PRESS RELEASE
Contact:
Patrick L. Alexander
President and Chief Executive Officer
Mark A. Herpich
Chief Financial Officer & Treasurer
(785) 565-2000
FOR IMMEDIATE RELEASE
October 25, 2000
MNB Bancshares, Inc. Announces Third Quarter Earnings and
Declares 30TH Consecutive Cash Dividend
(Manhattan, KS October 25, 2000) MNB Bancshares, Inc. (Nasdaq: MNBB), a
bank holding company based in Manhattan, Kansas, reported that net earnings
for the third quarter of 2000 were $311,000, an increase of 24%, compared to
net earnings of $250,000 for the third quarter of 1999, according to Patrick
L. Alexander, President and Chief Executive Officer. The company also
announced its Board of Directors declared a cash dividend of 6.25 cents per
share to shareholders of record as of November 1, 2000, payable November 13,
2000. This marks the 30th consecutive quarterly dividend the company has
paid. Diluted earnings per share for the third quarter of 2000 were $.20
versus $.16 for the third quarter of 1999. Net earnings for the first nine
months of 2000 were $770,000, compared to $664,000 for the first nine months
of 1999. Diluted earnings per share for the first nine months of 2000 were
$.50 versus $.43 for the first nine months of 1999. The annualized return on
average equity for the third quarter of 2000 was 9.11%.
Commenting on the earnings announcement, Alexander stated that, "Our
2000 third quarter net earnings increased $61,000 from last year's comparable
quarter. Additionally, third quarter net interest income was $70,000, or 6%
greater than last year's comparable quarter. The efforts of our lending
staff and the relationships they have established have resulted in an $11.5
million increase in net loans outstanding from the prior year. The increase
in net interest income is generally attributable to this loan growth, which
has been broad based across both our commercial and retail loan portfolios.
These efforts are creating a more diversified loan portfolio and should
continue to enhance our interest margins by countering interest margin
pressures from our deposit base." Alexander further commented, "The strong
growth in our loan portfolio, along with initiatives related to fee and
service charge income which increased $106,000, allowed us to show a nice
improvement over the third quarter of 1999. This increase occurred despite
continued weakness in our gains on sale of loans as higher interest rates
have continued to reduce residential mortgage loan originations."
Alexander stated, "Our acquisition of Wamego and Osage City branches of
Commercial Federal Bank on July 21, 2000, along with our new west Manhattan
presence in the Dillon supermarket will enable the company to grow and expand
relationships as well as improve our customers' banking convenience. These
facilities also complement our efforts to increase our volume of lower cost
core transaction accounts which will allow us to continue to expand our net
interest margin."
Net interest income before provision for loan losses increased $70,000,
or 6% to $1.2 million for the quarter ended September 30, 2000 compared to
the same period in 1999. Average loans for the third quarter of 2000 were
$94.7 million compared to average loans of $81.8 million for the third
quarter of 1999. Non-interest income was $348,000 for the quarter ended
September 30, 2000 compared to $247,000 for the same period in 1999.
Contributing to this increase was an increase in fee and service charge
income of $106,000, partially offset by a decline in gains on sale of loans
of $6,000. Non-interest expense increased $68,000, or 7% for the third
quarter of 2000 compared to the same period in 1999.
Net interest income before provision for loan losses increased
$225,000, or 7% to $3.6 million for the nine months ended September 30, 2000
compared to the same period in 1999. Average loans for the first nine months
of 2000 were $91.2 million compared to average loans of $78.1 million for the
first nine months of 1999. Fees and service charges increased from $598,000
to $805,000, or by 35% for the first nine months of 2000 compared to the same
period in 1999. Partially offsetting this increase was a decline in gains on
sale of loans of $55,000, and a $30,000 loss on sale of investments during
the first nine months of 2000. This loss on sale of investments resulted
from restructuring the investment portfolio to obtain higher yielding
investments with a projected break-even point within fiscal 2000. As a
result, total non-interest income was $879,000 for the nine months ended
September 30, 2000 compared to $764,000 for the same period in 1999.
Non-interest expense increased $158,000, or 5% for the first nine months of
2000 compared to the same period in 1999, resulting from increased expenses
for compensation and benefits, advertising, and occupancy and equipment.
These increased expense categories, which related primarily to the opening
and operating expenses of our new Dillons supermarket branch facility that
opened in January 2000 and the Wamego and Osage City branch acquisitions
during July 2000, were partially offset by reductions in professional fees
and federal deposit insurance premiums.
MNB Bancshares, Inc. (MNBB) is the holding company for Security
National Bank. Security National Bank has branches in Auburn, Manhattan (2),
Osage City, and Topeka, Kansas.
Financial highlights for MNB Bancshares, Inc. are attached.
Forward Looking Statements. This release may contain forward looking
statements. Forward looking statements are identifiable by the inclusion of
such qualifications as expects, intends, believes, may, likely or other
indications that the particular statements are not based upon facts but are
rather based upon the company's beliefs as of the date of this release.
Actual events and results may differ significantly from those described in
such forward looking statements, due to changes in the economy, interest
rates or other factors. For additional information about the factors, please
review our filings with the Securities and Exchange Commission.
###
CONDENSED CONSOLIDATED BALANCE SHEETS:
(unaudited)(audited)
At September 30, At December 31,
ASSETS 2000 1999
Cash and cash equivalents $ 3,421,431 $ 4,315,013
Investment securities 44,424,418 45,005,468
Loans receivable, net (1) 94,472,542 87,720,201
Buildings & equipment, net 2,287,791 2,288,028
Other assets 4,943,496 3,933,590
TOTAL ASSETS $ 149,549,678 $143,262,300
LIABILITIES
Deposits $ 127,770,127 $112,336,329
Advances from FHLB and other
borrowed money 6,591,935 16,698,857
Other liabilities 1,182,924 936,730
Total liabilities 135,544,986 129,971,916
Stockholders' equity 14,004,692 13,290,384
TOTAL LIABILITIES AND
STOCKHOLDER'S EQUITY $149,549,678 $143,262,300
(1)Loans receivable are presented after adjustments for undisbursed loan funds,
unearned fees and discounts and the allowance for loan losses.
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (unaudited):
Nine months ended Sept.30, Three months ended Sept 30,
2000 1999 2000 1999
Interest income $ 8,053,813 $ 7,046,404 $ 2,857,383 $ 2,417,883
Interest expense 4,454,806 3,672,296 1,617,974 1,248,226
Net interest income 3,599,007 3,374,108 1,239,409 1,169,657
Provision for loan losses 65,000 0 30,000 0
Net interest income after
provision for loan losses 3,534,007 3,374,108 1,209,409 1,169,657
Non-interest income (2) (3) 878,912 763,690 348,464 246,750
Non-interest expense 3,289,944 3,132,243 1,107,217 1,038,757
Income tax expense 352,723 341,357 139,380 127,415
Net earnings $ 770,252 $ 664,198 $ 311,276 $ 250,235
Net earnings per share (4)
Basic $ 0.51 $ 0.44 $ 0.21 $ 0.16
Diluted 0.50 0.43 0.20 0.16
Book value per share (4) $ 9.24 $ 8.70 $ 9.24 $ 8.70
Shares outstanding at end of
period 1,516,115 1,521,397 1,516,115 1,521,397
Weighted average diluted common and common
equivalent shares outstanding 1,549,626 1,560,759 1,547,045 1,561,227
(2) Total non-interest income includes gains on sale of loans of $24,712 for
the three months ended September 30, 2000 compared to $30,377 for the
three months ended September 30, 1999. Total non-interest income
includes gains on sale of loans of $64,502 for the nine months ended
September 30, 2000 compared to $119,568 for the nine months ended
September 30, 1999.
(3) Total non-interest income includes loss on sale of investments of $0 and
$30,368 for the three and nine months ended September 30, 2000 as
compared to gain on sale of investments of $0 and $7,147 for
the three and nine months ended September 30, 1999, respectively.
(4) Net earnings per share and book value per share at or for the periods
ended September 30, 1999 have been adjusted to give effect to the 5%
stock dividend paid during August 2000.
================================================================================
Nine months ended Sept 30, Three months ended Sept 30,
OTHER DATA (unaudited): 2000 1999 2000 1999
Return on average assets (5) 0.70% 0.65% 0.81% 0.71%
Return on average equity (5) 7.67% 6.70% 9.11% 7.51%
Equity to total assets 9.36% 9.35% 9.36% 9.35%
(5) Information is annualized.
