BLACKSBURG, VA., July 18, 2019 -- National Bankshares, Inc. (NASDAQ: NKSH), parent company of The National Bank of Blacksburg, today announced its results of operations for the second quarter and first half of 2019. The Company reported net income of $8.44 million, or $1.26 per common share, for the six months ended June 30, 2019. National Bankshares, Inc. ended the first half of 2019 with total assets of $1.27 billion.
First Half 2019 Highlights
- Net income increased $1.10 million from $7.34 million for the six months ended June 30, 2018 to $8.44 million for the six months ended June 30, 2019.
- Earnings per share increased $0.21 from $1.05 for the six months ended June 30, 2018 to $1.26 for the six months ended June 30, 2019.
- Return on average assets increased to 1.32% for the six months ended June 30, 2019, from 1.30% for the six months ended June 30, 2018.
- Return on average equity increased to 8.97% for the six months ended June 30, 2019, from 8.81% for the six months ended June 30, 2018.
- Net loans increased $38.97 million or 5.70% from June 30, 2018 to $722.26 million as of June 30, 2019.
F. Brad Denardo, Chairman, President and CEO, commented, “The first half of 2019 was another good period for Bankshares, with solid growth in earnings and loans. While our proven business model continues to deliver good results, we’re also committing time and resources to new initiatives as we adapt and grow in a changing marketplace. Our recent move to a newly-renovated branch location in downtown Abingdon, Virginia is just one example of this commitment to continually improve our organization for the benefit of our customers, communities and shareholders.”
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 measures 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.
Forward-Looking Statements
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.