National Bankshares, Inc. · NASDAQ:NKSH
National Bankshares — Q4 2025 Earnings Presentation
20 slides from National Bankshares's earnings presentation, March 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 – 4th Quarter 2025
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
NKSH at a Glance Financial Highlights Founded: 1891 - The National Bank of Blacksburg (“NBB”) (as of or for the quarter ended 12/31/2025) Headquarters: Blacksburg, VA Assets $1.8B Ticker: NKSH (Nasdaq) Gross Loans $1.0B Branches / LPOs: 28 branches / 1 LPO Deposits $1.6B Shareholders’ Equity $185M T
Slide 5: Q4 2025 Highlights
Q4 2025 Highlights EPS ROAA ROATCE Efficiency Ratio UNADJUSTED(1) $0.92 1.29% 13.76% 55.78% CORE(1) $0.84 1.18% 12.57% 55.77% ✓ Reported net income for the quarter of $5.88 million or $0.92 per common share and core net income of $5.37 million or $0.84 per common share(1) ✓ Core earnings primarily r
Slide 6: Dominant Market Share in Our Core Markets
Dominant Market Share in Our Core Markets Market Branches in Deposits in Deposit % of County Rank Market Market ($M) Market Share Franchise Montgomery 3 7 $664.8 22.2% 40.6% Tazewell 1 7 256.5 19.8% 15.6% Pulaski 1 3 195.1 35.7% 11.9% Top 3 rank in counties Giles 1 3 177.6 64.1% 10.8% representing >
Slide 7: New Markets Offer Attractive Growth Prospects
New Markets Offer Attractive Growth Prospects ✓ We completed the acquisition of Frontier Community Bank in 2024, opening the door to attractive new markets in Waynesboro, Staunton and Lynchburg ✓ Our newest markets offer strong growth prospects, providing an avenue to deploy our excess liquidity ✓ W
Slide 8: We've Seen an Inflection in Margin and Profitability…
We’ve Seen an Inflection in Margin and Profitability… Annualized Net Interest Margin Unadjusted Efficiency Ratio(1) ∆ Since ’24: +74 bps ∆ Since ’24: -1,979 bps 3.36% 3.29% 78.3% 2.98% 75.6% 2.81% 2.88% 2.93% 66.2% 2.73% 61.5% 59.0% 55.8% 57.4% 53.8% 53.0% 2.38% 2.41% 2.56% 50.9% 2.19% 44.7% 2018 20
Slide 9: …Supported by Continued Asset/Liability Repricing
…Supported by Continued Asset/Liability Repricing Asset/Liability Repricing Overview Deposit Costs Have Inflected… ✓ Net interest margin compression from the FOMC's 2022- 2023 rate hiking campaign is improving as we manage deposit costs with a strong liquidity position 3.90% ✓ Asset yields are expan
Slide 10: Revenue Diversification Enhances Income Stability
Revenue Diversification Enhances Income Stability Q4 2025 Fee Income Mix Annualized Trust Income ($M) Deposit service charges $2.5 Other service 18% $2.2 charges and fees 26% Card fees $1.9 2% $1.8 $1.8 $1.6 $1.7 $1.6 Trust income 12% 3% BOLI income 15% Gain on sale of 23% mortgage loans Other Fee I
Slide 11: Strong Expense Management
Strong Expense Management Net Operating Expense / Average Assets (%)(1) 1.56% 1.49% 1.46% 1.35% 1.21% 1.23% 1.09% 0.85% 2018 2019 2020 2021 2022 2023 2024 2025 NKSH Selected Significant One-Time Items(2) S&P U.S. SmallCap Banks Source: S&P Capital IQ Pro; (1) Net operating expense is noninterest exp
Slide 12: Diversified and Resilient Deposit Franchise
Diversified and Resilient Deposit Franchise ✓ Retail and small business-oriented deposit base NBB Cost of Interest-Bearing Deposits vs Fed Funds(1) ✓ Rates have inflected since peaking in Q3 2024 and should see continued relief with further rate cuts ✓ Strong liquidity position provides flexibility
Slide 13: Responsible Lending Drives Pristine Credit Quality
Responsible Lending Drives Pristine Credit Quality ✓ Conservative underwriting standards Net Charge-offs / Average Loans: 2008 to 2025 ✓ No high-risk lending concentrations 2.50% ✓ Manageable CRE exposure 2.00% 12/31/2025 Loan Composition 1.50% Real estate construction 5% 4% 6% 1.00% Consumer real e
Slide 14: Delivering Exceptional Returns to Our Shareholders
Delivering Exceptional Returns to Our Shareholders Total Shareholder Return: January 2000 to December 2025 Financial Covid-19 Crisis Pandemic SVB Fallout 810% 417% NKSH Dow Jones U.S. Small Cap Banks Source: S&P Capital IQ Note: Dow Jones U.S. Small Cap Banks tracks the S&P U.S. SmallCap Banks, whic
Slide 15: Proud History of Uninterrupted Dividend Payments
Proud History of Uninterrupted Dividend Payments Common Dividends Declared Per Share: 2000 to 2025 $1.51 $0.43 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Common Dividend Special Dividend Source: S&P Capital IQ Pro
Slide 16: Robust Capital Levels and Return
Robust Capital Levels and Return Actual Well Dividends + Share Repurchases / Net Income NBB at 12/31/2025 Ratio Capitalized Total Capital 17.02% 10.00% Tier 1 Capital 16.16% 8.00% 159% Common Equity Tier 1 16.16% 6.50% Tier 1 Leverage 10.42% 5.00% 122% 109% ✓ NKSH and NBB possess robust regulatory c
Slide 17: Strong Financial Position Provides Optionality
Strong Financial Position Provides Optionality Organic Growth Mergers and ✓ Contiguous and new Acquisitions markets offer more growth prospects than legacy markets ✓ Completed Capital Return acquisition of ✓ Open loan production offices in Frontier Community New Business Bank on June 1, 2024 ✓ Will
Slide 18: Appendix
| Appendix
Slide 19: Non-GAAP Reconciliations – Q4 2025
Non-GAAP Reconciliations – Q4 2025 (In thousands, except per share data) Tangible common equity: Unadjusted efficiency ratio: Total stockholders' equity (GAAP) $184,908 Noninterest income (GAAP) $2,626 Goodwill (10,718) Net interest income, FTE (non-GAAP) 12,923 Core deposit intangible, net (1,490)
Slide 20: Non-GAAP Reconciliations – Q4 2025
Non-GAAP Reconciliations – Q4 2025 (In thousands, except per share data) Unadjusted ROATCE: Net income (GAAP) $5,881 Average tangible common equity (non-GAAP) 169,588 Unadjusted ROATCE (non-GAAP) 13.76% Core ROATCE: Core net income (non-GAAP) $5,374 Average tangible common equity (non-GAAP) 169,588