BLACKSBURG, VA--(Marketwired - Oct 17, 2013) - Today, National Bankshares, Inc. (
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
DAVID K. SKEENS
TREASURER & CFO
(540) 951-6347