National Bankshares(US:NKSH)2023-11-08 15:11Financial Performance - Net income for the three months ended September 30, 2023, was $3,074 thousand, a decrease of 50.1% compared to $6,162 thousand for the same period in 2022[11]. - Basic net income per common share for the three months ended September 30, 2023, was $0.52, down from $1.03 in the same period of 2022, a decrease of 49.5%[11]. - For the nine months ended September 30, 2023, net income was $11,506 thousand, a decrease of 30.7% from $16,622 thousand in the same period of 2022[16]. - The net income for the nine months ended September 30, 2023, is $11,506,000, down from $16,622,000 for the same period in 2022, representing a decrease of about 30.5%[25]. - NBI's net income for the three months ended September 30, 2023, was $3.074 million, down from $6.162 million in the same period of 2022, reflecting a decrease of 50%[160]. - Diluted earnings per share for the nine months ended September 30, 2023, was $1.95, a decrease of 29.5% compared to $2.77 in 2022[135]. Asset and Deposit Changes - Total assets decreased to $1,591,902 thousand as of September 30, 2023, down from $1,677,551 thousand at December 31, 2022, representing a decline of approximately 5.1%[8]. - Total deposits decreased to $1,465,000 thousand as of September 30, 2023, from $1,542,725 thousand at December 31, 2022, a decline of approximately 5.0%[8]. - Loans, net decreased slightly by 0.44% from $852,744 million on December 31, 2022, to $848,975 million on September 30, 2023[205]. - Time deposits increased significantly by 177.82% from $67,629 million on December 31, 2022, to $187,885 million on September 30, 2023[206]. Income and Expense Analysis - Total interest income increased to $14,679 thousand for the three months ended September 30, 2023, up 11.5% from $13,155 thousand in the same period of 2022[11]. - Net interest income after provision for credit losses was $9,041 thousand for the three months ended September 30, 2023, down 25.5% from $12,150 thousand in the prior year[11]. - Noninterest expense increased to $7,465 thousand for the three months ended September 30, 2023, up 10.9% from $6,736 thousand in the same period of 2022[11]. - Total noninterest income for the three months ended September 30, 2023, was $2,115 million, a slight decrease of 1.2% from $2,140 million in the same period of 2022[124]. - Noninterest expense for the nine months ended September 30, 2023 was $22,686 million, up from $19,660 million in the same period of 2022[160]. Credit Losses and Allowances - The total allowance for credit losses on loans reached $10,181 million as of September 30, 2023, up from $8,225 million at the end of 2022[61]. - The provision for credit losses for the nine months ended September 30, 2023, was a recovery of $389 million, indicating improved credit quality[61]. - The net charge-off ratio was 0.00% as of September 30, 2023, compared to 0.03% at the end of 2022, indicating improved asset quality[178]. - The ratio of nonperforming assets to loans was 0.43% as of September 30, 2023, slightly down from 0.44% at the end of 2022, reflecting stable asset quality[178]. Securities and Investments - The total amount of equity lines was $16,654 million as of September 30, 2023, compared to $15,026 million as of December 31, 2022[57]. - The gross unrealized losses on securities available for sale totaled $110,531 million as of September 30, 2023, compared to $103,152 million as of December 31, 2022[84]. - The Company reported a loss on sales of securities available for sale of $3,332,000 in 2023, while there was no loss reported for the same period in 2022[25]. - The fair value of securities available for sale was $591,552 as of September 30, 2023, all classified under Level 2[113]. Operational Efficiency - The efficiency ratio increased to 67.96% in Q3 2023, compared to 45.59% in Q3 2022[160]. - The adjusted return on average assets for the three months ended September 30, 2023, was 0.71%, compared to 1.41% for the same period in 2022[152]. - The net interest margin for the three months ended September 30, 2023, was 2.23%, down from 2.95% in the same period of 2022[155]. Future Outlook and Strategic Initiatives - NBI plans to open a new full-service branch in Roanoke, Virginia, in 2024, expanding its loan production office in the Roanoke Valley[143]. - The company continues to monitor risk levels within the loan portfolio, particularly in light of potential economic downturns affecting real estate values[199].