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 :
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	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