SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1998
OR
_____ TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For transition period from ________ to ________
Commission File Number 0-20878
MNB BANCSHARES, INC.
(Exact name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction)
of incorporation or organization)
48-1120026
(I.R.S. Employer Identification Number)
800 Poyntz Avenue, Manhattan, Kansas
(Address of principal executive offices)
66502
(Zip Code)
(785) 565-2000
(Registrant's telephone number,
including area code)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X No __
Indicate the number of shares outstanding of each of the Registrant's
classes of common stock as of the latest practicable date: As of May 6,
1998, the Registrant had outstanding 1,299,386 shares of its common stock,
$.01 par value per share.
MNB BANCSHARES, INC.
Form 10-Q Quarterly Report
Table of Contents
PART I
Page Number
Item 1. Financial Statements and
Related Notes 1 - 5
Item 2. Management's Discussion and
Analysis of Financial
Condition and Results of
Operations 6 - 10
PART II
Item 1. Legal Proceedings 11
Item 2. Changes in Securities 11
Item 3. Defaults Upon Senior Securities 11
Item 4. Submission of Matters to a
Vote of Security Holders 11
Item 5. Other Information 11
Item 6. Exhibits and Reports on Form 8-K 11
Form 10-Q Signature Page 12
<TABLE>
MNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
<CAPTION>
March 31, December 31,
1998 1997
(Unaudited)
<S> <C> <C>
ASSETS
Cash and cash equivalents:
Cash $3,789,766 $3,398,451
Interest-bearing
deposits in other
financial institutions 4,800,000 3,300,000
Total cash and cash
equivalents 8,589,766 6,698,451
Investment securities:
Held-to-maturity at
amortized cost 4,571,790 6,669,809
(estimated fair value of
$4,573,000 and $6,692,000
respectively)
Available-for-sale at
estimated fair value 42,498,823 35,409,475
Loans, net 86,535,742 88,724,128
Premises and equipment, net 2,601,319 2,597,658
Other assets 4,744,025 4,652,570
Total assets $149,541,465 $144,752,091
LIABILITIES AND
STOCKHOLDERS' EQUITY
Liabilities:
Deposits $126,959,245 $122,208,537
Other borrowings 8,544,070 9,099,379
Accrued expenses, taxes
and other liabilities 1,483,212 1,168,326
Total liabilities 136,986,527 132,476,242
Stockholders' equity:
Common stock, $.01 par,
1,500,000 shares
authorized, 1,288,476
and 1,284,460 shares
issued and outstanding at
1998 and 1997,
respectively 12,885 12,845
Additional paid in
capital 7,152,890 7,122,795
Retained earnings 5,561,259 5,341,952
Unrealized loss on
investment securities
available-for-sale,
net of tax 96,813 69,444
Unearned employee
benefits (268,909) (271,187)
Total stockholders'
equity 12,554,938 12,275,849
Total liabilities
and stockholders'
equity $149,541,465 $144,752,091
<FN>
See accompanying notes to condensed
consolidated financial statements.
</TABLE>
<TABLE>
MNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
For the Three Months
Ended March 31,
1998 1997
<S> <C> <C>
Interest income:
Loans $1,996,945 $1,404,713
Investment securities 621,525 472,374
Other 116,776 37,655
Total interest income 2,735,246 1,914,742
Interest expense:
Deposits 1,330,574 950,161
Borrowed funds 151,122 51,877
Total interest expense 1,481,696 1,002,038
Net interest income 1,253,550 912,704
Provision for loan losses 30,000 15,000
Net interest income after
provision for loan losses 1,223,550 897,704
Noninterest income:
Fees and service charges 204,064 125,048
Gains on sale of loans 61,726 5,298
Other 23,793 17,901
Total noninterest income 289,583 148,247
Noninterest expense:
Compensation and benefits 492,596 320,833
Occupancy and equipment 165,470 94,224
Federal deposit insurance
premiums 14,443 11,890
Data processing 42,209 26,801
Amortization 63,871 28,276
Advertising 15,673 10,156
Professional fees 49,216 39,164
Stationery, printing and
office supplies 22,074 12,209
Other 204,138 141,321
Total noninterest expense 1,069,690 684,874
Earnings before income
taxes 443,443 361,077
Income tax expense 143,858 118,420
Net earnings $299,585 $242,657
Earnings per share
Basic $0.23 $0.19
Diluted $0.22 $0.18
Dividends per share $0.0625 $0.0625
<FN>
See accompanying notes to condensed
consolidated financial statements.
</TABLE>
<TABLE>
MNB BANCSHARES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS
<CAPTION>
For the Three Months
Ended March 31,
1998 1997
<S> <C> <C>
Net cash provided by (used in)
operating activities $1,336,002 $(212,567)
INVESTING ACTIVITIES
Net (increase) decrease
in loans 1,435,812 (2,445,784)
Maturities and prepayments
of investments held to
maturity 1,584,540 1,622,212
Maturities and prepayments
of investments available
for sale 2,318,285 1,040,988
Purchase of investments
available for sale (8,855,479) (2,645,937)
Proceeds from sale of
foreclosed assets 10,148 -
Net cash used to purchase
insurance agency - (30,000)
Purchases of equipment and
building improvements (85,556) (8,333)
Net cash used in
investing activities (3,592,250) (2,466,854)
FINANCING ACTIVITIES
FHLB advances (net) (535,714) 300,000
Net increase in deposits 4,750,738 279,827
Net decrease in securities
sold under agreements to
repurchase (17,316) -
Issuance of common stock
under stock option plan 30,134 31,306
Payment of dividends (80,279) (75,803)
Net cash provided by
financing activities 4,147,563 535,330
Net increase (decrease) in
cash and cash equivalents 1,891,315 (2,144,091)
Cash and cash equivalents
at beginning of period 6,698,451 4,570,159
Cash and cash equivalents
at end of period $8,589,766 $2,426,068
Supplemental disclosure
of cash flow information:
Cash paid during period
for interest $1,462,180 $1,023,000
Cash paid during period
for taxes $402,212 $42,000
<FN>
See accompanying notes to condensed
consolidated financial statements.
</TABLE>
MNB BANCSHARES, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial
Statements
1. Interim Financial Statements
The condensed consolidated financial
statements of MNB Bancshares, Inc. (the "Company")
and subsidiaries have been prepared in accordance
with the instructions to Form 10-Q. To the extent
that information and footnotes required by
generally accepted accounting principles for
complete financial statements are contained in or
consistent with the audited financial statements
incorporated by reference in the Company's Form
10-K for the year ended December 31, 1997, such
information and footnotes have not been duplicated
herein. In the opinion of management, all
adjustments, consisting of normal recurring
accruals, considered necessary for a fair
presentation of financial statements have been
reflected herein. The December 31, 1997 condensed
consolidated balance sheet has been derived from
the audited balance sheet as of that date. The
results of interim period ended March 31, 1998 are
not necessarily indicative of the results expected
for the year ended December 31, 1998.
2. Earnings Per Share
Basic earnings per share have been computed
based upon the weighted average number of common
shares outstanding during each year. Diluted
earnings per share include the effect of all
potential common shares outstanding during each
year. Earnings per share for all periods
presented have been adjusted to give effect to the
5% stock dividends paid by the Company in 1995,
1996 and 1997, the adoption of SFAS No. 128 in
1997 and the two-for-one stock split declared on
January 21, 1998.
The shares used in the calculation of basic
and diluted income per share, which have been
restated for the annual 5% stock dividends and the
1998 stock split, are shown below:
<TABLE>
<CAPTION>
For the quarters ended
March 31,
1998 1997
<S> <C> <C>
Weighted average common
shares outstanding 1,286,198 1,276,046
Stock options 58,198 54,443
Total 1,344,396 1,330,489
</TABLE>
3. Acquisition
On December 31, 1997, the Company acquired
100% of the outstanding common stock of Freedom
Bancshares, Inc., Osage City, Kansas ("Freedom"),
the holding company for Citizens State Bank, Osage
City ("Citizens"), with a branch in Beloit,
Kansas. Subsequently, Security National Bank and
Citizens State Bank were merged. Consolidated
assets acquired in this transaction were
approximately $43 million. This acquisition,
which was accounted for using the purchase method
of accounting, resulted in goodwill of
approximately $2.3 million. On April 2, 1998, the
Company entered into a Definitive Agreement to
sell the Beloit, Kansas branch to Farmers State
Bank of Mankato, Kansas. This transaction is
subject to approval from the appropriate
regulatory agencies. It is expected to be
completed sometime this summer.
Proforma revenues, net earnings and diluted
earnings per share amounts, as if the Freedom
acquisition had been consummated January 1, 1997,
are as follows:
1997
Net interest income plus
other income $1,371,058
Net earnings 219,773
Diluted earnings per share 0.17
4. Comprehensive Income
The Company adopted SFAS No. 130, "Reporting
Comprehensive Income", in the first quarter of
1998. SFAS No. 130 requires the reporting of
comprehensive income and its components.
Comprehensive income is defined as the change in
equity from transactions and other events and
circumstances from non-owner sources and excludes
investments by and distributions to owners.
Comprehensive income includes net income and other
items of comprehensive income meeting the above
criteria. The Company's only component of other
comprehensive income is the unrealized holding
gains and losses on available for sale securities.
<TABLE>
<CAPTION
For the three months
ended March 31,
1998 1997
<S> <C> <C>
Net income $ 299,585 $242,657
Change in unrealized
security gain (loss), net 27,369 (68,871)
Comprehensive income $326,954 $173,786
</TABLE>
5. Impact of Accounting Standards
In January, 1998, the Company adopted SFAS
No. 127, "Deferral of the Effective Date of
Certain Provisions of SFAS No. 125". SFAS No. 125
provided consistent standards for distinguishing
transfers of financial assets that are sales from
transfers that are secured borrowings. The
adoption of SFAS No. 127 did not have a material
effect on the Company's financial statements.
MNB BANCSHARES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General. MNB Bancshares, Inc. (the
"Company") is a bank holding company incorporated
under the laws of the State of Delaware and is
engaged in the banking business through its
wholly-owned subsidiary, Security National Bank
(the "Bank"). The Company's results of operations
depend primarily on net interest income, which is
the difference between interest income from
interest-earning assets and interest expense on
interest-bearing liabilities. The Company's
operations are also affected by non-interest
income, such as service charges, loan fees and
gains and losses from the sale of newly originated
loans. The Company's principal operating
expenses, aside from interest expense, consist of
compensation and employee benefits, occupancy
costs, federal deposit insurance costs, data
processing expenses and provision for loan losses.
On December 31, 1997, the Company acquired
Freedom Bancshares, Inc., Osage City, Kansas
("Freedom"), the holding company for Citizens
State Bank, Osage City ("Citizens"), with a branch
in Beloit, Kansas. Consolidated assets acquired
in this transaction were approximately $43
million. This acisition, which was accounted
for using the purchase method of accounting,
resulted in goodwill of approximately $2.3
million. Accordingly, the consolidated operating
results of the Company for the three months ended
March 31, 1998 include Citizens from the date of
acquisition.
The home office for the Bank is Manhattan,
Kansas, with branches operating in Auburn, Beloit,
Osage City, and Topeka, Kansas. Additionally, on
April 2, 1998, the Company entered into a
definitive agreement to sell the Beloit, Kansas
branch to Farmers State Bank of Mankato, Kansas.
The transaction is subject to approval from the
appropriate regulatory agencies. It is expected
to be completed sometime this summer.
Net earnings for the first three months of
1998 increased $56,928, or 23.5%, to $299,585 as
compared to the first three months of 1997. Net
interest income increased $325,846, or 36.3%, from
$897,704, to $1,223,550. Noninterest income
increased $141,336, or 95.3%, from $148,247 to
$289,583, due to an increase of 1065.1% in gains
on sale of loans to $61,726 and fees and service
charges from $125,048 to $204,064, or 63.2%. Non
interest expense increased $384,816 or 56.2%.
With the exception of gains on sale of loans, the
acquisition of Freedom contributed significantly
to each of these increases.
Interest Income. Interest income increased
$820,504, or 42.9%, to $2.7 million from $1.9
million in 1997. This increase was due to an
increase in interest on loans of 42.2% to $2.0
million from $1.4 million and interest on
investment securities of $149,151 to $621,525, or
31.6%. The acquisition contributed to the
interest income increase, in addition to the
proceeds of maturing securities being reinvested
in higher-yielding securities. Interest income on
other investments increased substantially from
$37,655 to $116,776, or by 210.1% as a result of
the acquisition and the increase in funds
available for investment in short-term overnight
interest-bearing deposits.
Interest Expense. As compared to the same
period a year earlier, interest expense during the
first three months of 1998 increased by $479,658,
or 47.9%. Interest expense on deposits increased
$380,413, or 40.0% while interest expense on
borrowings, consisting of advances from the
Federal Home Loan Bank of Topeka (the "FHLB"),
repurchase agreements and funds borrowed for the
acquisition of Freedom, increased $99,245, or
191.3%, during this time period. The increased
expense on deposits is a result of the
acquisition. Interest on borrowed funds increased
as a result of the funds borrowed for the
acquisition and the liabilities assumed from
Freedom.
Provision for Loan Losses. The provision for
loan losses was $30,000 for the first quarter of
1998, compared to $15,000 in 1997. The increased
provision is a result of the acquisition. At
March 31, 1998, the allowance for loan losses was
$1,363,456, or 1.5% of gross loans outstanding,
compared to $835,397 at March 31, 1997. The
acquisition of Freedom increased the allowance by
$461,389. The allowance for loan losses was $1.3
million at December 31, 1997, or 1.5% of gross
loans outstanding.
Noninterest Income. Noninterest income
increased $141,336, or 95.3%, for the first three
months of 1998 to $289,583 compared to the same
period in 1997. This increase was due to an
increase of 63.2% in fees and service charges from
$125,048 to $204,064, of which $59,450 was
attributable to the acquisition. Gains on sale of
loans increased $56,428 to $61,726, or 1065.1%, as
a result of increased loan originations due to
refinancing because of lower interest rates.
Other noninterest income increased 32.9% to
$23,793 from $17,901.
Noninterest Expense. Noninterest expense
increased $384,816, or 56.2%, to $1.1 million for
the first three months of 1998 over the same
period in 1997. This large increase was due in
part to the acquisition. Occupancy and equipment
expense increased $71,246 or 75.6% and
compensation increased 53.5% to $492,596, both
primarily due as a result of the acquisition.
Amortization increased 125.9% to $63,871 from
$2$28,276 as a result of the acquisition. Other
by 44.5%.
Asset Quality and Distribution. The
Company's total assets increased to $149.5 million
at March 31, 1998 from $144.8 million at December
31, 1997 which included Freedom's assets. The
Company's primary ongoing sources of funds are
deposits, proceeds from principal and interest
payments on loans and mortgage backed securities
and proceeds from the sale of mortgage loans and
mortgage backed securities. While maturities and
scheduled amortization of loans are a predictable
source of funds, deposit flows and mortgage
prepayments are greatly influenced by general
interest rates, economic conditions, competition,
and the restructuring of the financial services
industry.
The primary investing activities of the
Company are the origination of mortgage, consumer,
and commercial loans and the purchase of
investment and mortgage backed securities. During
the first three months of 1998, the Company
originated mortgage loans in the amount of $11.8
million compared to $3.9 million during the first
three months of 1997. Generally, the Company
originates long term fixed rate residential
mortgage loans for immediate sale and does not
warehouse loans to speculate on interest rates.
Efforts of management to diversify the loan
portfolio have resulted in the Company having
originated commercial non-mortgage and consumer
loans of $3.5 million during the first three
months of 1998, compared to $8.0 million in 1997.
Originations in 1997 included one credit in the
amount of $5.0 million.
Management believes that the quality of the
loan portfolio continues to be strong as evidenced
by the small number and amount of loans past due
30 days or more. As of March 31, 1998, eleven
real estate loans were more than 30 days past due
with a total balance of $417,444, which was 0.47%
of total loans outstanding. Six loans, totaling
$121,342, were on non-accrual status as of March
31, 1998. With the exception of guaranteed
student loans, nine consumer loans totaling
$68,451, or 0.08%, were over 30 days past due as
of March 31, 1998 and three loans with a balance
of $7,858 were on non-accrual. Additionally,
eleven commercial loans totaling $175,821, or
.20%, were past due. Sixteen commercial loans
totaling $151,472 were on non-accrual status. At
March 31, 1998, the Company had outstanding loan
commitments of $17.9 million.
During the three months ended March 31, 1998,
the Company purchased securities to be held to
maturity and available for sale in the amount of
$8.9 million. These activities were funded
primarily by maturing securities of $3.9 million,
deposits, and proceeds from the sale of fixed rate
mortgage loans totaling $7.4 million.
Liability Distribution. At March 31, 1998,
total deposits had a net increase of $4.8 million
from December 31, 1997, while borrowings decreased
$.6 million as FHLB advances were paid in full as
they matured.
Checking and NOW accounts at the end of the
first quarter of 1998 totaled $38.5 million, or
30.3% of deposits, compared to approximately
28.0%, or $34.2 million at December 31, 1997.
Certificates of deposit decreased to $60.9
million at March 31, 1998 from $62.4 million, or
2.4%. Money market funds also decreased 4.2% from
December 31, 1997 to $17.9 million from $18.7
million, and are 14.1% of total deposits, while
savings accounts increased from $7.0 million to
$9.7 million.
Liquidity. The Company's most liquid assets
are cash and cash equivalents and investment
securities available for sale. The level of these
assets are dependent on the Company's operating,
financing, lending and investing activities during
any given period. At March 31, 1998, and December
31, 1997 respectively, these liquid assets totaled
$51.1 million and $42.1 million. During periods
in which the Company is not able to originate a
sufficient amount of loans and/or periods of high
principal prepayments, the Company increases its
liquid assets by investing in short-term U. S.
Government and agency securities.
Liquidity management is both a daily and
long-term function of management strategy. Excess
funds are generally invested in short-term
investments. In the event the Company requires
funds beyond its ability to generate them
internally, additional funds are generally
available through the use of FHLB advances, a line
of credit with the FHLB or through sales of
securities. At March 31, 1998, the Company had
outstanding FHLB advances of $4.9 million and had
nothing outstanding on its $15 million line of
credit. Additionally, the Company has guaranteed
a loan made to the Company's Employee Stock
Ownership Plan (the "ESOP") with an outstanding
balance of $268,909 at March 31, 1998, to fund the
ESOP's purchase of shares in the Company's common
stock offering in 1993. The total borrowings by
the Company were $8.5 million at March 31, 1998,
which includes $2.9 million borrowed by the
Company for the acquisition of Freedom, compared
to $9.1 million at December 31, 1997.
Capital. The Federal Reserve Board has
established capital requirements for bank holding
companies which generally parallel the capital
requirements for national banks under the Office
of the Comptroller of the Currency (the "OCC")
regulations. The regulations provide that such
standards will generally be applied on a bank-only
(rather than a consolidated) basis in the case of
a bank holding company with less than $150 million
in total consolidated assets, such as the Company.
The Company's total capital of $12.6 million is,
however, well in excess of the Federal Reserve
Board's consolidated minimum capital requirements.
At March 31, 1998, the Bank continued to
maintain a sound Tier 1 capital ratio of 8.18% and
a risk based capital ratio of 14.68%. As shown by
the following table, the Bank's capital exceeded
the minimum capital requirements (dollars in
thousands):
<TABLE>
<CAPTION
March 31, 1998
Amount Percent Required
<S> <C> <C> <C>
Tier 1 Capital $12,255 8.18% 4.00%
Risk Based Capital 13,298 14.68% 8.00%
</TABLE>
Banks and bank holding companies are generally
expected to operate at or above the minimum
capital requirements. The above ratios are well
in excess of regulatory minimums and should allow
the Company to operate without capital adequacy
concerns. The Federal Deposit Insurance
Corporation Improvement Act of 1991 establishes a
bank rating system based on the capital levels of
banks. The Bank is rated "well capitalized",
which is the highest rating available under this
capital-based rating system.
Year 2000. The federal banking regulators
have issued several statements providing guidance
to financial institutions on the steps the
regulators expect financial institutions to take
to become Year 2000 compliant. Each of the
federal banking regulators is also examining the
financial institutions under its jurisdiction to
assess each institution's compliance with the
outstanding guidance. If an institution's
progress in addressing the Year 2000 is deemed by
its primary federal regulator to be less than
satisfactory, the institution will be required to
enter into a memorandum of understanding with the
regulators which will, among other things, require
the institution to promptly develop and submit an
acceptable plan for become Year 2000 compliant and
to provide periodic reports describing the
institution's progress in implementing the plan.
Failure to satisfactorily address the Year 2000
problem may also expose a financial institution to
other forms of enforcement action that its primary
federal regulator deems appropriate to address the
deficiencies in the institution's Year 2000
remediation program.
The Company utilizes and is dependent upon
data processing systems and software to conduct
its business. The data processing systems and
software include those developed and maintained by
the Company's data processing provider and
purchased software which is run on in-house
computer networks. In 1997, the Company initiated
a review and assessment of all hardware and
software to confirm that it will function properly
in the year 2000. The Company's data processing
provider and those vendors which have been
contacted have indicated that they expect their
hardware and/or software will be Year 2000
compliant by the end of 1998. This will allow
time for compliance testing. Additionally, alarms,
elevators, heating and cooling systems, and other
computer-controlled mechanical devices on which
the Company relies are being evaluated. Those
found not to be in compliance will be modified or
replaced with a compliant product. While there
will be expenses incurred during the next two
years, the Company has not identified any
situations at this time that it anticipates will
require material cost expenditures to become fully
compliant. It is currently estimated that costs
could be approximately $150,000, although this
number could vary significantly based upon the
results of testing and other factors. An analysis
has been done for the Company's borrowing
customers and the Company will also initiate a
program to visit with those identified to
communicate with key bank customers to ensure they
are properly prepared for the Year 2000 and will
not suffer serious adverse consequences. This
same analysis is being performed for large
depositors and funds providers and should be
completed shortly.
Safe Harbor Statement Under the Private
Securities Litigation Reform Act of 1995. This
quarterly report contains certain forward looking
statements within the meaning of Section 27A of
the Securities Act of 1933, as amended and Section
21E of the Securities Exchange Act of 1934, as
amended. The Company intends such forward-looking
statements to be covered by the safe harbor
provisions for forward-looking statements
contained in the Private Securities Reform Act of
1995, and is including this statement for purposes
of these safe harbor provisions. Forward-looking
statements, which are based on certain assumptions
and describe future plans, strategies and
expectations of the Company, are generally
identifiable by use of the words "believe,"
"expect," "intend," "anticipate," "estimate,"
"project" or similar expressions. The Company's
ability to predict results or the actual effect of
future plans or strategies is inherently
uncertain. Factors which could have a material
adverse affect on the operations and future
prospects of the Company and the subsidiary
include, but are not limited to, changes in:
interest rates, general economic conditions,
legislative/regulatory changes, monetary and
fiscal policies of the U.S. Government, including
policies of the U.S. Treasury and the Federal
Reserve Board, the quality or composition of the
loan or investment portfolios, demand for loan
products, deposit flows, competition, demand for
financial services in the Company's market area
and accounting principles, policies and
guidelines. These risks and uncertainties should
be considered in evaluating forward-looking
statements and undue reliance should not be placed
on such statements. Further information
concerning the Company and its business, including
additional factors that could materially affect
the company's financial results, is included in
the Company's filings with the Securities and
Exchange Commission.
MNB BANCSHARES, INC. AND SUBSIDIARIES
PART II
ITEM 1. LEGAL PROCEEDINGS.
There are no material pending legal
proceedings to which the Company or its
subsidiaries is a party other than ordinary
routine litigation incidental to their respective
businesses.
ITEM 2. CHANGES IN SECURITIES.
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS.
None
ITEM 5. OTHER INFORMATION.
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
A. Exhibits
Exhibit 27. Financial Data Schedule.
B. Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its
behalf by the undersigned thereunto duly
authorized.
MNB BANCSHARES, INC.
Date: May 13, 1998 /s/Patrick L. Alexander
President and Chief Executive Officer
Date: May 13, 1998 /s/Susan E. Roepke
Vice President, Secretary, Treasurer and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
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