BLACKSBURG, VA
-- (MARKET WIRE)
-- 02/10/11
National Bankshares, Inc. (NASDAQ: NKSH)
today announced that it had record net income of nearly $15.57 million for
the twelve months ended December 31, 2010, an 8.7% increase over the nearly
$14.32 million earned in 2009. Basic net income per share grew from $2.07
for 2009 to $2.25 in 2010. The return on average assets for 2010 was 1.57%
and the return on average equity was 12.07%. This compares to 1.47% and
12.23%, respectively, for 2009. 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 a non-bank
financial services subsidiary, National Bankshares Financial Services,
Inc., which does business in the same market as National Bankshares
Insurance Services and National Bankshares Investment Services.
National Bankshares, Inc. ended 2010 with total assets of $1.02 billion, up
by 4.06 % over the nearly $982.37 million in total assets reported at
December 31, 2009. The Company experienced a modest 2.44% decline in net
loans, from $583.02 million at December 31, 2009 to $568.78 million at the
end of 2010.
For the three months ended December 31, 2010, National Bankshares, Inc. had
net income of nearly $3.81 million, up slightly from the $3.80 million for
the same three month period of 2009. Net interest income increased from
$9.32 million for the fourth quarter of 2009 to $9.66 million for the last
three months of 2010. An increase in the provision for loan losses, from
$681 thousand in 2009 to $1.20 million in the three months ended December
31, 2010, resulted in net interest income after provision for loan losses
of $8.46 million for the final quarter of 2010. This compares with nearly
$8.64 million in the same period of 2009. The decline in this category was
offset by a drop in total noninterest expense, from $6.15 million for the
final three months of 2009 to $5.82 million for the three months ended
December 31, 2010.
Commenting on the Company's financial results for 2010, National Bankshares
Chairman, President & CEO James G. Rakes said, "Despite challenges in the
national and local economies, we were able to maintain strong core earnings
in 2010. Our subsidiary bank kept its traditional and conservative focus
again this year. Net income for 2010 was largely the result of higher net
interest income and lower noninterest expense. Interest rates remained low
and stable throughout the year, and we saw a drop in total interest income.
However, total interest expense declined at a faster rate than interest
income, resulting in a 9.58% increase in net interest income, from $34.66
million for the twelve months ended December 31, 2009 to over $37.98
million for 2010. As a result of a higher provision for loan losses, the
ratio of the allowance for loan losses to total loans grew from 1.17% at
December 31, 2009 to 1.33% at December 31, 2010. We increased the
provision for loan losses in 2010 because some of our loan customers are
still dealing with the effects of the prolonged economic downturn. We
therefore experienced an increase in total nonperforming loans, from $6.75
million at the end of 2009 to $8.42 million at December 31, 2010. The
ratio of nonperforming assets to loans net of unearned income and deferred
fees, plus other real estate owned, increased from 1.50% at year-end 2009
to 1.75% at the end of December 2010. The ratio is high when compared with
historical levels here at National Bankshares, but it remains reasonable
when compared with peers. It seems as if our market area did not feel the
full effects of the national recession as early as some other parts of the
country, but now it is not recovering as quickly as certain other regions."
Mr. Rakes continued, "In May, we will be celebrating the 120th anniversary
of the founding of National Bank. Milestones like this give us an
opportunity to reflect on our history and to put current challenges into a
larger perspective. We are proud of our heritage as traditional bankers,
and we look forward to serving our communities for many years to come."
National Bankshares, Inc. is a financial holding company headquartered in
Blacksburg, Virginia. Its stock is traded on the NASDAQ Capital Market
under the symbol "NKSH". Additional information is available on the
Company's web site 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
Consolidated Balance Sheet
(Unaudited)
December 31, December 31,
($ in thousands, except for per share data) 2010 2009
------------ ------------
Assets
Cash and due from banks $ 9,858 $ 12,894
Interest-bearing deposits 69,400 32,730
Federal funds sold --- ---
Securities available for sale 184,907 168,041
Securities held to maturity 131,000 129,376
------------ ------------
Total securities 315,907 297,417
------------ ------------
Mortgage loans held for sale 2,460 126
Loans:
Real estate construction loans 46,169 45,625
Real estate mortgage loans 173,533 165,542
Commercial and industrial loans 269,818 283,998
Consumer loans 87,868 95,844
------------ ------------
Total loans 577,388 591,009
Less: unearned income and deferred fees (945) (1,062)
------------ ------------
Loans, net of unearned income
and deferred fees 576,443 589,947
Less: allowance for loan losses (7,664) (6,926)
------------ ------------
Loans, net 568,779 583,021
------------ ------------
Bank premises and equipment, net 10,470 10,628
Accrued interest receivable 6,016 6,250
Other real estate owned 1,723 2,126
Intangible assets 11,543 12,626
Other assets 26,082 24,549
------------ ------------
Total assets $ 1,022,238 $ 982,367
============ ============
Liabilities and Stockholders' Equity
Noninterest-bearing deposits $ 131,540 $ 122,549
Interest-bearing demand deposits 365,040 310,629
Savings deposits 55,800 51,622
Time deposits 332,203 367,312
------------ ------------
Total deposits 884,583 852,112
------------ ------------
Other borrowed funds --- ---
Accrued interest payable 257 336
Other liabilities 8,211 7,843
------------ ------------
Total liabilities 893,051 860,291
------------ ------------
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
December 31, 2010, December 31, 2009 8,667 8,667
Retained earnings 123,161 113,901
Accumulated comprehensive income (loss), net (2,641) (492)
------------ ------------
Total stockholders' equity 129,187 122,076
------------ ------------
Total liabilities and
stockholders' equity $ 1,022,238 $ 982,367
============ ============
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
2010 2009 2010 2009
----------- ----------- ----------- -----------
($ in thousands, except
for per share data)
Interest Income
Interest and fees on
loans $ 9,199 $ 9,408 $ 36,919 $ 37,578
Interest on federal
funds --- --- --- ---
Interest on
interest-bearing
deposits 43 17 128 90
Interest on securities
- taxable 1,354 1,507 5,588 6,273
Interest on securities
- nontaxable 1,669 1,650 6,504 6,546
----------- ----------- ----------- -----------
Total interest income 12,265 12,582 49,139 50,487
----------- ----------- ----------- -----------
Interest Expense
Interest on time
deposits of $100,000
or more 744 1,054 3,439 5,417
Interest on other
deposits 1,859 2,208 7,719 10,405
Interest on borrowed
funds --- 1 --- 3
----------- ----------- ----------- -----------
Total interest expense 2,603 3,263 11,158 15,825
----------- ----------- ----------- -----------
Net interest income 9,662 9,319 37,981 34,662
Provision for loan
losses 1,200 681 3,409 1,634
----------- ----------- ----------- -----------
Net interest income
after provision
for loan losses 8,462 8,638 34,572 33,028
----------- ----------- ----------- -----------
Noninterest Income
Service charges on
deposit accounts 666 808 2,858 3,314
Other service charges
and fees 103 80 317 343
Credit card fees 783 743 2,954 2,803
Trust income 272 261 1,118 1,053
Bank-owned life
insurance 202 202 760 756
Other income 139 230 354 491
Realized securities
gains (losses), net (13) (11) (14) 44
----------- ----------- ----------- -----------
Total noninterest
income 2,152 2,313 8,347 8,804
----------- ----------- ----------- -----------
Noninterest Expense
Salaries and employee
benefits 2,758 2,927 10,963 11,336
Occupancy and furniture
and fixtures 456 448 1,875 1,792
Data processing and ATM 379 355 1,499 1,371
FDIC assessment 275 298 1,080 1,727
Credit card processing 620 570 2,300 2,121
Intangibles and
goodwill amortization 271 271 1,083 1,093
Net costs of other real
estate owned 34 293 214 393
Franchise taxes 241 219 963 885
Other operating
expenses 786 771 3,150 3,135
----------- ----------- ----------- -----------
Total noninterest
expense 5,820 6,152 23,127 23,853
----------- ----------- ----------- -----------
Income before income
tax expense 4,794 4,799 19,792 17,979
Income tax expense 987 1,004 4,223 3,660
----------- ----------- ----------- -----------
Net income $ 3,807 $ 3,795 $ 15,569 $ 14,319
=========== =========== =========== ===========
Basic net income per
share $ 0.55 $ 0.55 $ 2.25 $ 2.07
=========== =========== =========== ===========
Fully diluted net
income per share $ 0.55 $ 0.55 $ 2.24 $ 2.06
=========== =========== =========== ===========
Weighted average
outstanding number of
common shares
Basic 6,933,474 6,933,474 6,933,474 6,932,126
=========== =========== =========== ===========
Diluted 6,957,364 6,953,970 6,949,936 6,945,530
=========== =========== =========== ===========
Dividends declared per
share $ 0.47 $ 0.43 $ 0.91 $ 0.84
=========== =========== =========== ===========
Dividend payout ratio --- --- 40.52 40.67
=========== =========== =========== ===========
Book value per share --- --- $ 18.63 $ 17.61
=========== =========== =========== ===========
Key Ratios and Other Data
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31, December 31, December 31,
Average Balances 2010 2009 2010 2009
----------- ----------- ----------- -----------
Cash and due from banks $ 12,186 $ 11,858 $ 11,862 $ 11,879
Interest-bearing
deposits 73,785 27,338 55,477 35,841
Securities available
for sale 164,993 167,023 161,504 166,592
Securities held to
maturity 129,123 130,924 128,028 131,645
Mortgage loans held for
sale 1,811 940 1,339 911
Gross loans 580,533 587,198 585,604 579,766
Loans, net 571,961 579,633 577,210 572,438
Intangible assets 11,698 12,781 12,102 13,187
Total assets 1,007,740 969,092 989,952 971,538
Total deposits 866,988 838,866 852,953 846,637
Other borrowings --- 44 --- 49
Stockholders' equity 133,122 122,276 129,003 117,086
Interest-earning assets 944,837 909,411 926,901 913,091
Interest-bearing
liabilities 740,745 718,632 730,135 731,446
Financial ratios
Return on average
assets 1.50% 1.55% 1.57% 1.47%
Return on average
equity 11.35% 12.31% 12.07% 12.23%
Net interest margin 4.47% 4.51% 4.52% 4.23%
Net interest income -
fully taxable
equivalent $ 10,654 $ 10,331 $ 41,914 $ 38,595
Efficiency ratio 45.40% 48.61% 46.01% 50.32%
Average equity to
average assets 13.21% 12.62% 13.03% 12.05%
Allowance for loan
losses
Beginning balance $ 7,794 $ 6,453 $ 6,926 $ 5,858
Provision for losses 1,200 681 3,409 1,634
Charge-offs (1,351) (225) (2,810) (647)
Recoveries 21 17 139 81
----------- ----------- ----------- -----------
Ending balance $ 7,664 $ 6,926 $ 7,664 $ 6,926
=========== =========== =========== ===========
Asset Quality Data
(Unaudited)
December 31, December 31,
Nonperforming assets 2010 2009
----------- -----------
Nonaccrual loans $ 1,938 $ 4,098
Restructured loans 6,483 2,652
----------- -----------
Total nonperforming loans 8,421 6,750
Other real estate owned 1,723 2,126
----------- -----------
Total nonperforming assets $ 10,144 $ 8,876
=========== ===========
Loans 90 days or more past due $ 1,336 $ 1,697
=========== ===========
Asset quality ratios
Nonperforming assets to loans net of unearned
income and deferred fees, plus other real estate
owned 1.75% 1.50%
Allowance for loan losses to total loans 1.33% 1.17%
Allowance for loan losses to nonperforming loans 91.01% 102.61%
Loans past due 90 days or more to loans net of
unearned income and deferred fees 0.23% 0.29%
CONTACTS:
JAMES G. RAKES
CHAIRMAN, PRESIDENT & CEO
(540) 951-6236
Email Contact
DAVID K. SKEENS
TREASURER & CFO
(540) 951-6347
Email Contact
© 2026 Canjex Publishing Ltd. All rights reserved.