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Get filing alertsNational Bankshares Q2 net income doubles to $5.03M on $6.57M insurance stake sale
Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read
Key Changes
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Q2 2026 net income $5.03M ($0.79/share), up from $2.29M ($0.36/share) in Q2 2025, driven by $6.57M gain on sale of Bearing Insurance Group stake and securities portfolio repositioning.
Exhibit 99.1 view on EDGAR → -
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Sold $131.87M in low-yield securities (1.80%) and purchased $127.33M in mortgage-backed securities (5.26%), taking $6.55M pre-tax loss with expected 1.8-year payback and $4.25M annual interest income increase.
Exhibit 99.1 view on EDGAR → -
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Exhibit 99.1 view on EDGAR →
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Loans grew to $1.01B at June 30, 2026, led by construction lending; provision for credit losses $317K in Q2 2026 (versus $73K recovery in Q1) reflecting growth and softening economic factors, though credit quality remains strong.
Exhibit 99.1 view on EDGAR →
Summary
National Bankshares reported Q2 2026 net income of $5.03 million ($0.79 per share), more than double the $2.29 million ($0.36 per share) earned in Q2 2025.
The improvement was driven by two significant transactions: a $6.57 million gain on the sale of the company's membership interest in Bearing Insurance Group, and a securities portfolio repositioning that generated a $6.55 million pre-tax loss but is expected to increase annual interest income by $4.25 million.
The insurance stake sale was a one-time event that will eliminate future annual bonus commissions on insurance production. The securities repositioning involved selling $131.87 million in low-yielding agency and mortgage-backed securities (1.80% weighted average yield) and purchasing $127.33 million in higher-yielding mortgage-backed securities (5.26% yield). Management expects to recover the realized loss in approximately 1.8 years and projects the move will add 12 basis points to 2026 net interest margin and 24 basis points to 2027. Net interest margin improved to 3.00% in Q2 2026 from 2.56% a year earlier, driven by higher loan and securities yields and lower deposit costs. Loans grew to $1.01 billion, led by construction lending, with credit quality remaining strong despite a $317,000 provision reflecting portfolio growth and some economic softening.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
National Bankshares disclosed Q2 2026 financial results via press release.
Added in current filing · verify on EDGAR →
On July 23, 2026, National Bankshares, Inc. issued a press release reporting its financial results for the period ended June 30, 2026.
The company announced its second quarter 2026 financial results. The 8-K itself does not disclose specific figures; it references an attached press release (Exhibit 99.1) that would contain the detailed results. Without access to that exhibit, no quantitative metrics can be reported here.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
For the three month period ended June 30, 2026, the Company reported net income of $5.03 million or $0.79 per diluted common share. This compares with net income for the three month period ended June 30, 2025 of $2.29 million or $0.36 per diluted common share.
National Bankshares reported Q2 2026 net income of $5.03 million ($0.79 per diluted share), more than doubling from $2.29 million ($0.36 per share) in Q2 2025. For the six months ended June 30, 2026, net income was $10.01 million ($1.57 per share) versus $5.53 million ($0.87 per share) in the prior-year period. The improvement reflects a gain on sale of an equity investment and securities portfolio repositioning.
Added in current filing · view on EDGAR →
The net interest margin improved when the second quarter of 2026 is compared with the first quarter of 2026 due to reduction in the cost of time deposits. When the second quarter of 2026 is compared with the second quarter of 2025, improvement in net interest margin stemmed from higher yields on loans and taxable securities and lower cost of time deposits and interest bearing deposit accounts.
Net interest margin improved to 3.00% in Q2 2026 from 2.98% in Q1 2026 and 2.56% in Q2 2025. The sequential improvement was driven by lower time deposit costs, while the year-over-year improvement reflected higher loan and securities yields combined with lower deposit costs. For the six months ended June 30, 2026, net interest margin was 2.99% versus 2.48% in the prior-year period.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 24, 2026 · How we verify