National Bankshares, Inc. and Subsidiaries

Consolidated Balance Sheets

(Unaudited)

 

($ in thousands, except for share and per share data)

 

March 31, 2017

   

March 31, 2016

   

December 31, 2016

 

Assets

                       

Cash and due from banks

  $ 13,654     $ 9,913     $ 13,974  

Interest-bearing deposits

    85,552       129,363       80,268  

Federal funds sold

    ---       ---       ---  

Securities available for sale, at fair value

    304,376       270,094       304,282  

Securities held to maturity

    133,596       144,664       134,957  

Restricted stock

    1,200       1,170       1,170  

Total securities

    439,172       415,928       440,409  

Mortgage loans held for sale

    608       63       478  

Loans:

                       

Loans, net of unearned income and deferred fees

    652,313       607,643       647,752  

Less: allowance for loan losses

    (8,261 )     (8,107 )     (8,300 )

Loans, net

    644,052       599,536       639,452  

Premises and equipment, net

    8,675       8,841       8,853  

Accrued interest receivable

    5,267       5,587       5,260  

Other real estate owned

    2,952       3,612       3,156  

Intangible assets and goodwill

    5,936       6,114       5,966  

Bank-owned life insurance

    23,141       22,548       22,998  

Other assets

    14,117       10,146       13,128  

Total assets

  $ 1,243,126     $ 1,211,651     $ 1,233,942  
                         

Liabilities and Stockholders' Equity

                       

Noninterest-bearing deposits

  $ 182,750     $ 170,206     $ 171,946  

Interest-bearing demand deposits

    601,421       570,065       605,226  

Savings deposits

    99,193       92,944       96,829  

Time deposits

    163,116       185,296       169,441  

Total deposits

    1,046,480       1,018,511       1,043,442  

Other borrowed funds

    ---       ---       ---  

Accrued interest payable

    45       62       55  

Other liabilities

    13,614       13,841       12,182  

Total liabilities

    1,060,139       1,032,414       1,055,679  
                         

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 March 31, 2107, December 31, 2016 and March 31, 2016.

    8,698       8,698       8,698  

Retained earnings

    181,873       175,132       178,224  

Accumulated other comprehensive loss, net

    (7,584 )     (4,593 )     (8,659 )

Total stockholders' equity

    182,987       179,237       178,263  

Total liabilities and stockholders' equity

  $ 1,243,126     $ 1,211,651     $ 1,233,942  

 



 

 

National Bankshares, Inc. and Subsidiaries

Consolidated Statements of Income

(Unaudited)

 

   

Three Months Ending

 

($ in thousands, except for share and per share data)

 

March 31, 2017

   

March 31, 2016

 

Interest Income

               

Interest and fees on loans

  $ 7,453     $ 7,334  

Interest on federal funds

    ---       ---  

Interest on interest-bearing deposits

    148       162  

Interest on securities - taxable

    1,402       1,677  

Interest on securities - nontaxable

    1,235       1,311  

Total interest income

    10,238       10,484  

Interest Expense

               

Interest on time deposits

    202       274  

Interest on other deposits

    826       794  

Interest on borrowed funds

    ---       ---  

Total interest expense

    1,028       1,068  

Net interest income

    9,210       9,416  

Provision for loan losses

    59       203  

Net income after provision for loan losses

    9,151       9,213  

Noninterest Income

               

Service charges on deposit accounts

    665       560  

Other service charges and fees

    69       72  

Credit card fees

    898       870  

Trust Income

    401       323  

Bank-owned life insurance

    143       147  

Other income

    328       345  

Realized securities gain, net

    ---       24  

Total noninterest income

    2,504       2,341  

Noninterest Expense

               

Salaries and employee benefits

    3,543       3,568  

Occupancy and furniture and fixtures

    438       477  

Data processing and ATM

    565       411  

FDIC assessment

    95       141  

Credit card processing

    655       622  

Intangibles and goodwill amortization

    31       110  

Net cost of other real estate owned

    29       69  

Franchise taxes

    322       331  

Other operating expenses

    1,259       955  

Total noninterest expense

    6,937       6,684  

Income before income tax expense

    4,718       4,870  

Income tax expense

    1,069       1,091  

Net Income

  $ 3,649     $ 3,779  

Basic net income per share

  $ 0.52     $ 0.54  

Fully diluted net income per share

  $ 0.52     $ 0.54  

Weighted average number of common shares outstanding

               

Basic

    6,957,974       6,957,974  

Diluted

    6,957,974       6,957,974  

Dividends declared per share

    ---       ---  

Dividend payout ratio

    ---       ---  

Book value per share

  $ 26.30     $ 25.76  

 



 

 

National Bankshares, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(Unaudited)

 

   

Three Months Ended

 

($ in thousands)

 

March 31, 2017

   

March 31, 2016

 

Net Income

  $ 3,649     $ 3,779  
                 

Other Comprehensive Income, Net of Tax

               

Unrealized holding gain on available for sale securities net of tax of $580 and $1,802 for the periods ended March 31, 2017 and 2016, respectively

    1,075       3,348  

Reclassification adjustment for gain included in net income, net of tax of ($2) for the period ended March 31, 2016

    ---       (4 )

Other comprehensive income, net of tax of $580 and $1,800 for the periods ended March 31, 2017 and 2016, respectively

  $ 1,075     $ 3,344  

Total Comprehensive Income

  $ 4,724     $ 7,123  

 



 

 

Key Ratios and Other Data

(Unaudited)

 

   

Three Months Ended

 

$ in thousands

 

March 31, 2017

   

March 31, 2016

 

Average Balances

               

Cash and due from banks

  $ 11,111     $ 11,309  

Interest-bearing deposits

    72,322       125,849  

Securities available for sale

    304,605       245,153  

Securities held to maturity

    134,477       149,202  

Restricted stock

    1,172       1,133  

Mortgage loans held for sale

    214       427  

Gross Loans

    650,464       610,979  

Loans, net

    641,406       601,557  

Intangible assets

    5,951       6,170  

Total assets

    1,224,870       1,188,462  

Total deposits

    1,032,012       1,003,136  

Other borrowings

    ---       ---  

Stockholders' equity

    180,512       175,991  

Interest-earning assets

    1,167,053       1,132,925  

Interest-bearing liabilities

    860,928       838,943  
                 

Financial Ratios

               

Return on average assets

    1.21 %     1.28 %

Return on average equity

    8.20 %     8.64 %

Net interest margin

    3.49 %     3.66 %

Net interest income-fully taxable equivalent

  $ 10,048     $ 10,307  

Efficiency ratio

    55.27 %     52.85 %

Average equity to average assets

    14.74 %     14.81 %
                 

Allowance for Loan Losses

               

Beginning balance

  $ 8,300     $ 8,297  

Provision for losses

    59       203  

Charge-offs

    (143 )     (453 )

Recoveries

    45       60  

Ending balance

  $ 8,261     $ 8,107  

 



 

 

Asset Quality Data

(Unaudited)

 

$ in thousands

 

March 31, 2017

   

March 31, 2016

 

Nonperforming Assets

               

Nonaccrual loans

  $ 1,040     $ 1,901  

Nonaccrual restructured loans

    4,640       4,504  

Total nonperforming loans

    5,680       6,405  

Other real estate owned

  $ 2,952     $ 3,612  

Total nonperforming assets

  $ 8,632     $ 10,017  

Accruing restructured loans

    3,747       7,724  

Loans 90 days or more past due

  $ 63     $ 328  
                 

Asset Quality Ratios

               

Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned

    1.32 %     1.64 %

Allowance for loans losses to total loans

    1.27 %     1.33 %

Allowance for loan losses to nonperforming loans

    145.44 %     126.57 %

Loans past due 90 days or more to loans net of unearned income and deferred fees

    0.01 %     0.05 %