National Bancshares Corporation (OTC Bulletin Board: NBOH), the holding company for First National Bank, reported net income of $507,000 for the quarter ended September 30, 2007 . The third quarter 2007 earnings compares to $303,000 for the same period in 2006. Earnings per share for the third quarter of 2007 and 2006 were $0.23 and $0.14 .
Net interest income for the quarter ended September 30, 2007 , was $2,741,000 , a decrease of 2.8% from $2,820,000 for the same period in 2006. Net interest income was impacted by both an increase in the yields on earning assets and an increase in the cost of funds. Noninterest income for the quarter ended September 30, 2007 , increased 28.9% from $429,000 in 2006 to $553,000 in 2007. Noninterest expense for the third quarter of 2007 was $2,620,000 , a decrease of 7.0% from $2,818,000 for the same period in 2006. The decrease in noninterest expense was due primarily to a reduction in salaries and employee benefits and marketing expenses.
Total assets decreased 1.7% to $303,055,000 as of September 30, 2007 , from $308,358,000 at December 31, 2006 . Securities available for sale was $82,782,000 as of September 30, 2007 , compared to $86,000,000 at December 31, 2006 . Loans, net of the allowance for loan losses increased $7.7 million or 4.2% to $192,158,000 as of September 30, 2007 , compared to $184,481,000 at December 31, 2006 . Deposits decreased 2.2% to $242,133,000 as of September 30, 2007 , compared to $247,681,000 at December 31, 2006 .
National Bancshares Corporation's subsidiary, First National Bank, is headquartered in Orrville, Ohio with thirteen banking offices in Orrville, Massillon, Wooster, Apple Creek, Dalton, 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, 2006 . The Company assumes no obligation to update any forward-looking statement.
Selected Consolidated Financial Data
Balance Sheet Data:
dollars in thousands September 30, June 30, March 31, December 31,
2007 2007 2007 2006
Cash and cash equivalents $9,598 $30,026 $20,498 $18,775
Securities available for sale 82,782 82,590 79,219 86,000
Loans, net 192,158 186,019 184,148 184,481
Deposits 242,133 257,016 247,920 247,681
Repurchase agreements 8,322 9,047 7,788 7,902
Federal Home Loan Bank
advances 14,000 14,000 14,000 14,000
Shareholders' equity 34,699 34,050 34,605 34,680
Total assets 303,055 317,563 307,559 308,358
Income Statement Data:
dollars in thousands, except per Three months ended
share data September 30, September 30,
2007 2006 Change
Interest income $4,497 $4,379 2.7%
Interest expense 1,756 1,559 12.6%
Net interest income 2,741 2,820 -2.8%
Provision for loan losses - 40 nm
Net interest income after provision
for loan losses 2,741 2,780 -1.4%
Noninterest income 553 429 28.9%
Noninterest expense 2,620 2,818 -7.0%
Income before income taxes 674 391 72.4%
Income taxes 167 88 89.8%
Net income $507 $303 67.3%
Earnings per share
Basic $0.23 $0.14
Diluted $0.23 $0.14
Weighted average shares outstanding 2,234,488 2,234,488
Nine months ended
September 30, September 30,
2007 2006 Change
Interest income $13,391 $12,731 5.2%
Interest expense 5,250 4,295 22.2%
Net interest income 8,141 8,436 -3.5%
Provision for loan losses 27 40 -32.5%
Net interest income after provision
for loan losses 8,114 8,396 -3.4%
Noninterest income 1,388 1,241 11.8%
Noninterest expense 8,113 8,512 -4.7%
Income before income taxes 1,389 1,125 23.5%
Income taxes 281 155 81.3%
Net income $1,108 $970 14.2%
Earnings per share
Basic $0.50 $0.43
Diluted $0.50 $0.43
Weighted average shares outstanding 2,234,488 2,234,488
nm - not meaningful
Quarterly Earnings Summary
Previous Eight Quarters:
dollars in thousands,
except per share data September 30, June 30, March 31, December 31,
2007 2007 2007 2006
Interest income $4,497 $4,542 $4,352 $4,425
Interest expense 1,756 1,784 1,710 1,699
Net interest income 2,741 2,758 2,642 2,726
Provision for loan losses - - 27 120
Net interest income after
provision for loan losses 2,741 2,758 2,615 2,606
Noninterest income 553 424 411 412
Noninterest expense 2,620 2,821 2,672 2,842
Income before income taxes 674 361 354 176
Income taxes 167 47 67 (18)
Net income $507 $314 $287 $194
Earnings per share
Basic $0.23 $0.14 $0.13 $0.09
Diluted $0.23 $0.14 $0.13 $0.09
Cash dividends per share $0.16 $0.16 $0.16 $0.16
Weighted average shares
outstanding 2,234,488 2,234,488 2,234,488 2,234,488
September 30, June 30, March 31, December 31,
2006 2006 2006 2005
Interest income $4,379 $4,187 $4,166 $4,236
Interest expense 1,559 1,466 1,271 1,225
Net interest income 2,820 2,721 2,895 3,011
Provision for loan losses 40 - - (177)
Net interest income after
provision for loan losses 2,780 2,721 2,895 3,188
Noninterest income 429 378 434 433
Noninterest expense 2,818 2,976 2,717 2,709
Income before income taxes 391 123 612 912
Income taxes 88 -36 104 213
Net income $303 $159 $508 $699
Earnings per share
Basic $0.14 $0.07 $0.23 $0.31
Diluted $0.14 $0.07 $0.23 $0.31
Cash dividends per share $0.16 $0.16 $0.16 $0.16
Weighted average shares
outstanding 2,234,488 2,234,488 2,234,488 2,234,488
SOURCE National Bancshares Corporation
