National Bankshares, Inc. Releases Earnings for 2007
BLACKSBURG, VA, FEBRUARY 7, 2008: National Bankshares,
Inc. (NASDAQ Capital Market: NKSH) today reported 2007 net income of
nearly $12.68 million, up slightly over the $12.63 million earned in
2006. Because of higher earnings and the Company's previously announced
stock buyback program, basic net income per share increased from $1.80
in 2006 to $1.82 in 2007. Total assets at December 31, 2007 were nearly
$887.65 million, an increase of 2.24% over the same period in 2006.
Net loans grew to $518.44 million, an increase of 4.63% from 2006. For
2007, National Bankshares, Inc. had a return on average assets of 1.46%
and a return on average equity of 12.60%.
For the three months ending December 31, 2007, the Company posted net income of $3.22 million, a small increase over the $3.20 million earned in the fourth quarter of 2006. This translates to basic net income per share of $0.46 for both periods.
James G. Rakes, National Bankshares' Chairman, President & CEO, commented, "In these interesting times, I am pleased to report another solid year for National Bankshares. We were challenged with compression of the net interest margin during 2007, and we worked to overcome that challenge by adding quality loans to our portfolio and by controlling overhead costs. The 2006 merger of our two bank subsidiaries resulted in nice savings for 2007 in both occupancy expense and salary and benefits costs. Loan quality remained very good when viewed from a historical perspective. We did, however, make regular additions to the provision for loan losses during the year, both because of growth in net loans and because of an increase in total nonperforming assets from 2006's very low level." Mr. Rakes went on to say, "We continued to invest in the Company's technology infrastructure last year. We believe that it is important to have a solid platform from which to offer customers a full range of products and services. But we think it is even more important for our customers to have a trusted person to help them with their financial transactions. It is this relationship-based business philosophy that has guided us since the founding of National Bank in 1891 and will continue to guide us in the future."
National Bankshares, Inc. is a financial holding company that is the parent of the National Bank of Blacksburg, which does business as National Bank from 26 office locations throughout Southwest Virginia. The Company, which is headquartered in Blacksburg, Virginia, also has a financial services subsidiary, National Bankshares Financial Services, Inc., doing business in the same market as National Bankshares Investment Services and National Bankshares Insurance Services. Company stock is traded on the NASDAQ Capital Market under the symbol "NKSH".