×

MSB Financial Corp. Releases First Quarter Earnings

MILLINGTON, N.J., July 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 and six months ended June 30, 2016.

The Company reported net income of $223,000 for the three months ended June 30, 2016, compared to a net loss of $33,000 for the three months ended June 30, 2015. Net income for the six months ended June 30, 2016 was $382,000 compared to net income of $183,000 for the six months ended June 30, 2015.

Net income per diluted common share was $0.04 for the three months ended June 30, 2016 compared to a net loss per diluted common share of $(0.01) for the three months ended June 30, 2015. Net income per diluted common share was $0.07 for the six months ended June 30, 2016 compared to $0.03 for the six months ended June 30, 2015. The results of operations for the three and six months ended June 30, 2015 reflect the results of operations of MSB Financial Corp., a federal corporation which was the predecessor company to the Company.

Total assets were $395.9 million at June 30, 2016, compared to $375.7 million at December 31, 2015, an increase of $20.2 million or 5.4%. During 2016, the Company experienced growth of $30.3 million or 11.5%, in loans receivable, net. Commercial and multi-family real estate loans continued to have the most growth during the first six months of 2016 as the Company continues to diversify its loan portfolio.

The following table summarizes loan balances and composition at June 30, 2016 and December 31, 2015:

At At
June 30, December 31,
(In thousands)2016 2015
Residential mortgage:
One-to-four family$157,777 52.4% $154,624 57.1%
Home equity 35,033 11.6 35,002 12.9
Total residential mortgage 192,810 64.0 189,626 70.0
Commercial and multi-family real estate 80,014 26.6 59,642 22.0
Construction 12,523 4.2 10,895 4.0
Commercial and industrial 15,597 5.2 10,275 3.8
Total commercial loans 108,134 35.8 80,812 29.8
Consumer loans 463 0.2 493 0.2
Total loans receivable 301,407 100.0% 270,931 100.0%
Less:
Loans in process 4,331 4,600
Deferred loan fees 639 417
Allowance 3,869 3,602
Total loans receivable, net$292,568 $262,312

Total deposits at June 30, 2016 were $293.6 million compared with $262.6 million at December 31, 2015. Overall, deposits increased by $31.0 million, or 11.8% with most of the growth occurring in interest demand deposits, which increased $19.4 million or 46.3%. Noninterest demand deposits also increased $6.6 million, or 23.5%. Most of the growth in these two categories continues to be attributable to developing stronger relationships with our commercial and small business customers.

The following table summarizes deposit balances and composition at June 30, 2016 and December 31, 2015:

At At
(Dollars in thousands) June 30, 2016 December 31, 2015
Noninterest demand $34,787 11.85% $28,173 10.73%
Interest demand 61,295 20.88 41,893 15.95
Savings 103,383 35.21 102,196 38.92
Money Market 7,845 2.67 4,928 1.88
Total demand deposits 207,310 70.61 177,190 67.48
Certificates of Deposit 86,307 29.39 85,408 32.52
Total Deposits $293,617 100.00% $262,598 100.00%

“Our staff completed our core data processing conversion midway through the second quarter. I am very pleased with the production levels we have maintained despite the resources required to complete the core conversion,” stated Michael A. Shriner, President and Chief Executive Officer.

Mr. Shriner added, “We are prepared to compete in the ever changing and challenging landscape known as community banking and we feel that our 2016 year to date results are beginning to reflect our readiness. The addition of seasoned, commercial lenders are producing the growth and diversification we are seeking which has improved our overall results."

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:06/30/201606/30/2015
Total assets$395,908 $416,850
Cash and cash equivalents 28,715 67,436
Loans receivable, net 292,568 245,013
Securities held to maturity 53,428 81,606
Deposits 293,617 265,349
Federal Home Loan Bank advances 22,675 30,000
Total stockholders' equity 75,383 41,255
Stock Information:
Number of shares of common stock outstanding 5,953 5,010
Book value per share of common stock$12.66 $8.23
Closing market price$13.79 $11.63


Summary of Operations:
(In Thousands, except for per share amounts)
(Unaudited)
For the three months ended
June 30,
(Unaudited)
For the six months ended
June 30,
2016

2015


2016
2015
Total interest income$3,453 $3,033 $6,751 $5,967
Total interest expense 522 548 1,032 1,102
Net interest income 2,931 2,485 5,719 4,865
Provision (credit) for loan losses 190 35 320 (17)
Net interest income after provision (credit) for loan losses 2,741 2,450 5,399 4,882
Non-interest income 512 169 653 332
Non-interest expense 2,909 2,717 5,473 4,975
Income (loss) before taxes 344 (98) 579 239
Income tax (benefit) expense 121 (65) 197 56
Net income (loss)$223 $(33)$382 $183
Net income (loss) per common share - basic$0.04 $(0.01)$0.07 $0.03
Net income (loss) per common share - diluted$0.04 $(0.01)$0.07 $0.03
Weighted average number of shares - basic 5,744 5,642 5,744 5,639
Weighted average number of shares - diluted 5,822 5,642 5,818 5,654
Performance Ratios:
Return on average assets annualized 0.23% (0.04)% 0.20% 0.10%
Return on average common equity annualized 1.15% (0.32)% 0.99% 0.89%
Net interest margin 3.17% 3.03% 3.15% 3.02%
Efficiency ratio 84.49% 102.37% 85.89% 95.73%
Operating expenses / average assets annualized 3.00% 3.05% 2.87% 2.85%


For the three months ended
06/30/1606/30/15
Average Balance Sheet
(In Thousands)
Average
Balance
Interest
Income/
Expense
YieldAverage
Balance
Interest
Income/
Expense
Yield
Interest-earning assets:
Loans Receivable$285,649 $3,082 4.32%$244,361 $2,578 4.22%
Securities held to maturity 62,585 331 2.12 80,483 435 2.16
Other interest-earning assets 21,430 40 0.75 3,471 20 2.30
Total interest-earning assets 369,664 3,453 3.74 328,315 3,033 3.70
Allowance for Loan Loss (3,718) (3,571)
Non-interest-earning assets 21,833 32,110
Total non-interest-earning assets 18,115 28,539
Total Assets$387,779 $356,854
Interest-bearing liabilities:
NOW & Money Market$60,006 $37 0.25%$47,941 $20 0.17%
Savings and club deposits 104,283 58 0.22 101,216 55 0.22
Certificates of deposit 85,702 244 1.14 88,658 275 1.24
Total interest-bearing deposits 249,991 339 0.54 237,815 350 0.59
Federal Home Loan Bank advances 22,675 183 3.23 39,369 198 2.01
Total interest-bearing liabilities 272,666 522 0.77 277,184 548 0.79
Non-interest-bearing deposit 33,964 35,549
Other non-interest-bearing liabilities 3,745 2,704
Total Liabilities 310,375 315,437
Equity 77,404 41,417
Total Liabilities and Equity$387,779 $356,854
Net Interest Spread 2,931 2.97% 2,485 2.90%
Net Interest Margin 3.17% 3.03%
Ratio of Interest Earning Assets to Interest Bearing Liabilities 135.57% 118.45%


For the six months ended
06/30/1606/30/15
Average Balance Sheet
(In Thousands)
Average
Balance
Interest
Income/
Expense
YieldAverage
Balance
Interest
Income/
Expense
Yield
Interest-earning assets:
Loans Receivable$278,732 $5,920 4.25%$239,899 $5,086 4.24%
Securities held to maturity 69,758 762 2.18 79,477 839 2.11
Other interest-earning assets 14,930 69 0.92 3,324 42 2.53
Total interest-earning assets 363,420 6,751 3.72 322,700 5,967 3.70
Allowance for Loan Loss (3,670) (3,579)
Non-interest-earning assets 21,740 29,577
Total non-interest-earning assets 18,070�� 25,998
Total Assets$381,490 $348,698
Interest-bearing liabilities:
NOW & Money Market$54,228 $58 0.21%$46,810 $36 0.15%
Savings and club deposits 103,364 114 0.22 100,785 109 0.22
Certificates of deposit 85,070 481 1.13 90,647 570 1.26
Total interest-bearing deposits 242,662 653 0.54 238,242 715 0.60
Federal Home Loan Bank advances 26,214 379 2.89 35,597 387 2.17
Total interest-bearing liabilities 268,876 1,032 0.77 273,839 1,102 0.80
Non-interest-bearing deposit 31,793 30,748
Other non-interest-bearing liabilities 3,783 2,793
Total Liabilities 304,452 307,380
Equity 77,038 41,318
Total Liabilities and Equity$381,490 $348,698
Net Interest Spread 5,719 2.95% 4,865 2.89%
Net Interest Margin 3.15% 3.02%
Ratio of Interest Earning Assets to Interest Bearing Liabilities 135.16% 117.84%


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

Source:MSB Financial Corp.