SOURCE: National Bankshares, Inc.

National Bankshares, Inc.

April 24, 2014 16:30 ET

National Bankshares, Inc. Reports First Quarter Earnings

BLACKSBURG, VA--(Marketwired - Apr 24, 2014) -  Today, National Bankshares, Inc. (NASDAQ: NKSH) announced results for the first quarter of 2014. Net income was $4.40 million for the quarter ended March 31, 2014 compared to $4.22 million at March 31, 2013. Basic net income per share was $0.63. The return on average assets for the first quarter was 1.61% and the return on average equity was 11.92% compared to 1.56% and 11.26%, respectively, for the first quarter of 2013. At March 31, 2014, the Company had total assets of $1.12 billion, an increase of 2.24% when compared to the end of the first quarter of 2013.

National Bankshares' Chairman, President & CEO James G. Rakes commented, "We are pleased to report our strong first quarter results. While our results reflect some of the headwinds usually faced during the first quarter, our increase in total loans provided a positive beginning to 2014. We are focused on improving the fundamental performance of the National Bank by increasing market share, providing meaningful solutions to our customers and creating value for our shareholders." Mr. Rakes went on to say, "We strongly feel that our commitment to customer service and to the communities in our market area reinforces National Bank as the local choice in banking."

National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of 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 25 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 data)   March 31, 2014     March 31, 2013     December 31, 2013  
Assets                        
Cash and due from banks   $ 14,723     $ 10,674     $ 13,283  
Interest-bearing deposits     108,841       107,176       97,376  
Federal funds sold     ---       ---       ---  
Securities available for sale     190,401       190,215       182,402  
Securities held to maturity     165,398       166,947       163,983  
Restricted Stock     1,089       1,414       1,414  
      Total securities     356,888       358,576       347,799  
Mortgage loans held for sale     ---       313       1,276  
Loans:                        
  Loans, net of unearned income and deferred fees     589,048       574,958       595,690  
  Less: allowance for loan losses     (8,297 )     (8,291 )     (8,227 )
      Loans, net     580,751       566,667       587,463  
Bank premises and equipment, net     9,428       10,237       9,951  
Accrued interest receivable     5,893       5,878       5,949  
Other real estate owned     4,901       1,094       4,712  
Intangible assets     8,029       9,106       8,299  
Bank-owned life insurance     21,335       20,690       21,181  
Other assets     12,321       8,092       13,341  
      Total Assets   $ 1,123,110     $ 1,098,503     $ 1,110,630  
                         
Liabilities and Stockholders' Equity                        
Noninterest-bearing deposits   $ 145,963     $ 144,815     $ 142,645  
Interest-bearing demand deposits     503,596       449,992       501,541  
Savings deposits     77,467       72,420       74,141  
Time deposits     237,060       269,892       241,709  
      Total deposits     964,086       937,119       960,036  
Other borrowed funds     ---       ---       ---  
Accrued interest payable     78       146       92  
Other liabilities     5,529       7,878       4,610  
      Total Liabilities     969,693       945,143       964,738  
                         
Stockholders' Equity                        
Preferred stock of no par value. Authorized 5,000,000 shares; none issued and outstanding     ---       ---       ---  
Common stock of $1.25 par value. Authorized 10,000,000 shares; issued and outstanding 6,947,974 shares at March 31, 2014, March 31, 2013 and December 31, 2013     8,685       8,685       8,685  
Retained earnings     158,575       148,378       154,171  
Accumulated other comprehensive loss, net     (13,843 )     (3,703 )     (16,964 )
    Total Stockholders' Equity     153,417       153,360       145,892  
      Total Liabilities and Stockholders' Equity   $ 1,123,110     $ 1,098,503     $ 1,110,630  
                         
                         
                         
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
 
    Three Months Ended
($ in thousands, except for share data)   March 31, 2014   March 31, 2013
Interest Income            
Interest and fees on loans   $ 7,935   $ 8,319
Interest on federal funds     ---     ---
Interest on interest-bearing deposits     65     58
Interest on securities-taxable     1,653     1,512
Interest on securities-nontaxable     1,500     1,648
  Total interest income     11,153     11,537
Interest Expense            
Interest on time deposits of $100 or more     153     268
Interest on other deposits     1,162     1,411
Interest on borrowed funds     ---     ---
  Total interest expense     1,315     1,679
  Net interest income     9,838     9,858
Provision for loan losses     103     671
  Net interest income after provision for loan losses     9,735     9,187
Noninterest Income            
Service charges on deposit accounts     592     588
Other service charges and fees     65     60
Credit card fees     797     740
Trust income     293     289
Bank-owned life insurance     175     188
Other income     277     281
Realized securities gains net     1     9
  Total noninterest income     2,200     2,155
Noninterest Expense            
Salaries and employee benefits     2,999     2,940
Occupancy and furniture and fixtures     440     432
Data processing and ATM     363     393
FDIC assessment     147     136
Credit card processing     549     552
Intangibles and goodwill amortization     269     271
Net costs of other real estate owned     77     75
Franchise taxes     279     258
Other operating expenses     1,059     907
  Total noninterest expense     6,182     5,964
Income before income tax expense     5,753     5,378
Income tax expense     1,349     1,162
  Net Income   $ 4,404   $ 4,216
Basic net income per share   $ 0.63   $ 0.61
Fully diluted net income per share   $ 0.63   $ 0.60
Weighted average outstanding number of common shares            
  Basic     6,947,974     6,947,974
  Diluted     6,963,865     6,969,073
Dividends declared per share     ---     ---
Dividend payout ratio     ---     ---
Book value per share     22.08     22.07
             
             
             
National Bankshares, Inc. and Subsidiaries  
Consolidated Statements of Comprehensive Income  
(Unaudited)  
   
    Three Months Ended  
($ in thousands)   March 31, 2014   March 31, 2013  
Net Income   $ 4,404   $ 4,216  
               
Other Comprehensive Income, Net of Tax              
Unrealized holding gains (losses) on available for sale securities net of deferred taxes of $1,681 and ($516)     3,121     (959 )
Reclassification adjustment, net of income taxes of $0 and ($3)     ----     (6 )
Other comprehensive income (loss), net of tax of $1,681 and ($519)   $ 3,121   $ (965 )
Total Comprehensive Income   $ 7,525   $ 3,251  
               
               
               
National Bankshares, Inc. and Subsidiaries  
Key Ratios and Other Data  
(Unaudited)  
   
    Three Months Ended  
($ in thousands)   March 31, 2014     March 31, 2013  
Average Balances                
Cash and due from banks   $ 11,937     $ 12,023  
Interest-bearing deposits     102,240       99,216  
Securities available for sale and restricted stock     186,666       189,707  
Securities held to maturity     162,782       162,264  
Mortgage loans held for sale     382       1,507  
Gross loans     592,338       583,337  
Loans, net     583,189       574,030  
Intangible assets     8,185       9,262  
Total assets     1,108,867       1,092,880  
Total deposits     953,703       933,185  
Other borrowings     ---       ---  
Stockholders' equity     149,877       151,852  
Interest-earning assets     1,062,323       1,032,736  
Interest-bearing liabilities     812,690       795,321  
                 
Financial Ratios                
Return on average assets     1.61 %     1.56 %
Return on average equity     11.92 %     11.26 %
Net interest margin     4.12 %     4.27 %
Net interest income - fully taxable equivalent   $ 10,799     $ 10,879  
Efficiency ratio     47.56 %     45.76 %
Average equity to average assets     13.52 %     13.89 %
                 
Allowance for Loan Losses                
Beginning balance   $ 8,227     $ 8,349  
Provision for losses     103       671  
Charge-offs     (191 )     (754 )
Recoveries     158       25  
Ending balance   $ 8,297     $ 8,291  
                 
                 
                 
National Bankshares, Inc. and Subsidiaries  
Asset Quality Data  
(Unaudited)  
   
($ in thousands)            
Nonperforming Assets   March 31, 2014     March 31, 2013  
Nonaccrual loans   $ 5,071     $ 10,734  
Nonaccrual restructured loans     1,007       1,691  
Total nonperforming loans     6,078       12,425  
Other real estate owned     4,901       1,094  
Total nonperforming assets   $ 10,979     $ 13,519  
Accruing restructured loans   $ 6,145     $ 5,732  
Loans 90 days or more past due   $ 163     $ 568  
                 
Asset Quality Ratios                
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned     1.85 %     2.35 %
Allowance for loan losses to total loans     1.41 %     1.44 %
Allowance for loan losses to nonperforming loans     136.51 %     66.73 %
Loans past due 90 days or more and still accruing to loans net of unearned income and deferred fees     0.03 %     0.10 %

Contact Information

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

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