National Bankshares Inc (NASDAQ: NKSH)

National Bankshares, Inc. is a financial holding company that primarily operates through its wholly-owned community bank subsidiary, The National Bank of Blacksburg, and its financial services subsidiary, National Bankshares Financial Services, Inc. The company provides a full range of retail and commercial banking services, including lending, deposit products, and trust and wealth management activities, across southwest, western and central Virginia. Through its subsidiaries, National Bankshares, Inc. delivers traditional banking solutions as well as investment and insurance products to individual and business customers.

National Bankshares, Inc. generates revenue mainly from interest and fees on loans, which accounted for 65.00% of total operating revenue in 2025. Interest on investments contributed an additional 19.54% of operating revenue in the same year. The National Bank of Blacksburg earns interest income from its loan portfolio, which includes commercial and agricultural loans, commercial real estate, construction financing, residential mortgages, home equity loans and various consumer loans. Deposit products such as interest-bearing and non-interest bearing demand accounts, money market accounts, savings accounts, certificates of deposit, health savings accounts and individual retirement accounts also generate revenue through the spread between loan yields and deposit costs. National Bankshares Financial Services, Inc. adds revenue by selling non-deposit investment products and insurance policies, working with Osaic, Inc. for investment services and Bearing Insurance Group, LLC for insurance products.

The company operates through the following segments:

• The National Bank of Blacksburg: This segment provides retail and commercial banking services, including loan origination and servicing, deposit taking, ATM access, online and mobile banking, and trust and wealth management for individual and business customers.

• National Bankshares Financial Services, Inc.: This segment offers non-deposit investment products and insurance policies, partnering with Osaic, Inc. to deliver securities and investment advice and with Bearing Insurance Group, LLC to provide insurance coverage to the public.

National Bankshares, Inc. competes with larger national banks, regional banks, credit unions, securities firms, mortgage companies, insurance companies and other nonbank financial service providers in its market area. The company’s competitive advantages stem from its deep knowledge of local markets, a service‑oriented business philosophy, long‑standing personal relationships with customers, the ability to tailor specialized products to meet specific needs, and the convenience of its branch network and digital banking platforms. These strengths enable the company to attract and retain customers despite facing competitors with greater asset bases and broader product arrays.

National Bankshares, Inc. serves individuals, small and mid‑sized businesses, non‑profit organizations and local governmental entities throughout its Virginia footprint. The customer base includes retail consumers seeking checking and savings accounts, mortgages and personal loans; business clients requiring commercial loans, treasury management and merchant services; nonprofit organizations needing deposit accounts and financing; and municipal entities looking for banking services and credit facilities.