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National Bankshares Exhibit 99.1 FOR IMMEDIATE RELEASE CONTACTS : F. Brad Denardo , Chairman , President & CEO ( 540 ) 951-6213 bdenardo@nbbank.com David K. Skeens , Treasurer & CFO ( 540 ) 951-6347 dskeens@nbbank.com National Bankshares , Inc. Reports Income for the Third Quarter and Nine Months Ended September 30 , 2021 BLACKSBURG , VA . , October 21 , 2021 -- National Bankshares , Inc. ( NASDAQ : NKSH ) , parent company of The National Bank of Blacksburg , today announced its results of operations for the third quarter and nine months ended September 30 , 2021. The Company reported net income of $ 15.13 million , or $ 2.42 per common share , for the nine months ended September 30 , 2021. This compares to net income of $ 11.13 million , or $ 1.71 per common share , for the nine months ended September 30 , 2020. National Bankshares , Inc. ended the nine months ended September 30 , 2021 with total assets of $ 1.64 billion . " We are pleased to report that your Company delivered solid results again for the period ended September 30 , 2021 , " said F. Brad Denardo , President and Chief Executive Officer of National Bankshares . " Net income was up significantly over the same period last year , with the low cost to fund deposits and a partial reversal of loan loss reserves greatly improving our net interest income . Good loan growth and increased fee income for the period were also very encouraging , as we continue to meet the financial service needs of our customers and communities while enhancing profitability . As always , our success would not be possible without your investment in National Bankshares , and we thank you for your continued support . ” Highlights for the Nine Months Ended September 30 , 2021 Paycheck Protection Program Loans We participated in the SBA's Paycheck Protection Program ( " PPP ” ) which began in April 2020. The Company assisted local businesses through the PPP by providing 1,259 loans totaling $ 83.02 million . Gross PPP loans totaling $ 12.80 million remain on the balance sheet . For the nine months ended September 30 , 2021 , contractual interest earned on PPP loans totaled $ 253 thousand , while net fees recognized totaled $ 1.78 million . For the nine months ended September 30 , 2020 , contractual interest earned on PPP loans totaled $ 263 thousand and net fees recognized totaled $ 509 thousand . Income Statement Net income of $ 15.13 million for the nine months ended September 30 , 2021 benefitted from the reversal of a portion of previous loan loss provisions . For the nine months ended September 30 , 2021 , the Company recovered $ 338 thousand , compared with a provision expense of $ 1.99 million for the nine months ended September 30 , 2020 . The return on average assets and the return on average equity for the nine months ended September 30 , 2021 were 1.25 % and 10.36 % respectively , improved from 1.07 % and 7.61 % respectively , for the nine months ended September 30 , 2020 . The cost of interest - bearing liabilities decreased from 0.69 % for the nine months ended September 30 , 2020 to 0.30 % for the nine months ended September 30 , 2021 , the result of reductions in deposit offering rates . The Company experienced high levels of calls on securities and loan refinance activity that resulted in a decrease in the yield on earning assets ( 1 ) to 3.03 % for the nine months ended September 30 , 2021 , from 3.47 % for the nine months ended September 30 , 2020 . Our net interest margin ( 1 ) for the nine months ended September 30 , 2021 was 2.81 % , down from 2.98 % for the nine months ended September 30 , 2020 . Fees and interest income from PPP loans helped increase our net interest margin . For the nine months ended September 30 , 2021 , PPP loans increased average loans by $ 32.29 million and added $ 2.03 million in interest and fee income . For the nine months ended September 30 , 2020 , PPP loans increased average loans by $ 32.56 million and added $ 772 thousand in interest and fee income . If PPP loans are excluded , the net interest margin would have been 2.64 % for the nine months ended September 30 , 2021 and 2.91 % for the nine months ended September 30 , 2020 . 101 Hubbard Street / Blacksburg , Virginia 24060 P.O. Box 90002 / Blacksburg , Virginia 24062-9002 540 951-6300 / 800 552-4123 www.nationalbankshares.com