BLACKSBURG, VA, JULY 15, 2010: National Bankshares, Inc. (NASDAQ Capital Market: NKSH) announced second quarter net income of nearly $4.0 million. This is a 19.03% increase over the nearly $3.36 million reported at June 30, 2009. For the six months ended June 30, 2010, the Company posted record net income of nearly $7.77 million, up by 15.14% over the record $6.74 million earned in the first six months last year. This translates to basic net income per share of $0.58 and $1.12 for the second quarter and the first six months of 2010, respectively. In 2009, basic net income per share was $0.48 for the second quarter and $0.97 for the first half of the year. Total loans of nearly $583.93 million at June 30, 2010 were slightly higher than the $577.23 million reported on June 30, 2009, but were slightly lower than the $591.01 million at December 31, 2009. At June 30, 2010, the Company had total assets of $994.88 million. This compares with $984.76 million at June 30, 2009 and $982.37 million on December 31, 2009. National Bankshares, Inc. had a return on average assets of 1.60% and a return on average equity of 12.41% for the six months ended June 30, 2010.
James G. Rakes, National Bankshares, Inc.’s Chairman, President and CEO, commented, “The stable interest rate environment during the first half of the year has helped us maintain a healthy net interest margin, which was 4.55% for the six months ended June 30. This, together with our ongoing emphasis on limiting controllable expenses, helped to generate nice earnings for the first half of 2010. We are working with some loan customers who are facing challenges in this struggling economy, and our subsidiary bank is dealing with a higher level of nonperforming loans. Fortunately however, nonperforming loan totals remain below those reported by our peers. We are looking forward to the day when the economic recovery arrives on the Main Streets of our trade area.”
National Bankshares, Inc. is a financial holding company with headquarters in Blacksburg, Virginia. It is the parent company of the National Bank of Blacksburg, which does business as National Bank from 25 offices throughout Southwest Virginia, and of National Bankshares Financial Services, Inc., an insurance and investments subsidiary in the same market. National Bankshares’ 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.