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NKSH

National Bankshares, Inc.

NKSH

National Bankshares, Inc. • NASDAQ
$29.53 ▲ 0.51% (+0.15)
Market Cap $187.83 M
52w High $32.36
52w Low $23.75
Dividend Yield 1.51%
P/E 14.4
Volume 5.30K
Outstanding Shares 6.36M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $0 ▼ $0 ▼ $0 ▼ 0% ▼ $0.69 ▲ $829K ▼
Q2-2025 $20.816M ▲ $10.583M ▲ $2.289M ▼ 10.996% ▼ $0.36 ▼ $3.007M ▼
Q1-2025 $20.758M ▲ $8.633M ▲ $3.236M ▲ 15.589% ▲ $0.51 ▲ $4.247M ▲
Q4-2024 $20.56M ▼ $8.62M ▲ $3.079M ▲ 14.976% ▲ $0.48 ▲ $4.027M ▲
Q3-2024 $20.938M $8.499M $2.676M 12.781% $0.42 $3.599M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $639.675M ▼ $1.802B ▼ $1.623B ▼ $179.22M ▲
Q2-2025 $682.87M ▲ $1.807B ▼ $1.638B ▼ $168.736M ▲
Q1-2025 $150.992M ▲ $1.836B ▲ $1.668B ▲ $167.278M ▲
Q4-2024 $141.499M ▼ $1.812B ▲ $1.655B ▲ $156.409M ▼
Q3-2024 $671.968M $1.785B $1.617B $167.782M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $4.42M ▲ $6.115M ▲ $-40.86M ▼ $-15.799M ▲ $-50.544M ▼ $7.621M ▲
Q2-2025 $2.289M ▼ $2.067M ▼ $3.02M ▲ $-34.773M ▼ $-29.686M ▼ $1.524M ▼
Q1-2025 $3.236M ▲ $2.566M ▼ $-1.098M ▼ $12.95M ▼ $14.418M ▼ $1.603M ▼
Q4-2024 $3.079M ▲ $5.418M ▲ $16.095M ▲ $36.753M ▲ $58.347M ▲ $4.464M ▲
Q3-2024 $2.676M $3.125M $-4.716M $-47.523M $-49.114M $2.154M

Five-Year Company Overview

Income Statement

Income Statement National Bankshares has grown its revenue gradually over the last five years, but earnings have been under pressure more recently. Profitability appears to have peaked a couple of years ago and has since come down, with both operating profit and net income noticeably lower than that earlier high point. This suggests margin compression, likely from higher funding costs, competitive loan pricing, or rising operating expenses. The declining earnings per share despite higher revenue indicates that growth is not currently translating into stronger bottom‑line results, which is a key trend to watch.

Balance Sheet

Balance Sheet The balance sheet looks conservative for a regional bank. Total assets have expanded over time, reflecting measured growth in lending and banking activities. Cash levels move around but remain reasonable for a community bank of this size. Notably, there is essentially no financial debt, implying the bank relies mainly on deposits and equity rather than borrowed funds, which adds resilience. Equity has trended up from earlier levels after a dip, suggesting the bank continues to retain earnings and maintain a solid capital base, even as profitability has softened.

Cash Flow

Cash Flow Cash generation from operations has been consistently positive, which is a good sign of underlying business health. Operating cash flow and free cash flow were strongest around the time earnings peaked and have since cooled somewhat, mirroring the income statement. Capital spending needs are minimal, which is typical for a bank, so most cash flow flexibility comes from earnings and balance sheet management rather than heavy investment requirements. Overall, the cash profile looks steady rather than spectacular, but it does not signal stress.

Competitive Edge

Competitive Edge National Bankshares operates as a traditional community bank with deep roots in Southwest and Central Virginia. Its strengths lie in long-standing customer relationships, local decision‑making, and a broad but regionally focused branch network. The recent acquisition of Frontier Community Bank and expansion into markets like Roanoke show a strategy of carefully widening its footprint while staying close to home. Its main competitive challenge is going up against much larger banks and digital‑only players that can spend more on technology and marketing, but its local knowledge and personal service help offset some of that scale disadvantage.

Innovation and R&D

Innovation and R&D The bank is not a technology creator, but it has made meaningful upgrades by adopting modern systems. A recent overhaul of its core banking platform, new online and mobile banking experiences, integration with services like Zelle, and improved debit card controls all move it closer to the capabilities of larger banks. The focus is on using proven third‑party technology to improve convenience and efficiency while preserving a community‑bank feel. Future value from these investments depends on how well management can use the new platform to win and retain customers, streamline operations, and support further product enhancements.

Summary

National Bankshares looks like a conservative, relationship‑driven community bank that has slowly grown its asset base and modernized its technology, but is currently facing a tougher earnings environment. Revenue has risen over time, yet profitability has stepped down from earlier highs, pointing to margin and cost pressures that bear monitoring. The balance sheet appears strong, with no reliance on wholesale debt and solid capital, and cash flows are generally stable and positive. Strategically, its edge is local scale and long‑term community presence, while recent tech upgrades and selective acquisitions aim to keep it competitive. The key questions going forward are whether the bank can rebuild earnings momentum from this lower base, fully leverage its new digital platform, and continue navigating competition and interest‑rate swings without sacrificing its conservative profile.