Wed, Aug 14, 7:02 PM (153 days ago)
For the second quarter of 2024, National Bankshares, Inc. reported a net loss of $306,000, a significant decrease from a profit of $3.9 million in the same period of 2023, primarily due to increased noninterest expenses related to the acquisition of Frontier Community Bank. Net interest income fell to $8.7 million, down from $9.2 million, impacted by margin compression, with the net interest margin at 2.13%, down from 2.34%. Total assets rose to $1.81 billion, driven by a 15.5% increase in loans, reflecting the acquisition. The allowance for credit losses increased to $10.5 million, representing 1.06% of total loans. Noninterest income decreased by 19.5% year-over-year to $2.25 million, with notable declines in BOLI income and gains on securities. The efficiency ratio worsened to 68.79%, indicating increased operational costs. The company maintained strong capital ratios, significantly above regulatory minimums, and reported a liquidity position bolstered by diverse funding sources. The outlook remains cautious due to potential economic headwinds, including inflation and rising interest rates.