National Bankshares Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>National Bankshares Inc. filed its 2023 10-K, reporting $5.89 billion in assets and $700,000 in net income.</b>

AI Summary

NATIONAL BANKSHARES INC (NKSH) filed a Annual Report (10-K) with the SEC on March 19, 2024. National Bankshares Inc. reported total assets of $5,893,782,000 as of December 31, 2023. The company's net income for the fiscal year ended December 31, 2023, was $700,000. Earnings per share (EPS) for the fiscal year ended December 31, 2023, were $1.50. Total debt for National Bankshares Inc. was $5,889,687,000 as of December 31, 2023. The company's cash and cash equivalents stood at $22,403,000 as of December 31, 2023.

Why It Matters

For investors and stakeholders tracking NATIONAL BANKSHARES INC, this filing contains several important signals. The filing provides a comprehensive overview of the company's financial performance and position for the fiscal year 2023, including detailed financial statements and risk factors. Investors can use this report to assess the bank's profitability, asset quality, capital adequacy, and overall financial health, which are crucial for investment decisions.

Risk Assessment

Risk Level: medium — NATIONAL BANKSHARES INC shows moderate risk based on this filing. The company's significant total debt of $5,889,687,000 relative to its total assets of $5,893,782,000 indicates a high leverage, which can increase financial risk.

Analyst Insight

Review the detailed breakdown of the company's debt structure and interest coverage ratios to assess its ability to manage its financial obligations.

Financial Highlights

revenue

5,893,782,000

total Assets

5,893,782,000

total Debt

5,889,687,000

net Income

700,000

eps

1.50

cash Position

22,403,000

Key Numbers

• 5,893,782,000 — Total Assets (As of December 31, 2023)
• 700,000 — Net Income (For the fiscal year ended December 31, 2023)
• 1.50 — EPS (For the fiscal year ended December 31, 2023)
• 5,889,687,000 — Total Debt (As of December 31, 2023)
• 22,403,000 — Cash and Cash Equivalents (As of December 31, 2023)

Key Players & Entities

• NATIONAL BANKSHARES INC (company) — Filer name
• 20231231 (date) — Fiscal year end
• 20240319 (date) — Filing date
• VA (location) — State of incorporation
• 540-951-6300 (phone) — Business phone

FAQ

Risk Factors

• Capital Adequacy Requirements [medium — financial]: Failure to maintain prescribed capital levels, including the Basel III Capital Rules' capital conservation buffer (2.50%), could result in limitations on capital distributions and discretionary bonuses.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-19: Filing Date — Date the 10-K report was officially submitted to the SEC.

Glossary

Basel III Capital Rules

International regulatory framework for banks that addresses risks to bank liquidity and bank funding. (Relevant for understanding capital requirements and potential penalties for non-compliance.)

Key Financial Figures

• $1.25 — ich registered Common Stock, par value $1.25 per share NKSH Nasdaq Capital Marke
• $1,652,052 — ember 31, 2023, NBB had total assets of $1,652,052 and total deposits of $1,515,589. NBB's
• $1,515,589 — ets of $1,652,052 and total deposits of $1,515,589. NBB's net income for 2023 was $16,821,
• $16,821 — ,515,589. NBB's net income for 2023 was $16,821, which produced a return on average ass
• $14.48 — ach Frontier shareholder for either (i) $14.48 in cash, or (ii) 0.4250 shares of the C
• $3 billion — consolidated total assets of less than $3 billion from reporting consolidated regulatory
• $50 billion — itutions ("SIFI's") and to increase the $50 billion asset threshold in two stages to $250 b
• $250 billion — illion asset threshold in two stages to $250 billion to which these enhanced standards apply
• $10 billion — their parent companies) with less than $10 billion in consolidated assets and that meet ce
• $1 billion — also increased the asset threshold from $1 billion to $3 billion for financial institution
• $850 million — ducts and services. For banks with over $850 million and less than $50 billion in total asse

Filing Documents

• nksh20231231_10k.htm (10-K) — 3819KB
• ex_638555.htm (EX-4.2) — 25KB
• ex_638554.htm (EX-21) — 3KB
• ex_638553.htm (EX-23) — 3KB
• ex_638552.htm (EX-31.1) — 13KB
• ex_638551.htm (EX-31.2) — 13KB
• ex_638546.htm (EX-32.1) — 6KB
• ex_638545.htm (EX-32.2) — 6KB
• ex_638544.htm (EX-97.1) — 26KB
• logo01.jpg (GRAPHIC) — 7KB
• 0001437749-24-008428.txt (&nbsp;) — 18167KB
• nksh-20231231.xsd (EX-101.SCH) — 107KB
• nksh-20231231_cal.xml (EX-101.CAL) — 93KB
• nksh-20231231_def.xml (EX-101.DEF) — 757KB
• nksh-20231231_lab.xml (EX-101.LAB) — 633KB
• nksh-20231231_pre.xml (EX-101.PRE) — 813KB
• nksh20231231_10k_htm.xml (XML) — 4443KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 11 Item 1B. Unresolved Staff Comments 18 Item 1C. Cybersecurity 18 Item 2.

Properties

Properties 19 Item 3.

Legal Proceedings

Legal Proceedings 19 Item 4. Mine Safety Disclosures 19 Part II Item 5. Market for Registrant ' s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 19 Item 6. [Reserved] 19 Item 7. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 20 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 36 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 37 Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 77 Item 9A.

Controls and Procedures

Controls and Procedures 77 Item 9B. Other Information 78 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 78 Part III Item 10. Directors, Executive Officers and Corporate Governance 78 Item 11.

Executive Compensation

Executive Compensation 78 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 78 Item 13. Certain Relationships and Related Transactions, and Director Independence 79 Item 14. Principal Accountant Fees and Services 79 Part IV Item 15. Exhibit and Financial Statement Schedules 79 Item 16. Form 10-K Summary 81

Signatures

Signatures 82 2 Table of Contents Part I $ in thousands, except per share data.

Business

Item 1. Business History and Business National Bankshares, Inc. (the "Company" or "NBI") is a financial holding company that was organized in 1986 under the laws of Virginia and is registered under the Bank Holding Company Act of 1956. National Bankshares, Inc. common stock is listed on the Nasdaq Capital Market and is traded under the symbol "NKSH." It conducts most of its operations through its wholly-owned community bank subsidiary, the National Bank of Blacksburg (the "Bank" or "NBB"). It also owns National Bankshares Financial Services, Inc. ("NBFS"), which does business as National Bankshares Insurance Services and National Bankshares Investment Services. References in this report to "we," "us," or "our" refer to NBI unless the context indicates that the reference is to NBB. The National Bank of Blacksburg The National Bank of Blacksburg, which does business as National Bank, was originally chartered in 1891 as the Bank of Blacksburg. Its state charter was converted to a national charter in 1922 and it became the National Bank of Blacksburg. In 2004, NBB purchased Community National Bank of Pulaski, Virginia. In May 2006, Bank of Tazewell County, a Virginia bank which since 1996 was a wholly-owned subsidiary of NBI, was merged with and into NBB. Headquartered in Blacksburg, Virginia, NBB is community-oriented and offers a full range of retail and commercial banking services to individuals, businesses, non-profits and local governments. Twenty-four banking locations are located throughout southwest Virginia, and three loan production offices are located in Roanoke, Charlottesville, and Staunton, Virginia. Construction on a branch in Roanoke, Virginia is underway, with a planned completion date during the fourth quarter of 2024. NBB offers telephone, mobile and internet banking and it operates 22 automated teller machines ("ATMs") in its service area. The Bank's primary source of revenue stems from lending activities. The Bank focuses lending on small a

View Full Filing

View this 10-K filing on SEC EDGAR