National Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheet
(Unaudited)
 
 ($ in thousands, except for per share data)
 
March 31, 2013
   
March 31, 2012
   
December 31, 2012
 
 Assets
                 
 Cash and due from banks
  $ 10,674     $ 12,241     $ 14,783  
 Interest-bearing deposits
    107,176       101,301       96,597  
 Securities available for sale
    192,954       198,346       191,504  
 Securities held to maturity
    166,947       139,367       160,539  
                   Total securities
    359,901       337,713       352,043  
 Mortgage loans held for sale
    313       1,371       2,796  
 Loans:
                       
      Loans, net of unearned income and deferred fees
    574,958       584,564       592,162  
      Less: allowance for loan losses
    (8,291 )     (8,063 )     (8,349 )
                  Loans, net
    566,667       576,501       583,813  
 Bank premises and equipment, net
    10,237       10,563       10,401  
 Accrued interest receivable
    5,878       6,175       6,247  
 Other real estate owned
    1,094       940       1,435  
 Intangible assets
    9,106       10,189       9,377  
 Bank-owned life insurance
    20,690       19,991       20,523  
 Other assets
    6,767       6,857       6,346  
                 Total assets
  $ 1,098,503     $ 1,083,842     $ 1,104,361  
                         
 Liabilities and Stockholders' Equity
                       
 Noninterest-bearing deposits
  $ 144,815     $ 145,070     $ 144,252  
 Interest-bearing demand deposits
    449,992       415,352       455,713  
 Savings deposits
    72,420       65,322       69,063  
 Time deposits
    269,892       306,048       277,738  
                 Total deposits
    937,119       931,792       946,766  
 Accrued interest payable
    146       191       139  
 Other liabilities
    7,878       7,067       7,347  
                Total liabilities
    945,143       939,050       954,252  
                         
 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 6,947,974 shares at March 31, 2013, 6,939,974 at March 31, 2012 and 6,947,974 at December 31,2012
    8,685       8,675       8,685  
 Retained earnings
    148,378       138,374       144,162  
 Accumulated other comprehensive loss, net
    (3,703 )     (2,257 )     (2,738 )
               Total stockholders' equity
    153,360       144,792       150,109  
 Total liabilities and stockholders' equity
  $ 1,098,503     $ 1,083,842     $ 1,104,361  
 
 
 

 
 
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
 
   
Three Months Ended
 
   
March 31, 2013
   
March 31, 2012
 
 ($ in thousands, except for per share data)
           
 Interest Income
           
 Interest and fees on loans
  $ 8,319     $ 8,878  
 Interest on interest-bearing deposits
    58       71  
 Interest on securities  taxable
    1,539       1,589  
 Interest on securities  nontaxable
    1,648       1,576  
              Total interest income
    11,564       12,114  
                 
 Interest Expense
               
 Interest on time deposits of $100,000 or more
    268       425  
 Interest on other deposits
    1,411       1,692  
             Total interest expense
    1,679       2,117  
             Net interest income
    9,885       9,997  
 Provision for loan losses
    671       672  
             Net interest income after provision for loan losses
    9,214       9,325  
                 
 Noninterest Income
               
 Service charges on deposit accounts
    588       631  
 Other service charges and fees
    60       49  
 Credit card fees
    740       794  
 Trust income
    289       326  
 Bank-owned life insurance
    188       200  
 Other income
    150       99  
 Realized securities gains, net
    95       53  
              Total noninterest income
    2,110       2,152  
                 
 Noninterest Expense
               
 Salaries and employee benefits
    2,940       2,956  
 Occupancy and furniture and fixtures
    432       397  
 Data processing and ATM
    393       392  
 FDIC assessment
    136       109  
 Credit card processing
    552       572  
 Intangibles and goodwill amortization
    271       271  
 Net costs of other real estate owned
    75       48  
 Franchise taxes
    258       162  
 Other operating expenses
    889       804  
              Total noninterest expense
    5,946       5,711  
 Income before income tax expense
    5,378       5,766  
 Income tax expense
    1,162       1,337  
             Net income
  $ 4,216     $ 4,429  
                 
 Basic net income per share
  $ 0.61     $ 0.64  
 Fully diluted net income per share
  $ 0.60     $ 0.64  
 Weighted average outstanding number of common shares
               
            Basic
    6,947,974       6,939,974  
            Diluted
    6,969,073       6,954,637  
 Dividends declared per share
    ---       ---  
 Dividend payout ratio
    ---       ---  
 Book value per share
  $ 22.07     $ 20.86  
 
 
 

 
 
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
 
   
Three Months Ended
 
 ($ in thousands, except for per share data)
 
March 31, 2013
   
March 31, 2012
 
 Net Income
  $ 4,216     $ 4,429  
                 
 Other  Comprehensive Income, net of tax
               
 Unrealized holding losses on available for sale securities net of deferred taxes of ($486) and ($489)
    (903 )     (907 )
 Reclassification adjustment, net of income taxes of ($33) and ($15)
    (62 )     (29 )
 Other comprehensive loss, net of tax of  ($1,485) and ($504)
  $ (965 )   $ (936 )
 Total Comprehensive Income
  $ 3,251     $ 3,493  
 
 
Key Ratios and Other Data
(Unaudited)
 
Average Balances
 
March 31, 2013
   
March 31, 2012
 
Cash and due from banks
  $ 12,023     $ 11,865  
Interest-bearing deposits
    99,216       110,901  
Securities available for sale
    190,938       175,232  
Securities held to maturity
    162,264       140,743  
Mortgage loans held for sale
    1,507       1,213  
Gross loans
    583,337       585,080  
Loans, net
    574,030       575,583  
Intangible assets
    9,262       10,344  
Total assets
    1,092,880       1,068,848  
Total deposits
    933,185       918,387  
Other borrowings
    ---       ---  
Stockholders' equity
    151,852       143,603  
Interest-earning assets
    1,033,967       1,012,224  
Interest-bearing liabilities
    795,321       780,804  
                 
Financial ratios
               
Return on average assets
    1.56 %     1.67 %
Return on average equity
    11.26 %     12.40 %
Net interest margin
    4.28 %     4.36 %
Net interest income  fully taxable equivalent
  $ 10,906     $ 10,940  
Efficiency ratio
    45.68 %     43.63 %
Average equity to average assets
    13.89 %     13.44 %
                 
Allowance for loan losses
               
Beginning balance
  $ 8,349     $ 8,068  
Provision for losses
    671       672  
Charge-offs
    (754 )     (700 )
Recoveries
    25       23  
Ending balance
  $ 8,291     $ 8,063  
 
 
 

 
 
Asset Quality Data
(Unaudited)
 
Nonperforming assets
 
March 31, 2013
   
March 31, 2012
 
Nonaccrual loans
  $ 10,734     $ 1,789  
Nonaccrual restructured loans
    1,691       3,539  
Total nonperforming loans
    12,425       5,328  
Other real estate owned
    1,094       940  
Total nonperforming assets
  $ 13,519     $ 6,268  
Accruing restructured loans
  $ 5,732     $ 3,742  
Loans 90 days or more past due
  $ 568     $ 210  
                 
Asset quality ratios
               
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned
    2.35 %     1.07 %
Allowance for loan losses to total loans
    1.44 %     1.38 %
Allowance for loan losses to nonperforming loans
    66.73 %     151.33 %
Loans past due 90 days or more to loans net of unearned income and deferred fees
    0.10 %     0.04 %