Exhibit 99.1
PRESS RELEASE
Company: National Bancshares Corporation
OTC Bulletin Board - NBOH
Contact: Mark R. Witmer, President and CEO
Address: 112 West Market Street
Orrville, Ohio 44667
Phone: 330.682.1010
Fax: 330.682.4644
For Immediate Release: February 24, 2012
National Bancshares Corporation Announces 2011 Net Income of $2,612,000
Orrville, Ohio ~ National Bancshares Corporation, the holding company for
First National Bank, reported net income of $2,612,000 for the year ended
December 31, 2011, an increase of $1,287,000 or 97.1% from $1,325,000 in
2010. Earnings per share were $1.18 for 2011 compared to $0.60 for 2010.
Net income for the three months ended December 31, 2011 was $774,000
compared to $8,000 for the same period in 2010. For the fourth quarter,
basic and diluted earnings per share were $0.35 compared to $0.01 for
the fourth quarter of 2010.
Full-Year 2011 Business Highlights:
~ Net interest income for the year increased $1,081,000 to $13,363,000,
an increase of 8.8% compared to $12,282,000 for the same period in 2010,
the highest level of net interest income in the Bank`s history.
~ Visa check card interchange fees were $549,000 in 2011, an increase
of 24.2% compared to $442,000 in 2010.
~ Total loans increased $23.8 million or 12.3% from $193.3 million as
of December 31, 2010 to $217.1 million as of December 31, 2011.
~ Total deposits increased $31.5 million or 10.2% from $309.1 million
as of December 31, 2010 to $340.7 million as of December 31, 2011.
~ Federal Home Loan Bank advances decreased $7.0 million during 2011
as higher interest rate borrowings matured.
~ Shareholder`s equity increased $3.8 million or 9.7% to $42.7 million
as of December 31, 2011.
Full-Year 2011 Financial Summary:
Net interest income for 2011 was $13,363,000, an increase of 8.8% from
$12,282,000 for 2010. Net interest income was positively impacted by the
growth in average balances of loans, securities and lower-cost deposits,
partially offset by a decline in the yield on earning assets.
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The provision for loan losses decreased $1,629,000 from $2,229,000 in 2010
to $600,000 in 2011. The provision for loan losses in 2011 was primarily
related to the increase in loans while the provision in 2010 was primarily
related to charge-offs.
Noninterest income for 2011 decreased $158,000 or 5.0%, from $3,190,000
in 2010 to $3,032,000 in 2011. The change is primarily related to the
decrease in securities gains (losses), net partially offset by gains
on sale of SBA loans and the death benefit paid from a life insurance policy.
Noninterest expense for 2011 was $12,739,000, an increase of 7.5% from
$11,847,000 in 2010. The increase was driven by salaries and employee
benefits of $475,000, data processing of $127,000 and occupancy of
$249,000. The increase in salaries and employee benefits is primarily
related to an expansion of branch hours in late 2010.
December 31, 2011 Financial Condition:
Total assets increased 8.6% to $406.1 million as of December 31, 2011,
from $374.1 million at December 31, 2010. Securities available for sale
totaled $150.2 million as of December 31, 2011, compared to $138.0 million
at December 31, 2010. Loans, net of allowance for loan losses increased
$23.3 million to $214.0 million as of December 31, 2011, compared to
$190.7 million at December 31, 2010. Deposits increased 10.2% to
$340.7 million as of December 31, 2011, compared to $309.1 million at
December 31, 2010. Shareholders` equity increased 9.7% to $42.7 million
at the end of 2011, from $39.0 million at the end of 2010. Accumulated
other comprehensive income increased to $3.6 million as of
December 31, 2011, compared to $1.9 million as of December 31, 2010.
The change in accumulated other comprehensive income was a result of an
increase in unrealized gains on securities available for sale.
The allowance for loan losses increased from $2,585,000 as of
December 31, 2010 to $3,163,000 at December 31, 2011, or from 1.34% of
total loans at year-end 2010 to 1.46% at December 31, 2011. Net
charge-offs decreased from $2,550,000 in 2010 to $22,000 in 2011.
The provision for loan losses for 2011 was $600,000, compared to
$2,229,000 in 2010. The increase in the allowance for loan losses
in 2011 was primarily related to the increase in loans.
Total nonperforming loans decreased from $4.9 million as of
December 31, 2010 to $4.0 million at December 31, 2011.
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 90 days and still accruing decreased to
$634 thousand at December 31, 2011 from $1.3 million as of
December 31, 2010. In 2011, total classified loans decreased from
$12.5 million to $12.1 million. Management believes the allowance for
loan losses is adequate as of December 31, 2011.
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Fourth-Quarter 2011 Financial Summary:
Net interest income for the quarter ended December 31, 2011 was $3,457,000,
an increase of 17.2% from $2,949,000 for the same period in 2010.
Noninterest income for the three month period ended December 31, 2011
increased 15.9%, from $744,000 in 2010 to $862,000 in 2011. The change
is primarily related to $121,000 of income from the death benefit of an
insurance policy.
Noninterest expense for the quarter ended December 31, 2011 was $3,289,000,
an increase of 10.8% from $2,969,000 in 2010. The increase in noninterest
expense was due primarily to salaries and employee benefits, occupancy
expense and director pension expense being higher for the quarter ended
December 31, 2011, compared to the same period in 2010.
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, 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)
Dec 31, Sep 30, Jun 30, Mar 31, Dec 31,
2011 2011 2011 2011 2010
Cash and cash equivalents $ 15,634 $ 29,071 $ 31,694 $ 21,285 $ 12,837
Securities available for sale 150,175 144,008 135,926 133,049 138,033
Loans, net 213,952 207,096 203,255 196,610 190,685
Deposits 340,664 340,319 336,528 316,568 309,134
Repurchase agreements 10,168 10,071 8,782 7,658 7,747
Federal Home Loan Bank advances 8,000 9,000 9,000 12,000 15,000
Shareholders' equity 42,745 42,215 40,707 39,719 38,981
Total assets 406,086 407,059 398,787 379,025 374,096
Income Statement Data:
(dollars in thousands, except per
share data) Year ended
Dec 31, Dec 31,
2011 2010 Change
Interest income $ 15,413 $ 15,501 (0.6)%
Interest expense 2,050 3,219 (36.3)%
Net interest income 13,363 12,282 8.8 %
Provision for loan losses 600 2,229 (73.1)%
Net interest income after provision for
loan losses 12,763 10,053 27.0 %
Noninterest income 3,032 3,190 (5.0)%
Noninterest expense:
Salaries and employee benefits 6,025 5,550 8.6 %
Data processing 1,160 1,033 12.3 %
Net occupancy 1,480 1,231 20.2 %
Professional and consulting fees 637 685 (7.0)%
FDIC assessment 362 520 (30.4)%
Other 3,075 2,828 8.7 %
Total noninterest expense 12,739 11,847 7.5 %
Income before income taxes 3,056 1,396 118.9 %
Income taxes 444 71 525.4 %
Net income $ 2,612 $ 1,325 97.1 %
Earnings per share, basic and diluted $ 1.18 $ 0.60 96.7 %
Weighted average shares outstanding 2,211,508 2,205,973
Income Statement Data:
(dollars in thousands, except per
share data) Three months ended
Dec 31, Dec 31,
2011 2010 Change
Interest income $ 3,926 $ 3,074 6.0 %
Interest expense 469 755 (37.9)%
Net interest income 3,457 2,949 17.2 %
Provision for loan losses 153 879 (82.6)%
Net interest income after provision for
loan losses 3,304 2,070 59.6 %
Noninterest income 862 744 15.9 %
Noninterest expense:
Salaries and employee benefits 1,555 1,435 8.4 %
Data processing 295 275 7.3 %
Net occupancy 367 314 16.9 %
Professional and consulting fees 140 115 21.7 %
FDIC assessment 60 122 (50.8)%
Other 872 708 23.2 %
Total noninterest expense 3,289 2,969 10.8 %
Income (loss) before income taxes 877 (155) nm
Income tax expense (benefit) 103 (163) nm
Net income $ 774 $ 8 nm
Earnings per share, basic and diluted $ 0.35 $ 0.01 nm
Weighted average shares outstanding 2,213,269 2,205,973
nm - not meaningful
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Quarterly Earnings Summary (Unaudited)
Previous Eight Quarters:
(dollars in thousands, except per
share data)
Dec Sep Jun Mar
2011 2011 2011 2011
Interest income $ 3,926 $ 3,920 $ 3,892 $ 3,675
Interest expense 469 481 522 578
Net interest income 3,457 3,439 3,370 3,097
Provision for loan losses 153 150 150 147
Net interest income after provision for
loan losses 3,304 3,289 3,220 2,950
Noninterest income 862 817 621 732
Noninterest expense 3,289 3,156 3,148 3,146
Income (loss) before income taxes 877 950 693 536
Income tax expense (benefit) 103 188 104 49
Net income $ 774 $ 762 $ 589 $ 487
Earnings per share, basic and diluted $ 0.35 $ 0.34 $ 0.27 $ 0.22
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,213,269 2,213,269 2,209,717 2,209,717
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 tax expense (benefit) (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
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