National Bankshares Inc. Q2 2024 10-Q Filed

TL;DR

**National Bankshares Inc. Q2 2024 10-Q: Issued 464,855 shares at $30.76 for acquisition.**

AI Summary

National Bankshares Inc. filed its 10-Q for the period ending June 30, 2024. The company reported key financial figures, including a total of $5,000,000 in common stock issued and outstanding. Notably, the company issued 464,855 shares of common stock valued at $30.76 per share on May 31, 2024, as part of an acquisition.

Why It Matters

This filing provides insight into National Bankshares Inc.'s financial health and recent corporate actions, including a significant stock issuance for an acquisition, which can impact investor sentiment and future performance.

Risk Assessment

Risk Level: medium — The filing details a stock issuance for an acquisition, which carries inherent risks related to integration and valuation, alongside standard financial reporting risks.

Key Numbers

• $5.0M — Common Stock (Issued and outstanding as of June 30, 2024.)
• $30.76 — Stock Price (Price per share for 464,855 shares issued on May 31, 2024, for an acquisition.)
• 464,855 — Shares Issued (Issued on May 31, 2024, as part of an acquisition.)

Key Players & Entities

• NATIONAL BANKSHARES INC (company) — Filer
• 20240630 (date) — Period of Report
• 5,000,000 (dollar_amount) — Common Stock Issued and Outstanding
• 464,855 (dollar_amount) — Shares of Common Stock Issued
• 30.76 (dollar_amount) — Price per Share on May 31, 2024
• May 31, 2024 (date) — Date of Stock Issuance

FAQ

Key Financial Figures

• $1.25 — ich registered Common Stock, par value $1.25 per share NKSH Nasdaq Capital Marke

Filing Documents

• nksh20240630_10q.htm (10-Q) — 3743KB
• ex_711789.htm (EX-10.I) — 28KB
• ex_710677.htm (EX-31.I) — 9KB
• ex_710678.htm (EX-31.II) — 9KB
• ex_710679.htm (EX-32.I) — 4KB
• ex_710680.htm (EX-32.II) — 4KB
• 0001437749-24-026741.txt ( ) — 16596KB
• nksh-20240630.xsd (EX-101.SCH) — 69KB
• nksh-20240630_cal.xml (EX-101.CAL) — 79KB
• nksh-20240630_def.xml (EX-101.DEF) — 505KB
• nksh-20240630_lab.xml (EX-101.LAB) — 438KB
• nksh-20240630_pre.xml (EX-101.PRE) — 539KB
• nksh20240630_10q_htm.xml (XML) — 4753KB

– Financial Information

Part I – Financial Information Item 1

Financial Statements

Financial Statements 3 Consolidated Balance Sheets, June 30, 2024 (Unaudited) and December 31, 202 3 3 Consolidated Statements of (Loss) Income for the Three Months Ended June 30, 2024 and 2023 (Unaudited) 4 Consolidated Statements of Comprehensive (Loss) Income for the Three Months Ended June 30, 2024 and 2023 (Unaudited) 5 Consolidated Statements of Income for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 6 Consolidated Statements of Comprehensive (Loss) Income for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 7 Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended June 30, 2024 and 2023 (Unaudited) 8 Consolidated Statements of Changes in Stockholders' Equity for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 8 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (Unaudited) 9

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 11 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 33 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 46 Item 4

Controls and Procedures

Controls and Procedures 46

– Other Information

Part II – Other Information Item 1

Legal Proceedings

Legal Proceedings 47 Item 1A

Risk Factors

Risk Factors 47 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 47 Item 3 Defaults Upon Senior Securities 47 Item 4 Mine Safety Disclosures 47 Item 5 Other Information 47 Item 6 Exhibits 48

Signatures

Signatures 49 2 Table of Contents Part I

Financial Statements

Item 1. Financial Statements Financial Information National Bankshares, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data) June 30, 2024 December 31, 2023 Assets Cash and due from banks $ 14,908 $ 12,967 Interest-bearing deposits 80,477 73,636 Federal Funds sold 3,499 - Total cash and cash equivalents 98,884 86,603 Securities available for sale, at fair value 605,196 618,601 Restricted stock, at cost 1,752 1,264 Mortgage loans held for sale 125 406 Loans: Loans, net of unearned income and deferred fees and costs 989,367 856,646 Less allowance for credit losses ( 10,502 ) ( 9,094 ) Loans, net 978,865 847,552 Premises and equipment, net 15,468 11,109 Accrued interest receivable 6,615 6,313 Goodwill 10,733 5,848 Core deposit intangible, net 2,065 - Bank-owned life insurance 46,775 43,583 Other assets 42,738 34,091 Total assets $ 1,809,216 $ 1,655,370 Liabilities and Stockholders' Equity Noninterest-bearing demand deposits $ 296,242 $ 281,215 Interest-bearing demand deposits 867,899 821,661 Savings deposits 176,852 177,856 Time deposits 304,059 223,240 Total deposits 1,645,052 1,503,972 Accrued interest payable 2,525 1,416 Other liabilities 12,676 9,460 Total liabilities 1,660,253 1,514,848 Commitments and contingencies Stockholders' Equity Preferred stock, no par value, 5,000,000 shares authorized; none issued and outstanding $ - $ - Common stock of $ 1.25 par value and additional paid in capital. Authorized 10,000,000 shares; issued and outstanding 6,361,433 (including 4,839 unvested) shares at June 30, 2024 and 5,893,782 (including 4,095 unvested) shares at December 31, 2023 21,768 7,404 Retained earnings 195,549 197,984 Accumulated other comprehensive loss, net ( 68,354 ) ( 64,866 ) Total stockholders' equity 148,963 140,522 Total liabilities and stockholders' equity $ 1,809,216 $ 1,655,370 See accompanying not

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements June 30, 2024 (Unaudited) $ in thousands, except per share data Note 1: General and Summary of Significant Accounting Policies The consolidated financial statements of National Bankshares, Inc. ("NBI") and its wholly-owned subsidiaries, The National Bank of Blacksburg (the "Bank" or "NBB") and National Bankshares Financial Services, Inc. ("NBFS") (collectively, the "Company"), conform to accounting principles generally accepted in the United States of America ("GAAP") and to general practices within the banking industry. All significant intercompany accounts and transactions between the Company and its subsidiaries have been eliminated. The accompanying interim period consolidated financial statements are unaudited; however, in the opinion of the Company's management, all adjustments consisting of normal recurring adjustments, which are necessary for a fair presentation of the consolidated financial statements, have been included. Application of the principles of GAAP and practices within the banking industry requires management to make estimates, assumptions, and judgements that affect the amounts reported in the financial statements and accompanying notes. These estimates, assumptions, and judgements are based on information available as of the date of the financial statement; accordingly, as this information changes, the financial statements may reflect different estimates, assumptions, and judgments. Certain policies inherently rely more extensively on the use of estimates, assumptions, and judgments and as such may have a greater possibility of producing results that could be materially different than originally reported. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance of credit losses on loans and acquisition accounting. The results of operations for the three and six months ended June 30, 2024 are not necessarily ind

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