Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE:
National Bancshares Corporation’s 1Q 2005 Report
ORRVILLE, Ohio, April 19, 2005 / PR NEWSWIRE / — National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported their first quarter earnings. Total assets increased by $3.6 million, or 1%, over March 31, 2004. This increase was mainly driven by a $4.7 million increase in total loans, which surpassed $200 million at the end of the first quarter of this year. Total deposits increased approximately $1.2 million, or less than 1%, over March 31, 2004. Demand deposits increased by over $8.8 million, or 25%, above the first quarter of last year, offset by a decrease in time deposits of $7.9 million, or 10%. Net income declined by approximately $300 thousand, or 37%, from the first quarter of 2004. This was primarily due to higher security gains realized in the first quarter of last year and higher operating costs during the first quarter of 2005.
“The first quarter of 2005 presented numerous challenges as well as new opportunities for us,” reported Charles Dolezal, President. “Although there continues to be a strong competitive environment in the markets served, we have seen a steady increase in our customer base at a number of our office locations.”
“After evaluating effectiveness and opportunities of current and new locations, we have decided to close our Massillon Marketplace Office on May 31, 2005,” continued Dolezal. “We believe the resources devoted to this office will be better utilized in other locations. Following this action, we took advantage of an opportunity to purchase a recently-vacated bank building on Burbank Road in the north end of Wooster. Activity is underway to have this full-service office operational by this summer, pending regulatory approval. Because of its location in a heavily-commercialized area, we will have the opportunity to expand our presence in the Wooster market and complement our Cleveland Road Office.”
“We are continuously evaluating our product offerings for additions and enhancements. We unveiled a new money market deposit product in the first quarter, offering a higher interest rate to customers with larger deposit balances. Our Free Checking account was enhanced with additional features and we introduced two new mortgage loan products designed to serve first-time homebuyers and low-to-moderate-income customers. We will soon be introducing an Overdraft Privilege Service followed by Online Bill Payment.”
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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NATIONAL BANCSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS
| March 31, 2005 | March 31, 2004 | |||||||
| ASSETS: | ||||||||
| Cash and due from banks | $ | 11,340,868 | $ | 7,300,613 | ||||
| Federal funds sold | 1,795,000 | 2,940,000 | ||||||
| Total cash and cash equivalents | 13,135,868 | 10,240,613 | ||||||
| Interest bearing deposits with banks | — | 999,411 | ||||||
| Securities available for sale | 57,769,810 | 60,335,512 | ||||||
| Securities held to maturity | 15,849,444 | 16,585,747 | ||||||
| Federal bank stock | 2,901,650 | 2,791,850 | ||||||
| Total loans (excluding unearned income) | 200,182,855 | 195,480,441 | ||||||
| Less: allowance for loan losses | 1,832,941 | 1,688,564 | ||||||
| Loans, net | 198,349,914 | 193,791,877 | ||||||
| Accrued interest receivable | 1,693,299 | 1,716,331 | ||||||
| Premises and equipment | 5,090,265 | 4,635,102 | ||||||
| Other assets | 8,747,999 | 8,859,771 | ||||||
| TOTAL | $ | 303,538,249 | $ | 299,956,214 | ||||
| LIABILITIES: | ||||||||
| Deposits: | ||||||||
| Demand | $ | 44,311,660 | $ | 35,478,385 | ||||
| Savings and N.O.W.s | 126,186,024 | 125,967,052 | ||||||
| Time | 71,166,197 | 79,046,778 | ||||||
| Total deposits | 241,663,881 | 240,492,215 | ||||||
| Securities sold under repurchase agreements | 4,193,687 | 2,758,650 | ||||||
| Federal reserve note account | 673,126 | 235,349 | ||||||
| Federal Home Loan Bank advances | 20,000,000 | 17,000,000 | ||||||
| Accrued interest payable | 454,282 | 471,352 | ||||||
| Other liabilities | 2,045,792 | 3,454,453 | ||||||
| Total liabilities | 269,030,768 | 264,412,019 | ||||||
| SHAREHOLDERS’ EQUITY | ||||||||
| Common Stock, without par value: | ||||||||
| 6,000,000 shares authorized and 2,289,528 shares issued | 11,447,640 | 11,447,640 | ||||||
| Additional paid-in-capital | 4,689,800 | 4,689,800 | ||||||
| Retained earnings | 19,560,882 | 18,344,724 | ||||||
| Accumulated other comprehensive income | (1,348 | ) | 2,251,524 | |||||
| Less: Treasury shares | (1,189,493 | ) | (1,189,493 | ) | ||||
| Total shareholders’ equity | 34,507,481 | 35,544,195 | ||||||
| TOTAL | $ | 303,538,249 | $ | 299,956,214 | ||||
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NATIONAL BANCSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
For Three Months Ended March 31, 2005 and March 31, 2004
| March 31, 2005 | March 31, 2004 | |||||||
| INTEREST & DIVIDEND INCOME: | ||||||||
| Loans, including fees | $ | 2,887,041 | $ | 2,681,508 | ||||
| Federal funds sold | 8,059 | 2,538 | ||||||
| Interest and dividends on investments | ||||||||
| US government obligations | 201,091 | 350,203 | ||||||
| Obligations of states and political subdivisions | 210,790 | 221,293 | ||||||
| Other securities | 521,310 | 521,024 | ||||||
| Total interest & dividend income | 3,828,291 | 3,776,566 | ||||||
| INTEREST EXPENSE: | ||||||||
| Deposits | 628,426 | 578,246 | ||||||
| Short term borrowings | 13,404 | 2,764 | ||||||
| Federal Home Loan Bank advances | 222,439 | 190,014 | ||||||
| Total interest expense | 864,269 | 771,024 | ||||||
| Net interest income | 2,964,022 | 3,005,542 | ||||||
| PROVISION FOR LOAN LOSSES | 80,000 | 47,500 | ||||||
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 2,884,022 | 2,958,042 | ||||||
| NONINTEREST INCOME | 449,369 | 630,102 | ||||||
| NONINTEREST EXPENSE: | ||||||||
| Salaries and employee benefits | 1,474,075 | 1,355,280 | ||||||
| Net occupancy expense | 187,992 | 170,027 | ||||||
| Other expenses | 1,026,528 | 931,525 | ||||||
| Total noninterest expense | 2,688,595 | 2,456,832 | ||||||
| INCOME BEFORE INCOME TAXES | 644,796 | 1,131,312 | ||||||
| INCOME TAXES | 123,997 | 301,314 | ||||||
| NET INCOME | $ | 520,799 | $ | 829,998 | ||||
| NET INCOME PER COMMON SHARE | $ | 0.23 | $ | 0.37 | ||||
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