Executive Summary

Q4 2024 earnings per share were $0.48, matching third‑party consensus; “total revenue” (net interest income + noninterest income) was ~$12.25M, a modest miss versus third‑party consensus by 1.71% as reported by Nasdaq/Yahoo Finance .
Net interest margin expanded sequentially to 2.34% from 2.20% in Q3 and 2.13% in Q2, driven by lower deposit costs following the Federal Reserve’s 100 bps cuts in late 2024 and lower repricing on maturing time deposits .
QoQ revenue growth reflected higher net interest income and stable noninterest income; YoY revenue rose on higher loan yields, partly offset by elevated deposit costs and merger‑related expenses (FCB integration) .
Dividends declared were $0.78 per common share in Q4; book value per share ended Q4 at $24.58 .
Credit quality remained solid: nonperforming assets/loans at 0.22%, ACL coverage of nonperforming loans at ~462% .

What Went Well and What Went Wrong

What Went Well

Sequential NIM improvement: Net interest margin rose to 2.34% from 2.20% QoQ, aided by lower deposit costs after Fed cuts and repricing benefits on maturing time deposits . Management: “the Federal Reserve's 100 basis point decrease during the last four months of 2024… immediately reduced the cost of the Company's adjustable‑rate deposits and allowed lower repricing on maturing time deposits” .
Stable fee income and trust growth: Service charges increased YoY due to an updated fee schedule and FCB acquisition; trust income increased on AUM expansion .
Strategic expansion and tech investment: CEO highlighted branch expansion into new markets and an enterprise system upgrade aimed at improved customer experience and back‑end efficiency—“banking that is both personal and profitable” .

What Went Wrong

Elevated deposit costs compressed full‑year NIM: 2024 NIM was 2.19% vs. 2.38% in 2023 as deposit costs outpaced asset yields for much of the year .
Merger‑related and operating expenses: Q4 noninterest expense increased YoY (to $8.62M) with ongoing merger‑related items and normal fluctuations in salaries/data processing; full‑year merger expenses totaled $2.92M .
Revenue vs. estimates: Third‑party reported a 1.71% revenue miss for Q4 despite an EPS match, implying lingering pressure from deposit competition; S&P Global consensus was unavailable at time of retrieval .

Financial Results

Income Statement Metrics vs. Prior Periods

Metric	Q2 2024	Q3 2024	Q4 2024
Net Interest Income ($M)	$8.700	$9.448	$10.004
Noninterest Income ($M)	$2.246	$2.272	$2.243
Total Revenue ($M) (Net Interest + Noninterest)	$10.946	$11.720	$12.247
Net Income ($M)	$(0.306)	$2.676	$3.079
Diluted EPS ($)	$(0.05)	$0.42	$0.48
Net Interest Margin (%)	2.13%	2.20%	2.34%
Efficiency Ratio (%) (non‑GAAP)	68.79%	69.80%	68.84%
ROAA (%)	0.46%	0.61%	0.68%
ROAE (%)	5.68%	7.09%	7.63%

Q4 YoY

Metric	Q4 2023	Q4 2024
Net Interest Income ($M)	$8.480	$10.004
Noninterest Income ($M)	$2.254	$2.243
Total Revenue ($M)	$10.734	$12.247
Diluted EPS ($)	$0.71	$0.48
Net Interest Margin (%)	2.15%	2.34%

Actual vs. Estimates (Q4 2024)

Metric	Actual	Consensus (S&P Global)	Consensus (3rd‑party)	Surprise
EPS ($)	$0.48	Unavailable (SPGI request limit)	$0.48	In line
Total Revenue ($M)	$12.247	Unavailable (SPGI request limit)	Miss by 1.71% (estimate not disclosed)	−1.71%
Note: S&P Global consensus estimates were unavailable at time of retrieval due to request limits. Third‑party consensus references are from Nasdaq/Yahoo Finance.

Segment/Portfolio Breakdown (Q4 2024)

Loans ($000s)	Dec 31, 2024
Real estate construction	$50,798
Consumer real estate	$307,855
Commercial real estate	$478,078
Commercial non‑real estate	$51,844
Public sector and IDA	$57,171
Consumer non‑real estate	$42,867
Total loans (gross)	$988,613

KPIs and Balance Sheet

KPI	Q2 2024	Q3 2024	Q4 2024
Total Assets ($M)	$1,809.2	$1,785.0	$1,811.6
Total Deposits ($M)	$1,645.1	$1,603.0	$1,644.8
Book Value/Share ($)	$23.42	$26.38	$24.58
Dividends/Share ($)	$0.73	$—	$0.78
NPA / Loans (%)	0.25%	0.23%	0.22%
ACL / Loans (%)	1.06%	1.03%	1.04%
ACL / NPL (%)	418.91%	452.39%	461.84%
Tangible Common Equity / Tangible Assets (%)	7.58%	8.75%	7.99%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue, Margins, OpEx, Tax Rate, Dividends	Q1 2025 onward	Not provided	Not provided	Maintained (no formal guidance)

No formal quantitative guidance was issued; management commentary emphasized deposit cost trends, NIM drivers, and integration/technology initiatives without specifying ranges .

Earnings Call Themes & Trends

No earnings call transcript was identified for Q4 2024 in the document catalog; themes are drawn from press releases.

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
Net interest margin drivers	Q2/Q3: NIM improvement from repricing and FCB impact; deposit costs up from acquisition; Fed September cut eased costs	NIM improved QoQ to 2.34% as Fed’s 100 bps cuts lowered deposit costs and repricing on time deposits	Improving sequentially
Deposit competition/costs	Elevated costs due to acquisition and competitive pressure; easing after Fed cuts	Costs declined sequentially; continued monitoring of funding base	Easing
Merger integration (FCB)	Acquisition closed 6/1; merger expenses recorded; securities sold; borrowings repaid	Full year merger expense $2.92M; deposit base expanded; goodwill/core deposit intangible recognized	Integration progressed
Technology initiatives	Enterprise system upgrade referenced as 2024 initiative	Upgrade underway to enhance customer experience and back‑end efficiency	Ongoing
Liquidity	Strong with FHLB/Fed lines; low loan‑to‑deposit ratio; stress test positives	Solid position retained; capacity to meet foreseeable demands	Stable
Credit quality	Low charge‑offs/past‑dues; improved NPA ratios	NPA ratio 0.22%; ACL/NPL ~462%	Strong/stable

Management Commentary

CEO Denardo (Q4 release): “We have expanded our reach… while maintaining a strong community banking ethos… an enterprise system upgrade… to deliver a powerful and improved customer experience while increasing back‑end efficiency… National Bankshares is committed to banking that is both personal and profitable” .
On NIM and deposit costs: “the Federal Reserve's 100 basis point decrease during the last four months of 2024… immediately reduced the cost of the Company's adjustable‑rate deposits and allowed lower repricing on maturing time deposits” .
Q3 context: “Year‑to‑date earnings remain burdened by high interest expense, but we were pleased with the positive income statement trends in the third quarter… acquisition of three branch offices… upcoming opening of a newly constructed office in Roanoke” .

Q&A Highlights

No Q4 2024 earnings call transcript was available in the documents catalog; therefore, Q&A details and any guidance clarifications could not be assessed.

Estimates Context

S&P Global consensus estimates were unavailable at time of retrieval due to platform request limits.
Third‑party references indicate EPS matched consensus at $0.48 and “revenue” missed by 1.71% in Q4 2024; the exact consensus revenue figure was not disclosed in those sources .
Given a sequential NIM improvement and easing deposit costs, near‑term estimate revisions may modestly raise NIM and net interest income assumptions while trimming noninterest expense for merger‑related items tapering into 2025 .

Key Takeaways for Investors

Sequential momentum: NIM expansion to 2.34% and QoQ revenue growth signal improving core earnings power as deposit costs normalize post‑Fed cuts .
Merger integration nearing steady state: Full‑year merger expense ($2.92M) should fade in 2025; expanded footprint and deposit base add medium‑term growth optionality .
Credit quality remains a pillar: Low NPA ratios and robust ACL coverage (>460%) support normalized loss provisioning and balanced loan growth .
Dividend support: Q4 dividend of $0.78 and solid capital profile (well‑capitalized bank) underpin income appeal; watch book value volatility tied to AOCI from securities .
Operating leverage potential: Enterprise system upgrade and deposit cost relief create scope for efficiency ratio improvement from 68.8% levels as merger expenses roll off .
Estimate calibration: With SPGI consensus unavailable, third‑party indicates EPS in line and slight revenue miss; look for sell‑side to reflect NIM tailwinds and lower funding costs in 2025 models .
Trading lens: Near‑term catalysts include continued NIM improvement, stabilization of deposit betas, and any disclosures on branch‑level growth contributions post‑FCB; risks center on renewed deposit competition and rate path variability .

NATIONAL BANKSHARES INC (NKSH)·Q4 2024 Earnings Summary