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 22, 2013
National Bancshares Corporation Announces 2012 Net Income of $2,811,000
Orrville, Ohio ~ National Bancshares Corporation, the holding company for
First National Bank, reported net income of $2,811,000 for the year ended
December 31, 2012, an increase of $199,000 or 7.6% from $2,612,000 in 2011.
Earnings per share were $1.27 for 2012 compared to $1.18 for 2011. Net
income for the three months ended December 31, 2012 was $937,000 compared
to $774,000 for the same period in 2011. For the fourth quarter, basic and
diluted earnings per share were $0.42 compared to $0.35 for the fourth
quarter of 2011.
Full-Year 2012 Business Highlights:
~ Net interest income for the year increased $864,000 to $14,227,000, an
increase of 6.5% compared to $13,363,000 for the same period in 2011, the
highest level of net interest income in the Bank`s history.
~ Mortgage banking activities were $560,000 in 2012, an increase of 118.8%
compared to $256,000 in 2011.
~ Total loans increased $51.8 million or 23.9% from $217.1 million as of
December 31, 2011 to $268.9 million as of December 31, 2012. The loan to
asset ratio increased from 53% as of December 31, 2011 to 61% as of
December 31, 2012.
~ Loans secured by farmland and agricultural production loans were
$35.3 million as of December 31, 2012, an increase of $19.9 million,
or 130.1% since year end 2011.
~ One-to-four family loans increased from $56.9 million at
December 31, 2011 to $70.3 million at December 31, 2012.
~ Total deposits increased $26.4 million or 7.7% from $340.7 million as
of December 31, 2011 to $367.1 million as of December 31, 2012.
~ Shareholder`s equity increased $2.6 million or 6.0% to $45.3 million as
of December 31, 2012.
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Full-Year 2012 Financial Summary:
Net interest income for 2012 was $14,227,000, an increase of 6.5% from
$13,363,000 for 2011. Net interest income was positively impacted by the
growth in average balances of loans and lower-cost deposits, partially
offset by a decline in the yield on earning assets.
The provision for loan losses increased $774,000 from $600,000 in 2011 to
$1,374,000 in 2012. The increase in the provision for loan losses is
primarily related to changes in the collateral valuations based on
information obtained in 2012 for two commercial real estate loan
relationships.
Noninterest income for 2012 decreased $135,000 or 4.5%, from $3,032,000
in 2011 to $2,897,000 in 2012. Mortgage banking activities were $560,000
in 2012, compared to $256,000 in 2011. Noninterest income in 2011 included
$171,000 of gains recorded on the sale of the guaranteed portion of six
Small Business Administration (SBA) loans and $214,000 of gains recorded
on the sale of securities. No SBA loans or securities were sold in 2012.
In 2011, $121,000 of income from the death benefit of an insurance policy
was recorded.
Noninterest expense for 2012 was $12,388,000, a decrease of 2.8% from
$12,739,000 in 2011, due primarily to a decrease of $205,000 in
professional and consulting expense, primarily related to a reduction of
legal expenses and a reduction in the use of outside information technology
consultants. Amortization of intangibles and Directors pension expense also
decreased in 2012. These declines were partially offset by a $139,000
increase in salaries and employee benefits.
December 31, 2012 Financial Condition:
Total assets increased 8.6% to $440.8 million as of December 31, 2012, from
$406.1 million at December 31, 2011. Securities available for sale totaled
$121.7 million as of December 31, 2012, compared to $150.2 million at
December 31, 2011. Loans, net of allowance for loan losses increased
$51.6 million to $265.5 million as of December 31, 2012, compared to
$214.0 million at December 31, 2011. Deposits increased 7.7% to $367.1
million as of December 31, 2012, compared to $340.7 million at
December 31, 2011. Shareholders` equity increased 6.0% to $45.3 million
at the end of 2012, from $42.7 million at the end of 2011. Accumulated
other comprehensive income increased to $3.9 million as of
December 31, 2012, compared to $3.6 million as of December 31, 2011. The
change in accumulated other comprehensive income was a result of an
increase in unrealized gains on securities available for sale, net of tax.
The allowance for loan losses increased from $3,163,000 as of
December 31, 2011 to $3,400,000 at December 31, 2012, or changed from 1.46%
of total loans at year-end 2011 to 1.26% at December 31, 2012. Net
charge-offs increased from $22,000 in 2011 to $1,137,000 in 2012. The
provision for loan losses for 2012 was $1,374,000, compared to $600,000
in 2011. The increase in the allowance for loan losses in 2012 was primarily
related to the increase in loans.
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Total nonperforming loans decreased from $4.0 million as of December
31, 2011 to $1.2 million at December 31, 2012. 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 $339 thousand at December 31, 2012 from $634 thousand
as of December 31, 2011. In 2012, total classified loans decreased from
$12.1 million to $8.7 million. Management believes the allowance for loan
losses is adequate as of December 31, 2012.
Fourth-Quarter 2012 Financial Summary:
Net interest income for the quarter ended December 31, 2012 was $3,678,000,
an increase of 6.4% from $3,457,000 for the same period in 2011.
Noninterest income for the three month period ended December 31, 2012
decreased 4.4%, from $862,000 in 2011 to $824,000 in 2012. Mortgage banking
activities increased from $111,000 during the quarter ended December
31, 2011 to $236,000 during the same period in 2012. In 2011, $121,000 of
income from the death benefit of an insurance policy was recorded in other
noninterest income.
Noninterest expense for the quarter ended December 31, 2012 was $3,282,000,
a decrease of 0.2% from $3,289,000 in 2011. Salaries and benefits expenses
was $1,656,000 for the quarter ended December 31, 2012, an increase of
$101,000 compared to the same period in 2011. Directors pension expense was
$28,000 for the period ended December 31, 2012, a decrease of $106,000
compared to the quarter ended December 31, 2011.
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.
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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,
2012 2012 2012 2012 2011
Cash and cash equivalents $ 27,624 $ 36,833 $ 31,937 $ 23,125 $ 15,213
Securities available for sale 121,650 131,450 131,957 145,930 150,175
Loans, net 265,539 255,448 239,924 222,346 213,952
Deposits 367,069 382,679 370,743 352,408 340,664
Repurchase agreements 18,633 12,627 9,417 9,816 10,168
Shareholders' equity 45,321 44,950 43,740 43,156 42,745
Total assets 440,834 450,051 436,154 417,731 406,086
Income Statement Data:
(dollars in thousands, except per
share data) Twelve months ended
Dec 31, Dec 31,
2012 2011 Change
Interest income $ 15,989 $ 15,413 3.7 %
Interest expense 1,762 2,050 (14.0)%
Net interest income 14,227 13,363 6.5 %
Provision for loan losses 1,374 600 129.0 %
Net interest income after provision for
loan losses 12,853 12,763 0.7 %
Noninterest income 2,897 3,032 (4.5)%
Noninterest expense:
Salaries and employee benefits 6,164 6,025 2.3 %
Data processing 1,191 1,160 2.7 %
Net occupancy 1,403 1,480 (5.2)%
Professional and consulting fees 432 637 (32.2)%
Other 3,198 3,437 (7.0)%
Total noninterest expense 12,388 12,739 (2.8)%
Income before income taxes 3,362 3,056 10.0 %
Income tax expense 551 444 24.1 %
Net income $ 2,811 $ 2,612 7.6 %
Earnings per share, basic and diluted $ 1.27 $ 1.18 7.6 %
Weighted average shares outstanding, basic 2,217,690 2,211,508
Weighted average shares outstanding, diluted 2,220,047 2,211,508
Income Statement Data:
(dollars in thousands, except per
share data) Three months ended
Dec 31, Dec 31,
2012 2011 Change
Interest income $ 4,097 $ 3,926 4.4 %
Interest expense 419 469 (10.7)%
Net interest income 3,678 3,457 6.4 %
Provision for loan losses 35 153 (77.1)%
Net interest income after provision for
loan losses 3,643 3,304 10.3 %
Noninterest income 824 862 (4.4)%
Noninterest expense:
Salaries and employee benefits 1,656 1,555 6.5 %
Data processing 302 295 2.4 %
Net occupancy 353 367 (3.8)%
Professional and consulting fees 135 140 (3.6)%
Other 836 932 (10.3)%
Total noninterest expense 3,282 3,289 (0.2)%
Income before income taxes 1,185 877 35.1 %
Income tax expense 248 103 140.8 %
Net income $ 937 $ 774 21.1 %
Earnings per share, basic and diluted $ 0.42 $ 0.35 20.0 %
Weighted average shares outstanding, basic 2,219,166 2,213,269
Weighted average shares outstanding, diluted 2,220,640 2,213,269
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Quarterly Earnings Summary (Unaudited)
Previous Eight Quarters:
(dollars in thousands, except per
share data)
Dec Sep Jun Mar
2012 2012 2012 2012
Interest income $ 4,097 $ 4,108 $ 3,934 $ 3,850
Interest expense 419 439 451 453
Net interest income 3,678 3,669 3,483 3,397
Provision for loan losses 35 209 981 149
Net interest income after provision for
loan losses 3,643 3,460 2,502 3,248
Noninterest income 824 714 723 636
Noninterest expense 3,282 3,093 2,967 3,046
Income (loss) before income taxes 1,185 1,081 258 838
Income tax expense (benefit) 248 224 (59) 138
Net income $ 937 $ 857 $ 317 $ 700
Earnings per share:
Basic and diluted $ 0.42 $ 0.39 $ 0.14 $ 0.32
Cash dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08
Weighted average shares outstanding, basic 2,219,166 2,218,445 2,216,562 2,216,526
Weighted average shares outstanding, diluted 2,220,640 2,220,891 2,219,953 2,218,692
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, basic 2,213,269 2,213,269 2,209,717 2,209,717
Weighted average shares outstanding, diluted 2,213,269 2,213,269 2,209,717 2,209,717
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