National Bankshares (NKSH) Q2 2026 earnings summary

Executive summary

• Q2 2026 net income was $5.03M ($0.79 diluted EPS), versus $2.29M ($0.36) a year earlier; six-month net income was $10.01M ($1.57), versus $5.53M ($0.87).

• At June 30, 2026, total assets were $1.83B, deposits $1.63B and gross loans $1.015B; the Virginia network had 28 full-service offices and one LPO.

• Earnings growth reflected improved net interest margin and lower noninterest expense, along with a gain on sale of an equity investment partly offset by a securities repositioning loss.

Financial highlights

• Q2 net interest income was $13.05M versus $10.99M in Q2 2025; six-month net interest income was $25.67M versus $21.24M.

• Net interest margin was 3.00% in Q2 versus 2.56%; the six-month margin was 2.99% versus 2.48%.

• Q2 noninterest income rose 16% YoY to $2.6M, including a $6.57M equity-investment gain and $6.55M securities-sale loss; six-month noninterest expense was $18.63M versus $19.22M.

• Q2 noninterest expense declined 12% YoY, reflecting lower core system conversion costs.

Outlook and guidance

• Securities repositioning is expected to add $4.25M in annual interest income, increase NIM by 12 bps in 2026 and 24 bps in 2027, and recover the realized loss in 1.8 years.

• Additional deposit product releases and operational enhancements are planned for the remainder of 2026.

• Focus areas include market-share growth, product and technology optimization, and shareholder value.