BLACKSBURG, VA., April 21, 2022 -- National Bankshares, Inc. (NASDAQ: NKSH), parent company of The National Bank of Blacksburg, today announced its results of operations for the first quarter of 2022. The Company reported net income of $4.89 million, or $0.81 per common share, for the quarter ended March 31, 2022. This compares to net income of $4.77 million, or $0.74 per common share, for the quarter ended March 31, 2021. National Bankshares, Inc. ended the first quarter of 2022 with total assets of $1.72 billion.
President and Chief Executive Officer F. Brad Denardo commented, “In the face of an uncertain economy, we are pleased to report a steady performance for the first quarter of 2022. Solid loan growth and improved efficiency were encouraging highlights in a period marked by significant fiscal pressures. I am proud of our community banking team, who continue to deliver results by putting our customers and communities first. We are very thankful for the support of our shareholders, whose continued investment helps make it all possible.”
Highlights for the Quarter Ended March 31, 2022
- The return on average assets for the three months ended March 31, 2022 was 1.11%, compared with 1.19% for the three months ended March 31, 2021.
- The return on average equity for the three months ended March 31, 2022 was 10.26%, up from 9.30% for the three months ended March 31, 2021.
- The cost of interest-bearing liabilities was 0.23% for the three months ended March 31, 2022, improved from 0.34% for the three months ended March 31, 2021.
- The yield on earning assets(1) decreased to 2.82% for the three months ended March 31, 2022, from 3.13% for the three months ended March 31, 2021.
- Our net interest margin(1) for the three months ended March 31, 2022 was 2.66%, down from 2.89% for the three months ended March 31, 2021.
Other Notable Information
- Total assets increased from March 31, 2021 by $153.29 million, or 9.78%, to $1.72 billion at March 31, 2022.
- Total deposits increased from March 31, 2021 by $185.17 million, or 13.63%, to $1.54 billion at March 31, 2022.
- Gross loans outstanding were $819.77 million at March 31, 2022, an increase of $38.53 million from March 31, 2021.
- Total stockholders’ equity at March 31, 2022 was $161.29 million, a decrease from $189.07 million at March 31, 2021. Accumulated other comprehensive loss, a component of total stockholders’ equity, decreased due to unrealized losses in the securities portfolio.
(1)Non-GAAP Financial Measures
- The Company repurchased 41,185 shares in the 1st quarter of 2022. We expect to continue to repurchase shares throughout 2022.
- Nonperforming loans as a percentage of total loans were 0.35% at March 31, 2022, down from 0.47% at March 31, 2021.
- The efficiency ratio(1) was 52.71% for the quarter ended March 31, 2022, an improvement from the 53.87% reported for the quarter ended March 31, 2021.
- The allowance for loan losses to total loans was 0.95% at March 31, 2022, down from 1.10% at March 31, 2021, a reflection of our continuing good credit quality.
- Net charge offs for the three months ended March 31, 2022 were $20 thousand, compared with a net recovery of $5 thousand for the quarter ended March 31, 2021.
- The book value per common share as of March 31, 2022 was $26.78, down from $29.98 as of March 31, 2021.
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 the net interest margin, which is presented on a fully taxable-equivalent (“FTE”) basis. Efficiency ratio is calculated as noninterest expense, less non-recurring items, divided by the sum of noninterest income and net interest income on an 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 24 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.