MILLINGTON, N.J., Jan. 29, 2008 (PRIME NEWSWIRE) -- MSB Financial Corp. (Nasdaq:MSBF) (the "Company"), the holding company for Millington Savings Bank (the "Bank"), reported net income of $234,000 for the three months ended December 31, 2007, an increase of 36.0% over net income of $172,000 for the quarter ended December 31, 2006. For the six months ended December 31, 2007, the Company reported net income of $360,000, an increase of 14.3% over net income for the six month period ended December 31, 2006, which totaled $315,000.
Net interest income for the three and six months ended December 31, 2007 increased to $1.9 million and $3.7 million, respectively, from $1.7 million and $3.4 million for the three and six months ended December 31, 2006. For the three months ended December 31, 2007, the yield on interest earning assets was 6.11%, an increase of 5 basis points when compared to the same period in 2006. For the six months ended December 31, 2007, the yield on interest earning assets was 6.12%, an increase of 5 basis points when compared to the same period in 2006. The net interest margin increased to 2.72% for the three months ended December 31, 2007, compared to 2.59% for the three months ended December 31, 2006, an increase of 13 basis points. The net interest margin increased to 2.72% for the six months ended December 31, 2007, compared to 2.61% for the six months ended December 31, 2006, an increase of 11 basis points. The higher levels of interest-earning assets, primarily a result of the Bank's continued loan growth, have generated higher levels of net interest income and net interest margins.
The loan loss provision for the three and six months ended December 31, 2007 was $40,000 and $55,000, respectively. For the three and six months ended December 31, 2006, no provisions were made. The Bank's management reviews the level of the allowance for loan losses on a quarterly basis and establishes the provision for loan losses based upon the volume and types of lending, delinquency levels, loss experience, the amount of impaired and classified loans, economic conditions and other factors related to the collectability of the loan portfolio. The provision was increased primarily due to growth in the loan portfolio, and changes in the trends in volume and contractual terms of the loans, economic conditions and concentrations of credit.
Non-interest income for the quarter ended December 31, 2007 totaled $165,000, an increase of $2,000 or 1.2% compared to the same period in 2006. For the six months ended December 31, 2007, non-interest income totaled $324,000, an increase of $8,000, or 2.5%, when compared to the same period in 2006.
Non-interest expense was $1.6 million for both the quarters ended December 31, 2007 and December 31, 2006. For the six months ended December 31, 2007, non-interest expense totaled $3.4 million, compared to $3.2 million for the six months ended December 31, 2006, an increase of 5.6%. Salaries and benefits expense increased due to normal salary increases and the adoption of an employee stock ownership plan, partially offset by a reduction in pension expense due to an amendment to the Bank's 401-K plan.
Other expense increased primarily due to costs associated with being a public company. These increases were offset in part by a reduction in advertising expense, which was higher in 2006 due to marketing the opening of the Bank's Martinsville branch office at the end of July 2006.
Total assets were $292.9 million at December 31, 2007, compared to $ 284.6 million at June 30, 2007 due primarily to an increase of $7.8 million in loans receivable, net. Deposits were $211.9 million at December 31, 2007, compared to $211.1 million at June 30, 2007. FHLB advances were $35.0 million at December 31, 2007, up $7.1 million 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 parent, MSB Financial, MHC.
MSB FINANCIAL CORP
(Dollars in Thousands, except for per share amount)
SELECTED FINANCIAL AND OTHER DATA
Balance Sheet Data: (Unaudited)
At At
December 31 June 30,
----------- ----------
2007 2007
-------- --------
Total assets $292,900 $284,578
Cash and cash equivalents 4,261 4,269
Loans receivable, net 241,250 233,498
Securities held to maturity 29,110 29,336
Deposits 211,854 211,118
Federal Home Loan Bank advances 34,982 27,889
Total stockholders' equity 43,717 43,346
Summary of Operations:
(Unaudited) (Unaudited)
For the For the
Six Months Ended Three Months Ended
December 31, December 31,
--------------------- ---------------------
2007 2006 2007 2006
--------- --------- --------- ---------
Total interest income $ 8,302 $ 7,915 $ 4,199 $ 4,041
Total interest expense 4,608 4,505 2,328 2,310
--------- --------- --------- ---------
Net interest income 3,694 3,410 1,871 1,731
Provision for loan
losses 55 0 40 0
--------- --------- --------- ---------
Net interest income
after provision for
loan losses 3,639 3,410 1,831 1,731
Noninterest income 324 316 165 163
Noninterest expense 3,418 3,236 1,635 1,625
--------- --------- --------- ---------
Income before taxes 545 490 361 269
Income tax provision 185 175 127 97
--------- --------- --------- ---------
Net income $ 360 $ 315 $ 234 $ 172
========= ========= ========= =========
Net income per common
share: basic and
diluted $ 0.07 $ 0.10 $ 0.04 $ 0.06
Weighted average number
of shares of common
stock outstanding 5,430,219 3,091,344 5,432,335 3,091,344
Performance Ratios:
(Unaudited) (Unaudited)
For the For the
Six Months Ended, Three Months Ended,
December 31, December 31,
---------------- -----------------
2007 2006 2007 2006
------ ------ ------ ------
Return on average assets
(ratio of net income to
average total assets) 0.25% 0.23% 0.32% 0.24%
Return on average equity
(ratio of net income to
average equity) 1.65 3.18 2.14 3.46
Net interest rate spread 2.17 2.42 2.18 2.40
Net interest margin on
average interest-earning
assets 2.72 2.61 2.72 2.59
Average interest-earning
assets to average interest-
bearing liabilities 116.19 105.59 116.10 105.53
Operating expense ratio
(noninterest expenses to
average total assets) 2.37 2.33 2.24 2.29
Efficiency ratio (noninterest
expense divided by sum of
net interest income and
noninterest income) 85.07 86.85 80.30 85.80
(Unaudited)
At or For the
Six Months Ended,
December 31,
----------------
2007 2006
------- -------
Asset Quality Ratios:
Non-performing loans to total loans 1.11% 0.65%
Non-performing assets to total assets 0.94 0.47
Net charge-offs to average loans outstanding 0.00 0.00
Allowance for loan losses to non-performing loans 35.75 61.25
Allowance for loan losses to total loans 0.40 0.40
Capital Ratios:
Equity to total assets at end of period 14.93% 6.18%
Average equity to average assets 15.18 7.13
Number of Offices 4 4