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 ...

Financial Performance - Net income for the three months ended September 30, 2023, was $3,074 thousand, a decrease of 50.1% compared to $6,162 thousand for the same period in 2022[11]. - Basic net income per common share for the three months ended September 30, 2023, was $0.52, down from $1.03 in the same period of 2022, a decrease of 49.5%[11]. - For the nine months ended September 30, 2023, net income was $11,506 thousand, a decrease of 30.7% from $16,622 thousand in the same period of 2022[16]. - The net income for the nine months ended September 30, 2023, is $11,506,000, down from $16,622,000 for the same period in 2022, representing a decrease of about 30.5%[25]. - NBI's net income for the three months ended September 30, 2023, was $3.074 million, down from $6.162 million in the same period of 2022, reflecting a decrease of 50%[160]. - Diluted earnings per share for the nine months ended September 30, 2023, was $1.95, a decrease of 29.5% compared to $2.77 in 2022[135]. Asset and Deposit Changes - Total assets decreased to $1,591,902 thousand as of September 30, 2023, down from $1,677,551 thousand at December 31, 2022, representing a decline of approximately 5.1%[8]. - Total deposits decreased to $1,465,000 thousand as of September 30, 2023, from $1,542,725 thousand at December 31, 2022, a decline of approximately 5.0%[8]. - Loans, net decreased slightly by 0.44% from $852,744 million on December 31, 2022, to $848,975 million on September 30, 2023[205]. - Time deposits increased significantly by 177.82% from $67,629 million on December 31, 2022, to $187,885 million on September 30, 2023[206]. Income and Expense Analysis - Total interest income increased to $14,679 thousand for the three months ended September 30, 2023, up 11.5% from $13,155 thousand in the same period of 2022[11]. - Net interest income after provision for credit losses was $9,041 thousand for the three months ended September 30, 2023, down 25.5% from $12,150 thousand in the prior year[11]. - Noninterest expense increased to $7,465 thousand for the three months ended September 30, 2023, up 10.9% from $6,736 thousand in the same period of 2022[11]. - Total noninterest income for the three months ended September 30, 2023, was $2,115 million, a slight decrease of 1.2% from $2,140 million in the same period of 2022[124]. - Noninterest expense for the nine months ended September 30, 2023 was $22,686 million, up from $19,660 million in the same period of 2022[160]. Credit Losses and Allowances - The total allowance for credit losses on loans reached $10,181 million as of September 30, 2023, up from $8,225 million at the end of 2022[61]. - The provision for credit losses for the nine months ended September 30, 2023, was a recovery of $389 million, indicating improved credit quality[61]. - The net charge-off ratio was 0.00% as of September 30, 2023, compared to 0.03% at the end of 2022, indicating improved asset quality[178]. - The ratio of nonperforming assets to loans was 0.43% as of September 30, 2023, slightly down from 0.44% at the end of 2022, reflecting stable asset quality[178]. Securities and Investments - The total amount of equity lines was $16,654 million as of September 30, 2023, compared to $15,026 million as of December 31, 2022[57]. - The gross unrealized losses on securities available for sale totaled $110,531 million as of September 30, 2023, compared to $103,152 million as of December 31, 2022[84]. - The Company reported a loss on sales of securities available for sale of $3,332,000 in 2023, while there was no loss reported for the same period in 2022[25]. - The fair value of securities available for sale was $591,552 as of September 30, 2023, all classified under Level 2[113]. Operational Efficiency - The efficiency ratio increased to 67.96% in Q3 2023, compared to 45.59% in Q3 2022[160]. - The adjusted return on average assets for the three months ended September 30, 2023, was 0.71%, compared to 1.41% for the same period in 2022[152]. - The net interest margin for the three months ended September 30, 2023, was 2.23%, down from 2.95% in the same period of 2022[155]. Future Outlook and Strategic Initiatives - NBI plans to open a new full-service branch in Roanoke, Virginia, in 2024, expanding its loan production office in the Roanoke Valley[143]. - The company continues to monitor risk levels within the loan portfolio, particularly in light of potential economic downturns affecting real estate values[199].

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 June 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 (State or oth ...

Financial Performance - Net income for Q1 2023 was $4,531 thousand, a decrease of 7.2% from $4,886 thousand in Q1 2022[12]. - Net interest income for the three months ended March 31, 2023, was $10,946 thousand, an increase of 5.3% compared to $10,395 thousand for the same period in 2022[12]. - Total noninterest income decreased to $2,199 million in Q1 2023 from $2,291 million in Q1 2022, a decline of 4.0%[129]. - The adjusted return on average assets for Q1 2023 was 1.16%, compared to 1.11% in Q1 2022[160]. - The adjusted return on average equity for Q1 2023 was 15.25%, up from 10.21% in Q1 2022[160]. - The efficiency ratio for Q1 2023 was 54.99%, compared to 52.71% in Q1 2022, indicating a decrease in operational efficiency[157]. Asset and Deposit Changes - Total assets decreased to $1,654,277 thousand as of March 31, 2023, down from $1,677,551 thousand at December 31, 2022, representing a decline of approximately 1.4%[9]. - Total deposits decreased to $1,511,452 thousand as of March 31, 2023, down from $1,542,725 thousand at December 31, 2022, reflecting a decline of approximately 2.0%[9]. - Interest-bearing deposits fell by 77.84% to $19,715, while noninterest-bearing demand deposits decreased by 8.68% to $308,908[201]. - The company experienced increased competitive pressure on deposits, prompting a response with special CD offerings and improved rates[206]. Credit Losses and Loan Portfolio - The provision for credit losses was $2 thousand in Q1 2023, significantly lower than $134 thousand in Q1 2022, indicating improved credit quality[12]. - The allowance for credit losses on loans increased to $10,650 million as of March 31, 2023, up from $8,225 million at December 31, 2022, representing a rise of 29.5%[53]. - The total loan portfolio, net of unearned income and deferred fees and costs, was $856,965 million as of March 31, 2023, compared to $852,744 million at December 31, 2022, reflecting a slight increase of 0.26%[53]. - The ratio of allowance for credit losses to nonaccrual loans was 378.46% as of March 31, 2023, significantly higher than 272.12% at December 31, 2022[60]. - The total loans past due 90 days or more and still accruing was 0.00% as of March 31, 2023, unchanged from December 31, 2022[60]. Securities and Investments - The total fair value of securities available for sale decreased from $656,852 million on December 31, 2022, to $651,047 million on March 31, 2023[81]. - The unrealized holding gain on available-for-sale securities was $14,847 thousand as of March 31, 2023, compared to a loss of $42,818 thousand in the same period last year[22]. - The company realized net securities gains of $12 million during the first three months of 2023, from sales with an amortized cost basis of $17,987 million[90]. - The deferred tax asset for net unrealized losses on securities available for sale was $18,526 million as of March 31, 2023, down from $21,644 million as of December 31, 2022[82]. Noninterest Expenses - Noninterest expense increased to $7,664 thousand in Q1 2023, up 15.9% from $6,613 thousand in Q1 2022[12]. - Total noninterest expense increased by 15.89% to $7,664 million for the three months ended March 31, 2023, driven mainly by higher salaries and professional services expenses[196]. - Cybersecurity measures cost the company $63 million in Q1 2023, down from $94 million in Q1 2022[143]. Loan Quality and Risk Management - The Company is closely monitoring risks such as high inflation and U.S. monetary policy, which may impact customer demand for banking services and loan repayment capabilities[26]. - The Company categorizes loans by risk based on borrowers' ability to service their debt, including collateral and financial information[72]. - The total charge-offs for the three months ended March 31, 2023, are $92 million, with recoveries amounting to $173 million[61]. - The company has not identified any collateral-dependent loans as of March 31, 2023[71]. Dividends and Stockholder Equity - The company declared dividends of $1.00 per common share in Q1 2023, compared to no dividends declared in Q1 2022[12]. - The total stockholders' equity increased to $131,043 thousand as of March 31, 2023, up from $122,687 thousand at December 31, 2022, representing a growth of approximately 6.8%[9].

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, 2022 ☐ 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, 2022 54-1375874 (I.R.S. Employer Identification No.) (State or other jurisdiction of incorporation or organization) 101 Hubbard Street Blacksburg, Virginia 24062-9002 (Address of principal executive offices) (540) 951-6300 (Registrant's telephone number, including area code) ...

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 June 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ NATIONAL BANKSHARES, INC. (Exact name of registrant as specified in its charter) Commission File Number 0-15204 Virginia (State or ot ...

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, 2022 ☐ 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 o ...

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, 2021 ☐ 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, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ NATIONAL BANKSHARES, INC. (Exact name of registrant as specified in its charter) Commission File Number 0-15204 Virginia (State ...