Record Earnings at First National Bancshares

ORRVILLE, OHIO -- First National Bancshares Corp., parent of First National Bank of Orrville, reports second-quarter net income of $1.427 million, or 64 cents per basic share and 63 cents per diluted share, the highest quarterly earnings in the history of the company.

In the second quarter of 2013, First National reported net income of $1.108 million, or 46 cents per basic and diluted share.

For the quarter ended March 31, First National reported net income of $1.24 million, or 56 cents per basic and 55 cents per diluted share.

“We continue to be very pleased with our earnings and asset growth," the president and CEO, Mark R. Witmer, said in a prepared statement. “National Bancshares Corp. is excited to report the strongest quarterly and year-to-date net income in its history. Total assets were a record $513.47 million compared to $476.24 million at Dec. 31. We continue to experience robust loan and deposit growth and the local economy continues to perform well.”

Second-quarter highlights the one-bank holding company pointed to:

  • Annualized return on average equity was 11.74% compared to 9.02% the same quarter in 2013.
  • Annualized return on average assets was 1.19% compared to 0.89%.
  • Net interest margin improved to 3.69% compared to 3.61% the same quarter in 2013.
  • Net interest income rose $473,000, or 12.9%, to $4.149 million from $3.676 a year earlier. “Net interest income for the three months ended June 30 represent the highest level in the bank’s history,” the bank said.
  • Noninterest income -- from fees and similar charges -- fell to $701,000 from $792,000 a decrease of 11.5% year over year.
  • The adjusted operating efficiency fell to 59.4% from 67.0% in the second quarter a year ago.
  • At June 30, average total loans stood at $344.0 million and $358.65 million net, a climb of 22.4% from a year ago when net loans were $285.17 million. The bank attributed the increase to “growth in agricultural loans, commercial real estate and land development loans, and one-to-four family [mortgages].”
  • Deposits also showed considerable growth with $412.71 million recorded compared $378.57 million at June 30, 2103.
  • Noninterest expense – which includes salaries and benefits, computer expense, rents and premiums to the Federal Deposit Insurance Corp. – was 3.6% lower than the same quarter a year ago, $2.89 million to $3.00 million.
  • Credit quality remains high. The bank increased slightly its allowance for loan losses to $4.0 million, or 1.18% of total loans, from $3.9 million, or 1.10%, at Dec. 31. Net charge-offs for the first six months were only $24,000 compared to $15,000 for the first half of 2013.
  • Total loan delinquencies (those 31 to 89 days past due) and nonaccrual loans (those 90 days past due) remained unchanged at $150,000 from March 31. That statistic was $35,000 at Dec. 31 and $209,000 a year ago.

First National Bank of Orrville is a community bank with 14 offices that serve communities in north central and eastern Ohio including Salem.

Published by The Business Journal, Youngstown, Ohio.
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