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: July 29, 2011
National Bancshares Corporation Announces Second Quarter Earnings
Orrville, Ohio ~ National Bancshares Corporation, the holding company for
First National Bank, reported net income of $589,000 for the quarter ended
June 30, 2011, an increase of 272.8% from $158,000 for the same period in
2010. Earnings per share were $0.27 and $0.07 for June 30, 2011 and 2010,
respectively.
Second Quarter 2011 Business Highlights:
~ Net income for the quarter increased 272.8% to $589,000 from $158,000
in 2010.
~ Net interest income increased $269,000, or 8.7%. The increase was driven
by a $297,000 or 36.3% reduction in interest expense offset by a $28,000
or 0.7% decline in interest income.
~ The provision for loan losses decreased 75.6% to $150,000 from $615,000
in the same period in 2010.
~ Loans, net of allowance for loan losses increased $12.6 million or 6.6%
from $190.7 million as of December 31, 2010 to $203.3 million at the end
of the second quarter.
~ Total deposits increased $27.4 million or 8.9% from $309.1 million as of
December 31, 2010 to $336.5 million as of June 30, 2011.
Year-to-Date 2011 Highlights:
Net income for the first half of 2011 increased 138.6% to $1,076,000 from
$451,000 for the same period in 2010. Net income was positively impacted by
an increase in net interest income, an increase in noninterest income and a
decrease in the provision for loan losses partially offset by an increase
in noninterest expense.
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Noninterest income for the first half increased $116,000 or 9.4%, to
$1,353,000 from $1,237,000 in the same period in 2010.
Noninterest expense for the first half of 2011 was $6,294,000, an increase
of 6.1% from $5,931,000 for the same period in 2010. The change was due
primarily to an increase in salaries and benefit expense, data processing
expense and occupancy expense.
June 30, 2011 Financial Condition:
Total assets increased 6.6% to $398.8 million at the end of the second
quarter from $374.1 million at December 31, 2010. Securities available
for sale totaled $136.0 million compared to $138.0 million at
December 31, 2010. Loans, net of allowance for loan losses increased
$12.6 million to $203.3 million compared to $190.7 million at
December 31, 2010. Deposits increased 8.9% to $336.5 million compared to
$309.1 million at December 31, 2010. Shareholders` equity increased
$1,726,000 or 4.4% from the end of 2010. Accumulated other comprehensive
income, which is the unrealized gain on securities classified as available
for sale, net of tax, increased to $2.9 million compared to $1.9 million
as of year-end 2010.
The allowance for loan losses increased from $2,585,000 as of
December 31, 2010 to $2,881,000 or from 1.34% of total loans at year-end
2010 to 1.40% at June 30, 2011. The provision for loan losses for the first
half of 2011 was $297,000, compared to $1,122,000 for the same period in
2010. Total nonperforming loans decreased to $4.5 million at June 30, 2011
compared to $4.9 million as of year-end 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 30 through 89 days and still
accruing, decreased from $1.3 million at the end of 2010 to $1.2 million
as of June 30, 2011. Adversely classified loans, including special mention,
doubtful and substandard, decreased from $12.5 million at year-end 2010 to
$11.7 million at June 30, 2011. Management believes the allowance for loan
losses is adequate as of June 30, 2011.
National Bancshares Corporation`s subsidiary, First National Bank, is
headquartered in Orrville, Ohio with fourteen full service offices located
in Orrville, Massillon, Wooster, Apple Creek, Dalton, Fairlawn, Kidron,
Lodi, Mt. Eaton, Seville and Smithville and a loan production office in
Salem, Ohio.
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, 2010. The Company assumes no obligation to update any
forward-looking statement.
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Selected Consolidated Financial Data (Unaudited)
Balance Sheet Data:
(dollars in thousands)
Jun 30, Mar 31, Dec 31, Sep 30, Jun 30,
2011 2011 2010 2010 2010
Cash and cash equivalents $ 31,694 $ 21,285 $ 12,837 $ 21,805 $ 25,975
Securities available for sale 135,926 133,049 138,033 131,799 131,734
Loans, net 203,255 196,610 190,685 195,004 191,078
Deposits 336,528 316,568 309,134 309,296 309,080
Repurchase agreements 8,782 7,658 7,747 6,551 6,980
Federal Home Loan Bank advances 9,000 12,000 15,000 25,000 25,000
Shareholders' equity 40,707 39,719 38,981 40,585 39,977
Total assets 398,787 379,025 374,096 385,108 384,340
Income Statement Data:
(dollars in thousands, except per
share data) Six months ended
Jun 30, Jun 30,
2011 2010 Change
Interest income $ 7,567 $ 7,878 (3.9)%
Interest expense 1,100 1,665 (33.9)%
Net interest income 6,467 6,213 4.1 %
Provision for loan losses 297 1,122 (73.5)%
Net interest income after provision for
loan losses 6,170 5,091 21.2 %
Noninterest income 1,353 1,237 9.4 %
Noninterest expense:
Salaries and employee benefits 2,949 2,735 7.8 %
Data processing 569 497 14.5 %
Net occupancy 745 598 24.6 %
Professional and consulting fees 326 392 (16.8)%
FDIC assessment 230 266 (13.5)%
Other 1,475 1,443 2.2 %
Total noninterest expense 6,294 5,931 6.1 %
Income before income taxes 1,229 397 209.6 %
Income taxes 153 (54) 383.3 %
Net income $ 1,076 $ 451 138.6 %
Earnings per share, basic and diluted $ 0.49 $ 0.20 145.0 %
Weighted average shares outstanding 2,209,717 2,205,973
Income Statement Data:
(dollars in thousands, except per
share data) Three months ended
Jun 30, Jun 30,
2011 2010 Change
Interest income $ 3,892 $ 3,920 (0.7)%
Interest expense 522 819 (36.3)%
Net interest income 3,370 3,101 8.7 %
Provision for loan losses 150 615 (75.6)%
Net interest income after provision for
loan losses 3,220 2,486 29.5 %
Noninterest income 621 612 1.5 %
Noninterest expense:
Salaries and employee benefits 1,455 1,357 7.2 %
Data processing 286 256 11.7 %
Net occupancy 378 304 24.3 %
Professional and consulting fees 176 210 (16.2)%
FDIC assessment 94 145 (35.2)%
Other 759 730 4.0 %
Total noninterest expense 3,148 3,002 4.9 %
Income before income taxes 693 96 621.9 %
Income taxes 104 (62) 267.7 %
Net income $ 589 $ 158 272.8 %
Earnings per share, basic and diluted $ 0.27 $ 0.07 285.7 %
Weighted average shares outstanding 2,209,717 2,205,973
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Quarterly Earnings Summary (Unaudited)
Previous Eight Quarters:
(dollars in thousands, except per
share data)
Jun Mar Dec Sep
2011 2011 2010 2010
Interest income $ 3,892 $ 3,675 $ 3,704 $ 3,919
Interest expense 522 578 755 799
Net interest income 3,370 3,097 2,949 3,120
Provision for loan losses 150 147 879 228
Net interest income after provision for
loan losses 3,220 2,950 2,070 2,892
Noninterest income 621 732 744 1,209
Noninterest expense 3,148 3,146 2,969 2,947
Income (loss) before income taxes 693 536 (155) 1,154
Income taxes 104 49 (163) 288
Net income $ 589 $ 487 $ 8 $ 866
Earnings per share, basic and diluted $ 0.27 $ 0.22 $ 0.01 $ 0.39
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,209,717 2,209,717 2,205,973 2,205,973
Jun Mar Dec Sep
2010 2010 2009 2009
Interest income $ 3,920 $ 3,958 $ 4,082 $ 4,026
Interest expense 819 846 932 954
Net interest income 3,101 3,112 3,150 3,072
Provision for loan losses 615 507 902 576
Net interest income after provision for
loan losses 2,486 2,605 2,248 2,496
Noninterest income 612 625 976 595
Noninterest expense 3,002 2,929 2,878 2,806
Income before income taxes 96 301 346 285
Income taxes (62) 8 31 18
Net income $ 158 $ 293 $ 315 $ 267
Earnings per share, basic and diluted $ 0.07 $ 0.13 $ 0.14 $ 0.12
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,205,973 2,205,973 2,202,721 2,202,368
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