financial Services, Inc. is an investment and insurance subsidiary in the same trade area. The Company's stock is traded on the NASDAQ Capital Market under the symbol "NKSH." Additional information is available at www.nationalbankshares.com.

Forward-Looking Statements
Certain statements in this press release may be "forward-looking statements." Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results that are not statements of historical fact and that involve significant risks and uncertainties. Although the Company believes that its expectations with regard to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual Company results will not differ materially from any future results implied by the forward-looking statements. Actual results may be materially different from past or anticipated results because of many factors, some of which may include changes in economic conditions, the interest rate environment, legislative and regulatory requirements, new products, competition, changes in the stock and bond markets and technology. The Company does not update any forward-looking statements that it may make.

   
National Bankshares, Inc. and Subsidiaries  
Consolidated Balance Sheets  
(Unaudited)  
   
($ in thousands, except for share and per share data)   March 31, 2015     March 31, 2014     December 31, 2014  
Assets                  
Cash and due from banks   $ 12,452     $ 14,723     $ 12,894  
Interest-bearing deposits     87,676       109,181       102,548  
Federal funds sold     ---       ---       ---  
Securities available for sale, at fair value     238,496       190,061       222,844  
Securities held to maturity     156,135       165,398       161,452  
Restricted stock     1,129       1,089       1,089  
  Total securities     395,760       356,548       385,385  
Mortgage loans held for sale     1,091       ---       291  
Loans:                        
  Loans, net of unearned income and deferred fees     622,171       589,048       605,466  
  Less: allowance for loan losses     (8,257 )     (8,297 )     (8,263 )
    Loans, net     613,914       580,751       597,203  
Premises and equipment, net     8,998       9,428       9,131  
Accrued interest receivable     5,506       5,893       5,748  
Other real estate owned     4,573       4,901       4,744  
Intangible assets and goodwill     6,954       8,029       7,223  
Bank-owned life insurance     21,946       21,335       21,797  
Other assets     5,975       12,321       7,767  
    Total assets   $ 1,164,845     $ 1,123,110     $ 1,154,731  
                         
Liabilities and Stockholders' Equity                        
Noninterest-bearing deposits   $ 160,217     $ 145,963     $ 150,744  
Interest-bearing demand deposits     526,388       503,596       533,641  
Savings deposits     85,615       77,467       81,297  
Time deposits     212,737       237,060       216,746  
    Total deposits     984,957       964,086       982,428  
Other borrowed funds     ---       ---       ---  
Accrued interest payable     70       78       68  
Other liabilities     7,096       5,529       5,932  
    Total liabilities     992,123       969,693       988,428  
                         
Stockholders' Equity                        
Preferred stock, no par value, 5,000,000 shares authorized; none issued and outstanding     ---       ---       ---  
Common stock of $1.25 par value. Authorized 10,000,000 shares; issued and outstanding, 6,950,474 shares at March 31, 2015 and December 31, 2014 and 6,947,974 shares at March 31, 2014.     8,688       8,685       8,688  
Retained earnings     167,253       158,575       163,287  
Accumulated other comprehensive loss, net     (3,219 )     (13,843 )     (5,672 )
    Total stockholders' equity     172,722       153,417       166,303  
  Total liabilities and stockholders' equity   $ 1,164,845     $ 1,123,110     $ 1,154,731  
                           
                           
 
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
 
    Three Months Ending
($ in thousands, except for share and per share data)   March 31, 2015     March 31, 2014
Interest Income          
Interest and fees on loans   $ 7,649     $ 7,935
Interest on federal funds     ---       ---
Interest on interest-bearing deposits     64       65
Interest on securities - taxable     1,734       1,653
Interest on securities - nontaxable     1,386       1,500
  Total interest income     10,833       11,153
Interest Expense              
Interest on time deposits of $100 or more     128       153
Interest on other deposits     959       1,162
Interest on borrowed funds     ---       ---
  Total interest expense     1,087       1,315
  Net interest income     9,746       9,838
Provision for loan losses     201       103
  Net income after provision for loan losses     9,545       9,735
Noninterest Income              
Service charges on deposit accounts     535       592
Other service charges and fees     71       65
Credit card fees     895       797
Trust Income     289       293
Bank-owned life insurance     170       175
Other income     282       277
Realized securities gains (losses), net     (2 )     1
  Total noninterest income     2,240       2,200
Noninterest Expense              
Salaries and employee benefits     3,072       2,999
Occupancy and furniture and fixtures     452       440
Data processing and ATM     434       363
FDIC assessment     135       147
Credit card processing     610       549
Intangibles and goodwill amortization     269       269
Net cost of other real estate owned     471       77
Franchise taxes     308       279
Other operating expenses     957       1,059
  Total noninterest expense     6,708       6,182
Income before income tax expense     5,077       5,753
Income tax expense     1,111       1,349
  Net income   $ 3,966     $ 4,404
Basic net income per share   $ 0.57     $ 0.63
Fully diluted net income per share   $ 0.57     $ 0.63
Weighted average number of common shares outstanding              
  Basic     6,950,474       6,947,974
  Diluted     6,955,023       6,963,865
Dividends declared per share   $ ---     $ ---
Dividend payout ratio     ---       ---
Book value per share   $ 24.85     $ 22.08
               
               
               
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
 
    Three Months Ended
($ in thousands)   March 31, 2015   March 31, 2014
Net income   $ 3,966   $ 4,404
             
Other Comprehensive Income, net of tax            
Unrealized holding gains on available for sale securities net of deferred tax of $1,320 in 2015 and $1,681 in 2014     2,452     3,121
Reclassification adjustment, net of income tax (benefit) of $1 in 2015 and $0 in 2014     1     ---
Other comprehensive income, net of tax of $1,321 and $1,681 for the periods ended March 31, 2015 and 2014, respectively   $ 2,453   $ 3,121
Total Comprehensive Income   $ 6,419   $ 7,525
             
             
             
National Bankshares, Inc. and Subsidiaries  
Key Ratios and Other Data  
(Unaudited)  
   
    Three Months Ended  
$ in thousands   March 31, 2015     March 31, 2014  
Average Balances            
Cash and due from banks   $ 11,364     $ 11,937  
Interest-bearing deposits     104,104       103,024  
Securities available for sale     222,161       184,497  
Securities held to maturity     159,376       162,782  
Restricted stock     1,095       1,385  
Mortgage loans held for sale     460       382  
Gross Loans     605,137       592,338  
Loans, net     604,288       583,189  
Intangible assets     7,109       8,185  
Total assets     1,149,578       1,108,867  
Total deposits     973,738       953,703  
Other borrowings     ---       ---  
Stockholders' equity     169,289       149,877  
Interest-earning assets     1,092,481       1,062,323  
Interest-bearing liabilities     821,308       812,690  
                 
Financial ratios                
Return on average assets     1.40 %     1.61 %
Return on average equity     9.50 %     11.92 %
Net interest margin     3.95 %     4.12 %
Net interest income-fully taxable equivalent   $ 10,648     $ 10,799  
Efficiency ratio     52.05 %     47.56 %
Average equity to average assets     14.73 %     13.52 %
                 
Allowance for loan losses                
Beginning balance   $ 8,263     $ 8,227  
Provision for losses     201       103  
Charge-offs     (260 )     (191 )
Recoveries     53       158  
Ending balance   $ 8,257     $ 8,297  
                 
                 
                 
National Bankshares, Inc. and Subsidiaries  
Asset Quality Data  
(Unaudited)  
   
$ in thousands            
Nonperforming assets   March 31, 2015     March 31, 2014  
Nonaccrual loans   $ 3,102     $ 5,071  
Nonaccrual restructured loans     6,123       1,007  
Total nonperforming loans     9,225       6,078  
Other real estate owned     4,573       4,901  
Total nonperforming assets   $ 13,798     $ 10,979  
Accruing restructured loans     5,992       6,145  
Loans 90 days or more past due   $ 272     $ 163  
                 
Asset quality ratios                
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned     2.20 %     1.85 %
Allowance for loans losses to total loans     1.33 %     1.41 %
Allowance for loan losses to nonperforming loans     89.51 %     136.51 %
Loans past due 90 days or more to loans net of unearned income and deferred fees     0.04 %     0.03 %
                 

Contact Information

  • CONTACTS:

    JAMES G. RAKES
    CHAIRMAN, PRESIDENT & CEO
    (540) 951-6236
    Email Contact

    DAVID K. SKEENS
    TREASURER & CFO
    (540) 951-6347
    Email Contact