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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000796534-04-000022.txt : 20041019
<SEC-HEADER>0000796534-04-000022.hdr.sgml : 20041019
<ACCEPTANCE-DATETIME>20041019095038
ACCESSION NUMBER:		0000796534-04-000022
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040930
ITEM INFORMATION:		Other Events
FILED AS OF DATE:		20041019
DATE AS OF CHANGE:		20041019

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:		041084365

	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 15, 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 October 15, 2004, National Bankshares, Inc. issued a press release
announcing earnings for the third quarter of 2004. A copy of the press release
is attached as Exhibit 99.1.


Exhibit
99.1    National Bankshares, Inc. Press
        Release dated July 19, 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.


Date:  October 15, 2004           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>2
<FILENAME>ex99.txt
<DESCRIPTION>PRESS RELEASE
<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 THIRD QUARTER EARNINGS


BLACKSBURG, VA, OCTOBER 15, 2004: National Bankshares, Inc. (NASDAQ SmallCap
Market: NKSH) today reported net income of nearly $3.22 million, or basic net
income per share of $0.91 for the third quarter ended September 30. Year-to-date
net income is $9.11 million, an increase of 9.19% over the same period in 2004.
Total assets at the end of the third quarter were $782.61 million, up by 11.87%
over last September 30. A significant percentage of asset growth is attributable
to purchases completed by the Company in the first half of the year.

        National Bankshares' Chairman, President & CEO James G. Rakes commented,
"Performance is good to this point in the year. Both net interest income and
noninterest income totals have improved over 2003, and we continue to focus on
controllable expense categories. In these unsettled economic times, we believe
that the basics of conveniently delivering a wide range of financial products
and services to our customers in a professional and friendly manner should help
insure long-term success."

        National Bankshares, Inc. is the parent company of The National Bank,
with headquarters in Blacksburg, Virginia, and of Bank of Tazewell County of
Tazewell, Virginia. The two banks have 25 office locations throughout Southwest,
Virginia. The Company also operates a non-bank subsidiary, National Bankshares
Financial Services, Inc., which does business as National Bankshares Financial
Services and National Bankshares Insurance Services. National Bankshares, Inc.
stock trades on the Nasdaq Stock Market with the symbol "NKSH". Additional
information is available at www.nationalbankshares.com.

                            (unaudited tables follow)


<PAGE>


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

(000's), except ratios and             Three months       Three months
percent data                              ending             ending                    Year-to-date     Year-to-date
                                       September 30,      September 30,                September 30,    September 30,
Selected Consolidated Data:                2004               2003        Change            2004            2003        Change
- --------------------------------------------------------------------------------------------------------------------------------
<S>                                        <C>                <C>          <C>            <C>                <C>          <C>
Interest income                            $10,841            $10,262      5.64%          $30,655            $31,134     -1.54%
- --------------------------------------------------------------------------------------------------------------------------------
Interest expense                             2,904              2,840      2.25%            8,162              9,574    -14.75%
- --------------------------------------------------------------------------------------------------------------------------------
Net interest income                          7,937              7,422      6.94%           22,493             21,560      4.33%
- --------------------------------------------------------------------------------------------------------------------------------
Provision for loan losses                      293                435    -32.64%              885              1,277    -30.70%
- --------------------------------------------------------------------------------------------------------------------------------
Noninterest income                           1,865              1,522     22.54%            5,285              4,395     20.25%
- --------------------------------------------------------------------------------------------------------------------------------
Noninterest expense                          5,275              4,704     12.14%           15,010             13,840      8.45%
- --------------------------------------------------------------------------------------------------------------------------------
Income taxes                                -1,019               (894)    13.98%           -2,772             -2,494     11.15%
- --------------------------------------------------------------------------------------------------------------------------------
Net income                                  $3,215             $2,911     10.44%           $9,111             $8,344      9.19%
- --------------------------------------------------------------------------------------------------------------------------------
Basic net income per share                   $0.91              $0.83      $0.08            $2.59              $2.38      $0.21
- --------------------------------------------------------------------------------------------------------------------------------
Fully diluted net income per share             ---                ---        ---              ---                ---        ---
- --------------------------------------------------------------------------------------------------------------------------------
Dividends per share                            ---                ---        ---              ---                ---        ---
- --------------------------------------------------------------------------------------------------------------------------------
Dividend payout ratio                          ---                ---        ---              ---                ---        ---
- --------------------------------------------------------------------------------------------------------------------------------
Book value per share                           ---                ---        ---           $24.81              22.56      $2.25
- --------------------------------------------------------------------------------------------------------------------------------


Balance sheet at period-end:
- --------------------------------------------------------------------------------------------------------------------------------
Loans, net                                     ---                ---        ---         $466,256           $407,027     14.55%
- --------------------------------------------------------------------------------------------------------------------------------
Total securities                               ---                ---        ---          255,841            232,527     10.03%
- --------------------------------------------------------------------------------------------------------------------------------
Total deposits                                 ---                ---        ---          690,291            617,770     11.74%
- --------------------------------------------------------------------------------------------------------------------------------
Other borrowings                               ---                ---        ---            2,214                 92   2306.52%
- --------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity                           ---                ---        ---           87,270             79,268     10.09%
- --------------------------------------------------------------------------------------------------------------------------------
Total Assets                                   ---                ---        ---          782,613            699,565     11.87%
- --------------------------------------------------------------------------------------------------------------------------------


Daily averages:
- --------------------------------------------------------------------------------------------------------------------------------
Loans,net                                 $465,806           $409,307     13.80%         $428,552           $405,903      5.58%
- --------------------------------------------------------------------------------------------------------------------------------
Total securities                           256,727            228,794     12.21%          248,868            226,692      9.78%
- --------------------------------------------------------------------------------------------------------------------------------
Total deposits                             697,119            616,574     13.06%          654,814            615,958      6.31%
- --------------------------------------------------------------------------------------------------------------------------------
Other borrowings                             1,086                181    500.00%              468                195    140.00%
- --------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity                        83,919             78,143      7.39%           83,372             76,648      8.77%
- --------------------------------------------------------------------------------------------------------------------------------
Interest-earning assets                    736,198            665,040     10.70%          701,684            659,963      6.32%
- --------------------------------------------------------------------------------------------------------------------------------
Interest-bearing liabilities               603,017            532,100     13.33%          565,674            537,631      5.22%
- --------------------------------------------------------------------------------------------------------------------------------
Total Assets                               786,220            697,216     12.77%          741,743            695,291      6.68%
- --------------------------------------------------------------------------------------------------------------------------------

Financial ratios: Note (1)
- --------------------------------------------------------------------------------------------------------------------------------
Return on average assets                     1.63%              1.66%      -0.03            1.64%              1.60%       0.04
- --------------------------------------------------------------------------------------------------------------------------------
Return on average equity                    15.24%             14.78%       0.46           14.60%             14.55%       0.05
- --------------------------------------------------------------------------------------------------------------------------------
Net interest margin                          4.70%              4.86%        ---            4.73%              4.83%      -0.10
- --------------------------------------------------------------------------------------------------------------------------------
Efficiency ratio                               ---                ---        ---           50.01%             49.04%       0.97
- --------------------------------------------------------------------------------------------------------------------------------
Average equity to average assets            10.67%             11.21%      -0.53           11.24%             11.02%       0.22
- --------------------------------------------------------------------------------------------------------------------------------
 Note (1)  Ratio change measured in bp


Allowance for loan losses:
- --------------------------------------------------------------------------------------------------------------------------------
Beginning balance                           $5,886             $5,493      7.15%           $5,369             $5,092      5.44%
- --------------------------------------------------------------------------------------------------------------------------------
Provision for losses                           293                435    -32.64%              885              1,277    -30.70%
- --------------------------------------------------------------------------------------------------------------------------------
Charge-offs                                   -411               -457    -10.07%           -1,091             -1,059      3.02%
- --------------------------------------------------------------------------------------------------------------------------------
Recoveries                                      67                 31    116.13%              174                192     -9.38%
- --------------------------------------------------------------------------------------------------------------------------------
Acquisition of C.N.B.                            0                ---    100.00%              498                ---    100.00%
- --------------------------------------------------------------------------------------------------------------------------------
Ending balance                              $5,835             $5,502      6.05%           $5,835             $5,502      6.05%
- --------------------------------------------------------------------------------------------------------------------------------


Nonperforming assets:
- --------------------------------------------------------------------------------------------------------------------------------
Nonaccrual loans                               ---                ---        ---             $478               $190    151.58%
- --------------------------------------------------------------------------------------------------------------------------------
Restructured loans                             ---                ---        ---              ---                ---        ---
- --------------------------------------------------------------------------------------------------------------------------------
Total nonperforming loans                      ---                ---        ---              478                190    151.58%
- --------------------------------------------------------------------------------------------------------------------------------
Other real estate owned                        ---                ---        ---            1,010                940      7.45%
- --------------------------------------------------------------------------------------------------------------------------------
Total nonperforming assets                     ---                ---        ---           $1,488             $1,130     31.68%
- --------------------------------------------------------------------------------------------------------------------------------


Asset quality ratios: Note (2)
- --------------------------------------------------------------------------------------------------------------------------------
Nonperforming loans to total loans             ---                ---        ---            0.10%              0.05%       0.06
- --------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses to total loans       ---                ---        ---            1.24%              1.33%      -0.09
- --------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses
  to nonperforming loans                       ---                ---        ---         1220.71%           2895.79%   -1675.08
- --------------------------------------------------------------------------------------------------------------------------------
 Note (2)  Ratio change measured in bp
</TABLE>

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