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, 1999
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 66502
(Address of principal executive offices) (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 7, 1999,
the Registrant had outstanding 1,370,638 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 - 9
Item 3. Quantitative and Qualitative Disclosures
about Market Risk 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,
1999 1998
<S> <C> <C>
ASSETS (Unaudited)
Cash $ 3,122,112 $ 3,875,529
Investment securities:
Held-to-maturity at amortized cost 2,180,474 2,266,343
(estimated fair value of $2,206,000
and $2,296,000 respectively)
Available-for-sale at estimated fair value 47,926,002 48,384,518
Loans, net 75,444,363 75,052,990
Premises and equipment, net 2,179,902 2,231,850
Other assets 4,086,238 4,019,000
Total assets $ 134,939,091 $ 135,830,230
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits $ 111,328,003 $ 115,062,022
Other borrowings 9,273,135 6,529,501
Accrued expenses, taxes and other liabilities 1,087,999 997,034
Total liabilities 121,689,137 122,588,557
Stockholders' equity:
Common stock, $.01 par,
3,000,000 shares authorized,
1,370,638 and 1,288,476 shares
issued and outstanding at
1999 and 1998, respectively 13,706 13,680
Additional paid in capital 8,209,927 8,199,525
Retained earnings 5,130,508 5,021,547
Accumulated other comprehensive income 113,225 229,272
Unearned employee benefits (217,412) (222,351)
Total stockholders' equity 13,249,954 13,241,673
Total liabilities and stockholders' equity $ 134,939,091 $ 135,830,230
<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,
1999 1998
<S> <C> <C>
Interest income:
Loans $ 1,597,994 $ 1,996,945
Investment securities 673,516 621,525
Other 31,743 116,776
Total interest income 2,303,253 2,735,246
Interest expense:
Deposits 1,105,191 1,330,574
Borrowed funds 119,641 151,122
Total interest expense 1,224,832 1,481,696
Net interest income 1,078,421 1,253,550
Provision for loan losses - 30,000
Net interest income after
provision for loan losses 1,078,421 1,223,550
Noninterest income:
Fees and service charges 181,438 204,064
Gains on sale of loans 52,803 61,726
Other 20,146 23,793
Total noninterest income 254,387 289,583
Noninterest expense:
Compensation and benefits 514,518 492,596
Occupancy and equipment 147,363 165,470
Federal deposit insurance premiums 12,097 14,443
Data processing 33,796 42,209
Amortization 59,350 63,871
Advertising 9,964 15,673
Professional fees 42,610 49,216
Stationery, printing
and office supplies 20,542 22,074
Other 199,606 204,138
Total noninterest expense 1,039,846 1,069,690
Earnings before income taxes 292,962 443,443
Income tax expense 98,502 143,858
Net earnings $ 194,460 $ 299,585
Earnings per share:
Basic 0.14 $ 0.22
Diluted 0.14 $ 0.21
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,
1999 1998
<S> <C> <C>
Net cash provided by
operating activities $ 793,883 $ 1,336,002
INVESTING ACTIVITIES
Net (increase) decrease in loans (804,035) 1,435,812
Maturities and prepayments
of investments held to maturity 5,184 1,584,540
Maturities and prepayments of
investments available for sale 5,298,792 2,318,285
Proceeds from sale of invest-
ments available for sale 1,101,438 -
Proceeds from sale of invest-
ments held to maturity 102,317 -
Purchase of investments
available for sale (6,171,414) (8,855,479)
Proceeds from sale of
foreclosed assets - 10,148
Purchases of premises
and equipment, net (19,065) (85,556)
Net cash used in investing activities (486,783) (3,592,250)
FINANCING ACTIVITIES
FHLB advances (repayment), net 3,398,573 (535,714)
Net increase (decrease) in deposits (3,734,019) 4,750,738
Net decrease in securities sold under
agreements to repurchase - (17,316)
Issuance of common stock under
stock option plan 10,428 30,134
Payment of dividends (85,499) (80,279)
Repayment on note payable (650,000) -
Net cash provided by (used in)
financing activities (1,060,517) 4,147,563
Net increase (decrease) in cash (753,417) 1,891,315
Cash at beginning of period 3,875,529 6,698,451
Cash at end of period $ 3,122,112 $ 8,589,766
Supplemental disclosure of cash flow information:
Cash paid during period for interest $ 1,212,238 $ 1,462,180
Cash paid during period for taxes - $ 402,212
Supplemental schedule of noncash investing activities:
Transfer of loans to real estate owned $ 50,000 -
<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, 1998, 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, 1998 condensed
consolidated balance sheet has been derived from the
audited balance sheet as of that date. The results
of the interim period ended March 31, 1999 are not
necessarily indicative of the results expected for
the year ended December 31, 1999.
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 annually since 1994.
The shares used in the calculation of basic and
diluted income per share, which have been restated
for the annual 5% stock dividends are shown below:
<TABLE>
<CAPTION>
For the quarters ended
March 31,
1999 1998
<S> <C> <C>
Weighted average common shares outstanding
1,369,425 1,351,041
Stock options 46,508 61,960
Total 1,415,933 1,413,001
</TABLE>
3. 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,
1999 1998
<S> <C> <C>
Net income $194,460 $299,585
Unrealized holding gains
(losses) (185,525) 44,144
Less - reclassification adjustment
for gain included in net income 1,647 -
Net unrealized gains (losses)
on securities (187,172) 44,144
Income tax expense (benefit) (71,125) 16,775
Total comprehensive income $78,413 $326,954
</TABLE>
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 home office
for the Bank is Manhattan, Kansas, with branches
operating in Auburn, Osage City, and Topeka, Kansas.
The Company sold a branch in Beloit, Kansas during
June 1998, which included approximately $3.3 million
of loans and $2.8 million of deposits. In addition,
just prior to the sale, public funds of approximately
$3.0 million were withdrawn from the Beloit branch.
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.
Net earnings for the first three months of 1999
decreased $105,125, or 35.1%, to $194,460 as compared
to the first three months of 1998. Net interest
income decreased $175,129, or 14.0%, from $1,223,550,
to $1,078,421. This decline in net earnings and net
interest income was primarily the result of a
decrease of approximately $11 million in loans
outstanding related to increased levels of home
mortgage refinancing due to lower rates. Noninterest
income decreased $35,196, or 12.2%, from $289,583 to
$254,387, due to a decrease in overdraft fees. Non
interest expense decreased $29,844 or 2.8%.
Interest Income. Interest income decreased
$431,993, or 15.8%, to $2.3 million from $2.7 million
in the first quarter of 1998. The Company
experienced a significant decline in one-to-four
family loans during the year ended December 31, 1998
as borrowers took advantage of declining mortgage
loan interest rates. In accordance with the
Company's interest rate risk guidelines, the majority
of the long-term fixed rate mortgage loans originated
in 1998 were sold to secondary market investors.
While the Company was able to fund other types of
loans as these home mortgages were refinanced, the
volume of refinancings was so great that a
significant amount of the funds available for
investment were invested in relatively short term
investment securities, which typically carry lower
interest rates than can be obtained on commercial and
consumer loans.
Interest Expense. As compared to the same
period a year earlier, interest expense during the
first three months of 1999 decreased by $256,864, or
17.3%. Interest expense on deposits decreased
$225,383, or 16.9% while interest expense on
borrowings, consisting of advances from the Federal
Home Loan Bank of Topeka (the "FHLB") and funds
borrowed for acquisitions decreased $31,481, or
20.8%, during this time period. Interest expense
decreased as a result of a decline in interest rates,
a decline in deposits resulting from the Beloit
branch sale, and the principal repayments on the
Company's note payable.
Provision for Loan Losses. The Company did not
make a provision for loan losses for the first
quarter of 1999, as a result of the $9 million
decline in one to four family loans and the strong
quality of the loan portfolio. The provision for
loan losses was $30,000 in the first quarter of 1998.
At March 31, 1999, the allowance for loan losses was
$1,269,574, or 1.7% of gross loans outstanding,
compared to $1,363,456, or 1.5% of gross loans outstanding,
at March 31, 1998. The allowance for loan losses
was $1.3 million at December 31, 1998, or 1.7% of gross loans
outstanding.
Noninterest Income. Noninterest income
decreased $35,196, or 12.2%, for the first three
months of 1999 to $254,387 compared to the same
period in 1998. This decrease was primarily due to a
decline of 11.1% in fees and service charges from
$204,064 to $181,438, of which approximately $30,000
was attributable to a decrease in overdraft fee
income.
Noninterest Expense. Noninterest expense
decreased $29,844, or 2.8%, to $1.0 million for the
first three months of 1999 over the same period in
1998.
Asset Quality and Distribution. The Company's
total assets remained stable at $134.9 million at
March 31, 1999 compared to $135.8 million at December
31, 1998. The Company's primary ongoing sources of
funds are deposits, proceeds from principal and
interest payments on loans and investment securities
and proceeds from the sale of mortgage loans and
investment 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 1999, the Company originated mortgage loans
in the amount of $5.0 million compared to $11.8
million during the first three months of 1998.
Generally, the Company originates long term fixed
rate residential mortgage loans for immediate sale
and does not warehouse loans to speculate on interest
rates.
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 one month
or more. As of March 31, 1999, nine real estate
loans were more than one month past due with a total
balance of $598,068, which was 0.8% of total loans
outstanding. Three of these loans, totaling
$277,344, were on non-accrual status as of March 31,
1999. With the exception of guaranteed student
loans, sixteen consumer loans totaling $85,054, or
0.1%, were over one month past due as of March 31, 1999
and two of these loans with a balance of $9,507 were
on non-accrual. Additionally, twenty-one commercial
loans totaling $521,875, or 0.7%, were past due.
Seven of these commercial loans totaling $133,871
were on non-accrual status.
During the three months ended March 31, 1999,
the Company purchased investment securities available
for sale in the amount of $6.2 million. These
activities were funded primarily by maturities and
sales of investment securities of $5.3 million, along
with deposits and proceeds from the sale of fixed
rate mortgage loans.
Liability Distribution. At March 31, 1999,
total deposits had a net decrease of $3.7 million
from December 31, 1998, while borrowings increased
$2.7 million. This change in the liability mix is
primarily related to daily fluctuations experienced
on the deposit balances maintained by our public
funds providers.
Noninterest bearing demand accounts at the end
of the first quarter of 1999 totaled $9.1 million, or
8.2% of deposits, compared to approximately 8.1%, or
$9.3 million at December 31, 1998. Certificates of
deposit increased to $55.5 million at March 31, 1999
from $54.2 million, or 2.5%. Money market and NOW
accounts decreased 13.5% from December 31, 1998 to
$35.7 million from $41.2 million, and were 32.0% of
total deposits, while savings accounts increased
from $10.3 million to $11.0 million. The decrease
in money market and NOW accounts was primarily
resulting from the fluctuating balances of our
public funds providers accounts.
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, 1999, and December
31, 1998 respectively, these liquid assets totaled
$51.0 million and $52.3 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, 1999, the Company
had outstanding FHLB advances of $4.5 million and had
$3.5 million 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
$217,412 at March 31, 1999, to fund the ESOP's
purchase of shares in the Company's common stock
offering in 1993. The total borrowings by the
Company were $9.3 million at March 31, 1999, compared
to $6.5 million at December 31, 1998.
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 $13.2 million is, however,
well in excess of the Federal Reserve Board's
consolidated minimum capital requirements.
At March 31, 1999, the Bank continued to
maintain a sound Tier 1 capital ratio of 8.75% and a
risk based capital ratio of 16.48%. As shown by the
following table, the Bank's capital exceeded the
minimum capital requirements (dollars in thousands):
<TABLE>
<CAPTION>
March 31, 1999
Amount Percent Required
<S> <C> <C> <C>
Tier 1 Capital $11,809 8.75% 4.00%
Risk Based Capital 12,778 16.48% 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 Compliance. 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 established a
committee and 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 providing mission critical systems and
software which have been contacted have indicated
their hardware and/or software is Year 2000
compliant. Testing of the mission critical systems
and software was completed as of December 31, 1998.
Testing on non-mission critical items was completed
as of March 31, 1999. Additionally, alarms,
elevators, heating and cooling systems, and other
computer-controlled mechanical devices on which the
Company relies have been evaluated and no significant
problems are anticipated with such systems.
While there will be expenses incurred during
the year, the Company has not identified any
situations at this time that it anticipates will
require material expenditures in order to become
fully compliant. It is currently estimated that
total Year 2000 costs could be approximately
$150,000, almost all of which has already been
recognized and of which a material component was the
reallocation of existing employee time to the Year
2000 project. In the event utility company services
to the Company are significantly curtailed or
interrupted, it would have an adverse effect on the
Company's ability to conduct its business. However,
the Year 2000 problem is pervasive and complex and
can potentially affect any computer process.
Accordingly, no assurance can be given that Year 2000
compliance can be achieved without additional
unanticipated expenditures and uncertainties that
might affect future financial results.
An analysis has been done of the Company's
borrowing customers. The Company has initiated a
program to communicate with identified key bank
customers to ensure they are properly prepared for
the Year 2000. The Company does not anticipate that
these credit customers will cause serious adverse
consequences on the operations of the Company. This
same analysis has been performed for large depositors
and funds providers with similar results.
A contingency and business resumption plan has been
developed and tested by the Company to provide for
reducing the business interruption of normal business
operation in the event of a Year 2000 related
failure. This plan continues to be evaluated and
revised if necessary, based on testing results and
vendor notifications.
MNB BANCSHARES, INC. AND SUBSIDIARIES
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
The Company's assets and liabilities are
principally financial in nature and the resulting net
interest income thereon is subject to changes in
market interest rates and the mix of various assets
and liabilities. Interest rates in the financial
markets affect the Company's decision on pricing its
assets and liabilities which impacts net interest
income, a significant cash flow source for the
Company. As a result, a substantial portion of the
Company's risk management activities relates to
managing interest rate risk.
The Company's Asset/Liability Management
Committee monitors the interest rate sensitivity of
the Company's balance sheet using earnings simulation
models and interest sensitivity GAP analysis. The
Company has set policy limits of interest rate risk
to be assumed in the normal course of business and
monitors such limits through its simulation process.
The Company has been successful in meeting the
interest rate sensitivity objectives set forth in its
policy. Simulation models are prepared to determine
the impact on net interest income for the coming
twelve months, including one using rates at December
31, 1998 and forecasting volumes for the twelve month
projection. This position is then subjected to a
shift in interest rates of 200 basis points rising
and 200 basis points falling with an impact to the
Company's net interest income on a one year horizon
as follows:
<TABLE>
<S> <C> <C>
$ change in net interest % of net
Scenari income int. income
200 basis point rising $16,800 0.31%
200 basis point falling (86,400 (1.61%)
</TABLE>
The Company believes that no significant
changes in its interest rate sensitivity position
have occurred since December 31, 1998. The Company
also believes it is appropriately positioned for
future interest rate movements, although it may
experience some fluctuations in net interest income
due to short term timing differences between the
repricing of assets and liabilities.
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 12, 1999
__________________________________
/s/ Patrick L. Alexander
President and Chief Executive Officer
Date: May 12, 1999
__________________________________
/s/ Mark A. Herpich
Vice President, Secretary, Treasurer
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 3,122,112
<INT-BEARING-DEPOSITS> 0
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 47,926,002
<INVESTMENTS-CARRYING> 2,180,474
<INVESTMENTS-MARKET> 2,206,000
<LOANS> 75,444,363
<ALLOWANCE> 1,269,574
<TOTAL-ASSETS> 134,939,091
<DEPOSITS> 111,328,003
<SHORT-TERM> 3,470,000
<LIABILITIES-OTHER> 1,087,999
<LONG-TERM> 5,803,135
0
0
<COMMON> 13,706
<OTHER-SE> 13,236,248
<TOTAL-LIABILITIES-AND-EQUITY> 134,939,091
<INTEREST-LOAN> 1,597,994
<INTEREST-INVEST> 673,516
<INTEREST-OTHER> 31,743
<INTEREST-TOTAL> 2,303,253
<INTEREST-DEPOSIT> 1,105,191
<INTEREST-EXPENSE> 1,224,832
<INTEREST-INCOME-NET> 1,078,421
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 1,647
<EXPENSE-OTHER> 1,039,846
<INCOME-PRETAX> 292,962
<INCOME-PRE-EXTRAORDINARY> 194,460
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 194,460
<EPS-PRIMARY> 0.14
<EPS-DILUTED> 0.14
<YIELD-ACTUAL> 3.43
<LOANS-NON> 420,722
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,291,901
<CHARGE-OFFS> 25,720
<RECOVERIES> 3,393
<ALLOWANCE-CLOSE> 1,269,574
<ALLOWANCE-DOMESTIC> 896,772
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 373,861
</TABLE>
