EX-99 2 press_release.htm


 

FOR IMMEDIATE RELEASE

 

CONTACTS:

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

 

F. Brad Denardo, Treasurer (540) 951-6213

 

 

NATIONAL BANKSHARES, INC. ANNOUNCES HIGHER

  SECOND QUARTER EARNINGS

 

BLACKSBURG, VA, JULY 18, 2008: At June 30, 2008, National Bankshares, Inc. (NASDAQ Capital Market: NKSH) posted year-to-date net income of $6.65 million, or basic net income of $0.96 per share. This is a 6.3% increase over the $6.26 million in net income at June 30, 2007. For the three months ending June 30, 2008, the Company had net income of nearly $3.47 million, up by 10.48% over net income earned in the second quarter of 2007. Net loans were nearly $529.47 million at June 30, 2008, up by 5.24% over the total at the same time last year. The Company ended the second quarter with total assets of just over $894.91 million, 2.03% higher than at the end of the second quarter in 2007.

 

National Bankshares, Inc. is a financial holding company headquartered in Blacksburg, Virginia. It is the parent of National Bank, a community bank with 26 offices throughout Southwest Virginia that was founded in 1891. The Company has a non-bank brokerage and insurance subsidiary, National Bankshares Financial Services, Inc., trading in the same market.

 

The Company’s Chairman, President & CEO James G. Rakes commented, “In these challenging times, I am pleased to report solidly higher earnings, which were achieved using a traditional approach. We experienced good growth in the loan portfolio without compromising loan underwriting standards. At the same time, the net interest margin held steady at a respectable 4.00%. Finally, controllable costs have been kept in check, producing an efficiency ratio of 50.81% at June 30. Compared with last year’s historically good numbers, we are seeing an increase in nonperforming assets. Despite these changes, the 0.41% ratio of nonperforming loans to total loans at June 30, 2008, remains reasonable and good when compared with our peers. We are paying attention to local economic conditions and are prudently adding to the allowance for loan losses as warranted. National Bankshares, Inc. has operated with a consistently conservative business philosophy. This philosophy and our high capital levels help to prepare us for any economic weakness to come.”

 

National Bankshares, Inc. stock is traded on the NASDAQ Stock Market under the symbol “NKSH”. More information is available at www.nationalbankshares.com.

National Bankshares, Inc. And Subsidiaries

 

(000’s), except ratios and percent data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ending

 

 

June 30, 2008

 

 

June 30, 2007

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected Consolidated Data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,472

 

$

12,695

 

 

-1.76

%

Interest expense

 

 

4,815

 

 

5,370

 

 

-10.34

%

Net interest income

 

 

7,657

 

 

7,325

 

 

4.53

%

Provision for loan losses

 

 

135

 

 

13

 

 

938.46

%

Trust income

 

 

319

 

 

360

 

 

-11.39

%

Other noninterest income

 

 

1,908

 

 

1,899

 

 

0.47

%

Salary and benefits

 

 

2,746

 

 

2,778

 

 

-1.15

%

Occupancy expense

 

 

435

 

 

412

 

 

5.58

%

Amortization of intangibles

 

 

279

 

 

285

 

 

-2.11

%

Other noninterest expense

 

 

1,846

 

 

2,029

 

 

-9.02

%

Income taxes

 

 

-974

 

 

-927

 

 

5.07

%

Net income

 

$

3,469

 

$

3,140

 

 

10.48

%

Basic net income per share

 

$

0.50

 

$

0.45

 

$

0.05

 

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

529,653

 

$

509,826

 

 

3.89

%

Loans,net

 

 

523,336

 

 

503,706

 

 

3.90

%

Total securities

 

 

290,593

 

 

288,215

 

 

0.83

%

Total deposits

 

 

786,698

 

 

756,952

 

 

3.93

%

Other borrowings

 

 

61

 

 

2,235

 

 

-97.27

%

Stockholders’ equity

 

 

108,891

 

 

101,105

 

 

7.70

%

Cash and due from

 

 

13,008

 

 

14,213

 

 

-8.48

%

Interest-earning assets

 

 

844,591

 

 

806,828

 

 

4.68

%

Interest-bearing liabilities

 

 

670,099

 

 

648,844

 

 

3.28

%

Intangible assets

 

 

14,435

 

 

15,569

 

 

-7.28

%

Total assets

 

$

902,368

 

$

866,915

 

 

4.09

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.55

%

 

1.45

%

 

0.10

 

Return on average equity

 

 

12.81

%

 

12.46

%

 

0.35

 

Net interest margin

 

 

4.05

%

 

4.03

%

 

0.02

 

Average equity to average assets

 

 

12.07

%

 

11.66

%

 

0.40

 

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,228

 

$

5,045

 

 

3.63

%

Provision for losses

 

 

135

 

 

13

 

 

938.46

%

Charge-offs

 

 

-130

 

 

-89

 

 

46.07

%

Recoveries

 

 

34

 

 

31

 

 

9.68

%

Ending balance

 

$

5,267

 

$

5,000

 

 

5.34

%

 

 

Year to Date

 

 

June 30, 2008

 

 

June 30, 2007

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected Consolidated Data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

25,183

 

$

25,225

 

 

-0.17

%

Interest expense

 

 

10,222

 

 

10,786

 

 

-5.23

%

Net interest income

 

 

14,961

 

 

14,439

 

 

3.62

%

Provision for loan losses

 

 

235

 

 

10

 

 

2250.00

%

Trust income

 

 

622

 

 

733

 

 

-15.14

%

Other noninterest income

 

 

3,901

 

 

3,705

 

 

5.29

%

Salary and benefits

 

 

5,603

 

 

5,619

 

 

-0.28

%

Occupancy expense

 

 

891

 

 

897

 

 

-0.67

%

Amortization of intangibles

 

 

563

 

 

569

 

 

-1.05

%

Other noninterest expense

 

 

3,706

 

 

3,676

 

 

0.82

%

Income taxes

 

 

-1,836

 

 

-1,850

 

 

-0.76

%

Net income

 

$

6,650

 

$

6,256

 

 

6.30

%

Basic net income per share

 

$

0.96

 

$

0.90

 

$

0.06

 

Fully diluted net income per share

 

$

0.96

 

$

0.89

 

$

0.07

 

Dividends per share

 

 

---

 

 

---

 

 

---

 

Dividend payout ratio

 

 

40.63

 

 

41.30

 

 

0.67

 

Book value per share

 

$

15.50

 

$

14.14

 

$

1.36

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet at period-end:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

535,837

 

$

509,232

 

 

5.22

%

Loans, net

 

$

529,465

 

$

503,118

 

 

5.24

%

Total securities

 

 

289,315

 

 

282,955

 

 

2.25

%

Cash and due From

 

 

20,404

 

 

16,937

 

 

20.47

%

Total deposits

 

 

781,113

 

 

771,319

 

 

1.27

%

Other borrowings

 

 

59

 

 

141

 

 

-58.16

%

Stockholders’ equity

 

 

107,354

 

 

98,674

 

 

8.80

%

Intangible assets

 

 

14,276

 

 

15,407

 

 

-7.34

%

Total assets

 

$

894,912

 

$

877,098

 

 

2.03

%

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

527,366

 

$

506,452

 

 

4.13

%

Loans,net

 

 

521,064

 

 

500,292

 

 

4.15

%

Total securities

 

 

283,240

 

 

286,073

 

 

-0.99

%

Total deposits

 

 

780,830

 

 

759,874

 

 

2.76

%

Other borrowings

 

 

61

 

 

1,160

 

 

-94.74

%

Stockholders’ equity

 

 

107,963

 

 

99,086

 

 

8.96

%

Cash and due from

 

 

12,877

 

 

14,453

 

 

-10.90

%

Interest-earning assets

 

 

839,198

 

 

806,790

 

 

4.02

%

Interest-bearing liabilities

 

 

668,344

 

 

654,345

 

 

2.14

%

Intangible assets

 

 

14,576

 

 

15,714

 

 

-7.24

%

Total assets

 

$

895,701

 

$

867,003

 

 

3.31

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.49

%

 

1.46

%

 

0.03

 

Return on average equity

 

 

12.39

%

 

12.73

%

 

-0.34

 

Net interest margin

 

 

4.00

%

 

4.00

%

 

0.00

 

Efficiency ratio

 

 

50.81

%

 

52.55

%

 

-1.74

 

Average equity to average assets

 

 

12.05

%

 

11.43

%

 

0.62

 

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,219

 

$

5,157

 

 

1.20

%

Provision for losses

 

 

235

 

 

10

 

 

2250.00

%

Charge-offs

 

 

-282

 

 

-225

 

 

25.33

%

Recoveries

 

 

95

 

 

58

 

 

63.79

%

Ending balance

 

$

5,267

 

$

5,000

 

 

5.34

%

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

2,200

 

$

1,136

 

 

-100.00

%

Restructured loans

 

 

---

 

 

---

 

 

---

 

Total nonperforming loans Note (2)

 

 

2,200

 

 

1,136

 

 

-100.00

%

Other real estate owned

 

 

234

 

 

306

 

 

-23.53

%

Total nonperforming assets

 

$

2,434

 

$

1,442

 

 

68.79

%

 

 

 

 

 

 

 

 

 

 

 

Asset quality ratios: Note (3)

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.41

%

 

0.23

%

 

---

 

Allowance for loan losses to total loans

 

 

0.98

%

 

0.98

%

 

0.50

%

Allowance for loan losses to nonperforming loans

 

 

239.41

%

 

440.41

%

 

---

 

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

 

 

 

 

 

 

 

 

 

 

Note (3) Ratio change measured in bp