EX-99.1 2 l14944aexv99w1.htm EXHIBIT 99.1 EXHIBIT 99.1
 

Exhibit 99.1

PRESS RELEASE
FOR IMMEDIATE RELEASE:
National Bancshares Corporation’s Second Quarter 2005 Report

ORRVILLE, Ohio, July 19, 2005 — National Bancshares Corporation (OTC: NBOH), the holding company of First National Bank (www.fnborrville.com) reported on their second quarter.

”Our new Burbank Road Office opened June 30, 2005,” said Charles Dolezal, President. “This full-service facility is located in the commercial district in the north end of Wooster. We are excited about this new location for our institution. Not only does it bring us closer to new markets within the Wooster community, but it also offers a very convenient location to serve many of our customers that may shop this high-traffic commercial area. The Burbank Road Office will complement our Cleveland Road Office, which has been operating in this community for several years. When we entered the Wooster market, our plan was to eventually open several offices in different parts of the community.”

”This year has been very challenging for our company,” continued Dolezal. “Balance sheet growth has continued with total assets increasing by approximately $5 million, or 1.7%, above June 30, 2004. Total loans increased $4.8 million, or 2.4%, above the same period of the previous year. Total deposits increased approximately $4.5 million, or 1.9%, over the end of the second quarter of last year. This increase was realized by a $7.4 million, or 20%, increase in non-interest bearing demand deposits, partially offset by a $3.2 million, or 4.1%, decrease in time deposits. Net income decreased over $500 thousand, or approximately 36%, when compared to the first half of last year. This decline was driven by a decrease in non-interest income, an increase in the provision for loan losses, and an increase in non-interest expenses. We experienced significantly larger securities gains in the first half of 2004 than we realized in the current year. Non-interest expenses increased mainly in the areas of personnel costs, marketing expenses and consulting fees. Consultants are being utilized to help us meet new regulatory requirements. We are working to identify areas where we may gain greater operating efficiencies.”

A second quarter cash dividend of 16¢ per share is being paid July 19, 2005 to shareholders of record as of June 30, 2005.

National Bancshares Corporation’s subsidiary, First National Bank, is headquartered in Orrville, Ohio, with fourteen banking offices located in Orrville, Wooster, Dalton, Kidron, Smithville, Apple Creek, Mt. Eaton, Massillon, 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, 2004. 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)

                 
    June 30, 2005     June 30, 2004  
ASSETS:
               
Cash and due from banks
  $ 12,037,052     $ 8,730,468  
Federal funds sold
    8,545,000       5,490,000  
 
           
Total cash and cash equivalents
    20,582,052       14,220,468  
Securities available for sale
    49,235,866       55,735,477  
Securities held to maturity
    16,466,489       16,781,845  
Federal bank stock
    2,927,950       2,812,250  
 
               
Total loans (excluding unearned income)
    201,156,848       196,378,225  
Less: allowance for loan losses
    2,036,711       1,756,530  
 
           
Loans, net
    199,120,137       194,621,695  
Accrued interest receivable
    1,499,216       1,523,144  
Premises and equipment
    5,221,738       4,535,369  
Other assets
    9,029,642       8,859,527  
 
           
TOTAL
  $ 304,083,090     $ 299,089,775  
 
           
 
               
LIABILITIES:
               
Deposits:
               
Demand
  $ 44,151,131     $ 36,783,031  
Savings and N.O.W.s
    127,364,354       127,060,077  
Time
    73,547,407       76,727,047  
 
           
Total deposits
    245,062,892       240,570,155  
Securities sold under repurchase
agreements
    3,859,277       4,131,353  
Federal reserve note account
    475,934       471,678  
Federal Home Loan Bank advances
    17,000,000       17,000,000  
Accrued interest payable
    512,799       438,785  
Other liabilities
    2,301,634       2,247,829  
 
           
Total liabilities
    269,212,536       264,859,800  
 
               
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
    19,635,304       18,665,730  
Accumulated other comprehensive
income
    287,303       616,298  
Less: Treasury shares
    (1,189,493 )     (1,189,493 )
 
           
Total shareholders’ equity
    34,870,554       34,229,975  
 
           
TOTAL
  $ 304,083,090     $ 299,089,775  
 
           

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NATIONAL BANCSHARES CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
For Six Months Ended June 30, 2005 and June 30, 2004

                 
    June 30, 2005     June 30, 2004  
INTEREST & DIVIDEND INCOME:
               
Loans, including fees
  $ 5,912,359     $ 5,425,561  
Federal funds sold
    47,670       12,647  
Interest and dividends on investments
               
US government obligations
    451,207       633,001  
Obligations of states and
political subdivisions
    422,745       444,415  
Other securities
    969,858       1,047,214  
 
           
Total interest & dividend income
    7,803,839       7,562,838  
 
               
INTEREST EXPENSE:
               
Deposits
    1,348,596       1,217,020  
Short-term borrowings
    31,150       4,018  
Federal Home Loan Bank advances
    447,313       410,876  
 
           
Total interest expense
    1,827,059       1,631,914  
 
           
 
               
Net interest income
    5,976,780       5,930,924  
PROVISION FOR LOAN LOSSES
    292,500       132,500  
 
           
 
               
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES
    5,684,280       5,798,424  
 
               
NONINTEREST INCOME
    883,219       1,109,018  
 
               
NONINTEREST EXPENSE:
               
Salaries and employee benefits
    2,903,862       2,685,583  
Net occupancy expense
    382,451       334,892  
Other expenses
    2,127,256       1,894,428  
 
           
Total noninterest expense
    5,413,569       4,914,903  
 
           
 
               
INCOME BEFORE INCOME TAXES
    1,153,930       1,992,539  
INCOME TAXES
    201,192       506,362  
 
           
 
               
NET INCOME
  $ 952,738     $ 1,486,177  
 
           
 
               
NET INCOME PER COMMON SHARE
  $ 0.43     $ 0.67  
 
           

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