EX-99 2 press_release.htm PRESS RELEASE


 

FOR IMMEDIATE RELEASE

 

CONTACTS:

JAMES G. RAKES, CHAIRMAN, PRESIDENT & CEO

 

(540) 951-6236

jrakes@nbbank.com

 

DAVID K. SKEENS, TREASURER & CFO

 

(540) 951-6347

 

 

NATIONAL BANKSHARES, INC. REPORTS

SECOND QUARTER EARNINGS

 

BLACKSBURG, VA, JULY 15, 2009: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) reported today that it posted second quarter net income of nearly $3.36 million, or basic net income of $0.48 per share. For the second quarter of 2008, the Company had net income of nearly $3.47 million. Year-to-date net income is over $6.74 million, or $0.97 per share, 1.41% above the $6.65 million total on June 30, 2008. National Bankshares, Inc., a financial holding company headquartered in Blacksburg, Virginia, had net loans of $569.85 million at June 30, 2009, an increase of 7.63% over net loans at the end of the second quarter last year. Total assets on June 30 were $984.76 million, up by 10.04% over the same period in 2008.

 

Commenting on the Company’s quarterly results, Chairman, President & CEO James G. Rakes said, “Second quarter earnings were impacted by a special Federal Deposit Insurance Corporation assessment, as well as an increase in quarterly fees. It is not commonly understood that insured depository institutions themselves, not the taxpayers, fund FDIC deposit insurance. The financial crisis has put an additional burden on the Deposit Insurance Fund, and all insured banks are contributing so that the Fund’s reserve ratio remains healthy. Although the special assessment hurt second quarter earnings, FDIC insurance is a cornerstone of the American banking industry, and banks are doing what must be done to be certain that the public’s confidence in FDIC remains high.”

 

Mr. Rakes went on to say, “We are pleased with the level of loan growth through the first half of the year, and the quality of the loan portfolio is good. Although the total of nonperforming assets is somewhat higher, the ratio of nonperforming loans to total loans, at 0.47%, is reasonable and compares very well with our peers. We have increased the provision for loan losses throughout 2009, both in recognition of the difficult economy and to keep pace with loan growth. As we work to meet the challenges that remain this year, we are mindful of the conservative traditions that are a part of our bank’s 118-year heritage and of its important role in the communities we serve.”

National Bankshares, Inc. is the parent of the National Bank of Blacksburg, which does business as National Bank from 25 offices in Southwest Virginia. The Company has a financial services subsidiary that serves the same markets 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 can be found 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

 

June 30, 2009

 

June 30, 2008

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected consolidated data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

12,711

 

$

12,472

 

 

1.92

%

Interest expense

 

 

4,274

 

 

4,815

 

 

-11.24

%

Net interest income

 

 

8,437

 

 

7,657

 

 

10.19

%

Provision for loan losses

 

 

278

 

 

135

 

 

105.93

%

Trust income

 

 

261

 

 

319

 

 

-18.18

%

Other noninterest income

 

 

1,911

 

 

1,908

 

 

0.16

%

Salary and benefits

 

 

2,794

 

 

2,746

 

 

1.75

%

Occupancy expense

 

 

425

 

 

435

 

 

-2.30

%

Amortization of intangibles

 

 

273

 

 

279

 

 

-2.15

%

Other noninterest expense

 

 

2,688

 

 

1,846

 

 

45.61

%

Income taxes

 

 

-794

 

 

-974

 

 

-18.48

%

Net income

 

$

3,357

 

$

3,469

 

 

-3.23

%

Basic net income per share

 

$

0.48

 

$

0.50

 

 

$0.02

 

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

578,239

 

$

529,653

 

 

9.17

%

Loans, net

 

 

570,964

 

 

523,336

 

 

9.10

%

Total securities

 

 

303,753

 

 

290,593

 

 

4.53

%

Total deposits

 

 

858,977

 

 

786,698

 

 

9.19

%

Other borrowings

 

 

50

 

 

61

 

 

-18.03

%

Stockholders’ equity

 

 

114,981

 

 

108,891

 

 

5.59

%

Cash and due from

 

 

12,135

 

 

13,008

 

 

-6.71

%

Interest-earning assets

 

 

922,876

 

 

844,591

 

 

9.27

%

Interest-bearing liabilities

 

 

745,704

 

 

670,099

 

 

11.28

%

Intangible assets

 

 

13,324

 

 

14,435

 

 

-7.70

%

Total assets

 

$

981,514

 

$

902,368

 

 

8.77

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.37

%

 

1.55

%

 

-0.18

%

Return on average equity

 

 

11.71

%

 

12.81

%

 

-1.10

%

Net interest margin

 

 

4.10

%

 

4.05

%

 

0.05

%

Efficiency ratio

 

 

53.21

%

 

49.26

%

 

3.95

%

Average equity to average assets

 

 

11.71

%

 

12.07

%

 

-0.35

%

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

6,118

 

$

5,228

 

 

17.02

%

Provision for losses

 

 

278

 

 

135

 

 

105.93

%

Charge-offs

 

 

-131

 

 

-130

 

 

0.77

%

Recoveries

 

 

19

 

 

34

 

 

-44.12

%

Ending balance

 

$

6,284

 

$

5,267

 

 

19.31

%

 

 

 

 

 

 

 

 

 

 

 

Year to Date

 

 

June 30, 2009

 

 

June 30, 2008

 

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

Selected consolidated data :

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

25,289

 

$

25,183

 

 

0.42

%

Interest expense

 

 

8,686

 

 

10,222

 

 

-15.03

%

Net interest income

 

 

16,603

 

 

14,961

 

 

10.98

%

Provision for loan losses

 

 

648

 

 

235

 

 

175.74

%

Trust income

 

 

537

 

 

622

 

 

-13.67

%

Other noninterest income

 

 

3,742

 

 

3,901

 

 

-4.08

%

Salary and benefits

 

 

5,625

 

 

5,603

 

 

0.39

%

Occupancy expense

 

 

894

 

 

891

 

 

0.34

%

Amortization of intangibles

 

 

551

 

 

562

 

 

-1.96

%

Other noninterest expense

 

 

4,740

 

 

3,707

 

 

27.87

%

Income taxes

 

 

-1,680

 

 

-1,836

 

 

-8.50

%

Net income

 

$

6,744

 

$

6,650

 

 

1.41

%

Basic net income per share

 

$

0.97

 

$

0.96

 

$

0.01

 

Fully diluted net income per share

 

$

0.97

 

$

0.96

 

$

0.01

 

Dividends per share

 

$

0.41

 

$

0.39

 

$

0.02

 

Dividend payout ratio

 

 

42.16

 

 

40.63

 

 

1.53

 

Book value per share

 

$

16.58

 

$

15.50

 

$

1.08

 

 

 

 

 

 

 

 

 

 

 

 

Balance sheet at period-end:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

577,226

 

$

535,837

 

 

7.72

%

Loans, net

 

$

569,852

 

$

529,465

 

 

7.63

%

Total securities

 

 

306,283

 

 

289,315

 

 

5.86

%

Cash and due From

 

 

15,039

 

 

20,404

 

 

-26.29

%

Total deposits

 

 

861,862

 

 

781,113

 

 

10.34

%

Other borrowings

 

 

49

 

 

59

 

 

-16.95

%

Stockholders’ equity

 

 

114,979

 

 

107,354

 

 

7.10

%

Intangible assets

 

 

13,168

 

 

14,276

 

 

-7.76

%

Total assets

 

$

984,762

 

$

894,912

 

 

10.04

%

 

 

 

 

 

 

 

 

 

 

 

Daily averages:

 

 

 

 

 

 

 

 

 

 

Gross loans

 

$

576,253

 

$

527,366

 

 

9.27

%

Loans, net

 

 

569,087

 

 

521,064

 

 

9.22

%

Total securities

 

 

295,163

 

 

283,240

 

 

4.21

%

Total deposits

 

 

849,456

 

 

780,830

 

 

8.79

%

Other borrowings

 

 

52

 

 

61

 

 

-14.75

%

Stockholders’ equity

 

 

114,050

 

 

107,963

 

 

5.64

%

Cash and due from

 

 

11,798

 

 

12,877

 

 

-8.38

%

Interest-earning assets

 

 

912,589

 

 

839,198

 

 

8.75

%

Interest-bearing liabilities

 

 

738,374

 

 

668,344

 

 

10.48

%

Intangible assets

 

 

13,462

 

 

14,576

 

 

-7.64

%

Total assets

 

$

971,224

 

$

895,701

 

 

8.43

%

 

 

 

 

 

 

 

 

 

 

 

Financial ratios: Note (1)

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

1.40

%

 

1.49

%

 

-0.09

%

Return on average equity

 

 

11.92

%

 

12.39

%

 

-0.47

%

Net interest margin

 

 

4.09

%

 

4.00

%

 

0.09

%

Efficiency ratio

 

 

51.83

%

 

50.81

%

 

1.02

%

Average equity to average assets

 

 

11.74

%

 

12.05

%

 

-0.31

%

Note (1) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

5,858

 

$

5,219

 

 

12.24

%

Provision for losses

 

 

648

 

 

235

 

 

175.74

%

Charge-offs

 

 

-254

 

 

-282

 

 

-9.93

%

Recoveries

 

 

32

 

 

95

 

 

-66.32

%

Ending balance

 

$

6,284

 

$

5,267

 

 

19.31

%

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets:

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans

 

$

2,729

 

$

2,200

 

 

24.05

%

Restructured loans

 

 

---

 

 

---

 

 

---

 

Total nonperforming loans Note (2)

 

 

2,729

 

 

2,200

 

 

0

 

Other real estate owned

 

 

1,869

 

 

234

 

 

698.72

%

Total nonperforming assets

 

$

4,598

 

$

2,434

 

 

88.91

%

 

 

 

 

 

 

 

 

 

 

 

Asset quality ratios: Note (3)

 

 

 

 

 

 

 

 

 

 

Nonperforming loans to total loans

 

 

0.47

%

 

0.41

%

 

---

 

Allowance for loan losses to total loans

 

 

1.09

%

 

0.98

%

 

---

 

Allowance for loan losses to nonperforming loans

 

 

230.27

%

 

239.41

%

 

---

 

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

 

 

 

 

 

 

 

 

 

 

Note (3) Ratio change measured in bp

 

 

 

 

 

 

 

 

 

 

Note (3) Ratio change measured in bp