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: April 19, 2012
National Bancshares Corporation Announces First Quarter Earnings
Orrville, Ohio ~ National Bancshares Corporation, the holding company
for First National Bank, reported net income of $700,000 for the quarter
ended March 31, 2012, an increase from $487,000 for the same period in
2011. Earnings per share were $0.32 and $0.22 for March 31, 2012 and 2011,
respectively.
First Quarter 2012 Business Highlights:
~ Net income for the quarter increased 44% to $700,000 from $487,000 for
the same period in 2011.
~ Net interest income for the quarter ended March 31, 2012 was $3,397,000,
an increase of $300,000 or 10% compared to $3,097,000 in the same period
in 2011.
~ Noninterest expense decreased 3% to $3,046,000.
~ Loans, net of allowance for loan losses increased $8.4 million or 4%
from $213.9 million as of December 31, 2011 to $222.3 million as of
March 31, 2012.
~ Total deposits increased $11.7 million or 3% from $340.7 million as of
December 31, 2011 to $352.4 million as of March 31, 2012.
First Quarter 2012 Financial Summary:
Net income for the quarter increased 44% to $700,000 from $487,000 for
the same period in 2011. Earnings for the quarter were positively impacted
by the $300,000 increase in net interest income and a $100,000 decrease
in noninterest expense.
Noninterest income for the quarter decreased to $636,000 or 13%, from
$732,000 for the same period in 2011. The change is primarily related to
$128,000 of gains recorded in 2011 on the sale of the guaranteed portion
of five Small Business Administration (SBA) loans.
1
Noninterest expense for the quarter was $3,046,000, a decrease of 3% from
$3,146,000 for the same period in 2011. The change was due primarily to a
decrease in professional and consulting expense and the FDIC assessment
expense.
March 31, 2012 Financial Condition:
Total assets increased 3% to $417.7 million as of March 31, 2012, from
$406.1 million at December 31, 2011. Securities available for sale totaled
$145.9 million compared to $150.2 million at December 31, 2011. Loans,
net of allowance for loan losses increased $8.4 million to $222.3 million
compared to $213.9 million at December 31, 2011. Deposits increased 3% to
$352.4 million compared to $340.7 million at December 31, 2011.
Shareholders` equity increased 1% to $43.2 million from $42.7 million at
the end of 2011. Accumulated other comprehensive income, which is the
unrealized gain on securities classified as available for sale, net of tax,
decreased to $3.5 million compared to $3.6 million as of December 31, 2011.
The allowance for loan losses increased from $3,163,000 as of
December 31, 2011 to $3,184,000 or from 1.46% of total loans at year-end
2011 to 1.41% at March 31, 2012. The provision for loan losses for the
quarter was $149,000, compared to $147,000 for the same period in 2011.
Total nonperforming loans decreased from $4.0 million as of
December 31, 2011 to $3.5 million at March 31, 2012. Non-performing loans
consist of loans placed on non-accrual status and loans past due 90 or
more days and still accruing interest. Loans past due 30 through 89 days
and still accruing, increased from $641,000 to $705,000 as of
March 31, 2012. Adversely classified loans, including special mention,
substandard and doubtful, decreased from $12.1 million at December 31, 2011
to $10.9 million at March 31, 2012. Management believes the allowance for
loan losses is adequate as of March 31, 2012.
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, 2011. The Company assumes no obligation to update any
forward-looking statement.
2
Selected Consolidated Financial Data (Unaudited)
Balance Sheet Data:
(dollars in thousands)
Mar 31, Dec 31, Sep 30, Jun 30, Mar 31,
2012 2011 2011 2011 2011
Cash and cash equivalents $ 23,125 $ 15,634 $ 29,071 $ 31,694 $ 21,285
Securities available for sale 145,930 150,175 144,008 135,926 133,049
Loans, net 222,346 213,952 207,096 203,255 193,610
Deposits 352,408 340,664 340,319 336,528 316,568
Repurchase agreements 9,816 10,168 10,071 8,782 7,658
Federal Home Loan Bank advances 8,000 8,000 9,000 9,000 12,000
Shareholders' equity 43,156 42,745 42,215 40,707 39,719
Total assets 417,731 406,086 407,059 398,787 379,025
Income Statement Data:
(dollars in thousands, except per
share data) Three months ended
Mar 31, Mar 31,
2012 2011 Change
Interest income $ 3,850 $ 3,675 4.8 %
Interest expense 453 578 (21.6)%
Net interest income 3,397 3,097 9.7 %
Provision for loan losses 149 147 1.4 %
Net interest income after provision for
loan losses 3,248 2,950 10.1 %
Noninterest income 636 732 (13.1)%
Noninterest expense:
Salaries and employee benefits 1,493 1,494 (0.1)%
Data processing 295 283 4.2 %
Net occupancy 353 367 (3.8)%
Professional and consulting fees 97 150 (35.3)%
FDIC assessment 78 136 (42.6)%
Other 730 716 2.0 %
Total noninterest expense 3,046 3,146 (3.2)%
Income before income taxes 838 536 56.3 %
Income taxes 138 49 181.6 %
Net income $ 700 $ 487 43.7 %
Earnings per share, basic and diluted $ 0.32 $ 0.22 45.5 %
Weighted average shares outstanding 2,216,526 2,209,717
3
Quarterly Earnings Summary (Unaudited)
Previous Eight Quarters:
(dollars in thousands, except per
share data)
Mar Dec Sep Jun
2012 2011 2011 2011
Interest income $ 3,850 $ 3,926 $ 3,920 $ 3,892
Interest expense 453 469 481 522
Net interest income 3,397 3,457 3,439 3,370
Provision for loan losses 149 153 150 150
Net interest income after provision for
loan losses 3,248 3,304 3,289 3,220
Noninterest income 636 862 817 621
Noninterest expense 3,046 3,289 3,156 3,148
Income (loss) before income taxes 838 877 950 693
Income tax expense (benefit) 138 103 188 104
Net income $ 700 $ 774 $ 762 $ 589
Earnings per share:
Basic and diluted $ 0.32 $ 0.35 $ 0.34 $ 0.27
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,216,526 2,213,269 2,213,269 2,209,717
Mar Dec Sep Jun
2011 2010 2010 2010
Interest income $ 3,675 $ 3,704 $ 3,919 $ 3,920
Interest expense 578 755 799 819
Net interest income 3,097 2,949 3,120 3,101
Provision for loan losses 147 879 228 615
Net interest income after provision for
loan losses 2,950 2,070 2,892 2,486
Noninterest income 732 744 1,209 612
Noninterest expense 3,146 2,969 2,947 3,002
Income (loss) before income taxes 536 (155) 1,154 96
Income tax expense (benefit) 49 (163) 288 (62)
Net income $ 487 $ 8 $ 866 $ 158
Earnings per share:
Basic and diluted $ 0.22 $ 0.01 $ 0.39 $ 0.07
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding 2,209,717 2,205,973 2,205,973 2,205,973
4