Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE:
National Bancshares Corporation’s Third Quarter 2005 Report
ORRVILLE, Ohio, October 19, 2005 — National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported on their third quarter.
The first nine months of this year have been very challenging as well as transitional for National Bancshares Corporation. Total assets and total loans as of September 30, 2005 are down marginally when compared to the same time of the previous year. Total deposits declined by over $2.3 million, or 1%, in the same time comparison. This decline is attributable to time and savings deposits. Demand deposits increased by over $3.3 million, or 8.1%, during the same period.
Net income for the first nine months of 2005 declined by over $600 thousand, or 32.7%, when compared to the same period of the previous year. This decline is mainly due to less investment security gain income realized in the current year, an increased provision for loan losses and increased noninterest expenses. The noninterest expense increase consisted primarily of consulting fees to assist us in complying with the provisions of the Sarbanes Oxley Act and transitional expenses associated with personnel reorganization and consolidation of certain operational functions. The opening of the Burbank Road Office and the closing of the Marketplace Office also carried one-time non-recurring expenses.
With this report is included a check, deposit advice or dividend reinvestment notice representing the third quarter cash dividend of 16¢ per share. This dividend is payable on October 19, 2005 to shareholders of record as of September 30, 2005.
As mentioned above, we recently initiated certain reorganization and consolidation of the senior management team. Tammy Starkey, who had served as our internal auditor, was appointed to fill a newly created senior level management position, Vice President, Risk Management. Tammy will oversee compliance, BSA and security areas. She will also assist in the implementation of required provisions of the Sarbanes Oxley Act. We consolidated the responsibilities of the operations departments and asset and liability management and appointed Jim Huntsberger as Vice President, ALM & Operations. Previous to this appointment, Jim was the manager of asset and liability management. Marc Valentin, formerly Vice President of Human Resources, was appointed Vice President & Controller. The management of the human resource function was consolidated with the oversight of the accounting and control functions. Paul Kubiak was appointed to the position of Vice President of Sales & Marketing, moving from commercial banking. Paul’s major areas of responsibility will be for retail sales and all marketing functions. With these changes to the senior management team, management and the Board of Directors is looking toward the future with great optimism to meet the challenges that may be presented to us.
National Bancshares Corporation’s subsidiary, First National Bank, is headquartered in Orrville, Ohio, with fourteen banking offices located in Orrville, Wooster, Dalton, Kidron, Smithville, Apple Creek, Mt. Eaton, Massillon, Lodi, and Seville.
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 necessarily subject to many risks and uncertainties. A number of things could cause actual results to differ materially from those indicated by the forward-looking statements. These include factors such as changes in the competitive marketplace, changes in the interest rate environment, economic conditions, 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 Security and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2004. The company disclaims any obligation to publicly update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information, or otherwise.
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