National Bancshares 8-K National Bancshares Reports 2006 Results

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

Date:	February 26, 2007
Company:	National Bancshares Corporation
	112 West Market Street
	Orrville, Ohio 44667
Contact:	David C. Vernon
	President and CEO
Phone:	330.682.1010
Fax:	330.684.2154

National Bancshares Reports 2006 Results

Highlights

• Total assets increased 0.48% or $1.5 million during 2006 to $308.4 million at December 31, 2006.

• Total Loans decreased $7.1 million or 3.7% during 2006.

• Total deposits decreased by 0.72% or $1.8 million during 2006 to $247.7 million at December 31, 2006.

• Net interest income declined 6.57% or $785 thousand during 2006.

• Net income declined $936 thousand or $0.42 per basic and diluted share during 2006.

ORRVILLE, Ohio, February 26, 2007 — National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported results for the fiscal year ending December 31, 2006.

During 2006, net income decreased $936 thousand or 44.6% from $2.1 million in 2005 to $1.2 million in 2006. Basic and diluted earnings per share decreased from $0.94 per share in 2005 to $0.52 per share in 2006. The decline in net income is the result of increased interest expense, a decrease in noninterest income and increased noninterest expenses.

Total interest and dividend income increased $1.1 million or 6.7% over 2005. Interest and fees on loans increased by $376 thousand or 3.1%, because of the increase in interest rates on loans, even though total loans declined. During 2006, interest on Federal funds increased by $198 thousand or 82.0% due to increasing interest rates and more funds invested in this category. Investment security income (dividends and interest) increased by $507 thousand or 14.1% over 2005. Much of this increase is attributable to an increase in the balance of investment securities on hand throughout the year.

Interest expense increased by $1.9 million or 45.2% during 2006, as the Bank continued to experience a shift from lower interest rate deposits to higher paying interest rate deposits. This shift alone, accounted for a $1.8 million increase in interest expense. Additionally, interest on short-term borrowings increased $137 thousand or 156.4% as a result of an increase in repurchase agreements caused by business customers increasing their utilization of the Banks cash management services.

Noninterest income decreased $148 thousand or 8.2% during 2006. The decline resulted from fewer gains on securities sold, fewer gains realized from the sale of other real estate, decreased deposit fees and miscellaneous services, and decreased gains on the sale of loans, primarily mortgage loans.

Noninterest expenses increased $368 thousand or 3.4% during 2006. Much of the increase was attributed to non-recurring charges of $220 thousand for severance payments to the retired President and CEO, a $124 thousand charge for the impairment of real property owned, increased marketing expenses, and increased director’s pension plan expenses.

4

Balance Sheet Activity

Total assets increased $1.5 million or 0.5% from 2005 to 2006. This increase was a result of increased investment securities and an increase in Federal funds sold. Federal funds sold increased even though $3.0 million in Federal Home Loan Bank borrowing was repaid during 2006. The increase in securities and liquid assets was offset by a decline in net loans, and cash and due from banks. Net loans decreased by $7.1 million or 3.7% from 2005 to 2006. The decline resulted from loan payoffs and decreased loan demand. Much of the decline in net loans was attributed to a decline in real estate loans. Residential loans decreased by $4.9 million or 5.4% and commercial real estate loans decreased $1.9 million or 4.0% when comparing 2006 to 2005.

The allowance for loan losses increased $90 thousand or 4.7% during 2006 to $2.0 million at December 31, 2006. Although total loan balances declined, the portion of the provision that is directly associated with classified loans has increased slightly since December 2005.

Total investment securities increased by $9.0 million or 11.7% at December 31, 2006 when compared to December 31, 2005. The increase was funded by funds received from loan payoffs. In order to more effectively manage investment securities and to be in a better position to react to market conditions, at December 31, 2006, all investment securities are classified as available for sale.

Although total deposits declined by $1.8 million or 0.7%, due to a decline in savings and noninterest-bearing demand accounts, the increase in total liabilities of $1.5 million or 0.5% was the result of increased repurchase agreements caused by business customers increasing their use of the Bank’s cash management services, increased interest-bearing deposits and increased time deposits. During 2006, customers continued moving funds from low interest-bearing deposit accounts to higher interest-bearing deposit 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 onForm 10-K for the year ended December 31, 2006. 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, or otherwise.

5

NATIONAL BANCSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, 2006 and 2005

	2006			2005
ASSETS
Cash and due from banks	$	8,955,348		$	10,985,160
Federal funds sold		9,820,000			8,780,000
Total cash and cash equivalents		18,775,348			19,765,160
Securities available for sale		85,999,869			60,091,913
Securities held to maturity (fair value: 2005 - $17,115,020)		—			16,917,133
Federal bank stock		3,120,750			2,987,050
Loans, net of allowance for loan losses: 2006 - $1,993,077; 2005 - $1,902,828		184,481,374			191,538,419
Premises and equipment, net		5,548,672			5,201,211
Other real estate owned		103,334			103,334
Goodwill		4,722,775			4,722,775
Identified intangible assets		890,635			1,136,613
Accrued interest receivable		1,750,327			1,621,306
Cash surrender value of life insurance		2,498,708			2,415,910
Other assets		466,261			380,184
	$	308,358,053		$	306,881,008
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing	$	44,238,007		$	47,143,340
Interest-bearing		203,442,690			202,344,481
Total deposits		247,680,697			249,487,821
Repurchase agreements		7,901,666			2,359,521
Federal Reserve note account		842,819			592,763
Federal Home Loan Bank advances		14,000,000			17,000,000
Accrued expenses and other liabilities		3,252,601			2,787,478
Total liabilities		273,677,783			272,227,583
Shareholders’ equity
Common stock, no par value; 6,000,000 shares authorized; 2,289,528 shares issued		11,447,640			11,447,640
Additional paid-in capital		4,689,800			4,689,800
Retained earnings		19,901,163			20,067,339
Treasury stock, at cost (55,040 shares)		(1,189,493	)		(1,189,493	)
Accumulated other comprehensive income (loss)		(168,840	)		(361,861	)
Total shareholders’ equity		34,680,270			34,653,425
	$	308,358,053		$	306,881,008

6

NATIONAL BANCSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31, 2006, 2005 and 2004

	2006			2005		2004
Interest and dividend income
Loans, including fees	$	12,619,512		$	12,243,402	$	11,098,476
Federal funds sold		440,485			242,047		75,138
Securities:
Taxable		3,298,849			2,727,098		3,213,539
Nontaxable		797,701			862,648		924,846
Total interest and dividend income		17,156,547			16,075,195		15,311,999
Interest expense
Deposits		4,967,182			3,145,320		2,473,832
Short-term borrowings		224,866			87,712		15,037
Federal Home Loan Bank advances		803,105			895,357		857,453
Total interest expense		5,995,153			4,128,389		3,346,322
Net interest income		11,161,394			11,946,806		11,965,677
Provision for loan losses		160,000			159,233		177,500
Net interest income after provision for loan losses		11,001,394			11,787,573		11,788,177
Noninterest income
Checking account fees		985,131			970,329		790,928
Visa check card interchange fees		205,269			176,677		137,999
Deposit and miscellaneous service fees		170,051			197,825		153,646
Securities gains, net		43,469			109,035		432,915
Gain on sale of loans		17,315			43,548		67,379
Gain on sale of other real estate owned		(29,333	)		19,603		—
Other		261,360			284,183		312,446
Total noninterest income		1,653,262			1,801,200		1,895,313
Noninterest expense
Salaries and employee benefits		5,855,558			5,764,959		5,351,230
Data processing		920,216			870,954		815,870
Net occupancy		829,892			913,389		873,929
Marketing		416,721			301,154		181,526
Franchise tax		361,959			372,388		355,469
Maintenance and repairs		293,658			382,250		262,777
Telephone		262,720			227,788		215,372
Professional and consulting fees		248,588			272,476		166,200
Amortization of intangibles		245,978			249,964		267,509
Dues, subscriptions and fees		240,399			207,977		185,879
Director fees		213,277			152,122		139,611
Stationary, printing and office supplies		204,010			197,280		214,327
Postage, express and freight		178,058			173,191		158,610
Director pension		167,200			142,967		55,916
Loss on customer accounts		146,148			80,220		30,553
Impairment charge for property		124,087			—		—
Other		645,193			676,536		622,684
Total noninterest expense		11,353,662			10,985,615		9,897,462
Income before income taxes		1,300,994			2,603,158		3,786,028
Income tax expense		137,098			503,348		875,288
Net income	$	1,163,896		$	2,099,810	$	2,910,740
Weighted average common shares outstanding		2,234,488			2,234,488		2,234,488
Basic and diluted earnings per common share	$	0.52		$	0.94	$	1.30

7