National Bankshares, Inc. · NASDAQ:NKSH
National Bankshares — Q2 2026 Earnings Presentation
17 slides from National Bankshares's earnings presentation, Nov 3, 2026
Slide 1: National Bankshares, Inc. Q2 2026 Investor Presentation
NATIONAL BANKSHARES, INC. Q2 2026 Investor Presentation Results for the three and six months ended June 30, 2026 NASDAQ: NKSH
Slide 2: Forward-Looking Statements
Forward-Looking Statements National Bankshares, Inc. (the “Company” or “we”) makes forward-looking statements in this presentation that are subject to significant risks and uncertainties. These forward-looking statements include statements regarding our profitability, liquidity, allowance for credit
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses these non-GAAP financial measures in its analysis of the C
Slide 4: A Virginia community bank holding company with durable scale
A Virginia community bank holding company with durable scale As of June 30, 2026 TOTAL ASSETS $1.83B TOTAL DEPOSITS $1.63B GROSS LOANS $1.015B OFFICES 28 + 1 28 full-service branches + 1 LPO MARKET CAPITALIZATION $231.44M June 30, 2026 Branch network across Southwestern, Western and Central Virginia
Slide 5: Highlights: Second quarter and year-to-date
Highlights: Second quarter and year-to-date Q2 and YTD 2026 QUARTER-TO-DATE NET INCOME $5.03M $2.29M in Q2 2025 DILUTED EPS $0.79 $0.36 in Q2 2025 NET INTEREST INCOME $13.05M $10.99M in Q2 2025 NET INTEREST MARGIN 3.00% 2.56% in Q2 2025 EFFICIENCY RATIO 58.40% 63.83% in Q2 2025 YEAR-TO-DATE Earnings
Slide 6: Building Momentum in Quarterly Earnings
Building Momentum in Quarterly Earnings September 30, 2024 through June 30, 2026 NET INCOME ($ MILLIONS) $0M $2M $4M $6M $2.68M Q3 2024 $3.08M Q4 2024 $3.24M Q1 2025 $2.29M Q2 2025 $4.42M Q3 2025 $5.88M Q4 2025 $4.98M Q1 2026 $5.03M Q2 2026 Quarterly net income increased from a $2.68 million Q3 2024
Slide 7: Net interest margin expansion continues
Net interest margin expansion continues Q3 2024 through Q2 2026 YIELD TREND: QTD 09/30/24 12/31/24 03/31/25 06/30/25 09/30/25 12/31/25 03/31/26 06/30/26 Yield on interest-earning assets Cost of interest-bearing liabilities 4.45% 1.94% 4.28% 2.74% NET INTEREST MARGIN: QTD 0.0% 1.0% 2.0% 3.0% 2.20% Q3
Slide 8: Balance-sheet actions position earnings for expansion
Balance-sheet actions position earnings for expansion Q2 2026 SECURITIES REPOSITIONING $127.33M mortgage-backed securities purchased 5.26% weighted average yield on purchases vs. 1.80% weighted average yield on securities sold Incremental interest income is expected to offset the realized loss in ap
Slide 9: Returning to a more efficient operating profile
Returning to a more efficient operating profile 2022 through YTD 2026 EFFICIENCY RATIO 0% 20% 40% 60% 47.83% 2022 61.18% 2023 69.09% 2024 60.84% 2025 59.17% YTD 2026 NONINTEREST EXPENSE YTD through June 30, 2026 2.05% Annualized noninterest expense / average assets YTD through June 30, 2025 2.13% An
Slide 10: Dominant market share in our core markets
Dominant market share in our core markets FDIC Summary of Deposits, June 30, 2026 90.9% National Bank ranks in the top 5 depository institutions for 90.9% of its deposit base. #1 in 3 counties Giles, Pulaski and Tazewell COUNTY DEPOSIT SHARE AND RANK County Rank Share NKSH deposits Giles County #1 6
Slide 11: Responsible lending drives pristine credit quality
As of June 30, 2026 CURRENT CREDIT QUALITY METRICS Nonaccrual and loans 90+ days past due / total loans 0.06% NKSH ACLL / total loans 0.99% NKSH 90+ days past due / total loans 0.02% NKSH Charge-offs / total loans 0.02% NKSH NONACCRUAL AND LOANS 90+ DAYS PAST DUE / TOTAL LOANS 0.00% 0.25% 0.50% 0.75
Slide 12: Robust capital levels and a focus on shareholder value
Robust capital levels and a focus on shareholder value As of June 30, 2026 THE NATIONAL BANK OF BLACKSBURG REGULATORY CAPITAL RATIOS COMMON EQUITY TIER 1 16.52% TIER 1 CAPITAL 16.52% TOTAL CAPITAL 17.38% LEVERAGE 10.54% $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2000 2002 2004 2006 2008 2010 2012 2014 2016
Slide 13: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Supplemental financial measure reconciliations NATIONAL BANKSHARES, INC. | NASDAQ: NKSH
Slide 14: Non-GAAP Reconciliations: Net Interest Margin, FTE (Q2)
Non-GAAP Reconciliations: Net Interest Margin, FTE June 30, 2026 and 2025 THREE MONTHS ENDED JUNE 30, 2026 ($ in thousands) Interest income (GAAP) $19,454 Add: FTE adjustment 249 Interest income, FTE (non-GAAP) 19,703 Interest expense (GAAP) 6,404 Net interest income, FTE (non-GAAP) $13,299 Average
Slide 15: Non-GAAP Reconciliations: Efficiency Ratio (Q2)
Non-GAAP Reconciliations: Efficiency Ratio June 30, 2026 and 2025 THREE MONTHS ENDED JUNE 30, 2025 ($ in thousands) THREE MONTHS ENDED JUNE 30, 2026 ($ in thousands) Noninterest expense (GAAP) $9,302 Noninterest income (GAAP) $2,646 Less: gain on sale of equity investment (6,566) Less: loss on sale
Slide 16: Non-GAAP Reconciliations: Net Interest Margin, FTE (Six Months)
Non-GAAP Reconciliations: Net Interest Margin, FTE June 30, 2026 and 2025 SIX MONTHS ENDED JUNE 30, 2026 ($ in thousands) Interest income (GAAP) $38,395 Add: FTE adjustment 506 Interest income, FTE (non-GAAP) 38,901 Interest expense (GAAP) 12,722 Net interest income, FTE (non-GAAP) $26,179 Average b
Slide 17: Non-GAAP Reconciliations: Efficiency Ratio (Six Months)
Non-GAAP Reconciliations: Efficiency Ratio June 30, 2026 and 2025 SIX MONTHS ENDED JUNE 30, 2026 ($ in thousands) Noninterest expense (GAAP) $19,215 Less: core system conversion expense (2,023) Adjusted noninterest expense (non-GAAP) $17,192 Noninterest income (GAAP) $4,839 Net interest income, FTE