-----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, Fab6jmb/22F0KycRylcAdtpDyYh9yCSsCKjijj6X5mIaU93aCPt2kQ81uTYcCkUv QuKcvvLwdv/F25qZRT1x6Q== 0000796534-06-000038.txt : 20061013 0000796534-06-000038.hdr.sgml : 20061013 20061013172207 ACCESSION NUMBER: 0000796534-06-000038 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060930 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20061013 DATE AS OF CHANGE: 20061013 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: 061144854 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 11.0.5604;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: October 13, 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 October 13, 2006, National Bankshares, Inc. issued a press release announcing its financial results for the third quarter ended September 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 October 13, 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: October 13, 2006 By: /s/ JAMES G. RAKES ---------------------- ------------------------------------- James G. Rakes Chairman President and CEO Page 2 of 2 Pages EX-99 2 ex99.txt THIRD QUARTER 2006 PRESS RELASE FOR IMMEDIATE RELEASE CONTACTS: James G. Rakes, Chairman, President & CEO (540) 951-6236 J. Robert Buchanan, Treasurer (276) 979-0341 NATIONAL BANKSHARES, INC. ANNOUNCES HIGHER THIRD QUARTER EARNINGS BLACKSBURG, VA, October 13, 2006: National Bankshares, Inc. (Nasdaq Capital Market: NKSH) announced today that it had net income for the third quarter of $3.2 million. This is an increase of 4.8% over the same quarter in 2005, and it translates to basic net income per share of $0.46. Year-to-date net income at September 30 totaled $9.43 million, an increase of 2.5% over the same period last year, and basic net income per share was $1.35. At the end of the third quarter, the financial holding company headquartered in Blacksburg, Virginia, had total assets of nearly $845 million. James G. Rakes, National Bankshares' Chairman, President & CEO, noted that the company's earnings continue to experience the effects of compression of the net interest margin. "Interest income earned primarily from loans has lagged behind the increased interest paid on bank deposits, because loans tend to re-price at a slower pace than deposits." Mr. Rakes said that he is encouraged by indications from the Federal Reserve that it is changing its long program of regular rate increases. National Bankshares is the parent company of 115 year-old National Bank of Blacksburg, which does business as National Bank in 26 locations throughout Southwest Virginia. The company has a non-bank subsidiary, National Bankshares Financial Services, Inc. that offers investments and insurance. Additional information about National Bankshares, Inc. is available at www.nationalbankshares.com. (unauditied tables follow)
National Bankshares, Inc. And Subsidiaries (000's), except ratios and percent data Three months ending September 30, 2006 September 30, 2005 Change Selected Consolidated Data : - --------------------------------------------------------------------------------------------------------------------- Interest income $12,042 $11,483 4.87% Interest expense 4,691 3,816 22.93% Net interest income 7,351 7,667 -4.12% Provision for loan losses 16 169 -90.53% Trust income 314 326 -3.68% Other noninterest income 1,918 1,566 22.48% Salary and benefits 2,866 2,822 1.56% Occupancy expense 474 491 -3.46% Amortization of intangibles 284 283 0.35% Other noninterest expense 1,772 1,783 -0.62% Income taxes -970 -957 1.36% Net income $3,201 $3,054 4.81% Basic net income per share $0.46 $0.44 $0.02 - --------------------------------------------------------------------------------------------------------------------- Daily averages: - --------------------------------------------------------------------------------------------------------------------- Gross loans $495,539 $497,152 -0.32% Loans,net 489,243 490,614 -0.28% Total securities 267,339 261,951 2.06% Total deposits 732,009 728,295 0.51% Other borrowings 582 70 731.43% Stockholders' equity 95,443 91,071 4.80% Cash and due from 15,113 16,077 -6.00% Interest-earning assets 771,234 775,015 -0.49% Interest-bearing liabilities 627,895 615,276 2.05% Intangible assets 16,424 17,554 -6.44% Total assets 832,157 823,188 1.09% - --------------------------------------------------------------------------------------------------------------------- Financial ratios: Note (1) - --------------------------------------------------------------------------------------------------------------------- Return on average assets 1.53% 1.51% 0.02 Return on average equity 13.31% 13.69% -0.38 Net interest margin 4.04% 4.25% -0.21 Average equity to average assets 11.47% 11.06% 0.41 - --------------------------------------------------------------------------------------------------------------------- Note (1) Ratio change measured in bp Allowance for loan losses: - --------------------------------------------------------------------------------------------------------------------- Beginning balance $5,340 $5,632 -5.18% Provision for losses 16 169 -90.53% Charge-offs -136 -227 -40.09% Recoveries 32 46 -30.43% Ending balance $5,252 $5,620 -6.55% - --------------------------------------------------------------------------------------------------------------------- Year to Date September 30, 2006 September 30, 2005 Change Selected Consolidated Data : - --------------------------------------------------------------------------------------------------------------------- Interest income $35,474 $33,786 5.00% Interest expense 13,303 10,085 31.91% Net interest income 22,171 23,701 -6.46% Provision for loan losses 40 557 -92.82% Trust income 1,059 1,062 -0.28% Other noninterest income 5,444 4,525 20.31% Salary and benefits 8,706 8,534 2.02% Occupancy expense 1,479 1,450 2.00% Amortization of intangibles 853 832 2.52% Other noninterest expense 5,258 5,843 -10.01% Income taxes -2,907 -2,873 1.18% Net income $9,431 $9,199 2.52% Basic net income per share $1.35 $1.31 $0.04 Fully diluted net income per share $1.34 $1.30 $0.04 Dividends per share .46 .35 $0.11 Dividend payout ratio 26.77 26.52 $0.25 Book value per share $14.00 13.20 $0.80 - --------------------------------------------------------------------------------------------------------------------- Balance sheet at period-end: - --------------------------------------------------------------------------------------------------------------------- Gross loans $498,626 $499,787 -0.23% Loans, net $492,353 $493,240 -0.18% Total securities 266,740 263,943 1.06% Cash and due From Banks 14,598 17,114 -14.70% Total deposits 742,793 732,177 1.45% Other borrowings 76 623 -87.80% Stockholders' equity 97,803 92,670 5.54% Intangible assets 16,260 17,397 -6.54% Total assets 844,997 828,907 1.94% - --------------------------------------------------------------------------------------------------------------------- Daily averages: - --------------------------------------------------------------------------------------------------------------------- Gross loans $491,829 $492,908 -0.22% Loans,net 485,488 486,338 -0.17% Total securities 270,524 256,713 5.38% Total deposits 736,511 719,989 2.29% Other borrowings 495 758 -34.70% Stockholders' equity 94,499 85,343 10.73% Cash and due from 16,028 15,769 1.64% Interest-earning assets 772,356 762,072 1.35% Interest-bearing liabilities 626,744 606,678 3.31% Intangible assets 16,687 17,519 -4.75% Total assets 835,494 810,292 3.11% - --------------------------------------------------------------------------------------------------------------------- Financial ratios: Note (1) - --------------------------------------------------------------------------------------------------------------------- Return on average assets 1.51% 1.51% 0.00 Return on average equity 13.34% 13.69% -0.35 Net interest margin 4.17% 4.53% -0.36 Efficiency ratio 53.08% 52.84% 0.24 Average equity to average assets 11.31% 10.53% 0.78 - --------------------------------------------------------------------------------------------------------------------- Note (1) Ratio change measured in bp Allowance for loan losses: - --------------------------------------------------------------------------------------------------------------------- Beginning balance $5,449 $5,729 -4.89% Provision for losses 40 557 -92.82% Charge-offs -345 -812 -57.51% Recoveries 108 146 -26.03% Ending balance $5,252 $5,620 -6.55% - --------------------------------------------------------------------------------------------------------------------- Nonperforming assets: - --------------------------------------------------------------------------------------------------------------------- Nonaccrual loans 4 $251 -100.00% Total nonperforming loans Note (2) 4 251 -100.00% Other real estate owned 390 429 -9.09% Total nonperforming assets $394 $680 -42.06% - --------------------------------------------------------------------------------------------------------------------- Asset quality ratios: Note (3) - --------------------------------------------------------------------------------------------------------------------- Nonperforming loans to total loans 0.001% 0.05% -98.42% Allowance for loan losses to total loans 1.06% 1.13% -7.45% Allowance for loan losses to nonperforming loans 1313.00% 2239.04% -41.36% - ---------------------------------------------------------------------------------------------------------------------
Note (2) Loans 90 days past due or more not included Note (3) Ratio change measured in bp -----END PRIVACY-ENHANCED MESSAGE-----