-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KlZgPLH0gSBBQkqhOyQ37p4zfdibKrz8uDtnmjhkGOpcSaQ9PoQaqYRfWEp4ePW/ wpOgXJzopLpoCeCwy4mwCg== 0000796534-06-000036.txt : 20060721 0000796534-06-000036.hdr.sgml : 20060721 20060721161538 ACCESSION NUMBER: 0000796534-06-000036 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060630 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20060721 DATE AS OF CHANGE: 20060721 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL BANKSHARES INC CENTRAL INDEX KEY: 0000796534 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 541375874 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-15204 FILM NUMBER: 06974371 BUSINESS ADDRESS: STREET 1: PO BOX 90002 CITY: BLACKSBURG STATE: VA ZIP: 24062-9002 BUSINESS PHONE: 5405522011 MAIL ADDRESS: STREET 1: 100 SOUTH MAIN STREET STREET 2: PO BOX 90002 CITY: BLACKSBURG STATE: VA ZIP: 24062-9002 8-K 1 form8k.txt Microsoft Word 10.0.6764;UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ------------- Date of Report: July 21, 2006 Commission File Number: 0-15204 National Bankshares, Inc. - ------------------------------------------------------------------------------ (Exact name of Registrant as specified in its charter) Virginia 54-1375874 - --------------------- ----------------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 101 Hubbard Street Blacksburg, VA 24060 - ----------------------------- (Address of principal executive offices) Registrant's telephone number, including area code (540) 951-6300 -------------- Page 1 of 2 Pages ITEM 2.02. RESULTS OF OPERATIONS, FINANCIAL STATEMENTS AND EXHIBITS On July 21, 2006, National Bankshares, Inc. issued a press release announcing its financial results for the second quarter ended June 30, 2006. A copy of the press release is attached as Exhibit 99.1. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (a) Exhibits 99.1 National Bankshares, Inc. Press Release dated July 21, 2006. SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934 the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NATIONAL BANKSHARES, INC. Date: July 21, 2006 By: /s/ JAMES G. RAKES ------------------- ----------------------------- James G. Rakes Chairman President and CEO Page 2 of 2 Pages EX-99 2 ex99.txt SECOND QUARTER PRESS RELEASE FOR IMMEDIATE RELEASE CONTACTS: James G. Rakes, Chairman, President & CEO (540) 951-6236 J. Robert Buchanan, Treasurer (276) 979-0341 NATIONAL BANKSHARES, INC. REPORTS SECOND QUARTER EARNINGS BLACKSBURG, VA, JULY 21, 2006: National Bankshares, Inc. (Nasdaq Capital Market NKSH) today reported that it had second quarter net income of nearly $3.23 million, for an increase of 2.38% over net income in the same period in 2005. This translates to basic net income per share of $0.46. Year-to-date net income reached $6.23 million. At June 30, National Bankshares, Inc., a financial holding company with headquarters in Blacksburg, Virginia, had total assets of almost $843.41 million, an increase of 2.91% when compared with June 30, 2005. Net loans, at $490.16 million declined modestly from the $491.88 million reported last year at this time. The company's Chairman, President & CEO James G. Rakes commented, "Compression of the net interest margin because of the ongoing Federal Reserve Bank interest rate increases is still impacting earnings. However, we are very pleased with the quality of our loans and with the progress that we have made in containing non-interest expenses during this period. In May we completed the merger of our two community bank subsidiaries, and our goal is to continue to streamline operations to position our company for future success." National Bankshares, Inc. is the parent company of the 115 year-old National Bank of Blacksburg, which does business as National Bank from 26 locations in Southwest Virginia. The company has a non-bank subsidiary, National Bankshares Financial Services, Inc. which offers investments and insurance. Additional information about National Bankshares, Inc. is available at www.nationalbankshares.com. (unaudited tables follow) National Bankshares, Inc. And Subsidiaries (000's), except ratios and percent data Three months ending June 30, 2006 June 30, 2005 Change Selected Consolidated Data : - -------------------------------------------------------------------------------------------------------------------------- Interest income $11,849 $11,268 5.16% Interest expense 4,374 3,226 35.59% Net interest income 7,475 8,042 -7.05% Provision for loan losses 7 198 -96.46% Trust income 365 328 11.28% Other noninterest income 1,847 1,599 15.51% Salary and benefits 2,929 2,850 2.77% Occupancy expense 472 480 -1.67% Amortization of intangibles 285 283 0.71% Other noninterest expense 1,715 1,978 -13.30% Income taxes -1,052 -1,028 2.33% Net income $3,227 $3,152 2.38% Basic net income per share $0.46 $0.45 $0.0 - -------------------------------------------------------------------------------------------------------------------------- Daily averages: - -------------------------------------------------------------------------------------------------------------------------- Gross loans $494,387 $497,232 -0.57% Loans,net 488,039 490,660 -0.53% Total securities 271,677 263,965 2.92% Total deposits 738,669 723,047 2.16% Other borrowings 753 1,331 -43.43% Stockholders' equity 90,113 90,031 0.09% Cash and due from 15,830 15,190 4.21% Interest-earning assets 774,594 769,531 0.66% Interest-bearing liabilities 625,375 608,116 2.84% Intangible assets 16,640 17,838 -6.72% Total assets 834,745 817,805 2.07% - -------------------------------------------------------------------------------------------------------------------------- Financial ratios: Note (1) - -------------------------------------------------------------------------------------------------------------------------- Return on average assets 1.57% 1.55% 0.02 Return on average equity 14.52% 14.04% 0.48 Net interest margin 4.30% 4.58% -0.28 Average equity to average assets 10.80% 11.01% -0.21 - -------------------------------------------------------------------------------------------------------------------------- Note (1) Ratio change measured in bp Allowance for loan losses: - -------------------------------------------------------------------------------------------------------------------------- Beginning balance $5,418 $5,712 -5.15% Provision for losses 7 197 -96.45% Charge-offs -122 -331 -63.14% Recoveries 37 54 -31.48% Ending balance $5,340 $5,632 -5.18% - -------------------------------------------------------------------------------------------------------------------------- Year to Date June 30, 2006 June 30, 2005 Change Selected Consolidated Data : - -------------------------------------------------------------------------------------------------------------------------- Interest income $23,432 $22,303 5.06% Interest expense 8,612 6,269 37.37% Net interest income 14,820 16,034 -7.57% Provision for loan losses 24 388 -93.81% Trust income 745 736 1.22% Other noninterest income 3,526 2,959 19.16% Salary and benefits 5,840 5,712 2.24% Occupancy expense 1,005 959 4.80% Amortization of intangibles 569 549 3.64% Other noninterest expense 3,486 4,060 -14.14% Income taxes -1,937 -1,916 1.10% Net income $6,230 $6,145 1.38% Basic net income per share $0.89 $0.88 $0.01 Fully diluted net income per share $0.89 $0.87 $0.02 Dividends per share .46 .35 $0.11 Dividend payout ratio 40.53 40.80 -$0.27 Book value per share $13.29 12.80 $0.49 - -------------------------------------------------------------------------------------------------------------------------- Balance sheet at period-end: - -------------------------------------------------------------------------------------------------------------------------- Gross loans $496,476 $498,429 -0.39% Loans, net $490,160 $491,882 -0.35% Total securities 267,677 259,385 3.20% Cash and due From 19,037 15,078 26.26% Total deposits 746,581 725,997 2.84% Other borrowings 78 572 -86.36% Stockholders' equity 93,173 89,821 3.73% Intangible assets 16,546 17,681 -6.42% Total assets 843,407 819,574 2.91% - -------------------------------------------------------------------------------------------------------------------------- Daily averages: - -------------------------------------------------------------------------------------------------------------------------- Gross loans $492,905 $490,750 0.44% Loans,net 486,541 484,164 0.49% Total securities 272,151 260,545 4.45% Total deposits 740,298 715,477 3.47% Other borrowings 753 1,111 -32.22% Stockholders' equity 91,754 89,161 2.91% Cash and due from 16,493 15,066 9.47% Interest-earning assets 776,117 762,061 1.84% Interest-bearing liabilities 627,882 602,308 4.25% Intangible assets 16,734 17,501 -4.38% Total assets 837,315 810,157 3.35% - -------------------------------------------------------------------------------------------------------------------------- Financial ratios: Note (1) - -------------------------------------------------------------------------------------------------------------------------- Return on average assets 1.50% 1.53% -0.03 Return on average equity 13.69% 13.90% -0.21 Net interest margin 4.22% 4.65% -0.43 Efficiency ratio 52.96% 53.15% -0.19 Average equity to average assets 10.96% 11.01% -0.05 - -------------------------------------------------------------------------------------------------------------------------- Note (1) Ratio change measured in bp Allowance for loan losses: - -------------------------------------------------------------------------------------------------------------------------- Beginning balance $5,449 $5,729 -4.89% Provision for losses 24 387 -93.80% Charge-offs -209 -584 -64.21% Recoveries 76 100 -24.00% Ending balance $5,340 $5,632 -5.18% - -------------------------------------------------------------------------------------------------------------------------- Nonperforming assets: - -------------------------------------------------------------------------------------------------------------------------- Nonaccrual loans --- $252 -100.00% Restructured loans --- --- --- Total nonperforming loans Note (2) --- 252 -100.00% Other real estate owned 390 483 -19.25% Total nonperforming assets $390 $735 -46.94% - -------------------------------------------------------------------------------------------------------------------------- Asset quality ratios: Note (3) - -------------------------------------------------------------------------------------------------------------------------- Nonperforming loans to total loans --- 0.05% -100.00% Allowance for loan losses to total loans 1.08% 1.13% -5.23% Allowance for loan losses to nonperforming loans --- 2234.92% -100.00% - -------------------------------------------------------------------------------------------------------------------------- Note (2) Loans 90 days past due or more not included Note (3) Ratio change measured in bp
-----END PRIVACY-ENHANCED MESSAGE-----