Hilton Capital Management Calls for National Bankshares to Review Its Capital Position

Letter to CEO Suggests Stock Buy Back or Special Dividend

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May 23, 2018, 04:14 ET

GARDEN CITY, N.Y., May 23, 2018 /PRNewswire/ -- In an April 13^th letter to National Bankshares President and Chief Executive Officer Brad Denardo, Hilton Capital Management outlined a number of concerns regarding National Bankshares' capital position and requested that National Bankshares normalize its capital levels by way of stock buybacks and/or a special dividend.

The letter – signed by Abbott Cooper, Portfolio Manager for Hilton Capital Management's Financial Opportunities Strategy – stated that reviewing its capital position and returning excess capital would benefit all stockholders, including National Bankshares' current and former CEOs.

"National Bankshares is a great bank," stated Mr. Cooper, "but it has a lot of excess capital—far more that it is likely to ever be able to deploy to make loans and support business in its markets—and would be better off returning that excess capital to stockholders, particularly when, not only does the market not seem to give National Bankshares any benefit for their excess capital, but it likely masks what I think is pretty enviable performance."

"Returning all capital in excess of current norms would benefit all stockholders," added Dick Bove, Chief Strategist for the Financial Opportunities Strategy, "we suggest that any other stockholders who share this view communicate that fact to National Bankshares."

The full text of the letter can be found here.

About Hilton Capital Management, LLC

Hilton Capital Management is a privately held investment management boutique based in Garden City, NY. Founded in 2001, the firm manages over $1.4 billion in balanced and equity strategies on behalf of a diverse client base comprised of corporate and public pensions, endowments, foundations, sub-advisory, family offices, wealth managers, financial advisors and individuals, nationwide. Hilton emphasizes integrity, transparency, and the alignment of the firm's interests with its clients. For more information, please visit www.hiltoncapitalmanagement.com.

Hilton Capital Management ("HCM" or the "Firm") is a registered investment adviser with its principal place of business in the State of New York. HCM and its representatives are in compliance with the current registration requirements imposed upon registered investment advisers by those states in which HCM maintains clients. HCM may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements.