National Bankshares, Inc. and Subsidiaries
Consolidated Balance Sheet
(Undaudited)
 
 
 ($ in thousands, except for per share data)
 
March 31, 2011
   
March 31, 2010
   
December 31, 2010
 
 Assets
                 
 Cash and due from banks
  $ 11,800     $ 11,744     $ 9,858  
 Interest-bearing deposits
    55,674       55,706       69,400  
 Federal funds sold
    ---       ---       ---  
 Securities available for sale
    190,844       161,543       184,907  
 Securities held to maturity
    132,669       125,547       131,000  
                   Total securities
    323,513       287,090       315,907  
 Mortgage loans held for sale
    ---       1,358       2,460  
 Loans:
                       
      Real estate construction loans
    48,671       47,245       46,169  
      Real estate mortgage loans
    173,785       165,604       173,533  
      Commercial and industrial loans
    280,607       284,242       269,818  
      Consumer loans
    85,816       92,035       87,868  
                  Total loans
    588,879       589,126       577,388  
      Less: unearned income and deferred fees
    (977 )     (1,052 )     (945 )
                  Loans, net of unearned income and deferred fees
    587,902       588,074       576,443  
      Less: allowance for loan losses
    (8,245 )     (7,141 )     (7,664 )
                  Loans, net
    579,657       580,933       568,779  
 Bank premises and equipment, net
    10,366       10,729       10,470  
 Accrued interest receivable
    6,514       6,186       6,016  
 Other real estate owned
    2,222       2,567       1,723  
 Intangible assets
    11,272       12,355       11,543  
 Other assets
    25,645       24,276       26,082  
                 Total assets
  $ 1,026,663     $ 992,944     $ 1,022,238  
                         
 Liabilities and Stockholders' Equity
                       
 Noninterest-bearing deposits
  $ 136,769     $ 116,153     $ 131,540  
 Interest-bearing demand deposits
    372,470       325,214       365,040  
 Savings deposits
    58,273       53,977       55,800  
 Time deposits
    318,383       362,124       332,203  
                 Total deposits
    885,895       857,468       884,583  
 Other borrowed funds
    ---       ---       ---  
 Accrued interest payable
    260       392       257  
 Other liabilities
    6,843       8,580       8,211  
                Total liabilities
    892,998       866,440       893,051  
                         
 Stockholders' Equity
                       
 Preferred stock of no par value. Authorized 5,000,000 shares; none issued and outstanding
    ---       ---       ---  
 Common stock of $1.25 par value. Authorized 10,000,000 shares;  issued and outstanding  6,935,974 shares at March 31, 2011 and 6,933,474 at December 31, 2010
    8,670       8,667       8,667  
 Retained earnings
    127,218       117,670       123,161  
 Accumulated other comprehensive income (loss), net
    (2,223 )     167       (2,641 )
               Total stockholders' equity
    133,665       126,504       129,187  
 Total liabilities and stockholders' equity
  $ 1,026,663     $ 992,944     $ 1,022,238  
 
 
 
 

 
 
 
National Bankshares, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
 
 
   
Three Months Ended
   
March 31, 2011
   
March 31, 2010
 
 ($ in thousands, except for per share data)
           
 Interest Income
           
 Interest and fees on loans
  $ 9,095     $ 9,176  
 Interest on federal funds
    ---       ---  
 Interest on interest-bearing deposits
    32       19  
 Interest on securities  taxable
    1,662       1,443  
 Interest on securities  nontaxable
    1,676       1,602  
              Total interest income
    12,465       12,240  
                 
 Interest Expense
               
 Interest on time deposits of $100,000 or more
    561       946  
 Interest on other deposits
    1,818       2,033  
 Interest on borrowed funds
    ---       ---  
             Total interest expense
    2,379       2,979  
             Net interest income
    10,086       9,261  
 Provision for loan losses
    800       647  
             Net interest income after provision for loan losses
    9,286       8,614  
                 
 Noninterest Income
               
 Service charges on deposit accounts
    612       714  
 Other service charges and fees
    58       47  
 Credit card fees
    733       666  
 Trust income
    246       269  
 Bank-owned life insurance
    184       185  
 Other income
    91       104  
 Realized securities gains (losses), net
    10       (14 )
              Total noninterest income
    1,934       1,971  
                 
 Noninterest Expense
               
 Salaries and employee benefits
    2,904       2,856  
 Occupancy and furniture and fixtures
    423       491  
 Data processing and ATM
    444       357  
 FDIC assessment
    346       263  
 Credit card processing
    586       508  
 Intangibles and goodwill amortization
    271       271  
 Net costs of other real estate owned
    134       33  
 Franchise taxes
    242       239  
 Other operating expenses
    734       766  
              Total noninterest expense
    6,084       5,784  
 Income before income tax expense
    5,136       4,801  
 Income tax expense
    1,112       1,032  
             Net income
  $ 4,024     $ 3,769  
                 
 Basic net income per share
  $ 0.58     $ 0.54  
 Fully diluted net income per share
  $ 0.58     $ 0.54  
 Weighted average outstanding number of common shares
               
            Basic
    6,933,780       6,933,474  
            Diluted
    6,957,450       6,952,812  
 Dividends declared per share
    ---       ---  
 Dividend payout ratio
    ---       ---  
 Book value per share
  $ 19.27     $ 18.25  
 
 
 
 

 
 
 
Key Ratios and Other Data
(Unaudited)
 
 
   
Three Months Ended
 
Average Balances
 
March 31, 2011
   
March 31, 2010
 
Cash and due from banks
  $ 11,420     $ 11,197  
Interest-bearing deposits
    54,089       34,866  
Securities available for sale
    187,510       163,438  
Securities held to maturity
    132,322       125,448  
Mortgage loans held for sale
    696       619  
Gross loans
    585,444       589,379  
Loans, net
    576,614       581,296  
Intangible assets
    11,428       12,511  
Total assets
    1,016,979       971,844  
Total deposits
    877,294       838,697  
Other borrowings
    ---       ---  
Stockholders' equity
    131,191       124,529  
Interest-earning assets
    959,550       909,654  
Interest-bearing liabilities
    747,612       723,107  
                 
Financial ratios
               
Return on average assets
    1.60 %     1.57 %
Return on average equity
    12.44 %     12.27 %
Net interest margin
    4.68 %     4.57 %
Net interest income  fully taxable equivalent
  $ 11,066     $ 10,142  
Efficiency ratio
    46.84 %     47.70 %
Average equity to average assets
    12.90 %     12.81 %
                 
Allowance for loan losses
               
Beginning balance
  $ 7,664     $ 6,926  
Provision for losses
    800       647  
Charge-offs
    (243 )     (456 )
Recoveries
    24       24  
Ending balance
  $ 8,245     $ 7,141  
 
 
Asset Quality Data
(Unaudited)
 
 
Nonperforming assets
 
March 31, 2011
   
March 31, 2010
 
Nonaccrual loans
  $ 2,339     $ 7,743  
Restructured loans
    6,198       ---  
Total nonperforming loans
    8,537       7,743  
Other real estate owned
    2,222       2,567  
Total nonperforming assets
  $ 10,759     $ 10,310  
Loans 90 days or more past due
  $ 1,078     $ 2,217  
                 
Asset quality ratios
               
Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned
    1.82 %     1.75 %
Allowance for loan losses to total loans
    1.40 %     1.21 %
Allowance for loan losses to nonperforming loans
    96.58 %     92.23 %
Loans past due 90 days or more to loans net of unearned income and deferred fees
    0.18 %     0.38 %