EX-99 2 press_release.htm 2007 EARNINGS 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. RELEASES EARNINGS FOR 2007

 

BLACKSBURG, VA, FEBRUARY 7, 2008: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today reported 2007 net income of nearly $12.68 million, up slightly over the $12.63 million earned in 2006. Because of higher earnings and the Company’s previously announced stock buyback program, basic net income per share increased from $1.80 in 2006 to $1.82 in 2007. Total assets at December 31, 2007 were nearly $887.65 million, an increase of 2.24% over the same period in 2006. Net loans grew to $518.44 million, an increase of 4.63% from 2006. For 2007, National Bankshares, Inc. had a return on average assets of 1.46% and a return on average equity of 12.60%.

 

For the three months ending December 31, 2007, the Company posted net income of $3.22 million, a small increase over the $3.20 million earned in the fourth quarter of 2006. This translates to basic net income per share of $0.46 for both periods.

 

James G. Rakes, National Bankshares’ Chairman, President & CEO, commented, “In these interesting times, I am pleased to report another solid year for National Bankshares. We were challenged with compression of the net interest margin during 2007, and we worked to overcome that challenge by adding quality loans to our portfolio and by controlling overhead costs. The 2006 merger of our two bank subsidiaries resulted in nice savings for 2007 in both occupancy expense and salary and benefits costs. Loan quality remained very good when viewed from a historical perspective. We did, however, make regular additions to the provision for loan losses during the year, both because of growth in net loans and because of an increase in total nonperforming assets from 2006’s very low level.” Mr. Rakes went on to say, “We continued to invest in the Company’s technology infrastructure last year. We believe that it is important to have a solid platform from which to offer customers a full range of products and services. But we think it is even more important for our customers to have a trusted person to help them with their financial transactions. It is this relationship-based business philosophy that has guided us since the founding of National Bank in 1891 and will continue to guide us in the future.”

 

National Bankshares, Inc. is a financial holding company that is the parent of the National Bank of Blacksburg, which does business as National Bank from 26 office locations throughout Southwest Virginia. The Company, which is headquartered in Blacksburg, Virginia, also has a financial services subsidiary, National Bankshares Financial Services, Inc., 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 about National Bankshares, Inc. is available on its website at www.nationalbankshares.com.

 

 

(Unaudited tables follow)

 

 

 

National Bankshares, Inc.And Subsidiaries

(000's), except ratios and percent data

 

Three months ending

 

December 31, 2007

 

December 31, 2006

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected Consolidated Data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,851

 

$

12,427

 

 

3.41

%

Interest expense

 

 

5,517

 

 

5,261

 

 

4.87

%

Net interest income

 

 

7,334

 

 

7,166

 

 

2.34

%

Provision for loan losses

 

 

294

 

 

9

 

 

3166.67

%

Trust income

 

 

314

 

 

469

 

 

-33.05

%

Other noninterest income

 

 

1,883

 

 

1,830

 

 

2.90

%

Salary and benefits

 

 

2,533

 

 

2,760

 

 

-8.22

%

Occupancy expense

 

 

427

 

 

478

 

 

-10.67

%

Amortization of intangibles

 

 

285

 

 

284

 

 

0.35

%

Other noninterest expense

 

 

1,850

 

 

1,852

 

 

-0.11

%

Income taxes

 

 

-919

 

 

-881

 

 

4.31

%

Net income

 

$

3,223

 

$

3,201

 

 

0.69

%

Basic net income per share

 

$

0.46

 

$

0.46

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

520,992

 

$

498,366

 

 

4.54

%

Loans,net

 

 

514,814

 

 

492,104

 

 

4.61

%

Total securities

 

 

277,008

 

 

272,644

 

 

1.60

%

Total deposits

 

 

763,023

 

 

751,639

 

 

1.51

%

Other borrowings

 

 

65

 

 

78

 

 

-16.67

%

Stockholders' equity

 

 

103,677

 

 

97,741

 

 

6.07

%

Cash and due from

 

 

13,870

 

 

15,795

 

 

-12.19

%

Interest-earning assets

 

 

816,169

 

 

792,919

 

 

2.93

%

Interest-bearing liabilities

 

 

651,162

 

 

646,673

 

 

0.69

%

Intangible assets

 

 

15,000

 

 

16,138

 

 

-7.05

%

Total assets

 

 

874,400

 

 

854,040

 

 

2.38

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.46

%

 

1.49

%

 

-0.03

 

Return on average equity

 

 

12.33

%

 

12.99

%

 

-0.66

 

Net interest margin

 

 

3.95

%

 

4.06

%

 

-0.11

 

Average equity to average assets

 

 

11.86

%

 

11.44

%

 

0.41

 

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,043

 

$

5,252

 

 

-3.98

%

Provision for losses

 

 

294

 

 

9

 

 

3166.67

%

Charge-offs

 

 

-152

 

 

-114

 

 

33.33

%

Recoveries

 

 

34

 

 

10

 

 

240.00

%

Ending balance

 

$

5,219

 

$

5,157

 

 

1.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

December 31, 2007

 

 

December 31, 2006

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected Consolidated Data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

50,769

 

$

47,901

 

 

5.99

%

Interest expense

 

 

21,745

 

 

18,564

 

 

17.14

%

Net interest income

 

 

29,024

 

 

29,337

 

 

-1.07

%

Provision for loan losses

 

 

423

 

 

49

 

 

763.27

%

Trust income

 

 

1,333

 

 

1,528

 

 

-12.76

%

Other noninterest income

 

 

7,427

 

 

7,274

 

 

2.10

%

Salary and benefits

 

 

10,773

 

 

11,466

 

 

-6.04

%

Occupancy expense

 

 

1,743

 

 

1,957

 

 

-10.94

%

Amortization of intangibles

 

 

1,138

 

 

1,137

 

 

0.09

%

Other noninterest expense

 

 

7,302

 

 

7,110

 

 

2.70

%

Income taxes

 

 

-3,730

 

 

-3,788

 

 

-1.53

%

Net income

 

$

12,675

 

$

12,632

 

 

0.34

%

Basic net income per share

 

$

1.82

 

$

1.80

 

$

0.02

 

Fully diluted net income per share

 

$

1.82

 

$

1.80

 

$

0.02

 

Dividends per share

 

$

0.73

 

$

0.71

 

$

0.02

 

Dividend payout ratio

 

 

41.80

 

 

40.44

 

$

1.36

 

Book value per share

 

$

15.07

 

 

13.86

 

$

1.21

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet at period-end:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

524,773

 

$

501,702

 

 

4.60

%

Loans, net

 

$

518,435

 

$

495,486

 

 

4.63

%

Total securities

 

 

273,343

 

 

285,489

 

 

-4.25

%

Cash and due from

 

 

16,324

 

 

15,283

 

 

6.81

%

Total deposits

 

 

776,339

 

 

764,692

 

 

1.52

%

Other borrowings

 

 

64

 

 

73

 

 

-12.33

%

Stockholders' equity

 

 

104,800

 

 

96,755

 

 

8.31

%

Intangible assets

 

 

14,838

 

 

15,976

 

 

-7.12

%

Total assets

 

 

887,647

 

 

868,203

 

 

2.24

%

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

511,215

 

$

493,668

 

 

3.55

%

Loans,net

 

 

505,070

 

 

487,130

 

 

3.68

%

Total securities

 

 

282,734

 

 

261,743

 

 

8.02

%

Total deposits

 

 

758,657

 

 

724,015

 

 

4.78

%

Other borrowings

 

 

626

 

 

420

 

 

49.05

%

Stockholders' equity

 

 

100,597

 

 

90,470

 

 

11.19

%

Cash and due from

 

 

13,947

 

 

15,976

 

 

-12.70

%

Interest-earning assets

 

 

807,686

 

 

769,931

 

 

4.90

%

Interest-bearing liabilities

 

 

650,429

 

 

610,534

 

 

6.53

%

Intangible assets

 

 

15,426

 

 

17,500

 

 

-11.85

%

Total assets

 

 

867,061

 

 

819,341

 

 

5.82

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.46

%

 

1.50

%

 

-0.04

 

Return on average equity

 

 

12.60

%

 

13.41

%

 

-0.81

 

Net interest margin

 

 

3.98

%

 

4.14

%

 

-0.16

 

 

 

 

Efficiency ratio

 

 

51.11

%

 

52.74

%

 

-1.63

 

Average equity to average assets

 

 

11.60

%

 

11.04

%

 

0.56

 

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,157

 

$

5,449

 

 

-5.36

%

Provision for losses

 

 

423

 

 

49

 

 

763.27

%

Charge-offs

 

 

-471

 

 

-459

 

 

2.61

%

Recoveries

 

 

110

 

 

118

 

 

-6.78

%

Ending balance

 

$

5,219

 

$

5,157

 

 

1.20

%

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

1,150

 

 

---

 

 

---

 

Restructured loans

 

 

---

 

 

---

 

 

---

 

Total nonperforming loans Note (2)

 

 

1,150

 

 

0

 

 

---

 

Other real estate owned

 

 

263

 

 

390

 

 

-32.56

%

Total nonperforming assets

 

$

1,413

 

$

390

 

 

262.31

%

 

 

 

 

 

 

 

 

 

 

 

Asset quality ratios: Note (3)

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.220

%

 

---

 

 

---

 

Allowance for loan losses to total loans

 

 

1.00

%

 

1.03

%

 

-3.33

%

Allowance for loan losses to nonperforming loans

 

 

453.83

%

 

---

 

 

---

 

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

 

 

 

 

 

 

 

 

 

 

Note (3) Ratio change measured in bp