National Bankshares(US:NKSH)2025-07-24 20:30Financial Performance - National Bankshares, Inc. reported net income of $5.53 million or $0.87 per diluted common share for the first half of 2025, a significant increase from $1.87 million or $0.31 per diluted common share in the same period of 2024[3] - Net income for the three months ended June 30, 2025, was $2,289,000, compared to a net loss of $307,000 in the same period last year[23] - Basic net income per common share for the three months ended June 30, 2025, was $0.36, compared to a loss of $0.05 per share in the same period last year[23] - Adjusted net income for Q2 2025 was $3,882, representing a 26.3% increase from $3,075 in Q1 2025 and a 44.1% increase from $2,695 in Q2 2024[47] - The annualized net income for ratio calculation for Q2 2025 was $13,978, up from $12,632 in Q1 2025 and significantly higher than $7,837 in Q2 2024[47] Assets and Equity - Total assets as of June 30, 2025, were $1.81 billion, compared to $1.81 billion as of June 30, 2024[3] - Stockholders' equity increased to $168.74 million as of June 30, 2025, compared to $148.96 million in the same period of 2024[21] - Total stockholders' equity increased to $166,971 thousand as of June 30, 2025, compared to $137,873 thousand a year ago, representing a growth of 21.14%[31] - Tangible common equity (non-GAAP) increased to $156,347 as of June 30, 2025, compared to $154,794 as of March 31, 2025, and $136,165 a year ago[50] Loans and Deposits - Loans increased to $1.01 billion as of June 30, 2025, driven by growth in consumer real estate and consumer non-real estate loans[14] - Total deposits reached $1,635,780 thousand as of June 30, 2025, an increase from $1,563,130 thousand in June 2024, marking a growth of 4.62%[31] - Loans, gross, reached $1,008,420 thousand for the three months ended June 30, 2025, compared to $904,399 thousand in the same period last year, reflecting a growth of 11.51%[31] Income and Expenses - The company experienced higher interest income from repriced loans, lower deposit costs, and steady loan growth contributing to improved net interest income[4] - Total interest income for the three months ended June 30, 2025, was $18,537,000, an increase of 8.4% from $17,095,000 in the same period last year[23] - Net interest income after provision for credit losses for the three months ended June 30, 2025, was $10,955,000, up 48.5% from $7,375,000 year-over-year[23] - Total noninterest expense increased to $10,583,000 for the three months ended June 30, 2025, from $10,127,000 a year ago, representing a rise of 4.5%[23] - Noninterest income increased due to higher service charges on deposits and growth in bank-owned life insurance (BOLI) income, reflecting the impact of the Frontier Community Bank acquisition[8] Credit Quality - The provision for credit losses for the six months ended June 30, 2025, was $312,000, significantly lower than $1,292,000 in the same period last year, indicating improved credit quality[25] - Nonperforming loans as a percentage of total loans decreased to 0.21% as of June 30, 2025, compared to 0.25% a year ago, reflecting improved asset quality[39] - The allowance for credit losses on loans to total loans was 1.03% as of June 30, 2025, slightly down from 1.06% in June 2024, indicating stable credit risk management[39] Efficiency and Profitability - The efficiency ratio improved to 63.68% for the three months ended June 30, 2025, down from 65.81% in the previous quarter and 68.80% a year ago, indicating better cost management[31] - The return on average assets improved to 0.77% for the three months ended June 30, 2025, compared to 0.69% in the previous quarter and 0.46% a year ago[31] - The net interest margin improved to 2.49% for the six months ended June 30, 2025, compared to 2.10% in the same period of 2024, indicating enhanced profitability from interest-earning assets[29] - The net interest margin for Q2 2025 improved to 2.56%, up from 2.41% in Q1 2025 and 2.13% in Q2 2024[46] Dividends - The company paid a dividend of $0.73 to shareholders on June 1, 2025[15] - Dividends declared per common share remained stable at $0.73 for both the three and six months ended June 30, 2025, consistent with the previous year[25] Acquisitions and Technology - The company acquired Frontier Community Bank on June 1, 2024, which added $118.7 million in loans and $129.7 million in customer deposits[5] - The company upgraded to a new core banking system, enhancing technology across its operations[4]