8-K
NATIONAL BANKSHARES INC (NKSH)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 4, 2021 (February 4, 2021)
National Bankshares, Inc.
(Exact name of Registrant as specified in its charter)
| Virginia | 0-15204 | 54-1375874 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) |
101 Hubbard Street
Blacksburg, VA 24060
(Address of principal executive offices)
(540) 951-6300
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report) Not applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | NKSH | NASDAQ |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
ITEM 2.02. RESULTS OF OPERATIONS, FINANCIAL STATEMENTS AND EXHIBITS
On February 4, 2021, National Bankshares, Inc. issued a press release announcing and commenting on its financial results for the year and quarter ended December 31, 2020. A copy of the press release is attached as Exhibit 99.1.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
| (d) Exhibits | |
|---|---|
| 99.1 | National Bankshares, Inc. Press Release, dated February 4, 2021. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
NATIONAL BANKSHARES, INC.
Date: February 4, 2021
| By: /s/ F. Brad Denardo |
|---|
| F. Brad Denardo<br><br> <br>Chairman, President & CEO |
Page 2 of 2 Pages
ex_224288.htm
Exhibit 99.1
FOR IMMEDIATE RELEASE
| CONTACTS: | F. Brad Denardo, Chairman, President & CEO | David K. Skeens, Treasurer & CFO |
|---|---|---|
| (540) 951-6213 bdenardo@nbbank.com | (540) 951-6347 dskeens@nbbank.com |
**** ,.
National Bankshares, Inc. Reports 2020 Earnings
BLACKSBURG, VA., February 4, 2021 -- National Bankshares, Inc. **** (NASDAQ: NKSH), parent company of The National Bank of Blacksburg, today announced its results of operations for the quarter and year ended December 31, 2020. The Company reported net income of $16.08 million, or $2.48 per common share, for the year ended December 31, 2020. This compares to net income of $17.47 million, or $2.65 per common share, for the year ended December 31, 2019. National Bankshares, Inc. ended 2020 with total assets of $1.52 billion.
Chairman, President, and Chief Executive Officer F. Brad Denardo commented, “Looking back on an extremely challenging year, I am very proud of the response of our employees in meeting the needs of our customers and communities, and thankful for the continued support of our customers and shareholders through these difficult times.”
“Despite the pandemic’s impact on the economy and our earnings , Bankshares was able to generate solid revenue and maintain good shareholder value in 2020. Our Company’s underlying strength allowed us to extend vital help to our customers and communities in 2020, and we are committed to continuing this support as we navigate the ongoing uncertainty. Moving forward, we are cautiously optimistic that the burdens of the panedemic will ease in the year ahead, and we look forward to serving our customers, our communities, and our sharholders in 2021 and beyond.”
Highlights for the Year Ended December 31 , 2020
In Light of the Pandemic
| - | To protect our employees and customers during the COVID-19 pandemic, we shifted to serving customers primarily through branch drive-thrus and digital channels and closed our branch office lobbies on March 20^th^. We continue to serve customers in person when requested and hope to reopen our lobbies sometime in 2021. |
|---|---|
| - | To aid our many business customers with pandemic related hardships, we modified or deferred payments in 2020 on 387 loans totaling $174.66 million. |
| --- | --- |
| - | Of the loans modified for pandemic related hardships, at December 31, 2020, 3 loans totaling $6.63 million remained in deferral and another 13 loans totaling $32.51 million remained on interest-only payments. |
| --- | --- |
| - | We participated in the Paycheck Protection Program and originated 813 loans grossing $58.22 million. The loans bear a contractual interest rate of 1%, bolstered by an origination fee to be recognized over the life of the loan. Loans that are forgiven or paid off prior to maturity result in recognition of the outstanding origination fee at the date of forgiveness or payoff. As of December 31, 2020, 242 loans with original amounts totaling $21.32 million had been forgiven or paid off. Contractual interest earned on PPP loans totaled $125 thousand, while net fees accreted to interest income totaled $747 thousand, and fees recognized at pay off or forgiveness totaled $619 thousand. Gross PPP loans totaling $36.90 million remain on the balance sheet. |
| --- | --- |
| - | The Company is participating in the next round of PPP loans. |
| --- | --- |
Income Statement
| - | Our net income of $16.08 million includes a loan loss provision of $1.99 million, an increase of $1.86 million over the provision for the year ended December 31, 2019. We will continue to closely monitor our loan portfolio for indications of heightened credit risk and the resulting need for any additional provision for loan losses. |
|---|
101 Hubbard Street / Blacksburg, Virginia 24060
P.O. Box 90002 / Blacksburg, Virginia 24062-9002
540 951-6300 / 800 552-4123
www.nationalbankshares.com
| - | During the first three quarters of 2020, we increased the provision for loan losses. The anaylsis of credit risk at December 31, 2020 would have permitted us to reverse some of the provision taken. However, we chose to maintain our surplus at the maximum amount allowed by policy and did not reverse any previously recorded provision. |
|---|---|
| - | During the first three quarters of 2020, pandemic-related payment deferrals and increased provision for loan loss negatively impacted income. During the fourth quarter, most of the deferred loans had returned to regular payment status, and fees from PPP loans resulted in increased quarterly income. The return on average assets steadily improved after the second quarter, ending the twelve months at 1.15%. This compares with 1.39% for the twelve months ended December 31, 2019. |
| --- | --- |
| - | Fees and interest income from PPP loans helped increase our net interest margin^(1)^, offset by lost interest due to payment deferrals and the drop in interest rates in March 2020 . Our margin for the year ended December 31, 2020 was 2.98%, down from 3.29% for the year ended December 31, 2019. PPP loans increased the twelve-month average loans by $36.88 million and added $1.75 million in interest and fee income. If PPP loans are excluded, the net interest margin for the year ended December 31, 2020 would have been 2.93%. The average gross PPP loan balance for the fourth quarter was $50.15 million. |
| --- | --- |
| - | We recognized $1.37 million in Paycheck Protection Program (PPP) loan fees net of costs in 2020. |
| --- | --- |
| - | The cost to fund interest bearing liabilities declined 24 basis points to 0.62% for the year ended December 31, 2020, from 0.86% for the year ended December 31, 2019. |
| --- | --- |
| - | Total noninterest income for the twelve months ended December 31, 2020 was down $0.85 million, or 9.62%, when compared to the twelve months ended December 31, 2019. Noninterest income was impacted by fewer service charges on deposit accounts and lower gains from the sale and call of securities. |
| --- | --- |
| - | The Company continues to work to contain expenses. Noninterest expense was down $0.78 million, or 3.04%, when the twelve months ended December 31, 2020 are compared with the twelve months ended December 31, 2019. |
| --- | --- |
Balance Sheet
| - | Total assets increased by $197.83 million, or 14.97%, to $1.52 billion. |
|---|---|
| - | Total deposits increased by $177.39 million, or 15.84%, to $1.30 billion. We expect continued growth in deposits in 2021 due to additional government stimulus funds received by depositors. |
| --- | --- |
| - | Gross loans outstanding were $770.03 million at December 31, 2020, an increase of $36 million from December 31, 2019, but down from $802.8 million at September 30, 2020. We received several very large loan payoffs in the 4^th^ quarter. |
| --- | --- |
| - | Total stockholders’ equity at December 31, 2020 was $200.61 million. The Company’s capital position provides a source of great strength and continues to significantly exceed all regulatory capital guidelines. |
| --- | --- |
Other Notable Information
| - | The Company repurchased 57,554 shares in the 4^th^ quarter of 2020. We expect to continue to repurchase shares in 2021. |
|---|---|
| - | Nonperforming loans as a percentage of total loans increased slightly to 0.48% at December 31, 2020, from 0.46% at December 31, 2019 and from 0.45% at September 30, 2020 |
| --- | --- |
| - | The efficiency ratio^(1)^ continues to improve at 53.11% for the year ended December 31, 2020, as compared to 55.10% for the year ended December 31, 2019 and 54.10% for the nine months ended September 30, 2020. |
| --- | --- |
| - | The allowance for loan losses to total loans was 1.10% at December 31, 2020. Excluding the PPP loans, the ratio was 1.16%. |
| --- | --- |
| - | Net chargeoffs were $373 for the year ended December 31, 2020, compared with $653 for the year ended December 31, 2019. |
| --- | --- |
| - | The book value per common share as of December 31, 2020 was $31.19, an improvement from $ 28.31 as of December 31, 2019, and $31.16 as of September 30, 2020. |
| --- | --- |
^(1)^Non-GAAP Financial Measures
In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and comparing financial results to other financial institutions. The non-GAAP financial measures presented in this document include the efficiency ratio and the net interest margin, which is presented on a fully taxable-equivalent (“FTE”) basis. Efficiency ratio is calculated as noninterest expense, less non-recurring items, divided by the sum of noninterest income and net interest income on an FTE basis. FTE basis is calculated using the federal statutory income tax rate of 21%. The Company believes certain non-GAAP financial measures enhance the understanding of its business and performance. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions.
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About National Bankshares
National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of The National Bank of Blacksburg, which does business as National Bank, and of National Bankshares Financial Services, Inc. National Bank is a community bank operating from 25 full-service offices and one loan production office throughout Southwest Virginia. National Bankshares Financial Services, Inc. is an investment and insurance subsidiary in the same trade area. The Company’s stock is traded on the NASDAQ Capital Market under the symbol “NKSH.” Additional information is available at www.nationalbankshares.com.
Forward-Looking Statements
Certain statements in this press release may be “forward-looking statements.” Forward-looking statements are statements that include projections, predictions, expectations , or beliefs about future events or results that are not statements of historical fact and that involve significant risks and uncertainties. Although the Company believes that its expectations with regard to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual Company results will not differ materially from any future results implied by the forward-looking statements. Actual results may be materially different from past or anticipated results because of many factors, some of which may include changes in economic conditions, the interest rate environment, legislative and regulatory requirements, new products, competition, changes in the stock and bond markets , and technology. The Company does not update any forward-looking statements that it may make.
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National Bankshares, Inc.
Consolidated Balance Sheets
(Unaudited)
| ( in thousands, except for share and per share data) | December 31,<br><br> <br>2019 | ||||
|---|---|---|---|---|---|
| Assets | **** | **** | **** | **** | **** |
| Cash and due from banks | 13,147 | $ | 10,290 | ||
| Interest-bearing deposits | 120,725 | 76,881 | |||
| Securities available for sale, at fair value | 546,742 | 435,263 | |||
| Restricted stock | 1,279 | 1,220 | |||
| Total securities | 548,021 | 436,483 | |||
| Mortgage loans held for sale | 866 | 905 | |||
| Loans: | |||||
| Loans, net of unearned income and deferred fees and costs | 768,799 | 733,451 | |||
| Less: allowance for loan losses | (8,481 | ) | (6,863 | ) | |
| Loans, net | 760,318 | 726,588 | |||
| Premises and equipment, net | 10,035 | 8,919 | |||
| Accrued interest receivable | 5,028 | 4,285 | |||
| Other real estate owned, net | 1,553 | 1,612 | |||
| Intangible assets and goodwill | 5,848 | 5,848 | |||
| Bank-owned life insurance | 36,444 | 35,567 | |||
| Other assets | 17,686 | 14,459 | |||
| Total assets | 1,519,671 | $ | 1,321,837 | ||
| Liabilities and Stockholders' Equity | **** | **** | **** | **** | **** |
| Noninterest-bearing deposits | 276,793 | $ | 201,866 | ||
| Interest-bearing demand deposits | 763,293 | 643,482 | |||
| Savings deposits | 167,475 | 146,377 | |||
| Time deposits | 89,582 | 128,028 | |||
| Total deposits | 1,297,143 | 1,119,753 | |||
| Accrued interest payable | 56 | 144 | |||
| Other liabilities | 21,865 | 18,214 | |||
| Total liabilities | 1,319,064 | 1,138,111 | |||
| Stockholders' Equity | **** | **** | **** | **** | **** |
| Preferred stock, no par value, 5,000,000 shares authorized; none issued and outstanding | --- | --- | |||
| Common stock of 1.25 par value. Authorized 10,000,000 shares; issued and outstanding 6,432,020 shares at December 31, 2020 and 6,489,574 shares at December 31, 2019 | 8,040 | 8,112 | |||
| Retained earnings | 189,547 | 184,120 | |||
| Accumulated other comprehensive loss, net | 3,020 | (8,506 | ) | ||
| Total stockholders' equity | 200,607 | 183,726 | |||
| Total liabilities and stockholders' equity | 1,519,671 | $ | 1,321,837 |
All values are in US Dollars.
4
National Bankshares, Inc.
Consolidated Statements of Income
(Unaudited)
| Three Months Ended | Twelve Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ($ in thousands, except for share and per share data) | December 31,<br><br> <br>2020 | December 31,<br><br> <br>2019 | December 31,<br><br> <br>2020 | December 31,<br><br> <br>2019 | |||||||
| Interest Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest and fees on loans | $ | 9,032 | $ | 8,592 | $ | 34,523 | $ | 33,869 | |||
| Interest on federal funds | **** | --- | --- | **** | --- | --- | |||||
| Interest on interest-bearing deposits | **** | 28 | 475 | **** | 276 | 1,523 | |||||
| Interest on securities - taxable | **** | 1,592 | 1,874 | **** | 7,383 | 6,725 | |||||
| Interest on securities - nontaxable | **** | 510 | 487 | **** | 1,826 | 3,030 | |||||
| Total interest income | **** | 11,162 | 11,428 | **** | 44,008 | 45,147 | |||||
| Interest Expense | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest on time deposits | **** | 188 | 566 | **** | 1,664 | 1,805 | |||||
| Interest on other deposits | **** | 835 | 1,242 | **** | 4,173 | 5,575 | |||||
| Total interest expense | **** | 1,023 | 1,808 | **** | 5,837 | 7,380 | |||||
| Net interest income | **** | 10,139 | 9,620 | **** | 38,171 | 37,767 | |||||
| Provision (recovery) for loan losses | **** | 6 | (224 | ) | **** | 1,991 | 126 | ||||
| Net interest income after provision for loan losses | **** | 10,133 | 9,844 | **** | 36,180 | 37,641 | |||||
| Noninterest Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service charges on deposit accounts | **** | 536 | 613 | **** | 1,966 | 2,453 | |||||
| Other service charges and fees | **** | 49 | 49 | **** | 162 | 198 | |||||
| Credit card fees | **** | 369 | 383 | **** | 1,400 | 1,398 | |||||
| Trust income | **** | 418 | 414 | **** | 1,662 | 1,622 | |||||
| Bank-owned life insurance | **** | 218 | 229 | **** | 877 | 910 | |||||
| Other income | **** | 536 | 275 | **** | 1,769 | 1,643 | |||||
| Realized securities gain, net | **** | 12 | 384 | **** | 108 | 566 | |||||
| Total noninterest income | **** | 2,138 | 2,347 | **** | 7,944 | 8,790 | |||||
| Noninterest Expense | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and employee benefits | **** | 3,697 | 3,757 | **** | 14,579 | 14,920 | |||||
| Occupancy and furniture and fixtures | **** | 435 | 456 | **** | 1,795 | 1,866 | |||||
| Data processing and ATM | **** | 762 | 808 | **** | 3,158 | 3,171 | |||||
| FDIC assessment | **** | 87 | --- | **** | 214 | 167 | |||||
| Net cost of other real estate owned | **** | 3 | 2 | **** | 39 | 47 | |||||
| Franchise taxes | **** | 331 | 343 | **** | 1,340 | 1,333 | |||||
| Other operating expenses | **** | 991 | 1,084 | **** | 3,845 | 4,250 | |||||
| Total noninterest expense | **** | 6,306 | 6,450 | **** | 24,970 | 25,754 | |||||
| Income before income tax expense | **** | 5,965 | 5,741 | **** | 19,154 | 20,677 | |||||
| Income tax expense | **** | 1,017 | 964 | **** | 3,077 | 3,211 | |||||
| Net Income | $ | 4,948 | $ | 4,777 | $ | 16,077 | $ | 17,466 | |||
| Basic net income per share | $ | 0.77 | $ | 0.74 | $ | 2.48 | $ | 2.65 | |||
| Fully diluted net income per share | $ | 0.77 | $ | 0.74 | $ | 2.48 | $ | 2.65 | |||
| Weighted average number of common shares outstanding | |||||||||||
| Basic | **** | 6,464,338 | 6,489,574 | **** | 6,483,230 | 6,580,659 | |||||
| Diluted | **** | 6,464,338 | 6,489,574 | **** | 6,483,230 | 6,580,659 | |||||
| Dividends declared per share | $ | 0.72 | $ | 0.72 | $ | 1.39 | $ | 1.39 | |||
| Dividend payout ratio | **** | --- | --- | **** | 55.98 | % | 51.71 | % | |||
| Book value per share | $ | 31.19 | $ | 28.31 | $ | 31.19 | $ | 28.31 |
5
National Bankshares, Inc.
Consolidated Statements of Comprehensive Income
(Unaudited)
| ( in thousands) | December 31, 2019 | ||||
| Net income | 4,948 | $ | 4,777 | ||
| Other Comprehensive Loss, Net of Tax | **** | **** | **** | **** | **** |
| Unrealized holding gain (loss) on available for sale securities net of tax of 375 for the period ended December 31, 2020 and (663) for the period ended December 31, 2019 | 1,413 | (2,494 | ) | ||
| Reclassification adjustment for gain included in net income, net of tax of (3) for the period ended December 31, 2020 and (81) for the period ended December 31, 2019 | (9 | ) | (303 | ) | |
| Net pension loss arising during the period, net of taxes of (393) for the period ended December 31, 2020 and (394) for the period ended December 31, 2019 | (1,478 | ) | (1,482 | ) | |
| Less amortization of prior service cost included in net periodic pension cost, net of tax of (23) for the period ended December 31, 2020 and (23) for the period ended December 31, 2019 | (87 | ) | (87 | ) | |
| Other comprehensive loss, net of tax | (161 | ) | $ | (4,366 | ) |
| Total Comprehensive Income | 4,787 | $ | 411 |
All values are in US Dollars.
| ( in thousands) | December 31, 2019 | ||||
| Net income | 16,077 | $ | 17,466 | ||
| Other Comprehensive Income, Net of Tax | **** | **** | **** | **** | **** |
| Unrealized holding gain on available for sale securities net of tax of 3,502 for the period ended December 31, 2020 and 1,486 for the period ended December 31, 2019 | 13,176 | 5,595 | |||
| Reclassification adjustment for gain included in net income, net of tax of (23) for the period ended December 31, 2020 and (119) for the period ended December 31, 2019 | (85 | ) | (447 | ) | |
| Net pension loss arising during the period, net of taxes of (393) for the period ended December 31, 2020 and (349) for the period ended December 31, 2019 | (1,478 | ) | (1,482 | ) | |
| Less amortization of prior service cost included in net periodic pension cost, net of tax of (23) for the period ended December 31, 2020 and (23) for the period ended December 31, 2019 | (87 | ) | (87 | ) | |
| Other comprehensive income, net of tax | 11,526 | $ | 3,579 | ||
| Total Comprehensive Income | 27,603 | $ | 21,045 |
All values are in US Dollars.
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National Bankshares, Inc.
Key Ratios and Other Data
(Unaudited)
| Three Months Ended | Twelve Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ( $ in thousands ) | December 31, 2020 | December 31, 2019 | December 31, 2020 | December 31, 2019 | ||||||||
| Average Balances | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and due from banks | $ | 11,743 | $ | 12,142 | $ | 11,358 | $ | 11,562 | ||||
| Interest-bearing deposits | **** | 103,511 | 114,048 | **** | 81,639 | 74,527 | ||||||
| Securities available for sale | **** | 514,328 | 378,157 | **** | 473,669 | 393,136 | ||||||
| Restricted stock | **** | 1,279 | 1,220 | **** | 1,265 | 1,220 | ||||||
| Mortgage loans held for sale | **** | 2,334 | 1,411 | **** | 1,426 | 737 | ||||||
| Gross Loans | **** | 780,439 | 725,848 | **** | 768,938 | 719,729 | ||||||
| Loans, net | **** | 771,201 | 725,294 | **** | 760,641 | 711,851 | ||||||
| Intangible assets | **** | 5,848 | 5,848 | **** | 5,848 | 5,848 | ||||||
| Total assets | **** | 1,477,384 | 1,296,594 | **** | 1,403,671 | 1,255,934 | ||||||
| Total deposits | **** | 1,256,873 | 1,091,846 | **** | 1,188,572 | 1,062,683 | ||||||
| Stockholders' equity | **** | 201,271 | 187,689 | **** | 195,768 | 176,906 | ||||||
| Interest-earning assets | **** | 1,386,835 | 1,217,232 | **** | 1,316,284 | 1,188,366 | ||||||
| Interest-bearing liabilities | **** | 979,370 | 883,240 | **** | 940,180 | 861,713 | ||||||
| Financial Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Return on average assets | **** | 1.33 | % | 1.39 | % | **** | 1.15 | % | 1.39 | % | ||
| Return on average equity | **** | 9.77 | % | 9.62 | % | **** | 8.21 | % | 9.87 | % | ||
| Net interest margin^(1)^ | **** | 2.98 | % | 3.22 | % | **** | 2.98 | % | 3.29 | % | ||
| Net interest income-fully taxable equivalent^(1)^ | $ | 10,387 | $ | 9,868 | $ | 39,179 | $ | 39,056 | ||||
| Efficiency ratio^(2)^ | **** | 50.40 | % | 54.52 | % | **** | 53.11 | % | 55.10 | % | ||
| Average equity to average assets | **** | 13.62 | % | 14.48 | % | **** | 13.95 | % | 14.09 | % | ||
| Allowance for Loan Losses | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Beginning balance | $ | 8,428 | $ | 7,262 | $ | 6,863 | $ | 7,390 | ||||
| Provision for losses | **** | 6 | (224 | ) | **** | 1,991 | 126 | |||||
| Charge-offs | **** | (81 | ) | (224 | ) | **** | (720 | ) | (920 | ) | ||
| Recoveries | **** | 128 | 49 | **** | 347 | 267 | ||||||
| Ending balance | $ | 8,481 | $ | 6,863 | $ | 8,481 | $ | 6,863 | ||||
| (1) | Non-GAAP financial measures presented on an FTE basis. Interest income that is not taxable is grossed up at the Company's federal statutory income tax rate of 21% to reflect the tax benefit. | |||||||||||
| --- | --- | |||||||||||
| (2) | Efficiency ratio is calculated as noninterest expense, less non-recurring items, divided by the sum of noninterest income and net interest income on a fully taxable equivalent basis. | |||||||||||
| --- | --- |
7
National Bankshares, Inc.
Asset Quality Data
(Unaudited)
| ( $ in thousands ) | December 31, 2020 | December 31, 2019 | ||||
|---|---|---|---|---|---|---|
| Nonperforming Assets | **** | **** | **** | **** | **** | **** |
| Nonaccrual loans | $ | 846 | $ | 164 | ||
| Nonaccrual restructured loans | **** | 2,839 | 3,211 | |||
| Total nonperforming loans | **** | 3,685 | 3,375 | |||
| Other real estate owned | $ | 1,553 | $ | 1,612 | ||
| Total nonperforming assets | $ | 5,238 | $ | 4,987 | ||
| Accruing restructured loans | **** | 1,410 | 1,729 | |||
| Accruing loans 90 days or more past due | $ | 17 | $ | 231 | ||
| Asset Quality Ratios | **** | **** | **** | **** | **** | **** |
| Nonperforming assets to loans net of unearned income and deferred fees, plus other real estate owned | **** | 0.68 | % | 0.68 | % | |
| Allowance for loans losses to total loans | **** | 1.10 | % | 0.94 | % | |
| Allowance for loan losses to nonperforming loans | **** | 230.15 | % | 203.35 | % | |
| Loans past due 90 days or more to loans net of unearned income and deferred fees | **** | 0.00 | % | 0.03 | % |
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