BLACKSBURG, VA, OCTOBER 14, 2010: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today announced that it had net income of nearly $4.0 million in the third quarter of 2010, an increase of 5.74% over the $3.78 million reported for the same period of 2009. The financial holding company headquartered in Blacksburg, Virginia, posted net income of over $11.76 million for the nine months ended September 30, 2010, up by $1.24 million, or 11.76%, when compared with net income for the first nine months in 2009. Basic net income per share for the third quarter of 2010 was $0.58, and it was $0.55 for the third quarter last year. For the first nine months of 2010, basic net income per share was $1.70, up from $1.52 per share for 2009. Total loans at September 30, 2010 were at $583.61 million, slightly higher than the $582.76 million in total loans at the end of the third quarter in 2009. National Bankshares had total assets of nearly $982.45 million at September 30, 2010, and total assets of $965.89 million at September 30, 2009. The Company reported that the return on average assets was 1.60% and the return on average equity was 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 in a healthy range. This in turn has led to an increase in net interest income. We also maintain a focus on containing controllable costs. The end result is higher earnings through three quarters of the year." Mr. Rakes continued, "Our lenders are still working closely with some loan customers who are struggling in this difficult economy. We continue to fund the provision for loan losses at a prudent level as we look forward to a sustained recovery in our markets."
National Bankshares, Inc. is the parent company of the National Bank of Blacksburg, which does business as National Bank from 25 offices throughout Southwest Virginia. It also has an insurance and investments subsidiary, National Bankshares Financial Services, Inc., which operates in the same trade area. The Company's stock is traded on the NASDAQ Capital Market under the symbol "NKSH". Additional information is available at www.nationalbankshares.com
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.