MILLINGTON, N.J., May 01, 2018 (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, 2018.
The Company reported net income of $1.0 million, or $0.19 per diluted common share, for the three months ended March 31, 2018, compared to net income of $549,000, or $0.10 per diluted common share, for the three months ended March 31, 2017. The increase in net income was primarily attributable to the combined effects of an increase of net interest income of $707,000 and a decrease of $105,000 in the provision for loan losses, offset by an increase in non-interest expenses of $270,000.
Highlights for the quarter:
- Return on average assets was 0.74% for the three months ended March 31, 2018 compared to 0.48% for the three months ended March 31, 2017 and return on average equity was 5.65% for the three months ended March 31, 2018 compared to 2.97% for the three months ended March 31, 2017.
- Net interest margin decreased 5 basis points to 3.24% for the quarter ended March 31, 2018 from 3.29% for the quarter ended March 31, 2017 due to a change deposit pricing.
- The efficiency ratio which is calculated by calculated by dividing non-interest expense by the sum of net interest income and non-interest income, improved to 66.29% for the quarter ended March 31, 2018 from 71.83% for the quarter ended March 31, 2017 driven by an increase in net interest income year over year.
- Non-performing assets were at 0.64% of total assets at March 31, 2018 compared with 0.73% at December 31, 2017. The allowance for loan losses as a percentage of total non-performing loans was 153.24% at March 31, 2018 compared to 130.99% at December 31, 2017.
- The Company’s balance sheet reflected total asset growth of $1.0 million at March 31, 2018, compared to December 31, 2017, combined with improving asset quality, and capital levels that exceeded regulatory standards for a well-capitalized institution.
- During the quarter, the Company repurchased 244,537 shares of common stock for a total of $4.4 million as part of it's stock repurchase plan. The average price paid per share was $17.92.
- The effective tax rate improved to 28.5% for the quarter ended March 31, 2018 compared to 36.9% for the quarter ended March 31, 2017 primarily due to the passage of the Tax Cuts and Jobs Act.
| Selected Financial Ratios | ||||||||||||||||||||||||||||||
| (unaudited; annualized where applicable) | ||||||||||||||||||||||||||||||
| As of or for the quarter ended: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | |||||||||||||||||||||||||
| Return on average assets | 0.74 | % | 0.20 | % | 0.90 | % | 0.59 | % | 0.48 | % | ||||||||||||||||||||
| Return on average equity | 5.65 | % | 1.48 | % | 6.31 | % | 3.91 | % | 2.97 | % | ||||||||||||||||||||
| Net interest margin | 3.24 | % | 3.30 | % | 3.37 | % | 3.35 | % | 3.29 | % | ||||||||||||||||||||
| Loans / deposit ratio | 110.85 | % | 105.46 | % | 116.04 | % | 109.31 | % | 112.26 | % | ||||||||||||||||||||
| Shareholders' equity / total assets | 12.37 | % | 12.97 | % | 13.39 | % | 14.79 | % | 15.37 | % | ||||||||||||||||||||
| Efficiency ratio | 66.29 | % | 62.26 | % | 64.21 | % | 68.02 | % | 71.83 | % | ||||||||||||||||||||
| Book value per common share | $ | 12.63 | $ | 12.66 | $ | 12.57 | $ | 13.07 | $ | 12.93 | ||||||||||||||||||||
Net Interest Income
Total interest income for the three months ended March 31, 2018 increased $1.1 million, or 26.5%, to $5.4 million compared to $4.3 million for the first quarter of 2017. Interest income increased in the quarter ended March 31, 2018 compared to the comparable period in 2017, primarily due to a $100.9 million increase in average loan balances. Total interest expense increased by $429,000, or 61.5%, to $1.1 million, for the three months ended March 31, 2018 compared to the same period in 2017 due to a mix of higher deposit rates and average deposit balances.
Net interest income for the three months ended March 31, 2018 increased $707,000, or 19.7% to $4.3 million compared to $3.6 million for the same three-month period in 2017. The change for the three months ended March 31, 2018 was primarily a result of an increase in average earning assets of $94.4 million. The annualized net interest spread was 3.07% and 3.12% for the three months ended March 31, 2018 and 2017, respectively. For the quarter ended March 31, 2018, the Company's annualized net interest margin decreased to 3.24% compared to 3.29% for the corresponding three-month period in 2017.
Other Income and Other Expense
Other income for the three months ended March 31, 2018 was $204,000, as compared to $187,000 for the same period in 2017. Other expense, which consists of salaries and employee benefits, occupancy expense, professional services and other non-interest expenses totaled $3.0 million for the quarter ended March 31, 2018 as compared to $2.7 million for the same period in 2017 with the $270,000 increase primarily attributable to salaries and employee benefits as a result of merit and infrastructure increases.
Taxes
For the three months ended March 31, 2018, the Company recorded a $407,000 tax provision compared to a provision of $321,000 for the three months ended March 31, 2017. The effective tax rate improved to 28.5% for the quarter ended March 31, 2018 compared to 36.9% for the quarter ended March 31, 2017. As a result of the passage of the Tax Cuts and Jobs Act on December 22, 2017, the federal tax rate for corporations was reduced to 21% during 2018. The increase in tax provision is attributable to an increase in pre-tax income offset by a decrease in the effective tax rate.
Earnings Summary for Period Ended March 31, 2018
The following table presents condensed consolidated statements of income data for the periods indicated.
| Condensed Consolidated Statements of Income (unaudited) | ||||||||||||||||||||||||||||||||||
| (dollars in thousands, except for per share data) | ||||||||||||||||||||||||||||||||||
| For the quarter ended: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | |||||||||||||||||||||||||||||
| Net interest income | $ | 4,302 | $ | 4,325 | $ | 4,190 | $ | 3,924 | $ | 3,595 | ||||||||||||||||||||||||
| Provision for loan losses | 90 | 200 | 490 | 300 | 195 | |||||||||||||||||||||||||||||
| Net interest income after provision for loan losses | 4,212 | 4,125 | 3,700 | 3,624 | 3,400 | |||||||||||||||||||||||||||||
| Other income | 204 | 211 | 205 | 219 | 187 | |||||||||||||||||||||||||||||
| Other expense | 2,987 | 2,824 | 2,822 | 2,818 | 2,717 | |||||||||||||||||||||||||||||
| Income before income taxes | 1,429 | 1,512 | 1,083 | 1,025 | 870 | |||||||||||||||||||||||||||||
| Income taxes (benefit) | 407 | 1,240 | (86 | ) | 293 | 321 | ||||||||||||||||||||||||||||
| Net income | $ | 1,022 | $ | 272 | $ | 1,169 | $ | 732 | $ | 549 | ||||||||||||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||||||||||||
| Basic | $ | 0.19 | $ | 0.05 | $ | 0.21 | $ | 0.13 | $ | 0.10 | ||||||||||||||||||||||||
| Diluted | $ | 0.19 | $ | 0.05 | $ | 0.21 | $ | 0.13 | $ | 0.10 | ||||||||||||||||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||||||||||||||||
| Basic | 5,470,349 | 5,577,314 | 5,563,938 | 5,539,796 | 5,519,849 | |||||||||||||||||||||||||||||
| Diluted | 5,507,443 | 5,588,598 | 5,574,535 | 5,679,012 | 5,613,387 | |||||||||||||||||||||||||||||
Statement of Condition Highlights at March 31, 2018
- Balance sheet growth, with total assets amounting to $564.0 million at March 31, 2018, an increase of $1.0 million, or 0.18%, compared to December 31, 2017.
- The Company’s total gross loans receivable were $486.4 million at March 31, 2018, an increase of $7.6 million, or 1.6%, from December 31, 2017.
- Securities held to maturity were $36.4 million at March 31, 2018, a decrease of $2.1 million, or 5.5%, compared to December 31, 2017.
- Deposits totaled $433.8 million at March 31, 2018, a decrease of $15.1 million, or 3.4%, compared to December 31, 2017.
- Borrowings totaled $58.1 million at March 31, 2018, an increase of $20.4 million, or 54.1%, compared to $37.7 million at December 31, 2017.
The following table presents condensed consolidated statements of condition data as of the dates indicated.
| Condensed Consolidated Statements of Condition (unaudited) | |||||||||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||||||||
| At: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||||||||||||||||
| Cash and due from banks | $ | 1,871 | $ | 2,030 | $ | 1,800 | $ | 1,839 | $ | 2,051 | |||||||||||||||||||||||
| Interest-earning demand deposits with banks | 15,484 | 20,279 | 6,971 | 7,195 | 9,198 | ||||||||||||||||||||||||||||
| Securities held to maturity | 36,375 | 38,482 | 40,752 | 42,441 | 42,716 | ||||||||||||||||||||||||||||
| Loans receivable, net of allowance | 480,916 | 473,405 | 461,285 | 426,370 | 398,447 | ||||||||||||||||||||||||||||
| Premises and equipment | 8,580 | 8,698 | 8,804 | 8,902 | 8,918 | ||||||||||||||||||||||||||||
| Federal home Loan Bank of New York stock, at cost | 3,049 | 2,131 | 3,512 | 2,263 | 2,626 | ||||||||||||||||||||||||||||
| Bank owned life insurance | 14,294 | 14,197 | 14,097 | 13,996 | 13,891 | ||||||||||||||||||||||||||||
| Accrued interest receivable | 1,642 | 1,607 | 1,548 | 1,402 | 1,277 | ||||||||||||||||||||||||||||
| Other assets | 1,816 | 2,211 | 2,988 | 2,690 | 2,784 | ||||||||||||||||||||||||||||
| Total assets | $ | 564,027 | $ | 563,040 | $ | 541,757 | $ | 507,098 | $ | 481,908 | |||||||||||||||||||||||
| Deposits | $ | 433,843 | $ | 448,913 | $ | 397,510 | $ | 390,063 | $ | 354,931 | |||||||||||||||||||||||
| Borrowings | 58,075 | 37,675 | 68,375 | 38,675 | 49,175 | ||||||||||||||||||||||||||||
| Other liabilities | 2,350 | 3,427 | 3,332 | 3,371 | 3,735 | ||||||||||||||||||||||||||||
| Shareholders' equity | 69,759 | 73,025 | 72,540 | 74,989 | 74,067 | ||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 564,027 | $ | 563,040 | $ | 541,757 | $ | 507,098 | $ | 481,908 | |||||||||||||||||||||||
Loans
At March 31, 2018, the Company’s net loan portfolio totaled $480.9 million, an increase of $7.5 million, or 1.6%, compared to $473.4 million at December 31, 2017. The allowance for loan losses amounted to $5.5 million and $5.4 million at March 31, 2018 and December 31, 2017, respectively.
At March 31, 2018, the loan portfolio primarily consisted of commercial real estate loans (38.4%) and residential mortgages (35.6%). Commercial and industrial loans represented 16.2% of the portfolio while construction loans accounted for 9.7% of the portfolio. Total loans receivable increased $11.1 million to $510.3 million at March 31, 2018 compared to $499.2 million at December 31, 2017. The increase primarily reflects a $9.2 million increase in commercial and industrial loans and a $5.7 million increase in construction loans. The increases were partially offset by a $3.2 million decrease in residential mortgages as the Company continues to focus on commercial lending.
The following table shows the composition of the Company's loan portfolio as of the dates indicated.
| Loans (unaudited) | |||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||
| At quarter ended: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||||||||
| Residential mortgage: | |||||||||||||||||||||||||
| One-to-four family | $ | 154,576 | $ | 157,876 | $ | 161,679 | $ | 164,448 | $ | 160,153 | |||||||||||||||
| Home equity | 27,051 | 26,803 | 27,409 | 29,021 | 30,493 | ||||||||||||||||||||
| Total residential mortgage | 181,627 | 184,679 | 189,088 | 193,469 | 190,646 | ||||||||||||||||||||
| Commercial and multi-family real estate | 195,951 | 196,681 | 184,791 | 153,984 | 141,193 | ||||||||||||||||||||
| Construction | 49,397 | 43,718 | 36,002 | 29,623 | 31,978 | ||||||||||||||||||||
| Commercial and industrial | 82,712 | 73,465 | 73,409 | 67,686 | 54,887 | ||||||||||||||||||||
| Total commercial loans | 328,060 | 313,864 | 294,202 | 251,293 | 228,058 | ||||||||||||||||||||
| Consumer loans | 595 | 618 | 659 | 434 | 394 | ||||||||||||||||||||
| Total loans receivable | 510,282 | 499,161 | 483,949 | 445,196 | 419,098 | ||||||||||||||||||||
| Less: | |||||||||||||||||||||||||
| Loans in process | 23,398 | 19,868 | 16,864 | 13,315 | 15,394 | ||||||||||||||||||||
| Deferred loan fees | 462 | 474 | 525 | 586 | 631 | ||||||||||||||||||||
| Allowance | 5,506 | 5,414 | 5,275 | 4,925 | 4,626 | ||||||||||||||||||||
| Total loans receivable, net | $ | 480,916 | $ | 473,405 | $ | 461,285 | $ | 426,370 | $ | 398,447 | |||||||||||||||
Asset Quality
At March 31, 2018, non-performing loans totaled $3.6 million, or 0.64% of total assets, compared with $4.1 million, or 0.73% of total assets, at December 31, 2017. Total delinquent loans (including nonperforming delinquent loans) were $6.4 million at March 31, 2018, an increase of $1.0 million from December 31, 2017 due to an increase in loans past due 30-59 days. The allowance for loan losses as a percentage of total loans was 1.13% at March 31, 2018 and December 31, 2017, respectively, while the allowance for loan losses as a percentage of non-performing loans increased to 153.24% at March 31, 2018 from 130.99% at December 31, 2017. Non-performing loans to total loans declined to 0.74% at March 31, 2018 from 0.86% at December 31, 2017.
The following table presents the components of non-performing assets and other asset quality data for the periods indicated.
| (dollars in thousands, unaudited) | ||||||||||||||||||||||||||||||
| As of or for the quarter ended: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | |||||||||||||||||||||||||
| Non-accrual loans | $ | 3,548 | $ | 3,975 | $ | 4,071 | $ | 6,916 | $ | 7,405 | ||||||||||||||||||||
| Loans 90 days or more past due and still accruing | 45 | 158 | 374 | — | 34 | |||||||||||||||||||||||||
| Total non-performing loans | $ | 3,593 | $ | 4,133 | $ | 4,445 | $ | 6,916 | $ | 7,439 | ||||||||||||||||||||
| Non-performing assets / total assets | 0.64 | % | 0.73 | % | 0.82 | % | 1.36 | % | 1.54 | % | ||||||||||||||||||||
| Non-performing loans / total loans | 0.74 | % | 0.86 | % | 0.95 | % | 1.60 | % | 1.84 | % | ||||||||||||||||||||
| Net charge-offs (recoveries) | $ | (2 | ) | $ | 61 | $ | 140 | $ | 1 | $ | 45 | |||||||||||||||||||
| Net charge-offs (recoveries) / average loans (annualized) | — | % | 0.05 | % | 0.13 | % | — | % | 0.05 | % | ||||||||||||||||||||
| Allowance for loan loss / total loans | 1.13 | % | 1.13 | % | 1.13 | % | 1.14 | % | 1.15 | % | ||||||||||||||||||||
| Allowance for loan losses / non-performing loans | 153.24 | % | 130.99 | % | 118.69 | % | 71.21 | % | 62.19 | % | ||||||||||||||||||||
| Total assets | $ | 564,027 | $ | 563,040 | $ | 541,757 | $ | 507,098 | $ | 481,908 | ||||||||||||||||||||
| Total net loans receivable, excluding ALLL | $ | 486,422 | $ | 478,819 | $ | 466,560 | $ | 431,295 | $ | 403,073 | ||||||||||||||||||||
| Average loans | $ | 483,255 | $ | 472,388 | $ | 446,383 | $ | 417,065 | $ | 382,386 | ||||||||||||||||||||
| Allowance for loan losses | $ | 5,506 | $ | 5,414 | $ | 5,275 | $ | 4,925 | $ | 4,626 | ||||||||||||||||||||
Deposits
Total deposits at March 31, 2018 were $433.8 million compared with $448.9 million at December 31, 2017. Overall, deposits decreased by $15.1 million, or 3.4%, with declines occurring across all product types except savings. The declines were a result of a few large depositors utilizing funds from their accounts. Money market and interest demand balances declined $7.1 million and $6.3 million, respectively. Money market balances declined to $20.3 million compared to $27.4 million at December 31, 2017 while interest demand balances declined to $148.9 million compared to $155.2 million at December 31, 2017. In addition, certificate of deposit (including IRA) balances declined $5.6 million to $118.7 million compared to $124.3 million from year-end. Savings balances increased $4.1 million to $109.2 million from $105.1 million at the prior year end.
The following table shows the composition of the Company's deposits as of the dates indicated.
| Deposits (unaudited) | |||||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||
| At quarter ended: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | ||||||||||||||||||||
| Demand: | |||||||||||||||||||||||||
| Non-interest bearing | $ | 36,751 | $ | 36,919 | $ | 40,504 | $ | 44,584 | $ | 38,970 | |||||||||||||||
| Interest-bearing | 148,888 | 155,199 | 107,419 | 95,196 | 89,159 | ||||||||||||||||||||
| Savings | 109,215 | 105,106 | 108,249 | 105,560 | 104,956 | ||||||||||||||||||||
| Money market | 20,251 | 27,350 | 16,517 | 15,842 | 13,950 | ||||||||||||||||||||
| Time | 118,738 | 124,339 | 124,821 | 128,881 | 107,896 | ||||||||||||||||||||
| Total deposits | $ | 433,843 | $ | 448,913 | $ | 397,510 | $ | 390,063 | $ | 354,931 | |||||||||||||||
Capital
At March 31, 2018, the Company's total shareholders' equity amounted to $69.8 million, or 12.37% of total assets, compared to $73.0 million at December 31, 2017. The Company’s book value per common share was $12.63 at March 31, 2018, compared to $12.66 at December 31, 2017. The decline in shareholders' equity was primarily due to the repurchase of 244,537 shares of common stock for a total of $4.4 million partially offset by net income of $1.0 million.
At March 31, 2018, the Bank’s common equity tier 1 ratio was 11.43%, tier 1 leverage ratio was 10.38%, tier 1 capital ratio was 11.43% and the total capital ratio was 12.53%. At December 31, 2017, the Bank’s common equity tier 1 ratio was 11.98%, tier 1 leverage ratio was 10.72%, tier 1 capital ratio was 11.98% and the total capital ratio was 13.10%. At March 31, 2018, the Bank was in compliance with all applicable regulatory capital requirements.
The following table sets forth the Company's consolidated average statements of condition for the periods presented.
| Condensed Consolidated Average Statements of Condition (unaudited) | ||||||||||||||||||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||
| For the quarter ended: | 3/31/2018 | 12/31/2017 | 9/30/2017 | 6/30/2017 | 3/31/2017 | |||||||||||||||||||||||||||||||||||||
| Loans | $ | 483,255 | $ | 472,388 | $ | 446,383 | $ | 417,065 | $ | 382,386 | ||||||||||||||||||||||||||||||||
| Securities held to maturity | 37,661 | 39,899 | 41,423 | 41,885 | 43,285 | |||||||||||||||||||||||||||||||||||||
| Allowance for loan losses | (5,461 | ) | (5,376 | ) | (4,922 | ) | (4,695 | ) | (4,524 | ) | ||||||||||||||||||||||||||||||||
| All other assets | 38,851 | 41,886 | 38,545 | 38,603 | 39,702 | |||||||||||||||||||||||||||||||||||||
| Total assets | $ | 554,306 | $ | 548,797 | $ | 521,429 | $ | 492,858 | $ | 460,849 | ||||||||||||||||||||||||||||||||
| Non-interest bearing deposits | $ | 36,211 | $ | 43,336 | $ | 44,970 | $ | 43,030 | $ | 37,821 | ||||||||||||||||||||||||||||||||
| Interest-bearing deposits | 390,522 | 375,098 | 350,589 | 333,902 | 316,324 | |||||||||||||||||||||||||||||||||||||
| Borrowings | 53,191 | 53,844 | 47,788 | 37,715 | 29,992 | |||||||||||||||||||||||||||||||||||||
| Other liabilities | 1,972 | 3,104 | 3,964 | 3,363 | 2,789 | |||||||||||||||||||||||||||||||||||||
| Shareholders' equity | 72,410 | 73,415 | 74,118 | 74,848 | 73,923 | |||||||||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 554,306 | $ | 548,797 | $ | 521,429 | $ | 492,858 | $ | 460,849 | ||||||||||||||||||||||||||||||||
CEO outlook:
“Growth during the first quarter was tempered due to an increase in competition for quality loans and deposits,” stated Michael Shriner, President and Chief Executive Officer. Mr. Shriner added, “Our Management Team and Board of Directors are very conscious of the current state of the commercial real estate market and remain committed to growing the Company in a safe and sound manner, which sometimes means taking a pass on a proposed project.”
Mr. Shriner further stated “the Company continues to strengthen other areas, including the Company’s overall risk profile, which was evident in the reduction of Non-Performing Loans/Total Loans from 1.84% to .74% over the past twelve months.”
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 impact of the passage of the Tax Cuts and Jobs Act and our continued ability to manage cybersecurity risks.
| Contact: | Michael A. Shriner, President & CEO | |
| (908) 647-4000 | ||
| mshriner@millingtonbank.com | ||
| MSB Financial Corp. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Financial Condition | ||||||||||||||||
| At March 31, 2018 | At December 31, 2017 | |||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||
| Cash and due from banks | $ | 1,871 | $ | 2,030 | ||||||||||||
| Interest-earning demand deposits with banks | 15,484 | 20,279 | ||||||||||||||
| Cash and Cash Equivalents | 17,355 | 22,309 | ||||||||||||||
| Securities held to maturity (fair value of $35,561 and $38,255, respectively) | 36,375 | 38,482 | ||||||||||||||
| Loans receivable, net of allowance for loan losses of $5,506 and $5,414, respectively | 480,916 | 473,405 | ||||||||||||||
| Premises and equipment | 8,580 | 8,698 | ||||||||||||||
| Federal Home Loan Bank of New York stock, at cost | 3,049 | 2,131 | ||||||||||||||
| Bank owned life insurance | 14,294 | 14,197 | ||||||||||||||
| Accrued interest receivable | 1,642 | 1,607 | ||||||||||||||
| Other assets | 1,816 | 2,211 | ||||||||||||||
| Total Assets | $ | 564,027 | $ | 563,040 | ||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||
| Liabilities | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Non-interest bearing | $ | 36,751 | $ | 36,919 | ||||||||||||
| Interest bearing | 397,092 | 411,994 | ||||||||||||||
| Total Deposits | 433,843 | 448,913 | ||||||||||||||
| Advances from Federal Home Loan Bank of New York | 58,075 | 37,675 | ||||||||||||||
| Advance payments by borrowers for taxes and insurance | 772 | 686 | ||||||||||||||
| Other liabilities | 1,578 | 2,741 | ||||||||||||||
| Total Liabilities | 494,268 | 490,015 | ||||||||||||||
| Stockholders' Equity | ||||||||||||||||
| Preferred stock, par value $0.01; 1,000,000 shares authorized; no shares issued or outstanding | — | — | ||||||||||||||
| Common stock, par value $0.01; 49,000,000 shares authorized; 5,524,095 and 5,768,632 issued; 5,524,095 and 5,768,632 outstanding, respectively | 55 | 58 | ||||||||||||||
| Paid-in capital | 46,756 | 51,068 | ||||||||||||||
| Retained earnings | 24,663 | 23,641 | ||||||||||||||
| Unearned common stock held by ESOP (187,666 and 190,390 shares, respectively) | (1,715 | ) | (1,742 | ) | ||||||||||||
| Total Stockholders' Equity | 69,759 | 73,025 | ||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 564,027 | $ | 563,040 | ||||||||||||
| MSB Financial Corp. and Subsidiaries | ||||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||||||
| 2018 | 2017 | |||||||||||||||||||||
| (in thousands except per share amounts) | ||||||||||||||||||||||
| Interest Income | ||||||||||||||||||||||
| Loans receivable, including fees | $ | 5,136 | $ | 4,000 | ||||||||||||||||||
| Securities held to maturity | 219 | 251 | ||||||||||||||||||||
| Other | 74 | 42 | ||||||||||||||||||||
| Total Interest Income | 5,429 | 4,293 | ||||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||
| Deposits | 846 | 502 | ||||||||||||||||||||
| Borrowings | 281 | 196 | ||||||||||||||||||||
| Total Interest Expense | 1,127 | 698 | ||||||||||||||||||||
| Net Interest Income | 4,302 | 3,595 | ||||||||||||||||||||
| Provision for Loan Losses | 90 | 195 | ||||||||||||||||||||
| Net Interest Income after Provision for Loan Losses | 4,212 | 3,400 | ||||||||||||||||||||
| Non-Interest Income | ||||||||||||||||||||||
| Fees and service charges | 83 | 71 | ||||||||||||||||||||
| Income from bank owned life insurance | 97 | 107 | ||||||||||||||||||||
| Other | 24 | 9 | ||||||||||||||||||||
| Total Non-Interest Income | 204 | 187 | ||||||||||||||||||||
| Non-Interest Expenses | ||||||||||||||||||||||
| Salaries and employee benefits | 1,805 | 1,506 | ||||||||||||||||||||
| Directors compensation | 122 | 176 | ||||||||||||||||||||
| Occupancy and equipment | 385 | 394 | ||||||||||||||||||||
| Service bureau fees | 67 | 48 | ||||||||||||||||||||
| Advertising | 4 | 3 | ||||||||||||||||||||
| FDIC assessment | 54 | 33 | ||||||||||||||||||||
| Professional services | 353 | 359 | ||||||||||||||||||||
| Other | 197 | 198 | ||||||||||||||||||||
| Total Non-Interest Expenses | 2,987 | 2,717 | ||||||||||||||||||||
| Income before Income Taxes | 1,429 | 870 | ||||||||||||||||||||
| Income Tax Expense | 407 | 321 | ||||||||||||||||||||
| Net Income | $ | 1,022 | $ | 549 | ||||||||||||||||||
| Earnings per share: | ||||||||||||||||||||||
| Basic | $ | 0.19 | $ | 0.10 | ||||||||||||||||||
| Diluted | $ | 0.19 | $ | 0.10 | ||||||||||||||||||
| MSB Financial Corp. and Subsidiaries | ||||||||||||||||||||||||||||||||
| Selected Quarterly Financial and Statistical Data | ||||||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||||||
| (in thousands, except for share and per share data) (annualized where applicable) | 3/31/2018 | 12/31/2017 | 3/31/2017 | |||||||||||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||||||||||||||
| Statements of Operations Data | ||||||||||||||||||||||||||||||||
| Interest income | $ | 5,429 | $ | 5,377 | $ | 4,293 | ||||||||||||||||||||||||||
| Interest expense | 1,127 | 1,052 | 698 | |||||||||||||||||||||||||||||
| Net interest income | 4,302 | 4,325 | 3,595 | |||||||||||||||||||||||||||||
| Provision for loan losses | 90 | 200 | 195 | |||||||||||||||||||||||||||||
| Net interest income after provision for loan losses | 4,212 | 4,125 | 3,400 | |||||||||||||||||||||||||||||
| Other income | 204 | 211 | 187 | |||||||||||||||||||||||||||||
| Other expense | 2,987 | 2,824 | 2,717 | |||||||||||||||||||||||||||||
| Income before income taxes | 1,429 | 1,512 | 870 | |||||||||||||||||||||||||||||
| Income tax expense (benefit) | 407 | 1,240 | 321 | |||||||||||||||||||||||||||||
| Net Income | $ | 1,022 | $ | 272 | $ | 549 | ||||||||||||||||||||||||||
| Earnings (per Common Share) | ||||||||||||||||||||||||||||||||
| Basic | $ | 0.19 | $ | 0.05 | $ | 0.10 | ||||||||||||||||||||||||||
| Diluted | $ | 0.19 | $ | 0.05 | $ | 0.10 | ||||||||||||||||||||||||||
| Statements of Condition Data (Period-End) | ||||||||||||||||||||||||||||||||
| Investment securities held to maturity (fair value of $35,561, $38,255, and $42,614) | $ | 36,375 | $ | 38,482 | $ | 42,716 | ||||||||||||||||||||||||||
| Loans receivable, net of allowance for loan losses | 480,916 | 473,405 | 398,447 | |||||||||||||||||||||||||||||
| Total assets | 564,027 | 563,040 | 481,908 | |||||||||||||||||||||||||||||
| Deposits | 433,843 | 448,913 | 354,931 | |||||||||||||||||||||||||||||
| Borrowings | 58,075 | 37,675 | 49,175 | |||||||||||||||||||||||||||||
| Shareholders' equity | 69,759 | 73,025 | 74,067 | |||||||||||||||||||||||||||||
| Common Shares Dividend Data | ||||||||||||||||||||||||||||||||
| Cash dividends | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||
| Weighted Average Common Shares Outstanding | ||||||||||||||||||||||||||||||||
| Basic | 5,470,349 | 5,577,314 | 5,519,849 | |||||||||||||||||||||||||||||
| Diluted | 5,507,443 | 5,588,598 | 5,613,387 | |||||||||||||||||||||||||||||
| Operating Ratios | ||||||||||||||||||||||||||||||||
| Return on average assets | 0.74 | % | 0.20 | % | 0.48 | % | ||||||||||||||||||||||||||
| Return on average equity | 5.65 | % | 1.48 | % | 2.97 | % | ||||||||||||||||||||||||||
| Average equity / average assets | 13.06 | % | 13.38 | % | 16.04 | % | ||||||||||||||||||||||||||
| Book value per common share (period-end) | $ | 12.63 | $ | 12.66 | $ | 12.93 | ||||||||||||||||||||||||||