Think of it as the Bank of America for Southwest Virginia.

JPMorgan Chase for Southwest Virginia.

• Deposit Accounts: Offers a variety of checking, savings, money market, certificates of deposit, health savings accounts, and individual retirement accounts.
• Loan Products: Provides commercial and agricultural, commercial real estate, residential real estate, home equity, consumer, and construction loans.
• Debit and Credit Cards: Issues both business and consumer debit and credit cards.
• Wealth Management, Trust, and Estate Services: Delivers services for managing financial assets, trusts, and estates.
• Investment and Insurance Products: Offers non-deposit investment and insurance products.
• Digital Banking Services: Includes telephone, mobile, and Internet banking for convenient access and management.
• Auxiliary Banking Services: Provides letters of credit, night depository, safe deposit boxes, utility payment services, and automatic funds transfers.

National Bankshares (NKSH) primarily serves a diverse set of customers, including individuals and various organizations. Based on the provided description, its major customer categories are:

• Individuals: The company provides a wide range of retail banking products and services, including various deposit accounts (interest-bearing and non-interest bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit), residential real estate loans, home equity loans, various consumer loan products, health savings accounts, individual retirement accounts, and debit and credit cards to individual consumers.
• Businesses: National Bankshares offers commercial banking products and services to businesses. This includes commercial and agricultural loans, commercial real estate loans, loans for the construction of commercial properties, and business debit and credit cards, as well as wealth management, trust, and estate services.
• Non-profits and Local Governments: The company explicitly provides commercial banking products and services tailored for non-profit organizations and local government entities.

Lara E. Ramsey President and Chief Executive Officer

Ms. Ramsey was appointed President and Chief Executive Officer of National Bankshares, Inc. and The National Bank of Blacksburg, effective July 1, 2025. She has been with the company since 1996, previously holding roles such as Senior Vice President of Administration, where she oversaw Investment, Human Resources, Marketing, Training, and Corporate Secretary functions, and Executive Vice President and Chief Operating Officer. Ms. Ramsey holds bachelor's degrees in Psychology and Economics and a Master's Degree in Industrial and Organizational Psychology from Radford University. She is also an alumna of the Virginia Bankers Association's School of Bank Management, the American Bankers Association's Stonier Graduate School of Banking, and The New River Valley Leadership program, and is a certified Senior Professional in Human Resources.

Lora M. Jones Executive Vice President, Treasurer and Chief Financial Officer

Ms. Jones serves as Executive Vice President, Treasurer, and Chief Financial Officer. She joined National Bankshares in 2010 as a Corporate Analyst, was promoted to Corporate Analysis Officer in 2011, and became Controller in 2014. Before her tenure at National Bankshares, Ms. Jones worked as a Supervisory Senior Accountant at Yount, Hyde, and Barbour, P.C. She is a Certified Public Accountant and holds a Bachelor's Degree in Finance and a Master's Degree in Accounting and Information Systems from Virginia Tech. She is a member of both the Virginia Society of Certified Public Accountants and the American Institute of Certified Public Accountants.

Paul M. Mylum Executive Vice President and Chief Lending Officer

Mr. Mylum joined The National Bank of Blacksburg in 2012 as Senior Vice President of Loans. He brings over 30 years of commercial lending experience, having previously served as a lender at Bank of America, First Citizens Bank, and First Bank and Trust. Mr. Mylum is a graduate of Virginia Tech.

David K. Skeens Executive Vice President and Chief Risk Officer

Mr. Skeens has been with the company since 1990. His past roles include Auditor, Senior Vice President of Operations and Risk Management, and Chief Financial Officer. He earned his Bachelor's Degree in Accounting from Radford University and is a graduate of the Graduate School of Banking at Louisiana State University. Mr. Skeens holds Certified Financial Services Auditor and Certified Trust Auditor designations.

Bobby D. Sanders II Senior Vice President and Chief Credit Officer

Mr. Sanders joined The National Bank of Blacksburg in 2022. He has nineteen years of experience in lending and credit administration. Mr. Sanders holds a Bachelor of Business Administration degree from Western Carolina University and is a graduate of the American Bankers Association Stonier Graduate School of Banking.

Key Risks to National Bankshares (NKSH)

1. Credit Risk and Regional Economic Dependence: National Bankshares operates primarily in Southwest Virginia, with a significant portion of its loan portfolio consisting of commercial, agricultural, residential real estate, and construction loans. This concentration makes the company highly susceptible to the economic health and stability of this specific region. A downturn in the Southwest Virginia economy, declines in real estate values, or struggles within the agricultural or commercial sectors could lead to increased loan defaults, higher non-performing assets, and reduced demand for the bank's lending products, thereby negatively impacting its financial performance.
2. Interest Rate Risk: As a traditional bank, National Bankshares' profitability is significantly influenced by interest rate fluctuations. The company generates revenue from the spread between the interest earned on its loan portfolio and investments and the interest paid on its deposits and borrowings. Rapid or unexpected changes in market interest rates, particularly if the rates on deposits increase faster than the rates on loans, could compress the bank's net interest margin, reducing its profitability.

• Digital-only banks and other fintech companies that offer a completely online/mobile banking experience, often with lower fees, higher interest rates on deposits, and more convenient digital services, directly challenging the traditional branch-based model for deposits and consumer loans.
• Large technology companies (e.g., Apple, Google, Amazon) expanding their offerings into financial services such as payments, lending, and other banking-adjacent products, leveraging their massive user bases and technological capabilities to disintermediate traditional banks.

National Bankshares (NKSH) anticipates several key drivers for its future revenue growth over the next two to three years.

1. Expansion into New Markets: The company has strategically opened new branch facilities in Roanoke and Lynchburg, aiming to tap into these "dynamic economies" to drive growth.
2. Launch of Innovative Products and Services: Following a core systems conversion, National Bankshares is now better positioned to offer innovative new products and services, which are expected to enhance customer experience and contribute to revenue growth.
3. Improvement in Net Interest Margin: Higher loan yields and reduced deposit costs have already driven net interest margin improvement, which was a significant contributor to net income gains in 2025 and is expected to continue impacting revenue positively.
4. Organic Growth in Lending and Deposits: National Bankshares is committed to growing value for its customers and shareholders by elevating its brand as the bank of choice in its communities. This commitment, coupled with its expansion into new markets, suggests a continued focus on attracting new customers and increasing its loan and deposit bases.

Share Repurchases

• National Bankshares' Board of Directors renewed a stock repurchase plan on May 14, 2025, authorizing the purchase of up to 250,000 shares of common stock from June 1, 2025, to May 31, 2026.
• The company's prior stock repurchase plan expired on May 31, 2025.
• National Bankshares spent $0 on share buybacks in the third quarter of 2024. The last twelve months' (LTM) buyback yield as of March 2026 was 0.0%, indicating minimal recent repurchases.

Share Issuance

• The acquisition of Frontier Community Bank on June 1, 2024, increased National Bankshares' stockholders' equity by $14.3 million.
• As of Q3 2025, National Bankshares had 6 million shares outstanding, with a 5-year compound annual growth rate (CAGR) of -0.4%, suggesting no significant net share issuance over the last five years.

Inbound Investments

• No significant inbound investments made in National Bankshares by third-parties have been reported in the last 3-5 years.

Outbound Investments

• National Bankshares, Inc. completed the acquisition of Frontier Community Bank (FCB) on June 1, 2024.
• The acquisition of FCB added $118.7 million in loans, $4.9 million in goodwill, and $2.1 million in core deposit intangibles to National Bankshares.
• Merger expenses related to the FCB acquisition were included in noninterest expense in 2024.

Capital Expenditures

• National Bankshares upgraded to a new core banking system, with most of the conversion expense recognized in the second quarter of 2025.
• Noninterest expense in both 2025 and 2024 included costs associated with this core banking system upgrade.
• The company invested $800K in capital expenditures during the third quarter of 2025, and also opened new branch facilities in Roanoke and Lynchburg in 2025.