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: October 28, 2011
National Bancshares Corporation Announces Third Quarter Earnings
Orrville, Ohio ~ National Bancshares Corporation, the holding company for
First National Bank, reported net income of $762,000 for the quarter ended
September 30, 2011, an increase of 29.4% from $589,000 for the previous
quarter. Earnings per share were $0.34 and $0.27 for the quarters ended
September 30 and June 30, 2011, respectively.
Third Quarter 2011 Business Highlights:
~ Net income for the quarter increased 29.4% to $762,000 from $589,000 in
the quarter ended June 30, 2011. Net income was $487,000 for the first
quarter of 2011.
~ Net interest income increased $69,000, or 2.0% compared to the quarter
ended June 30, 2011.
~ Loans, net of allowance for loan losses increased $16.4 million or 8.6%
from $190.7 million as of December 31, 2010 to $207.1 million at the end
of the third quarter.
~ Total deposits increased $31.2 million or 10.1% from $309.1 million as
of December 31, 2010 to $340.3 million as of September 30, 2011.
Year-to-Date 2011 Highlights:
Net income for the first nine months of 2011 increased 39.6% to $1,838,000
from $1,317,000 for the same period in 2010. Earnings per share were $0.83
and $0.60 for the nine months ended September 30, 2011 and 2010,
respectively. Net income was positively impacted by an increase in net
interest income and a decrease in the provision for loan losses partially
offset by a decrease in noninterest income and an increase in noninterest
expense.
Interest expense for the first nine months of 2011 decreased $883,000 or
35.8%, to $1,581,000 from $2,464,000 for the same period in 2010. The
Bank`s deposits and short-term borrowings have been affected by the
falling interest rate environment.
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Most of the growth in interest-bearing liabilities occurred in
interest-bearing demand deposit accounts. The cost of interest-bearing
demand deposits is relatively low compared to other interest-bearing
liabilities.
The provision for loan losses decreased $903,000 from $1,350,000 for the
three quarters ended September 30, 2010 to $447,000 for the same period
in 2011.
Noninterest expense for the first nine months of 2011 was $9,450,000, an
increase of 6.4% from $8,878,000 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.
September 30, 2011 Financial Condition:
Total assets increased 8.8% to $407.1 million at the end of the third
quarter from $374.1 million at December 31, 2010. Securities available
for sale totaled $144.0 million compared to $138.0 million at
December 31, 2010. Loans, net of allowance for loan losses increased
$16.4 million to $207.1 million compared to $190.7 million at
December 31, 2010. Deposits increased 10.1% to $340.3 million compared
to $309.1 million at December 31, 2010. Shareholders` equity increased
$3,234,000 or 8.3% 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 $3.7 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 $3,034,000 or from 1.34% of total loans at year-end
2010 to 1.44% at September 30, 2011. The provision for loan losses for
the first nine months of 2011 was $447,000, compared to $1,350,000 for
the same period in 2010. Total nonperforming loans decreased to
$4.1 million at September 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 $1.0 million as
of September 30, 2011. Adversely classified loans, including special
mention, doubtful and substandard, decreased from $12.5 million at
year-end 2010 to $10.7 million at September 30, 2011. Management
believes the allowance for loan losses is adequate as of
September 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
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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)
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2011 2011 2011 2010 2010
Cash and cash equivalents $ 29,071 $ 31,694 $ 21,285 $ 12,837 $ 21,805
Securities available for sale 144,008 135,926 133,049 138,033 131,799
Loans, net 207,096 203,255 196,610 190,685 195,004
Deposits 340,319 336,528 316,568 309,134 309,296
Repurchase agreements 10,071 8,782 7,658 7,747 6,551
Federal Home Loan Bank advances 9,000 9,000 12,000 15,000 25,000
Shareholders' equity 42,215 40,707 39,719 38,981 40,585
Total assets 407,059 398,787 379,025 374,096 385,108
Income Statement Data:
(dollars in thousands, except per
share data) Nine months ended
Sep 30, Sep 30,
2011 2010 Change
Interest income $ 11,487 $ 11,797 (2.6)%
Interest expense 1,581 2,464 (35.8)%
Net interest income 9,906 9,333 6.1 %
Provision for loan losses 447 1,350 (66.9)%
Net interest income after provision for
loan losses 9,459 7,983 18.5 %
Noninterest income 2,170 2,446 (11.3)%
Noninterest expense:
Salaries and employee benefits 4,470 4,115 8.6 %
Data processing 865 758 14.1 %
Net occupancy 1,113 917 21.4 %
Professional and consulting fees 497 570 (12.8)%
FDIC assessment 302 398 (24.1)%
Other 2,203 2,120 3.9 %
Total noninterest expense 9,450 8,878 6.4 %
Income before income taxes 2,179 1,551 40.5 %
Income taxes 341 234 45.7 %
Net income $ 1,838 $ 1,317 39.6 %
Earnings per share, basic and diluted $ 0.83 $ 0.60 38.3 %
Weighted average shares outstanding 2,210,914 2,205,973
Income Statement Data:
(dollars in thousands, except per
share data) Three months ended
Sep 30, Sep 30,
2011 2010 Change
Interest income $ 3,920 $ 3,919 0.0 %
Interest expense 481 799 (39.8)%
Net interest income 3,439 3,120 10.2 %
Provision for loan losses 150 228 (34.2)%
Net interest income after provision for
loan losses 3,289 2,892 13.7 %
Noninterest income 817 1,209 (32.4)%
Noninterest expense:
Salaries and employee benefits 1,521 1,380 10.2 %
Data processing 296 261 13.4 %
Net occupancy 368 319 15.4 %
Professional and consulting fees 171 178 (3.9)%
FDIC assessment 72 132 (45.5)%
Other 728 677 7.5 %
Total noninterest expense 3,156 2,947 7.1 %
Income before income taxes 950 1,154 (17.7)%
Income taxes 188 288 (34.7)%
Net income $ 762 $ 866 (12.0)%
Earnings per share, basic and diluted $ 0.34 $ 0.39 (12.8)%
Weighted average shares outstanding 2,213,269 2,205,973
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Quarterly Earnings Summary (Unaudited)
Previous Eight Quarters:
(dollars in thousands, except per
share data)
Sep Jun Mar Dec
2011 2011 2011 2010
Interest income $ 3,920 $ 3,892 $ 3,675 $ 3,704
Interest expense 481 522 578 755
Net interest income 3,439 3,370 3,097 2,949
Provision for loan losses 150 150 147 879
Net interest income after provision for
loan losses 3,289 3,220 2,950 2,070
Noninterest income 817 621 732 744
Noninterest expense 3,156 3,148 3,146 2,969
Income (loss) before income taxes 950 693 536 (155)
Income taxes 188 104 49 (163)
Net income $ 762 $ 589 $ 487 $ 8
Earnings per share, basic and diluted $ 0.34 $ 0.27 $ 0.22 $ 0.01
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,213,269 2,209,717 2,209,717 2,205,973
Sep Jun Mar Dec
2010 2010 2010 2009
Interest income $ 3,919 $ 3,920 $ 3,958 $ 4,082
Interest expense 799 819 846 932
Net interest income 3,120 3,101 3,112 3,150
Provision for loan losses 228 615 507 902
Net interest income after provision for
loan losses 2,892 2,486 2,605 2,248
Noninterest income 1,209 612 625 976
Noninterest expense 2,947 3,002 2,929 2,878
Income before income taxes 1,154 96 301 346
Income taxes 288 (62) 8 31
Net income $ 866 $ 158 $ 293 $ 315
Earnings per share, basic and diluted $ 0.39 $ 0.07 $ 0.13 $ 0.14
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 2,202,721
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