FOR IMMEDIATE RELEASE
CONTACTS: | JAMES G. RAKES, CHAIRMAN, PRESIDENT & CEO |
| (540) 951-6236 | jrakes@nbbank.com |
| DAVID K. SKEENS, TREASURER & CFO |
| (540) 951-6347 | dskeens@nbbank.com |
NATIONAL BANKSHARES, INC.
REPORTS HIGHER FIRST QUARTER EARNINGS
BLACKSBURG, VA, APRIL 15, 2009: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today announced higher earnings for the first quarter ended March 31, 2009. The Company had net income of nearly $3.39 million, up by 6.48% over the $3.18 million reported for the quarter ended March 31, 2008. This translates to basic net income per share of $0.49, as compared with $0.46 per share last year. Net loans at the end of the first quarter were at $568.60 million, an 8.86% increase over the $522.34 million on March 31 last year. National Bankshares ended the first quarter with total assets of nearly $979.79 million, a 7.47% increase over the March 31, 2008 total of $911.72 million.
The Company’s Chairman, President & CEO, James G. Rakes said, “During the last quarter, our conservative approach to banking continued to serve our communities and stockholders well. Because we have strong capital levels and good liquidity, we have been able to continue making loans throughout the economic downturn. As traditional community bankers we have the advantage of knowing our customers and our markets. This helps us make solid loans, and total nonperforming loans have increased just 1.36%, from $1.32 million at March 31, 2008 to $1.34 million at the end of the first quarter this year. The Company has not fully escaped the effects of the current recession, and we have seen the total of other real estate owned grow to $1.92 million at March 31, 2009. However, even this number is modest when compared with our peers. In order to account for growth in the loan portfolio and to prepare for any difficulties that might be on the horizon if the downturn is extended, we have taken the opportunity to make prudent additions to the allowance for loan losses. At the end of the first quarter of 2009, the allowance stood at nearly $6.12 million, a 17.02% increase over the balance at March 31, 2008.” Mr. Rakes added, “At National Bankshares, we are committed to community banking, and our subsidiary, National Bank, has been doing business in good and bad times since 1891. We plan to work hard to continue this safe and sound tradition.”
National Bankshares, Inc., a financial holding company, is the parent of the National Bank of Blacksburg, which does business as National Bank from 26 offices throughout Southwest Virginia. National Bank offers a full range of banking products and services, including Trust services. The Company, which is headquartered in Blacksburg, Virginia has a financial services subsidiary doing business in the same market as National Bankshares Investment Services and National Bankshares Insurance Services. Company 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
(000’s), except ratios and percent data |
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Three months ending |
| March 31, 2009 |
| March 31, 2008 |
| Change |
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Selected consolidated data: |
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Interest income |
| $ | 12,578 |
| $ | 12,711 |
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| -1.05 | % |
Interest expense |
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| 4,412 |
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| 5,407 |
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| -18.40 | % |
Net interest income |
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| 8,166 |
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| 7,304 |
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| 11.80 | % |
Provision for loan losses |
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| 370 |
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| 100 |
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| 270.00 | % |
Trust income |
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| 276 |
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| 303 |
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| -8.91 | % |
Other noninterest income |
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| 1,831 |
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| 1,993 |
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| -8.13 | % |
Salary and benefits |
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| 2,831 |
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| 2,857 |
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| -0.91 | % |
Occupancy expense |
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| 469 |
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| 456 |
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| 2.85 | % |
Amortization of intangibles |
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| 278 |
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| 284 |
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| -2.11 | % |
Other noninterest expense |
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| 2,052 |
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| 1,860 |
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| 10.32 | % |
Income taxes |
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| -886 |
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| -862 |
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| 2.78 | % |
Net income |
| $ | 3,387 |
| $ | 3,181 |
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| 6.48 | % |
Basic net income per share |
| $ | 0.49 |
| $ | 0.46 |
| $ | 0.03 |
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Daily averages: |
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Gross loans |
| $ | 574,246 |
| $ | 525,080 |
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| 9.36 | % |
Loans, net |
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| 567,190 |
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| 518,794 |
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| 9.33 | % |
Total securities |
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| 286,479 |
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| 275,887 |
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| 3.84 | % |
Total deposits |
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| 839,828 |
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| 774,962 |
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| 8.37 | % |
Other borrowings |
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| 53 |
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| 63 |
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| -15.87 | % |
Stockholders’ equity |
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| 113,111 |
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| 107,036 |
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| 5.68 | % |
Cash and due from |
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| 11,811 |
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| 12,749 |
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| -7.36 | % |
Interest-earning assets |
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| 901,837 |
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| 833,802 |
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| 8.16 | % |
Interest-bearing liabilities |
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| 730,963 |
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| 666,590 |
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| 9.66 | % |
Intangible assets |
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| 13,601 |
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| 14,717 |
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| -7.58 | % |
Total assets |
| $ | 960,824 |
| $ | 889,104 |
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| 8.07 | % |
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Financial ratios: Note (1) |
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Return on average assets |
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| 1.43 | % |
| 1.44 | % |
| -0.01 | % |
Return on average equity |
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| 12.14 | % |
| 11.95 | % |
| 0.19 | % |
Net interest margin |
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| 4.08 | % |
| 3.93 | % |
| 0.15 | % |
Efficiency ratio |
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| 50.34 | % |
| 52.33 | % |
| -1.99 | % |
Average equity to average assets |
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| 11.77 | % |
| 12.04 | % |
| -0.27 | % |
Note (1) Ratio change measured in bp |
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Allowance for loan losses: |
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Beginning balance |
| $ | 5,858 |
| $ | 5,219 |
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| 12.24 | % |
Provision for losses |
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| 370 |
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| 100 |
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| 270.00 | % |
Charge-offs |
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| -123 |
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| -152 |
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| -19.08 | % |
Recoveries |
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| 13 |
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| 61 |
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| -78.69 | % |
Ending balance |
| $ | 6,118 |
| $ | 5,228 |
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| 17.02 | % |
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Year to Date |
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| March 31, 2009 |
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| March 31, 2008 |
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| Change |
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Selected consolidated data: |
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Interest income |
| $ | 12,578 |
| $ | 12,711 |
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| -1.05 | % |
Interest expense |
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| 4,412 |
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| 5,407 |
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| -18.40 | % |
Net interest income |
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| 8,166 |
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| 7,304 |
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| 11.80 | % |
Provision for loan losses |
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| 370 |
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| 100 |
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| 270.00 | % |
Trust income |
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| 276 |
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| 303 |
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| -8.91 | % |
Other noninterest income |
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| 1,831 |
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| 1,993 |
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| -8.13 | % |
Salary and benefits |
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| 2,831 |
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| 2,857 |
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| -0.91 | % |
Occupancy expense |
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| 469 |
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| 456 |
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| 2.85 | % |
Amortization of intangibles |
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| 278 |
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| 284 |
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| -2.11 | % |
Other noninterest expense |
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| 2,052 |
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| 1,860 |
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| 10.32 | % |
Income taxes |
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| -886 |
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| -862 |
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| 2.78 | % |
Net income |
| $ | 3,387 |
| $ | 3,181 |
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| 6.48 | % |
Basic net income per share |
| $ | 0.49 |
| $ | 0.46 |
| $ | 0.03 |
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Fully diluted net income per share |
| $ | 0.49 |
| $ | 0.46 |
| $ | 0.03 |
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Dividends per share |
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| --- |
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| --- |
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| --- |
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Dividend payout ratio |
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| --- |
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| --- |
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| --- |
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Book value per share |
| $ | 16.39 |
| $ | 15.72 |
| $ | 0.67 |
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Balance sheet at period-end: |
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Gross loans |
| $ | 575,787 |
| $ | 528,684 |
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| 8.91 | % |
Loans, net |
| $ | 568,600 |
| $ | 522,343 |
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| 8.86 | % |
Total securities |
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| 300,491 |
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| 277,492 |
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| 8.29 | % |
Cash and due from |
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| 13,253 |
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| 18,742 |
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| -29.29 | % |
Total deposits |
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| 857,829 |
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| 795,085 |
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| 7.89 | % |
Other borrowings |
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| 51 |
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| 61 |
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| -16.39 | % |
Stockholders’ equity |
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| 113,556 |
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| 108,957 |
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| 4.22 | % |
Intangible assets |
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| 13,441 |
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| 14,554 |
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| -7.65 | % |
Total assets |
| $ | 979,787 |
| $ | 911,721 |
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| 7.47 | % |
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Daily averages: |
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Gross loans |
| $ | 574,246 |
| $ | 525,080 |
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| 9.36 | % |
Loans, net |
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| 567,190 |
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| 518,794 |
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| 9.33 | % |
Total securities |
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| 286,479 |
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| 275,887 |
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| 3.84 | % |
Total deposits |
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| 839,828 |
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| 774,962 |
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| 8.37 | % |
Other borrowings |
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| 53 |
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| 63 |
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| -15.87 | % |
Stockholders’ equity |
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| 113,111 |
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| 107,036 |
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| 5.68 | % |
Cash and due from |
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| 11,811 |
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| 12,749 |
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| -7.36 | % |
Interest-earning assets |
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| 901,837 |
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| 833,802 |
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| 8.16 | % |
Interest-bearing liabilities |
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| 730,963 |
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| 666,590 |
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| 9.66 | % |
Intangible assets |
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| 13,601 |
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| 14,717 |
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| -7.58 | % |
Total assets |
| $ | 960,824 |
| $ | 889,104 |
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| 8.07 | % |
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Financial ratios: Note (1) |
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Return on average assets |
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| 1.43 | % |
| 1.44 | % |
| -0.01 | % |
Return on average equity |
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| 12.14 | % |
| 11.95 | % |
| 0.19 | % |
Net interest margin |
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| 4.08 | % |
| 3.93 | % |
| 0.15 | % |
Efficiency ratio |
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| 50.34 | % |
| 52.33 | % |
| -1.99 | % |
Average equity to average assets |
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| 11.77 | % |
| 12.04 | % |
| -0.27 | % |
Note (1) Ratio change measured in bp |
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Allowance for loan losses: |
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Beginning balance |
| $ | 5,858 |
| $ | 5,219 |
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| 12.24 | % |
Provision for losses |
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| 370 |
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| 100 |
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| 270.00 | % |
Charge-offs |
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| -123 |
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| -152 |
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| -19.08 | % |
Recoveries |
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| 13 |
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| 61 |
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| -78.69 | % |
Ending balance |
| $ | 6,118 |
| $ | 5,228 |
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| 17.02 | % |
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Nonperforming assets: |
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Nonaccrual loans |
| $ | 1,337 |
| $ | 1,319 |
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| 1.36 | % |
Restructured loans |
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| --- |
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| --- |
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Total nonperforming loans Note (2) |
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| 1,337 |
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| 1,319 |
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| 1.36 | % |
Other real estate owned |
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| 1,918 |
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| 270 |
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| 610.37 | % |
Total nonperforming assets |
| $ | 3,255 |
| $ | 1,589 |
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| 104.85 | % |
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Asset quality ratios: Note (3) |
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Nonperforming loans to total loans |
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| 0.23 | % |
| 0.25 | % |
| --- |
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Allowance for loan losses to total loans |
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| 1.06 | % |
| 0.99 | % |
| --- |
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Allowance for loan losses to nonperforming loans |
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| 457.59 | % |
| 396.36 | % |
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Note (2) Loans 90 days past due or more not included |
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Note (3) Ratio change measured in bp |
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