EX-99 2 q1_pressrelease.htm


 

 

FOR IMMEDIATE RELEASE

 

CONTACTS:

JAMES G. RAKES, CHAIRMAN, PRESIDENT & CEO

 

(540) 951-6236

jrakes@nbbank.com

 

DAVID K. SKEENS, TREASURER & CFO

 

(540) 951-6347

dskeens@nbbank.com

 

 

NATIONAL BANKSHARES, INC.

REPORTS HIGHER FIRST QUARTER EARNINGS

 

BLACKSBURG, VA, APRIL 15, 2009:       National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today announced higher earnings for the first quarter ended March 31, 2009. The Company had net income of nearly $3.39 million, up by 6.48% over the $3.18 million reported for the quarter ended March 31, 2008. This translates to basic net income per share of $0.49, as compared with $0.46 per share last year. Net loans at the end of the first quarter were at $568.60 million, an 8.86% increase over the $522.34 million on March 31 last year. National Bankshares ended the first quarter with total assets of nearly $979.79 million, a 7.47% increase over the March 31, 2008 total of $911.72 million.

 

The Company’s Chairman, President & CEO, James G. Rakes said, “During the last quarter, our conservative approach to banking continued to serve our communities and stockholders well. Because we have strong capital levels and good liquidity, we have been able to continue making loans throughout the economic downturn. As traditional community bankers we have the advantage of knowing our customers and our markets. This helps us make solid loans, and total nonperforming loans have increased just 1.36%, from $1.32 million at March 31, 2008 to $1.34 million at the end of the first quarter this year. The Company has not fully escaped the effects of the current recession, and we have seen the total of other real estate owned grow to $1.92 million at March 31, 2009. However, even this number is modest when compared with our peers. In order to account for growth in the loan portfolio and to prepare for any difficulties that might be on the horizon if the downturn is extended, we have taken the opportunity to make prudent additions to the allowance for loan losses. At the end of the first quarter of 2009, the allowance stood at nearly $6.12 million, a 17.02% increase over the balance at March 31, 2008.” Mr. Rakes added, “At National Bankshares, we are committed to community banking, and our subsidiary, National Bank, has been doing business in good and bad times since 1891. We plan to work hard to continue this safe and sound tradition.”

 

National Bankshares, Inc., a financial holding company, is the parent of the National Bank of Blacksburg, which does business as National Bank from 26 offices throughout Southwest Virginia. National Bank offers a full range of banking products and services, including Trust services. The Company, which is headquartered in Blacksburg, Virginia has a financial services subsidiary 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 is available at www.nationalbankshares.com.

 

Forward-Looking Statements

Certain statements in this press release may be “forward-looking statements.” Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results that are not statements of historical fact and that involve significant risks and uncertainties. Although the Company believes that its expectations with regard to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual Company results will not differ materially from any future results implied by the forward-looking statements. Actual results may be materially different from past or anticipated results because of many factors, some of which may include changes in economic conditions, the interest rate environment, legislative and regulatory requirements, new products, competition, changes in the stock and bond markets and technology. The Company does not update any forward-looking statements that it may make.

 

 

National Bankshares, Inc. And Subsidiaries

 

(000’s), except ratios and percent data

 

 

 

 

 

 

 

Three months ending

 

March 31, 2009

 

March 31, 2008

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected consolidated data:

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,578

 

$

12,711

 

 

-1.05

%

Interest expense

 

 

4,412

 

 

5,407

 

 

-18.40

%

Net interest income

 

 

8,166

 

 

7,304

 

 

11.80

%

Provision for loan losses

 

 

370

 

 

100

 

 

270.00

%

Trust income

 

 

276

 

 

303

 

 

-8.91

%

Other noninterest income

 

 

1,831

 

 

1,993

 

 

-8.13

%

Salary and benefits

 

 

2,831

 

 

2,857

 

 

-0.91

%

Occupancy expense

 

 

469

 

 

456

 

 

2.85

%

Amortization of intangibles

 

 

278

 

 

284

 

 

-2.11

%

Other noninterest expense

 

 

2,052

 

 

1,860

 

 

10.32

%

Income taxes

 

 

-886

 

 

-862

 

 

2.78

%

Net income

 

$

3,387

 

$

3,181

 

 

6.48

%

Basic net income per share

 

$

0.49

 

$

0.46

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

574,246

 

$

525,080

 

 

9.36

%

Loans, net

 

 

567,190

 

 

518,794

 

 

9.33

%

Total securities

 

 

286,479

 

 

275,887

 

 

3.84

%

Total deposits

 

 

839,828

 

 

774,962

 

 

8.37

%

Other borrowings

 

 

53

 

 

63

 

 

-15.87

%

Stockholders’ equity

 

 

113,111

 

 

107,036

 

 

5.68

%

Cash and due from

 

 

11,811

 

 

12,749

 

 

-7.36

%

Interest-earning assets

 

 

901,837

 

 

833,802

 

 

8.16

%

Interest-bearing liabilities

 

 

730,963

 

 

666,590

 

 

9.66

%

Intangible assets

 

 

13,601

 

 

14,717

 

 

-7.58

%

Total assets

 

$

960,824

 

$

889,104

 

 

8.07

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.43

%

 

1.44

%

 

-0.01

%

Return on average equity

 

 

12.14

%

 

11.95

%

 

0.19

%

Net interest margin

 

 

4.08

%

 

3.93

%

 

0.15

%

Efficiency ratio

 

 

50.34

%

 

52.33

%

 

-1.99

%

Average equity to average assets

 

 

11.77

%

 

12.04

%

 

-0.27

%

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,858

 

$

5,219

 

 

12.24

%

Provision for losses

 

 

370

 

 

100

 

 

270.00

%

Charge-offs

 

 

-123

 

 

-152

 

 

-19.08

%

Recoveries

 

 

13

 

 

61

 

 

-78.69

%

Ending balance

 

$

6,118

 

$

5,228

 

 

17.02

%

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

March 31, 2009

 

 

March 31, 2008

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected consolidated data:

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,578

 

$

12,711

 

 

-1.05

%

Interest expense

 

 

4,412

 

 

5,407

 

 

-18.40

%

Net interest income

 

 

8,166

 

 

7,304

 

 

11.80

%

Provision for loan losses

 

 

370

 

 

100

 

 

270.00

%

Trust income

 

 

276

 

 

303

 

 

-8.91

%

Other noninterest income

 

 

1,831

 

 

1,993

 

 

-8.13

%

Salary and benefits

 

 

2,831

 

 

2,857

 

 

-0.91

%

Occupancy expense

 

 

469

 

 

456

 

 

2.85

%

Amortization of intangibles

 

 

278

 

 

284

 

 

-2.11

%

Other noninterest expense

 

 

2,052

 

 

1,860

 

 

10.32

%

Income taxes

 

 

-886

 

 

-862

 

 

2.78

%

Net income

 

$

3,387

 

$

3,181

 

 

6.48

%

Basic net income per share

 

$

0.49

 

$

0.46

 

$

0.03

 

Fully diluted net income per share

 

$

0.49

 

$

0.46

 

$

0.03

 

Dividends per share

 

 

---

 

 

---

 

 

---

 

Dividend payout ratio

 

 

---

 

 

---

 

 

---

 

Book value per share

 

$

16.39

 

$

15.72

 

$

0.67

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet at period-end:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

575,787

 

$

528,684

 

 

8.91

%

Loans, net

 

$

568,600

 

$

522,343

 

 

8.86

%

Total securities

 

 

300,491

 

 

277,492

 

 

8.29

%

Cash and due from

 

 

13,253

 

 

18,742

 

 

-29.29

%

Total deposits

 

 

857,829

 

 

795,085

 

 

7.89

%

Other borrowings

 

 

51

 

 

61

 

 

-16.39

%

Stockholders’ equity

 

 

113,556

 

 

108,957

 

 

4.22

%

Intangible assets

 

 

13,441

 

 

14,554

 

 

-7.65

%

Total assets

 

$

979,787

 

$

911,721

 

 

7.47

%

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

574,246

 

$

525,080

 

 

9.36

%

Loans, net

 

 

567,190

 

 

518,794

 

 

9.33

%

Total securities

 

 

286,479

 

 

275,887

 

 

3.84

%

Total deposits

 

 

839,828

 

 

774,962

 

 

8.37

%

Other borrowings

 

 

53

 

 

63

 

 

-15.87

%

Stockholders’ equity

 

 

113,111

 

 

107,036

 

 

5.68

%

Cash and due from

 

 

11,811

 

 

12,749

 

 

-7.36

%

Interest-earning assets

 

 

901,837

 

 

833,802

 

 

8.16

%

Interest-bearing liabilities

 

 

730,963

 

 

666,590

 

 

9.66

%

Intangible assets

 

 

13,601

 

 

14,717

 

 

-7.58

%

Total assets

 

$

960,824

 

$

889,104

 

 

8.07

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.43

%

 

1.44

%

 

-0.01

%

Return on average equity

 

 

12.14

%

 

11.95

%

 

0.19

%

Net interest margin

 

 

4.08

%

 

3.93

%

 

0.15

%

Efficiency ratio

 

 

50.34

%

 

52.33

%

 

-1.99

%

Average equity to average assets

 

 

11.77

%

 

12.04

%

 

-0.27

%

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,858

 

$

5,219

 

 

12.24

%

Provision for losses

 

 

370

 

 

100

 

 

270.00

%

Charge-offs

 

 

-123

 

 

-152

 

 

-19.08

%

Recoveries

 

 

13

 

 

61

 

 

-78.69

%

Ending balance

 

$

6,118

 

$

5,228

 

 

17.02

%

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

1,337

 

$

1,319

 

 

1.36

%

Restructured loans

 

 

---

 

 

---

 

 

---

 

Total nonperforming loans Note (2)

 

 

1,337

 

 

1,319

 

 

1.36

%

Other real estate owned

 

 

1,918

 

 

270

 

 

610.37

%

Total nonperforming assets

 

$

3,255

 

$

1,589

 

 

104.85

%

 

 

 

 

 

 

 

 

 

 

 

Asset quality ratios: Note (3)

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.23

%

 

0.25

%

 

---

 

Allowance for loan losses to total loans

 

 

1.06

%

 

0.99

%

 

---

 

Allowance for loan losses to nonperforming loans

 

 

457.59

%

 

396.36

%

 

---

 

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

 

 

 

 

 

 

 

 

 

 

Note (3) Ratio change measured in bp