February 18, 2016
Mars National Bancorp, Inc. Announces Earnings
MARS, PENNSYLVANIA –Mars National Bancorp, Inc. (OTCQX: MNBP) (the “Company”) announced
today that for the twelve months ended December 31, 2015, the Company earned $1,010,000 as compared
to $1,167,000 for the same period in the prior year, a decrease of $157,000 or -13.5%. The decrease in
earnings was primarily due to a decrease in non-interest income and net interest income of $116,000 and
$9,000, respectively, an increase income tax expense and the provision for loan losses expense of $130,000
and $62,000, respectively. These decreases in earnings were partially offset by a reduction in non-interest
expense of $160,000.
Net interest income decreased by $9,000 or 0.1% for the twelve months ended December 31, 2015 as
compared to the same period in 2014. The decrease of $9,000 was primarily due to the decrease in average
investment security balances of $22.6 million for the twelve months ended December 31, 2015 as
compared to the same period in 2014 and earned interest yields which continue to contract. This was
partially offset by an increase in average loan receivables of $36.0 million for the twelve months ended
December 31, 2015 compared to the same period in 2014. The net interest spread and net interest margin
decreased slightly to 2.86% and 2.92% for the year ended December 31, 2015, respectively, as compared to
3.03% and 3.09% for the same period in 2014, respectively.
Loans outstanding increased to $224.4 million or 14.6% at December 31, 2015 as compared to $195.7 at
December 31, 2014 while deposits decreased slightly to $296.2 million or -1.4% at December 31, 2015
compared to $300.4 million at December 31, 2014.
The provision for loan losses totaled $167,000 for the twelve months ended December 31, 2015 as
compared to $105,000 for the same period in the prior year. The Company’s credit quality position at
December 31, 2015 remained very strong as evidenced by delinquencies at 0.09% of total loans, nonaccrual
loans at 0.86% of total loans and the allowance for loan losses to loans coverage at 1.06%.
Non-interest income decreased by $116,000 or 4.3% for the twelve months ended December 31, 2015. The
decrease was primarily the result of a reduction in gain on sale of assets of $277,000 primarily due the
recognized one-time gain of $347,000 associated with the sale of a branch office in 2014. Without this onetime gain variance, non-interest income would have increased $161,000 in 2015 as compared to 2014. This
increase was primarily due to an increase in residential mortgage income of $307,000 and FHLB stock
dividends of $118,000 which was partially offset by a decrease in investment service fees of $201,000 and
a decrease in service charges on deposits of $19,000 and fees associated with debit card activity of $23,000.
Non-interest expense decreased by $160,000 or 1.4% for the twelve months ended December 31, 2015,
primarily related to decreases in consulting costs $144,000, legal costs of $61,000, miscellaneous of
$55,000 and salary and employee benefit costs of $47,000. These decreases were partially offset by an
increase in PA Shares Tax of $82,000, computer services of $54,000 and equipment expense of $36,000.
The Company recognized an income tax expense of $125,000 for the twelve months ended December 31,
2015 as compared to a $5,000 income tax benefit for the same period in the prior year.
Following are additional highlights related to the financial performance of the Company.
FINANCIAL HIGHLIGHTS
2015
2014
Change
EARNINGS
Net interest income
Provision for loan losses
Non-interest income
Non-interest expense
Income tax expense (benefit)
Net income
$9,653
167
2,594
10,945
125
1,010
$9,662
105
2,710
11,105
(5)
1,167
-0.1%
58.6%
-4.3%
-1.4%
SHARE DATA
Earnings per share
$ 12.63
$ 14.59
-13.4%
PERFORMANCE RATIOS
Return on average assets
Return on average equity
Net interest margin
Efficiency ratio
0.28%
2.89%
2.92%
89.37%
0.33%
3.43%
3.09%
89.76%
-5bps
-54bps
-17bps
-39bps
$356.9
224.4
296.2
34.4
$361.4
195.7
300.4
34.7
-1.2%
14.6%
-1.4%
-0.8%
$430.28
15.02%
$433.59
16.72%
-170bps
$0.2
1.9
0.09%
0.86%
1.06%
$0.2
0.7
0.05%
0.35%
1.06%
For the Twelve Months Ended December 31,
(dollars in thousands, except per share data; unaudited)
n/m
-13.5%
At December 31,
(dollars in millions, except per share data; unaudited)
BALANCE SHEET
Assets
Loans
Deposits
Stockholders' equity
CAPITAL
Book value per share
Total risk-based capital ratio
CREDIT QUALITY
Delinquent loans
Nonaccrual loans
Delinquent loans/loans
Nonaccrual loans/loans
Allowance for loan losses/loans
n/m –not meaningful
-0.8%
-4.7%
179.4%
4bps
51bps
0bps