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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000796534-07-000013.txt : 20070419
<SEC-HEADER>0000796534-07-000013.hdr.sgml : 20070419
<ACCEPTANCE-DATETIME>20070419170203
ACCESSION NUMBER:		0000796534-07-000013
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070331
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070419
DATE AS OF CHANGE:		20070419

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:		07776615

	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>
                     Microsoft Word 11.0.5604;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 19, 2007               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 2.02.   RESULTS OF OPERATIONS, FINANCIAL STATEMENTS AND EXHIBITS

         On April 19, 2007, National Bankshares, Inc. issued a press release
announcing its financial results for the first quarter ended March 31, 2007. A
copy of the press release is attached as Exhibit 99.1.


ITEM 9.01.   FINANCIAL STATEMENTS AND EXHIBITS

(a)      Exhibits

99.1     National Bankshares, Inc. Press Release dated April 19, 2007.



                                    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:    April 19, 2007                     By:   /s/ JAMES G. RAKES
      --------------------                        -----------------------------
                                                  James G. Rakes
                                                  Chairman, President and CEO






                                Page 2 of 2 Pages


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>press_release.txt
<DESCRIPTION>FIRST QUARTER PRESS RELEASE
<TEXT>
FOR IMMEDIATE RELEASE


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


                           NATIONAL BANKSHARES, INC.
                     ANNOUNCES HIGHER FIRST QUARTER EARNINGS


BLACKSBURG, VA, APRIL 19, 2007:  National Bankshares, Inc. (NASDAQ Capital
Market:  NKSH) today announced first quarter net income of nearly $3.12 million,
which is 3.76% higher than the $3 million earned in the first quarter of 2006.
This translates to basic net income per share of $0.45, as compared with $0.43
for the same period last year.  At March 31, National Bankshares, Inc. had total
assets of nearly $881.92 million, up by 4% over the total on March 31, 2006.

        In announcing first quarter earnings, Chairman, President & CEO James G.
Rakes said, "It is nice to have a positive start to the year. We have been able
to offset pressure on net interest income by keeping controllable costs in check
and with a healthy increase in noninterest income. In historical terms and with
reference to our peers, the quality of the loan portfolio is sound, and the
allowance for loan losses remains at a good level." Mr. Rakes continued, "At
National Bankshares, we are committed to community banking. We focus on what we
can do best, that is to offer a full range of financial products and services
with a personal approach."

        National Bankshares, Inc. is a financial holding company with
headquarters in Blacksburg, Virginia. It is the parent company of National Bank,
a community bank that operates from 26 offices throughout Southwest Virginia.
The company also has 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 and percent data

Three months ending                              March 31, 2007           March 31, 2006                Change

Selected Consolidated Data :
- ------------------------------------------------------------------------------------------------------------------
<S>                                                     <C>                   <C>                            <C>
Interest income                                         $12,530               $11,583                        8.18%
Interest expense                                          5,416                 4,238                       27.80%
Net interest income                                       7,114                 7,345                       -3.14%
Provision for loan losses                                    -3                    17                     -117.65%
Trust income                                                373                   380                       -1.84%
Other noninterest income                                  1,806                 1,679                        7.56%
Salary and benefits                                       2,841                 2,911                       -2.40%
Occupancy expense                                           485                   533                       -9.01%
Amortization of intangibles                                 284                   284                        0.00%
Other noninterest expense                                 1,647                 1,771                       -7.00%
Income taxes                                               -923                  -885                        4.29%
Net income                                               $3,116                $3,003                        3.76%
Basic net income per share                                $0.45                 $0.43                        $0.02
- -------------------------------------------------------------------------------------------------------------------

Daily averages:
- -------------------------------------------------------------------------------------------------------------------
Gross loans                                            $503,040              $491,410                        2.37%
Loans,net                                               496,839               485,031                        2.43%
Total securities                                        284,789               272,644                        4.45%
Total deposits                                          762,817               741,941                        2.81%
Other borrowings                                             73                   146                      -50.00%
Stockholders' equity                                     97,927                93,417                        4.83%
Cash and due from banks                                  14,684                17,149                      -14.37%
Interest-earning assets                                 807,632               777,400                        3.89%
Interest-bearing liabilities                            659,908               630,151                        4.72%
Intangible assets                                        15,860                16,988                       -6.64%
Total assets                                            867,945               839,478                        3.39%
- -------------------------------------------------------------------------------------------------------------------

Financial ratios: Note (1)
- -------------------------------------------------------------------------------------------------------------------
Return on average assets                                  1.46%                 1.45%                         0.01
Return on average equity                                 12.90%                13.04%                        -0.14
Net interest margin                                       3.96%                 4.22%                        -0.26
Average equity to average assets                         11.28%                11.13%                         0.15
- -------------------------------------------------------------------------------------------------------------------
 Note (1)  Ratio change measured in bp

Allowance for loan losses:
- -------------------------------------------------------------------------------------------------------------------
Beginning balance                                        $5,157                $5,449                       -5.36%
Provision for losses                                         -3                    17                     -117.65%
Charge-offs                                                -136                   -87                       56.32%
Recoveries                                                   27                    39                      -30.77%
Ending balance                                           $5,045                $5,418                       -6.88%
- -------------------------------------------------------------------------------------------------------------------


Year to Date                              March 31, 2007           March 31, 2006                Change

Selected Consolidated Data :
- -------------------------------------------------------------------------------------------------------------------
Interest income                                         $12,530               $11,583                        8.18%
Interest expense                                          5,416                 4,238                       27.80%
Net interest income                                       7,114                 7,345                       -3.14%
Provision for loan losses                                    -3                    17                     -117.65%
Trust income                                                373                   380                       -1.84%
Other noninterest income                                  1,806                 1,679                        7.56%
Salary and benefits                                       2,841                 2,911                       -2.40%
Occupancy expense                                           485                   533                       -9.01%
Amortization of intangibles                                 284                   284                        0.00%
Other noninterest expense                                 1,647                 1,771                       -7.00%
Income taxes                                               -923                  -885                        4.29%
Net income                                               $3,116                $3,003                        3.76%
Basic net income per share                                $0.45                 $0.43                        $0.02
Fully diluted net income per share                        $0.45                 $0.43                        $0.02
Dividends per share                                           0                     0                        $0.00
Dividend payout ratio                                      0.00                  0.00                        $0.00
Book value per share                                     $14.30                 13.44                        $0.86

Balance sheet at period-end:
- -------------------------------------------------------------------------------------------------------------------
Gross loans                                            $504,278              $490,757                        2.76%
Loans, net                                             $498,129              $484,391                        2.84%
Total securities                                        288,005               275,828                        4.41%
Cash and due From                                        13,626                18,270                      -25.42%
Total deposits                                          774,264               749,222                        3.34%
Other borrowings                                             71                    83                      -14.46%
Stockholders' equity                                     99,823                94,260                        5.90%
Intangible assets                                        15,692                16,829                       -6.76%
Total assets                                            881,915               847,956                        4.00%
- -------------------------------------------------------------------------------------------------------------------

Daily averages:
- -------------------------------------------------------------------------------------------------------------------
Gross loans                                            $503,040              $491,410                        2.37%
Loans,net                                               496,839               485,031                        2.43%
Total securities                                        284,789               272,644                        4.45%
Total deposits                                          762,817               741,941                        2.81%
Other borrowings                                             73                   146                      -50.00%
Stockholders' equity                                     97,927                93,417                        4.83%
Cash and due from                                        14,684                17,149                      -14.37%
Interest-earning assets                                 807,632               777,400                        3.89%
Interest-bearing liabilities                            659,908               630,151                        4.72%
Intangible assets                                        15,860                16,988                       -6.64%
Total assets                                            867,945               839,478                        3.39%
- -------------------------------------------------------------------------------------------------------------------

Financial ratios: Note (1)
- -------------------------------------------------------------------------------------------------------------------
Return on average assets                                  1.46%                 1.45%                         0.01
Return on average equity                                 12.90%                13.04%                        -0.14
Net interest margin                                       3.96%                 4.22%                        -0.26
Efficiency ratio                                         52.12%                54.17%                        -2.05
Average equity to average assets                         11.28%                11.13%                         0.15
- -------------------------------------------------------------------------------------------------------------------
 Note (1)  Ratio change measured in bp

Allowance for loan losses:
- -------------------------------------------------------------------------------------------------------------------
Beginning balance                                        $5,157                $5,449                       -5.36%
Provision for losses                                         -3                    17                     -117.65%
Charge-offs                                                -136                   -87                       56.32%
Recoveries                                                   27                    39                      -30.77%
Ending balance                                           $5,045                $5,418                       -6.88%
- -------------------------------------------------------------------------------------------------------------------

Nonperforming assets:
- -------------------------------------------------------------------------------------------------------------------
Nonaccrual loans                                          1,132                   $92                          ---
Restructured loans                                          ---                   ---                          ---
Total nonperforming loans Note (2)                        1,132                    92                          ---
Other real estate owned                                     251                   390                      -35.64%
Total nonperforming assets                               $1,383                  $482                      186.93%
- -------------------------------------------------------------------------------------------------------------------

Asset quality ratios: Note (3)
- -------------------------------------------------------------------------------------------------------------------
Nonperforming loans to total loans                       0.225%                 0.02%                     1084.50%
Allowance for loan losses to total loans                  1.00%                 1.11%                      -10.72%
- -------------------------------------------------------------------------------------------------------------------
Allowance for loan losses
to nonperforming loans                                  445.76%              5889.13%                      -92.43%
- -------------------------------------------------------------------------------------------------------------------
Note (2) Loans 90 days past due or more not included
Note (3) Ratio change measured in bp

</TABLE>

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