Buy Or Sell Opportunity • Jul 03
Now 20% undervalued Over the last 90 days, the stock has risen 1.3% to €31.80. The fair value is estimated to be €39.86, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 25%. Buy Or Sell Opportunity • Jun 15
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.8% to €29.40. The fair value is estimated to be €37.64, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 25%. Declared Dividend • May 25
Dividend of US$0.75 announced Shareholders will receive a dividend of US$0.75. Ex-date: 26th May 2026 Payment date: 1st June 2026 Dividend yield will be 4.7%, which is about the same as the industry average. Sustainability & Growth The dividend has increased by an average of 2.9% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 10% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 01
National Bankshares, Inc., Annual General Meeting, May 12, 2026 National Bankshares, Inc., Annual General Meeting, May 12, 2026. Location: at the inn at virginia tech, at 901 prices fork road, blacksburg, virginia. United States Announcement • Nov 14
National Bankshares, Inc. Approves Semi-Annual Dividend, Payable on December 1, 2025 The Board of Directors of National Bankshares, Inc. approved payment on December 1, 2025 of a semi-annual dividend of $0.78 per share to all stockholders of record as of November 24, 2025. Announcement • Apr 01
National Bankshares, Inc., Annual General Meeting, May 13, 2025 National Bankshares, Inc., Annual General Meeting, May 13, 2025. Location: the inn at virginia tech, 901 prices fork road, 901 prices fork road, blacksburg, virginia 24061, virginia United States Reported Earnings • Oct 25
Third quarter 2024 earnings released: EPS: US$0.42 (vs US$0.52 in 3Q 2023) Third quarter 2024 results: EPS: US$0.42 (down from US$0.52 in 3Q 2023). Revenue: US$11.7m (up 5.1% from 3Q 2023). Net income: US$2.68m (down 13% from 3Q 2023). Profit margin: 23% (down from 28% in 3Q 2023). Over the last 3 years on average, earnings per share has fallen by 19% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Oct 18
National Bankshares, Inc. and The National Bank of Blacksburg Announce Executive Changes National Bankshares, Inc. announced the promotion of Lara E. Ramsey to President of the Company and its subsidiary bank, The National Bank of Blacksburg, effective January 1, 2025. Ms. Ramsey has been with the Company since 1996, most recently as Executive Vice President and Chief Operating Officer. During her career at National Bankshares she has led the Company’s Investment, Human Resources, Marketing, Training, Corporate Administration, and Strategic Initiative functions. The Company’s current President and Chief Executive Officer, F. Brad Denardo, will continue to serve as Chairman and Chief Executive Officer of the bank and holding company. A native of Lebanon, Virginia, Ms. Ramsey is a graduate of Radford University with a dual bachelor's degree in Psychology and Economics and a master's degree in Industrial and Organizational Psychology. She is also a graduate of the Virginia Bankers Association’s School of Bank Management, the American Bankers Association’s Stonier Graduate School of Banking, The New River Valley Leadership program, and is a certified Senior Professional in Human Resources. Ms. Ramsey serves on the Radford University Alumni Association Board of Directors and the Radford University Athletic Foundation Board of Directors. She is a past Board Member of both the United Way of the New River Valley and the Montgomery County Chamber of Commerce. Ms. Ramsey resides in Radford with her husband, Sean. The couple have an adult son, Benjamin, who is currently pursuing a master’s degree at Virginia Tech. New Risk • Jul 28
New minor risk - Shareholder dilution The company's shareholders have been diluted in the past year. Increase in shares outstanding: 7.9% This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by earnings (98% payout ratio). Profit margins are more than 30% lower than last year (21% net profit margin). Shareholders have been diluted in the past year (7.9% increase in shares outstanding). Reported Earnings • Jul 26
Second quarter 2024 earnings released: US$0.051 loss per share (vs US$0.66 profit in 2Q 2023) Second quarter 2024 results: US$0.051 loss per share (down from US$0.66 profit in 2Q 2023). Revenue: US$9.47m (down 21% from 2Q 2023). Net loss: US$306.0k (down 108% from profit in 2Q 2023). Over the last 3 years on average, earnings per share has fallen by 9% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Announcement • Jun 05
Alan Sweet to Serve on the Boards of Directors of National Bankshares and The National Bank of Blacksburg Alan Sweet, former President and Chief Executive Officer of Frontier, will serve on the boards of directors of National Bankshares and The National Bank of Blacksburg (National Bank). Reported Earnings • Apr 26
First quarter 2024 earnings released: EPS: US$0.37 (vs US$0.77 in 1Q 2023) First quarter 2024 results: EPS: US$0.37 (down from US$0.77 in 1Q 2023). Revenue: US$10.5m (down 21% from 1Q 2023). Net income: US$2.17m (down 52% from 1Q 2023). Profit margin: 21% (down from 35% in 1Q 2023). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has fallen by 3% per year. Reported Earnings • Mar 21
Full year 2023 earnings released: EPS: US$2.66 (vs US$4.33 in FY 2022) Full year 2023 results: EPS: US$2.66 (down from US$4.33 in FY 2022). Revenue: US$47.9m (down 18% from FY 2022). Net income: US$15.7m (down 40% from FY 2022). Profit margin: 33% (down from 44% in FY 2022). The decrease in margin was driven by lower revenue. Net interest margin (NIM): 2.38% (down from 2.88% in FY 2022). Cost-to-income ratio: 61.0% (up from 47.7% in FY 2022). Non-performing loans: 0.31% (down from 0.33% in FY 2022). Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Announcement • Feb 29
National Bankshares, Inc., Annual General Meeting, May 14, 2024 National Bankshares, Inc., Annual General Meeting, May 14, 2024. Location: The Inn at Virginia Tech and Skelton Conference Center 901 Prices Fork Road , Blacksburg Virginia United States Valuation Update With 7 Day Price Move • Feb 07
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to €25.20, the stock trades at a forward P/E ratio of 21x. Average forward P/E is 7x in the Banks industry in Europe. Total returns to shareholders of 15% over the past three years. Reported Earnings • Jan 27
Full year 2023 earnings released: EPS: US$2.66 (vs US$4.33 in FY 2022) Full year 2023 results: EPS: US$2.66 (down from US$4.33 in FY 2022). Revenue: US$47.9m (down 18% from FY 2022). Net income: US$15.7m (down 40% from FY 2022). Profit margin: 33% (down from 44% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Jan 25
National Bankshares, Inc. Appoints Lara E. Ramsey as Director National Bankshares, Inc.’s Board of Directors appointed Lara E. Ramsey as a new director of the Company, effective immediately. Ms. Ramsey has served as Executive Vice President and Chief Operating Officer of the Company since May 2023 and has served in various senior officer positions with the Company and the Bank since 1996. Valuation Update With 7 Day Price Move • Dec 19
Investor sentiment improves as stock rises 22% After last week's 22% share price gain to €32.20, the stock trades at a forward P/E ratio of 16x. Average forward P/E is 7x in the Banks industry in Europe. Total loss to shareholders of 6.6% over the past year. Reported Earnings • Oct 27
Third quarter 2023 earnings released: EPS: US$0.52 (vs US$1.03 in 3Q 2022) Third quarter 2023 results: EPS: US$0.52 (down from US$1.03 in 3Q 2022). Revenue: US$11.2m (down 22% from 3Q 2022). Net income: US$3.07m (down 50% from 3Q 2022). Profit margin: 28% (down from 43% in 3Q 2022). Reported Earnings • Jul 26
Second quarter 2023 earnings released: EPS: US$0.66 (vs US$0.93 in 2Q 2022) Second quarter 2023 results: EPS: US$0.66 (down from US$0.93 in 2Q 2022). Revenue: US$12.0m (down 8.3% from 2Q 2022). Net income: US$3.90m (down 30% from 2Q 2022). Profit margin: 33% (down from 43% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue is expected to decline by 13% p.a. on average during the next 2 years, while revenues in the Banks industry in Europe are expected to grow by 4.4%. Board Change • Jul 26
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 5 experienced directors. 6 highly experienced directors. Chairman, President & CEO F. Denardo was the last director to join the board, commencing their role in 2017. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. 
