EX-99 2 q32007_earnings.htm PRESS RELEASE


 

FOR IMMEDIATE RELEASE

 

CONTACTS:

James G. Rakes, President & CEO (540) 951-6236

 

J. Robert Buchanan

(276) 979-0341

 

 

NATIONAL BANKSHARES, INC.

REPORTS THIRD QUARTER EARNINGS

 

BLACKSBURG, VA, OCTOBER 18, 2007: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today reported that it posted third quarter net income of nearly $3.2 million. This translates to basic net income per share of $0.46. Year-to-date net income totaled $9.45 million, slightly higher than the $9.43 million reported at September 30, 2006. National Bankshares, Inc., a financial holding company with headquarters in Blacksburg, Virginia, had net loans of $509.20 million at the end of the third quarter, an increase of 3.42% over net loans in the same period last year. Total assets on September 30 were $861.89 million, up by 2% over 2006.

 

The Company’s Chairman, President & CEO James G. Rakes commented, “I am pleased to report that National Bankshares’ continued focus on the basics of community banking has allowed us to maintain a solid level of earnings. It is our lending philosophy that sound credit underwriting benefits both the customer and the bank, so we have never been involved in sub-prime lending. Loan quality remains good. And this quarter’s addition to the allowance for loan losses is the first significant contribution in well over a year.” Mr. Rakes continued, “As we deal with future challenges, we intend to continue to offer our customers a full range of financial products and services, with the personal attention they deserve.”

 

National Bankshares, Inc. is the parent company of National Bank, a 116 year-old community bank with 26 office locations in Southwest Virginia. The Company also has a non-bank financial services subsidiary in the same market 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 ending

 

September 30, 2007

 

September 30, 2006

 

Change

 

 

 

 

 

 

 

 

 

Selected Consolidated Data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,693

 

$

12,042

 

 

5.41

%

Interest expense

 

 

5,442

 

 

4,691

 

 

16.01

%

Net interest income

 

 

7,251

 

 

7,351

 

 

-1.36

%

Provision for loan losses

 

 

119

 

 

16

 

 

643.75

%

Trust income

 

 

286

 

 

314

 

 

-8.92

%

Other noninterest income

 

 

1,839

 

 

1,918

 

 

-4.12

%

Salary and benefits

 

 

2,621

 

 

2,866

 

 

-8.55

%

Occupancy expense

 

 

419

 

 

474

 

 

-11.60

%

Amortization of intangibles

 

 

284

 

 

284

 

 

0.00

%

Other noninterest expense

 

 

1,776

 

 

1,772

 

 

0.23

%

Income taxes

 

 

-961

 

 

-970

 

 

-0.93

%

Net income

 

$

3,196

 

$

3,201

 

 

-0.16

%

Basic net income per share

 

$

0.46

 

$

0.46

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

510,811

 

$

495,539

 

 

3.08

%

Loans,net

 

 

504,725

 

 

489,243

 

 

3.16

%

Total securities

 

 

281,921

 

 

267,339

 

 

5.45

%

Total deposits

 

 

751,896

 

 

732,009

 

 

2.72

%

Other borrowings

 

 

134

 

 

528

 

 

-74.62

%

Stockholders’ equity

 

 

100,527

 

 

95,443

 

 

5.33

%

Cash and due from

 

 

13,021

 

 

15,113

 

 

-13.84

%

Interest-earning assets

 

 

800,998

 

 

771,234

 

 

3.86

%

Interest-bearing liabilities

 

 

641,988

 

 

627,895

 

 

2.24

%

Intangible assets

 

 

15,286

 

 

16,424

 

 

-6.93

%

Total assets

 

 

859,736

 

 

832,157

 

 

3.31

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.47

%

 

1.53

%

 

-0.06

 

Return on average equity

 

 

12.61

%

 

13.31

%

 

-0.70

 

Net interest margin

 

 

3.98

%

 

4.04

%

 

-0.06

 

Average equity to average assets

 

 

11.69

%

 

11.47

%

 

0.22

 

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,000

 

$

5,340

 

 

-6.37

%

Provision for losses

 

 

119

 

 

16

 

 

643.75

%

Charge-offs

 

 

-94

 

 

-136

 

 

-30.88

%

Recoveries

 

 

18

 

 

32

 

 

-43.75

%

Ending balance

 

$

5,043

 

$

5,252

 

 

-3.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

September 30, 2007

 

 

September 30, 2006

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected Consolidated Data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

37,918

 

$

35,474

 

 

6.89

%

Interest expense

 

 

16,228

 

 

13,303

 

 

21.99

%

Net interest income

 

 

21,690

 

 

22,171

 

 

-2.17

%

Provision for loan losses

 

 

129

 

 

40

 

 

222.50

%

Trust income

 

 

1,019

 

 

1,059

 

 

-3.78

%

Other noninterest income

 

 

5,544

 

 

5,444

 

 

1.84

%

Salary and benefits

 

 

8,240

 

 

8,706

 

 

-5.35

%

Occupancy expense

 

 

1,316

 

 

1,479

 

 

-11.02

%

Amortization of intangibles

 

 

853

 

 

853

 

 

0.00

%

Other noninterest expense

 

 

5,452

 

 

5,258

 

 

3.69

%

Income taxes

 

 

-2,811

 

 

-2,907

 

 

-3.30

%

Net income

 

$

9,452

 

$

9,431

 

 

0.22

%

Basic net income per share

 

$

1.36

 

$

1.35

 

$

0.01

 

Fully diluted net income per share

 

$

1.35

 

$

1.34

 

$

0.01

 

Dividends per share

 

$

0.37

 

$

0.36

 

$

0.01

 

Dividend payout ratio

 

 

27.34

 

 

26.77

 

$

0.57

 

Book value per share

 

$

14.77

 

 

14.00

 

$

0.77

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet at period-end:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

515,350

 

$

498,626

 

 

3.35

%

Loans, net

 

$

509,203

 

$

492,353

 

 

3.42

%

Total securities

 

 

280,774

 

 

266,740

 

 

5.26

%

Cash and due From

 

 

12,058

 

 

14,598

 

 

-17.40

%

Total deposits

 

 

751,981

 

 

742,793

 

 

1.24

%

Other borrowings

 

 

66

 

 

76

 

 

-13.16

%

Stockholders’ equity

 

 

102,770

 

 

97,803

 

 

5.08

%

Intangible assets

 

 

15,123

 

 

16,260

 

 

-6.99

%

Total assets

 

 

861,889

 

 

844,997

 

 

2.00

%

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

507,921

 

$

491,829

 

 

3.27

%

Loans,net

 

 

501,786

 

 

485,488

 

 

3.36

%

Total securities

 

 

284,675

 

 

270,524

 

 

5.23

%

Total deposits

 

 

757,185

 

 

736,511

 

 

2.81

%

Other borrowings

 

 

814

 

 

495

 

 

64.44

%

Stockholders’ equity

 

 

99,588

 

 

94,499

 

 

5.39

%

Cash and due from

 

 

13,971

 

 

16,028

 

 

-12.83

%

Interest-earning assets

 

 

804,839

 

 

772,356

 

 

4.21

%

Interest-bearing liabilities

 

 

650,181

 

 

626,744

 

 

3.74

%

Intangible assets

 

 

15,570

 

 

16,687

 

 

-6.69

%

Total assets

 

 

864,570

 

 

835,494

 

 

3.48

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.46

%

 

1.51

%

 

-0.05

 

Return on average equity

 

 

12.69

%

 

13.34

%

 

-0.65

 

Net interest margin

 

 

4.00

%

 

4.17

%

 

-0.17

 

Efficiency ratio

 

 

51.73

%

 

53.08

%

 

-1.35

 

 

 

 

Average equity to average assets

 

 

11.52

%

 

11.31

%

 

0.21

 

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,157

 

$

5,449

 

 

-5.36

%

Provision for losses

 

 

129

 

 

40

 

 

222.50

%

Charge-offs

 

 

-319

 

 

-345

 

 

-7.54

%

Recoveries

 

 

76

 

 

108

 

 

-29.63

%

Ending balance

 

$

5,043

 

$

5,252

 

 

-3.98

%

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

1,208

 

$

4

 

 

-100.00

%

Total nonperforming loans Note (2)

 

 

1,208

 

 

4

 

 

-100.00

%

Other real estate owned

 

 

192

 

 

390

 

 

-50.77

%

Total nonperforming assets

 

$

1,400

 

$

394

 

 

255.33

%

 

 

 

 

 

 

 

 

 

 

 

Asset quality ratios: Note (3)

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.235

%

 

---

 

 

---

 

Allowance for loan losses to total loans

 

 

0.98

%

 

1.06

%

 

-7.93

%

Allowance for loan losses to nonperforming loans

 

 

417.47

%

 

1313.00

%

 

---

 

Note (2) Loans 90 days past due or more not included

 

 

 

 

 

 

 

 

 

 

Note (3) Ratio change measured in bp