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EXHIBIT 99
FOR IMMEDIATE RELEASE
October 2, 2001
N E W S R E L E A S E
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇
President and Chief Executive President and Chief Executive
Officer Officer
National Bancshares Corporation Peoples Financial Corporation
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇ (▇▇▇) ▇▇▇-▇▇▇▇
NATIONAL BANCSHARES CORPORATION AND
PEOPLES FINANCIAL CORPORATION SIGN MERGER AGREEMENT
Orrville, Ohio - National Bancshares Corporation (OTC Bulletin Board
"NBOH") and Peoples Financial Corporation (Nasdaq SmallCap "PFFC") jointly
announced today the signing of a definitive agreement for the merger of Peoples
Financial into National Bancshares, and Peoples Federal S&L of Massillon, the
wholly-owned subsidiary of Peoples Financial, into First National Bank of
Orrville, the wholly-owned subsidiary of National Bancshares. National
Bancshares is a full-service community banking organization with 11 offices
located in ▇▇▇▇▇ County and southern ▇▇▇▇▇▇ County. Peoples Financial operates
three full-service branches in Massillon and a loan production office in North
Canton, Ohio.
Under the terms of the agreement, National Bancshares will pay $12.25
in cash for each of the 1,234,085 outstanding shares of Peoples Financial. The
aggregate transaction value will be approximately $15.2 million. The merger is
expected to be consummated in the first quarter of 2002, pending approval by
Peoples' shareholders, regulatory approval and other customary conditions of
closing.
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At June 30, 2001, Peoples Financial had total assets of $106.1 million,
deposits of $75.1 million and shareholders' equity of $10.5 million. For the
twelve months ended June 30, 2001, Peoples Financial reported net income of
$578,000 with return on average assets of 0.56% and a return on average equity
of 5.56%.
At June 30, 2001, National Bancshares had total assets of $198.1
million, deposits of $159.5 million and shareholders' equity of $30.2 million.
For the twelve months ended June 30, 2001, National Bancshares reported net
income of $2.6 million with return on average assets of 1.30% and a return on
average equity of 9.00%.
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President and Chief Executive Officer of National
Bancshares Corporation, stated, "We are very pleased to announce this merger
with Peoples Financial Corporation. This represents the most significant growth
opportunity in the history of our company. This transaction provides National
Bancshares with an opportunity to expand into an adjacent and attractive market
area. With the acquisition of Peoples Financial we will now be well positioned
to pursue other growth opportunities. We look forward to welcoming Peoples'
customers and employees."
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇, President and Chief Executive Officer of Peoples
Financial Corporation, stated, "We believe that this transaction will benefit
our shareholders, customers, employees and community. Now that we will be part
of a commercial bank, our customers can expect us to offer additional banking
products and services and our employees will have the opportunity to grow and
prosper as part of a larger community bank with a similar customer service
philosophy. As part of National Bancshares we will be in a stronger competitive
position in the years ahead."
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