National Bankshares, Inc. Announces Earnings for 2014

BLACKSBURG, VA, FEBRUARY 19, 2015:  National Bankshares, Inc. (NASDAQ Capital Market: NKSH) today announced its results of operations for the three and twelve months ended December 31, 2014. The Company reported net income of $16.91 million for the twelve months ended December 31, 2014, a decrease from the $17.79 million earned in 2013. The 2014 return on average assets and return on average equity were 1.51% and 10.72%, respectively. Basic earnings per share in 2014 were $2.43. National Bankshares, Inc. ended 2014 with total assets of over $1.15 billion.

Commenting on the Company’s financial results, National Bankshares Chairman, President & CEO James G. Rakes said, “We are well aware of the many challenges facing our industry and parts of our market area. The low interest rate environment and relatively flat loan demand continue to compress our margins which impact our bottom-line. We remain focused on expense containment, asset quality and continuing to be true to our community banking roots by providing our customers with the very best products and services we can offer. The Company remains a strong performing institution as we look toward the future.”

Mr. Rakes continued, “We were pleased to return profits to our stockholders in the form of dividends of $1.13 per share in 2014. This per share dividend payment amount resulted in a dividend payout ratio of 46.43% in 2014 compared to 43.74% in 2013.”

National Bankshares, Inc., headquartered in Blacksburg, Virginia, is the parent company of The National Bank of Blacksburg, which does business as National Bank, and of National Bankshares Financial Services, Inc.  National Bank is a community bank operating from 25 offices throughout Southwest Virginia. National Bankshares Financial Services, Inc. is an investment and insurance subsidiary in the same trade area.  The Company’s stock is traded on the NASDAQ Capital Market under the symbol “NKSH.” Additional information is available at www.nationalbankshares.com.

Forward-Looking Statements
Certain statements in this press release may be “forward-looking statements.”  Forward-looking statements are statements that include projections, predictions, expectations or beliefs about future events or results that are not statements of historical fact and that involve significant risks and uncertainties.  Although the Company believes that its expectations with regard to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that actual Company results will not differ materially from any future results implied by the forward-looking statements.  Actual results may be materially different from past or anticipated results because of many factors, some of which may include changes in economic conditions, the interest rate environment, legislative and regulatory requirements, new products, competition, changes in the stock and bond markets and technology.  The Company does not update any forward-looking statements that it may make.