UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended March 31, 2001
Commission File Number 0-14773
NATIONAL BANCSHARES CORPORATION
| Ohio | 34-1518564 | |
| State of incorporation | IRS Employer Identification No. |
112 West Market Street, Orrville, Ohio 44667
Address of principal executive offices
Registrant’s telephone number:(330) 682-1010
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes X . No .
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of May 1, 2001:
Common Stock, Without Par Value: 2,236,963 Shares Outstanding
National Bancshares Corporation
Index
| Page | ||||||||
| Number | ||||||||
| Part I. Financial Information | ||||||||
| Item 1. Financial Statements | ||||||||
| Consolidated Balance Sheets | 3 | |||||||
| as of March 31, 2001 and December 31, 2000 (Unaudited) | ||||||||
| Consolidated Statements of Income | 4 | |||||||
| and Comprehensive Income for the three months ended March 31, 2001 and 2000 | ||||||||
| (Unaudited) | ||||||||
| Consolidated Statements of Cash Flows | 5 | |||||||
| for the three months ended March 31, 2001 and 2000 | ||||||||
| (Unaudited) | ||||||||
| Note to Consolidated Financial | 6 | |||||||
| Statements (Unaudited) | ||||||||
| Item 2. Management’s Discussion and Analysis | 6 - 10 | |||||||
| of Financial Condition and Results of Operations | ||||||||
| Item 3. Quantitative and Qualitative Disclosures About | 10 | |||||||
| Market Risk | ||||||||
| Part II. Other Information | 10 | |||||||
| Item 1. Legal Proceedings — None | ||||||||
| Item 2. Changes in Securities — None | ||||||||
| Item 3. Defaults Upon Senior Securities — None | ||||||||
| Item 4. Submission of matters to a vote of security holders | ||||||||
| Item 5. Other Information — None | ||||||||
| Item 6. Exhibits and Reports on Form 8-K | ||||||||
| Signatures | 11 | |||||||
2
NATIONAL BANCSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
| 3/31/01 | 12/31/00 | |||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 6,112,213 | $ | 7,077,797 | ||||||||
| Federal funds sold | 10,355,000 | 8,135,000 | ||||||||||
| Total cash and cash equivalents | 16,467,213 | 15,212,797 | ||||||||||
| Interest bearing deposits with banks | 1,990,315 | 1,989,440 | ||||||||||
| Securities available for sale (at fair value) | 49,994,550 | 20,168,513 | ||||||||||
| Securities held to maturity | 16,374,044 | 47,852,539 | ||||||||||
| Fair value March 31, 2001 - $16,990,000; December 31, 2000 - $48,518,000 | ||||||||||||
| Federal bank stock | 988,800 | 975,800 | ||||||||||
| Loans: | ||||||||||||
| Commercial | 44,257,157 | 43,635,606 | ||||||||||
| Real estate mortgage | 54,512,079 | 55,820,790 | ||||||||||
| Installment | 9,000,801 | 9,698,848 | ||||||||||
| Total loans | 107,770,037 | 109,155,244 | ||||||||||
| Less: Unearned income | 189,727 | 260,446 | ||||||||||
| Allowance for loan losses | 1,327,632 | 1,343,124 | ||||||||||
| Loans, net | 106,252,678 | 107,551,674 | ||||||||||
| Accrued interest receivable | 1,583,927 | 1,492,613 | ||||||||||
| Premises and equipment | 2,944,854 | 2,621,483 | ||||||||||
| Other assets | 2,652,965 | 2,927,847 | ||||||||||
| TOTAL | $ | 199,249,346 | $ | 200,792,706 | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Deposits | ||||||||||||
| Demand | $ | 26,712,046 | $ | 28,236,689 | ||||||||
| Savings and N.O.W.s | 69,390,360 | 70,400,876 | ||||||||||
| Time | 64,183,009 | 63,376,020 | ||||||||||
| Total deposits | 160,285,415 | 162,013,585 | ||||||||||
| Securities sold under repurchase agreements | 3,762,941 | 3,949,485 | ||||||||||
| Federal reserve note account | 189,914 | 615,298 | ||||||||||
| Federal Home Loan Bank advances | 3,144,000 | 3,446,086 | ||||||||||
| Accrued interest payable | 700,451 | 840,304 | ||||||||||
| Other liabilities | 1,225,016 | 988,619 | ||||||||||
| Total liabilities | 169,307,737 | 171,853,377 | ||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||
| Common stock — without par value; 6,000,000 shares authorized; 2,289,528 shares issued | 11,447,640 | 11,447,640 | ||||||||||
| Additional paid-in capital | 4,689,800 | 4,689,800 | ||||||||||
| Retained earnings | 14,587,470 | 14,292,805 | ||||||||||
| Accumulated other comprehensive income | 519,139 | (127,139 | ) | |||||||||
| Less: Treasury shares (at cost): 50,079 and 51,384 shares as of March 31, 2001 and December 31, 2000 | (1,302,440 | ) | (1,363,777 | ) | ||||||||
| Total shareholders’ equity | 29,941,609 | 28,939,329 | ||||||||||
| TOTAL | $ | 199,249,346 | $ | 200,792,706 | ||||||||
See note to consolidated financial statements
3
NATIONAL BANCSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME (Unaudited)
AND COMPREHENSIVE INCOME (Unaudited)" -->
| Three Months Ended | |||||||||||
| 3/31/01 | 3/31/00 | ||||||||||
| INTEREST AND DIVIDEND INCOME: | |||||||||||
| Loans, including fees | $ | 2,386,138 | $ | 2,155,890 | |||||||
| Federal funds sold | 161,346 | 50,122 | |||||||||
| Securities: | |||||||||||
| Taxable | 813,503 | 862,972 | |||||||||
| Nontaxable | 263,725 | 287,081 | |||||||||
| Total interest and dividend income | 3,624,712 | 3,356,065 | |||||||||
| INTEREST EXPENSE: | |||||||||||
| Deposits | 1,335,470 | 1,094,147 | |||||||||
| Short-term borrowings | 42,008 | 33,695 | |||||||||
| Federal Home Loan Bank advances | 51,918 | 89,726 | |||||||||
| Total interest expense | 1,429,396 | 1,217,568 | |||||||||
| Net interest income | 2,195,316 | 2,138,497 | |||||||||
| PROVISION FOR LOAN LOSSES | 15,000 | 37,500 | |||||||||
| Net interest income after provision for loan losses | 2,180,316 | 2,100,997 | |||||||||
| NONINTEREST INCOME | |||||||||||
| Checking account fees | 149,953 | 135,126 | |||||||||
| Gain on sale of loans | 27,500 | — | |||||||||
| Other | 73,188 | 67,800 | |||||||||
| Total noninterest income | 250,641 | 202,926 | |||||||||
| NONINTEREST EXPENSE: | |||||||||||
| Salaries and employee benefits | 863,489 | 830,804 | |||||||||
| Data processing fees | 152,350 | 180,539 | |||||||||
| Net occupancy expense | 63,805 | 57,926 | |||||||||
| Depreciation – furniture and fixtures | 67,313 | 81,254 | |||||||||
| Franchise taxes | 82,500 | 77,227 | |||||||||
| Maintenance and repairs | 43,895 | 41,806 | |||||||||
| Other expenses | 344,166 | 317,238 | |||||||||
| Total noninterest expense | 1,617,518 | 1,586,794 | |||||||||
| INCOME BEFORE INCOME TAXES | 813,439 | 717,129 | |||||||||
| Income tax expense | 187,260 | 145,693 | |||||||||
| NET INCOME | 626,179 | 571,436 | |||||||||
| OTHER COMPREHENSIVE INCOME: | |||||||||||
| Unrealized appreciation (depreciation) in fair value of securities available for sale, net of tax | 511,910 | (236,788 | ) | ||||||||
| Cumulative effect of adopting SFAS No. 133 | 134,368 | — | |||||||||
| COMPREHENSIVE INCOME | $ | 1,272,457 | $ | 334,648 | |||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 2,238,940 | 2,239,278 | |||||||||
| BASIC EARNINGS PER COMMON SHARE | $ | 0.28 | $ | 0.26 | |||||||
| DIVIDENDS DECLARED PER COMMON SHARE | $ | 0.13 | $ | 0.12 | |||||||
See note to consolidated financial statements
4
NATIONAL BANCSHARES CORPORATION
| Three Months Ended | ||||||||||
| 3/31/01 | 3/31/00 | |||||||||
| Cash Flows From Operating Activities: | ||||||||||
| Net Income | $ | 626,179 | $ | 571,436 | ||||||
| Adjustments to Reconcile Net Income | ||||||||||
| to Net Cash Provided by Operating Activities | ||||||||||
| Depreciation and Amortization, net of Accretion | 57,815 | 97,968 | ||||||||
| Federal Home Loan Bank Stock Dividend | (13,000 | ) | (11,400 | ) | ||||||
| Gain on Sale of loans | (27,500 | ) | ||||||||
| Provision for Loan Losses | 15,000 | 37,500 | ||||||||
| Changes in Other Assets and Liabilities | (43,748 | ) | (414,334 | ) | ||||||
| Net Cash From Operating Activities | 614,746 | 281,170 | ||||||||
| Cash Flows From Investing Activities: | ||||||||||
| Securities Held to Maturity | ||||||||||
| Proceeds from Maturities and Repayments | 1,025,000 | 499,278 | ||||||||
| Securities Available for Sale | ||||||||||
| Proceeds from Maturities and Repayments | 9,911,859 | — | ||||||||
| Purchases | (8,257,297 | ) | — | |||||||
| Capital Expenditures | (416,815 | ) | (40,590 | ) | ||||||
| Net Change in Loans to Customers | 345,994 | (3,226,889 | ) | |||||||
| Proceeds from sale of loans | 965,502 | — | ||||||||
| Net Cash From Investing Activities | 3,574,243 | (2,768,201 | ) | |||||||
| Cash Flows from Financing Activities: | ||||||||||
| Net Change in Demand and Savings Accounts | (2,535,159 | ) | (3,167,411 | ) | ||||||
| Net Change in Time Deposits | 806,989 | (1,607,888 | ) | |||||||
| Net Change in Short-Term Borrowings | (611,928 | ) | (228,341 | ) | ||||||
| Proceeds from Federal Home Loan Bank Advances | — | 1,000,000 | ||||||||
| Repayments on Federal Home Loan Bank Advances | (302,086 | ) | (283,125 | ) | ||||||
| Dividends Paid | (313,340 | ) | (402,622 | ) | ||||||
| Dividends Reinvested | 47,351 | 74,720 | ||||||||
| Purchase of Treasury Shares | (26,400 | ) | — | |||||||
| Net Cash From Financing Activities | (2,934,573 | ) | (4,614,667 | ) | ||||||
| Net Change in Cash and Cash Equivalents | 1,254,416 | (7,101,698 | ) | |||||||
| Beginning Cash and Cash Equivalents | 15,212,797 | 17,308,351 | ||||||||
| Ending Cash and Cash Equivalents | $ | 16,467,213 | $ | 10,206,653 | ||||||
| Supplemental Disclosures | ||||||||||
| Cash Paid for Interest | $ | 1,569,249 | $ | 1,213,065 | ||||||
| Cash Paid for Income Taxes | $ | 30,000 | — | |||||||
See note to consolidated financial statements.
5
National Bancshares Corporation
Note 1. Basis of Presentation
The accompanying consolidated financial statements include the accounts of National Bancshares Corporation (the “Company”) and its wholly owned subsidiary, First National Bank, Orrville, Ohio (the “Bank”). All significant intercompany transactions and balances have been eliminated. The consolidated balance sheet as of March 31, 2001, the consolidated statements of income and comprehensive income, and the consolidated statements of cash flows for the three-month periods ended March 31, 2001 and 2000 have been prepared by the Company without audit. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
The consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q, but do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. These statements should be read in conjunction with the consolidated financial statements and footnotes in the Company’s annual report on Form 10-K for the year ended December 31, 2000. Operating results for the three months ended March 31, 2001 are not necessarily indicative of the results that may be expected for the year ending December 31, 2001.
To prepare financial statements in conformity with generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, fair values of financial instruments and fair values of certain securities are particularly subject to change.
The Company provides a broad range of financial services to individuals and companies in northern Ohio. While the Company’s chief decision makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all the Company’s banking operations are considered by management to be aggregated in one reportable operating segment.
In January 2001, the Company adopted a new accounting standard, Statement of Financial Accounting Standards (“SFAS”) No. 133, “Accounting for Derivative Instruments and Hedging Activities”, as amended by SFAS No. 137. As a result, the Company transferred securities with an amortized cost of approximately $30.5 million and a fair value of approximately $30.7 million from the held to maturity to the available for sale category to allow hedging of those securities in the future if deemed beneficial. The transfer had a positive impact on the company’s capital, net of taxes, of approximately $134 thousand.
Results of Operations" -->
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
FORWARD-LOOKING INFORMATION
The Company cautions that any forward-looking statements contained in this report, in a report incorporated by reference to this report or made by management of the Company involves risk and uncertainties and are subject to change based on various important factors. Actual results could differ materially from those expressed or implied. Additionally, the Company claims no notification responsibilities should their opinions change from those expressed herein.
6
FINANCIAL CONDITION
Balance Sheets
Total assets decreased $1.5 million or 0.8% from 12/31/00. Cash and due from banks decreased approximately $1.0 million compared to 12/31/00. Federal funds sold increased $2.2 million due to investments maturing and a decline in loan volume. Net loans decreased $1.3 million or 1.2% due mainly to $0.9 million in real estate mortgage loans sold during the first quarter of 2001.
The carrying amounts and approximate fair values of securities are summarized as follows:
| March 31, 2001 | |||||||||||||||||
| Gross | Gross | ||||||||||||||||
| Amortized | Unrealized | Unrealized | Fair | ||||||||||||||
| Cost | Gains | Losses | Value | ||||||||||||||
| Available for Sale: | |||||||||||||||||
| U.S. Government and federal agency | $ | 17,760,554 | $ | 489,103 | $ | — | $ | 18,249,657 | |||||||||
| State and municipal | 2,293,854 | 69,726 | — | 2,363,580 | |||||||||||||
| Corporate bond and notes | 26,760,020 | 646,314 | 99,056 | 27,307,278 | |||||||||||||
| Total debt securities | 46,814,428 | 1,205,143 | 99,056 | 47,920,515 | |||||||||||||
| Equity securities | 2,393,548 | 141,271 | 460,784 | 2,074,035 | |||||||||||||
| Total | $ | 49,207,976 | $ | 1,346,414 | $ | 559,840 | $ | 49,994,550 | |||||||||
| Held to Maturity: | |||||||||||||||||
| State and municipal | $ | 16,374,044 | $ | 616,536 | $ | 176 | $ | 16,990,404 | |||||||||
The activity in the allowance for loan losses for the first three months of 2001 was as follows:
| Beginning balance | $ | 1,343,124 | ||
| Provision for loan losses | 15,000 | |||
| Loans charged-off | (34,557 | ) | ||
| Recoveries | 4,065 | |||
| Ending balance | $ | 1,327,632 | ||
The allowance for loan losses is a valuation allowance for probable credit losses, increased by the provision for loan losses and decreased by charge-offs less recoveries. The allowance is maintained at a level that is considered adequate to absorb all estimated losses. Management estimates the allowance balance required using the following methodology. All problem, past due and non-performing loans are closely monitored and analyzed by management on a regular basis. Management assigns a classification rating to these loans based on information about specific borrower situations and estimated collateral values. Management determines the loss that exists on each significant problem, past due and non-performing loan. Other past due loans that are not analyzed individually are pooled and evaluated by loan type. The inherent loss that exists on past due loans is estimated using past loan loss experience. All other loans are pooled by loan type and evaluated for inherent risk based upon past loan loss experience. National and local economic conditions and other factors are also considered in determining an adequate level for the allowance for loan losses. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off. Management reviews the allowance for loan losses on a regular basis to determine the adequacy of the reserve.
7
The allowance for loan losses to total loans outstanding was 1.23% for both March 31, 2001 and December 31, 2000. On an annualized basis, net charge-offs to total average loans were .11% for the first three months of 2001 and .03% for 2000. The ratio of non-performing loans to total loans was .23% ($248,356) for March 31, 2001 compared to .13% ($144,130) for December 31, 2000. Non-performing loans consist of loans that have been placed on nonaccrual status.
Impaired loans at March 31, 2001 were as follows:
| Loans with no allocated allowance for loan losses | $ | — | ||
| Loans with allocated allowance for loan losses | 13,863 | |||
| Amount of the allowance for loan losses allocated | 13,863 | |||
| Average of impaired loans during the first three months of 2001 | $ | 13,863 | ||
| Interest income recognized during impairment | 432 | |||
| Cash-basis interest income recognized | 432 |
A loan is impaired when full payment under the loan terms is not expected. Impairment is evaluated in total for smaller balance loans of similar nature such as residential mortgage, consumer, and credit card loans, and on an individual loan basis for other loans. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral.
Total deposits decreased $1.7 million or approximately 1.1% from 12/31/00. Non-interest bearing demand accounts decreased by 5.4%, savings and N.O.W. accounts decreased by 1.4% and time deposits increased by 1.3%. Deposit balances fluctuate based upon the liquidity needs of our customers. Securities sold under repurchase agreements decreased $0.2 million from 12/31/00. The Federal Reserve note account decreased $0.4 million or 69.1% due to the Federal Reserve withdrawing Treasury, Tax and Loan deposits. Advances from the Federal Home Loan Bank decreased $0.3 million or 8.8% from December 31, 2000. Total shareholders’ equity increased $1.0 million or 3.5% from 12/31/00.
Statements of Cash Flows
Net cash from operating activities for the first three months of 2001 was $0.6 million compared to $0.3 million for 2000. Net cash from investing activities for the first three months of 2001 was $3.6 million due primarily to investments maturing and real estate mortgage loan sales. Net cash of $2.9 million was used by financing activities mainly as a result of the decline in deposits and short-term borrowings. Total cash and cash equivalents increased $1.3 million during the first three months of 2001. With total cash and cash equivalents of $16.5 million as of 3/31/01, the Company’s liquidity ratios continue to remain favorable.
8
Analysis of Equity
The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. The following is a summary of the actual and required regulatory capital amounts and ratios at 3/31/01.
| To Be Well Capitalized | ||||||||||||||||||||||||||
| For Capital | Under Prompt Corrective | |||||||||||||||||||||||||
| Actual | Adequacy Purposes | Action Provisions | ||||||||||||||||||||||||
| Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||||
| Total capital to risk-weighted assets | ||||||||||||||||||||||||||
| Consolidated | $ | 30,215 | 22.18 | % | $ | 10,896 | 8.00 | % | $ | 13,620 | 10.00 | % | ||||||||||||||
| Bank | 26,270 | 19.60 | % | 10,721 | 8.00 | % | 13,401 | 10.00 | % | |||||||||||||||||
| Tier 1 (core) capital to risk-weighted assets | ||||||||||||||||||||||||||
| Consolidated | 28,888 | 21.21 | % | 5,448 | 4.00 | % | 8,172 | 6.00 | % | |||||||||||||||||
| Bank | 24,943 | 18.61 | % | 5,361 | 4.00 | % | 8,041 | 6.00 | % | |||||||||||||||||
| Tier 1 (core) capital to average assets | ||||||||||||||||||||||||||
| Consolidated | 28,888 | 14.43 | % | 8,009 | 4.00 | % | 10,012 | 5.00 | % | |||||||||||||||||
| Bank | 24,943 | 12.59 | % | 7,925 | 4.00 | % | 9,906 | 5.00 | % | |||||||||||||||||
RESULTS OF OPERATIONS
Interest and dividend income totaled $3.6 million or $269 thousand higher for the three-months ended 3/31/01 as compared to the same period in 2000. Interest expense was $1.4 million for the three months ended 3/31/01 or $212 thousand over 2000. This resulted in an increase of $57 thousand or 2.7% in net interest income for the three-month period ended 3/31/01 as compared to 3/31/00.
Net interest rate margins were 5.07% and 5.20% for the first three months of 2001 and 2000, respectively. Interest income yields increased 21 basis points compared to interest costs, which increased 34 basis points in 2001 compared to 2000.
The provision for loan losses was $15,000 for the three months ended 3/31/01 compared to $37,500 for the three months ended 3/31/00. Net charge-offs for the three months ended 3/31/01 were $30 thousand as compared to net recoveries of $10 thousand for the same period in 2000. Management determines the provision for loan losses based upon an analysis of the allowance for loan losses.
Noninterest income was $251 thousand for the three months ended 3/31/01 or approximately 23.5% above the same period in 2000, due mainly to higher fee income and gains on loans sold during the first quarter of 2001.
Noninterest expense was $1.6 million for the three months ended 3/31/01 or approximately 1.9% above the same period in 2000 due to normal salary increases and higher miscellaneous expenses.
9
Net income was $626 thousand for the three months ended 3/31/01 or 9.6% above the same quarter of 2000. The increase was due primarily to higher net interest income and noninterest income, offset by higher noninterest expenses. Unrealized appreciation (depreciation) on securities available for sale was $646 thousand for the three months ended 3/31/01 compared to ($237) thousand for the three months ended 3/31/00. A general increase in the market value of debt and equity investments owned, due to improved stock and bond market levels on certain securities coupled with lower interest rates, has increased the market value of securities in the available for sale portfolio. Comprehensive income was $1.3 million for the three months ended 3/31/01 or 280.2% above the same period in 2000.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in the quantitative and qualitative disclosures about market risks as of March 31, 2001 from that presented in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2000.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings — None
Item 2. Changes in Securities — None
Item 3. Defaults Upon Senior Securities — None
Item 4. Submission of matters to a vote of security holders – Notice of Annual Meeting of
Shareholders and proxy statement dated March 23, 2001 was previously filed with the SEC on March 22, 2001.
Item 5. Other Information — None
Item 6. Exhibits and Reports on Form 8-K
a. Exhibits
| Exhibit No. | If incorporated by Reference, | |||
| Under Reg. | Documents with Which Exhibit | |||
| S-K, Item 601 | Description of Exhibits | Was Previously Filed with SEC | ||
| (11) | Computation of Earnings per Share | See Consolidated Statements of Income and Comprehensive Income, Page 4 |
No other exhibits are required to be filed herewith pursuant to Item 601 of Regulation S-K.
b. There were no reports on Form 8-K filed for the quarter ended 3/31/01.
10
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| National Bancshares Corporation | |||||||
| Date: | May 4, 2001 | /s/Charles J. Dolezal | |||||
| Charles J. Dolezal, President | |||||||
| Date: | May 4, 2001 | /s/Lawrence M. Cardinal, Jr. | |||||
| Lawrence M. Cardinal, Jr., Treasurer (Principal Financial Officer) | |||||||
11
