MILLINGTON, N.J., Nov. 1, 2007 (PRIME NEWSWIRE) -- MSB Financial Corp. (Nasdaq:MSBF) (the "Company"), the holding company for Millington Savings Bank (the "Bank"), reported net income of $126,000 for the three months ended September 30, 2007. This compares to net income of $158,000 for the quarter ended June 30, 2007 and net income of $143,000 for the quarter ended September 30, 2006.
Net interest income for the quarter ended September 30, 2007 was $1.8 million, as compared to $1.9 million for the quarter ended June 30, 2007 and $1.7 million for the quarter ended September 30, 2006. The interest rate spread for the September 30, 2007 quarter was 2.17%, compared to 2.28% for the quarter ended June 30, 2007 and 2.44% for the September 2006 quarter. The average yield on interest earning assets for the September 2007 quarter was 6.13% compared to 6.15% for the quarter ended June 30, 3007 and 6.08% for the September 2006 quarter. The average cost of interest bearing liabilities for the September 30, 2007 quarter was 3.96% compared to 3.87% for the quarter ended June 30, 2007 and 3.64% for the September 2006 quarter.
Noninterest expense was $1.8 million for both the quarters ended September 30, and June 30, 2007, and $1.6 million for the quarter ended September 2006. The increase for the quarters ending September 30, and June 30, 2007 as compared to the quarter ended September 30, 2006 resulted primarily from increases in salaries and employee benefits cost, occupancy and equipment, and other expense; partially offset by a decrease in advertising expense. Between the September 2006 and September 2007 quarters there was a $124,000 increase in salaries and employee benefits, a $19,000 increase in occupancy and equipment, and a $91,000 increase in other expense, which was offset in part by a decrease of $52,000 in advertising expense. The changes in these expenses was partly due to the opening of the Martinsville branch office at the end of July 2006. The increase in salaries and employee benefits was also due to the cost of the Employee Stock Ownership Plan, implemented in January 2007 in connection with the Company's IPO. The increase in other expense was also caused by expenses attributable to Sarbanes-Oxley Section 404 compliance incurred in the quarter ended September 30, 2007.
Total assets were $286.8 million at September 30, 2007, compared to $284.6 million at June 30, 2007 due primarily to a $2.8 million increase in loans receivable, net. Deposits were $214.3 million at September 30, 2007, compared to $211.1 million at June 30, 2007. FHLB advances were $26.7 million at September 30, 2007, down from $27.9 million at June 30, 2007.
Shares of the Company's common stock trade on the NASDAQ Global Market under the symbol "MSBF." The Company is majority owned by its mutual holding company parent, MSB Financial, MHC.
MSB FINANCIAL CORP
(Dollars in Thousands)
SELECTED FINANCIAL AND OTHER DATA
Balance Sheet Data:
(Unaudited)
At September 30, At June 30,
--------------- ----------
2007 2007
--------------- ----------
Total assets $286,845 $284,578
Cash and cash equivalents 3,852 4,269
Loans receivable, net 236,298 233,498
Securities held to maturity 29,230 29,336
Deposits 214,276 211,118
Federal Home Loan Bank advances 26,687 27,889
Total stockholders' equity 43,517 43,346
Summary of Operations:
(Unaudited)
For the Three Months Ended,
September 30, June 30, September 30,
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2007 2007 2006
---- ---- ----
Total interest income $4,103 $4,114 $3,874
Total interest expense 2,280 2,227 2,195
--------- --------- ---------
Net interest income 1,823 1,887 1,679
Provision for loan losses 15 5 0
--------- --------- ---------
Net interest income after
provision for loan
losses 1,808 1,882 1,679
Noninterest income 159 143 153
Noninterest expense 1,783 1,784 1,611
--------- --------- ---------
Income before taxes 184 241 221
Income tax provision 58 83 78
--------- --------- ---------
Net income $126 $158 $143
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Net income per common share:
basic and diluted $0.02 $0.03 $0.05
Weighted average number of
common stock outstanding 5,428,104 5,423,904 3,091,344
Performance Ratios:
(Unaudited)
At or For the Three Months Ended,
September 30, June 30, September 30,
----------------------------------------
2007 2007 2006
---- ---- ----
Return on average assets
(ratio of net income to
average total assets) 0.18% 0.22% 0.21%
Return on average equity
(ratio of net income to
average equity) 1.16 1.45 2.89
Net interest rate spread 2.17 2.28 2.44
Net interest margin on
average interest-earning
assets 2.72 2.82 2.63
Average interest-earning
assets to average
interest-bearing liabilities 116.29 116.25 105.65
Operating expense ratio
(noninterest expenses to
average total assets) 2.51 2.52 2.37
Efficiency ratio (noninterest
expense divided by sum of
net interest income and
noninterest income) 89.96 87.88 87.94
Asset Quality Ratios:
Non-performing loans to total
loans 1.07 0.69 0.80
Non-performing assets to
total assets 0.92 0.59 0.66
Net charge-offs to average
loans outstanding 0.00 0.00 0.00
Allowance for loan losses to
non-performing loans 35.90 55.02 50.66
Allowance for loan losses to
total loans 0.39 0.38 0.40
Capital Ratios:
Equity to total assets at end
of period 15.17 15.23 7.12
Average equity to average
assets 15.34 15.33 7.28
Number of Offices 4 4 4