EX-99 2 press_release.htm PRESS RELEASE press_release.htm
 
 
 
NBI Logo

 
FOR IMMEDIATE RELEASE

CONTACTS:    James G. Rakes, Chairman, President & CEO  (540) 951-6236
jrakes@nbbank.com
David K. Skeens, Treasurer  (540) 951-6347
dskeens@nbbank.com


NATIONAL BANKSHARES HAS INCREASE IN NET INCOME
OF 11.76% FOR THE FIRST THREE QUARTERS OF 2010

BLACKSBURG, VA, OCTOBER 14, 2010:  National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today announced that it had net income of nearly $4.0 million in the third quarter of 2010, an increase of 5.74% over the $3.78 million reported for the same period of 2009.  The financial holding company headquartered in Blacksburg, Virginia, posted net income of over $11.76 million for the nine months ended September 30, 2010, up by $1.24 million, or 11.76%, when compared with net income for the first nine months in 2009.  Basic net income per share for the third quarter of 2010 was $0.58, and it was $0.55 for the third quarter last year.  For the first nine months of 2010, basic net income per share was $1.70, up from $1.52 per share for 2009.  Total loans at September 30, 2010 were at $583.61 million, slightly higher than the $582.76 million in total loans at the end of the third quarter in 2009.  National Bankshares had total assets of nearly $982.45 million at September 30, 2010, and total assets of $965.89 million at September 30, 2009.  The Company reported that the return on average assets was 1.60% and the return on average equity was 12.32% for the nine months ended September 30, 2010.

National Bankshares’ Chairman, President & CEO James G. Rakes said, “With interest rates remaining stable through the third quarter, we have been able to keep the net interest margin in a healthy range.  This in turn has led to an increase in net interest income.  We also maintain a focus on containing controllable costs.  The end result is higher earnings through three quarters of the year.”  Mr. Rakes continued, “Our lenders are still working closely with some loan customers who are struggling in this difficult economy.  We continue to fund the provision for loan losses at a prudent level as we look forward to a sustained recovery in our markets.”

National Bankshares, Inc. is the parent company of the National Bank of Blacksburg, which does business as National Bank from 25 offices throughout Southwest Virginia.  It also has an insurance and investments subsidiary, National Bankshares Financial Services, Inc., which operates in the same trade area.  The Company’s stock is traded on the NASDAQ Capital Market under the symbol “NKSH”.  Additional information is available at www.nationalbankshares.com.
 

 
101 Hubbard Street / Blacksburg, Virginia 24060
P.O. Box 90002 / Blacksburg, Virginia 24062-9002
540 951-6300 / 800 552-4123
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
Consolidated Balance Sheet

 
 (Unaudited)
  
(Unaudited)
        
($ in thousands, except for per share data)
September 30,
 2010
  
September 30,
2009
    
December 31,
2009
  
Assets
                    
Cash and due from banks
$
12,540
  
$
11,891
    
$
 $12,894
  
Interest-bearing deposits
  
55,367
    
22,935
      
32,730
  
Federal funds sold
  
---
    
---
      
---
  
Securities available for sale
  
154,980
    
169,457
      
168,041
  
Securities held to maturity
  
127,480
    
132,786
      
129,376
  
Total securities
  
282,460
    
302,243
      
297,417
  
Mortgage loans held for sale
  
1,732
    
628
      
126
  
Loans:
                    
Real estate construction loans
  
48,908
    
47,671
      
45,625
  
Real estate mortgage loans
  
173,753
    
167,589
      
165,542
  
Commercial and industrial loans
  
269,619
    
268,868
      
283,998
  
Consumer loans
  
91,329
    
98,632
      
95,844
  
Total loans
  
583,609
    
582,760
      
591,009
  
Less: unearned income and deferred fees
  
 (975)
    
 (1,119)
      
 (1,062)
  
Loans, net of unearned income and deferred fees
  
582,634
    
581,641
      
589,947
  
Less: allowance for loan losses
  
 (7,794)
    
 (6,453)
      
 (6,926)
  
Loans, net
  
574,840
    
575,188
      
583,021
  
Bank premises and equipment, net
  
10,608
    
10,734
      
10,628
  
Accrued interest receivable
  
6,000
    
6,322
      
6,250
  
Other real estate owned
  
3,026
    
1,944
      
2,126
  
Intangible assets
  
11,814
    
12,897
      
12,626
  
Other assets
  
24,060
    
21,106
      
24,549
  
Total assets
$
 982,447
  
$
965,888
    
$
982,367
  
                     
Liabilities and Stockholders' Equity
                    
Noninterest-bearing deposits
$
125,877
  
$
122,519
    
$
 122,549
  
Interest-bearing demand deposits
  
316,820
    
277,884
      
310,629
  
Savings deposits
  
55,695
    
50,241
      
51,622
  
Time deposits
  
343,464
    
385,229
      
367,312
  
                 Total deposits
  
841,856
    
835,873
      
852,112
  
Other borrowed funds
  
---
    
46
      
---
  
Accrued interest payable
  
304
    
473
      
336
  
Other liabilities
  
7,673
    
8,025
      
7,843
  
Total liabilities
  
849,833
    
844,417
      
860,291
  
                     
Stockholders' Equity
                    
Preferred stock of no par value. Authorized 5,000,000 shares; none issued and outstanding
  
 ---
    
 ---
      
 ---
  
Common stock of $1.25 par value. Authorized 10,000,000 shares;  issued and outstanding  6,933,474 shares at September 30, 2010,  September 30, 2009, and  December 31, 2009
  
8,667
    
8,667
      
8,667
  
 Retained earnings
  
122,612
    
113,087
      
113,901
  
 Accumulated comprehensive income gain (loss)
  
1,335
    
 (283
)
    
 (492
)
Total stockholders' equity
  
132,614
    
121,471
      
122,076
  
Total liabilities and stockholders' equity
S
982,447
  
$
965,888
    
$
982,367
  


 
 
 


 
Consolidated Statements of Income
(Unaudited)

   
Three Months Ended
    
Nine Months Ended
  
   
September 30, 2010
    
September 30, 2009
    
September 30, 2010
    
September 30, 2009
  
($ in thousands, except for per share data)
                                
Interest Income
                                
Interest and fees on loans
  
$
 9,284
    
$
$9,316
    
$
 27,720
    
$
$28,170
  
Interest on federal funds
    
---
      
---
      
---
      
---
  
Interest on interest-bearing deposits
    
36
      
23
      
85
      
73
  
Interest on securities – taxable
    
1,325
      
1,600
      
4,234
      
4,766
  
Interest on securities – nontaxable
    
1,642
      
1,677
      
4,835
      
4,896
  
Total interest income
    
12,287
      
12,616
      
36,874
      
37,905
  
                                 
Interest Expense
                                
Interest on time deposits
    
855
      
1,379
      
2,695
      
4,363
  
Interest on other deposits
    
1,871
      
2,496
      
5,860
      
8,197
  
Interest on borrowed funds
    
---
      
1
      
---
      
2
  
Total interest expense
    
2,726
      
3,876
      
8,555
      
12,562
  
Net interest income
    
9,561
      
8,740
      
28,319
      
25,343
  
Provision for loan losses
    
710
      
305
      
2,209
      
953
  
Net interest income after provision for loan losses
    
8,851
      
8,435
      
26,110
      
24,390
  
                                 
Noninterest Income
                                
Service charges on deposit accounts
    
706
      
865
      
2,192
      
2,506
  
Other service charges and fees
    
63
      
107
      
214
      
263
  
Credit card fees
    
745
      
723
      
2,171
      
2,060
  
Trust income
    
316
      
255
      
846
      
792
  
Bank owned life insurance
    
197
      
201
      
558
      
554
  
Other income
    
72
      
76
      
215
      
261
  
Realized securities gains/(losses), net
    
2
      
 (15)
      
 (1)
      
55
  
Total noninterest income
    
2,101
      
2,212
      
6,195
      
6,491
  
                                 
Noninterest Expense
                                
Salaries and employee benefits
    
2,695
      
2,784
      
8,205
      
8,409
  
Occupancy and furniture and fixtures
    
451
      
450
      
1,419
      
1,344
  
Data processing and ATM
    
414
      
380
      
1,120
      
1,016
  
FDIC  assessment
    
273
      
423
      
805
      
1,429
  
Credit card processing
    
588
      
550
      
1,680
      
1,551
  
Intangibles and goodwill amortization
    
270
      
271
      
812
      
822
  
Net costs of other real estate owned
    
120
      
29
      
180
      
100
  
Franchise taxes
    
241
      
221
      
722
      
666
  
Other operating expenses
    
774
      
783
      
2,364
      
2,364
  
Total noninterest expense
    
5,826
      
5,891
      
17,307
      
17,701
  
Income before income tax expense
    
5,126
      
4,756
      
14,998
      
13,180
  
Income tax expense
    
1,129
      
976
      
3,236
      
2,656
  
Net income
  
$
3,997
    
$
3,780
    
$
 11,762
    
$
 10,524
  
                                 
Basic net income per share
  
$
  0.58
    
$
 0.55
    
$
 1.70
    
$
 1.52
  
Fully diluted net income per share
  
$
 0.58
    
$
 0.54
    
$
 1.69
    
$
 1.52
  
Weighted average outstanding number of common shares
                                
Basic
    
6,933,474
      
6,933,474
      
6,933,474
      
6,931,672
  
Diluted
    
6,946,650
      
6,948,083
      
6,949,731
      
6,942,712
  
Dividends declared per share
  
$
 ---
    
$
 ---
    
$
 0.44
    
$
 0.41
  
Dividend payout ratio
    
 ---
      
 ---
      
25.94
      
27.01
  
Book value per share
    
 ---
      
 ---
    
$
 19.13
    
$
 17.52
  


 
 
 


 
Key Ratios and Other Data
(Unaudited)

   
Three Months Ended
    
Nine Months Ended
  
Average Balances
  
September 30, 2010
    
September 30, 2009
    
September 30, 2010
    
September 30, 2009
  
Cash and due from banks
  
$
 11,732
    
$
 11,368
    
$
 11,404
    
$
 11,886
  
Interest-bearing deposits
    
61,389
      
34,418
      
49,658
      
38,706
  
Securities available for sale
    
155,602
      
169,149
      
160,326
      
166,446
  
Securities held to maturity
    
129,416
      
135,419
      
127,659
      
131,888
  
Mortgage loans held for sale
    
1,918
      
636
      
1,181
      
901
  
Gross loans
    
584,510
      
579,248
      
587,312
      
577,262
  
Loans, net
    
575,921
      
571,837
      
578,978
      
570,014
  
Intangible assets
    
11,969
      
13,053
      
12,238
      
13,324
  
Total assets
    
990,306
      
974,574
      
983,981
      
972,363
  
Total deposits
    
852,021
      
848,836
      
848,223
      
849,255
  
Other borrowings
    
---
      
48
      
---
      
50
  
Stockholders' equity
    
130,535
      
117,868
      
127,613
      
115,337
  
Interest-earning assets
    
928,140
      
916,773
      
921,431
      
914,332
  
Interest-bearing liabilities
    
727,328
      
730,628
      
726,559
      
735,764
  
                                 
Financial ratios
                                
Return on average assets
    
1.60
%
    
1.56
%
    
1.60
%
    
1.45
%
Return on average equity
    
12.15
%
    
12.86
%
    
12.32
%
    
12.20
%
Net interest margin
    
4.50
%
    
4.27
%
    
4.54
%
    
4.13
%
Net interest income – fully taxable equivalent
  
$
 10,530
    
$
 9,756
    
$
 31,260
    
$
 28,265
  
Efficiency ratio
    
46.13
%
    
49.77
%
    
46.21
%
    
50.93
%
Average equity to average assets
    
13.18
%
    
12.09
%
    
12.97
%
    
11.86
%
                                 
Allowance for loan losses
                                
Beginning balance
  
$
 7,553
    
$
 6,284
    
$
 6,926
    
$
 5,858
  
Provision for losses
    
710
      
305
      
2,209
      
953
  
Charge-offs
    
 (488
)
    
 (168
)
    
 (1,459
)
    
 (422
)
Recoveries
    
19
      
32
      
118
      
64
  
Ending balance
  
$
 7,794
    
$
 6,453
    
$
 7,794
    
$
 6,453
  


Asset Quality Data
(Unaudited)

Nonperforming assets
  
September 30, 2010
    
September 30, 2009
  
Nonaccrual loans
  
$
 7,639
    
$
3,888
  
Restructured loans
    
---
      
---
  
Total nonperforming loans
    
7,639
      
3,888
  
Other real estate owned
    
3,026
      
1,944
  
Total nonperforming assets
  
$
$10,665
    
$
5,832
  
Loans 90 days or more past due
  
$
533
    
$
2,153
  
                 
Asset quality ratios
                
Nonperforming loans to loans net of unearned income and deferred fees, plus other real estate owned
    
1.30
%
    
0.67
%
Allowance for loan losses to total loans
    
1.34
%
    
1.11
%
Allowance for loan losses to nonperforming loans
    
102.03
%
    
165.97
%
Loans past due 90 days or more to loans net of unearned income and deferred fees
    
0.09
%
    
0.37
%