National Bankshares(US:NKSH)2024-11-13 21:40Financial Performance - Total interest income for the three months ended September 30, 2024, was $18,666,000, an increase of 27.0% compared to $14,679,000 for the same period in 2023[7]. - Net income for the three months ended September 30, 2024, was $2,676,000, a decrease of 12.9% from $3,074,000 in the same period of 2023[9]. - Total noninterest income for the three months ended September 30, 2024, was $2,272,000, an increase of 7.4% from $2,115,000 in the same period of 2023[8]. - Total noninterest expense for the three months ended September 30, 2024, was $8,499,000, up from $7,435,000 in the same period of 2023, indicating an increase of 14.3%[8]. - Basic net income per common share for the three months ended September 30, 2024, was $0.42, down from $0.52 in the same period of 2023, a decrease of 19.2%[8]. - Total comprehensive income for the three months ended September 30, 2024, was $18,791,000, compared to a loss of $12,347,000 in 2023[10]. - Net income for the nine months ended September 30, 2024, was $4,544 million, a decrease from $11,506 million in the same period of 2023[140]. - Adjusted net income for the nine months ended September 30, 2024, was $8,040 million, compared to $10,904 million in 2023[140]. Assets and Liabilities - Total assets increased by 7.83% to $1,785,033 as of September 30, 2024, from $1,655,370 as of December 31, 2023[176]. - Total liabilities and stockholders' equity reached $1,785,033,000 as of September 30, 2024, up from $1,655,370,000 at the end of 2023, marking an increase of 7.8%[5]. - The carrying amount of deposits was $1,602,953 million, with an estimated fair value of $1,292,876 million as of September 30, 2024[90]. - The total past due loans as of September 30, 2024, were $996,553, with 3,250 loans being 30 days past due, and 2,283 loans being nonaccrual or past due[43]. - The allowance for credit losses on loans increased to $10,328 as of September 30, 2024, compared to $9,094 at the end of 2023, reflecting a rise of approximately 13.5%[42]. Equity and Stockholder Information - Total stockholders' equity increased to $167,782,000 as of September 30, 2024, compared to $140,522,000 as of December 31, 2023, reflecting a growth of 19.4%[5]. - The weighted average number of common shares outstanding for the three months ended September 30, 2024, was 6,356,594, compared to 5,889,687 for the same period in 2023, reflecting an increase of 7.9%[8]. - Common stock and additional paid-in capital surged by 194.38% to $21,796 from $7,404 as of December 31, 2023[182]. Credit Losses and Provisions - The provision for credit losses for the nine months ended September 30, 2024, was $1,312 million, compared to a recovery of $267 million for the same period in 2023[48]. - The company reported a provision for credit losses of $1,287,000 for the nine months ended September 30, 2024, compared to a recovery of $368,000 in 2023[11]. - The net charge-off ratio was 0.04% for the three months ended September 30, 2024, compared to 0.02% for the same period in 2023[159]. Acquisition and Goodwill - The company acquired Frontier Community Bank for $14,299,000 during the reporting period[17]. - The provisional goodwill recognized from the acquisition was $4.874 million, reflecting expected management and operational synergies[30]. - The identifiable assets acquired from FCB were valued at $148.513 million, while the identifiable liabilities assumed were valued at $137.038 million, resulting in a provisional fair value of net assets acquired of $11.475 million[30]. Loan Portfolio and Performance - As of September 30, 2024, total loans amounted to $1,002,241, an increase from $857,175 as of December 31, 2023, representing a growth of approximately 16.9%[42]. - The net loans, after accounting for unearned income and deferred fees, reached $991,331, up from $847,552, indicating a growth of about 16.9%[42]. - The company achieved a total of $1.5 billion in new loans originated in the quarter[55]. - The total balance of collectively evaluated loans as of September 30, 2024, was $10,243 million, with $4,210 million in Commercial Real Estate[49]. Noninterest Income and Expenses - Noninterest income for the nine months ended September 30, 2024, reached $6,717 million, compared to $7,105 million for the same period in 2023, reflecting a decrease of 5.5%[107]. - Service charges on deposit accounts increased to $2,150 million for the nine months ended September 30, 2024, up from $1,871 million in 2023, representing a growth of 14.9%[107]. - Total noninterest expense for the nine months ended September 30, 2024, was $26,388 million, a 16.43% increase from $22,665 million in 2023[156]. Market and Economic Conditions - The Company is closely monitoring risks such as high inflation and U.S. monetary policy, which may impact customer demand for banking services and loan repayment capabilities[25]. - The Federal Reserve's interest rate cut of 50 basis points in September 2024 is expected to benefit deposit costs in Q4 2024, despite competitive pressures leading to higher costs in 2023[150]. Future Guidance - Future guidance indicates a projected growth in total loans by approximately 5% for the next quarter[55]. - The Company expects that the adoption of ASU 2023-09 will not have a material impact on its consolidated financial statements[26].