BLACKSBURG, VA, OCTOBER 13, 2011: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today announced that it had net income of nearly $4.51 million in the third quarter of 2011, an increase of 12.81% over the nearly $4.0 million reported for the same period of 2010. The financial holding company posted net income of $12.75 million for the nine months ended September 30, 2011, up by $987 thousand, or 8.39%, when compared with net income for the first nine months in 2010. Basic net income per share for the third quarter of 2011 was $0.65, and it was $0.58 for the third quarter last year. For the first nine months of 2011, basic net income per share was $1.84, up from $1.70 per share for 2010. Total loans at September 30, 2011 were at $597.38 million, slightly higher than the $583.61 million in total loans at the end of the third quarter in 2010. National Bankshares had total assets of $1.04 billion at September 30, 2011, up 6.07% from total assets of $982.45 million at September 30, 2010. For the nine months ended September 30, 2011, the Company reported that the return on average assets was 1.66% compared to 1.60% for the nine months ended September 30, 2010, and the return on average equity was 12.62% compared to 12.32% for the nine months ended September 30, 2010.
National Bankshares' Chairman, President & CEO James G. Rakes said, "With interest rates remaining stable through the third quarter, we have been able to keep the net interest margin at a good level. This in turn has led to an increase in net interest income." Mr. Rakes continued, "While we remain vigilant on containing controllable costs, we continue to balance the increased regulatory burden with its related costs to our operations with the need to serve our customers and offer them the best products and services possible."
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.