BLACKSBURG, VA--(Marketwired - Apr 23, 2015) - National Bankshares, Inc. (
Commenting on the Company's financial results, National Bankshares Chairman, President & CEO James G. Rakes said, "We experienced write downs of $394 thousand on other real estate owned during the first quarter that contributed to the lower net income. Among other expenses, we had increased employee benefit expenses, mostly the result of pension related costs. Our loans, however, showed positive growth of over $33 million, or 5.71%, compared to first quarter of 2014. We still face challenges, such as the low interest rate environment which affect our margins, but we continue to be optimistic and focused on opportunities to grow our business and deliver the promise of successful community banking to our customers, employees, and stockholders."
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 share data) | March 31, 2015 | March 31, 2014 | December 31, 2014 | |||||||||||
| Assets | ||||||||||||||
| Cash and due from banks | $ | 12,452 | $ | 14,723 | $ | 12,894 | ||||||||
| Interest-bearing deposits | 87,676 | 109,181 | 102,548 | |||||||||||
| Federal funds sold | --- | --- | --- | |||||||||||
| Securities available for sale, at fair value | 238,496 | 190,061 | 222,844 | |||||||||||
| Securities held to maturity | 156,135 | 165,398 | 161,452 | |||||||||||
| Restricted stock | 1,129 | 1,089 | 1,089 | |||||||||||
| Total securities | 395,760 | 356,548 | 385,385 | |||||||||||
| Mortgage loans held for sale | 1,091 | --- | 291 | |||||||||||
| Loans: | ||||||||||||||
| Loans, net of unearned income and deferred fees | 622,171 | 589,048 | 605,466 | |||||||||||
| Less: allowance for loan losses | (8,257 | ) | (8,297 | ) | (8,263 | ) | ||||||||
| Loans, net | 613,914 | 580,751 | 597,203 | |||||||||||
| Premises and equipment, net | 8,998 | 9,428 | 9,131 | |||||||||||
| Accrued interest receivable | 5,506 | 5,893 | 5,748 | |||||||||||
| Other real estate owned | 4,573 | 4,901 | 4,744 | |||||||||||
| Intangible assets and goodwill | 6,954 | 8,029 | 7,223 | |||||||||||
| Bank-owned life insurance | 21,946 | 21,335 | 21,797 | |||||||||||
| Other assets | 5,975 | 12,321 | 7,767 | |||||||||||
| Total assets | $ | 1,164,845 | $ | 1,123,110 | $ | 1,154,731 | ||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||
| Noninterest-bearing deposits | $ | 160,217 | $ | 145,963 | $ | 150,744 | ||||||||
| Interest-bearing demand deposits | 526,388 | 503,596 | 533,641 | |||||||||||
| Savings deposits | 85,615 | 77,467 | 81,297 | |||||||||||
| Time deposits | 212,737 | 237,060 | 216,746 | |||||||||||
| Total deposits | 984,957 | 964,086 | 982,428 | |||||||||||
| Other borrowed funds | --- | --- | --- | |||||||||||
| Accrued interest payable | 70 | 78 | 68 | |||||||||||
| Other liabilities | 7,096 | 5,529 | 5,932 | |||||||||||
| Total liabilities | 992,123 | 969,693 | 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, 6,950,474 shares at March 31, 2015 and December 31, 2014 and 6,947,974 shares at March 31, 2014. | 8,688 | 8,685 | 8,688 | |||||||||||
| Retained earnings | 167,253 | 158,575 | 163,287 | |||||||||||
| Accumulated other comprehensive loss, net | (3,219 | ) | (13,843 | ) | (5,672 | ) | ||||||||
| Total stockholders' equity | 172,722 | 153,417 | 166,303 | |||||||||||
| Total liabilities and stockholders' equity | $ | 1,164,845 | $ | 1,123,110 | $ | 1,154,731 | ||||||||
| National Bankshares, Inc. and Subsidiaries | ||||||||
| Consolidated Statements of Income | ||||||||
| (Unaudited) | ||||||||
| Three Months Ending | ||||||||
| ($ in thousands, except for share and per share data) | March 31, 2015 | March 31, 2014 | ||||||
| Interest Income | ||||||||
| Interest and fees on loans | $ | 7,649 | $ | 7,935 | ||||
| Interest on federal funds | --- | --- | ||||||
| Interest on interest-bearing deposits | 64 | 65 | ||||||
| Interest on securities - taxable | 1,734 | 1,653 | ||||||
| Interest on securities - nontaxable | 1,386 | 1,500 | ||||||
| Total interest income | 10,833 | 11,153 | ||||||
| Interest Expense | ||||||||
| Interest on time deposits of $100 or more | 128 | 153 | ||||||
| Interest on other deposits | 959 | 1,162 | ||||||
| Interest on borrowed funds | --- | --- | ||||||
| Total interest expense | 1,087 | 1,315 | ||||||
| Net interest income | 9,746 | 9,838 | ||||||
| Provision for loan losses | 201 | 103 | ||||||
| Net income after provision for loan losses | 9,545 | 9,735 | ||||||
| Noninterest Income | ||||||||
| Service charges on deposit accounts | 535 | 592 | ||||||
| Other service charges and fees | 71 | 65 | ||||||
| Credit card fees | 895 | 797 | ||||||
| Trust Income | 289 | 293 | ||||||
| Bank-owned life insurance | 170 | 175 | ||||||
| Other income | 282 | 277 | ||||||
| Realized securities gains (losses), net | (2 | ) | 1 | |||||
| Total noninterest income | 2,240 | 2,200 | ||||||
| Noninterest Expense | ||||||||
| Salaries and employee benefits | 3,072 | 2,999 | ||||||
| Occupancy and furniture and fixtures | 452 | 440 | ||||||
| Data processing and ATM | 434 | 363 | ||||||
| FDIC assessment | 135 | 147 | ||||||
| Credit card processing | 610 | 549 | ||||||
| Intangibles and goodwill amortization | 269 | 269 | ||||||
| Net cost of other real estate owned | 471 | 77 | ||||||
| Franchise taxes | 308 | 279 | ||||||
| Other operating expenses | 957 | 1,059 | ||||||
| Total noninterest expense | 6,708 | 6,182 | ||||||
| Income before income tax expense | 5,077 | 5,753 | ||||||
| Income tax expense | 1,111 | 1,349 | ||||||
| Net income | $ | 3,966 | $ | 4,404 | ||||
| Basic net income per share | $ | 0.57 | $ | 0.63 | ||||
| Fully diluted net income per share | $ | 0.57 | $ | 0.63 | ||||
| Weighted average number of common shares outstanding | ||||||||
| Basic | 6,950,474 | 6,947,974 | ||||||
| Diluted | 6,955,023 | 6,963,865 | ||||||
| Dividends declared per share | $ | --- | $ | --- | ||||
| Dividend payout ratio | --- | --- | ||||||
| Book value per share | $ | 24.85 | $ | 22.08 | ||||
| National Bankshares, Inc. and Subsidiaries | ||||||
| Consolidated Statements of Comprehensive Income | ||||||
| (Unaudited) | ||||||
| Three Months Ended | ||||||
| ($ in thousands) | March 31, 2015 | March 31, 2014 | ||||
| Net income | $ | 3,966 | $ | 4,404 | ||
| Other Comprehensive Income, net of tax | ||||||
| Unrealized holding gains on available for sale securities net of deferred tax of $1,320 in 2015 and $1,681 in 2014 | 2,452 | 3,121 | ||||
| Reclassification adjustment, net of income tax (benefit) of $1 in 2015 and $0 in 2014 | 1 | --- | ||||
| Other comprehensive income, net of tax of $1,321 and $1,681 for the periods ended March 31, 2015 and 2014, respectively | $ | 2,453 | $ | 3,121 | ||
| Total Comprehensive Income | $ | 6,419 | $ | 7,525 | ||
| National Bankshares, Inc. and Subsidiaries | ||||||||
| Key Ratios and Other Data | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| $ in thousands | March 31, 2015 | March 31, 2014 | ||||||
| Average Balances | ||||||||
| Cash and due from banks | $ | 11,364 | $ | 11,937 | ||||
| Interest-bearing deposits | 104,104 | 103,024 | ||||||
| Securities available for sale | 222,161 | 184,497 | ||||||
| Securities held to maturity | 159,376 | 162,782 | ||||||
| Restricted stock | 1,095 | 1,385 | ||||||
| Mortgage loans held for sale | 460 | 382 | ||||||
| Gross Loans | 605,137 | 592,338 | ||||||
| Loans, net | 604,288 | 583,189 | ||||||
| Intangible assets | 7,109 | 8,185 | ||||||
| Total assets | 1,149,578 | 1,108,867 | ||||||
| Total deposits | 973,738 | 953,703 | ||||||
| Other borrowings | --- | --- | ||||||
| Stockholders' equity | 169,289 | 149,877 | ||||||
| Interest-earning assets | 1,092,481 | 1,062,323 | ||||||
| Interest-bearing liabilities | 821,308 | 812,690 | ||||||
| Financial ratios | ||||||||
| Return on average assets | 1.40 | % | 1.61 | % | ||||
| Return on average equity | 9.50 | % | 11.92 | % | ||||
| Net interest margin | 3.95 | % | 4.12 | % | ||||
| Net interest income-fully taxable equivalent | $ | 10,648 | $ | 10,799 | ||||
| Efficiency ratio | 52.05 | % | 47.56 | % | ||||
| Average equity to average assets | 14.73 | % | 13.52 | % | ||||
| Allowance for loan losses | ||||||||
| Beginning balance | $ | 8,263 | $ | 8,227 | ||||
| Provision for losses | 201 | 103 | ||||||
| Charge-offs | (260 | ) | (191 | ) | ||||
| Recoveries | 53 | 158 | ||||||
| Ending balance | $ | 8,257 | $ | 8,297 | ||||
| National Bankshares, Inc. and Subsidiaries | ||||||||
| Asset Quality Data | ||||||||
| (Unaudited) | ||||||||
| $ in thousands | ||||||||
| Nonperforming assets | March 31, 2015 | March 31, 2014 | ||||||
| Nonaccrual loans | $ | 3,102 | $ | 5,071 | ||||
| Nonaccrual restructured loans | 6,123 | 1,007 | ||||||
| Total nonperforming loans | 9,225 | 6,078 | ||||||
| Other real estate owned | 4,573 | 4,901 | ||||||
| Total nonperforming assets | $ | 13,798 | $ | 10,979 | ||||
| Accruing restructured loans | 5,992 | 6,145 | ||||||
| Loans 90 days or more past due | $ | 272 | $ | 163 | ||||
| Asset quality ratios | ||||||||
| Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned | 2.20 | % | 1.85 | % | ||||
| Allowance for loans losses to total loans | 1.33 | % | 1.41 | % | ||||
| Allowance for loan losses to nonperforming loans | 89.51 | % | 136.51 | % | ||||
| Loans past due 90 days or more to loans net of unearned income and deferred fees | 0.04 | % | 0.03 | % | ||||
CONTACTS: JAMES G. RAKES CHAIRMAN, PRESIDENT & CEO (540) 951-6236 Email Contact DAVID K. SKEENS TREASURER & CFO (540) 951-6347 Email Contact
