PRESS RELEASE
Date: | May 16, 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 First Quarter 2007 Results
ORRVILLE, Ohio, May 16, 2007 – National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported on their first quarter 2007.
Earnings per share for the first quarter of 2007 declined 44% compared to first quarter 2006. Net income for the first three months of 2007 was $286,953 compared to $508,120 for the first three months of 2006 or $.13 and $.23 per share respectively. The decline was caused by a decline in the net interest margin. The net interest margin decline was caused by an increase in the cost of funds which was not offset by increased interest income from loans. Loan interest income increased slightly but the increase was diminished back by lower loan volume. Commercial loan and residential real estate loan activity remained slow. However, National Bancshares continued to experience favorable results with installment loans as a result of indirect automobile lending.
Non-interest expenses were down versus 2006 due to decreased salaries and employee benefits and marketing expense. Total assets decreased approximately $800 thousand as of March 31, 2007, compared to December 31, 2006. Total deposits increased by over $200 thousand from December 31, 2006.
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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NATIONAL BANCSHARES CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||
March 31, 2007 | March 31, 2006 | |||||||
ASSETS: | ||||||||
Cash and due from banks | $ | 11,216,772 | $ | 10,365,467 | ||||
Federal funds sold | 9,281,000 | 10,435,000 | ||||||
Total cash and cash equivalents | 20,497,772 | 20,800,467 | ||||||
Interest bearing deposits with banks | 5,000,000 | — | ||||||
Securities available for sale | 79,218,572 | 61,296,624 | ||||||
Securities held to maturity | — | 16,906,977 | ||||||
Federal bank stock | 3,120,750 | 3,018,950 | ||||||
Loans held for sale | 90,000 | — | ||||||
Total loans (excluding unearned | ||||||||
income) | 186,167,574 | 189,143,778 | ||||||
Less: allowance for | ||||||||
loan losses | 2,019,447 | 1,857,807 | ||||||
Loans, net | 184,148,127 | 187,285,971 | ||||||
Accrued interest receivable | 1,458,604 | 1,690,698 | ||||||
Premises and equipment | 5,222,965 | 5,155,549 | ||||||
Other assets | 8,802,256 | 9,136,030 | ||||||
TOTAL | $ | 307,559,046 | $ | 305,291,266 | ||||
LIABILITIES: | ||||||||
Deposits: | ||||||||
Demand | $ | 45,673,810 | $ | 43,333,498 | ||||
Savings and N.O.W.s | 112,736,052 | 118,917,298 | ||||||
Time | 89,509,917 | 82,928,930 | ||||||
Total deposits | 247,919,779 | 245,179,726 | ||||||
Securities sold under repurchase | ||||||||
agreements | 7,788,067 | 5,625,185 | ||||||
Federal reserve note account | 369,329 | 69,128 | ||||||
Federal Home Loan Bank advances | 14,000,000 | 17,000,000 | ||||||
Accrued interest payable | 1,047,587 | 777,540 | ||||||
Other liabilities | 1,829,748 | 2,100,991 | ||||||
Total liabilities | 272,954,510 | 270,752,570 | ||||||
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 | 19,830,599 | 20,217,942 | ||||||
Accumulated other comprehensive | ||||||||
income | (174,010 | ) | (627,193 | ) | ||||
Less: Treasury shares, 55,040 shares, at cost | (1,189,493 | ) | (1,189,493 | ) | ||||
Total shareholders’ equity | 34,604,536 | 34,538,696 | ||||||
TOTAL | $ | 307,559,046 | $ | 305,291,266 | ||||
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NATIONAL BANCSHARES CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||
For Three Months Ended March 31, 2007 and March 31, 2006 | ||||||||
March 31, 2007 | March 31, 2006 | |||||||
INTEREST & DIVIDEND INCOME: | ||||||||
Loans, including fees | $ | 3,183,444 | $ | 3,123,577 | ||||
Federal funds sold | 149,645 | 75,520 | ||||||
Interest and dividends on investments | ||||||||
US government obligations | 483,141 | 352,725 | ||||||
Obligations of states and | ||||||||
political subdivisions | 176,400 | 201,074 | ||||||
Other securities | 359,261 | 412,804 | ||||||
Total interest & dividend income | 4,351,891 | 4,165,700 | ||||||
INTEREST EXPENSE: | ||||||||
Deposits | 1,446,064 | 1,026,690 | ||||||
Short term borrowings | 78,503 | 25,327 | ||||||
Federal Home Loan Bank advances | 185,005 | 219,033 | ||||||
Total interest expense | 1,709,572 | 1,271,050 | ||||||
Net interest income | 2,642,319 | 2,894,650 | ||||||
PROVISION FOR LOAN LOSSES | 27,000 | — | ||||||
NET INTEREST INCOME AFTER PROVISION | ||||||||
FOR LOAN LOSSES | 2,615,319 | 2,894,650 | ||||||
NONINTEREST INCOME | 410,926 | 433,990 | ||||||
NONINTEREST EXPENSE: | ||||||||
Salaries and employee benefits | 1,365,466 | 1,429,080 | ||||||
Net occupancy expense | 195,678 | 163,025 | ||||||
Other expenses | 1,110,658 | 1,124,614 | ||||||
Total noninterest expense | 2,671,802 | 2,716,719 | ||||||
INCOME BEFORE INCOME TAXES | 354,443 | 611,921 | ||||||
INCOME TAXES | 67,490 | 103,801 | ||||||
NET INCOME | $ | 286,953 | $ | 508,120 | ||||
NET INCOME PER COMMON SHARE | $ | 0.13 | $ | 0.23 | ||||
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