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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000796534-03-000010.txt : 20031017
<SEC-HEADER>0000796534-03-000010.hdr.sgml : 20031017
<ACCEPTANCE-DATETIME>20031017151508
ACCESSION NUMBER:		0000796534-03-000010
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030930
ITEM INFORMATION:		Other events
FILED AS OF DATE:		20031017

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NATIONAL BANKSHARES INC
		CENTRAL INDEX KEY:			0000796534
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				541375874
		STATE OF INCORPORATION:			VA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-15204
		FILM NUMBER:		03946063

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 90002
		CITY:			BLACKSBURG
		STATE:			VA
		ZIP:			24062-9002
		BUSINESS PHONE:		5405522011

	MAIL ADDRESS:	
		STREET 1:		100 SOUTH MAIN STREET
		STREET 2:		PO BOX 90002
		CITY:			BLACKSBURG
		STATE:			VA
		ZIP:			24062-9002
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8k.txt
<TEXT>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                 --------------

                                    FORM 8-K
                                 CURRENT REPORT
                         PURSUANT TO SECTION 13 OR 15(d)
                                     OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                                  -------------

Date of Report: October 17, 2003                Commission File Number: 0-15204

                            National Bankshares, Inc.
- --------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)


        Virginia                                    54-1375874
- -------------------------------         ------------------------------------
(State or other jurisdiction of         (I.R.S. Employer Identification No.)
incorporation or organization)


101 Hubbard Street
Blacksburg, VA 24060
- -----------------------------
(Address of principal executive offices)

Registrant's telephone number, including area code (540) 951-6300
                                                   --------------


                                       1
                                     <PAGE>



ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE

        On October 17, 2003, National Bankshares, Inc. issued a press release
announcing the Company's earnings for the third quarter of 2003. A copy of the
press release is attached as Exhibit 99.1.


Exhibit
99.1    National Bankshares, Inc. Press
        Release dated October 17, 2003.



                                    SIGNATURE

        Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.

                                    NATIONAL BANKSHARES, INC.


                                    By: /s/ JAMES G. RAKES
                                        ------------------
                                        James G. Rakes
                                        Chairman
                                        President and Chief Executive Officer




                                             Page 2 of 2 Pages


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>ex99.txt
<TEXT>
FOR IMMEDIATE RELEASE

CONTACTS:     James G. Rakes, Chairman, President & CEO   (540) 951-6236
              J. Robert Buchanan, Treasurer               (276) 979-0341



                            NATIONAL BANKSHARES, INC.
                   ANNOUNCES EXCELLENT THIRD QUARTER EARNINGS


BLACKSBURG, VA, October 17, 2003: National Bankshares, Inc. (Nasdaq SmallCap
Market: NKSH) announced today that the Company posted record year-to-date net
income of more than $8.34 million on September 30, 2003. Net income is 13.32%
above the year-to-date total at the end of the third quarter one year ago. Total
assets at September 30, 2003 were nearly $699.57 million, down slightly from the
$707.38 reported at June 30, but 4.78% higher than last year at this time. These
results translate to a return on average assets of 1.60% and a return on average
equity of 14.55%.

National Bankshares had net loans at quarter end of $407.03 million, a slight
decline from the $410.39 million on September 30 in 2002. The ratio of
non-performing loans to total loans on September 30 was a low 0.05%, and the
allowance for loan losses to total loans was at 1.33%.

James G. Rakes, the Chairman, President & CEO of National Bankshares, Inc.,
said, "This year's solid earnings have come as a result of maintaining a good
net interest margin while keeping increases in non-interest expense at
reasonable levels. Our community bankers have been challenged to keep the net
interest margin and loan quality in mind in a very competitive loan market, and
they have been successful in meeting that challenge."

National Bankshares, Inc. is the parent company of The National Bank, founded in
Blacksburg, Virginia in 1891, and Bank of Tazewell County, headquartered in
Tazewell, Virginia since 1889. Together the two community banks operate 24
offices throughout Southwest Virginia. The Company also owns a non-bank
financial services subsidiary which does business in the same market as National
Bankshares Investment Services and National Bankshares Insurance Services.
National Bankshares, Inc. stock is traded on the Nasdaq Stock Market under the
symbol "NKSH". Additional information is available at
www.nationalbankshares.com.

                           (unaudited tables follow)

                                       1
                                     <PAGE>
<TABLE>
<CAPTION>

National Bankshares, Inc. And Subsidiaries

(000's), except ratios and       Three months   Three months
percent data                       ending          ending                Year-to-date   Year-to-date
                                  September       September              September 30,  September 30,
                                   30, 2003        30, 2002      Change      2003           2002       Change
Selected Consolidated Data:
- -------------------------------------------------------------------------------------------------------------
<S>                                 <C>             <C>           <C>       <C>           <C>           <C>
Interest income                     $10,262         10,760       -4.63%     $31,134       $31,999      -2.70%
- -------------------------------------------------------------------------------------------------------------
Interest expense                      2,840          3,783      -24.93%       9,574        12,009     -20.28%
- -------------------------------------------------------------------------------------------------------------
Net interest income                   7,422          6,977        6.38%      21,560        19,990       7.85%
- -------------------------------------------------------------------------------------------------------------
Provision for loan losses               435            519      -16.18%       1,277         1,711     -25.37%
- -------------------------------------------------------------------------------------------------------------
Noninterest income                    1,522          1,482        2.70%       4,395         4,397      -0.05%
- -------------------------------------------------------------------------------------------------------------
Noninterest expense                   4,704          4,380        7.40%      13,840        13,117       5.51%
- -------------------------------------------------------------------------------------------------------------
Income taxes                            894            848        5.42%       2,494         2,196      13.57%
- -------------------------------------------------------------------------------------------------------------
Net income                           $2,911          2,712        7.34%      $8,344         7,363      13.32%
- -------------------------------------------------------------------------------------------------------------
Basic net income per share            $0.83           0.78        $0.05       $2.38          2.10       $0.28
- -------------------------------------------------------------------------------------------------------------
Fully diluted net income per
  share                                 ---            ---          ---         ---           ---         ---
- -------------------------------------------------------------------------------------------------------------
Dividends per share                     ---            ---          ---         ---           ---         ---
- -------------------------------------------------------------------------------------------------------------
Dividend payout ratio                   ---            ---          ---         ---           ---         ---
- -------------------------------------------------------------------------------------------------------------
Book value per share                    ---            ---          ---      $22.56         20.80       $1.76
- -------------------------------------------------------------------------------------------------------------


Balance sheet at period-end:
- -------------------------------------------------------------------------------------------------------------
Loans, net                              ---            ---          ---    $407,027       410,388      -0.82%
- -------------------------------------------------------------------------------------------------------------
Total securities                        ---            ---          ---     232,527       196,139      18.55%
- -------------------------------------------------------------------------------------------------------------
Total deposits                          ---            ---          ---     617,770       591,578       4.43%
- -------------------------------------------------------------------------------------------------------------
Other borrowings                        ---            ---          ---          92           587     -84.33%
- -------------------------------------------------------------------------------------------------------------
Stockholders' equity                    ---            ---          ---      79,268        73,012       8.57%
- -------------------------------------------------------------------------------------------------------------
Total Assets                            ---            ---          ---     699,565       667,646       4.78%
- -------------------------------------------------------------------------------------------------------------


Daily averages:
- -------------------------------------------------------------------------------------------------------------
Loans,net                          $409,307        409,413       -0.03%    $405,903       404,668       0.31%
- -------------------------------------------------------------------------------------------------------------
Total securities                    228,794        186,411       22.74%     226,692       186,746      21.39%
- -------------------------------------------------------------------------------------------------------------
Total deposits                      616,574        583,937        5.59%     615,958       575,880       6.96%
- -------------------------------------------------------------------------------------------------------------
Other borrowings                        181            312      -41.99%         195           297     -34.34%
- -------------------------------------------------------------------------------------------------------------
Stockholders' equity                 78,143         71,104        9.90%      76,648        68,817      11.38%
- -------------------------------------------------------------------------------------------------------------
Interest-earning assets             665,040        624,619        6.47%     659,963       613,747       7.53%
- -------------------------------------------------------------------------------------------------------------
Interest-bearing liabilities        532,100        509,026        4.53%     537,631       502,712       6.95%
- -------------------------------------------------------------------------------------------------------------
Total Assets                        697,216        657,504        6.04%     695,291       647,301       7.41%
- -------------------------------------------------------------------------------------------------------------


Financial ratios: Note (1)
- -------------------------------------------------------------------------------------------------------------
Return on average assets              1.66%          1.65%         0.01       1.60%         1.52%        0.08
- -------------------------------------------------------------------------------------------------------------
Return on average equity             14.78%         15.30%        -0.52      14.55%        14.31%        0.24
- -------------------------------------------------------------------------------------------------------------
Net interest margin                     ---            ---          ---       4.83%         4.76%        0.07
- -------------------------------------------------------------------------------------------------------------
Efficiency ratio                        ---            ---          ---      49.04%        50.01%       -0.97
- -------------------------------------------------------------------------------------------------------------
Average equity to average
   assets                            11.21%         10.81%         0.39      11.02%        10.63%        0.39
- -------------------------------------------------------------------------------------------------------------
 Note (1)  Ratio change measured in bp

                                       2
                                     <PAGE>


Allowance for loan losses:
- -------------------------------------------------------------------------------------------------------------
Beginning balance                    $5,493         $4,843       13.42%      $5,092        $4,272      19.19%
- -------------------------------------------------------------------------------------------------------------
Provision for losses                    435            519      -16.18%       1,277         1,711     -25.37%
- -------------------------------------------------------------------------------------------------------------
Charge-offs                            -457           -369       23.85%      -1,059         -1067      -0.75%
- -------------------------------------------------------------------------------------------------------------
Recoveries                               31             16       93.75%         192            93     106.45%
- -------------------------------------------------------------------------------------------------------------
Ending balance                       $5,502         $5,009        9.84%      $5,502        $5,009       9.84%
- -------------------------------------------------------------------------------------------------------------


Nonperforming assets:
- -------------------------------------------------------------------------------------------------------------
Nonaccrual loans                        ---            ---          ---        $190          $368     -48.37%
- -------------------------------------------------------------------------------------------------------------
Restructured loans                      ---            ---          ---         ---           ---         ---
- -------------------------------------------------------------------------------------------------------------
Total nonperforming loans               ---            ---          ---         190           368     -48.37%
- -------------------------------------------------------------------------------------------------------------
Other real estate owned                 ---            ---          ---         940           269     249.44%
- -------------------------------------------------------------------------------------------------------------
Total nonperforming assets              ---            ---          ---      $1,130          $637      77.39%
- -------------------------------------------------------------------------------------------------------------


Asset quality ratios: Note
(2)
- -------------------------------------------------------------------------------------------------------------
Nonperforming loans to total
  loans                                 ---            ---          ---       0.05%         0.09%       -0.04
- -------------------------------------------------------------------------------------------------------------
Allowance for loan losses to
  total loans                           ---            ---          ---       1.33%         1.21%        0.12
- -------------------------------------------------------------------------------------------------------------
Allowance for loan losses
  to nonperforming loans                ---            ---          ---    2895.79%      1361.14%     1534.65
- -------------------------------------------------------------------------------------------------------------
Note (2)  Ratio change measured in bp
</TABLE>


                                       3

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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