NKSH

EX-99.1

2 nksh-ex99_1.htm

NATIONAL BANKSHARES, INC. PRESS RELEASE, DATED MARCH 24, 2025

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

CONTACTS:

Lara E. Ramsey, President and CEO

Lora M. Jones, Treasurer & CFO

(540) 951-6250 lramsey@nbbank.com

(540) 951-6238 ljones@nbbank.com

National Bankshares, Inc. Reports Results for the Three and Nine Months Ended September 30, 2026

BLACKSBURG, VA., October 22, 2026 -- National Bankshares, Inc. (“the Company”) (Nasdaq: NKSH), parent company of The National Bank of Blacksburg (“the Bank”) and National Bankshares Financial Services, Inc., today announced its results of operations through the third quarter of 2026. The Company reported net income of $15.50 million or $2.43 per diluted common share for the nine months ended September 30, 2026. This compares with net income of $9.95 million or $1.56 per diluted common share for the nine months ended September 30, 2025. For the three month period ended September 30, 2026 the Company reported net income of $5.49 million or $0.86 per diluted common share. This compares with net income for the three month period ended September 30, 2025 of $4.42 million or $0.69 per diluted common share. National Bankshares, Inc. ended September 30, 2026 with total assets of $1.78 billion.

Lara E. Ramsey, President and CEO, commented, "We are pleased to report strong growth in net income for the third quarter and nine months ended September 30, 2026. Year-to-date earnings increased over 55% from the same period last year, or over 33% when adjusted for nonrecurring items recorded in 2025 and 2026. When the third quarter of 2026 is compared with the second quarter of 2026, earnings increased more than 9%, driven by securities yield improvement. Higher yields on assets and reduced deposit costs have supported income growth throughout 2026, and we expect continued loan repricing to sustain the trend."

Ms. Ramsey continued, "Throughout 2026, we have been building momentum with new products and digital banking tools to attract new customers and strengthen existing relationships. We have prioritized enhancing our sales culture and introduced operational technologies to increase efficiency. These efforts reflect our ongoing commitment to shareholder value grounded in sustainable, customer-focused growth."

Comparability

The Company made minor reclassifications during the current period. Prior periods are presented on a comparable basis.

Highlights

Net Interest Income

The net interest margin improved 21 basis points when the third quarter of 2026 is compared with the second quarter of 2026, led by a 54 basis point improvement in the yield on taxable securities resulting from second quarter's restructuring of a portion of the securities portfolio. When the third quarter of 2026 is compared with the third quarter of 2025, the net interest margin improved 49 basis points, due to improvement in taxable securities yield and a decrease in funding costs. The net interest margin for the nine month period ended September 30, 2026 improved 51 basis points compared with the same period of 2025, driven by higher loan and securities yields and lower deposit costs, somewhat offset by lower yield on interest-bearing deposit assets.

Gain on Sale of Equity Investment and Securities Portfolio Restructuring

During the second quarter of 2026, the Company recorded a gain of $6.57 million on the sale of its membership interest (held by the Company's subsidiary, National Bankshares Financial Services, Inc.) in Bearing Insurance Group, LLC.

Also during the second quarter, the Company completed a strategic repositioning of a portion of its securities available for sale portfolio. The Company sold securities with a total amortized cost of $131.87 million and a weighted average yield of

101 Hubbard Street / Blacksburg, Virginia 24060

P.O. Box 90002 / Blacksburg, Virginia 24062-9002

540 951-6300 / 800 552-4123

www.nationalbankshares.com

1.80%. Following the sale, the Company purchased $127.33 million in mortgage-backed securities with a weighted average yield of 5.26%. The Company expects that incremental earnings improvement from the repositioning will recover the $6.55 million pre-tax loss on the sale over a period of 1.8 years from the date of the transaction, and provide earnings accretion after the recovery period.

Noninterest Income

When the third quarter of 2026 is compared with the second quarter of 2026, service charges on deposit accounts improved due to increased income for non-sufficient funds and periodic maintenance charges. Trust income improved due to higher estate fees. Other income decreased due to lower commissions on securities sales.

When the third quarter of 2026 is compared with the third quarter of 2025, service charges on deposits increased due to higher NSF fees and periodic maintenance charges. Credit and debit card fees, net, increased due to volume. Trust income decreased due to lower estate fees and other income decreased

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EX-99.1

2 nksh-ex99_1.htm

NATIONAL BANKSHARES, INC. PRESS RELEASE, DATED MARCH 24, 2025

EX-99.1

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

CONTACTS:

Lara E. Ramsey, President and CEO

Lora M. Jones, Treasurer & CFO

(540) 951-6250 lramsey@nbbank.com

(540) 951-6238 ljones@nbbank.com

National Bankshares, Inc. Reports Results for the Three Months Ended March 31, 2026

BLACKSBURG, VA., April 23, 2026 -- National Bankshares, Inc. (“the Company”) (Nasdaq: NKSH), parent company of The National Bank of Blacksburg (“the Bank”) and National Bankshares Financial Services, Inc., today announced its results of operations through the first quarter of 2026. The Company reported net income of $5.0 million or $0.78 per diluted common share for the three months ended March 31, 2026. This compares with net income of $3.2 million or $0.51 per diluted common share for the three months ended March 31, 2025. National Bankshares, Inc. ended March 31, 2026 with total assets of $1.83 billion.

President & CEO Lara E. Ramsey commented, “Our first quarter results reflect continued improvement in the net interest margin, with net income growth of over 50% from the first quarter of 2025. We are excited to continue our positive momentum in 2026, with an emphasis on new markets, deepening existing relationships, and offering new services. And we are confident that these efforts, combined with our legacy of efficient expense management, will continue to deliver outstanding shareholder value.”

Comparability

During the second quarter of 2025, the Company reclassified certain deposit products between savings deposits and time deposits, and made other minor reclassifications. Prior periods are presented on a comparable basis.

Highlights

Net Interest Income

The net interest margin improved when the three month period ended March 31, 2026 is compared with the three month periods ended December 31, 2025 and March 31, 2025, due to lower deposit costs and higher security yields. Loan yield improved when the first quarter of 2026 is compared with the first quarter of 2025 due to upward repricing and higher fair value accretion, and decreased when compared with the the fourth quarter of 2025 due to lower fair value accretion and lower average balance.

Noninterest Income

Credit and debit card fees, net, increased when the first quarter of 2026 is compared with the first quarter and last quarter of 2025. The Company's core system conversion and associated changes in 2025 resulted in improved terms for interchange fee income associated with credit and debit cards. Other service charges and fees increased due to a change in timing of recognition of safe deposit box fee income.

Noninterest Expense

Salaries and employee benefits increased when the first quarter of 2026 is compared with the fourth quarter of 2025 and the first quarter of 2025 due to higher medical insurance and incentive programs. Professional services increased due to higher audit and consulting expense.

Securities

The net unrealized loss on securities worsened when March 31, 2026 is compared with December 31, 2025, due to the impact of global uncertainty on bond valuations. The unrealized loss on securities improved when March 31, 2026 is compared with March 31, 2025 due to interest rate changes. The Company purchased $20 million in securities during the

101 Hubbard Street / Blacksburg, Virginia 24060

P.O. Box 90002 / Blacksburg, Virginia 24062-9002

540 951-6300 / 800 552-4123

www.nationalbankshares.com

first quarter of 2026. Analysis as of March 31, 2026 did not indicate credit risk concerns with any of the Company’s securities.

Deposits Deposits increased from December 31, 2025 to March 31, 2026. Deposits decreased when compared with March 31, 2025, due to strategic decisions to reduce time deposit pricing in consideration of strong liquidity. The Company’s depositors within its market areas are diverse and include individuals, businesses and municipalities. The Company does not have any brokered deposits. Depositors are insured up to the FDIC maximum of $250 thousand. Municipal deposits, which account for 22% of the Company’s deposits, have additional security from bonds pledged as collateral, in accordance with state regulation. Of the Company’s non-municipal deposits, approximately 19.80% are uninsured.

Liquidity

The Company’s liquidity position remains solid. The Company maintains borrowing lines with the Federal Home Loan Bank of Atlanta (“FHLB”) and the Federal Reserve that provide substantial borrowing capacity. Combined with a low loan-to-deposit ratio and positive results of the latest liquidity stress testing, the Company believes it is well positioned to meet foreseeable liquidity demands.

Loans and Credit Quality

Loans decreased slightly from December 31, 2025 and March 31, 2025. The Company is positioned to continue to make every loan that meets its underwriting standards. Loan metrics continue to reflect low credit risk, with low charge-off a