December 3, 2012
MARS, PENNSYLVANIA – Mars National Bank (OTCQB: MNBP) announced today that for the nine months ended September 30, 2012, the Bank earned $871,000 as compared to $1,265,000 for the same period in the prior year, a decrease of $394,000 or 31.1%. This decrease primarily relates to the historically low interest rate environment, limited commercial lending opportunities, low reinvestment yields and continued growth of deposits. Net interest income decreased $600,000 or 7.9%. Net interest spread and net interest margin equaled 2.93% and 3.07% in 2012, respectively, as compared to 3.15% and 3.32%, respectively, in 2011.
Loans outstanding declined to $140.6 million at September 30, 2012 as compared to $148.7 at December 31, 2011 while deposits grew to $315.5 million at September 30, 2012 from $303.6 million at December 31, 2011.
The provision for loan losses totaled $15,000 for the nine months ended September 30, 2012 as compared to $90,000 for the same period in 2011. This was reflective of the Bank’s strong credit quality position with delinquencies at 0.59% of total loans and the allowance for loan losses to loans coverage at 1.46%.
Non-interest income was higher by $31,000 for the nine months ended September 30, 2012. Included in non-interest income were recognized gains on sale of available for sale securities of $279,000 in 2012 as compared to gains of $248,000 for the nine months ended September 30, 2011.
Non-interest expense decreased $84,000 or 1.1% for the nine months ended September 30, 2012, primarily related to the active management of salaries, benefits and occupancy costs.
The Bank recognized tax expense of $15,000 for the nine months ended September 30, 2012 as compared to a tax expense of $31,000 for the same period in the prior year.
Following are additional highlights related to the financial performance of the Bank.
|For the Nine Months Ended September 30,|
|(dollars in thousands, except per share data; unaudited)|
|Net interest income||$7,019||$7,619||-7.9%|
|Provision for loan losses||15||90||-83.3%|
|Earnings per share||$10.89||$15.81||-31.1%|
|Return on average assets||0.34%||0.50%||-16bps|
|Return on average equity||3.14%||4.73%||-159bps|
|Net interest margin||3.07%||3.32%||-25bps|
|At September 30 and December 31,|
|(dollars in millions, except per share data; unaudited)|
|Book value per share||$466.52||$465.87||0.1%|
|Total risk-based capital ratio||21.24%||20.25%||99bps|
|Allowance for loan losses/loans||1.46%||1.38%||8bps|