National Bancshares Reports Record Net Income in 2013
ORRVILLE, Ohio -- National Bancshares Corp., holding company of First National Bank of Orrville, reports fourth-quarter net income of $1.108 million, or 49 cents per diluted share, and full-year net income of $4.115 million, or $1.84 per diluted share.
This compares to $937,000 for the fourth quarter of 2012, or 42 cents a share, and full year 2012, when net income reported was $2.811 million, or $1.27 per share.
Annual net income exceeded that in 2012 by 52.5%, and the $2.811 million was second only to $2.911 million recorded in 2004 until the release Thursday of 2013 results.
In a prepared statement, the president and CEO of First National Bank, Mark R. Witmer, said, “Since I came to the bank in 2010, our loan portfolio has grown by 59% [to $324.57 million] and our credit quality has improved. Total nonperforming loans have decreased from $4.0 million at year-end 2011 to $455,000 at year-end 2013. In 2013 alone, the growth of our loan portfolio amounted to 22.1% [to $324.57 million from $265.54 million]. Contributing to this growth was an increase in commercial and industrial (C&I) loans, farmland and agricultural production loans, commercial real estate loans and one-to-four family residential loans. Agriculture and small businesses continue to perform well and provide a strong foundation for our local economy. The bank has been able to take advantage of the improving local economy and strong loans demand.”
Highlights National Bancshares cited:
- Annualized return on average equity for full-year 2013 was 9.02% compared to 6.39% for 2012 and annualized return on average assets was 0.89% compared to 0.65%.
- Net interest income for the year was $15.012 million compared to $14.227 million in 12012, a 5.5% increase.
- Net interest margin was 3.59%, 0.1% below the 3.69% recorded in 2012.
- At $755,000, mortgage-banking activity was 34.8% ahead of the $560,000 recorded in 2012.
- Loans secured by farmland or agricultural production were $51.7 million at Dec. 31, $16.6 million, or 46% higher than at Dec. 31, 2012.
- One-to-four family mortgages were $19.0 million higher Dec. 31 than a year before, $88.4 million to $69.4 million.
- Total deposits were 5.3% or $19.5 million higher at year-end, $386.6 million, than a year before, $367.1 million.
- First National Bank opened a full-service office in Salem at 2424 E. State St. and closed its loan production office nearby.
- In August, the bank upgraded its core information technology systems by engaging a new provider that “has given us greatly increase capabilities and customer service opportunities,” Witmer said.
Total assets at Dec. 31 were $476.2 million, an increase of 8% from year-end 2012.
The allowance for loan losses was increased by $500,000 to $3.9 million at Dec. 31 from $3.4 million at Dec. 31, 2012, but the $3.9 million is 1.18% of total loans compared to the 2012 figure that was 1.26% of total loans. The provision for loan losses in 2013 was $602,000 compared to $1.14 the year before.
Net charge-offs in 2013 were only $23,000 compared to the $1.1 million in 2012.
Total nonperforming loans (those 90 days and more past due) were $455,000 at Dec. 31 compared to $1.2 million 12 months earlier.
Noninterest expense – which include wages, benefits, rents, data processing, advertising, Federal Deposit Insurance Corp. premiums – for 2013 was $11.976 million, a decrease of 3.3% from 2012, $2,976 million compared to $3.282 the last quarter of 2012.
Published by The Business Journal, Youngstown, Ohio.
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