National Bankshares (NKSH) investor relations material

Executive summary

• Q3 2026 net income was $5.488 million, or $0.86 diluted EPS, versus $4.420 million and $0.69 in Q3 2025; 9M net income was $15.498 million, or $2.43 diluted EPS.

• September 30, 2026 balances included $1.78 billion in assets, $1.577 billion in deposits and $1.018 billion in gross loans; the branch network had 28 full-service locations and one LPO.

• Higher asset yields, loan repricing and lower deposit costs supported earnings growth; prior-year core conversion costs also contributed to the comparison.

Financial highlights

• Q3 net interest income was $13.847 million versus $11.674 million; 9M net interest income was $39.520 million versus $32.915 million.

• 9M reported net income included a $6.566 million equity-investment gain and a $6.549 million securities-sale loss; earnings rose over 33% YoY adjusted for nonrecurring items in 2025 and 2026.

• Q3 noninterest income was $2.574 million, up 1.46% YoY; 9M noninterest income was $7.899 million, up 7.09%, including the equity gain and securities loss.

• Q3 noninterest expense rose 9.31% to $9.318 million; 9M expense increased 0.75% to $27.948 million, with 2025 including $2.073 million of core conversion expense.

Outlook and guidance

• Securities repositioning is expected to recover its $6.549 million pretax sale loss within 1.8 years and generate earnings accretion thereafter; projected NIM contribution is 12 bps in 2026 and 24 bps in 2027 under stated assumptions.

• Continued loan repricing and higher asset yields are expected to support income growth; construction loan balances are expected to rise as approved projects advance, subject to underwriting and portfolio goals.

• Q4 securities paydowns and maturities are expected to repay short-term borrowings used to fund securities purchases.

• Credit-loss forecasts use 12 months of national unemployment projections followed by 12-month straight-line reversion; the latest forecast was lower than at year-end 2025.