National Bankshares(US:NKSH)2025-01-23 21:30Financial Performance - National Bankshares, Inc. reported a net income of $7.62 million or $1.24 per share for the year ended December 31, 2024, and $3.08 million or $0.48 per share for the fourth quarter[2]. - Net income for the quarter was $3,079,000, compared to $4,185,000 in the same quarter last year, a decrease of 26.4%[22]. - Basic net income per common share was $0.48, up from $0.71 in the same quarter last year, reflecting a decrease of 32.4%[22]. - Adjusted net income for the year was $12,142, down from $13,080 in 2023[46]. Asset and Deposit Growth - Total assets increased to $1,811,636,000 as of December 31, 2024, up from $1,655,370,000 a year earlier, representing a growth of 9.45%[20]. - Total deposits rose to $1,644,752,000, up from $1,503,972,000 a year ago, marking an increase of 9.34%[20]. - Total deposits increased to $1,622,653 thousand as of December 31, 2024, compared to $1,481,154 thousand in the same period last year[31]. - Total deposits rose to $1,583,113, an increase of 7.57% compared to $1,471,847 in 2023[35]. Loan and Credit Metrics - Loans decreased as of December 31, 2024, compared to September 30, 2024, primarily due to payoffs of real estate construction loans, with low credit risk metrics maintained[14]. - Total loans decreased slightly to $988,613,000 from $1,002,241,000 in the previous quarter, a decline of 1.25%[20]. - The provision for credit losses showed a recovery of $60,000, compared to a loss of $893,000 in the same quarter last year[22]. - The allowance for credit losses on loans to total loans ratio remained stable at 1.04% compared to 1.06% in 2023[38]. Income and Expense Analysis - Noninterest income for the year increased due to service charges on deposits and trust income, while credit and debit card fees decreased due to higher processing costs[7]. - Noninterest expense increased in 2024 compared to 2023, primarily due to the FCB acquisition and contract termination expenses[9]. - Total noninterest expense increased to $8,620,000 from $6,563,000 in the same quarter last year, an increase of 31.2%[22]. - The efficiency ratio improved to 68.84% for the three months ended December 31, 2024, compared to 69.80% in the previous quarter[31]. Acquisition and Strategic Initiatives - The company completed the acquisition of Frontier Community Bank on June 1, 2024, recording assets of $153.39 million and deposits of $129.72 million[4]. - Stockholders' equity increased due to the FCB acquisition, with regular dividends of $1.51 per common share paid in 2024[15]. - The company is committed to enhancing customer experience through an enterprise system upgrade and has recruited new bankers to support future growth[3]. Interest and Margin Analysis - The net interest margin for the year ended December 31, 2024, decreased compared to 2023 due to higher deposit costs, but improved in Q4 2024 compared to Q3 2024 following a 100 basis point decrease by the Federal Reserve[5]. - Net interest income for the quarter was $10,004,000, an increase from $8,480,000 in the same quarter last year, reflecting a growth of 17.9%[22]. - Total interest-earning assets for the three months ended December 31, 2024, were $1,743,084 thousand, with net interest income of $10,243 thousand and a net interest margin of 2.34%[25]. - The net interest margin for the year ended December 31, 2024, was 2.19%, compared to 2.38% for the previous year[29].