National Bankshares Q3 net income rises on higher asset yields

By Reuters News


Overview

  • US community bank's Q3 net income rose yr/yr on higher securities and loan yields

  • Company's net interest margin improved yr/yr and sequentially, aided by lower deposit costs

  • Noninterest income rose, driven by higher deposit and card fees and improved trust income


Outlook

  • Company expects continued loan repricing to support income growth in coming quarters

  • National Bankshares expects securities paydowns and maturities in Q4 to pay off short-term borrowings

  • Company believes it is well positioned to meet foreseeable liquidity demands


Result Drivers

  • SECURITIES YIELD IMPROVEMENT - Co said Q3 earnings growth was driven by higher yields on securities following a portfolio restructuring

  • LOWER DEPOSIT COSTS - Co attributed income growth to reduced deposit costs during 2026

  • NONINTEREST INCOME GAINS - Co said Q3 noninterest income rose due to higher deposit account fees and improved trust income


Company press release: Full Story


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

$5.49 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for National Bankshares Inc is $46.75, about 6.2% above its October 21 closing price of $44.04

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Oct 20 - Metropolitan Bank Q3 net interest margin rises on higher yields and loan payoffs

  • Oct 22 - Amalgamated Financial's Q3 core EPS beats on higher interest income

  • Oct 20 - Commerce Bancshares Q3 EPS beats, helped by loan growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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