National Bankshares (NKSH) has reported 8.84 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $3.83 million, or $0.55 a share in the quarter, compared with $4.20 million, or $0.60 a share for the same period last year.
Revenue during the quarter dropped 4.48 percent to $11.33 million from $11.86 million in the previous year period. Net interest income for the quarter dropped 6.29 percent over the prior year period to $9.14 million. Non-interest income for the quarter rose 8.53 percent over the last year period to $2.48 million.
National Bankshares has made provision of $0.29 million for loan losses during the quarter, up 63.48 percent from $0.18 million in the same period last year.
Net interest margin contracted 41 basis points to 3.48 percent in the quarter from 3.89 percent in the last year period. Efficiency ratio for the quarter deteriorated to 53.10 percent from 48.76 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Commenting on the company's financial results, National Bankshares' chairman, president & chief executive officer James G. Rakes said, "We continue to grow our asset and deposit base in a steady, consistent manner by making quality loans and providing superior customer service. We've also seen positive results from our efforts to increase noninterest income and improve overall efficiency. While we still face a challenging interest rate environment, we continue to invest in the people, technology and infrastructure that will position National Bankshares for long-term growth and increased profitability."
Assets outpace liabilities growthTotal assets stood at $1,203.18 million as on Sep. 30, 2016, up 5.16 percent compared with $1,144.12 million on Sep. 30, 2015. On the other hand, total liabilities stood at $1,019.04 million as on Sep. 30, 2016, up 5.08 percent from $969.73 million on Sep. 30, 2015.
Loans outpace deposit growthNet loans stood at $627.94 million as on Sep. 30, 2016, up 1.67 percent compared with $617.64 million on Sep. 30, 2015. Deposits stood at $1,010.01 million as on Sep. 30, 2016, up 4.93 percent compared with $962.53 million on Sep. 30, 2015. Investments stood at $430.49 million as on Sep. 30, 2016, up 17.30 percent or $63.49 million from year-ago. Shareholders equity stood at $184.14 million as on Sep. 30, 2016, up 5.59 percent or $9.75 million from year-ago.
Return on average assets moved down 19 basis points to 1.27 percent in the quarter from 1.46 percent in the last year period. At the same time, return on average equity decreased 134 basis points to 8.36 percent in the quarter from 9.70 percent in the last year period.
Nonperforming assets moved down 34.15 percent or $4.50 million to $8.68 million on Sep. 30, 2016 from $13.18 million on Sep. 30, 2015.
Average equity to average assets ratio was 14.93 percent for the quarter, up from 14.86 percent for the previous year quarter. Book value per share was $26.47 for the quarter, up 5.58 percent or $1.40 compared to $25.07 for the same period last year.
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