BLACKSBURG, VA, FEBRUARY 25, 2016: National Bankshares, Inc.
(NASDAQ Capital Market: NKSH
) today announced its results of operations for the three and twelve months ended December 31, 2015. The Company reported net income of $15.83 million for the twelve months ended December 31, 2015, a decrease from the $16.91 million earned in 2014. The 2015 return on average assets and return on average equity were 1.37% and 9.22%, respectively. Basic earnings per share in 2015 were $2.28. National Bankshares, Inc. ended 2015 with total assets of almost $1.20 billion.
Commenting on the Company’s financial results, National Bankshares Chairman, President & CEO James G. Rakes said, “As National Bank enters its 125th
year, we continue to deliver on our promise of successful community banking to our customers, employees and stockholders. In the fourth quarter of 2015, we experienced unanticipated write downs in loans that contributed to the lower net income. Among other expenses, we had increased employee benefit expenses, mostly the result of pension related costs. We are working hard to deploy our capital in the communities we serve while preserving asset quality and our strong capital legacy.”
Mr. Rakes continued, “We were pleased to return profits to our stockholders in the form of dividends of $1.14 per share in 2015. This per share dividend payment amount resulted in a dividend payout ratio of 50.09% in 2015 compared to 46.43% in 2014 and 43.74% in 2013.”
National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of The 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 26 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.