National Bankshares, Inc. · NASDAQ:NKSH
National Bankshares — Q1 2026 Earnings Presentation
20 slides from National Bankshares's earnings presentation, May 18, 2026
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 – 1st Quarter 2026
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: NKSH at a Glance
Roanoke ington Staunton Charlottesville NKSH at a Glance Financial Highlights (as of or for the quarter ended 3/31/2026) Assets $1.8B Gross Loans $1.0B Deposits $1.6B Shareholders’ Equity $187M TCE / TA(1) 9.65% GAAP Net Income $4.98M Core ROAA(1) 1.07% Core ROATCE(1) 11.21% Core Efficiency Ratio(1)
Slide 5: Q1 2026 Highlights
Q1 2026 Highlights Reported net income for the quarter of $4.98 million or $0.78 per common share and core net income of $4.80 million or $0.75 per common share(1) Net income has grown more than 50% compared to Q1 2025 Net interest margin continues to improve due to lower deposit costs and higher se
Slide 6: Dominant Market Share in Our Core Markets
Dominant Market Share in Our Core Markets Top 3 rank in counties representing >85% of deposits Source: S&P Capital IQ Pro; Note: Information as of 6/30/2025
Slide 7: New Markets Offer Attractive Growth Prospects
New Markets Offer Attractive Growth Prospects We completed the acquisition of Frontier Community Bank in 2024, opening the door to attractive new markets in Waynesboro, Staunton and Lynchburg Our newest markets offer strong growth prospects, providing an avenue to deploy our excess liquidity We have
Slide 8: We've Seen an Inflection in Margin and Profitability
We’ve Seen an Inflection in Margin and Profitability… Annualized Net Interest Margin Unadjusted Efficiency Ratio(1) Annualized Unadjusted PPNR(2) / Avg Assets Annualized Unadjusted PPNR(2) Per Share(3) Source: S&P Capital IQ Pro, Company filings; (1) Noninterest expense (GAAP) divided by the sum of
Slide 9: Supported by Continued Asset/Liability Repricing
…Supported by Continued Asset/Liability Repricing Net interest margin compression from the FOMC's 2022-2023 rate hiking campaign is improving as we manage deposit costs with a strong liquidity position Asset yields are expanding as loan repricing accelerates and we optimize the securities portfolio
Slide 10: Revenue Diversification Enhances Income Stability
Revenue Diversification Enhances Income Stability Q1 2026 Fee Income Mix Annualized Trust Income ($M) 2018-2025 CAGR: 6.7% Source: S&P Capital IQ Pro, Company filings Fee Income / Revenue: 17%
Slide 11: Strong Expense Management
Strong Expense Management Net Operating Expense / Average Assets (%)(1) Source: S&P Capital IQ Pro; (1) Net operating expense is noninterest expense (GAAP) minus noninterest income (GAAP); (2) Includes $3.8M pre-tax gain on sale of private equity investment in 2022, $2.9M pre-tax expense in connecti
Slide 12: Diversified and Resilient Deposit Franchise
Diversified and Resilient Deposit Franchise NBB 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 during
Slide 13: Responsible Lending Drives Pristine Credit Quality
Responsible Lending Drives Pristine Credit Quality Net Charge-offs / Average Loans: 2008 to 2025 Conservative underwriting standards No high-risk lending concentrations Manageable CRE exposure 3/31/2026 Loan Composition Sources: S&P Capital IQ Pro, Company filings
Slide 14: Delivering Exceptional Returns to Our Shareholders
Delivering Exceptional Returns to Our Shareholders Total Shareholder Return: January 2000 to March 2026 Financial Crisis Covid-19 Pandemic 888% 406% Source: S&P Capital IQ Note: Dow Jones U.S. Small Cap Banks tracks the S&P U.S. SmallCap Banks, which is not available prior to 2005 SVB Fallout
Slide 15: Proud History of Uninterrupted Dividend Payments
Common Dividends Declared Per Share: 2000 to 2025 Proud History of Uninterrupted Dividend Payments 2000-2025 CAGR: 5.2% Source: S&P Capital IQ Pro; Note: 2023 includes $1.00 special dividend paid in Q1 2023
Slide 16: Robust Capital Levels and Return
Robust Capital Levels and Return NBB at 3/31/2026 Actual Ratio Well Capitalized Total Capital 17.46% 10.00% Tier 1 Capital 16.61% 8.00% Common Equity Tier 1 16.61% 6.50% Tier 1 Leverage 10.69% 5.00% Dividends + Share Repurchases / Net Income NKSH and NBB possess robust regulatory capital levels We c
Slide 17: 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 branch in Roanoke, VA Completed acquisition of Front
Slide 18: Appendix
| Appendix
Slide 19: Non-GAAP Reconciliations – Q1 2026
Non-GAAP Reconciliations – Q1 2026 (In thousands, except per share data) Source: Company filings
Slide 20: Non-GAAP Reconciliations – Q1 2026
Source: Company filings Non-GAAP Reconciliations – Q1 2026 (In thousands, except per share data)