National Bankshares (NKSH) has reported 3.44 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $3.65 million, or $0.52 a share in the quarter, compared with $3.78 million, or $0.54 a share for the same period last year. Revenue during the quarter went up marginally by 0.87 percent to $11.66 million from $11.55 million in the previous year period. Net interest income for the quarter dropped 2.19 percent over the prior year period to $9.21 million. Non-interest income for the quarter rose 6.96 percent over the last year period to $2.50 million.
National Bankshares has made provision of $0.06 million for loan losses during the quarter, down 70.94 percent from $0.20 million in the same period last year.
Net interest margin contracted 17 basis points to 3.49 percent in the quarter from 3.66 percent in the last year period. Efficiency ratio for the quarter deteriorated to 55.27 percent from 52.85 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
“The first quarter of 2017 saw improvements in several key areas, despite the low interest rate environment that continues to pressure earnings,” said National Bankshares Chairman, president and chief executive officer James G. Rakes. “While net income was down compared to the same period in 2016, we were pleased to see steady growth in net loans, improved asset quality, and increased noninterest income. Moving forward in 2017 we remain focused on providing the highest level of personalized financial service for our customers while we pursue opportunities to grow the bank and increase profitability."
Liabilities outpace assets growthTotal assets stood at $1,243.13 million as on Mar. 31, 2017, up 2.92 percent compared with $1,207.87 million on Mar. 31, 2016. On the other hand, total liabilities stood at $1,060.14 million as on Mar. 31, 2017, up 3.06 percent from $1,028.64 million on Mar. 31, 2016.
Loans outpace deposit growthNet loans stood at $644.05 million as on Mar. 31, 2017, up 7.43 percent compared with $599.54 million on Mar. 31, 2016. Deposits stood at $1,046.48 million as on Mar. 31, 2017, up 2.75 percent compared with $1,018.51 million on Mar. 31, 2016. Investments stood at $439.17 million as on Mar. 31, 2017, up 5.59 percent or $23.24 million from year-ago. Shareholders equity stood at $182.99 million as on Mar. 31, 2017, up 2.09 percent or $3.75 million from year-ago.
Return on average assets moved down 7 basis points to 1.21 percent in the quarter from 1.28 percent in the last year period. At the same time, return on average equity decreased 44 basis points to 8.20 percent in the quarter from 8.64 percent in the last year period.
Nonperforming assets moved down 13.83 percent or $1.38 million to $8.63 million on Mar. 31, 2017 from $10.02 million on Mar. 31, 2016.
Average equity to average assets ratio was 14.74 percent for the quarter, down from 14.81 percent for the previous year quarter. Book value per share was $26.30 for the quarter, up 2.10 percent or $0.54 compared to $25.76 for the same period last year.
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