National Bankshares, Inc. Reports First Quarter Earnings
Tweet
Share
E-mailGet Alerts NKSH Hot Sheet
Join SI Premium – FREE
BLACKSBURG, VA -- (Marketwired) -- 04/28/16 -- National Bankshares, Inc. (NASDAQ: NKSH) today announced its results of operations for the first quarter of 2016. The Company reported net income of $3.78 million for the quarter ended March 31, 2016 compared to almost $3.97 million at March 31, 2015. Basic earnings per share were $0.54 at March 31, 2016 compared to $0.57 for the same period in 2015. For the first quarter, the return on average assets was 1.28% and the return on average equity was 8.64% compared to 1.40% and 9.50%, respectively, for the first quarter of 2015. At March 31, 2016, the Company had total assets of close to $1.21 billion which was an increase of 3.69% when compared to $1.16 billion at the end of the first quarter of 2015.
Commenting on the Company's financial results, National Bankshares Chairman, President & CEO James G. Rakes said, "We continue to compare very favorably to our peer group in terms of our balance sheet and income statement results. Asset quality remains a priority as nonperforming loans declined over 31% from the first quarter of 2015. In addition, net OREO balances dropped 21% when the same two periods are compared. We still face challenges, such as static loan demand, a low interest rate environment and increased competition, but we are striving to grow loans, manage expenses, and increase noninterest revenue. As we enter our 125th year of banking, we are focused on continuing to provide long-term value to our stockholders and customers through delivery of superior customer service and products."
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 full service offices and one loan production office 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 March 31, March 31, December 31,
and per share data) 2016 2015 2015
------------ ------------ ------------
Assets
Cash and due from banks $ 9,913 $ 12,452 $ 12,152
Interest-bearing deposits 129,363 87,676 130,811
Federal funds sold --- --- ---
Securities available for sale, at
fair value 270,094 238,496 236,131
Securities held to maturity 144,664 156,135 152,028
Restricted stock 1,170 1,129 1,129
------------ ------------ ------------
Total securities 415,928 395,760 389,288
------------ ------------ ------------
Mortgage loans held for sale 63 1,091 634
Loans:
Loans, net of unearned income and
deferred fees 607,643 622,171 619,008
Less: allowance for loan losses (8,107) (8,257) (8,297)
------------ ------------ ------------
Loans, net 599,536 613,914 610,711
------------ ------------ ------------
Premises and equipment, net 8,841 8,998 9,020
Accrued interest receivable 5,587 5,506 5,769
Other real estate owned 3,612 4,573 4,165
Intangible assets and goodwill 6,114 6,954 6,224
Bank-owned life insurance 22,548 21,946 22,401
Other assets 6,366 5,975 8,564
------------ ------------ ------------
Total assets $ 1,207,871 $ 1,164,845 $ 1,199,739
============ ============ ============
Liabilities and Stockholders'
Equity
Noninterest-bearing deposits $ 170,207 $ 160,217 $ 166,453
Interest-bearing demand deposits 570,065 526,388 569,787
Savings deposits 92,944 85,615 90,236
Time deposits 185,296 212,737 192,383
------------ ------------ ------------
Total deposits 1,018,512 984,957 1,018,859
------------ ------------ ------------
Other borrowed funds --- --- ---
Accrued interest payable 62 70 56
Other liabilities 10,061 7,096 8,710
------------ ------------ ------------
Total liabilities 1,028,635 992,123 1,027,625
------------ ------------ ------------
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, 6,957,974
shares at March 31, 2016 and
December 31, 2015 and 6,950,474
shares at March 31, 2015. 8,697 8,688 8,697
Retained earnings 175,132 167,253 171,353
Accumulated other comprehensive
loss, net (4,593) (3,219) (7,936)
------------ ------------ ------------
Total stockholders' equity 179,236 172,722 172,114
------------ ------------ ------------
Total liabilities and
stockholders' equity $ 1,207,871 $ 1,164,845 $ 1,199,739
============ ============ ============
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ending
($ in thousands, except for share and per share March 31, March 31,
data) 2016 2015
----------- -----------
Interest Income
Interest and fees on loans $ 7,334 $ 7,610
Interest on federal funds --- ---
Interest on interest-bearing deposits 162 64
Interest on securities - taxable 1,677 1,734
Interest on securities - nontaxable 1,311 1,386
----------- -----------
Total interest income 10,484 10,794
----------- -----------
Interest Expense
Interest on time deposits 274 327
Interest on other deposits 794 760
Interest on borrowed funds --- ---
----------- -----------
Total interest expense 1,068 1,087
----------- -----------
Net interest income 9,416 9,707
Provision for loan losses 203 201
----------- -----------
Net income after provision for loan losses 9,213 9,506
----------- -----------
Noninterest Income
Service charges on deposit accounts 560 535
Other service charges and fees 72 71
Credit card fees 870 895
Trust Income 323 289
Bank-owned life insurance 147 149
Other income 345 314
Realized securities gains (losses), net 24 (2)
----------- -----------
Total noninterest income 2,341 2,251
----------- -----------
Noninterest Expense
Salaries and employee benefits 3,568 3,051
Occupancy and furniture and fixtures 477 449
Data processing and ATM 411 435
FDIC assessment 141 135
Credit card processing 622 610
Intangibles and goodwill amortization 110 269
Net cost of other real estate owned 69 464
Franchise taxes 331 308
Other operating expenses 955 959
----------- -----------
Total noninterest expense 6,684 6,680
----------- -----------
Income before income tax expense 4,870 5,077
Income tax expense 1,091 1,111
----------- -----------
Net Income $ 3,779 $ 3,966
=========== ===========
Basic net income per share $ 0.54 $ 0.57
=========== ===========
Fully diluted net income per share $ 0.54 $ 0.57
=========== ===========
Weighted average number of common shares
outstanding
Basic 6,957,974 6,950,474
=========== ===========
Diluted 6,957,974 6,955,023
=========== ===========
Dividends declared per share $ --- $ ---
=========== ===========
Dividend payout ratio 0.00% 0.00%
=========== ===========
Book value per share $ 25.76 $ 24.85
=========== ===========
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
Three Months Ended
March 31, March 31,
($ in thousands) 2016 2015
----------- ------------
Net Income $ 3,779 $ 3,966
Other Comprehensive Income, Net of Tax
Unrealized holding gains on available for sale
securities net of tax of $1,809 and $1,320 for
the periods ended March 31, 2016 and 2015,
respectively 3,359 2,452
Reclassification adjustment for losses (gains)
included in net income, net of tax of ($8) and $1
for the periods ended March 31, 2016 and 2015,
respectively (16) 1
----------- ------------
Other comprehensive income, net of tax of $1,801
and $1,321 for the periods ended March 31, 2016
and 2015, respectively $ 3,343 $ 2,453
----------- ------------
Total comprehensive income $ 7,122 $ 6,419
=========== ============
Key Ratios and Other Data
(Unaudited)
Three Months Ended
March 31, March 31,
$ in thousands 2016 2015
----------- -----------
Average Balances
Cash and due from banks $ 11,309 $ 11,364
Interest-bearing deposits 125,849 104,104
Securities available for sale 245,153 222,161
Securities held to maturity 149,202 159,376
Restricted stock 1,133 1,095
Mortgage loans held for sale 427 460
Gross Loans 610,979 605,137
Loans, net 601,557 604,288
Intangible assets 6,170 7,109
Total assets 1,188,462 1,149,578
Total deposits 1,003,136 973,738
Other borrowings --- ---
Stockholders' equity 175,991 169,289
Interest-earning assets 1,132,925 1,092,481
Interest-bearing liabilities 838,943 821,308
Financial Ratios
Return on average assets 1.28% 1.40%
Return on average equity 8.64% 9.50%
Net interest margin 3.66% 3.94%
Net interest income-fully taxable equivalent $ 10,307 $ 10,608
Efficiency ratio 52.85% 51.95%
Average equity to average assets 14.81% 14.73%
Allowance for Loan Losses
Beginning balance $ 8,297 $ 8,263
Provision for losses 203 201
Charge-offs (453) (260)
Recoveries 60 53
----------- -----------
Ending balance $ 8,107 $ 8,257
=========== ===========
Asset Quality Data
(Unaudited)
March 31, March 31,
$ in thousands 2016 2015
----------- -----------
Nonperforming Assets
Nonaccrual loans $ 1,901 $ 3,102
Nonaccrual restructured loans 4,504 6,123
----------- -----------
Total nonperforming loans 6,405 9,225
Other real estate owned $ 3,612 $ 4,573
----------- -----------
Total nonperforming assets $ 10,017 $ 13,798
=========== ===========
Accruing restructured loans 7,724 5,992
----------- -----------
Loans 90 days or more past due $ 328 $ 272
=========== ===========
Asset Quality Ratios
Nonperforming assets to loans net of unearned
income and deferred fees, plus other real estate
owned 1.64% 2.20%
Allowance for loans losses to total loans 1.33% 1.33%
Allowance for loan losses to nonperforming loans 126.57% 89.51%
Loans past due 90 days or more to loans net of
unearned income and deferred fees 0.05% 0.04%
CONTACTS: James G. Rakes Chairman, President & CEO (540) 951-6236 Email Contact David K. Skeens Treasurer & CFO (540) 951-6347 Email Contact
Source: National Bankshares, Inc.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Silexion Therapeutics (SLXN) Tops Q2 EPS by 793c
- Zeo Energy Corp (ZEO) Misses Q2 EPS by 7c
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
Dividend, FDIC, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
