Attached files
Exhibit 99.1
PRESS RELEASE
Company: National Bancshares Corporation
OTC Bulletin Board - NBOH
Contact: David C. Vernon, President and CEO
Address: 112 West Market Street
Orrville, Ohio 44667
Phone: 330.682.1010
Fax: 330.682.4644
For Immediate Release: April 28, 2011
National Bancshares Corporation Announces First Quarter Earnings
Orrville, Ohio ~ National Bancshares Corporation, the holding company for
First National Bank, reported net income of $487,000 for the quarter
ended March 31, 2011, an increase from $293,000 for the same period in
2010. Earnings per share were $0.22 and $0.13 for March 31, 2011 and 2010,
respectively.
First Quarter 2011 Business Highlights:
~ Net income for the quarter increased 66.2% to $487,000 from $293,000
for the same period in 2011.
~ The provision for loan losses decreased 71% to $147,000 from $507,000
in the same period in 2010.
~ Noninterest income increased 17.1% to $732,000.
~ Loans, net of allowance for loan losses increased $2.9 million or 1.5%
from $190.7 million as of December 31, 2010 to $193.6 million as of
March 31, 2011.
~ Total deposits increased $7.4 million or 2.4% from $309.1 million as of
December 31, 2010 to $316.6 million as of March 31, 2011.
First Quarter 2011 Financial Summary:
Net income for the quarter increased 66.2% to $487,000 from $293,000 for
the same period in 2010. Earnings for the quarter were positively impacted
by the $360,000 decrease in the provision for loan losses, from $507,000
in 2010, to $147,000 for the same period in 2011.
Noninterest income for the quarter increased to $732,000 or 17.1%, from
$625,000 for the same period in 2010. The change is primarily related to
increased Small Business Administration (SBA) lending volume and gains
recorded on the sale of the guaranteed portion of five loans.
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Noninterest expense for the quarter was $3,146,000, an increase of 7.4%
from $2,929,000 for the same period in 2010. The change was due primarily
to an increase in salaries and benefit expense, data processing expense
and occupancy expense.
March 31, 2011 Financial Condition:
Total assets increased 1.3% to $379.0 million as of March 31, 2011, from
$374.1 million at December 31, 2010. Securities available for sale totaled
$133.0 million compared to $138.0 million at December 31, 2010. Loans,
net of allowance for loan losses increased $2.9 million to $193.6 million
compared to $190.7 million at December 31, 2010. Deposits increased 2.4%
to $316.6 million compared to $309.1 million at December 31, 2010.
Shareholders` equity increased 1.9% to $39.7 million from $39.0 million
at the end of 2010. Accumulated other comprehensive income, which is the
unrealized gain on securities classified as available for sale, net of
tax, increased to $2.3 million compared to $1.9 million as of
December 31, 2010.
The allowance for loan losses increased from $2,585,000 as of
December 31, 2010 to $2,720,000 or from 1.34% of total loans at
year-end 2010 to 1.38% at March 31, 2011. The provision for loan
losses for the quarter was $147,000, compared to $507,000 for the
same period in 2010. Total nonperforming loans remained constant at
$4.9 million as of December 31, 2010 and March 31, 2011. Non-performing
loans consist of loans placed on non-accrual status and loans past due
over 90 days and still accruing interest. Loans past due 30 through
89 days and still accruing, decreased from $1.7 million to $910,000 as
of March 31, 2011. Adversely classified loans, including special mention,
doubtful and substandard, decreased from $12.5 million at
December 31, 2010 to $12.1 million at March 31, 2011. Management
believes the allowance for loan losses is adequate as of March 31, 2011.
National Bancshares Corporation`s subsidiary, First National Bank, is
headquartered in Orrville, Ohio with fourteen full service offices
located in Orrville, Massillon, Wooster, Fairlawn, Apple Creek, Dalton,
Kidron, Lodi, Mt. Eaton, Seville and Smithville and a loan production
office in Salem, OH.
Forward-Looking Statements ~ This press release contains forward-looking
statements as referenced in the Private Securities Litigation Reform Act
of 1995. Forward-looking statements are subject to many risks and
uncertainties. Actual results could differ materially from those indicated
by the forward-looking statements. These include factors such as changes
in the regulatory environment, changes in business conditions and
inflation, risks associated with credit quality and other factors
discussed in the Company`s filings with the U.S. Securities and Exchange
Commission, including its Annual Report on Form 10-K for the year ended
December 31, 2010. The Company assumes no obligation to update any
forward-looking statement.
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Selected Consolidated Financial Data
Balance Sheet Data:
(dollars in thousands)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2011 2010 2010 2010 2010
Cash and cash equivalents $ 21,285 $ 12,837 $ 21,805 $ 25,975 $ 28,832
Securities available for sale 133,049 138,033 131,799 131,734 123,539
Loans, net 193,610 190,685 195,004 191,078 191,483
Deposits 316,568 309,134 309,296 309,080 306,006
Repurchase agreements 7,658 7,747 6,551 6,980 6,893
Federal Home Loan Bank advances 12,000 15,000 25,000 25,000 25,000
Shareholders' equity 39,719 38,981 40,585 39,977 39,666
Total assets 379,025 374,096 385,108 384,340 381,325
Income Statement Data:
(dollars in thousands, except per
share data) Three months ended
Mar 31, Mar 31,
2011 2010 Change
Interest income $ 3,675 $ 3,958 (7.2)%
Interest expense 578 846 (31.7)%
Net interest income 3,097 3,112 (0.5)%
Provision for loan losses 147 507 (71.0)%
Net interest income after provision for
loan losses 2,950 2,605 13.2 %
Noninterest income 732 625 17.1 %
Noninterest expense:
Salaries and employee benefits 1,494 1,378 8.4 %
Data processing 283 241 17.4 %
Net occupancy 367 294 24.8 %
Professional and consulting fees 150 182 (17.6)%
FDIC assessment 136 121 12.4 %
Other 716 713 0.4 %
Total noninterest expense 3,146 2,929 7.4 %
Income before income taxes 536 301 78.1 %
Income taxes 49 8 512.5 %
Net income $ 487 $ 293 66.2 %
Earnings per share, basic and diluted $ 0.22 $ 0.13 69.2 %
Weighted average shares outstanding 2,209,717 2,205,973
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Quarterly Earnings Summary
Previous Eight Quarters:
(dollars in thousands, except per
share data)
Mar Dec Sep Jun
2011 2010 2010 2010
Interest income $ 3,675 $ 3,704 $ 3,919 $ 3,920
Interest expense 578 755 799 819
Net interest income 3,097 2,949 3,120 3,101
Provision for loan losses 147 879 228 615
Net interest income after provision for
loan losses 2,950 2,070 2,892 2,486
Noninterest income 732 744 1,209 612
Noninterest expense 3,146 2,969 2,947 3,002
Income (loss) before income taxes 536 (155) 1,154 96
Income taxes 49 (163) 288 (62)
Net income $ 487 $ 8 $ 866 $ 158
Earnings per share, basic and diluted $ 0.22 $ 0.01 $ 0.39 $ 0.07
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,209,717 2,205,973 2,205,973 2,205,973
Mar Dec Sep Jun
2010 2009 2009 2009
Interest income $ 3,958 $ 4,082 $ 4,026 $ 4,149
Interest expense 846 932 954 1,136
Net interest income 3,112 3,150 3,072 3,013
Provision for loan losses 507 902 576 228
Net interest income after provision for
loan losses 2,605 2,248 2,496 2,785
Noninterest income 625 976 595 756
Noninterest expense 2,929 2,878 2,806 2,945
Income before income taxes 301 346 285 596
Income taxes 8 31 18 142
Net income $ 293 $ 315 $ 267 $ 454
Earnings per share, basic and diluted $ 0.13 $ 0.14 $ 0.12 $ 0.21
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,205,973 2,202,721 2,202,368 2,202,368
