Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE:
ORRVILLE, Ohio, April 18, 2006 — National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported on their first quarter 2006.
“We are proud to be celebrating 125 years of providing quality financial services. It is our mission to remain a visible, trustworthy and loyal business partner in the communities we serve. We hope to remain a strong, local independent bank for many years to come,” said Charles J. Dolezal, President.
“At the end of the first quarter 2006, total assets posted an increase of approximately $1.7 million over the end of the first quarter 2005,” explained Dolezal. “This increase was driven by a growth in deposits of over $3.5 million, and realized entirely in time deposits. As interest rates increased throughout this past year, time deposits became a more desirable investment opportunity for many customers. The special rates offered on our time deposits prompted many customers to move funds into these higher rate instruments. As the local economy has been somewhat lackluster during the past year, loan activity has slowed. Total loans decreased by over $11 million during the past 12 months. Part of this decline is attributed to selling over $8 million of fixed rate residential mortgage loans into the secondary market since April 2005. Our staff is reviewing new opportunities in markets and loan products to help generate additional loan volume. Net income for the first three months of 2006 was off slightly from the same period of the previous year, declining by approximately $12 thousand. As interest rates have risen, we have experienced a faster rate of growth in interest expense than interest income. Included in non-interest income are security gains. During the first quarter 2006, our gain on the sale of securities was $38 thousand, while for the same period last year, was $103 thousand.”
Dolezal concluded, “we continue to review all our products for improvement as well as design new products. During this past quarter we rolled out updates to our Home Equity Line of Credit offering a low interest rate for qualified borrowers. Also introduced is a cash back incentive to our Visa credit card customers. These customers can now earn 1% cash back for all purchases made with their First National Visa credit card. A new fixed rate residential mortgage loan product was introduced for loans that do not qualify for secondary mortgage market financing. Also, we have been offering attractive interest rates on certain time certificate of deposits. Our product development committee has been continuously working on reviewing what our customers want and need to determine how to make our products better. We hope that we may be able to meet all of your banking needs.”
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, 2005. The company disclaims any obligation to publicly update or revise any forward-looking statements on the occurrence of future events, the receipt of new information of otherwise.
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