National Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
|
($ in thousands, except for share and per share data) |
June 30, 2018 |
June 30, 2017 |
December 31, 2017 |
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|
Assets |
||||||||||||
|
Cash and due from banks |
$ | 12,530 | $ | 12,936 | $ | 12,926 | ||||||
|
Interest-bearing deposits |
29,981 | 89,096 | 51,233 | |||||||||
|
Securities available for sale, at fair value |
467,505 | 308,435 | 331,387 | |||||||||
|
Securities held to maturity |
--- | 130,712 | 127,164 | |||||||||
|
Restricted stock |
1,221 | 1,200 | 1,200 | |||||||||
|
Total securities |
468,726 | 440,347 | 459,751 | |||||||||
|
Mortgage loans held for sale |
1,118 | 491 | 260 | |||||||||
|
Loans: |
||||||||||||
|
Loans, net of unearned income and deferred fees and costs |
690,863 | 654,734 | 668,069 | |||||||||
|
Less: allowance for loan losses |
(7,579 |
) |
(8,372 |
) |
(7,925 |
) |
||||||
|
Loans, net |
683,284 | 646,362 | 660,144 | |||||||||
|
Premises and equipment, net |
8,757 | 8,557 | 8,221 | |||||||||
|
Accrued interest receivable |
5,400 | 5,139 | 5,297 | |||||||||
|
Other real estate owned, net |
2,582 | 3,008 | 2,817 | |||||||||
|
Intangible assets and goodwill |
5,873 | 5,923 | 5,898 | |||||||||
|
Bank-owned life insurance |
34,212 | 33,287 | 33,756 | |||||||||
|
Other assets |
15,014 | 14,208 | 16,454 | |||||||||
|
Total assets |
$ | 1,267,477 | $ | 1,259,354 | $ | 1,256,757 | ||||||
|
Liabilities and Stockholders' Equity |
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|
Noninterest-bearing deposits |
$ | 195,949 | $ | 181,868 | $ | 182,511 | ||||||
|
Interest-bearing demand deposits |
625,447 | 618,223 | 622,189 | |||||||||
|
Savings deposits |
141,943 | 140,325 | 140,150 | |||||||||
|
Time deposits |
105,442 | 121,941 | 114,884 | |||||||||
|
Total deposits |
1,068,781 | 1,062,357 | 1,059,734 | |||||||||
|
Accrued interest payable |
51 | 43 | 62 | |||||||||
|
Other liabilities |
12,794 | 12,668 | 12,065 | |||||||||
|
Total liabilities |
1,081,626 | 1,075,068 | 1,071,861 | |||||||||
|
Stockholders' Equity |
||||||||||||
|
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 June 30, 2018, June 30, 2017 and December 31, 2017 |
8,698 | 8,698 | 8,698 | |||||||||
|
Retained earnings |
189,194 | 181,546 | 185,893 | |||||||||
|
Accumulated other comprehensive loss, net |
(12,041 |
) |
(5,958 |
) |
(9,695 |
) |
||||||
|
Total stockholders' equity |
185,851 | 184,286 | 184,896 | |||||||||
|
Total liabilities and stockholders' equity |
$ | 1,267,477 | $ | 1,259,354 | $ | 1,256,757 | ||||||
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
|
Three Months Ended |
Six Months Ended |
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|
($ in thousands, except for share and per share data) |
June 30, 2018 |
June 30, 2017 |
June 30, 2018 |
June 30, 2017 |
||||||||||||
|
Interest Income |
||||||||||||||||
|
Interest and fees on loans |
$ | 7,622 | $ | 7,453 | $ | 15,154 | $ | 14,906 | ||||||||
|
Interest on federal funds |
--- | --- | --- | --- | ||||||||||||
|
Interest on interest-bearing deposits |
226 | 231 | 398 | 379 | ||||||||||||
|
Interest on securities - taxable |
1,746 | 1,397 | 3,354 | 2,799 | ||||||||||||
|
Interest on securities - nontaxable |
1,132 | 1,214 | 2,304 | 2,449 | ||||||||||||
|
Total interest income |
10,726 | 10,295 | 21,210 | 20,533 | ||||||||||||
|
Interest Expense |
||||||||||||||||
|
Interest on time deposits |
116 | 135 | 237 | 280 | ||||||||||||
|
Interest on other deposits |
1,029 | 913 | 1,989 | 1,796 | ||||||||||||
|
Interest on borrowed funds |
--- | --- | --- | --- | ||||||||||||
|
Total interest expense |
1,145 | 1,048 | 2,226 | 2,076 | ||||||||||||
|
Net interest income |
9,581 | 9,247 | 18,984 | 18,457 | ||||||||||||
|
Provision for loan losses |
342 | 464 | (130 | ) | 523 | |||||||||||
|
Net interest income after provision for loan losses |
9,239 | 8,783 | 19,114 | 17,934 | ||||||||||||
|
Noninterest Income |
||||||||||||||||
|
Service charges on deposit accounts |
694 | 692 | 1,364 | 1,357 | ||||||||||||
|
Other service charges and fees |
34 | 41 | 67 | 110 | ||||||||||||
|
Credit card fees |
365 | 295 | 709 | 539 | ||||||||||||
|
Trust income |
374 | 361 | 776 | 762 | ||||||||||||
|
Bank-owned life insurance |
228 | 146 | 456 | 289 | ||||||||||||
|
Other income |
173 | 192 | 519 | 520 | ||||||||||||
|
Realized securities gain, net |
--- | 4 | --- | 4 | ||||||||||||
|
Total noninterest income |
1,868 | 1,731 | 3,891 | 3,581 | ||||||||||||
|
Noninterest Expense |
||||||||||||||||
|
Salaries and employee benefits |
3,545 | 3,419 | 7,239 | 6,942 | ||||||||||||
|
Occupancy and furniture and fixtures |
491 | 469 | 963 | 907 | ||||||||||||
|
Data processing and ATM |
607 | 542 | 1,340 | 1,108 | ||||||||||||
|
FDIC assessment |
90 | 91 | 181 | 186 | ||||||||||||
|
Intangibles and goodwill amortization |
12 | 12 | 25 | 43 | ||||||||||||
|
Net cost of other real estate owned |
164 | 55 | 249 | 84 | ||||||||||||
|
Franchise taxes |
320 | 329 | 651 | 651 | ||||||||||||
|
Write-down of insurance receivable |
287 | --- | 2,010 | --- | ||||||||||||
|
Other operating expenses |
908 | 1,057 | 1,930 | 2,336 | ||||||||||||
|
Total noninterest expense |
6,424 | 5,974 | 14,588 | 12,257 | ||||||||||||
|
Income before income tax expense |
4,683 | 4,540 | 8,417 | 9,258 | ||||||||||||
|
Income tax expense |
642 | 970 | 1,080 | 2,039 | ||||||||||||
|
Net Income |
$ | 4,041 | $ | 3,570 | $ | 7,337 | $ | 7,219 | ||||||||
|
Basic net income per share |
$ | 0.58 | $ | 0.51 | $ | 1.05 | $ | 1.04 | ||||||||
|
Fully diluted net income per share |
$ | 0.58 | $ | 0.51 | $ | 1.05 | $ | 1.04 | ||||||||
|
Weighted average number of common shares outstanding |
||||||||||||||||
|
Basic |
6,957,974 | 6,957,974 | 6,957,974 | 6,957,974 | ||||||||||||
|
Diluted |
6,957,974 | 6,957,974 | 6,957,974 | 6,957,974 | ||||||||||||
|
Dividends declared per share |
$ | 0.58 | $ | 0.56 | $ | 0.58 | $ | 0.56 | ||||||||
|
Dividend payout ratio |
--- | --- | 55.01 | % | 53.98 | % | ||||||||||
|
Book value per share |
--- | --- | $ | 26.71 | $ | 26.49 | ||||||||||
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
(Unaudited)
|
Three Months Ended |
||||||||
|
($ in thousands) |
June 30, 2018 |
June 30, 2017 |
||||||
|
Net income |
$ | 4,041 | $ | 3,570 | ||||
|
Other Comprehensive Income, net of tax |
||||||||
|
Unrealized holding gain on available for sale securities net of tax of $82 in 2018 and $874 in 2017 |
309 | 1,626 | ||||||
|
Other comprehensive income, net of tax of $82 in 2018 and $874 in 2017 |
$ | 309 | $ | 1,626 | ||||
|
Total Comprehensive Income |
$ | 4,350 | $ | 5,196 | ||||
|
Six Months Ended |
||||||||
|
($ in thousands) |
June 30, 2018 |
June 30, 2017 |
||||||
|
Net income |
$ | 7,337 | $ | 7,219 | ||||
|
Other Comprehensive Income (Loss), net of tax |
||||||||
|
Unrealized holding gain (loss) on available for sale securities net of tax of ($624) in 2018 and $1,454 in 2017 |
(2,346 |
) |
2,701 | |||||
|
Other comprehensive income (loss), net of tax of ($624) in 2018 and $1,454 in 2017 |
$ | (2,346 |
) |
$ | 2,701 | |||
|
Total Comprehensive Income |
$ | 4,991 | $ | 9,920 | ||||
Key Ratios and Other Data
(Unaudited)
|
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
($ in thousands) |
June 30, 2018 |
June 30, 2017 |
June 30, 2018 |
June 30, 2017 |
||||||||||||
|
Average Balances |
||||||||||||||||
|
Cash and due from banks |
$ | 11,100 | $ | 11,579 | $ | 11,173 | $ | 11,346 | ||||||||
|
Interest-bearing deposits |
50,182 | 87,694 | 47,973 | 80,050 | ||||||||||||
|
Securities available for sale |
367,332 | 305,058 | 350,342 | 304,833 | ||||||||||||
|
Securities held to maturity |
97,399 | 132,477 | 111,145 | 133,472 | ||||||||||||
|
Restricted stock |
1,221 | 1,200 | 1,211 | 1,186 | ||||||||||||
|
Mortgage loans held for sale |
221 | 262 | 227 | 238 | ||||||||||||
|
Gross Loans |
671,699 | 652,644 | 668,599 | 651,560 | ||||||||||||
|
Loans, net |
663,729 | 643,702 | 660,348 | 642,561 | ||||||||||||
|
Intangible assets |
5,880 | 5,931 | 5,887 | 5,940 | ||||||||||||
|
Total assets |
1,263,837 | 1,242,223 | 1,255,003 | 1,233,594 | ||||||||||||
|
Total deposits |
1,066,765 | 1,045,464 | 1,057,896 | 1,038,775 | ||||||||||||
|
Other borrowings |
--- | --- | --- | --- | ||||||||||||
|
Stockholders' equity |
185,060 | 184,108 | 185,103 | 182,319 | ||||||||||||
|
Interest-earning assets |
1,196,542 | 1,181,413 | 1,186,829 | 1,174,273 | ||||||||||||
|
Interest-bearing liabilities |
874,682 | 867,065 | 871,418 | 864,013 | ||||||||||||
|
Financial Ratios |
||||||||||||||||
|
Return on average assets(1) |
1.34 | % | 1.15 | % | 1.30 | % | 1.18 | % | ||||||||
|
Return on average equity(1) |
9.13 | % | 7.78 | % | 8.81 | % | 7.98 | % | ||||||||
|
Net interest margin |
3.35 | % | 3.42 | % | 3.36 | % | 3.46 | % | ||||||||
|
Net interest income-fully taxable equivalent |
$ | 9,982 | $ | 10,074 | $ | 19,790 | $ | 20,122 | ||||||||
|
Efficiency ratio(2) |
51.79 | % | 50.61 | % | 53.11 | % | 51.71 | % | ||||||||
|
Average equity to average assets |
14.64 | % | 14.82 | % | 14.75 | % | 14.78 | % | ||||||||
|
Allowance for Loan Losses |
||||||||||||||||
|
Beginning balance |
$ | 7,391 | $ | 8,261 | $ | 7,925 | $ | 8,300 | ||||||||
|
Provision for losses |
342 | 464 | (130 |
) |
523 | |||||||||||
|
Charge-offs |
(201 |
) |
(409 |
) |
(340 |
) |
(552 |
) |
||||||||
|
Recoveries |
47 | 56 | 124 | 101 | ||||||||||||
|
Ending balance |
$ | 7,579 | $ | 8,372 | $ | 7,579 | $ | 8,372 | ||||||||
|
(1) |
Return on average assets and return on average equity are calculated by annualizing net income to date. For 2018, the annualization factor was not applied to the recovery of loan losses and the insurance write-off. |
|
(2) |
Efficiency ratio is calculated as noninterest expense, less non-recurring items, divided by the sum of noninterest income and net interest income on a fully taxable equivalent basis. |
Asset Quality Data
(Unaudited)
|
($ in thousands) |
June 30, 2018 |
June 30, 2017 |
||||||
|
Nonperforming Assets |
||||||||
|
Nonaccrual loans |
$ | --- | $ | 9 | ||||
|
Nonaccrual restructured loans |
2,687 | 3,188 | ||||||
|
Total nonperforming loans |
2,687 | 3,197 | ||||||
|
Other real estate owned |
$ | 2,582 | $ | 3,008 | ||||
|
Total nonperforming assets |
$ | 5,269 | $ | 6,205 | ||||
|
Accruing restructured loans |
8,337 | 3,711 | ||||||
|
Loans 90 days or more past due |
$ | 61 | $ | 259 | ||||
|
Asset Quality Ratios |
||||||||
|
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned |
0.76 | % | 0.94 | % | ||||
|
Allowance for loans losses to total loans |
1.10 | % | 1.28 | % | ||||
|
Allowance for loan losses to nonperforming loans |
282.06 | % | 261.87 | % | ||||
|
Loans past due 90 days or more to loans net of unearned income and deferred fees |
0.01 | % | 0.04 | % | ||||