National Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheet

($ in thousands)
 
(Unaudited)
   
(Audited)
 
 Assets
 
March 31,
2010
   
March 31,
2009
   
December 31,
2009
 
 Cash and due from banks
  $ 11,744     $ 13,603     $ 12,894  
 Interest-bearing deposits
    55,706       41,929       32,730  
 Federal funds sold
    ---       ---       ---  
 Securities available for sale
    161,543       166,007       168,041  
 Securities held to maturity
    125,547       134,484       129,376  
                   Total securities
    287,090       300,491       297,417  
 Mortgage loans held for sale
    1,358       998       126  
 Loans:
                       
      Real estate construction loans
    47,245       58,645       45,625  
      Real estate mortgage loans
    165,604       164,684       165,542  
      Commercial and industrial loans
    284,242       249,925       283,998  
      Consumer loans
    92,035       102,533       95,844  
                  Total loans
    589,126       575,787       591,009  
      Less: unearned income and deferred fees
    (1,052 )     (1,069 )     (1,062 )
                  Loans, net of unearned income and deferred fees
    588,074       574,718       589,947  
      Less: allowance for loan losses
    (7,141 )     (6,118 )     (6,926 )
                  Loans, net
    580,933       568,600       583,021  
 Bank premises and equipment, net
    10,729       11,070       10,628  
 Accrued interest receivable
    6,186       6,209       6,250  
 Other real estate owned
    2,567       1,918       2,126  
 Intangible assets
    12,355       13,441       12,626  
 Other assets
    24,276       21,528       24,549  
                 Total assets
  $ 992,944     $ 979,787     $ 982,367  
                         
 Liabilities and Stockholders' Equity
                       
 Noninterest-bearing deposits
  $ 116,153     $ 112,473     $ 122,549  
 Interest-bearing demand deposits
    325,214       285,218       310,629  
 Savings deposits
    53,977       49,178       51,622  
 Time deposits
    362,124       410,960       367,312  
                 Total deposits
    857,468       857,829       852,112  
 Other borrowed funds
    ---       51       ---  
 Accrued interest payable
    392       650       336  
 Other liabilities
    8,580       7,701       7,843  
                Total liabilities
    866,440       866,231       860,291  
                         
 Stockholders' Equity
                       
Preferred stock of no par value. Authorized 5,000,000 shares; none issued and outstanding
    ---       ---       ---  
Common stock of $1.25 par value. Authorized 10,000,000 shares;  issued and outstanding 6,933,474 shares at March 31, 2010, 6,929,474 shares at March 31, 2009 and 6,933,474 shares at December 31, 2009
    8,667       8,662       8,667  
 Retained earnings
    117,670       108,743       113,901  
 Accumulated comprehensive income
    167       (3,849 )     (492 )
               Total stockholders' equity
    126,504       113,556       122,076  
 Total liabilities and stockholders' equity
  $ 992,944     $ 979,787     $ 982,367  




 
 

 

National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)

   
Three Months Ended
 
   
March 31, 2010
   
March 31, 2009
 
($ in thousands, except for per share data)
           
Interest Income
           
Interest and fees on loans
  $ 9,176     $ 9,462  
Interest on federal funds
    ---       ---  
Interest on interest-bearing deposits
    19       24  
Interest on securities - taxable
    1,443       1,561  
Interest on securities - nontaxable
    1,602       1,531  
              Total interest income
    12,240       12,578  
                 
Interest Expense
               
Interest on time deposits of $100,000 or more
    946       1,491  
Interest on other deposits
    2,033       2,920  
Interest on borrowed funds
    ---       1  
             Total interest expense
    2,979       4,412  
             Net interest income
    9,261       8,166  
Provision for loan losses
    647       370  
             Net interest income after provision for loan losses
    8,614       7,796  
                 
Noninterest Income
               
Service charges on deposit accounts
    714       804  
Other service charges and fees
    47       73  
Credit card fees
    666       625  
Trust income
    269       276  
BOLI income
    185       172  
Other income
    104       77  
Realized securities gains (losses), net
    (14 )     80  
              Total noninterest income
    1,971       2,107  
                 
Noninterest Expense
               
Salaries and employee benefits
    2,856       2,831  
Occupancy and furniture and fixtures
    491       469  
Data processing and ATM
    357       322  
FDIC  assessment
    263       121  
Credit card processing
    508       463  
Intangibles and goodwill amortization
    271       278  
Net costs of other real estate owned
    33       60  
Franchise taxes
    239       227  
Other operating expenses
    766       859  
              Total noninterest expense
    5,784       5,630  
Income before income tax expense
    4,801       4,273  
Income tax expense
    1,032       886  
             Net income
  $ 3,769     $ 3,387  
                 
Basic net income per share
  $ 0.54     $ 0.49  
Fully diluted net income per share
  $ 0.54     $ 0.49  
Weighted average outstanding number of common shares
               
            Basic
    6,933,474       6,929,474  
            Diluted
    6,952,812       6,934,846  
Dividends declared per share
    ---       ---  
Dividend payout ratio
    ---       ---  
Book value per share
  $ 18.25     $ 16.39  


 
 

 

Key Ratios and Other Data
(Unaudited)

($ in thousands)
 
Three Months Ending
 
Average Balances
 
March 31, 2010
   
March 31, 2009
 
Cash and due from banks
  $ 11,197     $ 11,811  
Interest-bearing deposits
    34,866       41,121  
Securities available for sale
    163,438       160,767  
Securities held to maturity
    125,448       125,712  
Mortgage loans held for sale
    619       1,091  
Gross loans
    589,379       574,246  
Loans, net
    581,296       567,190  
Intangible assets
    12,511       13,601  
Total assets
    971,844       960,824  
Total deposits
    838,697       839,828  
Other borrowings
    ---       53  
Stockholders' equity
    124,529       113,111  
Interest-earning assets
    909,654       901,837  
Interest-bearing liabilities
    723,107       730,963  
                 
Financial Ratios
               
Return on average assets
    1.57 %     1.43 %
Return on average equity
    12.27 %     12.14 %
Net interest margin
    4.57 %     4.08 %
Net interest income - fully taxable equivalent
  $ 10,241     $ 9,077  
Efficiency ratio
    47.36 %     50.34 %
Average equity to average assets
    12.81 %     11.77 %
                 
($ in thousands)
               
Allowance for Loan Losses
               
Beginning balance
  $ 6,926     $ 5,858  
Provision for losses
    647       370  
Charge-offs
    (455 )     (123 )
Recoveries
    23       13  
Ending balance
  $ 7,141     $ 6,118  




Asset Quality Data
(Unaudited)

($ in thousands)
           
Nonperforming assets
 
March 31, 2010
   
March 31, 2009
 
Nonaccrual loans
  $ 7,743     $ 1,337  
Restructured loans
    ---       ---  
Total nonperforming loans
    7,743       1,337  
Other real estate owned
    2,567       1,918  
Total nonperforming assets
  $ 10,310     $ 3,255  
Loans 90 days or more past due
  $ 2,217     $ 1,607  
                 
Asset Quality Ratios
               
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned
    1.77 %     0.56 %
Allowance for loan losses to total loans
    1.21 %     1.06 %
Allowance for loan losses to nonperforming loans
    92.23 %     457.59 %
Loans past due 90 days or more to loans net of unearned income and deferred fees
    0.38 %     0.28 %