BLACKSBURG, Va., January 31, 2019 -- National Bankshares, Inc. (NASDAQ: NKSH), parent company of The National Bank of Blacksburg, today announced its results of operations for the quarter and year ended December 31, 2018. The Company reported net income of $16.15 million, or $2.32 per common share, for the year ended December 31, 2018. The Company also reported net income of $4.56 million, or $0.66 per common share, for the quarter ended December 31, 2018. National Bankshares, Inc. ended 2018 with total assets of $1.26 billion.
2018 Financial Highlights
- Net Income increased $2.06 million from $14.09 million for the year ended December 31, 2017 to $16.15 million for the year ended December 31, 2018.
- Earnings per share increased $0.29 from $2.03 for the year ended December 31, 2017 to $2.32 for the year ended December 31, 2018.
- Return on average assets increased to 1.29% for the year ended December 31, 2018, from 1.14% for the year ended December 31, 2017. Return on average equity increased to 8.65% for the year ended December 31, 2018, from 7.64% for the year ended December 31, 2017.
- Loans net of unearned income and deferred fees and costs increased $41.73 million or 6.25% from December 31, 2017 to $709.80 million as of December 31, 2018.
- The ratio of the allowance for loan losses to loans net of unearned income and deferred fees and costs decreased to 1.04% as of December 31, 2018, from 1.19% as of December 31 2017, due to improvements in asset quality and net charge-off trends.
F. Brad Denardo, President and CEO, commented, “We are pleased to report a substantial year-over-year increase in earnings for 2018. While the Tax Cuts and Jobs Act of 2017 was very beneficial for our bottom line, we are also encouraged by the underlying performance of the Company, with solid loan growth and improved asset quality contributing significantly to our profitability.”
Mr. Denardo added, “These higher earnings have enabled us to make substantial investments in key areas of the Company and to reward our shareholders with a dividend payment of $1.21 per share in 2018, up from $1.17 per share in 2017. We are optimistic about the future of National Bankshares and thankful for the ongoing support of our shareholders, customers and communities.”
Non-GAAP Financial Measures
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include the efficiency ratio and certain financial measures presented on a fully taxable-equivalent (“FTE”) basis. FTE basis is calculated using the federal statutory income tax rate of 21% for the periods after January 1, 2018 and 35% for the periods prior to January 1, 2018. The Company believes certain non-GAAP financial measures enhance the understanding of its business and performance. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measure prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.
About National Bankshares
National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of The National Bank of Blacksburg, which does business as National Bank, and of National Bankshares Financial Services, Inc. National Bank is a community bank operating from 25 full service offices and one loan production office throughout Southwest Virginia. National Bankshares Financial Services, Inc. is an investment and insurance subsidiary in the same trade area. The Company’s stock is traded on the NASDAQ Capital Market under the symbol “NKSH.” Additional information is available at www.nationalbankshares.com
Certain statements in this press release may be “forward-looking statements.” Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results that are not statements of historical fact and that involve significant risks and uncertainties. Although the Company believes that its expectations with regard to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual Company results will not differ materially from any future results implied by the forward-looking statements. Actual results may be materially different from past or anticipated results because of many factors, some of which may include changes in economic conditions, the interest rate environment, legislative and regulatory requirements, new products, competition, changes in the stock and bond markets and technology. The Company does not update any forward-looking statements that it may make.