National Bancshares 8-K National Bancshares Reports Third Quarter Results

Exhibit 99.1

National Bancshares Reports Third Quarter Results

For Immediate Release October 20, 2006

ORRVILLE, Ohio, October 20, 2006 — National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported on their third quarter 2006.

Earnings results for third quarter of 2006 represent an improvement over second quarter 2006. However, net income for the first nine months of 2006 was down approximately 25% from the same period of 2005. This decline was primarily driven by a shrinking net interest margin, specifically attributed to an increase in cost of funds and a decline in National Bancshares loan portfolio.

Additionally, non-interest expenses continue to show an unfavorable variance versus 2005, primarily attributed to increased expenditures related to data processing and marketing. Total assets increased approximately $600 thousand as of September 30, 2006, compared to the same period in 2005. Commercial loan and residential real estate activity continues to slow. However, National Bancshares continues to experience favorable results with home equity and consumer loan products. Total deposits increased by over $600 thousand from September 30, 2005, as increasing interest rates attracted more time deposits. Moreover, repurchase agreements increased by $3.3 million when compared to September 30, 2005, a result of product enhancements made to cash management and sweep accounts.

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

NATIONAL BANCSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)

	September 30, 2006			September 30, 2005
ASSETS:
Cash and due from banks	$	9,051,279		$	10,925,095
Federal funds sold		7,565,000			9,710,000
Total cash and cash equivalents		16,616,279			20,635,095
Interest bearing deposits with banks		—			—
Securities available for sale		66,075,882			51,285,174
Securities held to maturity		16,878,721			17,699,878
Federal bank stock		3,085,250			2,954,850
Loans held for sale		—			50,000
Total loans		187,584,880			197,652,941
Less: allowance for loan losses		1,855,819			2,081,935
Loans, net		185,729,061			195,571,006
Accrued interest receivable		1,830,597			1,507,952
Premises and equipment		5,098,321			5,279,627
Other assets		9,213,844			8,946,982
TOTAL	$	304,527,955		$	303,930,564
LIABILITIES:
Deposits:
Demand	$	42,962,062		$	44,727,109
Savings and N.O.W.s		114,118,021			125,360,169
Time		87,633,010			74,017,069
Total deposits		244,713,093			244,104,347
Securities sold under repurchase agreements		7,316,921			4,020,843
Federal reserve note account		966,350			1,000,000
Federal Home Loan Bank advances		14,000,000			17,000,000
Accrued interest payable		850,616			573,223
Other liabilities		2,150,075			2,451,057
Total liabilities		269,997,055			269,149,470
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		20,046,365			19,725,701
Accumulated other comprehensive income		(463,412	)		107,446
Less: Treasury shares		(1,189,493	)		(1,189,493	)
Total shareholders’ equity		34,530,900			34,781,094
TOTAL	$	304,527,955		$	303,930,564

5

NATIONAL BANCSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For Nine Months Ended September 30, 2006 and September 30, 2005

	September 30, 2006		September 30, 2005
INTEREST & DIVIDEND INCOME:
Loans, including fees	$	9,397,909	$	9,056,078
Federal funds sold		270,689		107,181
Interest and dividends on investments
US government obligations		1,203,395		689,368
Obligations of states and political subdivisions		603,808		646,987
Other securities		1,255,494		1,339,869
Total interest & dividend income		12,731,295		11,839,483
INTEREST EXPENSE:
Deposits		3,537,770		2,181,958
Short term borrowings		143,998		50,566
Federal Home Loan Bank advances		613,989		671,456
Total interest expense		4,295,757		2,903,980
Net interest income		8,435,538		8,935,503
PROVISION FOR LOAN LOSSES		40,000		336,500
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		8,395,538		8,599,003
NONINTEREST INCOME		1,241,006		1,368,433
NONINTEREST EXPENSE:
Salaries and employee benefits		4,341,034		4,469,922
Net occupancy expense		518,280		573,894
Other expenses		3,528,078		3,232,574
Total noninterest expense		8,387,392		8,276,390
INCOME BEFORE INCOME TAXES		1,249,152		1,691,046
INCOME TAXES		197,573		290,392
NET INCOME	$	1,051,579	$	1,400,654
NET INCOME PER COMMON SHARE	$	0.47	$	0.63

6