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National Bancshares Reports Record Third Quarter
ORRVILLE, Ohio -- National Bancshares Corp., holding company of First National Bank of Orrville, reported record third-quarter net income Thursday of $1.043 million, or 47 cents per share.
This compares to third-quarter net income of $857,000, or 39 cents per share, a year ago and last quarter’s net income of $1.018 million, or 46 cents per share.
Net income for the first nine months also set a record, $3.007 million, or $1.35 per share, the company reported.
Said the president and CEO, Mark Witmer, in a prepared statement, “We are pleased to report record earnings for the third quarter and year-to-date. For the second quarter in a row, we earned over $1 million. Agriculture and small-business lending and mortgage-banking activities continue to be instrumental in improving our profitability. Total loans have grown $42.5 million in 2013 and $94.3 million over the last seven quarters.”
Third-quarter highlights National Bancshares pointed to:
- Net interest income rose $72,000 to $3.741 million, an increase of 2% compared to $3.669 million for the third quarter of 2012.
- Mortgage banking activity was $193,000, up 60.8% from $120,000 earned a year ago.
- Total loans increased 15.8%, by $42.5 million, to $311.4 million, from $268.9 million at Dec. 31. Loan to asset ratio at Sept. 30 was 67.1%.
- Total deposits rose to $373 million from $367.1 million at Dec. 31, a 1.6% increase.
Interest and fees earned on loans increased $226,000, or 7.2% compared to the second quarter, the bank reported, although interest earned from securities fell $213,000, or 22.1% compared to the same quarter a year ago. The securities portfolio decreased to $98.7 million at Sept. 30 compared to $150.2 million at Dec. 31, 2011.
Noninterest income -- mostly fees -- rose to $764,000 from $714,000 the same quarter a year ago, or 7%, most of which was attributed to a rise in mortgage- banking income.
Noninterest expense -- wages and benefits, rents, Federal Deposit Insurance Corp. premiums, advertising -- fell 3.3% to $2.992 million from the same period a year ago.
The allowance for loan losses increased to $3.719 million from $3.4 million at Dec. 31 but the provision for loan losses for the quarter was $150,000 compared to $209,000 the third quarter of 2012.
Total nonperforming loans (those 90 and more days past due) fell to $719,000 at Sept. 30 from $1.2 million at the beginning of the year.
Total assets have risen 5.2% since the first of the year to $463.9 million at Sept. 30 compared to $440.8 million at Dec. 31, 2012.
First National Bank of Orrville has 13 banking offices in northeastern Ohio including one in Salem.
There was no trading in the stock of National Bancshares Thursday and its price remained unchanged at $18.75.
Published by The Business Journal, Youngstown, Ohio.
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