Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, August 30, 1995                   TAG: 9508300046
SECTION: CURRENT                    PAGE: NRV-1   EDITION: NEW RIVER VALLEY 
SOURCE: STEPHEN FOSTER STAFF WRITER
DATELINE: BLACKSBURG                                LENGTH: Medium

BLACKSBURG, TAZEWELL BANKS PLAN MERGER

Customers at the two longtime local banks won't notice any difference in the day-to-day operations at their financial institutions, but the combined assets, borrowing power and earnings of the two banks should strengthen their positions and benefit shareholders, the banks' presidents said.

"We plan to keep running the banks as we are," said Jim Rakes, president of National Bankshares Inc., which owns the National Bank of Blacksburg. "It's very important that we remain the community banks that we are."

Under the agreement, which was signed Monday but is still subject to shareholder and regulatory approval, both banks will be owned by National Bankshares Inc. Stockholders in the Tazewell County bank will receive shares in NBI.

"This is truly a marriage of equals and will give each bank greater resources with which to serve its customers," said Ray Dodson, president of the Bank of Tazewell County.

Rakes said he anticipated no changes in employment levels at the two banks, and he said the names of the two institutions will remain the same. "We plan to operate just the same as we always have."

Rakes laughed when asked if there were any similarities in the local banks' move to that of the huge mergers that have been happening in recent months. Those mergers culminated in Monday's announcement of the $10.7 billion merger of Chemical Banking Corp. and Chase Manhattan Corp., a move that will create the largest U.S. bank, with $300 billion in assets.

"None whatsoever," he said. "Look at the numbers."

NBI claims assets of $200 million; The Bank of Tazewell County, $174 million. In the first six months of this year, NBI earned $1,618,000; Tazewell County, $1,264,000, Dodson said. Together the two banks will operate 13 branches, all in Virginia.

Rakes said he hopes the merger would be approved by the first quarter of 1996.

In 1991, the Bank of Tazewell County announced plans to merge with the First National Bank of Christiansburg, but a year later the merger was called off.