National Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
|
($ in thousands, except for share data) |
March 31, 2014 |
March 31, 2013 |
December 31, 2013 |
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|
Assets |
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|
Cash and due from banks |
$ | 14,723 | $ | 10,674 | $ | 13,283 | ||||||
|
Interest-bearing deposits |
108,841 | 107,176 | 97,376 | |||||||||
|
Federal funds sold |
--- | --- | --- | |||||||||
|
Securities available for sale |
190,401 | 190,215 | 182,402 | |||||||||
|
Securities held to maturity |
165,398 | 166,947 | 163,983 | |||||||||
|
Restricted Stock |
1,089 | 1,414 | 1,414 | |||||||||
|
Total securities |
356,888 | 358,576 | 347,799 | |||||||||
|
Mortgage loans held for sale |
--- | 313 | 1,276 | |||||||||
|
Loans: |
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|
Loans, net of unearned income and deferred fees |
589,048 | 574,958 | 595,690 | |||||||||
|
Less: allowance for loan losses |
(8,297 | ) | (8,291 | ) | (8,227 | ) | ||||||
|
Loans, net |
580,751 | 566,667 | 587,463 | |||||||||
|
Bank premises and equipment, net |
9,428 | 10,237 | 9,951 | |||||||||
|
Accrued interest receivable |
5,893 | 5,878 | 5,949 | |||||||||
|
Other real estate owned |
4,901 | 1,094 | 4,712 | |||||||||
|
Intangible assets |
8,029 | 9,106 | 8,299 | |||||||||
|
Bank-owned life insurance |
21,335 | 20,690 | 21,181 | |||||||||
|
Other assets |
12,321 | 8,092 | 13,341 | |||||||||
|
Total Assets |
$ | 1,123,110 | $ | 1,098,503 | $ | 1,110,630 | ||||||
|
Liabilities and Stockholders' Equity |
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Noninterest-bearing deposits |
$ | 145,963 | $ | 144,815 | $ | 142,645 | ||||||
|
Interest-bearing demand deposits |
503,596 | 449,992 | 501,541 | |||||||||
|
Savings deposits |
77,467 | 72,420 | 74,141 | |||||||||
|
Time deposits |
237,060 | 269,892 | 241,709 | |||||||||
|
Total deposits |
964,086 | 937,119 | 960,036 | |||||||||
|
Other borrowed funds |
--- | --- | --- | |||||||||
|
Accrued interest payable |
78 | 146 | 92 | |||||||||
|
Other liabilities |
5,529 | 7,878 | 4,610 | |||||||||
|
Total Liabilities |
969,693 | 945,143 | 964,738 | |||||||||
|
Stockholders' Equity |
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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 6,947,974 shares at March 31, 2014, March 31, 2013 and December 31, 2013 |
8,685 | 8,685 | 8,685 | |||||||||
|
Retained earnings |
158,575 | 148,378 | 154,171 | |||||||||
|
Accumulated other comprehensive loss, net |
(13,843 | ) | (3,703 | ) | (16,964 | ) | ||||||
|
Total Stockholders' Equity |
153,417 | 153,360 | 145,892 | |||||||||
|
Total Liabilities and Stockholders' Equity |
$ | 1,123,110 | $ | 1,098,503 | $ | 1,110,630 | ||||||
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
|
Three Months Ended |
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|
($ in thousands, except for share data) |
March 31, 2014 |
March 31, 2013 |
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|
Interest Income |
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|
Interest and fees on loans |
$ | 7,935 | $ | 8,319 | ||||
|
Interest on federal funds |
--- | --- | ||||||
|
Interest on interest-bearing deposits |
65 | 58 | ||||||
|
Interest on securities-taxable |
1,653 | 1,512 | ||||||
|
Interest on securities-nontaxable |
1,500 | 1,648 | ||||||
|
Total interest income |
11,153 | 11,537 | ||||||
|
Interest Expense |
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Interest on time deposits of $100 or more |
153 | 268 | ||||||
|
Interest on other deposits |
1,162 | 1,411 | ||||||
|
Interest on borrowed funds |
--- | --- | ||||||
|
Total interest expense |
1,315 | 1,679 | ||||||
|
Net interest income |
9,838 | 9,858 | ||||||
|
Provision for loan losses |
103 | 671 | ||||||
|
Net interest income after provision for loan losses |
9,735 | 9,187 | ||||||
|
Noninterest Income |
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|
Service charges on deposit accounts |
592 | 588 | ||||||
|
Other service charges and fees |
65 | 60 | ||||||
|
Credit card fees |
797 | 740 | ||||||
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Trust income |
293 | 289 | ||||||
|
Bank-owned life insurance |
175 | 188 | ||||||
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Other income |
277 | 281 | ||||||
|
Realized securities gains net |
1 | 9 | ||||||
|
Total noninterest income |
2,200 | 2,155 | ||||||
|
Noninterest Expense |
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Salaries and employee benefits |
2,999 | 2,940 | ||||||
|
Occupancy and furniture and fixtures |
440 | 432 | ||||||
|
Data processing and ATM |
363 | 393 | ||||||
|
FDIC assessment |
147 | 136 | ||||||
|
Credit card processing |
549 | 552 | ||||||
|
Intangibles and goodwill amortization |
269 | 271 | ||||||
|
Net costs of other real estate owned |
77 | 75 | ||||||
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Franchise taxes |
279 | 258 | ||||||
|
Other operating expenses |
1,059 | 907 | ||||||
|
Total noninterest expense |
6,182 | 5,964 | ||||||
|
Income before income tax expense |
5,753 | 5,378 | ||||||
|
Income tax expense |
1,349 | 1,162 | ||||||
|
Net Income |
$ | 4,404 | $ | 4,216 | ||||
|
Basic net income per share |
$ | 0.63 | $ | 0.61 | ||||
|
Fully diluted net income per share |
$ | 0.63 | $ | 0.60 | ||||
|
Weighted average outstanding number of common shares |
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|
Basic |
6,947,974 | 6,947,974 | ||||||
|
Diluted |
6,963,865 | 6,969,073 | ||||||
|
Dividends declared per share |
--- | --- | ||||||
|
Dividend payout ratio |
--- | --- | ||||||
|
Book value per share |
22.08 | 22.07 | ||||||
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
|
Three Months Ended |
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|
($ in thousands) |
March 31, 2014 |
March 31, 2013 |
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|
Net Income |
$ | 4,404 | $ | 4,216 | ||||
|
Other Comprehensive Income, Net of Tax |
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|
Unrealized holding gains (losses) on available for sale securities net of deferred taxes of $1,681 and ($516) |
3,121 | (959 | ) | |||||
|
Reclassification adjustment, net of income taxes of $0 and ($3) |
---- | (6 | ) | |||||
|
Other comprehensive income (loss), net of tax of $1,681 and ($519) |
$ | 3,121 | $ | (965 | ) | |||
|
Total Comprehensive Income |
$ | 7,525 | $ | 3,251 | ||||
National Bankshares, Inc. and Subsidiaries
Key Ratios and Other Data
(Unaudited)
|
Three Months Ended |
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|
($ in thousands) |
March 31, 2014 |
March 31, 2013 |
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|
Average Balances |
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|
Cash and due from banks |
$ | 11,937 | $ | 12,023 | ||||
|
Interest-bearing deposits |
102,240 | 99,216 | ||||||
|
Securities available for sale and restricted stock |
186,666 | 189,707 | ||||||
|
Securities held to maturity |
162,782 | 162,264 | ||||||
|
Mortgage loans held for sale |
382 | 1,507 | ||||||
|
Gross loans |
592,338 | 583,337 | ||||||
|
Loans, net |
583,189 | 574,030 | ||||||
|
Intangible assets |
8,185 | 9,262 | ||||||
|
Total assets |
1,108,867 | 1,092,880 | ||||||
|
Total deposits |
953,703 | 933,185 | ||||||
|
Other borrowings |
--- | --- | ||||||
|
Stockholders' equity |
149,877 | 151,852 | ||||||
|
Interest-earning assets |
1,062,323 | 1,032,736 | ||||||
|
Interest-bearing liabilities |
812,690 | 795,321 | ||||||
|
Financial Ratios |
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|
Return on average assets |
1.61 | % | 1.56 | % | ||||
|
Return on average equity |
11.92 | % | 11.26 | % | ||||
|
Net interest margin |
4.12 | % | 4.27 | % | ||||
|
Net interest income - fully taxable equivalent |
$ | 10,799 | $ | 10,879 | ||||
|
Efficiency ratio |
47.56 | % | 45.76 | % | ||||
|
Average equity to average assets |
13.52 | % | 13.89 | % | ||||
|
Allowance for Loan Losses |
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|
Beginning balance |
$ | 8,227 | $ | 8,349 | ||||
|
Provision for losses |
103 | 671 | ||||||
|
Charge-offs |
(191 | ) | (754 | ) | ||||
|
Recoveries |
158 | 25 | ||||||
|
Ending balance |
$ | 8,297 | $ | 8,291 | ||||
National Bankshares, Inc. and Subsidiaries
Asset Quality Data
(Unaudited)
|
($ in thousands) |
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|
Nonperforming Assets |
March 31, 2014 |
March 31, 2013 |
||||||
|
Nonaccrual loans |
$ | 5,071 | $ | 10,734 | ||||
|
Nonaccrual restructured loans |
1,007 | 1,691 | ||||||
|
Total nonperforming loans |
6,078 | 12,425 | ||||||
|
Other real estate owned |
4,901 | 1,094 | ||||||
|
Total nonperforming assets |
$ | 10,979 | $ | 13,519 | ||||
|
Accruing restructured loans |
$ | 6,145 | $ | 5,732 | ||||
|
Loans 90 days or more past due |
$ | 163 | $ | 568 | ||||
|
Asset Quality Ratios |
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|
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned |
1.85 | % | 2.35 | % | ||||
|
Allowance for loan losses to total loans |
1.41 | % | 1.44 | % | ||||
|
Allowance for loan losses to nonperforming loans |
136.51 | % | 66.73 | % | ||||
|
Loans past due 90 days or more and still accruing to loans net of unearned income and deferred fees |
0.03 | % | 0.10 | % | ||||