BLACKSBURG, VA., October 17, 2019 – National Bankshares, Inc. (the “Company”) (NASDAQ: NKSH), parent company of The National Bank of Blacksburg, today reported net income of $4.25 million, or $0.65 per common share, for the quarter ended September 30, 2019. Net income was $12.69 million or $1.92 per common share, for the nine months ended September 30, 2019. At September 30, 2019, the Company had total assets of $1.27 billion.
Highlights for the Nine Months Ended September 30, 2019
- Net income increased $1.10 million from $11.59 million for the nine months ended September 30, 2018 to $12.69 million for the nine months ended September 30, 2019.
- Earnings per share increased $0.25 from $1.67 for the nine months ended September 30, 2018 to $1.92 for the nine months ended September 30, 2019.
- Return on average assets increased to 1.34% for the nine months ended September 30, 2019, from 1.28% for the nine months ended September 30, 2018.
- Return on average equity increased to 9.13% for the nine months ended September 30, 2019, from 8.61% for the nine months ended September 30, 2018.
- In spite of curtailments totaling more than $10 million, net loans increased $20.90 million or 3.01% from September 30, 2018 to $715.03 million as of September 30, 2019.
- The Company repurchased 16,000 common shares during the third quarter.
“National Bankshares continues to perform well in 2019 with another strong quarterly result,” said F. Brad Denardo, Chairman, President and CEO. “We believe that our focus on making quality loans, providing outstanding customer service and increasing efficiencies will allow us to deliver above-average results for our shareholders now and well into the future.”
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%. 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
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.