National Bankshares (NKSH) investor relations material

Strategic execution and growth initiatives

• Achieved over 50% net income growth year-over-year in Q1 2026, with reported net income of $4.98M and core net income of $4.80M.

• Expanded into new markets through the acquisition of Frontier Community Bank, adding branches in Waynesboro, Staunton, and Lynchburg.

• Opened new branch facilities in Roanoke and Lynchburg, targeting markets with strong economic prospects.

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

• Maintained a strong liquidity position and credit quality while pursuing organic and inorganic growth.

Financial performance and profitability

• Total assets reached $1.8B, with $1.0B in gross loans and $1.6B in deposits as of Q1 2026.

• Core ROAA was 1.07% and core ROATCE was 11.21% for Q1 2026.

• Net interest margin improved due to lower deposit costs and higher securities yields.

• Efficiency ratio remained strong at 59.96%, reflecting disciplined expense management.

• Market capitalization stood at $234M, with a price/tangible book value of 1.33x and a dividend yield of 4.1%.

Market position and revenue diversification

• Holds dominant or top-three deposit market share in core counties, representing over 85% of total deposits.

• Revenue diversification supported by fee income streams, with trust income showing a 6.7% CAGR from 2018-2025.

• Fee income accounted for 17% of total revenue in Q1 2026.

• Maintains a retail and small business-oriented deposit base, with 53% in non-interest-bearing demand accounts.