EX-99 2 q12008_release.htm PRESS RELEASE


 

 

FOR IMMEDIATE RELEASE

 

CONTACTS:

JAMES G. RAKES, PRESIDENT & CEO

(540) 951-6236

 

J. ROBERT BUCHANAN

(276) 979-0341

 

 

NATIONAL BANKSHARES, INC.

RELEASES FIRST QUARTER EARNINGS

 

BLACKSBURG, VA, APRIL 17, 2008: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today released its earnings for the first quarter ended March 31, 2008. Bankshares had net income of $3.18 million, an increase of 2.09% over the $3.12 million earned in the same quarter of 2007. This translates to basic net income of $0.46 per share. At the end of the first quarter, National Bankshares, Inc. had net loans of $522.34 million, an increase of 4.86% over March 31, 2007. The Company reported total assets of $911.72 million, which is 3.38% above the $881.92 million reported in the same period last year.

 

James G. Rakes, National Bankshares’ Chairman, President & CEO, stated, “In these challenging times for financial markets, I am glad to report that National Bankshares’ conservative and traditional approach to community banking has served us well. We offer customers a full range of products and services from a solid platform of up-to-date technology. But it is a relationship-based business philosophy that keeps us on course.” Mr. Rakes continued, “I am particularly pleased to see that loan demand was up during the first quarter and that loan quality remains high when compared to peers and from an historical perspective. It is important to us as community bankers to put deposit dollars from our local markets to work in those same markets by making good loans.”

 

National Bankshares, Inc. is a financial holding company headquartered in Blacksburg, Virginia. It 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 which does business as National Bankshares Investment Services and National Bankshares Insurance Services. Its 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.

 

 

 

 

 

National Bankshares, Inc. And Subsidiaries

 

(000’s), except ratios and percent data

 

 

 

 

 

 

 

 

Three months ending

 

March 31, 2008

 

March 31, 2007

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected Consolidated Data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,711

 

$

12,530

 

 

1.44

%

Interest expense

 

 

5,406

 

 

5,416

 

 

-0.18

%

Net interest income

 

 

7,305

 

 

7,114

 

 

2.68

%

Provision for loan losses

 

 

100

 

 

(3

)

 

-3433.33

%

Trust income

 

 

303

 

 

373

 

 

-18.77

%

Other noninterest income

 

 

1,993

 

 

1,806

 

 

10.35

%

Salary and benefits

 

 

2,857

 

 

2,841

 

 

0.56

%

Occupancy expense

 

 

456

 

 

485

 

 

-5.98

%

Amortization of intangibles

 

 

284

 

 

284

 

 

0.00

%

Other noninterest expense

 

 

1,861

 

 

1,647

 

 

12.99

%

Income taxes

 

 

-862

 

 

-923

 

 

-6.61

%

Net income

 

$

3,181

 

$

3,116

 

 

2.09

%

Basic net income per share

 

$

0.46

 

$

0.45

 

$

0.01

 

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

525,080

 

$

503,040

 

 

4.38

%

Loans,net

 

 

518,794

 

 

496,839

 

 

4.42

%

Total securities

 

 

275,887

 

 

284,789

 

 

-3.13

%

Total deposits

 

 

774,962

 

 

762,817

 

 

1.59

%

Other borrowings

 

 

63

 

 

73

 

 

-13.70

%

Stockholders’ equity

 

 

107,036

 

 

97,927

 

 

9.30

%

Cash and due from

 

 

12,749

 

 

14,684

 

 

-13.18

%

Interest-earning assets

 

 

833,802

 

 

807,632

 

 

3.24

%

Interest-bearing liabilities

 

 

666,590

 

 

659,908

 

 

1.01

%

Intangible assets

 

 

14,717

 

 

15,860

 

 

-7.21

%

Total assets

 

 

889,104

 

 

867,945

 

 

2.44

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.44

%

 

1.46

%

 

-0.02

 

Return on average equity

 

 

11.95

%

 

12.90

%

 

-0.95

 

Net interest margin

 

 

3.93

%

 

3.96

%

 

-0.03

 

Average equity to average assets

 

 

12.04

%

 

11.28

%

 

0.76

 

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,219

 

$

5,157

 

 

1.20

%

Provision for losses

 

 

100

 

 

-3

 

 

-3433.33

%

Charge-offs

 

 

-152

 

 

-136

 

 

11.76

%

Recoveries

 

 

61

 

 

27

 

 

125.93

%

Ending balance

 

$

5,228

 

$

5,045

 

 

3.63

%

 

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

March 31, 2008

 

March 31, 2007

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected Consolidated Data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,711

 

$

12,530

 

 

1.44

%

Interest expense

 

 

5,406

 

 

5,416

 

 

-0.18

%

Net interest income

 

 

7,305

 

 

7,114

 

 

2.68

%

Provision for loan losses

 

 

100

 

 

-3

 

 

-3433.33

%

Trust income

 

 

303

 

 

373

 

 

-18.77

%

Other noninterest income

 

 

1,993

 

 

1,806

 

 

10.35

%

Salary and benefits

 

 

2,857

 

 

2,841

 

 

0.56

%

Occupancy expense

 

 

456

 

 

485

 

 

-5.98

%

Amortization of intangibles

 

 

284

 

 

284

 

 

0.00

%

Other noninterest expense

 

 

1,861

 

 

1,647

 

 

12.99

%

Income taxes

 

 

-862

 

 

-923

 

 

-6.61

%

Net income

 

$

3,181

 

$

3,116

 

 

2.09

%

Basic net income per share

 

$

0.46

 

$

0.45

 

$

0.01

 

Fully diluted net income per share

 

$

0.46

 

$

0.45

 

$

0.01

 

Dividends per share

 

 

---

 

 

---

 

 

---

 

Dividend payout ratio

 

 

0.00

 

 

0.00

 

$

0.00

 

Book value per share

 

$

15.72

 

 

14.30

 

$

1.42

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet at period-end:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

528,684

 

$

504,277

 

 

4.84

%

Loans, net

 

$

522,343

 

$

498,129

 

 

4.86

%

Total securities

 

 

277,492

 

 

288,005

 

 

-3.65

%

Cash and due From

 

 

18,742

 

 

13,626

 

 

37.55

%

Total deposits

 

 

795,085

 

 

774,264

 

 

2.69

%

Other borrowings

 

 

61

 

 

71

 

 

-14.08

%

Stockholders’ equity

 

 

108,957

 

 

99,823

 

 

9.15

%

Intangible assets

 

 

14,554

 

 

15,692

 

 

-7.25

%

Total assets

 

 

911,721

 

 

881,915

 

 

3.38

%

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

525,080

 

$

503,040

 

 

4.38

%

Loans,net

 

 

518,794

 

 

496,839

 

 

4.42

%

Total securities

 

 

275,887

 

 

284,789

 

 

-3.13

%

Total deposits

 

 

774,962

 

 

762,817

 

 

1.59

%

Other borrowings

 

 

63

 

 

73

 

 

-13.70

%

Stockholders’ equity

 

 

107,036

 

 

97,927

 

 

9.30

%

Cash and due from

 

 

12,749

 

 

14,684

 

 

-13.18

%

Interest-earning assets

 

 

833,802

 

 

807,632

 

 

3.24

%

Interest-bearing liabilities

 

 

666,590

 

 

659,908

 

 

1.01

%

Intangible assets

 

 

14,717

 

 

15,860

 

 

-7.21

%

Total assets

 

 

889,104

 

 

867,945

 

 

2.44

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.44

%

 

1.46

%

 

-0.02

 

Return on average equity

 

 

11.95

%

 

12.90

%

 

-0.95

 

Net interest margin

 

 

3.93

%

 

3.96

%

 

-0.03

 

Efficiency ratio

 

 

52.33

%

 

52.12

%

 

0.21

 

Average equity to average assets

 

 

12.04

%

 

11.28

%

 

0.76

 

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,219

 

$

5,157

 

 

1.20

%

Provision for losses

 

 

100

 

 

-3

 

 

-3433.33

%

Charge-offs

 

 

-152

 

 

-136

 

 

11.76

%

Recoveries

 

 

61

 

 

27

 

 

125.93

%

Ending balance

 

$

5,228

 

$

5,045

 

 

3.63

%

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

 

1,319

 

$

1,132

 

 

-100.00

%

Restructured loans

 

 

---

 

 

---

 

 

---

 

Total nonperforming loans Note (2)

 

 

1,319

 

 

1,132

 

 

-100.00

%

Other real estate owned

 

 

270

 

 

251

 

 

7.57

%

Total nonperforming assets

 

$

1,589

 

$

1,383

 

 

14.90

%

 

 

 

 

 

 

 

 

 

 

 

Asset quality ratios: Note (3)

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.25

%

 

0.23

%

 

---

 

Allowance for loan losses to total loans

 

 

0.99

%

 

1.00

%

 

-0.90

%

Allowance for loan losses to nonperforming loans

 

 

396.36

%

 

445.67

%

 

---

 

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

 

 

 

 

 

 

 

 

 

 

Note (3) Ratio change measured in bp