National Bankshares, Inc. (NASDAQ: NKSH) is a Virginia-based financial holding company that conducts substantially all of its operations through its wholly-owned community bank subsidiary, The National Bank of Blacksburg (NBB). The company earns revenue primarily through net interest income, the spread between interest earned on loans and securities and interest paid on deposits and borrowings, supplemented by noninterest income from service charges, trust services, credit and debit card fees, mortgage loan sales, and bank-owned life insurance. Organized in 1986 under Virginia law and registered under the Bank Holding Company Act of 1956, NKSH operates as a community bank serving regional markets. Average total deposits were $1.62 billion at an average rate paid of 1.81% for the year ended December 31, 2025. The company expanded its footprint through the acquisition of FCB in 2024, which added employees, branch infrastructure, and a core deposit intangible asset being amortized over 10 years. NKSH pays common stock dividends, with dividend capacity dependent on distributions from NBB to the holding company.

Revenue model

Net interest income from loans and securities portfolios, plus noninterest income from service charges on deposit accounts, trust income, credit and debit card fees, gain on sale of mortgage loans held for sale, and bank-owned life insurance income.

Products and services

Community banking services including demand deposits, savings deposits, time deposits, and loans. Supplementary services include trust and wealth management, mortgage origination and sale, credit and debit card processing, and bank-owned life insurance.

Customers and end markets

Retail and commercial customers in regional Virginia markets. Loan collateral includes real property, indicating exposure to local real estate and regional economic conditions.

Value-chain role

Community bank and financial holding company. Accepts deposits, originates and holds loans, invests in securities, and distributes financial services directly to retail and commercial end customers.

Geographic exposure

Virginia-based operations. NBB operates in states subject to Virginia franchise taxes. A Roanoke branch was opened during the year ended December 31, 2025. Geographic concentration in southwest Virginia regional markets.

Source: SEC 10-K, filed 2026-03-27

Industry: National Commercial Banks Peers: Ames National Corp Bank7 Corp Chemung Financial Corp Investar Holding Corp MISSION BANCORP PNC Financial Services Group Inc