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<SEC-DOCUMENT>0000796534-05-000001.txt : 20050124
<SEC-HEADER>0000796534-05-000001.hdr.sgml : 20050124
<ACCEPTANCE-DATETIME>20050124155751
ACCESSION NUMBER:		0000796534-05-000001
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20041231
ITEM INFORMATION:		Other Events
FILED AS OF DATE:		20050124
DATE AS OF CHANGE:		20050124

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:		05544497

	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: January 24, 2005             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 January 24, 2005, National Bankshares, Inc. issued a press release
announcing earnings for 2004. A copy of the press release is attached as Exhibit
99.1.


Exhibit
99.1    National Bankshares, Inc. Press
        Release dated January 24, 2005.



                                    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:    January 24, 2005                 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
<TEXT>
FOR IMMEDIATE RELEASE

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


                            NATIONAL BANKSHARES, INC.
                         POSTS RECORD EARNINGS FOR 2004


BLACKSBURG, VA, JANUARY 21, 2005: National Bankshares, Inc. (Nasdaq SmallCap
Market: NKSH) today announced net income for 2004 of $12.23 million, or basic
net income per share of $3.48. This represents an increase 6.89% over the
company's 2003 net income of $11.44 million, or $3.26 per share. For the year,
National Bankshares showed a return on average assets of 1.62% and a return on
average equity of 14.48%.

National Bankshares Chairman, President & CEO, James G. Rakes, commented,
"Although it is always nice to be able to report another year of record
earnings, it is especially gratifying to do this in the same year in which our
company completed the acquisition of the loans and deposits of a branch office
and the purchase of another bank. Largely because of these transactions,
National Bankshares, Inc. ended the year with total assets of $796.15 million,
an increase of 12.36% over last year. Net loans increased by 17.63% to $472.20
million from $401.43 million at the end of 2003. Measures of loan quality remain
good. We have a firm belief that there is a bright future for community banking,
and we are focused on fostering long-term relationships with our customers. With
our banks and our financial services subsidiary, we think that we are
well-positioned to offer customers a full range of products and services in a
convenient and welcoming setting."

National Bankshares, Inc. is a financial holding company with two community bank
subsidiaries, The National Bank, headquartered in Blacksburg, Virginia, and Bank
of Tazewell County, with headquarters in Tazewell, Virginia. The two banks have
25 offices throughout Southwest Virginia. The company also operates a non-bank
financial services subsidiary, National Bankshares Financial Services, Inc.,
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 about the company is available on its web site at
www.nationalbankshares.com.



                                 (tables follow)

<PAGE>

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

                                       Three months      Three months
(000's), except ratios                    ending            ending                     Year-to-date       Year-to-date
and percent data                       December 31,       December 31,                  December 31,       December 31,
Selected Consolidated Data:                2004              2003        Change            2004                2003        Change
- -----------------------------------------------------------------------------------------------------------------------------------
<S>                                       <C>              <C>            <C>           <C>                 <C>             <C>
Interest income                           $10,837          $9,947          8.95%         $41,492             $41,081         1.00%
- -----------------------------------------------------------------------------------------------------------------------------------
Interest expense                            2,963           2,678         10.64%          11,125              12,252        -9.20%
- -----------------------------------------------------------------------------------------------------------------------------------
Net interest income                         7,874           7,269          8.32%          30,367              28,829         5.33%
- -----------------------------------------------------------------------------------------------------------------------------------
Provision for loan losses                     304             414        -26.57%           1,189               1,691       -29.69%
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest income                          1,857           1,791          3.69%           7,142               6,186        15.45%
- -----------------------------------------------------------------------------------------------------------------------------------
Noninterest expense                         5,326           4,806         10.82%          20,336              18,646         9.06%
- -----------------------------------------------------------------------------------------------------------------------------------
Income taxes                                 -982            (742)        32.35%          -3,754              -3,236        16.01%
- -----------------------------------------------------------------------------------------------------------------------------------
Net income                                 $3,119          $3,098          0.68%         $12,230             $11,442         6.89%
- -----------------------------------------------------------------------------------------------------------------------------------
Basic net income per share                  $0.89           $0.88          $0.01           $3.48               $3.26         $0.22
- -----------------------------------------------------------------------------------------------------------------------------------
Fully diluted net income per share            ---             ---            ---             ---                 ---           ---
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends per share                           ---             ---            ---             ---                 ---           ---
- -----------------------------------------------------------------------------------------------------------------------------------
Dividend payout ratio                         ---             ---            ---             ---                 ---           ---
- -----------------------------------------------------------------------------------------------------------------------------------
Book value per share                          ---             ---            ---          $24.75               22.94         $1.81
- -----------------------------------------------------------------------------------------------------------------------------------


Balance sheet at period-end:
- -----------------------------------------------------------------------------------------------------------------------------------
Loans, net                                    ---             ---            ---        $472,199            $401,428        17.63%
- -----------------------------------------------------------------------------------------------------------------------------------
Total securities                              ---             ---            ---         250,708             230,154         8.93%
- -----------------------------------------------------------------------------------------------------------------------------------
Total deposits                                ---             ---            ---         705,932             625,378        12.88%
- -----------------------------------------------------------------------------------------------------------------------------------
Other borrowings                              ---             ---            ---             297                 135       120.00%
- -----------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity                          ---             ---            ---          87,088              80,641         7.99%
- -----------------------------------------------------------------------------------------------------------------------------------
Total Assets                                  ---             ---            ---         796,154             708,560        12.36%
- -----------------------------------------------------------------------------------------------------------------------------------


Daily averages:
- -----------------------------------------------------------------------------------------------------------------------------------
Loans,net                                 469,159        $405,082         15.82%        $438,761            $405,696         8.15%
- -----------------------------------------------------------------------------------------------------------------------------------
Total securities                          254,778         235,914          8.00%         250,305             229,004         9.30%
- -----------------------------------------------------------------------------------------------------------------------------------
Total deposits                            698,177         619,365         12.72%         665,627             616,823         7.91%
- -----------------------------------------------------------------------------------------------------------------------------------
Other borrowings                              712             187        280.75%             531                 194       173.71%
- -----------------------------------------------------------------------------------------------------------------------------------
Stockholders' equity                       87,990          80,052          9.92%          84,479              77,486         9.02%
- -----------------------------------------------------------------------------------------------------------------------------------
Interest-earning assets                   742,079         669,654         10.82%         711,789             664,543         7.11%
- -----------------------------------------------------------------------------------------------------------------------------------
Interest-bearing liabilities              594,542         536,140         10.89%         572,838             537,257         6.62%
- -----------------------------------------------------------------------------------------------------------------------------------
Total Assets                              789,921         702,183         12.50%         753,730             697,012         8.14%
- -----------------------------------------------------------------------------------------------------------------------------------


Financial ratios: Note (1)
- -----------------------------------------------------------------------------------------------------------------------------------
Return on average assets                    1.57%           1.75%          -0.18           1.62%               1.64%         -0.02
- -----------------------------------------------------------------------------------------------------------------------------------
Return on average equity                   14.10%          15.35%          -1.25          14.48%              14.77%         -0.29
- -----------------------------------------------------------------------------------------------------------------------------------
Net interest margin                         4.62%           4.73%            ---           4.70%               4.82%         -0.12
- -----------------------------------------------------------------------------------------------------------------------------------
Efficiency ratio                              ---             ---            ---          50.21%              49.03%          1.18
- -----------------------------------------------------------------------------------------------------------------------------------
Average equity to average assets           11.14%          11.40%          -0.26          11.21%              11.12%          0.09
- -----------------------------------------------------------------------------------------------------------------------------------
 Note (1)  Ratio change measured in bp


Allowance for loan losses:
- -----------------------------------------------------------------------------------------------------------------------------------
Beginning balance                          $5,835          $5,502          6.05%          $5,369              $5,092         5.44%
- -----------------------------------------------------------------------------------------------------------------------------------
Provision for losses                          304             414        -26.57%           1,189               1,691       -29.69%
- -----------------------------------------------------------------------------------------------------------------------------------
Charge-offs                                  -459            -601        -23.63%          -1,550              -1,660        -6.63%
- -----------------------------------------------------------------------------------------------------------------------------------
Recoveries                                     49              54         -9.26%             223                 246        -9.35%
- -----------------------------------------------------------------------------------------------------------------------------------
Acquisition of C.N.B.                           0             ---        100.00%             498                 ---       100.00%
- -----------------------------------------------------------------------------------------------------------------------------------
Ending balance                             $5,729          $5,369          6.71%          $5,729              $5,369         6.71%
- -----------------------------------------------------------------------------------------------------------------------------------


Nonperforming assets:
- -----------------------------------------------------------------------------------------------------------------------------------
Nonaccrual loans                              ---             ---            ---            $394                $354        11.30%
- -----------------------------------------------------------------------------------------------------------------------------------
Restructured loans                            ---             ---            ---             ---                 ---           ---
- -----------------------------------------------------------------------------------------------------------------------------------
Total nonperforming loans                     ---             ---            ---             394                 354        11.30%
- -----------------------------------------------------------------------------------------------------------------------------------
Other real estate owned                       ---             ---            ---             895               1,663       -46.18%
- -----------------------------------------------------------------------------------------------------------------------------------
Total nonperforming assets                    ---             ---            ---          $1,289              $2,017       -36.09%
- -----------------------------------------------------------------------------------------------------------------------------------


Asset quality ratios: Note (2)
- -----------------------------------------------------------------------------------------------------------------------------------
Nonperforming loans to total loans            ---             ---            ---           0.08%               0.09%          0.00
- -----------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses to total loans      ---             ---            ---           1.20%               1.32%         -0.12
- -----------------------------------------------------------------------------------------------------------------------------------
Allowance for loan losses
  to nonperforming loans                      ---             ---            ---        1454.06%            1516.67%        -62.61
- -----------------------------------------------------------------------------------------------------------------------------------
 Note (2)  Ratio change measured in bp
</TABLE>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
