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MSB Financial Corp. Releases Third Quarter Earnings

MILLINGTON, N.J., Nov. 01, 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 nine months ended September 30, 2016.

The Company reported net income of $301,000 for the three months ended September 30, 2016, compared to $258,000 for the three months ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $683,000 compared to net income of $441,000 for the nine months ended September 30, 2015.

During the third quarter, the Company repurchased 242,379 shares (approximately 4.1% of the outstanding shares prior to the commencement of the repurchase plan) of common stock under its previously-announced stock repurchase plan for a total of $3.2 million or an average price per share of $13.27. All repurchased shares were cancelled which reduced shares issued and outstanding to 5,711,044. The Company may repurchase up to an additional 352,963 shares under the current repurchase plan.

Net income per diluted common share was $0.05 for the three months ended September 30, 2016 compared to $0.04 for the three months ended September 30, 2015. Net income per diluted common share was $0.12 for the nine months ended September 30, 2016 compared to $0.08 for the nine months ended September 30, 2015.

Total assets were $433.6 million at September 30, 2016, compared to $375.7 million at December 31, 2015, an increase of $57.9 million or 15.4%. During 2016, the Company experienced growth of $66.9 million or 25.5%, in loans receivable, net. The commercial and multi-family real estate loan segment had the most growth during the first nine months of 2016 as the Company continues to diversify its loan portfolio.

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

At At
September 30, December 31,
(In thousands)2016 2015
Residential mortgage:
One-to-four family$157,945 46.3% $154,624 57.1%
Home equity 34,246 10.0 35,002 12.9
Total residential mortgage 192,191 56.3 189,626 70.0
Commercial and multi-family real estate 103,083 30.2 59,642 22.0
Construction 16,160 4.7 10,895 4.0
Commercial and industrial 29,342 8.6 10,275 3.8
Total commercial loans 148,585 43.5 80,812 29.8
.
Consumer loans 458 0.2 493 0.2
Total loans receivable 341,234 100.0% 270,931 100.0%
Less:
Loans in process 7,228 4,600
Deferred loan fees 732 417
Allowance 4,044 3,602
Total loans receivable, net$329,230 $262,312

Total deposits at September 30, 2016 were $334.7 million compared with $262.6 million at December 31, 2015. Overall, deposits increased by $72.1 million, or 27.5% with most of the growth occurring in interest demand deposits, which increased $51.5 million or 122.9%. Noninterest demand deposits also increased $5.5 million, or 19.4%. 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 September 30, 2016 and December 31, 2015:

At At
(Dollars in thousands)September 30, 2016 December 31, 2015
Noninterest demand$ 33,653 10.05% $ 28,173 10.73%
Interest demand 93,360 27.90 41,893 15.95
Savings 104,700 31.28 102,196 38.92
Money Market 9,544 2.85 4,928 1.88
Total demand deposits 241,257 72.08 177,190 67.48
Certificates of Deposit 93,433 27.92 85,408 32.52
Total Deposits$ 334,690 100.00% $ 262,598 100.00%

“I am very pleased with the production levels that we have achieved so far this year. Our growth in assets is largely reflective of the commercial relationships that have been fostered over the course of the first nine months of 2016,” stated Michael A. Shriner, President and Chief Executive Officer.

Mr. Shriner added, “We are very focused on executing on our strategic plan and our year to date results reflect our progress. The addition of seasoned professionals to both our Board and our staff are creating opportunities for the organization which in turn is reflected in our financials.”

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 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:09/30/201609/30/2015
Total assets$433,630 $370,799
Cash and cash equivalents 31,647 16,290
Loans receivable, net 329,230 252,242
Securities held to maturity 44,676 80,118
Deposits 334,690 258,112
Federal Home Loan Bank advances 22,675 32,675
Total stockholders' equity 72,571 76,349
Stock Information:
Number of shares of common stock outstanding 5,711 5,954
Book value per share of common stock$12.71 $12.82
Closing market price$13.51 $11.60


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

2015


2016
2015
Total interest income$3,510 $3,116 $10,261 $9,083
Total interest expense 566 532 1,598 1,634
Net interest income 2,944 2,584 8,663 7,449
Provision for loan losses 180 40 500 23
Net interest income after provision for loan losses 2,764 2,544 8,163 7,426
Non-interest income 183 172 836 504
Non-interest expense 2,500 2,325 7,973 7,300
Income before taxes 447 391 1,026 630
Income tax expense 146 133 343 189
Net income$301 $258 $683 $441
Net income per common share - basic $0.05 $0.05 $0.12 $0.08
Net income per common share - diluted$0.05 $0.04 $0.12 $0.08
Weighted average number of shares - basic 5,588 5,721 5,692 5,667
Weighted average number of shares - diluted 5,670 5,765 5,768 5,693
Performance Ratios:
Return on average assets annualized 0.29% 0.27% 0.23% 0.16%
Return on average common equity annualized 1.62% 1.59% 1.20% 1.19%
Net interest margin 3.05% 2.90% 3.11% 2.95%
Efficiency ratio 79.95% 84.36% 83.94% 91.79%
Operating expenses / average assets annualized 2.45% 2.46% 2.72% 2.71%


For the three months ended
09/30/1609/30/15
Average Balance Sheet
(In Thousands)
Average
Balance
Interest
Income/
Expense
YieldAverage
Balance
Interest
Income/
Expense
Yield
Interest-earning assets:
Loans Receivable$305,405 $3,177 4.16%$250,835 $2,630 4.19%
Securities held to maturity 47,293 276 2.33 81,394 449 2.21
Other interest-earning assets 33,412 57 0.68 24,453 37 0.61
Total interest-earning assets 386,110 3,510 3.64 356,682 3,116 3.49
Allowance for Loan Loss (3,905) (3,583)
Non-interest-earning assets 26,133 25,165
Total non-interest-earning assets 22,228 21,582
Total Assets$ 408,338 $378,264
Interest-bearing liabilities:
NOW & Money Market$ 81,020 $60 0.30%$ 47,571 $ 20 0.17%
Savings and club deposits 103,166 57 0.22 100,688 56 0.22
Certificates of deposit 89,365 266 1.19 83,879 253 1.21
Total interest-bearing deposits 273,551 383 0.56 232,138 329 0.57
Federal Home Loan Bank advances 22,675 183 3.23 32,530 203 2.50
Total interest-bearing liabilities 296,226 566 0.76 264,668 532 0.80
Non-interest-bearing deposit 34,455 45,169
Other non-interest-bearing liabilities 3,430 3,437
Total Liabilities 334,111 313,274
Equity 74,227 64,990
Total Liabilities and Equity$408,338 $378,264
Net Interest Spread 2,944 2.88% 2,584 2.69%
Net Interest Margin 3.05% 2.90%
Ratio of Interest Earning Assets to Interest Bearing Liabilities 130.34% 134.77%


For the nine months ended
09/30/1609/30/15
Average Balance Sheet
(In Thousands)
Average
Balance
Interest
Income/
Expense
YieldAverage
Balance
Interest
Income/
Expense
Yield
Interest-earning assets:
Loans Receivable$287,688 $9,097 4.22%$243,584 $7,716 4.22%
Securities held to maturity 62,215 1,038 2.22 80,123 1,288 2.14
Other interest-earning assets 21,136 126 0.79 13,349 79 0.79
Total interest-earning assets 371,039 10,261 3.69 337,056 9,083 3.59
Allowance for Loan Loss (3,749) (3,580)
Non-interest-earning assets 23,215 25,102
Total non-interest-earning assets 19,466 21,522
Total Assets$ 390,505 $358,578
Interest-bearing liabilities:
NOW & Money Market$ 63,224 $118 0.25%$ 47,067 $ 56 0.16%
Savings and club deposits 103,298 171 0.22 100,753 165 0.22
Certificates of deposit 86,512 747 1.15 88,366 823 1.24
Total interest-bearing deposits 253,034 1,036 0.55 236,186 1,044 0.59
Federal Home Loan Bank advances 25,026 562 2.99 34,563 590 2.28
Total interest-bearing liabilities 278,060 1,598 0.77 270,749 1,634 0.80
Non-interest-bearing deposit 32,687 35,524
Other non-interest-bearing liabilities 3,664 3,011
Total Liabilities 314,411 309,284
Equity 76,094 49,294
Total Liabilities and Equity$390,505 $358,578
Net Interest Spread 8,663 2.92% 7,449 2.79%
Net Interest Margin 3.11% 2.95%
Ratio of Interest Earning Assets to Interest Bearing Liabilities 133.44% 124.49%


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

Source:MSB Financial Corp.