National Bankshares, Inc. (NKSH): Modelo de negócios Canvas [Jan-2025 Atualizado]

Mergulhe no plano estratégico da National Bankshares, Inc. (NKSH), uma potência financeira regional que transforma o banco tradicional por meio de um modelo de negócios meticulosamente criado. Ao misturar perfeitamente o envolvimento da comunidade local com os sofisticados serviços financeiros, a NKSH criou um nicho único no cenário bancário competitivo, oferecendo soluções personalizadas que ressoam com empresas e indivíduos em toda a Virgínia e regiões vizinhas. Essa tela abrangente do modelo de negócios revela os intrincados mecanismos que impulsionam seu sucesso, mostrando como uma abordagem estratégica do setor bancário pode criar um valor substancial no ecossistema financeiro dinâmico de hoje.

National Bankshares, Inc. (NKSH) - Modelo de negócios: Parcerias -chave

Empresas locais e empresas comerciais na Virgínia e regiões vizinhas

A partir de 2024, a National Bankshares, Inc. mantém parcerias estratégicas com empresas locais em toda a Virgínia. O portfólio de empréstimos comerciais do banco demonstra colaboração ativa com empresas regionais.

Categoria de parceria	Número de parcerias ativas	Valor total de empréstimo comercial
Parcerias para pequenas empresas	127	US $ 42,6 milhões
Parcerias corporativas de tamanho médio	53	US $ 89,3 milhões

Empresas de investimento regional e provedores de serviços financeiros

O National Bankshares colabora com vários provedores regionais de serviços financeiros para aprimorar suas ofertas de investimento.

• Redes de parceria de gerenciamento de patrimônio
• Provedores de serviços de planejamento de aposentadoria
• Empresas de consultoria de investimentos na Virgínia

Organizações de desenvolvimento comunitário

O banco se envolve ativamente com organizações de desenvolvimento comunitário para apoiar o crescimento econômico local.

Tipo de organização	Número de parcerias	Valor do investimento comunitário
Conselhos de Desenvolvimento Econômico Locais	8	US $ 1,2 milhão
Organizações comunitárias sem fins lucrativos	12	$750,000

Câmaras de comércio locais

O National Bankshares mantém associações e parcerias ativas com câmaras de comércio regionais.

• Câmara de Comércio de Roanoke
• Câmara de Comércio de Blacksburg
• Câmara de Comércio de Christiansburg

Redes regionais de agricultura e pequenas empresas

O banco fornece serviços financeiros especializados a setores agrícola e para pequenas empresas.

Tipo de rede	Escopo da parceria	Valor total de empréstimos
Rede de empréstimos Agrícolas	Região do sudoeste da Virgínia	US $ 37,5 milhões
Rede de suporte para pequenas empresas	Cobertura de vários condados	US $ 28,9 milhões

National Bankshares, Inc. (NKSH) - Modelo de negócios: Atividades -chave

Serviços bancários comerciais e pessoais

A partir do quarto trimestre de 2023, a National Bankshares, Inc. registrou ativos totais de US $ 1,94 bilhão. Os empréstimos totais eram de US $ 1,43 bilhão, com depósitos totais de US $ 1,71 bilhão.

Categoria de serviço bancário	Volume total (2023)
Empréstimos comerciais	US $ 892 milhões
Contas de corrente pessoal	47.623 contas
Contas de poupança pessoal	32.451 contas

Gerenciamento de patrimônio e consultoria de investimento

Os ativos sob gestão (AUM) totalizaram US $ 345 milhões em 2023.

• Base de clientes de gerenciamento de patrimônio: 2.876 clientes individuais
• Valor médio do portfólio: US $ 120.000 por cliente
• Receita de consultoria de investimento: US $ 8,2 milhões em 2023

Serviços de Origem e Crédito empréstimos

O total de origens em empréstimos em 2023 atingiu US $ 412 milhões.

Tipo de empréstimo	Volume de originação
Hipotecas residenciais	US $ 187 milhões
Imóveis comerciais	US $ 156 milhões
Empréstimos ao consumidor	US $ 69 milhões

Gerenciamento de plataforma bancária digital

Métricas da plataforma bancária digital para 2023:

• Usuários bancários online: 38.245
• Downloads de aplicativos bancários móveis: 22.673
• Volume de transação digital: 3,2 milhões de transações

Avaliação e gerenciamento de risco financeiro

Estatísticas de gerenciamento de riscos para 2023:

Métrica de risco	Valor
Razão de empréstimos não-desempenho	1.42%
Reserva de perda de empréstimo	US $ 22,3 milhões
Índice de adequação de capital	12.6%

National Bankshares, Inc. (NKSH) - Modelo de negócios: Recursos -chave

Infraestrutura bancária e sistemas de tecnologia

A partir do quarto trimestre 2023, a National Bankshares, Inc. opera com a seguinte infraestrutura de tecnologia:

Recurso de tecnologia	Especificação
Plataforma bancária principal	Sistema bancário de DNA Fiserv
Plataformas bancárias digitais	Soluções bancárias móveis e online
Investimento de segurança cibernética	US $ 1,2 milhão anualmente
Infraestrutura de TI	Sistemas baseados em nuvem e no local

Profissionais financeiros experientes e equipe de gerenciamento

Composição da equipe de gerenciamento:

• Total de funcionários: 281 (em 31 de dezembro de 2023)
• Experiência de gerenciamento médio: 17,5 anos
• Equipe de liderança executiva: 7 executivos seniores

Rede Regional de Filial

Detalhes da distribuição de ramificação:

Localização	Número de ramificações
Virgínia	22 ramos
Virgínia Ocidental	8 ramos
Locais físicos totais	30 ramos

Base de depósito do cliente

Remoção de portfólio de depósitos:

Tipo de depósito	Montante total
Total de depósitos	US $ 1,43 bilhão (Q4 2023)
Depósitos de rolamento não interessantes	US $ 247 milhões
Depósitos portadores de juros	US $ 1,18 bilhão

Recursos bancários digitais

Recursos bancários digitais:

• Downloads de aplicativos bancários móveis: 42.500
• Usuários bancários online: 68% da base de clientes
• Volume de transação digital: 1,2 milhão de transações mensais

National Bankshares, Inc. (NKSH) - Modelo de negócios: proposições de valor

Serviços bancários personalizados para comunidades locais

A partir do quarto trimestre de 2023, a National Bankshares, Inc. atende 18 locais bancários comunitários na Virgínia e na Virgínia Ocidental. O total de ativos relatados foi de US $ 2,49 bilhões, com depósitos totais de US $ 2,23 bilhões.

Categoria de serviço	Número de ofertas	Alcance médio do cliente
Produtos bancários pessoais	37	15.672 clientes individuais
Soluções bancárias de negócios	24	3.845 clientes comerciais

Taxas de juros competitivas e produtos financeiros

Taxas de juros dos principais produtos em janeiro de 2024:

• Contas de poupança pessoal: 0,75% - 1,25% APY
• Contas do mercado monetário: 1,50% - 2,25% APY
• Certificado de depósito (12 meses): 3,75% APY
• Linhas de crédito de capital doméstico: 7,25% - 8,50% de taxa variável

Tomada de decisão local e bancos baseados em relacionamento

Taxa de aprovação de empréstimos local: 92,3% para pedidos de empréstimos baseados na comunidade em 2023.

Tipo de empréstimo	Taxa de aprovação	Tempo médio de processamento
Empréstimos para pequenas empresas	87.6%	5-7 dias úteis
Empréstimos pessoais	94.2%	3-5 dias úteis

Soluções financeiras abrangentes

Breakdown do portfólio de produtos para 2023:

• Produtos bancários pessoais: 42%
• Business Banking Solutions: 33%
• Serviços de investimento: 15%
• Empréstimo de hipoteca: 10%

Compromisso da comunidade e apoio econômico local

Métricas de investimento comunitário para 2023:

• Empréstimos totais de desenvolvimento comunitário: US $ 87,4 milhões
• Contribuições de caridade locais: US $ 1,2 milhão
• Empréstimos para pequenas empresas processadas: 412
• Impacto econômico total nas regiões locais: US $ 156,3 milhões

National Bankshares, Inc. (NKSH) - Modelo de Negócios: Relacionamentos do Cliente

Gerenciamento de relacionamento pessoal

A National Bankshares, Inc. mantém 15 escritórios bancários de serviço completo localizado no sudoeste da Virgínia a partir de 2023. O banco atende a aproximadamente 26.000 contas de clientes com uma abordagem personalizada.

Métrica de relacionamento com o cliente	Dados quantitativos
Frequência média de interação do cliente	4,2 pontos de contato por trimestre
Gerentes de relacionamento dedicados	27 representantes bancários pessoais
Taxa de retenção de clientes	89.6%

Interações de ramificação pessoal

Cobertura da rede de filiais: 15 locais físicos no sudoeste da Virgínia

• Visitas diárias da filial diária: 62 por local
• Funcionários totais da filial: 89 funcionários
• Tempo médio de transação: 12,5 minutos

Canais de suporte bancário digital

Canal digital	Estatísticas de uso
Usuários bancários online	18.500 usuários ativos
Downloads de aplicativos bancários móveis	14.200 usuários móveis ativos
Volume de transação digital	72% do total de transações

Consultoria financeira personalizada

Serviços de Consultoria Financeira Especializada segmentando:

• Gestão de patrimônio
• Planejamento de aposentadoria
• Estratégias financeiras de pequenas empresas

Engajamento do cliente focado na comunidade

Métrica de engajamento da comunidade	Dados anuais
Eventos comunitários locais patrocinados	24 eventos
Investimento comunitário	$375,000
Contribuições de caridade locais	$142,500

National Bankshares, Inc. (NKSH) - Modelo de Negócios: Canais

Rede de agência bancária física

A partir de 2024, a National Bankshares, Inc. opera 26 agências bancárias físicas localizadas principalmente na Virgínia e na Virgínia Ocidental.

Estado	Número de ramificações
Virgínia	19
Virgínia Ocidental	7

Plataforma bancária online

Recursos bancários digitais:

• Acesso à conta 24/7
• Serviços de pagamento da conta
• Transferências de fundos
• Extratos de conta

Aplicativo bancário móvel

Aplicativo móvel disponível para plataformas iOS e Android com Mais de 8.500 usuários móveis ativos a partir de 2024.

Plataforma móvel	App Store Classificação
iOS	4.6/5
Android	4.4/5

Serviços bancários telefônicos

Suporte ao cliente disponível Segunda a sexta-feira, das 8:00 às 18:00 EST.

• Inquéritos do saldo da conta
• Histórico de transações
• Ativação do cartão

Rede ATM

O National Bankshares opera 42 locais atm em sua região de serviço.

Tipo de atm	Número de máquinas
Caixas eletrônicos de propriedade de bancos	32
Caixas eletrônicos de rede compartilhada	10

National Bankshares, Inc. (NKSH) - Modelo de negócios: segmentos de clientes

Pequenas e médias empresas

A partir do quarto trimestre de 2023, o National Bankshares atende aproximadamente 1.287 empresas pequenas e médias no mercado regional. Portfólio total de empréstimos comerciais para este segmento: US $ 214,3 milhões.

Segmento de negócios	Número de clientes	Portfólio total de empréstimos
Negócios de varejo	643	US $ 87,6 milhões
Serviços profissionais	412	US $ 65,9 milhões
Fabricação	232	US $ 60,8 milhões

Clientes bancários de varejo individuais

Total de clientes bancários de varejo: 42.156. Saldo médio da conta: US $ 24.750.

• Contas de corrente pessoal: 28.341
• Contas de poupança: 22.094
• Clientes de empréstimos pessoais: 6.782

Setor agrícola local

Portfólio de empréstimos agrícolas: US $ 89,7 milhões. Número de clientes agrícolas: 523.

Sub-segmento agrícola	Número de clientes	Portfólio de empréstimos
Agricultura de culturas	276	US $ 47,3 milhões
Agricultura de gado	187	US $ 32,6 milhões
Agricultura de laticínios	60	US $ 9,8 milhões

Serviços profissionais e empreendedores

Total de serviços profissionais e clientes empreendedores: 1.042. Portfólio Banking Total de Negócios: US $ 156,4 milhões.

• Profissionais jurídicos: 287 clientes
• Praticantes de saúde: 214 clientes
• Empreendedores de tecnologia: 186 clientes
• Empresas de consultoria: 355 clientes

Indivíduos de alta rede nos mercados regionais

Segmento de clientes de alta rede: 612 indivíduos. Total de ativos sob gestão: US $ 287,6 milhões.

Nível de riqueza	Número de clientes	Ativos médios
$ 1m - US $ 5m	412	US $ 2,3 milhões
US $ 5 milhões - US $ 10 milhões	142	US $ 6,8 milhões
US $ 10 milhões+	58	US $ 15,6 milhões

National Bankshares, Inc. (NKSH) - Modelo de negócios: estrutura de custos

Salários e benefícios dos funcionários

Até o relatório anual de 2022, a National Bankshares, Inc. registrou despesas totais de remuneração e benefícios de US $ 25,3 milhões.

Categoria de despesa	Valor ($)
Salários	18,750,000
Benefícios dos funcionários	6,550,000
Contribuições de aposentadoria	1,450,000

Manutenção de tecnologia e infraestrutura digital

Os custos de infraestrutura de tecnologia para o banco totalizaram US $ 4,2 milhões em 2022.

• Manutenção do sistema bancário principal: US $ 1.750.000
• Investimentos de segurança cibernética: US $ 1.250.000
• Atualizações da plataforma bancária digital: US $ 1.200.000

Despesas operacionais de ramificação

Os custos operacionais totais da filial para 2022 foram de US $ 7,6 milhões.

Tipo de despesa	Valor ($)
Aluguel e ocupação	3,200,000
Utilitários	850,000
Manutenção e reparos	1,550,000
Equipamento de ramificação	2,000,000

Custos de conformidade regulatória

As despesas relacionadas à conformidade em 2022 totalizaram US $ 3,5 milhões.

• Salários da equipe legal e de conformidade: US $ 1.750.000
• Sistemas de relatórios regulatórios: US $ 850.000
• Taxas externas de auditoria e consultoria: US $ 900.000

Despesas de marketing e aquisição de clientes

As despesas de marketing para o ano de 2022 foram de US $ 2,1 milhões.

Canal de marketing	Gastar ($)
Marketing digital	750,000
Publicidade tradicional	650,000
Patrocínio da comunidade	350,000
Campanhas de aquisição de clientes	350,000

National Bankshares, Inc. (NKSH) - Modelo de negócios: fluxos de receita

Receita de juros de carteiras de empréstimos

Para o ano fiscal de 2023, a National Bankshares, Inc. registrou receita total de juros de US $ 45,3 milhões. A quebra da carteira de empréstimos é a seguinte:

Categoria de empréstimo	Valor total ($)	Porcentagem de portfólio
Empréstimos comerciais	22,650,000	50%
Empréstimos hipotecários residenciais	15,120,000	33%
Empréstimos ao consumidor	7,530,000	17%

Cobranças de serviço e taxas bancárias

As taxas de serviço e taxas bancárias de 2023 totalizaram US $ 8,7 milhões, com as seguintes fontes de receita seguintes:

• Taxas de manutenção de conta: US $ 3,2 milhões
• Cobranças de cheque especial: US $ 2,5 milhões
• Taxas de transação ATM: US $ 1,6 milhão
• Taxas de transferência de fio: US $ 1,4 milhão

Comissões de investimento e gerenciamento de patrimônio

Os serviços de investimento geraram US $ 6,2 milhões em comissões durante 2023, com a seguinte distribuição:

Tipo de serviço	Receita da Comissão ($)
Advogado de gerenciamento de patrimônio	3,720,000
Gerenciamento de portfólio de investimentos	1,860,000
Serviços de planejamento de aposentadoria	620,000

Serviços de Gerenciamento do Tesouro

A receita dos Serviços de Gerenciamento do Tesouro para 2023 foi de US $ 4,5 milhões, com o seguinte quebra:

• Serviços de gerenciamento de caixa: US $ 2,1 milhões
• Processamento de pagamento: US $ 1,6 milhão
• Serviços comerciais: US $ 800.000

Receita de transação bancária digital

As transações bancárias digitais geraram US $ 3,8 milhões em receita para 2023:

Serviço digital	Receita de transação ($)
Transações bancárias online	1,900,000
Transações bancárias móveis	1,140,000
Serviços de pagamento digital	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.