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 |
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|
Assets |
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|
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: |
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|
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 |
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|
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 |
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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, 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 |
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|
($ in thousands, except for share and per share data) |
March 31, 2017 |
March 31, 2016 |
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|
Interest Income |
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|
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 |
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|
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 |
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|
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 |
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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 |
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|
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 |
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|
($ in thousands) |
March 31, 2017 |
March 31, 2016 |
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|
Net Income |
$ | 3,649 | $ | 3,779 | ||||
|
Other Comprehensive Income, Net of Tax |
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|
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 |
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|
$ in thousands |
March 31, 2017 |
March 31, 2016 |
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|
Average Balances |
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|
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 |
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|
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 |
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|
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 |
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|
Nonperforming Assets |
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|
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 |
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|
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 | % | ||||