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:	09/30/2016			09/30/2015
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
	09/30/16									09/30/15
Average Balance Sheet(In Thousands)	Average Balance			Interest Income/Expense			Yield			Average 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
	09/30/16									09/30/15
Average Balance Sheet(In Thousands)	Average Balance			Interest Income/Expense			Yield			Average 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
[email protected]

Source: MSB Financial Corp.

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