National Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheet
($ in thousands) (Unaudited) (Audited)
March 31, March 31, December 31,
Assets 2010 2009 2009
---------- ---------- ----------
Cash and due from banks $ 11,744 $ 13,603 $ 12,894
Interest-bearing deposits 55,706 41,929 32,730
Federal funds sold --- --- ---
Securities available for sale 161,543 166,007 168,041
Securities held to maturity 125,547 134,484 129,376
---------- ---------- ----------
Total securities 287,090 300,491 297,417
---------- ---------- ----------
Mortgage loans held for sale 1,358 998 126
Loans:
Real estate construction loans 47,245 58,645 45,625
Real estate mortgage loans 165,604 164,684 165,542
Commercial and industrial loans 284,242 249,925 283,998
Consumer loans 92,035 102,533 95,844
---------- ---------- ----------
Total loans 589,126 575,787 591,009
Less: unearned income and deferred
fees (1,052) (1,069) (1,062)
---------- ---------- ----------
Loans, net of unearned income
and deferred fees 588,074 574,718 589,947
Less: allowance for loan losses (7,141) (6,118) (6,926)
---------- ---------- ----------
Loans, net 580,933 568,600 583,021
---------- ---------- ----------
Bank premises and equipment, net 10,729 11,070 10,628
Accrued interest receivable 6,186 6,209 6,250
Other real estate owned 2,567 1,918 2,126
Intangible assets 12,355 13,441 12,626
Other assets 24,276 21,528 24,549
---------- ---------- ----------
Total assets $ 992,944 $ 979,787 $ 982,367
========== ========== ==========
Liabilities and Stockholders' Equity
Noninterest-bearing deposits $ 116,153 $ 112,473 $ 122,549
Interest-bearing demand deposits 325,214 285,218 310,629
Savings deposits 53,977 49,178 51,622
Time deposits 362,124 410,960 367,312
---------- ---------- ----------
Total deposits 857,468 857,829 852,112
---------- ---------- ----------
Other borrowed funds --- 51 ---
Accrued interest payable 392 650 336
Other liabilities 8,580 7,701 7,843
---------- ---------- ----------
Total liabilities 866,440 866,231 860,291
---------- ---------- ----------
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
March 31, 2010, 6,929,474 shares at
March 31, 2009 and 6,933,474 shares
at December 31, 2009 8,667 8,662 8,667
Retained earnings 117,670 108,743 113,901
Accumulated comprehensive income 167 (3,849) (492)
---------- ---------- ----------
Total stockholders' equity 126,504 113,556 122,076
---------- ---------- ----------
Total liabilities and stockholders'
equity $ 992,944 $ 979,787 $ 982,367
========== ========== ==========
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31, March 31,
2010 2009
--------- ----------
($ in thousands, except for per share data)
Interest Income
Interest and fees on loans $ 9,176 $ 9,462
Interest on federal funds --- ---
Interest on interest-bearing deposits 19 24
Interest on securities - taxable 1,443 1,561
Interest on securities - nontaxable 1,602 1,531
--------- ----------
Total interest income 12,240 12,578
--------- ----------
Interest Expense
Interest on time deposits of $100,000 or more 946 1,491
Interest on other deposits 2,033 2,920
Interest on borrowed funds --- 1
--------- ----------
Total interest expense 2,979 4,412
--------- ----------
Net interest income 9,261 8,166
Provision for loan losses 647 370
--------- ----------
Net interest income after provision for
loan losses 8,614 7,796
--------- ----------
Noninterest Income
Service charges on deposit accounts 714 804
Other service charges and fees 47 73
Credit card fees 666 625
Trust income 269 276
BOLI income 185 172
Other income 104 77
Realized securities gains (losses), net (14) 80
--------- ----------
Total noninterest income 1,971 2,107
--------- ----------
Noninterest Expense
Salaries and employee benefits 2,856 2,831
Occupancy and furniture and fixtures 491 469
Data processing and ATM 357 322
FDIC assessment 263 121
Credit card processing 508 463
Intangibles and goodwill amortization 271 278
Net costs of other real estate owned 33 60
Franchise taxes 239 227
Other operating expenses 766 859
--------- ----------
Total noninterest expense 5,784 5,630
--------- ----------
Income before income tax expense 4,801 4,273
Income tax expense 1,032 886
--------- ----------
Net income $ 3,769 $ 3,387
========= ==========
Basic net income per share $ 0.54 $ 0.49
========= ==========
Fully diluted net income per share $ 0.54 $ 0.49
========= ==========
Weighted average outstanding number of common shares
Basic 6,933,474 6,929,474
========= ==========
Diluted 6,952,812 6,934,846
========= ==========
Dividends declared per share --- ---
========= ==========
Dividend payout ratio --- ---
========= ==========
Book value per share $ 18.25 $ 16.39
========= ==========
Key Ratios and Other Data
(Unaudited)
($ in thousands) Three Months Ending
March 31, March 31,
Average Balances 2010 2009
---------- ----------
Cash and due from banks $ 11,197 $ 11,811
Interest-bearing deposits 34,866 41,121
Securities available for sale 163,438 160,767
Securities held to maturity 125,448 125,712
Mortgage loans held for sale 619 1,091
Gross loans 589,379 574,246
Loans, net 581,296 567,190
Intangible assets 12,511 13,601
Total assets 971,844 960,824
Total deposits 838,697 839,828
Other borrowings --- 53
Stockholders' equity 124,529 113,111
Interest-earning assets 909,654 901,837
Interest-bearing liabilities 723,107 730,963
Financial Ratios
Return on average assets 1.57% 1.43%
Return on average equity 12.27% 12.14%
Net interest margin 4.57% 4.08%
Net interest income - fully taxable equivalent $ 10,241 $ 9,077
Efficiency ratio 47.36% 50.34%
Average equity to average assets 12.81% 11.77%
($ in thousands)
Allowance for Loan Losses
Beginning balance $ 6,926 $ 5,858
Provision for losses 647 370
Charge-offs (455) (123)
Recoveries 23 13
---------- ----------
Ending balance $ 7,141 $ 6,118
========== ==========
Asset Quality Data
(Unaudited)
($ in thousands)
March 31, March 31,
Nonperforming assets 2010 2009
--------- ---------
Nonaccrual loans $ 7,743 $ 1,337
Restructured loans --- ---
--------- ---------
Total nonperforming loans 7,743 1,337
Other real estate owned 2,567 1,918
--------- ---------
Total nonperforming assets $ 10,310 $ 3,255
========= =========
Loans 90 days or more past due $ 2,217 $ 1,607
========= =========
Asset Quality Ratios
Nonperforming assets to loans net of unearned
income and deferred fees, plus other real estate
owned 1.77% 0.56%
Allowance for loan losses to total loans 1.21% 1.06%
Allowance for loan losses to nonperforming loans 92.23% 457.59%
Loans past due 90 days or more to loans net of
unearned income and deferred fees 0.38% 0.28%
Contact Information: CONTACTS: James G. Rakes Chairman, President & CEO (540) 951-6236 David K. Skeens Treasurer (540) 951-6347