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MSB Financial Corp. Releases First Quarter Earnings

MILLINGTON, N.J., April 29, 2016 (GLOBE NEWSWIRE) -- MSB Financial Corp. (NASDAQ:MSBF) (the “Company”), parent company of Millington Bank, reported today the results of its operations for the three months ended March 31, 2016.

The Company reported net income of $159,000 for the three months ended March 31, 2016, compared to net income of $216,000 for the three months ended March 31, 2015. Net income per diluted common share was $0.03 for the three months ended March 31, 2016 and $0.04 for the three months ended March 31, 2015. The results of operations for the three months ended March 31, 2015 reflect the results of operations of MSB Financial Corp., a federal corporation which was the predecessor company to the Company.

Total assets were $380.1 million at March 31, 2016, compared to $375.7 million at December 31, 2015, an increase of $4.4 million or 1.2%. During 2016, the Company experienced growth of $8.4 million or 3.2%, in loans receivable, net. Commercial and multi-family real estate loans continued to have the most growth during the first three months of 2016 as the Company continues to diversify its loan portfolio.

The following table summarizes loan balances and composition at March 31, 2016 and December 31, 2015:

At At
March 31, December 31,
(In thousands)2016 2015
Residential mortgage:
One-to-four family$155,764 55.9% $154,624 57.1%
Home equity 34,484 12.4 35,002 12.9
Total residential mortgage 190,248 68.3 189,626 70.0
Commercial and multi-family real estate 65,227 23.4 59,642 22.0
Construction 11,280 4.0 10,895 4.0
Commercial and industrial 11,399 4.1 10,275 3.8
Total commercial loans 87,906 31.5 80,812 29.8
Consumer loans 371 0.2 493 0.2
Total loans receivable 278,525 100.0% 270,931 100.0%
Less:
Loans in process 3,729 4,600
Deferred loan fees 412 417
Allowance 3,671 3,602
Total loans receivable, net$270,713 $262,312

Total deposits at March 31, 2016 were $276.8 million compared with $262.6 million at December 31, 2015. Overall, deposits increased by $14.2 million, or 5.4% with most of the growth occurring in interest demand deposits of $8.0 million or 19.1%. Noninterest demand deposits also increased $5.0 million, or 17.6%. Most of the growth in these two categories was attributable to developing stronger relationships with our commercial and small business customers.

The following table summarizes deposit balances and composition at March 31, 2016 and December 31, 2015:

At At
(Dollars in thousands)March 31, 2016 December 31, 2015
Noninterest demand$33,139 11.97% $28,173 10.73%
Interest demand 49,875 18.02 41,893 15.95
Savings 103,575 37.41 102,196 38.92
Money Market 5,211 1.88 4,928 1.88
Total demand deposits 191,800 69.28 177,190 67.48
Certificates of Deposit 85,041 30.72 85,408 32.52
Total Deposits$276,841 100.00% $262,598 100.00%

“We are pleased with the progress we have made during the first quarter of 2016,” stated Michael A. Shriner, President and Chief Executive Officer. “Much of our staff has been focused on our core system conversion, which will occur in May 2016, as well as normal activities. The investment in our infrastructure will position us well for the years ahead and we are looking forward to our transition. The organization remains committed to continue to enhance and strengthen its defenses specifically as they relate to mitigating the ever increasing risk of cybersecurity.”

Mr. Shriner added, “So far in 2016, our efforts have resulted in the positive growth and diversification of the organization’s deposit portfolio as well as its loan portfolio. We are encouraged that this ongoing strategy has provided a favorable expansion of the company’s net interest margin.”

Forward Looking Statement Disclaimer

The foregoing release may contain forward-looking statements concerning the financial condition, results of operations and business of the Company. We caution that such statements are subject to a number of uncertainties and actual results could differ materially, and, therefore, readers should not place undue reliance on any forward-looking statements. Factors that may cause actual results to differ from those contemplated include our continued ability to grow the loan portfolio, the successful conversion of our core system and our continued ability to manage cybersecurity risks.


MSB FINANCIAL CORP
(In Thousands, except for per share amount) (Unaudited)(Unaudited)
Statement of Financial Condition Data: 03/31/201603/31/2015
Total assets $380,134 $347,455
Cash and cash equivalents 14,515 6,849
Loans receivable, net 270,713 239,274
Securities held to maturity 73,603 78,228
Deposits 276,841 265,760
Federal Home Loan Bank advances 22,675 37,100
Total stockholders' equity 76,560 41,290
Stock Information:
Number of shares of common stock outstanding 5,953 5,010
Book value per share of common stock $12.86 $8.24
Closing market price $12.85 $11.41


Summary of Operations:
(In Thousands, except for per share amounts)
(Unaudited)
For the three months ended
March 31,
2016 2015
Total interest income$3,298 $2,934
Total interest expense 510 554
Net interest income 2,788 2,380
Provision (credit) for loan losses 130 (52)
Net interest income after provision (credit) for loan losses 2,658 2,432
Non-interest income 141 163
Non-interest expense 2,564 2,258
Income before taxes 235 337
Income tax expense 76 121
Net income$159 $216
Net income per common share - basic$0.03 $0.04
Net income per common share - diluted$0.03 $0.04
Weighted average number of shares - basic 5,743 5,637
Weighted average number of shares - diluted 5,812 5,637
Performance Ratios:
Return on average assets annualized 0.17% 0.25%
Return on average common equity annualized 0.83% 2.10%
Net interest margin 3.12% 3.00%
Efficiency ratio 87.54% 88.79%
Operating expenses / average assets annualized 2.73% 2.65%


For the three months ended
03/31/16 03/31/15
Average Balance Sheet
(In Thousands)
Average
Balance
Interest
Income/
Expense
YieldAverage
Balance
Interest
Income/
Expense
Yield
Interest-earning assets:
Loans Receivable$271,815 $2,838 4.18%$235,387 $2,508 4.26%
Securities held to maturity 76,932 431 2.24 78,461 404 2.06
Other interest-earning assets 8,430 29 1.38 3,176 22 2.77
Total interest-earning assets 357,177 3,298 3.69 317,024 2,934 3.70
Allowance for Loan Loss (3,622) (3,587)
Non-interest-earning assets 21,646 26,758
Total non-interest-earning assets 18,024 23,171
Total Assets$375,201 $340,195
Interest-bearing liabilities:
NOW & Money Market$48,453 $21 0.17%$45,667 $17 0.15%
Savings and club deposits 102,445 56 0.22 100,350 53 0.21
Certificates of deposit 84,437 237 1.12 92,658 295 1.27
Total interest-bearing deposits 235,335 314 0.53 238,675 365 0.61
Federal Home Loan Bank advances 29,754 196 2.63 31,783 189 2.38
Total interest-bearing liabilities 265,089 510 0.77 270,458 554 0.82
Non-interest-bearing deposit 29,621 25,638
Other non-interest-bearing liabilities 3,820 2,882
Total Liabilities 298,530 298,978
Equity 76,671 41,217
Total Liabilities and Equity$375,201 $340,195
Net Interest Spread 2,788 2.92% 2,380 2.88%
Net Interest Margin 3.12% 3.00%
Ratio of Interest Earning Assets to Interest Bearing Liabilities 134.74% 117.22%


Contact: Michael A. Shriner, President & CEO (908) 647-4000 mshriner@millingtonbank.com

Source:MSB Financial Corp.