National Bankshares(US:NKSH)2024-04-25 20:34Financial Performance - National Bankshares, Inc. reported a net income of $2.17 million for Q1 2024, a decrease from $4.19 million in Q4 2023 and $4.53 million in Q1 2023, with earnings per share of $0.37[3] - Net income for the first quarter of 2024 was $2,174 thousand, a decrease of 48.0% from $4,185 thousand in the previous quarter[26] - Basic net income per common share decreased to $0.37 from $0.71 in the previous quarter, a decline of 47.89%[26] - Adjusted net income for the three months ended March 31, 2024, was $2,516 thousand, down 23.7% from $3,297 thousand in the same period last year[45] Asset and Deposit Growth - Total assets as of March 31, 2024, were $1.69 billion, reflecting the company's financial position[3] - Total assets increased to $1,689,206 thousand as of March 31, 2024, up from $1,655,370 thousand at December 31, 2023, representing a growth of 2.04%[24] - Total deposits increased to $1,537,808 thousand, up from $1,503,972 thousand at the end of 2023, representing a growth of 2.25%[24] - Stockholders' equity increased to $136,039 thousand as of March 31, 2024, compared to $118,257 thousand as of December 31, 2023, representing a growth of 15.0%[32] Income and Expense Analysis - Noninterest income for Q1 2024 was similar to Q1 2023 but decreased from Q4 2023, where a one-time payment of $232 thousand was recognized[10] - Noninterest expenses increased in Q1 2024 due to costs associated with the acquisition preparation, contrasting with reversals of accruals in Q4 2023[11] - Net interest income for the three months ended March 31, 2024, was $8,245 thousand, down from $8,480 thousand in the previous quarter, a decrease of 2.77%[26] - Noninterest income for the first quarter of 2024 was $2,199 thousand, slightly down from $2,254 thousand in the previous quarter[26] Loan and Asset Quality - Loan quality remains strong with low charge-off and past due levels, reflecting a favorable economic outlook[5] - Total loans reached $864,091 thousand, a slight increase from $857,175 thousand at the end of 2023, reflecting a growth of 0.11%[24] - Nonperforming assets decreased to $2,591 thousand as of March 31, 2024, from $2,629 thousand as of December 31, 2023, showing an improvement in asset quality[36] - The allowance for credit losses on loans to total loans ratio was 1.05% as of March 31, 2024, slightly down from 1.06% in the previous quarter[36] Strategic Initiatives - The company plans to acquire Frontier Community Bank in Q2 2024, which is expected to enhance growth opportunities in new markets[4] - The company announced a planned merger with Frontier Community Bank in January 2024, incurring merger-related expenses[41] Interest Income and Margin - Interest income increased compared to Q4 2023, driven by the Federal Reserve's interest rate hikes, with expectations for further improvement as assets reprice[4][7] - Total interest income rose to $16,021 thousand, compared to $15,513 thousand in the prior quarter, an increase of 3.27%[26] - The net interest margin for the three months ended March 31, 2024, was 2.08%, compared to 2.15% in the previous quarter[28] Operational Efficiency - The efficiency ratio increased to 68.10% for the three months ended March 31, 2024, compared to 61.08% in the previous quarter, indicating a decline in operational efficiency[32] - Return on average assets decreased to 0.59% for the three months ended March 31, 2024, down from 0.87% in the previous quarter[32]