National Bankshares, Inc. And Subsidiaries
(000's), except ratios and percent data
Three months ending
December 31, 2006
December 31, 2005
Change
 
Selected Consolidated Data :
Interest income
$12,427
$11,594
7.18%
Interest expense
5,261
4,095
28.47%
Net interest income
7,166
7,499
-4.44%
Provision for loan losses
9
10
-10.00%
Trust income
469
336
39.58%
Other noninterest income
1,830
1,690
8.28%
Salary and benefits
2,760
2,731
1.06%
Occupancy expense
478
481
-0.62%
Amortization of intangibles
284
285
-0.35%
Other noninterest expense
1,852
1,742
6.31%
Income taxes
-881
-1,051
-16.18%
Net income
$3,201
$3,225
-0.74%
Basic net income per share
$0.46
$0.46
$0.00
Daily averages:
Gross loans
$498,366
$495,920
0.49%
Loans,net
492,104
489,479
0.54%
Total securities
272,644
263,887
3.32%
Total deposits
751,639
736,500
2.06%
Other borrowings
0
177
-100.00%
Stockholders' equity
97,741
92,426
5.75%
Cash and due from 
15,795
17,430
-9.38%
Interest-earning assets
792,919
780,753
1.56%
Interest-bearing liabilities
646,673
622,233
3.93%
Intangible assets
16,138
17,444
-7.49%
Total assets
854,040
832,999
2.53%
Financial ratios: Note (1)
Return on average assets
1.49%
1.54%
-0.05
Return on average equity
12.99%
13.84%
-0.85
Net interest margin
4.06%
4.17%
-0.11
Average equity to average assets
11.44%
11.10%
0.35
 Note (1)  Ratio change measured in bp
Allowance for loan losses:
Beginning balance
$5,252
$5,620
-6.55%
Provision for losses
9
10
-10.00%
Charge-offs
-114
-289
-60.55%
Recoveries
10
108
-90.74%
Ending balance
$5,157
$5,449
-5.36%
Year to Date
December 31, 2006
December 31, 2005
Change
 
Selected Consolidated Data :
Interest income
$47,901
$45,380
5.56%
Interest expense
18,564
14,180
30.92%
Net interest income
29,337
31,200
-5.97%
Provision for loan losses
49
567
-91.36%
Trust income
1,528
1,398
9.30%
Other noninterest income
7,274
6,215
17.04%
Salary and benefits
11,466
11,265
1.78%
Occupancy expense
1,957
1,931
1.35%
Amortization of intangibles
1,137
1,117
1.79%
Other noninterest expense
7,110
7,585
-6.26%
Income taxes
-3,788
-3,924
-3.47%
Net income
$12,632
$12,424
1.67%
Basic net income per share
$1.80
$1.77
$0.03
Fully diluted net income per share
$1.80
$1.76
$0.04
Dividends per share
.73
.71
$0.02
Dividend payout ratio
40.44
40.17
$0.27
Book value per share
$13.86
13.10
$0.76
Balance sheet at period-end:
Gross loans
$501,702
$493,524
1.66%
Loans, net
$495,486
$487,162
1.71%
Total securities
285,489
272,541
4.75%
Cash and due From
15,283
20,115
-24.02%
Total deposits
764,692
745,649
2.55%
Other borrowings
73
357
-79.55%
Stockholders' equity
96,755
91,939
5.24%
Intangible assets
15,976
17,113
-6.64%
Total assets
868,203
841,498
3.17%
Daily averages:
Gross loans
$494,945
$493,668
0.26%
Loans,net
488,624
487,130
0.31%
Total securities
271,066
261,743
3.56%
Total deposits
741,071
724,015
2.36%
Other borrowings
53
420
-87.38%
Stockholders' equity
94,194
90,470
4.12%
Cash and due from 
15,968
15,976
-0.05%
Interest-earning assets
779,018
769,931
1.18%
Interest-bearing liabilities
632,514
610,534
3.60%
Intangible assets
16,025
17,500
-8.43%
Total assets
840,080
819,341
2.53%
Financial ratios: Note (1)
Return on average assets
1.50%
1.52%
-0.02
Return on average equity
13.41%
13.73%
-0.32
Net interest margin
4.14%
4.44%
-0.30
Efficiency ratio
52.74%
52.39%
0.35
Average equity to average assets
11.21%
11.04%
0.17
 Note (1)  Ratio change measured in bp
Allowance for loan losses:
Beginning balance
$5,449
$5,729
-4.89%
Provision for losses
49
567
-91.36%
Charge-offs
-459
-1,101
-58.31%
Recoveries
118
254
-53.54%
Ending balance
$5,157
$5,449
-5.36%
Nonperforming assets:
Nonaccrual loans
0
$178
-100.00%
Restructured loans
---
---
---
Total nonperforming loans Note (2)
0
178
-100.00%
Other real estate owned
390
376
3.72%
Total nonperforming assets
$390
$554
-29.60%
Asset quality ratios: Note (3)
Nonperforming loans to total loans
0.000%
0.04%
-100.00%
Allowance for loan losses to total loans
1.03%
1.11%
-7.99%
Allowance for loan losses to nonperforming loans
---
3061.24%
-100.00%
 Note (2)  Loans 90 days past due or more not included
 Note (3)  Ratio change measured in bp