BLACKSBURG, VA, FEBRUARY 20, 2014: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today announced that it had record net income of $17.79 million for the twelve months ended December 31, 2013, an increase over the nearly $17.75 million earned in 2012. The 2013 return on average assets and return on average equity were 1.63% and 11.90%, respectively. Basic earnings per share in 2013 remained consistent with the prior year at $2.56. National Bankshares, Inc. ended 2013 with total assets of over $1.11 billion.
Commenting on the Company’s financial results, National Bankshares Chairman, President & CEO James G. Rakes said, “We are pleased to report another year of strong earnings. In 2013, we showed an improvement in credit quality as the decrease in net charge-offs indicates. Growth in quality loans remains the key initiative in what remains a less than vibrant market area economy, but we will continue to focus on that growth as well as credit quality and solid expense management. The Company remains a strong institution and is well-positioned to grow in 2014 and beyond.”
Mr. Rakes continued, “We also were pleased to return profits to our stockholders in the form of dividends of $1.12 per share in 2013 compared to $1.10 in 2012. This per share dividend payment amount resulted in a dividend payout ratio of 43.74% in 2013 compared to 43.04% in 2012.”
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.