National Bankshares Inc. has a market cap of $206.7 million; its shares were traded at around $29.7 with a P/E ratio of 11.4 and P/S ratio of 3.5. The dividend yield of National Bankshares Inc. stocks is 3.6%. National Bankshares Inc. had an annual average earning growth of 7.2% over the past 10 years. GuruFocus rated National Bankshares Inc. the business predictability rank of 4-star.
Highlight of Business Operations:The following table presents NBI s key performance ratios for the six months ended June 30, 2012 and the year ended December 31, 2011. The measures for June 30, 2012 are annualized, except for basic net earnings per share and fully diluted net earnings per share.
The net interest margin for the six months ended June 30, 2012 decreased 25 basis points from the six months ended June 30, 2011. The decrease in net interest margin was driven by a decline in the yield on earning assets of 41 basis points offset by a decline in the cost of interest-bearing liabilities of 21 basis points. Both loans and securities experienced a decline in yield. The 19 basis point decline in the yield on loans stemmed from contractual repricing terms and the renegotiation of loan interest rates in response to competition. The yield on taxable securities was 27 basis points lower for the six months ended June 30, 2012, when compared with the same period in 2011, while the yield on nontaxable securities declined 14 basis points over the same period. The market yield for securities of a comparable term has declined over the past year, causing matured and called bonds to be replaced with lower yielding investments. The decline in the cost of interest-bearing liabilities came primarily from a 37 basis point reduction in the cost of time deposits when the six-month periods ended June 30, 2012 and June 30, 2011 are compared.
Other income includes net gains from the sales of fixed assets, revenue from investment and insurance sales and other smaller miscellaneous components. Other income for the six months ended June 30, 2012 increased 25.60%, when compared with the six months ended June 30, 2011. These areas fluctuate with market conditions and because of competitive factors.
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