National Bankshares, Inc. · NASDAQ:NKSH
National Bankshares — Investor Presentation (April 2025)
17 slides from National Bankshares's investor presentation, Apr 16, 2025
Slide 1: Successfully Executing Strategy to Drive Long-Term Value for All Shareholders
Successfully Executing Strategy to Drive Long-Term Value for All Shareholders National Bankshares Investor Presentation – 4th Quarter 2024
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: Q4 2024 Highlights
Q4 2024 Highlights Reported net income for the quarter of $3.08 million or $0.48 per common share and core net income of $3.05 million or $0.48 per common share(1) Successfully completed acquisition of Frontier Community Bank on June 1, 2024 Continued to position the Company to better serve customer
Slide 5: NKSH at a Glance
Roanoke ington Staunton Charlottesville NKSH at a Glance Financial Highlights (as of or for the quarter ended 12/31/2024) Assets $1.8 billion Gross Loans $989 million Deposits $1.6 billion Shareholders’ Equity $156 million TCE / TA(1) 7.99% GAAP Net Income $3.1 million Core ROAA(1) 0.68% Core ROATCE
Slide 6: Delivering Exceptional Returns to Our Shareholders
Delivering Exceptional Returns to Our Shareholders Total Shareholder Return: January 2000 to December 2024 Financial Crisis Covid-19 Pandemic 638% 347% Source: S&P Capital IQ; (1) See appendix for peer group detail SVB Fallout (1)
Slide 7: Consistently Growing Our Dividend
Common Dividends Declared Per Share: 2000 to 2024 Consistently Growing Our Dividend 2000-2024 CAGR: 5.4% Source: S&P Capital IQ Pro; Note: 2023 includes $1.00 special dividend paid in Q1 2023
Slide 8: Peer-Leading Efficiency
Peer-Leading Efficiency Noninterest Expense / Average Assets (%) Sources: S&P Capital IQ Pro; Note: Noninterest expense excludes non-recurring expenses and foreclosure and repo expense; (1) See appendix for peer group detail (1)
Slide 9: Dominant Market Share in Our Core Markets
Dominant Market Share in Our Core Markets Top 3 rank in counties representing >85% of deposits Source: S&P Capital IQ Pro; Note: Information as of 6/30/2024
Slide 10: Diversified and Resilient Deposit Franchise
Diversified and Resilient Deposit Franchise NKSH Cost of Interest-Bearing Deposits vs Fed Funds(1) Retail and small business-oriented deposit base Rates have inflected since peaking in Q3 2024 and should see continued relief with further rate cuts Strong liquidity position provides flexibility durin
Slide 11: Responsible Lending Drives Pristine Credit Quality
Responsible Lending Drives Pristine Credit Quality Net Charge-offs / Average Loans: 2008 to 2024 Conservative underwriting standards No high-risk lending concentrations No lending to VC/PE industry Low LTVs and high DSCRs 12/31/2024 Loan Composition Sources: S&P Capital IQ Pro, Company filings
Slide 12: Robust Capital Levels and Return
Robust Capital Levels and Return NBB at 12/31/2024 Actual Ratio Well Capitalized Total Capital 16.14% 10.00% Tier 1 Capital 15.28% 8.00% Common Equity Tier 1 15.28% 6.50% Tier 1 Leverage 10.25% 5.00% Dividend Payout Ratio % Value of Share Repurchases / Net Income % NKSH and NBB possess robust regula
Slide 13: Strong Financial Position Provides Optionality
Strong Financial Position Provides Optionality Organic Growth Mergers and Acquisitions Capital Return New Business Lines Contiguous and new markets offer more growth prospects than legacy markets Open loan production offices in attractive markets (e.g., Charlottesville, VA) Recently opened new branc
Slide 14: Appendix
| Appendix
Slide 15: Peer Group Detail
Peer Group Detail ACNB Corporation Ameriserv Financial, Inc. C&F Financial Corporation First Community Bancshares, Inc. First United Corporation (1) Based on peers included in NKSH’s 2022 proxy statement. NKSH Selected Peers(1) Mid Penn Bancorp Old Point Financial Corporation Penns Woods Bancorp, In
Slide 16: Non-GAAP Reconciliations – Q4 2024
Non-GAAP Reconciliations – Q4 2024 Source: Company filings
Slide 17: Non-GAAP Reconciliations – Q4 2024
Non-GAAP Reconciliations – Q4 2024 Source: Company filings
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