National Bankshares, Inc. (NASDAQ: NKSH) released its third quarter 2026 results on November 3, 2026, reporting a net income of $5.49 million for the three months ended September 30, 2026. This represents an increase compared to the $4.42 million reported in the same period of the prior year.
The company reported diluted earnings per share of $0.86 for Q3 2026, up from $0.69 in Q3 2025. Net interest income for the quarter was $13.85 million, compared to $11.67 million in the prior year. The net interest margin expanded to 3.21% in Q3 2026, up from 2.72% in the prior year.
For the year-to-date period ending September 30, 2026, the company reported net income of $15.50 million, a 55.84% increase from the $9.95 million reported in the first nine months of 2025. Diluted EPS for the year-to-date period was $2.43, compared to $1.56 in the prior year.
National Bankshares attributes the earnings growth to lower deposit costs and improved yields on loans and securities. The company also noted that its efficiency ratio improved to 55.90% in Q3 2026, down from 58.75% in the prior year.
As of September 30, 2026, the company reported total assets of $1.78 billion, total deposits of $1.58 billion, and gross loans of $1.02 billion. The company has 28 full-service branches plus one loan production office across Southwestern, Western, and Central Virginia.
The company maintains a strong capital position, with common equity tier 1 capital ratio of 16.59% and total capital ratio of 17.44% as of September 30, 2026. Credit quality metrics remain strong, with nonaccrual and loans 90+ days past due representing 0.05% of total loans.
