National Bancshares Has Record First-Quarter Income
ORRVILLE, Ohio – National Bancshares Corp., parent of First National Bank of Orrville, today reported record first-quarter net income of $1.24 million, or 56 cents a share.
This compares to $946,000, or 43 cents a share, the first quarter of 2013. Diluted earnings per share were 55 cents and 43 cents respectively.
In a prepared statement, the president and CEO, Mark R. Witmer, said, “We are pleased with our performance in 2014 and excited about the opportunities in our market [which extends east to Salem]. Loans have increased 4.3% to $342.4 million compared to $328.2 million at Dec. 31. We continue to experience the robust loan growth we have enjoyed since 2010. The local economy, including agriculture and small business, continues to perform well.”
Loans secured by farmland and agricultural production were $52.5 million at the end of the quarter, Witmer noted, an increase of $37.1 million since 2011.
Key performance ratios for the quarters ended March 31 and March 31, 2013, included:
- Return on average equity, 10.64%, 8.44%.
- Return on average assets, 1.03%, 0.83%.
- Net interest margin, 3.63%, 3.59%.
- Efficiency ratio, 60.72%, 69.16%.
Net interest income for the quarter was $3.99 million, up $361,000 or 9% from a year ago when National Bancshares recorded $3.63 million. The increase was attributed to growth in average balances and lower-cost deposits.
Noninterest income – such as fees, mortgage service charges, gains on sales of securities – fell to $726,000 from $771,0000 a year.
Noninterest expense – which included salaries and benefits, rents, data processing, and Federal Deposit Insurance Corp. premiums – fell 4.9% to $2.88 million from $3.03 million a year ago. The company attributed the decrease to $148,000 less in data processing expense and a savings of $92,000 in rent resulting from the sale of an office in Fairlawn.
Total assets at the end of the quarter were just under a half-billion dollars, $499.1 million, up from $476.2 million at Dec. 31.
Deposits rose to $404.58 million at March 31 compared to $324.56 million at Dec. 31 and $406.82 million at March 31, 2013.
Loans, net of allowance for losses, increased by $13.8 million during the quarter to $338.4 million at March 31.
The allowance for loan loss reserves increased to $4.0 million March 31 from $3.9 million at Dec. 31, the company said. Net charge-offs were $17,000 compared to $23,000 the first quarter of 2013.
Total loan delinquencies remained unchanged at $1.3 million from year-end and remain unchanged at 0.4% of total loans.
Total nonperforming loans (90 days and more past due) were essentially unchanged, $455,000 at March 31 compared to $458,000 at Dec. 31.
Published by The Business Journal, Youngstown, Ohio.
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