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National Bankshares CONTACTS : F. Brad Denardo , Chairman , President & CEO ( 540 ) 951-6213 bdenardo@nbbank.com FOR IMMEDIATE RELEASE David K. Skeens , Treasurer & CFO ( 540 ) 951-6347 dskeens@nbbank.com Exhibit 99.1 National Bankshares , Inc. Reports First Quarter Earnings BLACKSBURG , VA . , April 22 , 2021 -- National Bankshares , Inc. ( NASDAQ : NKSH ) , parent company of The National Bank of Blacksburg , today announced its results of operations for the first quarter of 2021. The Company reported net income of $ 4.77 million , or $ 0.74 per common share , for the quarter ended March 31 , 2021. This compares to net income of $ 3.98 million , or $ 0.61 per common share , for the quarter ended March 31 , 2020. National Bankshares , Inc. ended the first quarter of 2021 with total assets of $ 1.57 billion . President and Chief Executive Officer F. Brad Denardo commented , " We are very encouraged by the increased earnings generated by our Company in the first quarter . After nearly a year of economic disruption , there have been signs of improvement for our customers and our local economies . As a result , we were able to safely reduce our loan loss provision for the quarter , which along with the very low interest rates on deposits , contributed to improved income . Moving ahead into the second quarter , we look forward to continued improvement in the business climate and a return to serving our customers with lobby service . We also remain confident in our ability to meet our customer's financial service needs while delivering a solid return on your investment . Thank you for your continued support and trust in National Bankshares . " Highlights for the Quarter Ended March 31 , 2021 Loan Modifications Of the loans modified for pandemic related hardships , at March 31 , 2021 , 7 loans totaling $ 7.8 million remained in deferral and another 6 loans totaling $ 14.4 million remained on interest - only payments . Each modification is governed by an agreement that provides a date at which the modification will expire . One additional loan with a balance of $ 4.8 million was provided an extended amortization period . Paycheck Protection Program Loans We continue to participate in the SBA's Paycheck Protection Program ( “ PPP ” ) . The Company assisted local businesses through the PPP by providing 1,164 loans totaling $ 81.0 million since the program's inception in April of 2020. During the first quarter of 2021 , we funded 351 loans totaling $ 22.8 million and received pay - off of 302 loans with original amounts totaling $ 14.5 million . For the three months ended March 31 , 2021 , contractual interest earned on PPP loans totaled $ 100 thousand , while net fees accreted to interest income totaled $ 113 thousand , and fees recognized at pay off or forgiveness totaled $ 437 thousand . Gross PPP loans totaling $ 45.14 million remain on the balance sheet . Income Statement The return on average assets and the return on average equity for the three months ended March 31 , 2021 were 1.19 % and 9.30 % respectively , improved from 1.16 % and 8.03 % respectively , for the three months ended March 31 , 2020 . Net income of $ 4.77 million for the three months ended March 31 , 2021 benefitted from a reduced loan loss provision when compared with the three months ended March 31 , 2020. Loan loss provision for the three months ended March 31 , 2021 was $ 50 thousand , compared with $ 479 thousand for the three months ended March 31 , 2020. We will continue to closely monitor our loan portfolio for indications of heightened credit risk and the resulting need for any additional provision for loan losses . 101 Hubbard Street / Blacksburg , Virginia 24060 P.O. Box 90002 / Blacksburg , Virginia 24062-9002 540 951-6300 / 800 552-4123 www.nationalbankshares.com