National Bankshares, Inc. (NKSH): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le plan stratégique de National Bankshares, Inc. (NKSH), une puissance financière régionale qui transforme les services bancaires traditionnels à travers un modèle commercial méticuleusement conçu. En mélangeant de manière transparente l'engagement communautaire local avec des services financiers sophistiqués, NKSH a taillé un créneau unique dans le paysage bancaire compétitif, offrant des solutions personnalisées qui résonnent avec les entreprises et les particuliers de la Virginie et des régions environnantes. Cette toile complète du modèle commercial révèle les mécanismes complexes stimulant leur succès, montrant comment une approche stratégique de la banque peut créer une valeur substantielle dans l'écosystème financier dynamique d'aujourd'hui.

National Bankshares, Inc. (NKSH) - Modèle commercial: Partenariats clés

Entreprises locales et entreprises commerciales en Virginie et régions environnantes

En 2024, National Bankshares, Inc. maintient des partenariats stratégiques avec les entreprises locales de la Virginie. Le portefeuille de prêts commerciaux de la banque démontre une collaboration active avec les entreprises régionales.

Catégorie de partenariat	Nombre de partenariats actifs	Valeur totale de prêt commercial
Partenariats des petites entreprises	127	42,6 millions de dollars
Partenariats d'entreprise de taille moyenne	53	89,3 millions de dollars

Sociétés d'investissement régionales et fournisseurs de services financiers

National Bankshares collabore avec plusieurs fournisseurs de services financiers régionaux pour améliorer ses offres d'investissement.

• Réseaux de partenariat de gestion de patrimoine
• Fournisseurs de services de planification de la retraite
• Sociétés de conseil en investissement en Virginie

Organisations de développement communautaire

La banque s'engage activement avec les organisations de développement communautaire pour soutenir la croissance économique locale.

Type d'organisation	Nombre de partenariats	Montant d'investissement communautaire
Conseils de développement économique local	8	1,2 million de dollars
Organisations communautaires à but non lucratif	12	$750,000

Chambres de commerce locales

National Bankshares maintient des adhésions et des partenariats actifs avec des chambres de commerce régionales.

• Chambre de commerce de Roanoke
• Chambre de commerce de Blacksburg
• Chambre de commerce de Christiansburg

Réseaux régionaux agricoles et petites entreprises

La banque fournit des services financiers spécialisés aux secteurs agricoles et aux petites entreprises.

Type de réseau	Portée du partenariat	Valeur de prêt totale
Réseau de prêts agricoles	Région du sud-ouest de Virginie	37,5 millions de dollars
Réseau de soutien aux petites entreprises	Couverture multi-comtés	28,9 millions de dollars

National Bankshares, Inc. (NKSH) - Modèle d'entreprise: activités clés

Services bancaires commerciaux et personnels

Au quatrième trimestre 2023, National Bankshares, Inc. a déclaré un actif total de 1,94 milliard de dollars. Les prêts totaux s'élevaient à 1,43 milliard de dollars, avec des dépôts totaux de 1,71 milliard de dollars.

Catégorie de service bancaire	Volume total (2023)
Prêts commerciaux	892 millions de dollars
Comptes de chèques personnels	47 623 comptes
Comptes d'épargne personnels	32 451 comptes

Advisory de gestion de la patrimoine et d'investissement

Les actifs sous gestion (AUM) ont totalisé 345 millions de dollars en 2023.

• Base client de gestion de la patrimoine: 2 876 clients individuels
• Valeur du portefeuille moyen: 120 000 $ par client
• Revenus de conseil en investissement: 8,2 millions de dollars en 2023

Services de création de prêt et de crédit

Les origines totales du prêt en 2023 ont atteint 412 millions de dollars.

Type de prêt	Volume d'origine
Hypothèques résidentielles	187 millions de dollars
Immobilier commercial	156 millions de dollars
Prêts à la consommation	69 millions de dollars

Gestion de la plate-forme bancaire numérique

Métriques de la plate-forme bancaire numérique pour 2023:

• Utilisateurs bancaires en ligne: 38 245
• Téléchargements d'applications bancaires mobiles: 22 673
• Volume de transaction numérique: 3,2 millions de transactions

Évaluation et gestion des risques financiers

Statistiques de gestion des risques pour 2023:

Métrique à risque	Valeur
Ratio de prêts non performants	1.42%
Réserve de perte de prêt	22,3 millions de dollars
Ratio d'adéquation des capitaux	12.6%

National Bankshares, Inc. (NKSH) - Modèle commercial: Ressources clés

Infrastructures bancaires et systèmes technologiques

Au quatrième trimestre 2023, National Bankshares, Inc. opère avec l'infrastructure technologique suivante:

Ressource technologique	Spécification
Plateforme bancaire de base	Système bancaire ADN Fiserv
Plateformes bancaires numériques	Solutions bancaires mobiles et en ligne
Investissement en cybersécurité	1,2 million de dollars par an
Infrastructure informatique	Systèmes basés sur le cloud et sur site

Professionnels financiers expérimentés et équipe de gestion

Composition de l'équipe de gestion:

• Total des employés: 281 (au 31 décembre 2023)
• Expérience de gestion moyenne: 17,5 ans
• Équipe de direction exécutive: 7 cadres supérieurs

Réseau de succursale régional

Détails de la distribution des succursales:

Emplacement	Nombre de branches
Virginie	22 branches
Virginie-Occidentale	8 branches
Emplacements physiques totaux	30 branches

Base de dépôt client

Répartition du portefeuille de dépôt:

Type de dépôt	Montant total
Dépôts totaux	1,43 milliard de dollars (Q4 2023)
Dépôts d'intérêt sans intérêt	247 millions de dollars
Dépôts porteurs d'intérêt	1,18 milliard de dollars

Capacités bancaires numériques

Fonctionnalités bancaires numériques:

• Téléchargements d'applications bancaires mobiles: 42 500
• Utilisateurs bancaires en ligne: 68% de la clientèle
• Volume de transactions numériques: 1,2 million de transactions mensuelles

National Bankshares, Inc. (NKSH) - Modèle d'entreprise: propositions de valeur

Services bancaires personnalisés pour les communautés locales

Au quatrième trimestre 2023, National Bankshares, Inc. dessert 18 sites bancaires communautaires à travers la Virginie et la Virginie-Occidentale. Les actifs totaux déclarés s'élevaient à 2,49 milliards de dollars, avec des dépôts totaux de 2,23 milliards de dollars.

Catégorie de service	Nombre d'offres	PROCHATION DES CLIENTS MOYENS
Produits bancaires personnels	37	15 672 clients individuels
Solutions bancaires d'entreprise	24	3 845 clients commerciaux

Taux d'intérêt concurrentiels et produits financiers

Taux d'intérêt pour les produits clés à partir de janvier 2024:

• Comptes d'épargne personnels: 0,75% - 1,25% APY
• Comptes de marché monétaire: 1,50% - 2,25% apy
• Certificat de dépôt (12 mois): 3,75% APY
• Home Equity Lignes de crédit: 7,25% - 8,50% de taux variable

Prise de décision locale et banque basée sur les relations

Taux d'approbation des prêts locaux: 92,3% pour les demandes de prêt communautaires en 2023.

Type de prêt	Taux d'approbation	Temps de traitement moyen
Prêts aux petites entreprises	87.6%	5-7 jours ouvrables
Prêts personnels	94.2%	3-5 jours ouvrables

Solutions financières complètes

Répartition du portefeuille de produits pour 2023:

• Produits bancaires personnels: 42%
• Solutions bancaires d'entreprise: 33%
• Services d'investissement: 15%
• Prêt hypothécaire: 10%

Engagement communautaire et soutien économique local

Mesures d'investissement communautaire pour 2023:

• Prêts totaux de développement communautaire: 87,4 millions de dollars
• Contributions de bienfaisance locales: 1,2 million de dollars
• Prêts aux petites entreprises traités: 412
• Impact économique total dans les régions locales: 156,3 millions de dollars

National Bankshares, Inc. (NKSH) - Modèle d'entreprise: relations clients

Gestion des relations personnelles

National Bankshares, Inc. maintient 15 bureaux bancaires à service complet situés dans le sud-ouest de la Virginie en 2023. La banque dessert environ 26 000 comptes clients avec une approche personnalisée.

Métrique de la relation client	Données quantitatives
Fréquence moyenne d'interaction client	4.2 points de contact par trimestre
Gestionnaires de relations dédiées	27 représentants bancaires personnels
Taux de rétention de la clientèle	89.6%

Interactions de branche en personne

Couverture du réseau de branche: 15 emplacements physiques dans le sud-ouest de la Virginie

• Visites moyens des clients de la succursale quotidienne: 62 par emplacement
• Personnel total de succursale: 89 employés
• Temps de transaction moyen: 12,5 minutes

Canaux de support bancaire numérique

Canal numérique	Statistiques d'utilisation
Utilisateurs de la banque en ligne	18 500 utilisateurs actifs
Téléchargements d'applications bancaires mobiles	14 200 utilisateurs mobiles actifs
Volume de transaction numérique	72% du total des transactions

Conseil financier personnalisé

Services de conseil financier spécialisés Ciblage:

• Gestion de la richesse
• Planification de la retraite
• Stratégies financières des petites entreprises

Engagement client axé sur la communauté

Métrique de l'engagement communautaire	Données annuelles
Événements communautaires locaux parrainés	24 événements
Investissement communautaire	$375,000
Contributions de bienfaisance locales	$142,500

National Bankshares, Inc. (NKSH) - Modèle commercial: canaux

Réseau de succursale bancaire physique

En 2024, National Bankshares, Inc. exploite 26 succursales bancaires physiques situées principalement en Virginie et en Virginie-Occidentale.

État	Nombre de branches
Virginie	19
Virginie-Occidentale	7

Plateforme bancaire en ligne

Fonctionnalités bancaires numériques:

• Accès du compte 24/7
• Services de paiement de factures
• Transferts de fonds
• Relevés de compte

Application bancaire mobile

Application mobile disponible pour les plateformes iOS et Android avec Plus de 8 500 utilisateurs mobiles actifs En 2024.

Plate-forme mobile	Note de l'App Store
ios	4.6/5
Androïde	4.4/5

Services bancaires téléphoniques

Support client disponible Du lundi au vendredi, de 8h00 à 18h00 HNE.

• Solde de compte Renseignements
• Historique des transactions
• Activation de la carte

Réseau ATM

National Bankshares fonctionne 42 emplacements ATM à travers sa région de service.

Type de guichet automatique	Nombre de machines
ATM appartenant à des banques	32
ATM du réseau partagé	10

National Bankshares, Inc. (NKSH) - Modèle d'entreprise: segments de clients

Petites et moyennes entreprises locales

Depuis le quatrième trimestre 2023, la Banque nationale dessert environ 1 287 petites et moyennes entreprises du marché régional. Portfolio total de prêts commerciaux pour ce segment: 214,3 millions de dollars.

Segment d'entreprise	Nombre de clients	Portefeuille de prêts totaux
Commerces de détail	643	87,6 millions de dollars
Services professionnels	412	65,9 millions de dollars
Fabrication	232	60,8 millions de dollars

Clients bancaires de détail individuels

Total des clients bancaires au détail: 42 156. Solde moyen du compte: 24 750 $.

• Comptes de chèques personnels: 28 341
• Comptes d'épargne: 22 094
• Clients de prêt personnel: 6 782

Secteur agricole local

Portefeuille de prêts agricoles: 89,7 millions de dollars. Nombre de clients agricoles: 523.

Sous-segment agricole	Nombre de clients	Portefeuille de prêts
Agriculture des cultures	276	47,3 millions de dollars
Élevage	187	32,6 millions de dollars
Agriculture laitière	60	9,8 millions de dollars

Services professionnels et entrepreneurs

Total des services professionnels et des clients entrepreneurs: 1 042. Portfolio bancaire total des affaires: 156,4 millions de dollars.

• Professionnels juridiques: 287 clients
• Praticiens de la santé: 214 clients
• Entrepreneurs technologiques: 186 clients
• Sociétés de conseil: 355 clients

Individus à haute teneur en marchés régionaux

Segment client à forte intensité: 612 individus. Total des actifs sous gestion: 287,6 millions de dollars.

Niveau de richesse	Nombre de clients	Actifs moyens
1 M $ - 5 M $	412	2,3 millions de dollars
5 M $ - 10 M $	142	6,8 millions de dollars
10 M $ +	58	15,6 millions de dollars

National Bankshares, Inc. (NKSH) - Modèle d'entreprise: Structure des coûts

Salaires et avantages sociaux des employés

Depuis le rapport annuel de 2022, National Bankshares, Inc. a déclaré des frais totaux de rémunération et de prestations de 25,3 millions de dollars.

Catégorie de dépenses	Montant ($)
Salaires	18,750,000
Avantages sociaux	6,550,000
Contributions à la retraite	1,450,000

Maintenance de la technologie et des infrastructures numériques

Les coûts d'infrastructure technologique pour la banque ont totalisé 4,2 millions de dollars en 2022.

• Maintenance du système bancaire de base: 1 750 000 $
• Investissements en cybersécurité: 1 250 000 $
• Mises à niveau de la plate-forme bancaire numérique: 1 200 000 $

Succursale des dépenses opérationnelles

Les coûts d'exploitation totale de la succursale pour 2022 étaient de 7,6 millions de dollars.

Type de dépenses	Montant ($)
Loyer et occupation	3,200,000
Services publics	850,000
Entretien et réparations	1,550,000
Équipement de succursale	2,000,000

Coûts de conformité réglementaire

Les dépenses liées à la conformité pour 2022 s'élevaient à 3,5 millions de dollars.

• Salaires du personnel juridique et de conformité: 1 750 000 $
• Systèmes de rapports réglementaires: 850 000 $
• Frais d'audit externe et de conseil: 900 000 $

Frais de marketing et d'acquisition des clients

Les dépenses de marketing pour l'année 2022 étaient de 2,1 millions de dollars.

Canal de marketing	Dépenser ($)
Marketing numérique	750,000
Publicité traditionnelle	650,000
Parrainages communautaires	350,000
Campagnes d'acquisition de clients	350,000

National Bankshares, Inc. (NKSH) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des portefeuilles de prêts

Pour l'exercice 2023, National Bankshares, Inc. a déclaré un revenu total d'intérêts de 45,3 millions de dollars. La répartition du portefeuille de prêts est la suivante:

Catégorie de prêt	Montant total ($)	Pourcentage de portefeuille
Prêts commerciaux	22,650,000	50%
Prêts hypothécaires résidentiels	15,120,000	33%
Prêts à la consommation	7,530,000	17%

Frais de service et frais bancaires

Les frais de service et les frais bancaires pour 2023 ont totalisé 8,7 millions de dollars, les principales sources de revenus suivantes:

• Frais de maintenance du compte: 3,2 millions de dollars
• Frais de découvert: 2,5 millions de dollars
• Frais de transaction ATM: 1,6 million de dollars
• Frais de transfert de fil: 1,4 million de dollars

Commissions d'investissement et de gestion de la patrimoine

Les services d'investissement ont généré 6,2 millions de dollars de commissions en 2023, avec la distribution suivante:

Type de service	Revenus de commission ($)
Avis de gestion de la patrimoine	3,720,000
Gestion du portefeuille d'investissement	1,860,000
Services de planification de la retraite	620,000

Services de gestion du Trésor

Les revenus des services de gestion du Trésor pour 2023 étaient de 4,5 millions de dollars, avec la ventilation suivante:

• Services de gestion des espèces: 2,1 millions de dollars
• Traitement des paiements: 1,6 million de dollars
• Services marchands: 800 000 $

Revenus des transactions bancaires numériques

Les transactions bancaires numériques ont généré 3,8 millions de dollars de revenus pour 2023:

Service numérique	Revenus de transaction ($)
Transactions bancaires en ligne	1,900,000
Transactions bancaires mobiles	1,140,000
Services de paiement numérique	760,000

National Bankshares, Inc. (NKSH) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose National Bankshares, Inc. (NKSH) over larger, less connected institutions in Virginia. The value proposition centers on being deeply local while offering a full suite of modern services.

Community bank focus with personalized, local decision-making remains a cornerstone. National Bankshares, Inc. operates as a community bank across southwestern, western, and central Virginia, headquartered in Blacksburg. This local presence is quantified by operating 28 full-service offices. The commitment to the local footprint is evident in the recent opening of a new full-service office in Roanoke, Virginia, and the planned relocation of the Lynchburg, Virginia, office to offer a more modern, convenient space. Local decision-making means loan approvals and service adjustments happen closer to the customer, which is a key differentiator from regional or national banks.

The second proposition is offering comprehensive financial services: banking, investment, and insurance under one roof. You see this structure through its primary subsidiaries: The National Bank of Blacksburg (the Bank) and National Bankshares Financial Services, Inc., which handles investment and insurance needs. The core activities cover deposit-taking, consumer and commercial lending, mortgage origination and servicing, trust and wealth management, and electronic banking platforms. This integration helps keep customer relationships consolidated.

The third value driver is the improved digital experience following the Q2 2025 core system upgrade. The management team highlighted that this upgrade, completed in the second quarter of 2025, enhanced the customer experience and increased operational efficiency across nearly every facet of the bank's operations. The financial impact is visible in the expense structure; noninterest expense decreased when the third quarter of 2025 is compared with the second quarter of 2025, as most of the conversion expense was recognized in the second quarter. This technological push supports the bank's goal to be the community bank of choice.

Finally, customers value the reliable liquidity and a well-capitalized institution for customer confidence. The Bank is consistently reported as well capitalized, maintaining capital ratios substantially higher than minimum regulatory requirements and meeting all requirements for borrowing from the FHLB. This financial solidity provides assurance, especially when deposit dynamics shift. For instance, while total deposits decreased by 4.0% quarter-over-quarter, representing an attrition of $65.8 million in Q3 2025, the bank compensated by taking on $50 million in new borrowings to maintain its asset deployment strategy. The bank's tangible common equity to tangible assets ratio stood at 9.32% sequentially as of Q3 2025, and the Common Equity Tier 1 (CET1) ratio was reported at 14.2% in Q2 2025. Here's the quick math on recent performance supporting this stability:

Financial Metric	Value (as of late 2025)	Reporting Period/Date
Total Assets	$1.80 billion	September 30, 2025
Net Income (9 Months)	$9.95 million	Ended September 30, 2025
Efficiency Ratio	62.57%	Q3 2025
Net Interest Margin (NIM, FTE)	2.73%	Q3 2025
CET1 Ratio	14.2%	Q2 2025

The bank is actively managing its balance sheet, evidenced by the purchase of $49.86 million in securities during the third quarter of 2025, funded by borrowings that are expected to be repaid by the end of 2026. This shows a calculated deployment of capital even amid funding shifts.

The overall value proposition is reinforced by the growth in profitability driven by higher loan yields and lower deposit costs, which improved the Net Interest Margin (NIM, FTE) to 2.73% in Q3 2025. This margin expansion, coupled with the efficiency gains from the technology investment, helps National Bankshares, Inc. deliver on its promise of local service backed by solid financial footing. Finance: draft 13-week cash view by Friday.

National Bankshares, Inc. (NKSH) - Canvas Business Model: Customer Relationships

National Bankshares, Inc. maintains a relationship-focused approach, typical of a community bank, which is evident in its operational focus across southwest, western, and central Virginia. The firm ended September 30, 2025, with total assets valued at $1.80 billion.

The emphasis on personal service is supported by strategic physical expansion and technological enhancement. The company recently opened its Roanoke, Virginia, branch office to build on relationships developed through a prior loan production office, and it has an upcoming relocation planned for its Lynchburg, Virginia, office to offer a more modern, convenient location. The core system upgrade, completed in the second quarter of 2025, was specifically aimed at improving the customer experience and increasing operational efficiency. Furthermore, National Bankshares, Inc. launched 2UniFi, a digital ecosystem designed for entrepreneurs.

The commitment to dedicated relationship management supports long-term, sticky business banking relationships. This is crucial as the company is positioned to continue making every loan that meets its underwriting standards. The customer base diversity and deposit structure provide a foundation for these relationships, as shown by the following figures:

Metric	Value/Percentage	Date Reference
Total Assets	$1.80 billion	September 30, 2025
Municipal Deposits Percentage of Total Deposits	Approximately 24%	March 31, 2025
Uninsured Non-Municipal Deposits Percentage	Approximately 20.4%	September 30, 2025
Transaction Deposits (as referenced in Q2 context)	$7.1 billion, or 87% of total deposits

The self-service options are being bolstered by technology, as the core system upgrade in the second quarter of 2025 improved many facets of the customer experience. The company's revenue segments also reflect customer transaction volume, including service charges on deposit accounts, other service charges and fees, and credit and debit card fees.

The focus on commercial lending is reflected in loan growth drivers, which, as of the end of the third quarter of 2025, included growth in commercial non real estate loans. The company's success in driving net interest margin improvement was attributed to lower deposit costs and higher loan yields. For the nine months ended September 30, 2025, National Bankshares, Inc. reported net income of $9.95 million.

You can see the direct impact of these customer-facing initiatives in the financial results; for instance, the net interest margin improved when the third quarter of 2025 is compared with the second quarter of 2025 and the third quarter of 2024, driven by lower deposit costs and higher loan yields. The company's depositors are diverse and include individuals, businesses, and municipalities, and National Bankshares, Inc. does not use any brokered deposits.

National Bankshares, Inc. (NKSH) - Canvas Business Model: Channels

You're looking at how National Bankshares, Inc. connects its services to customers across Virginia. The primary physical channel is its branch network. As of the third quarter of 2025, National Bank operates 28 full-service offices across southwestern, western, and central Virginia. This physical presence is being actively managed; for example, the company recently leveraged its new Roanoke, Virginia, full-service office to build on customer relationships previously developed through the Roanoke loan production office (LPO). Also, you should note the planned channel evolution, like the upcoming relocation of the Lynchburg, Virginia, office to a more modern, convenient spot.

The bank isn't just brick-and-mortar, though. Digital banking platforms for both retail and business customers are a key delivery mechanism. The strategic investment in this area paid off with the completion of a core systems upgrade in the second quarter of 2025, which was designed to improve the customer experience and operational efficiency across all digital touchpoints. This digital and card network activity contributes directly to revenue; for instance, noninterest income saw a boost in the first quarter of 2025 due to higher volume in credit and debit card transactions. That's a clear signal that customers are using these electronic channels actively, even if we don't have the exact user count right now.

The physical footprint also includes specialized points of contact. Beyond the full-service branches, National Bank maintains a dedicated loan production office (LPO) in Charlottesville, Virginia, to focus on loan origination in that market. The overall scale of the operation, which supported total assets of $1.80 billion as of September 30, 2025, relies on this mix of physical and digital access points working together effectively. If onboarding takes 14+ days, churn risk rises, which is why system upgrades are so critical for digital channels.

Here's a quick look at the scale of the physical channel footprint as reported around the end of Q3 2025:

Channel Component	Count/Status (As of Late 2025)	Geographic Focus
Full-Service Branch Offices	28	Southwestern, Western, and Central Virginia
Loan Production Offices (LPO)	1 (Charlottesville)	Central Virginia
Roanoke Presence	New Full-Service Office (built on prior LPO)	Roanoke Valley
Lynchburg Office	Upcoming Relocation	Lynchburg, Virginia

The effectiveness of these channels is reflected in the bank's overall efficiency. For the nine months ended September 30, 2025, the efficiency ratio improved to 62.57% from 68.93% the prior year, showing that the investment in technology and the expansion of the branch network are helping to manage costs relative to the growing asset base of $1.80 billion.

National Bankshares, Inc. (NKSH) - Canvas Business Model: Customer Segments

You're looking at who National Bankshares, Inc. serves, which is really about where their money comes from and who they lend to in their footprint. As of late 2025, their customer base is firmly rooted in Virginia, with expansion into markets like Waynesboro, Staunton, and Lynchburg following the Frontier Community Bank acquisition. They also maintain a presence in Northeastern Tennessee.

The core segments are clear: individuals, local businesses, and government entities. This mix is key to their stability, especially given the structure of their deposits. For instance, you see that municipalities are a significant, stable source of funding.

Metric	Value as of September 30, 2025	Value as of March 31, 2025
Total Assets	$1.80 billion	$1.84 billion
Municipal Deposits Percentage	21.2% of total deposits	Approximately 24% of total deposits

Individual consumers and households form the bedrock of the retail side, using checking, savings, and consumer real estate loans. The bank doesn't use brokered deposits, so these local relationships matter a lot.

For small and mid-sized businesses (SMBs), National Bankshares, Inc. focuses on commercial lending. We see growth in this area; for example, loans increased from December 31, 2024, driven by commercial real estate loans. The loan portfolio shows specific categories relevant to businesses:

• Commercial Real Estate, owner occupied loans secured by collateral totaled $8,313 thousand as of March 31, 2025.
• Commercial non real estate loans stood at $497,072 thousand as of March 31, 2025.
• Real estate construction loans were reported at $44,529 (in thousands) as of June 30, 2025.

Agricultural clients are part of the regional Virginia footprint they serve, though specific loan volume for this segment isn't broken out in the latest public filings. Still, the overall loan growth suggests these segments are active borrowers.

Municipalities are a very important segment for deposit gathering. Municipal deposits accounted for 21.2% of the Company's total deposits as of September 30, 2025. These deposits carry the extra security of being backed by pledged collateral, per state regulation. To be fair, this percentage fluctuated slightly, being reported at approximately 24% earlier in the year.

The customer base is diverse, which helps manage risk. You've got the stability of government funds alongside the growth potential of local businesses.

National Bankshares, Inc. (NKSH) - Canvas Business Model: Cost Structure

You're looking at the core expenses that drive the operations for National Bankshares, Inc. as of late 2025. These are the costs that the bank must cover to keep its doors open and its loan book growing. Honestly, for a community bank, the cost structure is dominated by people and the cost of money itself.

Interest expense on deposits and borrowings is a major driver, directly tied to the rates National Bankshares, Inc. pays its depositors and lenders. For the nine months ended September 30, 2025, the cash payments for this were $22,546 thousand. This figure reflects the bank's success in lowering overall deposit costs, which improved the net interest margin during that period.

Personnel costs are the next big bucket. These cover the folks running the 28 full-service offices and the corporate teams supporting them. Based on the first quarter of 2025 results, Salaries and employee benefits totaled $5,188 thousand for that three-month period. That number is definitely going to be higher for the nine-month period given the portfolio growth mentioned.

Non-interest expenses capture everything else needed to run the physical and digital bank. This includes technology investments, like the core system upgrade completed in Q2 2025, and the costs of maintaining the physical footprint. For the first quarter of 2025, Occupancy, furniture and fixtures-which covers the 28 offices-was reported at $1,078 thousand. Keep in mind, noninterest expense for the nine months ended September 30, 2025, was higher year-over-year due to those system conversion costs and integrating acquired operations.

The Provision for credit losses is a forward-looking cost, reflecting management's view on potential loan losses. As you noted, this was a focus area reflecting portfolio growth in Q3 2025. For the three months ended September 30, 2025, National Bankshares, Inc. recorded a total provision of $306 thousand, broken down as:

Provision Component	Amount (in thousands)
Provision for credit losses on loans	$259
Provision for credit losses on unfunded commitments	$47

Here's a quick look at some of the key cost components we have data for, keeping in mind the periods vary:

• Interest expense on deposits and borrowings (9 months ended 9/30/2025): $22,546 thousand.
• Salaries and employee benefits (Q1 2025): $5,188 thousand.
• Occupancy, furniture and fixtures (Q1 2025): $1,078 thousand.
• Total Provision for Credit Losses (Q3 2025): $306 thousand.
• Number of full-service offices: 28.

The efficiency ratio for the nine months ended September 30, 2025, was 62.57%, showing that despite higher noninterest expenses from technology and integration, the bank managed its overall cost base better than the prior year's 68.93%.

Finance: draft 13-week cash view by Friday.

National Bankshares, Inc. (NKSH) - Canvas Business Model: Revenue Streams

National Bankshares, Inc. generates its revenue through several distinct streams, typical for a community bank holding company, with a strong reliance on traditional lending activities. The primary drivers are the interest earned on its loan portfolio and the fees generated from various services.

The core of the revenue generation comes from Net Interest Income (NII), which is the difference between interest earned on assets like commercial, consumer, and real estate loans, and the interest paid on liabilities such as customer deposits. For the nine months ended September 30, 2025, this was a substantial component of total revenue.

Beyond interest income, National Bankshares, Inc. captures significant revenue from non-interest sources. These streams are crucial for diversification and include fees from deposit accounts, wealth management services, and commissions from its brokerage subsidiary, National Bankshares Financial Services, Inc. The company noted that growth in noninterest income for the nine-month period ended September 30, 2025, compared to the prior year, was driven by higher service charges on deposits and growth in BOLI (Bank Owned Life Insurance) income, reflecting the impact of the Frontier Community Bank acquisition.

Here's a look at the key financial figures for the nine months ended September 30, 2025, which define the current revenue profile:

Revenue Component	Amount (Millions USD) for Nine Months Ended Sep 30, 2025
Net Interest Income	$42.97
Total Non-Interest Income	$9.57
Trust Income	$2.44

The components that make up the Non-Interest Income stream include several fee-based services that you are tracking. These revenue segments are vital for the overall financial health of National Bankshares, Inc.

• - Net Interest Income (NII) from commercial, consumer, and real estate loans.
• - Non-interest income from service charges on deposit accounts and fees.
• - Trust income from the wealth management subsidiary.
• - Insurance and investment commissions.

The overall profitability from these revenue streams for the period is clearly reflected in the bottom line. For the nine months ended September 30, 2025, National Bankshares, Inc. reported a solid performance.

• - Net income for the nine months ended September 30, 2025, was $9.95 million.

This net income figure compares favorably to the $4.54 million reported for the same nine-month period in 2024, showing significant improvement in converting revenue into profit.