Exhibit 99.1
PRESS RELEASE
Company: National Bancshares Corporation
OTC Bulletin Board - NBOH
Contact: David C. Vernon, President and CEO
Address: 112 West Market Street
Orrville, Ohio 44667
Phone: 330.682.1010
Fax: 330.682.4644
For Immediate Release: March 11, 2011
National Bancshares Corporation Announces 2010 Net Income of $1,325,000
Orrville, Ohio ~ National Bancshares Corporation, the holding company for
First National Bank, reported net income of $1,325,000 for the year ended
December 31, 2010, a decrease of $284,000 or 17.7% from $1,609,000 in 2009.
Per share earnings were $0.60 for 2010 compared to $0.73 for 2009. Net
income for the three months ended December 31, 2010 was $8,000 compared
to $315,000 for the same period in 2009. For the fourth quarter basic
and diluted earnings per share were $0.01 compared to $0.14 for the fourth
quarter of 2009.
Full-Year 2010 Business Highlights:
~ Net interest income for the year increased $54,000 to $12,282,000, an
increase of 0.4% compared to $12,228,000 for the same period in 2009,
the highest level of net interest income in the Bank`s history.
~ Visa check card interchange fees were $442,000 in 2010, an increase
of 25.2% compared to $353,000 in 2009.
~ New commercial loans totaled approximately $24,000,000 and fee income
from commercial loans was $247,000.
~ Total deposits increased $17.8 million or 6.1% from $291.4 million as of
December 31, 2009 to $309.1 million as of December 31, 2010.
~ Federal Home Loan Bank advances decreased $12.0 million during 2010 as
high interest rate borrowings were paid off at maturity.
Full-Year 2010 Financial Summary:
Net interest income for 2010 was $12,282,000, an increase of 0.4% from
$12,228,000 for 2009. Net interest income was positively impacted by the
growth in average balances of loans, securities and deposits and a decrease
in the cost of funds, partially offset by a decline in the yield on earning
assets.
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Earnings for 2010 were negatively impacted by the $2,229,000 provision for
loan losses, an increase of $400,000 compared to the same period in 2009.
The increase in the provision was primarily related to charge offs totaling
$1,663,000 for two commercial loans.
Noninterest income for 2010 increased $218,000 or 7.3%, from $2,972,000 in
2009 to $3,190,000 in 2010. The change is primarily related to the increase
in income from visa check card interchange fees, checking account fees and
deposit account service fees.
Noninterest expense for 2010 was $11,847,000, an increase of 4.3% from
$11,364,000 in 2009. The increase was driven by salaries and employee
benefits of $271,000, data processing of $124,000, occupancy of $175,000
and professional and consulting fees of $103,000 offset by reductions in
other noninterest expense categories.
December 31, 2010 Financial Condition:
Total assets increased 1.0% to $374.1 million as of December 31, 2010, from
$370.2 million at December 31, 2009. Securities available for sale totaled
$138.0 million as of December 31, 2010, compared to $130.2 million at
December 31, 2009. Loans, net of allowance for loan losses decreased
$3.4 million to $190.7 million as of December 31, 2010, compared to
$194.1 million at December 31, 2009. Deposits increased 6.1% to
$309.1 million as of December 31, 2010, compared to $291.4 million at
December 31, 2009. Shareholders` equity increased 0.2% to $39.0 million at
the end of 2010, from $38.9 million at the end of 2009. Accumulated other
comprehensive income decreased to $1.9 million as of December 31, 2010,
compared to $2.5 million as of December 31, 2009. The change in accumulated
other comprehensive income was a result of a decrease in unrealized gains
on securities available for sale.
The allowance for loan losses decreased from $2,906,000 as of
December 31, 2009 to $2,585,000 at December 31, 2010, or from 1.48% of total
loans at year-end 2009 to 1.34% at December 31, 2010. The provision for loan
losses for 2010 was $2,229,000, compared to $1,829,000 in 2009. Total
nonperforming loans decreased from $5.2 million as of December 31, 2009 to
$4.9 million at December 31, 2010. Non-performing loans consist of loans
placed on non-accrual status and loans past due over 90 days and still
accruing interest. Loans past due between 30 and 89 days remained constant
at $1.7 million as of December 31, 2010 and 2009. In 2010, total classified
loans decreased from $14.6 million to $12.5 million. Management believes the
allowance for loan losses is adequate as of December 31, 2010.
Fourth-Quarter 2010 Financial Summary:
Net interest income for the quarter ended December 31, 2010 was $2,949,000,
a decrease of 6.4% from $3,150,000 for the same period in 2009.
Earnings for the quarter were negatively impacted by the $879,000 of
provision for loan losses. The provision for the quarter was primarily
related to a $463,000 partial charge-off of a line of credit to a
construction company.
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Noninterest income for the three month period ended December 31, 2010
decreased 23.8%, from $976,000 in 2009 to $744,000 in 2010. The change
is primarily related to a decline in net gains recorded on the sale of
securities from $383,000 in the quarter ended December 31, 2009, compared
to $45,000 for the same period in 2010.
Noninterest expense for the quarter ended December 31, 2010 was $2,969,000,
an increase of 3.2% from $2,878,000 in 2009. The increase in noninterest
expense was due primarily to salaries and employee benefits, data processing
and occupancy expense being slightly higher for the quarter ended
December 31, 2010, compared to the same period in 2009.
National Bancshares Corporation`s subsidiary, First National Bank, is
headquartered in Orrville, Ohio with fourteen banking offices in Orrville,
Massillon, Wooster, Apple Creek, Dalton, Fairlawn, Kidron, Lodi, Mt. Eaton,
Seville and Smithville.
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 subject to many risks and
uncertainties. Actual results could differ materially from those indicated
by the forward-looking statements. These include factors such as 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 U.S. Securities and Exchange Commission,
including its Annual Report on Form 10-K for the year ended
December 31, 2009. The Company assumes no obligation to update any
forward-looking statement.
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Selected Consolidated Financial Data
Balance Sheet Data:
(dollars in thousands)
Dec 30, Sep 30, Jun 30, Mar 31, Dec 31,
2010 2010 2010 2010 2009
Cash and cash equivalents $ 12,837 $ 21,805 $ 25,975 $ 28,832 $ 8,124
Securities available for sale 138,033 131,799 131,734 123,539 130,241
Loans, net 190,685 195,004 191,078 191,483 194,071
Deposits 309,134 309,296 309,080 306,006 291,373
Repurchase agreements 7,747 6,551 6,980 6,893 6,105
Federal Home Loan Bank advances 15,000 25,000 25,000 25,000 27,000
Shareholders' equity 38,981 40,585 39,977 39,666 38,903
Total assets 374,096 385,108 384,340 381,325 370,228
Income Statement Data:
(dollars in thousands, except per
share data) Year ended
Dec 31, Dec 31,
2010 2009 Change
Interest income $ 15,501 $ 16,465 (5.9)%
Interest expense 3,219 4,237 (24.0)%
Net interest income 12,282 12,228 0.4 %
Provision for loan losses 2,229 1,829 21.9 %
Net interest income after provision for
loan losses 10,053 10,399 (3.3)%
Noninterest income 3,190 2,972 7.3 %
Noninterest expense:
Salaries and employee benefits 5,550 5,279 5.1 %
Data processing 1,033 909 13.6 %
Net occupancy 1,231 1,056 16.6 %
Professional and consulting fees 685 582 17.7 %
FDIC assessment 520 605 (14.0)%
Other 2,828 2,933 (3.6)%
Total noninterest expense 11,847 11,364 4.3 %
Income before income taxes 1,396 2,007 (30.4)%
Income taxes 71 398 (82.2)%
Net income $ 1,325 $ 1,609 (17.7)%
Earnings per share, basic and diluted $ 0.60 $ 0.73 (17.8)%
Weighted average shares outstanding 2,205,973 2,202,457
Income Statement Data:
(dollars in thousands, except per
share data) Three months ended
Dec 31, Dec 31,
2010 2009 Change
Interest income $ 3,704 $ 4,082 (9.3)%
Interest expense 755 932 (19.0)%
Net interest income 2,949 3,150 (6.4)%
Provision for loan losses 879 902 (2.5)%
Net interest income after provision for
loan losses 2,070 2,248 (7.9)%
Noninterest income 744 976 (23.8)%
Noninterest expense:
Salaries and employee benefits 1,435 1,276 12.5 %
Data processing 275 239 15.1 %
Net occupancy 314 267 17.6 %
Professional and consulting fees 115 180 (36.1)%
FDIC assessment 122 93 31.2 %
Other 708 823 (14.0)%
Total noninterest expense 2,969 2,878 3.2 %
Income (loss) before income taxes (155) 346 (144.8)%
Income taxes (163) 31 (625.8)%
Net income $ 8 $ 315 (97.5)%
Earnings per share, basic and diluted $ 0.01 $ 0.14 (92.9)%
Weighted average shares outstanding 2,205,973 2,202,721
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Quarterly Earnings Summary
Previous Eight Quarters:
(dollars in thousands, except per
share data)
Dec Sep Jun Mar
2010 2010 2010 2010
Interest income $ 3,704 $ 3,919 $ 3,920 $ 3,958
Interest expense 755 799 819 846
Net interest income 2,949 3,120 3,101 3,112
Provision for loan losses 879 228 615 507
Net interest income after provision for
loan losses 2,070 2,892 2,486 2,605
Noninterest income 744 1,209 612 625
Noninterest expense 2,969 2,947 3,002 2,929
Income (loss) before income taxes (155) 1,154 96 301
Income taxes (163) 288 (62) 8
Net income $ 8 $ 866 $ 158 $ 293
Earnings per share, basic and diluted $ 0.01 $ 0.39 $ 0.07 $ 0.13
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,205,973 2,205,973 2,205,973 2,205,973
Dec Sep Jun Mar
2009 2009 2009 2009
Interest income $ 4,082 $ 4,026 $ 4,149 $ 4,208
Interest expense 932 954 1,136 1,215
Net interest income 3,150 3,072 3,013 2,993
Provision for loan losses 902 576 228 123
Net interest income after provision for
loan losses 2,248 2,496 2,785 2,870
Noninterest income 976 595 756 645
Noninterest expense 2,878 2,806 2,945 2,735
Income before income taxes 346 285 596 780
Income taxes 31 18 142 207
Net income $ 315 $ 267 $ 454 $ 573
Earnings per share, basic and diluted $ 0.14 $ 0.12 $ 0.21 $ 0.26
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,202,721 2,202,368 2,202,368 2,202,368
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