National Bankshares Inc. (NKSH, Financial) filed Quarterly Report for the period ended 2010-09-30.
National Bankshares Inc. has a market cap of $181.1 million; its shares were traded at around $26.38 with a P/E ratio of 11.6 and P/S ratio of 3.2. The dividend yield of National Bankshares Inc. stocks is 3.2%. National Bankshares Inc. had an annual average earning growth of 7.4% over the past 10 years.
Securities declined by $14,957, or 5.03%, from $297,417 at December 31, 2009 to $282,460 at September 30, 2010. Net loans at September 30, 2010 were $574,840, down $8,181, or 1.4%, from $583,021 at December 31, 2009. Deposits declined slightly, from $852,112 at year-end to $841,856 at September 30, 2010, a decrease of $10,256, or 1.2%. Total assets were $982,367 at December 31, 2009 and were $982,447 at September 30, 2010, an increase of $80, or 0.01%.
Total nonperforming loans at September 30, 2010 were $7,639, which compares to $6,750 at December 31, 2009 and $3,888 at September 30, 2009. All restructured loans are included in nonaccrual loans, and nonaccrual loans make up the nonperforming loans category. At September 30, 2010, the ratio of nonperforming loans to loans net of unearned income and deferred fees was 1.82%.
Given the prolonged recession and the slow recovery of the national and local economies, the increase in nonperforming loans was not unexpected. The higher level of nonperforming loans impacted both the amount of the provision for loan losses and the net charge-off ratio. Among other factors, the total of nonperforming loans is considered in calculating the Company s allowance for loan losses, which in turn determines the amount needed in the provision for loan losses. The provision for loan losses for the nine months ended September 30, 2009 was $953, and it was $2,209 for the nine months ended September 30, 2010. This represents an increase of $1,256, or 131.79%, when the two periods are compared. At September 30, 2010, the ratio of the allowance for loan losses to loans was 1.34%, and it was 1.17% at December 31, 2009 and 1.11% at September 30, 2009. The net charge-off ratio was 0.31% at September 30, 2010, 0.10% at December 31, 2009 and 0.08% at September 30, 2009. Management anticipates that loan charge-offs will continue to increase in the final quarter of 2010. However, because known nonperforming loans have already been included in the calculation for the allowance for loan losses and further additions to the provision for loan losses are expected to be the result of the refinement of loss estimates, management does not believe that net income will be dramatically affected by these losses.
Loans past due 90 days or more and still acruing declined to $533 at September 30, 2010, from $1,697 at December 31, 2009 and $2,153 at September 30, 2009. The decline is the result of loans being charged-off or placed on nonaccrual status. Collateral that previously secured some charged-off loans is now in other real estate owned because of foreclosure or deeds in lieu of foreclosure. The total of other real estate owned grew to $3,026 at September 30, 2010, from $2,126 at December 31, 2009 and $1,944 at September 30, 2009. Because of the level of nonperforming loans, it is likely that the total of other real estate owned will increase in the final quarter of 2010, as the real estate collateral associated with some of these loans is acquired in foreclosure. It is not possible to accurately predict the future total of other real estate owned, because property sold at foreclosure may be acquired by third parties and NBB s other real estate owned properties are regularly marketed and sold.
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National Bankshares Inc. has a market cap of $181.1 million; its shares were traded at around $26.38 with a P/E ratio of 11.6 and P/S ratio of 3.2. The dividend yield of National Bankshares Inc. stocks is 3.2%. National Bankshares Inc. had an annual average earning growth of 7.4% over the past 10 years.
Highlight of Business Operations:
The noninterest margin remained relatively stable, decreasing 4 basis points from 1.55% at December 31, 2009 to 1.51% at September 30, 2010. The provision for loan losses for the nine months ended September 30, 2010 was $2,209, an increase of $1,256 from the $953 at September 30, 2009. See the discussion of “Asset Quality” in this report for additional information about the provision for loan losses.Securities declined by $14,957, or 5.03%, from $297,417 at December 31, 2009 to $282,460 at September 30, 2010. Net loans at September 30, 2010 were $574,840, down $8,181, or 1.4%, from $583,021 at December 31, 2009. Deposits declined slightly, from $852,112 at year-end to $841,856 at September 30, 2010, a decrease of $10,256, or 1.2%. Total assets were $982,367 at December 31, 2009 and were $982,447 at September 30, 2010, an increase of $80, or 0.01%.
Total nonperforming loans at September 30, 2010 were $7,639, which compares to $6,750 at December 31, 2009 and $3,888 at September 30, 2009. All restructured loans are included in nonaccrual loans, and nonaccrual loans make up the nonperforming loans category. At September 30, 2010, the ratio of nonperforming loans to loans net of unearned income and deferred fees was 1.82%.
Given the prolonged recession and the slow recovery of the national and local economies, the increase in nonperforming loans was not unexpected. The higher level of nonperforming loans impacted both the amount of the provision for loan losses and the net charge-off ratio. Among other factors, the total of nonperforming loans is considered in calculating the Company s allowance for loan losses, which in turn determines the amount needed in the provision for loan losses. The provision for loan losses for the nine months ended September 30, 2009 was $953, and it was $2,209 for the nine months ended September 30, 2010. This represents an increase of $1,256, or 131.79%, when the two periods are compared. At September 30, 2010, the ratio of the allowance for loan losses to loans was 1.34%, and it was 1.17% at December 31, 2009 and 1.11% at September 30, 2009. The net charge-off ratio was 0.31% at September 30, 2010, 0.10% at December 31, 2009 and 0.08% at September 30, 2009. Management anticipates that loan charge-offs will continue to increase in the final quarter of 2010. However, because known nonperforming loans have already been included in the calculation for the allowance for loan losses and further additions to the provision for loan losses are expected to be the result of the refinement of loss estimates, management does not believe that net income will be dramatically affected by these losses.
Loans past due 90 days or more and still acruing declined to $533 at September 30, 2010, from $1,697 at December 31, 2009 and $2,153 at September 30, 2009. The decline is the result of loans being charged-off or placed on nonaccrual status. Collateral that previously secured some charged-off loans is now in other real estate owned because of foreclosure or deeds in lieu of foreclosure. The total of other real estate owned grew to $3,026 at September 30, 2010, from $2,126 at December 31, 2009 and $1,944 at September 30, 2009. Because of the level of nonperforming loans, it is likely that the total of other real estate owned will increase in the final quarter of 2010, as the real estate collateral associated with some of these loans is acquired in foreclosure. It is not possible to accurately predict the future total of other real estate owned, because property sold at foreclosure may be acquired by third parties and NBB s other real estate owned properties are regularly marketed and sold.
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