National Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
|
($ in thousands, except for share and per share data) |
March 31, 2016 |
March 31, 2015 |
December 31, 2015 |
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|
Assets |
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|
Cash and due from banks |
$ | 9,913 | $ | 12,452 | $ | 12,152 | ||||||
|
Interest-bearing deposits |
129,363 | 87,676 | 130,811 | |||||||||
|
Federal funds sold |
--- | --- | --- | |||||||||
|
Securities available for sale, at fair value |
270,094 | 238,496 | 236,131 | |||||||||
|
Securities held to maturity |
144,664 | 156,135 | 152,028 | |||||||||
|
Restricted stock |
1,170 | 1,129 | 1,129 | |||||||||
|
Total securities |
415,928 | 395,760 | 389,288 | |||||||||
|
Mortgage loans held for sale |
63 | 1,091 | 634 | |||||||||
|
Loans: |
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|
Loans, net of unearned income and deferred fees |
607,643 | 622,171 | 619,008 | |||||||||
|
Less: allowance for loan losses |
(8,107 | ) | (8,257 | ) | (8,297 | ) | ||||||
|
Loans, net |
599,536 | 613,914 | 610,711 | |||||||||
|
Premises and equipment, net |
8,841 | 8,998 | 9,020 | |||||||||
|
Accrued interest receivable |
5,587 | 5,506 | 5,769 | |||||||||
|
Other real estate owned |
3,612 | 4,573 | 4,165 | |||||||||
|
Intangible assets and goodwill |
6,114 | 6,954 | 6,224 | |||||||||
|
Bank-owned life insurance |
22,548 | 21,946 | 22,401 | |||||||||
|
Other assets |
6,366 | 5,975 | 8,564 | |||||||||
|
Total assets |
$ | 1,207,871 | $ | 1,164,845 | $ | 1,199,739 | ||||||
|
Liabilities and Stockholders' Equity |
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|
Noninterest-bearing deposits |
$ | 170,207 | $ | 160,217 | $ | 166,453 | ||||||
|
Interest-bearing demand deposits |
570,065 | 526,388 | 569,787 | |||||||||
|
Savings deposits |
92,944 | 85,615 | 90,236 | |||||||||
|
Time deposits |
185,296 | 212,737 | 192,383 | |||||||||
|
Total deposits |
1,018,512 | 984,957 | 1,018,859 | |||||||||
|
Other borrowed funds |
--- | --- | --- | |||||||||
|
Accrued interest payable |
62 | 70 | 56 | |||||||||
|
Other liabilities |
10,061 | 7,096 | 8,710 | |||||||||
|
Total liabilities |
1,028,635 | 992,123 | 1,027,625 | |||||||||
|
Stockholders' Equity |
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|
Preferred stock, no par value, 5,000,000 shares authorized; none issued and outstanding |
--- | --- | --- | |||||||||
|
Common stock of $1.25 par value. Authorized 10,000,000 shares; issued and outstanding, 6,957,974 shares at March 31, 2016 and December 31, 2015 and 6,950,474 shares at March 31, 2015. |
8,697 | 8,688 | 8,697 | |||||||||
|
Retained earnings |
175,132 | 167,253 | 171,353 | |||||||||
|
Accumulated other comprehensive loss, net |
(4,593 | ) | (3,219 | ) | (7,936 | ) | ||||||
|
Total stockholders' equity |
179,236 | 172,722 | 172,114 | |||||||||
|
Total liabilities and stockholders' equity |
$ | 1,207,871 | $ | 1,164,845 | $ | 1,199,739 | ||||||
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
|
Three Months Ending |
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|
($ in thousands, except for share and per share data) |
March 31, 2016 |
March 31, 2015 |
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|
Interest Income |
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|
Interest and fees on loans |
$ | 7,334 | $ | 7,610 | ||||
|
Interest on federal funds |
--- | --- | ||||||
|
Interest on interest-bearing deposits |
162 | 64 | ||||||
|
Interest on securities - taxable |
1,677 | 1,734 | ||||||
|
Interest on securities - nontaxable |
1,311 | 1,386 | ||||||
|
Total interest income |
10,484 | 10,794 | ||||||
|
Interest Expense |
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|
Interest on time deposits |
274 | 327 | ||||||
|
Interest on other deposits |
794 | 760 | ||||||
|
Interest on borrowed funds |
--- | --- | ||||||
|
Total interest expense |
1,068 | 1,087 | ||||||
|
Net interest income |
9,416 | 9,707 | ||||||
|
Provision for loan losses |
203 | 201 | ||||||
|
Net income after provision for loan losses |
9,213 | 9,506 | ||||||
|
Noninterest Income |
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|
Service charges on deposit accounts |
560 | 535 | ||||||
|
Other service charges and fees |
72 | 71 | ||||||
|
Credit card fees |
870 | 895 | ||||||
|
Trust Income |
323 | 289 | ||||||
|
Bank-owned life insurance |
147 | 149 | ||||||
|
Other income |
345 | 314 | ||||||
|
Realized securities gains (losses), net |
24 | (2 | ) | |||||
|
Total noninterest income |
2,341 | 2,251 | ||||||
|
Noninterest Expense |
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|
Salaries and employee benefits |
3,568 | 3,051 | ||||||
|
Occupancy and furniture and fixtures |
477 | 449 | ||||||
|
Data processing and ATM |
411 | 435 | ||||||
|
FDIC assessment |
141 | 135 | ||||||
|
Credit card processing |
622 | 610 | ||||||
|
Intangibles and goodwill amortization |
110 | 269 | ||||||
|
Net cost of other real estate owned |
69 | 464 | ||||||
|
Franchise taxes |
331 | 308 | ||||||
|
Other operating expenses |
955 | 959 | ||||||
|
Total noninterest expense |
6,684 | 6,680 | ||||||
|
Income before income tax expense |
4,870 | 5,077 | ||||||
|
Income tax expense |
1,091 | 1,111 | ||||||
|
Net Income |
$ | 3,779 | $ | 3,966 | ||||
|
Basic net income per share |
$ | 0.54 | $ | 0.57 | ||||
|
Fully diluted net income per share |
$ | 0.54 | $ | 0.57 | ||||
|
Weighted average number of common shares outstanding |
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|
Basic |
6,957,974 | 6,950,474 | ||||||
|
Diluted |
6,957,974 | 6,955,023 | ||||||
|
Dividends declared per share |
$ | --- | $ | --- | ||||
|
Dividend payout ratio |
0.00 | % | 0.00 | % | ||||
|
Book value per share |
$ | 25.76 | $ | 24.85 | ||||
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
|
Three Months Ended |
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|
($ in thousands) |
March 31, 2016 |
March 31, 2015 |
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|
Net Income |
$ | 3,779 | $ | 3,966 | ||||
|
Other Comprehensive Income, Net of Tax |
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|
Unrealized holding gains on available for sale securities net of tax of $1,809 and $1,320 for the periods ended March 31, 2016 and 2015, respectively |
3,359 | 2,452 | ||||||
|
Reclassification adjustment for losses (gains) included in net income, net of tax of ($8) and $1 for the periods ended March 31, 2016 and 2015, respectively |
(16 | ) | 1 | |||||
|
Other comprehensive income, net of tax of $1,801 and $1,321 for the periods ended March 31, 2016 and 2015, respectively |
$ | 3,343 | $ | 2,453 | ||||
|
Total comprehensive income |
$ | 7,122 | $ | 6,419 | ||||
Key Ratios and Other Data
(Unaudited)
|
Three Months Ended |
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|
$ in thousands |
March 31, 2016 |
March 31, 2015 |
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|
Average Balances |
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|
Cash and due from banks |
$ | 11,309 | $ | 11,364 | ||||
|
Interest-bearing deposits |
125,849 | 104,104 | ||||||
|
Securities available for sale |
245,153 | 222,161 | ||||||
|
Securities held to maturity |
149,202 | 159,376 | ||||||
|
Restricted stock |
1,133 | 1,095 | ||||||
|
Mortgage loans held for sale |
427 | 460 | ||||||
|
Gross Loans |
610,979 | 605,137 | ||||||
|
Loans, net |
601,557 | 604,288 | ||||||
|
Intangible assets |
6,170 | 7,109 | ||||||
|
Total assets |
1,188,462 | 1,149,578 | ||||||
|
Total deposits |
1,003,136 | 973,738 | ||||||
|
Other borrowings |
--- | --- | ||||||
|
Stockholders' equity |
175,991 | 169,289 | ||||||
|
Interest-earning assets |
1,132,925 | 1,092,481 | ||||||
|
Interest-bearing liabilities |
838,943 | 821,308 | ||||||
|
Financial Ratios |
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|
Return on average assets |
1.28 | % | 1.40 | % | ||||
|
Return on average equity |
8.64 | % | 9.50 | % | ||||
|
Net interest margin |
3.66 | % | 3.94 | % | ||||
|
Net interest income-fully taxable equivalent |
$ | 10,307 | $ | 10,608 | ||||
|
Efficiency ratio |
52.85 | % | 51.95 | % | ||||
|
Average equity to average assets |
14.81 | % | 14.73 | % | ||||
|
Allowance for Loan Losses |
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|
Beginning balance |
$ | 8,297 | $ | 8,263 | ||||
|
Provision for losses |
203 | 201 | ||||||
|
Charge-offs |
(453 | ) | (260 | ) | ||||
|
Recoveries |
60 | 53 | ||||||
|
Ending balance |
$ | 8,107 | $ | 8,257 | ||||
Asset Quality Data
(Unaudited)
|
$ in thousands |
March 31, 2016 |
March 31, 2015 |
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|
Nonperforming Assets |
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|
Nonaccrual loans |
$ | 1,901 | $ | 3,102 | ||||
|
Nonaccrual restructured loans |
4,504 | 6,123 | ||||||
|
Total nonperforming loans |
6,405 | 9,225 | ||||||
|
Other real estate owned |
$ | 3,612 | $ | 4,573 | ||||
|
Total nonperforming assets |
$ | 10,017 | $ | 13,798 | ||||
|
Accruing restructured loans |
7,724 | 5,992 | ||||||
|
Loans 90 days or more past due |
$ | 328 | $ | 272 | ||||
|
Asset Quality Ratios |
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|
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned |
1.64 | % | 2.20 | % | ||||
|
Allowance for loans losses to total loans |
1.33 | % | 1.33 | % | ||||
|
Allowance for loan losses to nonperforming loans |
126.57 | % | 89.51 | % | ||||
|
Loans past due 90 days or more to loans net of unearned income and deferred fees |
0.05 | % | 0.04 | % | ||||
6