CONTACTS: F. Brad Denardo, Chairman and CEO Lora M. Jones, Treasurer & CFO (540) 951-6213 bdenardo@nbbank.com (540) 951-6238 ljones@nbbank.com National Bankshares, Inc. Reports Results for the Fourth Quarter and Twelve Months Ended December 31, 2024 BLACKSBURG, VA., January 23, 2025 -- 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 for the year ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number: 0-15204 NATIONAL BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 54-1375 ...

Financial Performance - National Bankshares, Inc. reported net income of $4.54 million or $0.75 per basic common share for the nine months ended September 30, 2024, a decrease from $11.51 million or $1.95 per share for the same period in 2023[2]. - For the third quarter of 2024, net income was $2.68 million or $0.42 per share, compared to $3.07 million or $0.52 per share in the third quarter of 2023[2]. - Net income for the nine months ended September 30, 2024, was $4,544,000, a decline of 60.5% compared to $11,506,000 in the same period of 2023[22]. - Basic net income per common share decreased to $0.75 from $1.95, reflecting a 61.5% drop year-over-year[22]. - Net income for the three months ended September 30, 2024, was $2,676 thousand, compared to a net loss of $306 thousand for the three months ended June 30, 2024, and a net income of $3,074 thousand for the three months ended September 30, 2023[19]. Asset and Loan Growth - Total assets as of September 30, 2024, were $1,785,033 thousand, a decrease of 1.3% from $1,809,215 thousand on June 30, 2024, and an increase of 11.9% from $1,591,902 thousand on September 30, 2023[14]. - Total loans increased to $1,002,241 thousand as of September 30, 2024, up 1.3% from $989,898 thousand on June 30, 2024, and up 17.9% from $849,417 thousand on September 30, 2023[14]. - Gross loans reached $994,876, an increase of 17.9% compared to $843,892 in the same period last year[27]. - Loans increased from June 30, 2024, driven by growth in consumer and commercial real estate loans, with low credit risk metrics[10]. Income and Expenses - Total interest income for the nine months ended September 30, 2024, was $51,805,000, an increase of 19.4% from $43,320,000 in the same period of 2023[21]. - Total noninterest expense increased to $26,388,000, up 16.1% from $22,665,000 in the previous year[22]. - Noninterest income for the nine months ended September 30, 2024, increased due to service charges on deposits and trust income growth[6]. - Noninterest expenses increased due to the FCB acquisition and contract termination expenses, but decreased in Q3 2024 compared to Q2 2024[7]. Credit Losses and Allowances - The provision for credit losses was $1,287,000, compared to a recovery of $(368,000) in the previous year[21]. - The allowance for credit losses decreased to $10,328 thousand as of September 30, 2024, from $10,502 thousand on June 30, 2024, and increased from $10,181 thousand on September 30, 2023[14]. - The allowance for credit losses on loans to total loans ratio stood at 1.03%, down from 1.20% a year ago[29]. Equity and Shareholder Information - Stockholders' equity increased as of September 30, 2024, primarily due to the acquisition and improvement in unrealized losses on securities[11]. - Total shareholders' equity increased to $156,111, up from $126,612 in the same period last year, marking a growth of 23.2%[27]. - Book value per common share increased to $26.38 as of September 30, 2024, from $23.42 on June 30, 2024, and from $19.71 on September 30, 2023[19]. - The weighted average number of common shares outstanding increased to 6,092,468 from 5,889,687, indicating a growth in share count[22]. Efficiency and Margins - The net interest margin improved in Q3 2024 compared to Q2 2024, driven by increased loan yields outpacing deposit costs[5]. - The net interest margin for the nine months ended September 30, 2024, was 2.14%, compared to 2.45% in the same period of 2023[25]. - The efficiency ratio was reported at 69.80%, slightly higher than 67.96% from the previous year[27]. - Adjusted return on average assets (non-GAAP) is 0.42% for the nine months ended September 30, 2024, compared to 0.94% for the same period in 2023[37]. Acquisition Details - The company recorded merger-related expenses of $2.89 million during the nine months ended September 30, 2024, and a provision for credit loss of $1.29 million upon acquiring Frontier Community Bank loans[3]. - The acquisition of Frontier Community Bank totaled $16.35 million, including $14.30 million in common stock and $2.05 million in cash[4].

Core Viewpoint - National Bankshares reported a quarterly loss of $0.05 per share, significantly missing the Zacks Consensus Estimate of $0.32, and down from earnings of $0.66 per share a year ago, indicating a substantial earnings surprise of -115.63% [1] Financial Performance - The company posted revenues of $10.95 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 4.24%, and down from $12.01 million in the same quarter last year [2] - National Bankshares has not surpassed consensus EPS estimates over the last four quarters, indicating a consistent underperformance [2] Stock Performance - Shares of National Bankshares have declined approximately 10.1% since the beginning of the year, contrasting with the S&P 500's gain of 13.9% [3] - The current Zacks Rank for National Bankshares is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.52 on revenues of $11.64 million, and for the current fiscal year, it is $1.94 on revenues of $44.87 million [7] - The trend of estimate revisions for National Bankshares is mixed, which could change following the recent earnings report [6] Industry Context - The Banks - Southeast industry, to which National Bankshares belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

FOR IMMEDIATE RELEASE CONTACTS: F. Brad Denardo, Chairman, President & CEO (540) 951-6213 bdenardo@nbbank.com Lora M. Jones, Treasurer & CFO (540) 951-6238 ljones@nbbank.com National Bankshares, Inc. Reports Results for the First Half of 2024 BLACKSBURG, VA., July 25, 2024 -- 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 for the first half of ...

Core Viewpoint - National Bankshares, Inc. has successfully completed the acquisition of Frontier Community Bank, enhancing its operational footprint and total assets [1][4]. Summary by Sections Acquisition Details - The acquisition of Frontier Community Bank was valued at approximately $16.07 million and became effective on June 1, 2024 [1][2]. - Following the merger, National Bankshares operates 27 full-service offices and two loan production offices, with total assets amounting to approximately $1.8 billion [1]. Shareholder Consideration - Each share of Frontier common stock was converted into either $14.48 in cash or 0.4250 shares of National Bankshares common stock, with shareholders having the option to elect their preferred form of consideration [2]. Operational Integration - The three former Frontier branches in Waynesboro, Staunton, and Lynchburg, Virginia, reopened under the National Bank name on June 3, 2024 [3]. Leadership and Cultural Alignment - F. Brad Denardo, President and CEO of National Bankshares, expressed enthusiasm about welcoming Frontier's customers and employees, emphasizing the commitment to personalized service and community engagement [4]. - Alan Sweet, former CEO of Frontier, will join the boards of directors of both National Bankshares and National Bank, highlighting the cultural and value alignment between the two organizations [4]. Company Overview - National Bankshares, Inc. is headquartered in Blacksburg, Virginia, and operates as the parent company of The National Bank of Blacksburg and National Bankshares Financial Services, Inc., with a focus on community banking [5].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number 0-15204 NATIONAL BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia (State or ot ...

President and CEO F. Brad Denardo commented, "High interest rates and the elevated cost of deposits negatively impacted earnings once again in the first quarter. We were pleased with the improvement in interest income compared to December 31, 2023, and we anticipate further progress as assets continue to reprice at higher rates. Our expansion plans are moving forward with the construction of our new Roanoke, Virginia branch office and the planned acquisition of Frontier Community Bank in the second quarter. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended December 31, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ________ to ________. Commission File Number: 0-15204 NATIONAL BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia (State or other ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 0-15204 NATIONAL BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 54-1375874 (State or other ...