BLACKSBURG, VA, FEBRUARY 9, 2012: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today announced that it had record net income approaching $17.64 million for the twelve months ended December 31, 2011, a 13.29% increase over the nearly $15.57 million earned in 2010. The return on average assets for 2011 was 1.71% and the return on average equity was 12.89%. This compares to 1.57% and 12.07%, respectively, for 2010. Basic earnings per share were $2.54 in 2011 compared to $2.25 for 2010. National Bankshares, Inc. ended 2011 with total assets of almost $1.07 billion, up by 4.39% over the roughly $1.02 billion in total assets reported at December 31, 2010.
For the three months ended December 31, 2011, National Bankshares, Inc. had net income of close to $4.89 million, up from the nearly $3.81 million for the same three month period of 2010. Net interest income increased from $9.66 million for the fourth quarter of 2010 compared to $10.25 million for the last three months of 2011.
Commenting on the Company’s financial results for 2011, National Bankshares Chairman, President & CEO James G. Rakes said, “During our 120th anniversary year of the founding of National Bank, we were able to maintain strong core earnings despite continued challenges in the national and local economies that affect loan growth. Our subsidiary bank maintained its traditional community bank values and focus while finding ways to control costs despite the increased regulatory burden resulting from compliance with additional laws and regulations. Our 2011 record earnings were enhanced by an increase in net interest income, which was driven by an improved net interest margin. Equally important, the quality of our loan portfolio has shown improvement in 2011.”
Mr. Rakes continued, “In 2011, we were pleased to be able to share the Company’s positive operating results with our shareholders in the form of dividends of $1.00 per share in 2011 compared to $0.91 in 2010. We remain committed to serving our customers and communities in 2012 and continue working hard to find ways to increase yields on earning assets while containing controllable costs.”
National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of 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 offices 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.”
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.