National Bankshares, Inc. · NASDAQ:NKSH
National Bankshares — Investor Presentation (October 2023)
18 slides from National Bankshares's investor presentation, Oct 27, 2023
Slide 1: Successfully Executing Strategy to Drive Long-Term Value for All Shareholders
Successfully Executing Strategy to Drive Long-Term Value for All Shareholders A National Bankshares
Slide 2: Forward-Looking Statements
Forward-Looking Statements Thi ion of National Bankshares, Inc. (the “Company” contains forward-looking statements within the meaning ofthe Privat Secures Ligation Reform Act of 1995, These forward.looking statement are subject to significant risks. spon our 3 views and ‘28 of the date ofthis The wo
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This | contains nancial by methods other than in with principles generally accepted in the United States of America ( GAAP"), The Company's management uses these non-GAAP financial measures ints analysis of the Companys performance. These measures typically adjust GAAP pe
Slide 4: Q3 2023 Highlights
| ¥ Maintained solid liquidity position with substantial borrowing capacity to meet foreseeable liquidity demands Q3 2023 Highlights EPS ROAA ROATCE Efficiency Ratio ¥ Reported net income for the quarter of $3.07 million or $0.52 per common share and core net income of $2.76 million | | er $0.47 per
Slide 5: NKSH at a Glance
NKSH at a Glance Financial Hight (as of or for the quarter ended 9/30/2023) Assets S16 billion Gross Loans $849 million Deposits S15billion Shareholders Equity S16 millon TCE / TAP 70% GAAP Net Income: $2.1 million (Core ROAR 077% Core ROATCE” 9.1% (Core Eticiency Ratio® 680% Valuation Highlights (a
Slide 6: Delivering Exceptional Returns to Our Shareholders
Delivering Exceptional Returns to Our Shareholders Total Shareholder Return: January 2000 to September 2023 Selected Pandeme ——SYBFallout Loe ptt beet PEER LES APE Se, %, %, Se Se, Se, Se Se Se, Se
Slide 7: Consistently Growing Our Dividend
Consistently Growing Our Dividend ‘Common Di lends Declared Per Shar 100 to 2023 YTD.
Slide 8: Peer-Leading Efficiency and Profitability
Peer-Leading Efficiency and Profitability 2022 Eficiency Ratio
Slide 9: Dominant Market Share in Our Core Markets
Dominant Market Share in Our Core Markets Market Branches in Depositsin Deposit cou Rank cat Montgomery (3 ; 7 $683 23.4% (45.8%) Tazewell itt 7 255 19.7% } Pulaski ta 3 198 39.4% | Giles ha} 3 157 61.5% st Wythe 5 1 9 12.4% representing | Radford (Ciy) 4 1 45 122% >80% of | Galax City) 5 1 38 91% d
Slide 10: Deposit Base Well Positioned for Higher Rates
Deposit Base Well Positioned for Higher Rates (Feil odoin ered dopatbase 7) | v Low deposit beta during last Fed tightening cycle | ¥ Limited reliance on time deposits and wholesale funding | Suora aut postion eens important ing IPLEEPEEPEIOEEIGSED
Slide 11: Responsible Lending Drives Pristine Credit Quality
Responsible Lending Drives Pristine Credit Quality £7 Genser underwring anders Net Charge-offs / Average Loans: 2008 to 2022 | ¥ No high-risk lending concentrations | ¥ No lending to VC/PE industry . | Low Ie and high OScRe | v Limited exposure to Covid-impacted indusvies . Ni ddddJiJJas
Slide 12: Performance During Periods of Stress
| Performance During Periods of Stress ‘TSR: Financial Crisis Peak to Trough” TSR: Financial Crisis Peak to Current” ‘TSR: Covid-19 Pandemic Peak to Trough) TSR: Covid-19 Pandemic Peak to Current?) Selecedeeni2) — SAPUS.EMI orks te vonteoa pind OO803 2900 Seopa eg ee
Slide 13: Peer-Leading Capital Levels and Return
| Peer-Leading Capital Levels and Return capital ane = I I T ‘Y NKSH and NBB possess robust regulatory capital levels | ONKSH wSelected Poort ¥ We carelully consider all options for our excess capital in Value of Share Repurchases / Net Income % light ofthe operating environment ¥ Wie have prudently
Slide 14: Strong Financial Position Provides Optionality
Strong Financial Position Provides Optionality Organic Growth Mergers and ¥ Contiguous and new ‘markets offer more growth prospects than legacy Acquis nets PEORROREE Capital Return ecentyesabiched loan” merger porners and rosucionatees Toe gor marae Groton and dmeaiontet Staunton ¥ Will not overpay
Slide 15: Appendix
| Appendix _
Slide 16: Peer Group Detail
Peer Group Detail NKSH Selected Peers”) ‘ACNB Corporation First United Corporation ‘American National Bankshares Inc. Limestone Bancorp Amerisery Financial, Inc. Mid Penn Bancorp (C&F Financial Corporation (Old Point Financial Corporation Capstar Financial Holdings, Inc. Penns Woods Bancorp, Inc. Co
Slide 17: Non-GAAP Reconciliations - Q3 2023
Non-GAAP Reconciliations - Q3 2023 Inngible common equ, Team socera ders ey (GAAP Leas Good “regis common equity non-GAAP) Tangible assets: Tota asses (GAAP) Use Good “ergile mets (non GAAP) ‘angie common equty non-GAAP) Tangible ets (no GAAP) Tangle common equty/ tangle anes on GAAP) Tange commaneq
Slide 18: Non-GAAP Reconciliations - Q3 2023
Non-GAAP Reconciliations - Q3 2023 Netincome (GABP? ‘Breage lng common equity ron GAAP Unacusted ROATCE (non-GAAP) Core net ncore (00% GAAP) ‘uerage tangle conmon equty(ron-GAAP) Com ROATCE (non GAR?) UnadustedROAA: Net ncome (GAAP? Peerage mots GAAP) ‘nacusted ROAA GAAP) ore ROARS Core netncome 0 (
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