Profile: National Bankshares Inc (NKSH.PH)
8 Mar 2018
National Bankshares, Inc., incorporated on April 28, 1986, is a financial holding company. The Company conducts its operations through its community bank subsidiary, the National Bank of Blacksburg (NBB or the Bank). NBB offers a range of retail and commercial banking services to individuals, businesses, non-profits and local governments. NBB has telephone and Internet banking.
NBB focuses lending on small and mid-sized businesses and individuals. NBB's loan types include commercial and agricultural, commercial real estate, construction for commercial and residential properties, residential real estate, home equity and various consumer loan products. The Company's real estate construction loans include construction loans for residential and commercial properties, as well as land. Its consumer real estate loans include conventional and junior lien mortgages, equity lines and investor-owned residential real estate. Its commercial real estate loans consist of owner-occupied and leased nonfarm, nonresidential properties, multi-family residence loans and farmland. Its commercial non real estate loans include farm loans, operating capital lines and loans secured by capital assets. Its consumer non real estate loans include automobile loans, personal loans, credit cards and consumer overdrafts. NBB's commercial and agricultural loans primarily finance equipment acquisition, expansion, working capital and other general business purposes. Commercial mortgages and construction loans are offered to investors, developers and builders, primarily within the Company's market area in southwest Virginia. It offers a range of first mortgage and junior lien loans secured by primary residences to individuals within its markets. It also offers home equity loans, which are secured primarily by second mortgages on residential property. Its automobile loans include loans and leases secured by new or used automobiles. It originates automobile loans either on a direct basis or on an indirect basis through selected dealerships. As of December 31, 2016, the Bank had total net loans of $639.4 million.
The Company's investment portfolio includes corporate bonds. It also invests in municipal bonds. The Company's available for sale securities include the United States Government agencies, mortgage-backed securities, states and political subdivision, corporate and other securities. As of December 31, 2016, the Bank's total available for sale securities were $309.8 million.
Sources of Funds
NBI's primary source of funds is deposits. Deposit products offered by the Bank include interest-bearing and non-interest bearing demand deposit accounts, money market deposit accounts, savings accounts, certificates of deposit and individual retirement accounts. Deposit accounts are offered to both individuals and commercial businesses. NBB also provides merchant credit card services, and business and consumer debit and credit cards. NBB offers other miscellaneous services, such as letters of credit, night depository, safe deposit boxes, traveler's checks, utility payment services and automatic funds transfer. NBB conducts a general trust business that provides wealth management, and trust and estate services for individual and business customers. As of December 31, 2016, the Bank's total deposits were $1 million. NBB also has deposits that are insured by the Federal Deposit Insurance Corporation (FDIC). Its other funding sources include the Federal Home Loan Bank.
The Company owns National Bankshares Financial Services, Inc. (NBFS), which does business as National Bankshares Insurance Services and National Bankshares Investment Services. NBFS offers non-deposit investment products and insurance products for sale to the public. NBFS works with Infinex Investments, Inc. to provide investments and with Bankers Insurance, LLC for insurance products.
National Bankshares Inc
101 Hubbard St,
PO Box 90002
BLACKSBURG VA 24060-5743