Exhibit 99.1
| | |
| PRESS RELEASE | | July 20, 2006 |
ORRVILLE, Ohio, July 20, 2006 — National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported on their second quarter 2006.
“Earning results for the second quarter of 2006 were disappointing”, said Charles J. Dolezal, President. “Net income for the first six months of 2006 was down approximately 30% from the same period of the previous year. This decline was driven by an increase in marketing expenses, as well as a decline in our loan portfolio and an increase in our cost of funds. The increase in marketing expenditures is fueling a strategic realignment of our marketing efforts to target long run benefits from these initiatives,” explained Dolezal. “Total assets as of June 30, 2006 were somewhat flat when compared to the end of the second quarter of the previous year. Net loans declined by over $13 million during this period, as commercial loan activity slowed and we initiated more sales of fixed rate mortgage loans into the secondary market. Total deposits increased by over $1.6 million from June 30, 2005, as increasing interest rates attracted more time deposits.”
Dolezal concluded, “As First National Bank celebrates 125 years of serving its communities, I, also, am celebrating a milestone. This year marks my 30th anniversary with First National and my 25th year serving as President and CEO. There have been many changes here during the past 30 years. The bank has grown fivefold. We have experienced branch and bank acquisitions. We opened two new branch offices as well as an operations center. Our holding company, National Bancshares Corporation, was formed. We started a partially owned title company, First Kropf Title and sold a partially owned data processing company, Bancamation, Inc. Many new lines of loan and deposit products have been initiated, while some were discontinued. We have experienced many changes with new laws and regulations, which necessitate changing the way we do business. We have seen many economic changes, particularly in interest rates, from the double-digit rates of the early eighties to the low single digit rates of recent years. Over these past 30 years there have been many changes and many challenges. Through them all, it has been a privilege serving you. Now, it is time for me to move on. At the annual meeting of shareholders on April 27th, I announced my retirement from First National Bank. I will continue to be with the organization until around the end of October to help facilitate a transition to a new President and CEO. I will be moving on to the next phase of my career as I evaluate new challenges and opportunities elsewhere. I thank you for your support over these many years and wish the board, management and the staff all the best in the years to come.”
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.
4
