SOURCE: National Bankshares, Inc.

National Bankshares, Inc.

April 12, 2012 16:30 ET

National Bankshares, Inc. Reports Higher First Quarter Income

BLACKSBURG, VA--(Marketwire - Apr 12, 2012) - Today, National Bankshares, Inc. (NASDAQ: NKSH) announced net income of almost $4.43 million for the quarter ended March 31, 2012, or 10.06%, above the total reported for the first quarter of 2011. Basic net income per share was $0.64, which compares with $0.58 for the first three months last year. The return on average assets for the first quarter was 1.67%, and it was 1.60% for the three months ended March 31, 2011. The return on average equity was 12.40% and 12.44% for the same two periods. Total loans at quarter-end, at $585.49 million, were down slightly from the total of $588.88 million at the end of March last year. Noninterest income was $2.15 million, an 11.27% increase over the $1.93 million at March 31, 2011. At March 31, 2012, the Company had total assets of $1.08 billion, an increase of 5.58% over the end of the first quarter of 2011 and up slightly from total assets of nearly $1.07 billion at year-end.

National Bankshares' Chairman, President & CEO James G. Rakes commented, "The increase in our first quarter earnings reflects continued economic recovery for our customers. We see encouraging indications of loan demand, but that demand remains slower than we would like. We also see steady growth in most noninterest income categories, and we have been able to contain noninterest expense."

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 Sheet
(Unaudited)
($ in thousands, except for per share data) March 31,
2012
March 31,
2011
December 31,
2011
Assets
Cash and due from banks $ 12,241 $ 11,800 $ 11,897
Interest-bearing deposits 101,301 55,674 98,355
Federal funds sold --- --- ---
Securities available for sale 198,346 190,844 174,918
Securities held to maturity 139,367 132,669 143,995
Total securities 337,713 323,513 318,913
Mortgage loans held for sale 1,371 --- 2,623
Loans:
Loans, net of unearned income and deferred fees 584,564 587,902 588,470
Less: allowance for loan losses (8,063 ) (8,245 ) (8,068 )
Loans, net 576,501 579,657 580,402
Bank premises and equipment, net 10,563 10,366 10,393
Accrued interest receivable 6,175 6,514 6,304
Other real estate owned 940 2,222 1,489
Intangible assets 10,188 11,272 10,460
Bank-owned life insurance 19,991 17,415 19,812
Other assets 6,858 8,125 6,454
Total assets $ 1,083,842 $ 1,026,558 $ 1,067,102
Liabilities and Stockholders' Equity
Noninterest-bearing deposits $ 145,070 $ 136,769 $ 142,163
Interest-bearing demand deposits 415,352 372,470 404,801
Savings deposits 65,322 58,273 61,298
Time deposits 306,048 318,383 311,071
Total deposits 931,792 885,895 919,333
Other borrowed funds --- --- ---
Accrued interest payable 191 260 206
Other liabilities 7,067 6,738 6,264
Total liabilities 939,050 892,893 925,803
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 6,939,974 shares at March 31, 2012, 6,935,974 at March 31, 2011 and 6,939,974 at December 31, 2011 8,675 8,670 8,675
Retained earnings 138,374 127,218 133,945
Accumulated other comprehensive gain, net (2,257 ) (2,223 ) (1,321 )
Total stockholders' equity 144,792 133,665 141,299
Total liabilities and stockholders' equity $ 1,083,842 $ 1,026,558 $ 1,067,102
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended
($ in thousands, except for per share data) March 31, 2012 March 31, 2011
Interest Income
Interest and fees on loans $ 8,878 $ 9,095
Interest on federal funds --- ---
Interest on interest-bearing deposits 71 32
Interest on securities - taxable 1,589 1,662
Interest on securities - nontaxable 1,576 1,676
Total interest income 12,114 12,465
Interest Expense
Interest on time deposits of $100,000 or more 425 561
Interest on other deposits 1,692 1,818
Interest on borrowed funds --- ---
Total interest expense 2,117 2,379
Net interest income 9,997 10,086
Provision for loan losses 672 800
Net interest income after provision for loan losses 9,325 9,286
Noninterest Income
Service charges on deposit accounts 631 612
Other service charges and fees 49 58
Credit card fees 794 733
Trust income 326 246
Bank-owned life insurance 200 184
Other income 99 91
Realized securities gains, net 53 10
Total noninterest income 2,152 1,934
Noninterest Expense
Salaries and employee benefits 2,956 2,904
Occupancy and furniture and fixtures 397 423
Data processing and ATM 392 444
FDIC assessment 109 346
Credit card processing 572 586
Intangibles and goodwill amortization 271 271
Net costs of other real estate owned 48 134
Franchise taxes 162 242
Other operating expenses 804 734
Total noninterest expense 5,711 6,084
Income before income tax expense 5,766 5,136
Income tax expense 1,337 1,112
Net income $ 4,429 $ 4,024
Basic net income per share $ 0.64 $ 0.58
Fully diluted net income per share $ 0.64 $ 0.58
Weighted average outstanding number of common shares
Basic 6,939,974 6,933,780
Diluted 6,954,637 6,957,450
Dividends declared per share $ --- $ ---
Dividend payout ratio --- ---
Book value per share $ 20.86 $ 19.27
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
($ in thousands, except for per share data) March 31,
2012
March 31,
2011
Net income $ 4,429 $ 4,024
Other Comprehensive Income, Net of Tax
Unrealized holding gains (losses) on available for sale securities net of deferred taxes of $(489) and $228 (907 ) 423
Reclassification adjustment, net of income taxes of $(15) and $(3) (29 ) (5 )
Other comprehensive income (loss), net of tax of $(504) and $225 $ (936 ) $ 418
Total comprehensive income $ 3,493 $ 4,442
Key Ratios and Other Data
(Unaudited)
Three Months Ended
Average Balances March 31,
2012
March 31,
2011
Cash and due from banks $ 11,865 $ 11,420
Interest-bearing deposits 110,901 54,089
Securities available for sale 175,232 187,510
Securities held to maturity 140,743 132,322
Mortgage loans held for sale 1,213 696
Gross loans 585,080 585,444
Loans, net 575,583 576,614
Intangible assets 10,344 11,428
Total assets 1,068,848 1,016,979
Total deposits 918,387 877,294
Other borrowings --- ---
Stockholders' equity 143,603 131,191
Interest-earning assets 1,012,224 959,550
Interest-bearing liabilities 780,804 747,612
Financial Ratios
Return on average assets 1.67 % 1.60 %
Return on average equity 12.40 % 12.44 %
Net interest margin 4.36 % 4.68 %
Net interest income - fully taxable equivalent $ 10,940 $ 11,066
Efficiency ratio 43.63 % 46.80 %
Average equity to average assets 13.44 % 12.90 %
Allowance for Loan Losses
Beginning balance $ 8,068 $ 7,664
Provision for losses 672 800
Charge-offs (700 ) (243 )
Recoveries 23 24
Ending balance $ 8,063 $ 8,245
Asset Quality Data
(Unaudited)
Nonperforming Assets March 31,
2012
March 31,
2011
Nonaccrual loans $ 1,789 $ 2,339
Nonaccrual restructured loans 3,539 5,314
Total nonperforming loans 5,328 7,653
Other real estate owned 940 2,222
Total nonperforming assets $ 6,268 $ 9,875
Accruing restructured loans $ 3,742 $ 884
Loans 90 days or more past due $ 209 $ 1,078
Asset Quality Ratios
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned 1.07 % 1.67 %
Allowance for loan losses to total loans 1.38 % 1.40 %
Allowance for loan losses to nonperforming loans 151.33 % 107.74 %
Loans past due 90 days or more to loans net of unearned income and deferred fees 0.04 % 0.18 %

Contact Information

  • CONTACTS:
    James G. Rakes
    Chairman, President & CEO
    (540) 951-6236
    Email Contact

    David K. Skeens
    Treasurer & CFO
    (540) 951-6347
    Email Contact