National Bankshares Q4 net income up nearly 91% yr/yr

Overview

• U.S. community bank's Q4 net income rose nearly 91% yr/yr

• Higher loan yields and lower deposit costs improved net interest margin

• Company expanded with new branches in Roanoke and Lynchburg

Outlook

• National Bankshares aims to enhance customer experience with core systems conversion

Result Drivers

• NET INTEREST MARGIN - Higher loan yields and lower deposit costs drove improvement in net interest margin, contributing to net income gains

• CORE SYSTEMS CONVERSION - Implementation of core systems conversion enhanced customer experience and enabled new product offerings

• BRANCH EXPANSION - New branches in Roanoke and Lynchburg opened to support expansion in dynamic markets

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "strong buy"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for National Bankshares Inc is $34.50, about 3.1% below its January 21 closing price of $35.61

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 11 three months ago

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