National Bankshares, Inc. Reports
Second Quarter Earnings
BLACKSBURG, VA, JULY 19, 2007: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) posted year-to-date net income of nearly $6.26 million on June 30, 2007, an increase over the $6.23 million earned at the end of the second quarter in 2006. Net income earned in the second quarter this year was $3.14 million, slightly behind the $3.23 million reported in the same period last year. These earnings figures translate to 2007 year-to-date basic net income per share of $0.90, as compared with $0.89 last year. Total assets at June 30 were nearly $877.10 million, up by 3.99% over total assets of $843.41 million on June 30, 2006. In a competitive loan market, total loans grew from $490.16 million at the same time last year to $503.12 million at the end of June 2007.
National Bankshares' Chairman, President & CEO James G. Rakes commented, "The Company has been able to compensate for the continued effects of compression in the net interest margin in three ways. First, the quality of the loan portfolio remains very good, so contributions to the provision for loan losses have been minimal. Second, noninterest income is up by 3.9% over last year. Finally, the May 2006 merger of our two subsidiary banks has produced savings in several expense categories, and total noninterest expense has declined from $10.90 million at June 30 last year to $10.76 million at the same point this year." Mr. Rakes added, "We believe that National Bankshares' history of profitability, together with our practice of sharing those profits with our stockholders in the form of fair dividends, will serve the Company and its stockholders well over time."
National Bankshares, Inc. is the parent company of National Bank, a 117 year-old community bank that operates from 26 offices throughout Southwest Virginia. The Company, which is headquartered in Blacksburg, Virginia, also has a non-bank subsidiary, National Bankshares Financial Services, Inc. which offers insurance and investment products. National Bankshares, Inc. stock trades on the NASDAQ Stock Market under the symbol "NKSH".