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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000796534-04-000008.txt : 20040414
<SEC-HEADER>0000796534-04-000008.hdr.sgml : 20040414
<ACCEPTANCE-DATETIME>20040414122427
ACCESSION NUMBER:		0000796534-04-000008
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040331
ITEM INFORMATION:		Other events
FILED AS OF DATE:		20040414

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:		04732245

	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: April 14, 2004                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
                                                   --------------



                                Page 1 of 2 Pages
<PAGE>


ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE

        On April 14, 2004, National Bankshares, Inc. issued a press release
announcing the Company's earnings for the first quarter of 2004. A copy of the
press release is attached as Exhibit 99.1.


Exhibit
99.1    National Bankshares, Inc. press Release dated April 14, 2004.



                                    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>ex99-1.txt
<TEXT>
FOR IMMEDIATE RELEASE

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


                            NATIONAL BANKSHARES, INC.
                        ANNOUNCES FIRST QUARTER EARNINGS


BLACKSBURG, VA, APRIL 14, 2004: National Bankshares, Inc. (Nasdaq SmallCap
Market: NKSH) today announced first quarter net income of $2.96 million, or
basic net income of $0.84 per share. This is a 12.46% increase over the $2.63
million, or $0.75 per share, that was earned in the first quarter of 2003. At
March 31, National Bankshares, Inc., the parent company of the National Bank of
Blacksburg, Bank of Tazewell County and National Bankshares Financial Services,
had total assets of $708.14 million, slightly higher than the $699.74 million on
March 31, 2003.

        In making the earnings announcement, Chairman, President & CEO James G.
Rakes said, "We continue to see the effects of a low interest rate environment
on the interest expense category, and this has translated into solid earnings.
In addition we have been pleased with the nice increase in non-interest income.
At the same time we have worked to control non-interest expense." Mr. Rakes
continued, "In the next few days we anticipate closing Bank of Tazewell County's
previously announced purchase of loans and assumption of deposits of FNB
Southeast's Richlands, Virginia branch office. These loans and deposits will be
serviced by BTC's existing Richlands Office. Later in the second quarter,
subject to regulatory approval, The National Bank expects to purchase Community
National Bank in Pulaski, Virginia. We look forward to welcoming the new
customers who will be banking with us as a result of these transactions."

        National Bankshares, Inc. is a financial holding company with
headquarters in Blacksburg, Virginia. It has two community bank subsidiaries,
The National Bank, headquartered in Blacksburg, and Bank of Tazewell County,
with its main office in Tazewell, Virginia. The two banks serve Southwest
Virginia with a total of 24 offices. The company also operates a non-bank
subsidiary, National Bankshares Financial Services, Inc., which does business as
National Bankshares Investment Services and National Bankshares Insurance
Services. National Bankshares, Inc. stock trades on the Nasdaq Stock Market
under the symbol "NKSH". Additional information is available on the company's
web site at www.nationalbankshares.com.


                            (unaudited tables follow)
<PAGE>

<TABLE>
<CAPTION>
National Bankshares, Inc. And Subsidiaries

(000's), except ratios        Three months   Three months
and per share data               ending         ending                  Year-to-date  Year-to-date
                                March 31,      March 31,                  March 31,     March 31,
Selected Consolidated Data:       2004           2003         Change        2004          2003        Change
- -------------------------------------------------------------------------------------------------------------
<S>                               <C>           <C>           <C>          <C>          <C>            <C>
Interest income                   $9,797        10,476       -6.48%        $9,797       $10,476       -6.48%
- -------------------------------------------------------------------------------------------------------------
Interest expense                   2,599         3,478      -25.27%         2,599         3,478      -25.27%
- -------------------------------------------------------------------------------------------------------------
Net interest income                7,198         6,998        2.86%         7,198         6,998        2.86%
- -------------------------------------------------------------------------------------------------------------
Provision for loan losses            288           440      -34.55%           288           440      -34.55%
- -------------------------------------------------------------------------------------------------------------
Noninterest income                 1,739         1,369       27.03%         1,739         1,369       27.03%
- -------------------------------------------------------------------------------------------------------------
Noninterest expense                4,820         4,567        5.54%         4,820         4,567        5.54%
- -------------------------------------------------------------------------------------------------------------
Income taxes                         869           728       19.37%           869           728       19.37%
- -------------------------------------------------------------------------------------------------------------
Net income                        $2,960         2,632       12.46%        $2,960         2,632       12.46%
- -------------------------------------------------------------------------------------------------------------
Basic net income per share         $0.84         $0.75        $0.09         $0.84         $0.75        $0.09
- -------------------------------------------------------------------------------------------------------------
Fully diluted net income per share   ---           ---          ---           ---           ---          ---
- -------------------------------------------------------------------------------------------------------------
Dividends per share                  ---           ---          ---           ---           ---          ---
- -------------------------------------------------------------------------------------------------------------
Dividend payout ratio                ---           ---          ---           ---           ---          ---
- -------------------------------------------------------------------------------------------------------------
Book value per share                 ---           ---          ---        $24.11         21.57        $2.54
- -------------------------------------------------------------------------------------------------------------


Balance sheet at period-end:
- -------------------------------------------------------------------------------------------------------------
Loans, net                           ---           ---          ---      $406,894       404,685        0.55%
- -------------------------------------------------------------------------------------------------------------
Total securities                     ---           ---          ---       246,795       227,745        8.36%
- -------------------------------------------------------------------------------------------------------------
Total deposits                       ---           ---          ---       619,920       620,773       -0.14%
- -------------------------------------------------------------------------------------------------------------
Other borrowings                     ---           ---          ---            77           178      -56.74%
- -------------------------------------------------------------------------------------------------------------
Stockholders' equity                 ---           ---          ---        84,754        75,726       11.92%
- -------------------------------------------------------------------------------------------------------------
Total Assets                         ---           ---          ---       708,142       699,742        1.20%
- -------------------------------------------------------------------------------------------------------------


Daily averages:
- -------------------------------------------------------------------------------------------------------------
Loans,net                       $403,213       400,899        0.58%      $403,213       400,899        0.58%
- -------------------------------------------------------------------------------------------------------------
Total securities                 240,522       223,158        7.78%       240,522       223,158        7.78%
- -------------------------------------------------------------------------------------------------------------
Total deposits                   623,655       610,397        2.17%       623,655       610,397        2.17%
- -------------------------------------------------------------------------------------------------------------
Other borrowings                     135           239      -43.51%           135           239      -43.51%
- -------------------------------------------------------------------------------------------------------------
Stockholders' equity              83,290        74,614       11.63%        83,288        74,614       11.63%
- -------------------------------------------------------------------------------------------------------------
Interest-earning assets          676,478       655,048        3.27%       676,478       655,048        3.27%
- -------------------------------------------------------------------------------------------------------------
Interest-bearing liabilities     540,307       536,915        0.63%       540,307       536,915        0.63%
- -------------------------------------------------------------------------------------------------------------
Total Assets                     710,067       687,922        3.22%       710,067       687,922        3.22%
- -------------------------------------------------------------------------------------------------------------


Financial ratios: Note (1)
- -------------------------------------------------------------------------------------------------------------
Return on average assets           1.68%         1.55%         0.13         1.68%         1.55%         0.13
- -------------------------------------------------------------------------------------------------------------
Return on average equity          14.29%        14.31%        -0.02        14.29%        14.31%        -0.02
- -------------------------------------------------------------------------------------------------------------
Net interest margin                4.77%         4.77%          ---         4.77%         4.77%         0.00
- -------------------------------------------------------------------------------------------------------------
Efficiency ratio                     ---           ---          ---        49.70%        50.30%        -0.60
- -------------------------------------------------------------------------------------------------------------
Average equity to average assets  11.73%        10.85%         0.88        11.73%        10.85%         0.88
- -------------------------------------------------------------------------------------------------------------
 Note (1)  Ratio change measured in bp


Allowance for loan losses:
- -------------------------------------------------------------------------------------------------------------
Beginning balance                 $5,369        $5,092        5.44%        $5,369        $5,092        5.44%
- -------------------------------------------------------------------------------------------------------------
Provision for losses                 288           440      -34.55%           288           440      -34.55%
- -------------------------------------------------------------------------------------------------------------
Charge-offs                         -285          -269        5.95%          -285          -269        5.95%
- -------------------------------------------------------------------------------------------------------------
Recoveries                            48           127      -62.20%            48           127      -62.20%
- -------------------------------------------------------------------------------------------------------------
Ending balance                    $5,420        $5,390        0.56%        $5,420        $5,390        0.56%
- -------------------------------------------------------------------------------------------------------------


Nonperforming assets:
- -------------------------------------------------------------------------------------------------------------
Nonaccrual loans                     ---           ---          ---          $324          $137      136.50%
- -------------------------------------------------------------------------------------------------------------
Restructured loans                   ---           ---          ---           ---           ---          ---
- -------------------------------------------------------------------------------------------------------------
Total nonperforming loans            ---           ---          ---           324           137      136.50%
- -------------------------------------------------------------------------------------------------------------
Other real estate owned              ---           ---          ---         1,470           751       95.74%
- -------------------------------------------------------------------------------------------------------------
Total nonperforming assets           ---           ---          ---        $1,794          $888      102.03%
- -------------------------------------------------------------------------------------------------------------


Asset quality ratios: Note (2)
- -------------------------------------------------------------------------------------------------------------
Nonperforming loans to total loans   ---           ---          ---         0.08%         0.03%         0.05
- -------------------------------------------------------------------------------------------------------------
Allowance for loan losses to
 total loans                         ---           ---          ---         1.31%         1.31%         0.00
- -------------------------------------------------------------------------------------------------------------
Allowance for loan losses
  to nonperforming loans             ---           ---          ---      1672.84%      3934.31%     -2261.47
- -------------------------------------------------------------------------------------------------------------
 Note (2)  Ratio change measured in bp

</TABLE>





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