National Bankshares, Inc. · NASDAQ:NKSH
National Bankshares — Q3 2026 Earnings Presentation
17 slides from National Bankshares's earnings presentation, Nov 3, 2026
Slide 1: National Bankshares, Inc. Q3 2026 Investor Presentation
NATIONAL BANKSHARES, INC. Q3 2026 Investor Presentation Results for the three and nine months ended September 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 September 30, 2026 TOTAL ASSETS $1.78B TOTAL DEPOSITS $1.58B GROSS LOANS $1.02B OFFICES 28 + 1 28 full-service branches + 1 LPO TOTAL MARKET CAPITALIZATION $266.99M Branch network across Southwestern, Western and Central Virginia Fou
Slide 5: Highlights: Third quarter and year-to-date
Highlights: Third quarter and year-to-date Q3 and YTD 2026 QUARTER-TO-DATE NET INCOME $5.49M vs. $4.42M in Q3 2025 DILUTED EPS $0.86 vs. $0.69 in Q3 2025 NET INTEREST INCOME $13.85M vs. $11.67M in Q3 2025 NET INTEREST MARGIN 3.21% vs. 2.72% in Q3 2025 EFFICIENCY RATIO 55.90% vs. 58.75% in Q3 2025 YE
Slide 6: Building Momentum in Quarterly Earnings
Building Momentum in Quarterly Earnings September 30, 2024 through September 30, 2026 NET INCOME ($ MILLIONS) $0M $2M $4M $6M $2.68 Q3 2024 $3.08 Q4 2024 $3.24 Q1 2025 $2.29 Q2 2025 $4.42 Q3 2025 $5.88 Q4 2025 $4.98 Q1 2026 $5.03 Q2 2026 $5.49 Q3 2026 Quarterly net income increased from a $2.68 mill
Slide 7: Net interest margin expansion continues
Net interest margin expansion continues Q3 2024 through Q3 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 09/30/26 Yield on interest-earning assets Cost of interest-bearing liabilities 4.68% 1.97% 4.29% 2.74% NET INTEREST MARGIN: QTD 0.0% 1.0% 2.0% 3.0%
Slide 8: Balance-sheet actions in 2Q26 positioned earnings for expansion
Balance-sheet actions in 2Q26 positioned 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
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 58.04% YTD 2026 Efficiency ratio shown reflects management’s non-GAAP adjustments for nonrecurring expense, including core conversion expense in 2025,
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 September 30, 2026 or the Date Indicated CURRENT CREDIT QUALITY METRICS Nonaccrual and loans 90+ days past due / total loans 0.05% NKSH Accruing 90+ days past due / total loans 0.01% NKSH Net charge-offs/ average total loans 0.05% NKSH ACLL / total loans 0.99% NKSH NONACCRUAL AND LOANS 90+ DAY
Slide 12: Capital strength and shareholder value
Capital strength and shareholder value As of September 30, 2026 or the Date Indicated THE NATIONAL BANK OF BLACKSBURG REGULATORY CAPITAL RATIOS COMMON EQUITY TIER 1 16.59% TIER 1 CAPITAL 16.59% TOTAL CAPITAL 17.44% LEVERAGE 11.03% $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 2000 2002 2004 2006 2008 2010 201
Slide 13: Reconciliation of Non-GAAP Disclosures
Reconciliation of Non-GAAP Disclosures Supplemental financial measure reconciliations NATIONAL BANKSHARES, INC. | NASDAQ: NKSH
Slide 14: Non-GAAP Reconciliations: Net Interest Margin, FTE (Three Months)
Non-GAAP Reconciliations: Net Interest Margin, FTE Three Months Ended September 30, 2026 and 2025 THREE MONTHS ENDED SEPTEMBER 30, 2026 ($ in thousands) Interest income (GAAP) $20,287 Add: FTE adjustment 247 Interest income, FTE (non-GAAP) $20,534 Interest expense (GAAP) 6,440 Net interest income, F
Slide 15: Non-GAAP Reconciliations: Efficiency Ratio (Three Months)
Non-GAAP Reconciliations: Efficiency Ratio Three Months Ended September 30, 2026 and 2025 THREE MONTHS ENDED SEPTEMBER 30, 2025 ($ in thousands) THREE MONTHS ENDED SEPTEMBER 30, 2026 ($ in thousands) Noninterest expense (GAAP) $9,318 Noninterest income (GAAP) $2,574 $2,574 Net interest income, FTE (
Slide 16: Non-GAAP Reconciliations: Net Interest Margin, FTE (Nine Months)
Non-GAAP Reconciliations: Net Interest Margin, FTE Nine Months Ended September 30, 2026 and 2025 NINE MONTHS ENDED SEPTEMBER 30, 2026 ($ in thousands) Interest income (GAAP) $58,682 Add: FTE adjustment 753 Interest income, FTE (non-GAAP) $59,435 Interest expense (GAAP) $19,162 Net interest income, F
Slide 17: Non-GAAP Reconciliations: Efficiency Ratio (Nine Months)
Non-GAAP Reconciliations: Efficiency Ratio Nine Months Ended September 30, 2026 and 2025 NINE MONTHS ENDED SEPTEMBER 30, 2025 ($ in thousands) Noninterest expense (GAAP) $27,739 Less: core system conversion expense $(2,073) Adjusted noninterest expense (non-GAAP) $25,666 Noninterest income (GAAP) $7