<ARTICLE> 9 <CIK> 0000313337 <NAME> TRI CITY BANKSHARES CORP <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <CASH> 44,002 <INT-BEARING-DEPOSITS> 0 <FED-FUNDS-SOLD> 32,200 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 0 <INVESTMENTS-CARRYING> 134,538 <INVESTMENTS-MARKET> 136,420 <LOANS> 277,184 <ALLOWANCE> 4,245 <TOTAL-ASSETS> 510,252 <DEPOSITS> 449,535 <SHORT-TERM> 827 <LIABILITIES-OTHER> 1,372 <LONG-TERM> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 2,520 <OTHER-SE> 0 <TOTAL-LIABILITIES-AND-EQUITY> 510,252 <INTEREST-LOAN> 25,593 <INTEREST-INVEST> 7,123 <INTEREST-OTHER> 824 <INTEREST-TOTAL> 33,540 <INTEREST-DEPOSIT> 10,987 <INTEREST-EXPENSE> 11,171 <INTEREST-INCOME-NET> 22,370 <LOAN-LOSSES> 600 <SECURITIES-GAINS> 0 <EXPENSE-OTHER> 19,325 <INCOME-PRETAX> 9,370 <INCOME-PRE-EXTRAORDINARY> 6,970 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 6,970 <EPS-PRIMARY> 2.77 <EPS-DILUTED> 2.77 <YIELD-ACTUAL> 5.40 <LOANS-NON> 344 <LOANS-PAST> 1,848 <LOANS-TROUBLED> 0 <LOANS-PROBLEM> 0 <ALLOWANCE-OPEN> 3,500 <CHARGE-OFFS> 154 <RECOVERIES> 299 <ALLOWANCE-CLOSE> 4,245 <ALLOWANCE-DOMESTIC> 4,245 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 0