Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE:
National Bancshares Corporation's 1Q Net Income Increased 3% Over Prior Year
ORRVILLE, Ohio, April 16 -- National Bancshares Corporation (OTC: NBOH), the
holding company of First National Bank (www.fnborrville.com), declared a first
quarter of 2004 cash dividend of $.15 per share. This dividend is to
shareholders of record as of March 31, 2004, payable April 16, 2004. Financial
results for the first quarter of 2004 were also released.
"The first quarter of 2004 finished on a positive note with net income
increasing nearly 3% above the first quarter of 2003," said Charles J. Dolezal,
President and Chairman. "Net interest margins have been difficult to increase in
the current interest rate environment, as non-interest income sources,
particularly security gains, have driven the increase in net income. Total
assets have increased over $8.8 million, or 3%, above the end of the first
quarter of the previous year. Net loans increased approximately $2.2 million, or
1.1%, and total deposits increased $6 million, or 2.5%, above the end of the
first quarter of 2003. Deposit growth was primarily seen in savings and
transaction accounts. With interest rates at a low not seen in decades, some
maturing time deposits have moved into other products and the stock market,
chasing higher returns."
National Bancshares Corporation, a one-bank holding company with assets of
approximately $300 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, 2003. 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.
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NATIONAL BANCSHARES CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31, 2004 March 31, 2003
ASSETS:
Cash and due from banks $ 7,300,613 $ 7,564,622
Interest bearing deposits with banks 999,411 997,516
Securities held to
Maturity 16,585,747 17,034,318
Securities available for sale 60,335,512 49,022,193
Federal bank stock 2,791,850 2,711,650
Federal funds sold 2,940,000 7,000,000
Total loans (excluding unearned
income) 195,480,441 193,241,021
Less: allowance for
loan losses 1,688,564 1,631,646
------------------------------------
Loans, net 193,791,877 191,609,375
Accrued interest receivable 1,716,331 1,673,443
Premises and equipment 4,635,102 4,760,936
Other assets 8,859,771 8,750,519
------------------------------------
TOTAL $ 299,956,214 $ 291,124,572
====================================
LIABILITIES:
Deposits:
Demand $ 35,478,385 $ 33,277,304
Savings and N.O.W.s 125,967,052 118,554,057
Time 79,046,778 82,685,758
------------------------------------
Total deposits 240,492,215 234,517,119
Securities sold under repurchase
agreements 2,758,650 2,243,871
Federal reserve note account 235,349 214,514
Federal Home Loan Bank advances 17,000,000 17,137,162
Accrued interest payable 471,352 501,647
Other liabilities 3,454,453 2,903,870
------------------------------------
Total liabilities 264,412,019 257,518,183
------------------------------------
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 18,344,724 16,996,169
Accumulated other comprehensive
income 2,251,524 1,662,273
Less: Treasury shares (1,189,493) (1,189,493)
------------------------------------
Total shareholders' equity 35,544,195 33,606,389
------------------------------------
TOTAL $ 299,956,214 $ 291,124,572
====================================
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NATIONAL BANCSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For Three Months Ended March 31, 2004 and March 31, 2003
March 31, 2004 March 31, 2003
INTEREST & DIVIDEND INCOME:
Loans, including fees $2,681,508 $2,952,638
Federal funds sold 2,538 14,185
Interest and dividends on investments:
US government obligations 350,203 301,422
Obligations of states and
political subdivisions 221,293 250,317
Other securities 521,024 456,009
-----------------------------
Total interest and dividend income 3,776,566 3,974,571
INTEREST EXPENSE:
Deposits 578,246 830,178
Short-term borrowings 2,764 1,796
Federal Home Loan Bank advances 190,014 150,452
-----------------------------
Total interest expense 771,024 982,426
-----------------------------
Net interest income 3,005,542 2,992,145
PROVISION FOR LOAN LOSSES 47,500 35,000
-----------------------------
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 2,958,042 2,957,145
-----------------------------
NONINTEREST INCOME 630,102 318,767
NONINTEREST EXPENSE:
Salaries and employee benefits 1,355,280 1,206,426
Net occupancy expense 170,027 174,889
Other expenses 931,525 820,647
-----------------------------
Total noninterest expense 2,456,832 2,201,962
-----------------------------
INCOME BEFORE INCOME TAXES 1,131,312 1,073,950
INCOME TAXES 301,314 267,304
-----------------------------
NET INCOME $ 829,998 $ 806,646
=============================
NET INCOME PER COMMON SHARE $ 0.37 $ 0.36
=============================
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