Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE:
National Bancshares Corporation's First Quarter Ends on Positive Note
ORRVILLE, Ohio, April 18 / PRNewswire / -- National Bancshares Corporation (OTC:
NBOH), the holding company of First National Bank (www.fnborrville.com),
declared a quarterly cash dividend of $.14 per share for the first quarter of
2003. This dividend, payable on April 18, 2003, is payable to shareholders of
record as of March 31, 2003. Financial results for the first quarter of 2003
were also released.
"The first quarter finished on a very positive financial note," said Charles J.
Dolezal, President and Chairman. Net income of $807 thousand was up
approximately $77 thousand, or 10.5%, over the same period of the previous year.
Total assets of $291 million increased by nearly $93 million, or 46.7%, above
March 31, 2002. Net loans increased by over $73 million, or 62%, while total
deposits increased by $76.5 million, or 48.4%, above the end of the first
quarter of 2002. Much of this growth was driven by the merger with Peoples
Financial Corporation. This merger closed in the second quarter of last year.
"With our merger accomplished, we're now focusing on repositioning our
infrastructure to support a much larger organization and future profitable
growth," continued Dolezal. "We are increasing staff in select positions and
initiating training programs to focus on key areas throughout the bank. With a
slow economy, increased regulations and growing competition from numerous
financial entities, we're faced with many new challenges. We look upon these
challenges, however, with great optimism. They present us with an opportunity to
reach new highs moving forward, as we sharpen our skills and improve our
organization to face an ever-changing competitive environment."
National Bancshares Corporation, a one-bank holding company with assets of
approximately $291 million, operates fourteen First National Bank offices in
Orrville, Massillon, Wooster, Dalton, Kidron, Smithville, Apple Creek, Mt.
Eaton, Lodi, and Seville.
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 necessarily subject to many risks and
uncertainties. A number of things could cause actual results to differ
materially from those indicated by the forward-looking statements. These include
factors such as changes in the competitive marketplace, changes in the interest
rate environment, economic conditions, 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 Security
and Exchange Commission, including its Annual Report on Form 10-K for the year
ended December 31, 2002. The Company disclaims any obligation to publicly update
or revise any forward-looking statements based on the occurrence of future
events, the receipt of new information, or otherwise.
Contact Person: Traci Carmony
Marketing Assistant
First National Bank, Orrville, Ohio
(330) 682-1010
tcarmony@fnborrville.com
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NATIONAL BANCSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31, 2003 March 31, 2002
ASSETS:
Cash and due from banks $7,564,622 $6,522,407
Interest bearing deposits with banks 997,516 1,994,954
Securities held to
maturity 17,035,683 13,244,759
Securities available for sale 49,020,828 45,351,144
Federal bank stock 2,711,650 1,037,600
Federal funds sold 7,000,000 4,600,000
Total loans (excluding unearned
income) 193,241,021 119,598,493
Less: allowance for
loan losses 1,631,646 1,341,408
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Loans, net 191,609,375 118,257,085
Accrued interest receivable 1,673,443 1,394,503
Premises and equipment 4,760,936 2,946,778
Other assets 8,750,519 3,032,321
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TOTAL $291,124,572 $198,381,551
===========================================
LIABILITIES:
Deposits:
Demand $33,277,304 $26,945,296
Savings and N.O.W.s 118,554,057 80,992,969
Time 82,685,758 50,043,701
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Total deposits 234,517,119 157,981,966
Securities sold under repurchase
agreements 2,243,871 4,775,461
Federal reserve note account 214,514 1,000,000
Federal Home Loan Bank advances 17,137,162 1,885,491
Accrued interest payable 501,647 414,152
Other liabilities 2,903,870 1,274,832
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Total liabilities 257,518,183 167,331,902
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SHAREHOLDERS' EQUITY
Common Stock, without par value:
6,000,000 shares authorized
and 2,289,528 shares issued 11,447,640 11,447,640
Additional paid-in-capital 4,689,800 4,689,800
Retained earnings 16,996,169 16,001,139
Accumulated other comprehensive
income 1,662,273 407,650
Less: Treasury shares (1,189,493) (1,496,580)
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Total shareholders' equity 33,606,389 31,049,649
-------------------------------------------
TOTAL $291,124,572 $198,381,551
===========================================
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NATIONAL BANCSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For Three Months Ended March 31, 2003 and March 31, 2002
March 31, 2003 March 31, 2002
INTEREST & DIVIDEND INCOME:
Loans, including fees $2,952,638 $2,071,666
Federal funds sold 14,185 18,472
Interest and dividends on investments:
US government obligations 301,422 260,656
Obligations of states and
political subdivisions 250,317 210,794
Other securities 456,009 445,800
------------------------------------------
Total interest and dividend income 3,974,571 3,007,388
INTEREST EXPENSE:
Deposits 830,178 818,106
Short-term borrowings 1,796 3,909
Federal Home Loan Bank advances 150,452 31,577
------------------------------------------
Total interest expense 982,426 853,592
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Net interest income 2,992,145 2,153,796
PROVISION FOR LOAN LOSSES 35,000 20,000
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NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 2,957,145 2,133,796
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NONINTEREST INCOME 318,767 414,028
NONINTEREST EXPENSE:
Salaries and employee benefits 1,206,426 906,691
Net occupancy expense 174,889 103,895
Other expenses 820,647 603,898
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Total noninterest expense 2,201,962 1,614,484
------------------------------------------
INCOME BEFORE INCOME TAXES 1,073,950 933,340
INCOME TAXES 267,304 203,563
------------------------------------------
NET INCOME $806,646 $729,777
==========================================
NET INCOME PER COMMON SHARE $0.36 $0.33
==========================================
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