FOR IMMEDIATE RELEASE
CONTACTS: James G. Rakes, President & CEO (540) 951-6236
J. Robert Buchanan, Treasurer (276) 979-0341
NATIONAL BANKSHARES, INC.
ANNOUNCES FIRST QUARTER EARNINGS
BLACKSBURG, VA, APRIL 15, 2005: National Bankshares, Inc. (Nasdaq SmallCap
Market: NKSH) today announced first quarter net income of $2.99 million, or
basic net income of $0.85 per share. This is a 1.11% increase over the $2.96
million, or $0.84 per share, that was earned in the first quarter of 2004. At
March 31, National Bankshares, Inc., the parent company of the National Bank of
Blacksburg, Bank of Tazewell County and National Bankshares Financial Services,
had total assets of $816.99 million, 15.37% higher than the $708.14 million on
March 31, 2004.
In making the earnings announcement, Chairman, President & CEO James G.
Rakes said, "We are pleased to maintain solid earnings for the quarter, despite
higher noninterest expense that is largely attributable to acquisitions that
were completed in the last half of 2004 and early in 2005. In late February,
Bank of Tazewell County completed the purchase of two bank offices. With this
purchase, the two banks operate a total of 27 offices throughout Southwest
Virginia, and we have increased market share in our primary service area."
National Bankshares, Inc. is a financial holding company with
headquarters in Blacksburg, Virginia. It has two community bank subsidiaries,
The National Bank, headquartered in Blacksburg, and Bank of Tazewell County,
with its main office in Tazewell, Virginia. The company also operates a non-bank
subsidiary, National Bankshares Financial Services, Inc., which does business as
National Bankshares Investment Services and National Bankshares Insurance
Services. National Bankshares, Inc. stock trades on the Nasdaq Stock Market
under the symbol "NKSH". Additional information is available on the company's
web site at www.nationalbankshares.com.
(unaudited tables follow)
National Bankshares, Inc. And Subsidiaries
(000's), except ratios
and percent data Three months Three months
ending ending Year-to-date Year-to-date
Selected Consolidated Data: March 31, 2005 March 31, 2004 Change March 31, 2005 March 31, 2004 Change
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Interest income $11,035 $9,797 12.64% $11,035 $9,797 12.64%
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Interest expense 3,043 2,599 17.08% 3,043 2,599 17.08%
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Net interest income 7,992 7,198 11.03% 7,992 7,198 11.03%
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Provision for loan losses 190 288 -34.03% 190 288 -34.03%
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Noninterest income 1,768 1,739 1.67% 1,768 1,739 1.67%
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Noninterest expense 5,689 4,820 18.03% 5,689 4,820 18.03%
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Income taxes -888 -869 2.19% -888 -869 2.19%
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Net income $2,993 $2,960 1.11% $2,993 $2,960 1.11%
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Basic net income per share $0.85 $0.84 $0.01 $0.85 $0.84 $0.01
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Fully diluted net income per share --- --- --- --- --- ---
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Dividends per share --- --- --- --- --- ---
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Dividend payout ratio --- --- --- --- --- ---
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Book value per share --- --- --- $25.22 24.11 $1.11
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Balance sheet at period-end:
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Loans, net --- --- --- $488,735 $406,894 20.11%
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Total securities --- --- --- 262,204 246,795 6.24%
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Total deposits --- --- --- 723,873 619,920 16.77%
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Other borrowings --- --- --- 431 77 459.74%
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Stockholders' equity --- --- --- 88,793 84,754 4.77%
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Total Assets --- --- --- 816,988 708,142 15.37%
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Daily averages:
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Loans,net $477,992 $403,213 18.55% $477,992 $403,213 18.55%
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Total securities 256,117 240,522 6.48% 256,117 240,522 6.48%
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Total deposits 707,254 623,655 13.40% 707,254 623,655 13.40%
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Other borrowings 204 135 51.11% 204 135 51.11%
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Stockholders' equity 88,109 83,290 5.79% 88,109 83,290 5.79%
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Interest-earning assets 753,895 676,478 11.44% 753,895 676,478 11.44%
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Interest-bearing liabilities 592,287 540,307 9.62% 592,287 540,307 9.62%
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Total Assets 802,861 710,067 13.07% 802,861 710,067 13.07%
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Financial ratios: Note (1)
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Return on average assets 1.51% 1.68% -0.17 1.51% 1.68% -0.17
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Return on average equity 13.78% 14.29% -0.51 13.78% 14.29% -0.51
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Net interest margin 4.71% 4.77% --- 4.71% 4.77% -0.06
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Efficiency ratio --- --- --- 54.12% 49.70% 4.42
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Average equity to average assets 10.97% 11.73% -0.76 10.97% 11.73% -0.76
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Note (1) Ratio change measured in b
Allowance for loan losses:
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Beginning balance $5,729 $5,369 6.71% $5,729 $5,369 6.71%
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Provision for losses 190 288 -34.03% 190 288 -34.03%
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Charge-offs -253 -285 -11.23% -253 -285 -11.23%
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Recoveries 46 48 -4.17% 46 48 -4.17%
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Acquisition of C.N.B. 0 --- 100.00% 0 --- 100.00%
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Ending balance $5,712 $5,420 5.39% $5,712 $5,420 5.39%
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Nonperforming assets:
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Nonaccrual loans --- --- --- $347 $324 7.10%
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Restructured loans --- --- --- --- --- ---
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Total nonperforming loans --- --- --- 347 324 7.10%
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Other real estate owned --- --- --- 715 1,470 -51.36%
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Total nonperforming assets --- --- --- $1,062 $1,794 -40.80%
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Asset quality ratios: Note (2)
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Nonperforming loans to total loans --- --- --- 0.07% 0.08% -0.01
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Allowance for loan losses to
total loans --- --- --- 1.16% 1.31% -0.15
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Allowance for loan losses
to nonperforming loans --- --- --- 1646.11% 1672.84% -26.73
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Note (2) Ratio change measured in bp