SOURCE: National Bankshares, Inc.

National Bankshares, Inc.

October 17, 2013 16:30 ET

National Bankshares, Inc. Reports Income for the Nine Months Ended September 30, 2013

BLACKSBURG, VA--(Marketwired - Oct 17, 2013) -  Today, National Bankshares, Inc. (NASDAQ: NKSH) announced net income of approximately $13.17 million through September 30, 2013, up $106 thousand, or 0.81%, above the total reported for the first nine months of 2012. Basic earnings per share were $1.90, which compares with $1.88 reported at September 30, 2012. The return on average assets for the nine months ended September 30, 2013 was 1.61% compared to 1.62% in 2012. The return on average equity was 11.70% and 12.14% for the same two periods. At September 30, 2013, the Company had total assets of $1.08 billion.

National Bankshares' Chairman, President & CEO James G. Rakes commented, "We continue to focus on bringing successful results to our stockholders by growing our bank with high quality loans, sustaining asset quality and risk management, and providing our customers the best community banking services and products available. In addition, technology and process improvement initiatives are underway to further enhance our customer experience."

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)   September 30, 2013     September 30, 2012     December 31, 2012  
Assets                        
Cash and due from banks   $ 13,806     $ 12,445     $ 14,783  
Interest-bearing deposits     62,776       67,394       96,597  
Federal funds sold     ---       ---       ---  
Securities available for sale     193,639       198,079       191,504  
Securities held to maturity     164,752       161,728       160,539  
    Total securities     358,391       359,807       352,043  
Mortgage loans held for sale     617       3,015       2,796  
Loans:                        
  Loans, net of unearned income and deferred fees     590,664       591,461       592,162  
  Less: allowance for loan losses     (8,090 )     (8,254 )     (8,349 )
    Loans, net     582,574       583,207       583,813  
Bank premises and equipment, net     10,025       10,491       10,401  
Accrued interest receivable     6,044       6,291       6,247  
Other real estate owned     973       1,894       1,435  
Intangible assets     8,568       9,648       9,377  
Bank-owned life insurance     21,020       20,346       20,523  
Other assets     12,609       6,434       6,346  
    Total assets   $ 1,077,403     $ 1,080,972     $ 1,104,361  
                         
Liabilities and Stockholders' Equity                        
Noninterest-bearing deposits   $ 147,928     $ 147,346     $ 144,252  
Interest-bearing demand deposits     453,044       418,482       455,713  
Savings deposits     73,952       66,576       69,063  
Time deposits     248,574       291,979       277,738  
    Total deposits     923,498       924,383       946,766  
Other borrowed funds     ---       ---       ---  
Accrued interest payable     97       178       139  
Other liabilities     7,514       6,013       7,347  
    Total liabilities     931,109       930,574       954,252  
                         
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 September 30, 2013, 6,943,974 at September 30, 2012 and 6,947,974 at December 31,2012     8,685       8,680       8,685  
Retained earnings     153,578       143,383       144,162  
Accumulated other comprehensive loss, net     (15,969 )     (1,665 )     (2,738 )
    Total stockholders' equity     146,294       150,398       150,109  
  Total liabilities and stockholders' equity   $ 1,077,403     $ 1,080,972     $ 1,104,361  
 
 
 
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
 
    Three Months Ended     Nine Months Ended
    September 30, 2013     September 30, 2012     September 30, 2013   September 30, 2012
($ in thousands, except for share data)                            
Interest Income                            
Interest and fees on loans   $ 8,196     $ 8,923     $ 24,707   $ 26,554
Interest on federal funds     ---       ---       ---     ---
Interest on interest-bearing deposits     45       60       161     187
Interest on securities-taxable     1,743       1,620       5,007     4,991
Interest on securities-nontaxable     1,581       1,634       4,847     4,801
  Total interest income     11,565       12,237       34,722     36,533
Interest Expense                            
Interest on time deposits of $100 or more     196       355       694     1,171
Interest on other deposits     1,192       1,581       3,921     4,900
Interest on borrowed funds     ---       ---       ---     ---
  Total interest expense     1,388       1,936       4,615     6,071
  Net interest income     10,177       10,301       30,107     30,462
Provision for loan losses     303       778       1,329     2,554
  Net interest income after provision for loan losses     9,874       9,523       28,778     27,908
Noninterest Income                            
Service charges on deposit accounts     709       674       1,922     1,956
Other service charges and fees     37       40       139     130
Credit card fees     834       807       2,427     2,441
Trust income     267       271       867     1,037
Bank-owned life insurance     182       205       546     605
Other income     162       130       502     341
Realized securities gains (losses), net     (82 )     (19 )     2     33
  Total noninterest income     2,109       2,108       6,405     6,543
Noninterest Expense                            
Salaries and employee benefits     3,031       3,104       8,963     9,014
Occupancy and furniture and fixtures     394       387       1,230     1,181
Data processing and ATM     477       390       1,288     1,206
FDIC assessment     136       133       408     343
Credit card processing     656       607       1,854     1,817
Intangibles and goodwill amortization     269       270       809     812
Net costs of other real estate owned     52       58       192     209
Franchise taxes     280       258       803     646
Other operating expenses     828       881       2,637     2,302
  Total noninterest expense     6,123       6,088       18,184     17,530
Income before income tax expense     5,860       5,543       16,999     16,921
Income tax expense     1,343       1,250       3,831     3,859
  Net income   $ 4,517     $ 4,293     $ 13,168   $ 13,062
Basic net income per share   $ 0.65     $ 0.62     $ 1.90   $ 1.88
Fully diluted net income per share   $ 0.65     $ 0.62     $ 1.89   $ 1.88
Weighted average outstanding number of common shares                            
  Basic     6,947,974       6,941,757       6,947,974     6,940,573
  Diluted     6,972,769       6,962,852       6,970,063     6,958,316
Dividends declared per share     ---       ---     $ 0.54   $ 0.53
Dividend payout ratio     ---       ---       28.49     28.16
Book value per share     ---       ---     $ 21.06   $ 21.66
   
   
   
National Bankshares, Inc. and Subsidiaries  
Consolidated Statements of Comprehensive Income  
(Unaudited)  
   
    Three Months Ended  
($ in thousands)   September 30, 2013     September 30, 2012  
Net Income   $ 4,517     $ 4,293  
                 
Other Comprehensive Income, net of tax                
Unrealized holding losses on available for sale securities net of deferred taxes of ($2,056) and ($351)     (3,818 )     (653 )
Reclassification adjustment, net of income taxes of $31 and $6     57       12  
Other comprehensive loss, net of tax of ($2,025) and ($345)   $ (3,761 )   $ (641 )
Total comprehensive income   $ 756     $ 3,652  
       
       
    Nine Months Ended  
($ in thousands)   September 30,2013     September 30, 2012  
Net Income   $ 13,168     $ 13,062  
                 
Other Comprehensive Income, net of tax                
Unrealized holding losses on available for sale securities net of deferred taxes of ($7,126) and ($178)     (13,234 )     (331 )
Reclassification adjustment, net of income taxes of $1 and ($7)     3       (13 )
Other comprehensive loss, net of tax of ($7,125) and ($185)   $ (13,231 )   $ (344 )
Total comprehensive income (loss)   $ (63 )   $ 12,718  
   
   
   
Key Ratios and Other Data  
(Unaudited)  
   
($ in thousands)   Three Months Ended     Nine Months Ended  
Average Balances   September 30, 2013     September 30, 2012     September 30, 2013     September 30, 2012  
Cash and due from banks   $ 11,486     $ 11,942     $ 11,877     $ 11,860  
Interest-bearing deposits     60,718       89,899       79,795       96,410  
Securities available for sale     203,067       188,648       202,268       188,885  
Securities held to maturity     165,881       153,877       165,014       142,860  
Mortgage loans held for sale     757       2,028       1,220       1,503  
Gross loans     588,379       593,634       584,920       588,298  
Loans, net     579,404       584,341       575,741       578,993  
Intangible assets     8,722       9,803       8,989       10,072  
Total assets     1,078,837       1,084,118       1,090,630       1,073,887  
Total deposits     925,382       928,783       932,620       923,739  
Other borrowings     ---       ---       ---       ---  
Stockholders' equity     145,806       149,049       150,425       143,685  
Interest-earning assets     1,032,490       1,022,861       1,036,218       1,012,756  
Interest-bearing liabilities     784,421       785,441       791,940       783,049  
                                 
Financial ratios                                
Return on average assets     1.66 %     1.58 %     1.61 %     1.62 %
Return on average equity     12.29 %     11.46 %     11.70 %     12.14 %
Net interest margin     4.29 %     4.39 %     4.27 %     4.40 %
Net interest income - fully taxable equivalent   $ 11,165     $ 11,298     $ 33,124     $ 33,357  
Efficiency ratio     46.13 %     45.41 %     46.00 %     43.93 %
Average equity to average assets     13.52 %     13.75 %     13.79 %     13.38 %
                                 
Allowance for loan losses                                
Beginning balance   $ 7,952     $ 8,168     $ 8,349     $ 8,068  
Provision for losses     303       778       1,329       2,554  
Charge-offs     (196 )     (716 )     (1,680 )     (2,444 )
Recoveries     31       24       92       76  
Ending balance   $ 8,090     $ 8,254     $ 8,090     $ 8,254  
   
   
   
Asset Quality Data  
(Unaudited)  
   
($ in thousands)            
Nonperforming assets   September 30, 2013     September 30, 2012  
Nonaccrual loans   $ 10,194     $ 3,876  
Nonaccrual restructured loans     1,042       2,254  
Total nonperforming loans     11,236       6,130  
Other real estate owned     973       1,894  
Total nonperforming assets   $ 12,209     $ 8,024  
Accruing restructured loans   $ 6,545     $ 2,021  
Loans 90 days or more past due   $ 149     $ 114  
                 
Asset quality ratios                
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned     2.06 %     1.35 %
Allowance for loan losses to total loans     1.37 %     1.40 %
Allowance for loan losses to nonperforming loans     72.00 %     134.65 %
Loans past due 90 days or more and still accruing to loans net of unearned income and deferred fees     0.03 %     0.02 %
                 

Contact Information

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

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