National Bankshares (NKSH) investor relations material

Strategic execution and market positioning

• Focused on long-term value creation through strategic expansion and operational improvements.

• Completed acquisition of Frontier Community Bank in 2024, entering new markets with strong growth prospects.

• Opened new branches in Roanoke and Lynchburg, targeting dynamic local economies.

• Maintains a dominant deposit market share in core counties, with top-three ranking in over 85% of deposit markets.

• Hired and promoted experienced bankers to support growth in new and existing markets.

Financial performance and profitability

• Reported Q4 2025 net income of $5.88M ($0.92 per share) and core net income of $5.37M ($0.84 per share).

• Core ROAA at 1.18%, core ROATCE at 12.57%, and core efficiency ratio at 55.77%.

• Net interest margin and profitability have improved, supported by asset/liability repricing and declining deposit costs.

• Maintains strong liquidity and credit quality, with conservative underwriting and manageable CRE exposure.

• Fee income represents 17% of revenue, with trust income showing a 6.7% CAGR from 2018-2025.

Capital management and shareholder returns

• Robust capital ratios: total capital 17.02%, tier 1 capital 16.16%, CET1 16.16%, and tier 1 leverage 10.42%.

• Returned capital through dividends and share repurchases, including a $1.00 special dividend in 2023.

• Renewed stock repurchase plan in May 2025, authorizing up to 250,000 shares.

• Delivered 417% total shareholder return from 2000 to 2025, outperforming the Dow Jones U.S. Small Cap Banks index.

• Maintained uninterrupted dividend payments with a 5.2% CAGR in dividends per share since 2000.