National Bankshares, Inc. Reports Income for the Nine Months Ended September 30, 2015
/EINPresswire.com/ -- BLACKSBURG, VA -- (Marketwired) -- 10/29/15 -- Today, National Bankshares, Inc. (NASDAQ: NKSH) announced net income of approximately $12.28 million through September 30, 2015 compared to $12.78 million reported for the first nine months of 2014. Basic earnings per share were $1.77 which compares with $1.84 reported at September 30, 2014. The return on average assets for the nine months ended September 30, 2015 was 1.43% compared to 1.53% in 2014. The return on average equity was 9.60% and 10.99% for the same two periods. At September 30, 2015, the Company had total assets of over $1.14 billion.
National Bankshares' Chairman, President & CEO James G. Rakes commented, "As our regional economy continues its steady recovery, we are seeing increasing demand for loans in our market area. We continue to emphasize quality over quantity in our lending approach and believe we are building a loan portfolio that will perform well in the future. While our earnings remain strong, we look to the future and continue our investment in our systems, products, processes and people."
National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of The 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 26 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 and per September September December
share data 30, 2015 30, 2014 31, 2014
---------- ---------- ----------
Assets
Cash and due from banks $ 12,446 $ 12,815 $ 12,894
Interest-bearing deposits 90,295 87,621 102,548
Federal funds sold --- --- ---
Securities available for sale, at fair
value 211,232 205,020 222,844
Securities held to maturity 154,644 162,457 161,452
Restricted stock 1,129 1,089 1,089
---------- ---------- ----------
Total securities 367,005 368,566 385,385
---------- ---------- ----------
Mortgage loans held for sale 1,331 725 291
Loans:
Loans, net of unearned income and
deferred fees 625,755 595,801 605,466
Less: allowance for loan losses (8,117) (8,031) (8,263)
---------- ---------- ----------
Loans, net 617,638 587,770 597,203
---------- ---------- ----------
Premises and equipment, net 9,135 9,445 9,131
Accrued interest receivable 5,659 5,708 5,748
Other real estate owned 4,194 5,145 4,744
Intangible assets and goodwill 6,416 7,492 7,223
Bank-owned life insurance 22,248 21,643 21,797
Other assets 7,758 9,329 7,767
---------- ---------- ----------
Total assets $1,144,125 $1,116,259 $1,154,731
========== ========== ==========
Liabilities and Stockholders' Equity
Noninterest-bearing deposits $ 163,877 $ 153,118 $ 150,744
Interest-bearing demand deposits 514,823 492,005 533,641
Savings deposits 86,659 79,870 81,297
Time deposits 197,171 223,930 216,746
---------- ---------- ----------
Total deposits 962,530 948,923 982,428
---------- ---------- ----------
Other borrowed funds --- --- ---
Accrued interest payable 61 67 68
Other liabilities 7,142 4,447 5,932
---------- ---------- ----------
Total liabilities 969,733 953,437 988,428
---------- ---------- ----------
Stockholders' Equity
Preferred stock, no par value, 5,000,000
shares authorized; none issued and
outstanding --- --- ---
Common stock of $1.25 par value.
Authorized 10,000,000 shares; issued
and outstanding, 6,955,974 shares at
September 30, 2015, and 6,950,474
shares at December 31, 2014 and at
September 30, 2014, respectively. 8,695 8,688 8,688
Retained earnings 171,996 163,181 163,287
Accumulated other comprehensive loss,
net (6,299) (9,047) (5,672)
---------- ---------- ----------
Total stockholders' equity 174,392 162,822 166,303
---------- ---------- ----------
Total liabilities and stockholders'
equity $1,144,125 $1,116,259 $1,154,731
========== ========== ==========
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended Nine Months Ended
September September September September
30, 2015 30, 2014 30, 2015 30, 2014
---------- ---------- ---------- ----------
$ in thousands, except for
share and per share data
Interest Income
Interest and fees on loans $ 7,676 $ 7,729 $ 22,886 $ 23,406
Interest on federal funds --- --- --- ---
Interest on interest-bearing
deposits 54 64 173 193
Interest on securities -
taxable 1,678 1,718 5,124 5,068
Interest on securities -
nontaxable 1,352 1,436 4,095 4,410
---------- ---------- ---------- ----------
Total interest income 10,760 10,947 32,278 33,077
---------- ---------- ---------- ----------
Interest Expense
Interest on time deposits 301 361 943 1,133
Interest on other deposits 708 786 2,204 2,624
Interest on borrowed funds --- --- --- ---
---------- ---------- ---------- ----------
Total interest expense 1,009 1,147 3,147 3,757
---------- ---------- ---------- ----------
Net interest income 9,751 9,800 29,131 29,320
Provision for loan losses 178 356 734 1,160
---------- ---------- ---------- ----------
Net income after provision
for loan losses 9,573 9,444 28,397 28,160
---------- ---------- ---------- ----------
Noninterest Income
Service charges on deposit
accounts 571 634 1,676 1,833
Other service charges and fees 45 42 164 145
Credit card fees 972 929 2,843 2,687
Trust Income 314 296 902 921
Bank-owned life insurance 151 153 451 462
Other income 234 200 977 783
Realized securities gains, net 2 4 5 5
---------- ---------- ---------- ----------
Total noninterest income 2,289 2,258 7,018 6,836
---------- ---------- ---------- ----------
Noninterest Expense
Salaries and employee benefits 3,149 2,927 9,433 8,890
Occupancy and furniture and
fixtures 436 403 1,296 1,250
Data processing and ATM 384 429 1,230 1,189
FDIC assessment 138 147 408 411
Credit card processing 701 673 1,986 1,887
Intangibles and goodwill
amortization 269 269 807 807
Net cost of other real estate
owned 52 98 569 259
Franchise taxes 329 307 959 874
Other operating expenses 864 862 2,690 2,747
---------- ---------- ---------- ----------
Total noninterest expense 6,322 6,115 19,378 18,314
---------- ---------- ---------- ----------
Income before income tax
expense 5,540 5,587 16,037 16,682
Income tax expense 1,341 1,324 3,762 3,906
---------- ---------- ---------- ----------
Net income $ 4,199 $ 4,263 $ 12,275 $ 12,776
========== ========== ========== ==========
Basic net income per share $ 0.60 $ 0.61 $ 1.77 $ 1.84
========== ========== ========== ==========
Fully diluted net income per
share $ 0.60 $ 0.61 $ 1.76 $ 1.84
========== ========== ========== ==========
Weighted average number of
common shares outstanding
Basic 6,955,126 6,948,681 6,952,716 6,948,212
========== ========== ========== ==========
Diluted 6,959,168 6,956,777 6,956,689 6,960,444
========== ========== ========== ==========
Dividends declared per share --- --- $ 0.53 $ 0.55
========== ========== ========== ==========
Dividend payout ratio --- --- 30.03% 29.91%
========== ========== ========== ==========
Book value per share --- --- $ 25.07 $ 23.43
========== ========== ========== ==========
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
$ in thousands September September
30, 2015 30, 2014
--------- ---------
Net income $ 4,199 $ 4,263
Other Comprehensive Income, net of tax
Unrealized holding gains on available for sale
securities net of tax of $1,396 in 2015 and $919 in
2014 2,587 1,708
Reclassification adjustment for gains included in net
income, net of tax of ($1) in 2015 and ($1) in 2014 (1) (3)
--------- ---------
Other comprehensive income, net of tax of $1,395 in
2015 and $918 in 2014 $ 2,586 $ 1,705
--------- ---------
Total Comprehensive Income $ 6,785 $ 5,968
========= =========
Nine Months Ended
$ in thousands September September
30, 2015 30, 2014
--------- ---------
Net income $ 12,275 $ 12,776
Other Comprehensive Income, net of tax
Unrealized holding gains (losses) on available for
sale securities net of tax of ($334) in 2015 and
$4,264 in 2014 (624) 7,920
Reclassification adjustment for gains included in net
income, net of tax of ($2) in 2015 and ($1) in 2014 (3) (3)
--------- ---------
Other comprehensive income (loss), net of tax of
($336) in 2015 and $4,263 in 2014 $ (627) $ 7,917
--------- ---------
Total Comprehensive Income $ 11,648 $ 20,693
========= =========
National Bankshares, Inc. and Subsidiaries
Key Ratios and Other Data
(Unaudited)
$ in thousands Three Months Ended Nine Months Ended
September September September September
Average Balances 30, 2015 30, 2014 30, 2015 30, 2014
---------- ---------- ---------- ----------
Cash and due from banks $ 11,612 $ 11,863 $ 11,506 $ 11,811
Interest-bearing deposits 84,882 100,349 91,791 101,908
Securities available for
sale 216,949 202,113 222,823 193,549
Securities held to maturity 154,978 162,531 156,678 163,268
Restricted stock 1,129 1,089 1,118 1,187
Mortgage loans held for sale 986 439 781 359
Gross Loans 627,596 593,165 619,204 592,528
Loans, net 618,611 584,308 610,135 583,521
Intangible assets 6,571 7,646 6,838 7,914
Total assets 1,144,723 1,121,501 1,150,026 1,115,643
Total deposits 966,199 956,804 972,104 955,058
Other borrowings --- --- --- ---
Stockholders' equity 171,698 160,310 170,883 155,447
Interest-earning assets 1,089,803 1,068,583 1,093,699 1,066,031
Interest-bearing liabilities 805,655 808,075 814,800 810,808
Financial ratios
Return on average assets 1.46% 1.51% 1.43% 1.53%
Return on average equity 9.70% 10.55% 9.60% 10.99%
Net interest margin 3.89% 3.98% 3.90% 4.03%
Net interest income-fully
taxable equivalent $ 10,673 $ 10,719 $ 31,881 $ 32,139
Efficiency ratio 48.77% 47.12% 49.82% 46.99%
Average equity to average
assets 15.00% 14.29% 14.86% 13.93%
Allowance for loan losses
Beginning balance $ 8,131 $ 7,971 $ 8,263 $ 8,227
Provision for losses 178 356 734 1,160
Charge-offs (226) (324) (1,002) (1,568)
Recoveries 34 28 122 212
---------- ---------- ---------- ----------
Ending balance $ 8,117 $ 8,031 $ 8,117 $ 8,031
========== ========== ========== ==========
National Bankshares, Inc. and Subsidiaries
Asset Quality Data
(Unaudited)
September September
$ in thousands 30, 2015 30, 2014
--------- ---------
Nonperforming assets
Nonaccrual loans $ 3,207 $ 5,366
Nonaccrual restructured loans 5,781 2,360
--------- ---------
Total nonperforming loans 8,988 7,726
Other real estate owned 4,194 5,145
--------- ---------
Total nonperforming assets $ 13,182 $ 12,871
========= =========
Accruing restructured loans 6,080 5,947
--------- ---------
Loans 90 days or more past due $ 47 $ 485
========= =========
Asset quality ratios
Nonperforming assets to loans net of unearned income
and deferred fees, plus other real estate owned 2.09% 2.14%
Allowance for loans losses to total loans 1.30% 1.35%
Allowance for loan losses to nonperforming loans 90.31% 103.95%
Loans past due 90 days or more to loans net of
unearned income and deferred fees 0.01% 0.08%
CONTACTS:
JAMES G. RAKES
CHAIRMAN, PRESIDENT & CEO
(540) 951-6236
Email Contact
DAVID K. SKEENS
TREASURER & CFO
(540) 951-6347
Email Contact
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