Attached files
Exhibit 99.1
PRESS RELEASE
Company: National Bancshares Corporation
OTC Bulletin Board - NBOH
Contact: Mark R. Witmer, President and CEO
Address: 112 West Market Street
Orrville, Ohio 44667
Phone: 330.682.1010
Fax: 330.682.4644
For Immediate Release: November 9, 2012
National Bancshares Corporation Announces Third Quarter Earnings
Orrville, Ohio ~ National Bancshares Corporation, the holding company for
First National Bank, reported net income of $857,000 for the quarter ended
September 30, 2012, an increase from $762,000 for the same period in 2011.
Earnings per share were $0.39 and $0.34 for September 30, 2012 and 2011,
respectively.
Third Quarter 2012 Business Highlights:
~ Net interest income for the quarter ended September 30, 2012 was
$3,669,000, an increase of $230,000 or 6.7% compared to $3,439,000 in the
same period in 2011.
~ Noninterest expense decreased 2.0% to $3,093,000.
~ Loans, net of allowance for loan losses increased $41.5 million or 19.4%
from $213.9 million as of December 31, 2011 to $255.4 million as of
September 30, 2012.
~ Total deposits increased $42.0 million or 12.3% from $340.7 million as of
December 31, 2011 to $382.7 million as of September 30, 2012.
Year-to-Date 2012 Highlights:
Net income for the first nine months of 2012 increased 2.0% to $1,874,000
from $1,838,000 for the same period in 2011. Net income was positively
impacted by an increase in net interest income and a decrease in
noninterest expense and negatively impacted by an increase in the provision
for loan losses.
Provision for loan losses totaled $1,339,000 for the first nine months of
2012 compared to $447,000 for the same period in 2011. The increase in the
provision for loan losses is primarily related to changes in the collateral
valuations based on information obtained in 2012 for two commercial real
estate loan relationships. Charge-offs of $481,000 and $282,000 were
recorded for these relationships, in the second and third quarters of
2012 respectively.
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Noninterest income for the first nine months decreased $97,000 or 4.5%, to
$2,073,000 from $2,170,000 in the same period in 2011. Noninterest income
in 2011 included $171,000 of gains recorded on the sale of the guaranteed
portion of six Small Business Administration (SBA) loans and $173,000 of
gains recorded on the sale of securities. Mortgage banking income increased
$179,000 for the nine month period ended September 30, 2012 compared to
the same period in 2011, due to an increase of mortgage loans sold.
Noninterest expense for the first nine months of 2012 was $9,106,000, a
decrease of 3.6% from $9,450,000 for the same period in 2011, due to a
reduction of legal expenses, a reduction in the use of outside information
technology consultants and a decrease in the FDIC assessment expense, due
to a change in the methodology of calculating the FDIC assessment.
September 30, 2012 Financial Condition:
Total assets increased 10.8% to $450.1 million as of September 30, 2012,
from $406.1 million at December 31, 2011. Securities available for sale
totaled $131.5 million compared to $150.2 million at December 31, 2011.
Loans, net of allowance for loan losses increased $41.5 million to
$255.5 million compared to $213.9 million at December 31, 2011. Deposits
increased 12.3% to $382.7 million compared to $340.7 million at
December 31, 2011. Shareholders` equity increased 5.2% to $45.0 million
from $42.7 million at the end of 2011. Accumulated other comprehensive
income, which is the unrealized gain on securities classified as available
for sale, net of tax, increased to $4.4 million compared to $3.6 million
as of December 31, 2011.
The allowance for loan losses increased from $3,163,000 as of
December 31, 2011 to $3,402,000 at September 30, 2012. Allowance for loan
losses as a percentage of total loans decreased from 1.46% at year-end
2011 to 1.31% at September 30, 2012, due to a decrease in the percentage
of classified loans to total loans during the same period.
Total nonperforming loans decreased from $4.0 million as of
December 31, 2011 to $1.5 million at September 30, 2012. The decrease was
primarily due to three loans that were transferred to other real estate
owned and one significant relationship that was changed from nonaccrual
status to accrual. Non-performing loans consist of loans placed on
non-accrual status and loans past due 90 or more days and still accruing
interest.
Loans past due 30 through 89 days and still accruing, decreased from $641
thousand to $618 thousand as of September 30, 2012. Adversely classified
loans, including substandard and doubtful, decreased from $7.2 million
at December 31, 2011 to $6.2 million at September 30, 2012. Management
believes the allowance for loan losses is adequate as of
September 30, 2012.
National Bancshares Corporation`s subsidiary, First National Bank, is
headquartered in Orrville, Ohio with fourteen banking offices in Orrville,
Massillon, Wooster, Apple Creek, Dalton, Fairlawn, Kidron, Lodi, Mt. Eaton,
Seville and Smithville.
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, 2011. The Company assumes no obligation to update any
forward-looking statement.
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Selected Consolidated Financial Data (Unaudited)
Balance Sheet Data:
(dollars in thousands)
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2012 2012 2012 2011 2011
Cash and cash equivalents $ 36,833 $ 31,937 $ 23,125 $ 15,213 $ 29,071
Securities available for sale 131,450 131,957 145,930 150,175 144,008
Loans, net 255,448 239,924 222,346 213,952 207,096
Deposits 382,679 370,743 352,408 340,664 340,319
Repurchase agreements 12,627 9,417 9,816 10,168 10,071
Federal Home Loan Bank advances 5,000 8,000 8,000 9,000 9,000
Shareholders' equity 44,950 43,740 43,156 42,745 42,215
Total assets 450,051 436,154 417,731 406,086 407,059
Income Statement Data:
(dollars in thousands, except per
share data) Nine months ended
Sep 30, Sep 30,
2012 2011 Change
Interest income $ 11,892 $ 11,487 3.5 %
Interest expense 1,343 1,581 (15.1)%
Net interest income 10,549 9,906 6.5 %
Provision for loan losses 1,339 447 199.6 %
Net interest income after provision for
loan losses 9,210 9,459 (2.6)%
Noninterest income 2,073 2,170 (4.5)%
Noninterest expense:
Salaries and employee benefits 4,508 4,470 0.9 %
Data processing 889 865 2.8 %
Net occupancy 1,050 1,113 (5.7)%
Professional and consulting fees 297 497 (40.2)%
FDIC assessment 215 302 (28.8)%
Other 2,147 2,203 (2.5)%
Total noninterest expense 9,106 9,450 (3.6)%
Income before income taxes 2,177 2,179 (0.1)%
Income tax expense 303 341 (11.1)%
Net income $ 1,874 $ 1,838 2.0 %
Earnings per share, basic and diluted $ 0.85 $ 0.83 2.4 %
Weighted average shares outstanding, basic 2,217,194 2,210,914
Weighted average shares outstanding, diluted 2,219,708 2,210,914
Income Statement Data:
(dollars in thousands, except per
share data) Three months ended
Sep 30, Sep 30,
2012 2011 Change
Interest income $ 4,108 $ 3,920 4.8 %
Interest expense 439 481 (8.7)%
Net interest income 3,669 3,439 6.7 %
Provision for loan losses 209 150 39.3 %
Net interest income after provision for
loan losses 3,460 3,289 5.2 %
Noninterest income 714 817 (12.6)%
Noninterest expense:
Salaries and employee benefits 1,557 1,521 2.4 %
Data processing 304 296 2.7 %
Net occupancy 348 368 (5.4)%
Professional and consulting fees 101 171 (40.9)%
FDIC assessment 66 72 (8.3)%
Other 717 728 (1.5)%
Total noninterest expense 3,093 3,156 (2.0)%
Income before income taxes 1,081 950 13.8 %
Income tax expense 224 188 19.1 %
Net income $ 857 $ 762 12.5 %
Earnings per share, basic and diluted $ 0.39 $ 0.34 14.7 %
Weighted average shares outstanding, basic 2,218,445 2,213,269
Weighted average shares outstanding, diluted 2,220,891 2,213,269
nm - not meaningful
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Quarterly Earnings Summary (Unaudited)
Previous Eight Quarters:
(dollars in thousands, except per
share data)
Sep Jun Mar Dec
2012 2012 2012 2011
Interest income $ 4,108 $ 3,934 $ 3,850 $ 3,926
Interest expense 439 451 453 469
Net interest income 3,669 3,483 3,397 3,457
Provision for loan losses 209 981 149 153
Net interest income after provision for
loan losses 3,460 2,502 3,248 3,304
Noninterest income 714 723 636 862
Noninterest expense 3,093 2,967 3,046 3,289
Income (loss) before income taxes 1,081 258 838 877
Income tax expense (benefit) 224 (59) 138 103
Net income $ 857 $ 317 $ 700 $ 774
Earnings per share:
Basic and diluted $ 0.39 $ 0.14 $ 0.32 $ 0.35
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,218,445 2,216,562 2,216,526 2,213,269
Sep Jun Mar Dec
2011 2011 2011 2010
Interest income $ 3,920 $ 3,892 $ 3,675 $ 3,704
Interest expense 481 522 578 755
Net interest income 3,439 3,370 3,097 2,949
Provision for loan losses 150 150 147 879
Net interest income after provision for
loan losses 3,289 3,220 2,950 2,070
Noninterest income 817 621 732 744
Noninterest expense 3,156 3,148 3,146 2,969
Income (loss) before income taxes 950 693 536 (155)
Income tax expense (benefit) 188 104 49 (163)
Net income $ 762 $ 589 $ 487 $ 8
Earnings per share:
Basic and diluted $ 0.34 $ 0.27 $ 0.22 $ 0.01
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,213,269 2,209,717 2,209,717 2,205,973
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