Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE:
National Bancshares Corporation’s Second Quarter 2005 Report
ORRVILLE, Ohio, July 19, 2005 — National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported on their second quarter.
”Our new Burbank Road Office opened June 30, 2005,” said Charles Dolezal, President. “This full-service facility is located in the commercial district in the north end of Wooster. We are excited about this new location for our institution. Not only does it bring us closer to new markets within the Wooster community, but it also offers a very convenient location to serve many of our customers that may shop this high-traffic commercial area. The Burbank Road Office will complement our Cleveland Road Office, which has been operating in this community for several years. When we entered the Wooster market, our plan was to eventually open several offices in different parts of the community.”
”This year has been very challenging for our company,” continued Dolezal. “Balance sheet growth has continued with total assets increasing by approximately $5 million, or 1.7%, above June 30, 2004. Total loans increased $4.8 million, or 2.4%, above the same period of the previous year. Total deposits increased approximately $4.5 million, or 1.9%, over the end of the second quarter of last year. This increase was realized by a $7.4 million, or 20%, increase in non-interest bearing demand deposits, partially offset by a $3.2 million, or 4.1%, decrease in time deposits. Net income decreased over $500 thousand, or approximately 36%, when compared to the first half of last year. This decline was driven by a decrease in non-interest income, an increase in the provision for loan losses, and an increase in non-interest expenses. We experienced significantly larger securities gains in the first half of 2004 than we realized in the current year. Non-interest expenses increased mainly in the areas of personnel costs, marketing expenses and consulting fees. Consultants are being utilized to help us meet new regulatory requirements. We are working to identify areas where we may gain greater operating efficiencies.”
A second quarter cash dividend of 16¢ per share is being paid July 19, 2005 to shareholders of record as of June 30, 2005.
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.
4
