SOURCE: National Bankshares, Inc.

National Bankshares, Inc.

October 18, 2012 16:30 ET

National Bankshares, Inc. Reports Increased Net Income for First Three Quarters of 2012

BLACKSBURG, VA--(Marketwire - Oct 18, 2012) -  Today, National Bankshares, Inc. (NASDAQ: NKSH) announced net income of approximately $13.06 million through September 30, 2012, up $313 thousand, or 2.46%, above the total reported for the first nine months of 2011. Basic earnings per share were $1.88, which compares with $1.84 reported at September 30, 2011. At September 30, 2012, the Company had total assets of $1.08 billion, an increase of 3.73% in total assets since the end of September 2011.

National Bankshares' Chairman, President & CEO James G. Rakes, commented, "While economic factors combined with increased regulatory burden and political uncertainty continue to challenge our market area and the financial industry, our consistent focus on providing our customers the best services and products available continues to bring successful results to our stockholders."

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)   September 30, 2012     September 30, 2011     December 31, 2011  
Assets                        
Cash and due from banks   $ 12,445     $ 12,180     $ 11,897  
Interest-bearing deposits     67,394       70,252       98,355  
Federal funds sold     ---       ---       ---  
Securities available for sale     198,079       180,126       174,918  
Securities held to maturity     161,728       138,148       143,995  
      Total securities     359,807       318,274       318,913  
Mortgage loans held for sale     3,015       1,108       2,623  
Loans:                        
  Loans, net of unearned income and deferred fees     591,461       596,416       588,470  
  Less: allowance for loan losses     (8,254 )     (8,719 )     (8,068 )
    Loans, net     583,207       587,697       580,402  
Bank premises and equipment, net     10,491       10,328       10,393  
Accrued interest receivable     6,291       6,359       6,304  
Other real estate owned     1,894       1,759       1,489  
Intangible assets     9,648       10,730       10,460  
Bank-owned life insurance     20,346       17,580       19,812  
Other assets     6,434       5,855       6,454  
      Total assets   $ 1,080,972     $ 1,042,122     $ 1,067,102  
                         
Liabilities and Stockholders' Equity                        
Noninterest-bearing deposits   $ 147,346     $ 140,609     $ 142,163  
Interest-bearing demand deposits     418,482       381,571       404,801  
Savings deposits     66,576       59,395       61,298  
Time deposits     291,979       312,660       311,071  
      Total deposits     924,383       894,235       919,333  
Other borrowed funds     ---       ---       ---  
Accrued interest payable     178       207       206  
Other liabilities     6,013       5,860       6,264  
      Total liabilities     930,574       900,302       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 6,943,974 shares at September 30, 2012, 6,937,974 at September 30, 2011 and 6,939,974 at December 31,2011     8,680       8,672       8,675  
Retained earnings     143,383       132,638       133,945  
Accumulated other comprehensive gain (loss), net     (1,665 )     510       (1,321 )
    Total stockholders' equity     150,398       141,820       141,299  
      Total liabilities and stockholders' equity   $ 1,080,972     $ 1,042,122     $ 1,067,102  
                         
                         
                         
National Bankshares, Inc. and Subsidiaries  
Consolidated Statements of Income  
(Unaudited)  
   
    Three Months Ended     Nine Months Ended  
    September 30, 2012     September 30, 2011     September 30, 2012   September 30, 2011  
($ in thousands, except for per share data)                              
Interest Income                              
Interest and fees on loans   $ 8,923     $ 9,184     $ 26,554   $ 27,386  
Interest on federal funds     ---       ---       ---     ---  
Interest on interest-bearing deposits     60       37       187     104  
Interest on securities - taxable     1,620       1,740       4,991     5,115  
Interest on securities - nontaxable     1,634       1,616       4,801     4,912  
  Total interest income     12,237       12,577       36,533     37,517  
                               
Interest Expense                              
Interest on time deposits of $100,000 or more     355       485       1,171     1,551  
Interest on other deposits     1,581       1,797       4,900     5,456  
Interest on borrowed funds     ---       ---       ---     ---  
  Total interest expense     1,936       2,282       6,071     7,007  
  Net interest income     10,301       10,295       30,462     30,510  
Provision for loan losses     778       643       2,554     2,196  
  Net interest income after provision for loan losses     9,523       9,652       27,908     28,314  
                               
Noninterest Income                              
Service charges on deposit accounts     674       692       1,956     1,952  
Other service charges and fees     40       57       130     174  
Credit card fees     807       805       2,441     2,365  
Trust income     271       264       1,037     817  
Bank-owned life insurance     205       189       605     559  
Other income     130       125       341     293  
Realized securities gains (losses), net     (19 )     (3 )     33     (7 )
  Total noninterest income     2,108       2,129       6,543     6,153  
                               
Noninterest Expense                              
Salaries and employee benefits     3,104       2,834       9,014     8,561  
Occupancy and furniture and fixtures     387       349       1,181     1,207  
Data processing and ATM     390       416       1,206     1,289  
FDIC assessment     133       353       343     1,049  
Credit card processing     607       639       1,817     1,871  
Intangibles and goodwill amortization     270       271       812     813  
Net costs of other real estate owned     58       52       209     281  
Franchise taxes     258       162       646     619  
Other operating expenses     881       811       2,302     2,306  
  Total noninterest expense     6,088       5,887       17,530     17,996  
Income before income tax expense     5,543       5,894       16,921     16,471  
Income tax expense     1,250       1,385       3,859     3,722  
  Net income   $ 4,293     $ 4,509     $ 13,062   $ 12,749  
                               
Basic net income per share   $ 0.62     $ 0.65     $ 1.88   $ 1.84  
Fully diluted net income per share   $ 0.62     $ 0.65     $ 1.88   $ 1.83  
Weighted average outstanding number of common shares                              
  Basic     6,941,757       6,937,974       6,940,573     6,936,100  
  Diluted     6,962,852       6,945,174       6,958,316     6,951,155  
Dividends declared per share     ---       ---     $ 0.53   $ 0.48  
Dividend payout ratio     ---       ---       28.16     26.11  
Book value per share   $ ---     $ ---     $ 21.66   $ 20.44  
                               
                               
                               
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
 
    Three Months Ended
($ in thousands, except for per share data)   September 30, 2012     September 30, 2011
Net Income   $ 4,293     $ 4,509
               
Other Comprehensive Income, net of tax              
Unrealized holding gains (losses) on available for sale securities net of deferred taxes of ($351) and $536     (653 )     996
Reclassification adjustment, net of income taxes of $6 and $4     12       7
Other comprehensive income (loss), net of tax of ($345) and $540   $ (641 )   $ 1,003
Total Comprehensive Income   $ 3,652     $ 5,512
               
    Nine Months Ended
($ in thousands, except for per share data)   September 30, 2012     September 30, 2011
Net Income   $ 13,062     $ 12,749
               
Other Comprehensive Income, net of tax              
Unrealized holding gains (losses) on available for sale securities net of deferred taxes of ($178) and $1,689     (331 )     3,137
Reclassification adjustment, net of income taxes of $(7) and $8     (13 )     14
Other comprehensive income (loss), net of tax of ($185) and $1,697   $ (344 )   $ 3,151
Total Comprehensive Income   $ 12,718     $ 15,900
               
               
               
Key Ratios and Other Data  
(Unaudited)  
   
    Three Months Ended     Nine Months Ended  
Average Balances   September 30, 2012     September 30, 2011     September 30, 2012     September 30, 2011  
Cash and due from banks   $ 11,942     $ 11,709     $ 11,860     $ 11,807  
Interest-bearing deposits     89,899       57,402       96,410       56,998  
Securities available for sale     188,648       191,763       188,885       189,298  
Securities held to maturity     153,877       134,519       142,860       133,160  
Mortgage loans held for sale     2,028       647       1,503       618  
Gross loans     593,634       593,544       588,298       589,074  
Loans, net     584,341       583,960       578,993       579,827  
Intangible assets     9,803       10,886       10,072       11,155  
Total assets     1,084,118       1,032,823       1,073,887       1,025,778  
Total deposits     928,783       887,218       923,739       883,309  
Other borrowings     ---       ---       ---       ---  
Stockholders' equity     149,049       138,767       143,685       135,069  
Interest-earning assets     1,022,861       973,705       1,012,756       966,796  
Interest-bearing liabilities     785,441       749,626       783,049       749,332  
                                 
Financial ratios                                
Return on average assets     1.58 %     1.75 %     1.62 %     1.66 %
Return on average equity     11.46 %     13.03 %     12.14 %     12.62 %
Net interest margin     4.39 %     4.64 %     4.40 %     4.62 %
Net interest income - fully taxable equivalent   $ 11,298     $ 11,259     $ 33,357     $ 33,405  
Efficiency ratio     45.41 %     43.96 %     43.93 %     45.49 %
Average equity to average assets     13.75 %     13.44 %     13.38 %     13.17 %
                                 
Allowance for loan losses                                
Beginning balance   $ 8,168     $ 8,494     $ 8,068     $ 7,664  
Provision for losses     778       643       2,554       2,196  
Charge-offs     (716 )     (446 )     (2,444 )     (1,205 )
Recoveries     24       28       76       64  
Ending balance   $ 8,254     $ 8,719     $ 8,254     $ 8,719  
                                 
                                 
                                 
Asset Quality Data  
(Unaudited)  
   
Nonperforming assets   September 30, 2012     September 30, 2011  
Nonaccrual loans   $ 3,876     $ 1,263  
Nonaccrual restructured loans     2,254       3,081  
Total nonperforming loans     6,130       4,344  
Other real estate owned     1,894       1,759  
Total nonperforming assets   $ 8,024     $ 6,103  
Accruing restructured loans   $ 2,021     $ 5,524  
Loans 90 days or more past due   $ 114     $ 339  
                 
Asset quality ratios                
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned     1.35 %     1.02 %
Allowance for loan losses to total loans     1.40 %     1.46 %
Allowance for loan losses to nonperforming loans     134.65 %     200.71 %
Loans past due 90 days or more to loans net of unearned income and deferred fees     0.02 %     0.06 %

Contact Information

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

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