May 13, 2013
Mars National Bank Announces Earnings
MARS, PENNSYLVANIA –Mars National Bank (OTCQB: MNBP) announced today that for the
three months ended March 31, 2013, the Bank earned $390,000 as compared to $187,000 for the same
period in the prior year, an increase of $203,000 or 108.9%. This increase primarily relates to the
unanticipated payoff of a large non-accrual loan which resulted in significant interest income being
recognized during the period. This increase was partially offset by generally flat interest rates,
declining net interest margins, continued growth in liquidity, a weak economy, limited commercial
lending opportunities and higher regulatory and operating costs.
income recognized from the aforementioned payoff of a non-accrual loan, new and refinanced loans
originations and lower rates paid on deposit products. The increase was partially offset by continued
maturities and calls of investment securities reinvested at lower yields. Net interest spread and net
interest margin equaled 3.37% and 3.46% at March 31, 2013, respectively, as compared to 2.96% and
3.13%, respectively, in 2012. Loans outstanding declined to $138.5 million at March 31, 2013 as
compared to $144.8 at December 31, 2012 while deposits grew to $313.3 million at March 31, 2013
from $306.6 million at December 31, 2012.
$15,000 recorded for the same period in 2012. This was reflective of the Bank’s strong credit quality
position at March 31, 2013 with delinquencies at 0.11% of total loans and the allowance for loan losses
to loans coverage at 1.48%.
gains on sales of residential mortgages originated for sale and higher investment services income.
primarily related to increased personnel costs in the commercial lending, credit, and mortgage
origination departments, non-recurring expenses associated with the restructuring of the Bank’s
operations functions and increased marketing activities.
to a tax expense of $9,000 for the same period in the prior year.
|For the Three Months Ended March 31,|
|(dollars in thousands, except per share data; unaudited)|
|Net interest income||$2,591||$2,352||10.20%|
|Provision for loan losses||-||15||n/m|
|Income tax (benefit) expense||-95||9||n/m|
|Earnings per share||$4.87||$2.33||108.90%|
|Return on average assets||0.46%||0.22%||24bps|
|Return on average equity||4.30%||2.02%||228bps|
|Net interest margin||3.46%||3.13%||33bps|
|At March 31 and December 31,|
|(dollars in millions, except per share data; unaudited)|
|Book value per share||$459.74||$461.50||-0.40%|
|Total risk-based capital ratio||21.50%||21.53%||-3bps|
|Allowance for loan losses/loans||1.48%||1.42%||6bps|