MSB Financial Corp. Releases First Quarter Earnings

MILLINGTON, N.J., July 29, 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 six months ended June 30, 2016. 

The Company reported net income of $223,000 for the three months ended June 30, 2016, compared to a net loss of $33,000 for the three months ended June 30, 2015. Net income for the six months ended June 30, 2016 was $382,000 compared to net income of $183,000 for the six months ended June 30, 2015.

Net income per diluted common share was $0.04 for the three months ended June 30, 2016 compared to a net loss per diluted common share of $(0.01) for the three months ended June 30, 2015. Net income per diluted common share was $0.07 for the six months ended June 30, 2016 compared to $0.03 for the six months ended June 30, 2015. The results of operations for the three and six months ended June 30, 2015 reflect the results of operations of MSB Financial Corp., a federal corporation which was the predecessor company to the Company.

Total assets were $395.9 million at June 30, 2016, compared to $375.7 million at December 31, 2015, an increase of $20.2 million or 5.4%. During 2016, the Company experienced growth of $30.3 million or 11.5%, in loans receivable, net. Commercial and multi-family real estate loans continued to have the most growth during the first six months of 2016 as the Company continues to diversify its loan portfolio.

The following table summarizes loan balances and composition at June 30, 2016 and December 31, 2015:
  At     At  
June 30,   December 31,  
(In thousands) 2016     2015  
                       
Residential mortgage:                      
One-to-four family $ 157,777   52.4 %   $ 154,624   57.1 %
Home equity   35,033   11.6       35,002   12.9  
                       
Total residential mortgage   192,810   64.0       189,626   70.0  
                       
Commercial and multi-family real estate   80,014   26.6       59,642   22.0  
Construction   12,523   4.2       10,895   4.0  
Commercial and industrial   15,597   5.2       10,275   3.8  
                       
Total commercial loans   108,134   35.8       80,812   29.8  
                       
Consumer loans   463   0.2       493   0.2  
                       
Total loans receivable   301,407   100.0 %     270,931   100.0 %
Less:                      
Loans in process   4,331           4,600      
Deferred loan fees   639           417      
Allowance   3,869           3,602      
                       
Total loans receivable, net $ 292,568         $ 262,312      
                       

Total deposits at June 30, 2016 were $293.6 million compared with $262.6 million at December 31, 2015.  Overall, deposits increased by $31.0 million, or 11.8% with most of the growth occurring in interest demand deposits, which increased $19.4 million or 46.3%. Noninterest demand deposits also increased $6.6 million, or 23.5%. 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 June 30, 2016 and December 31, 2015:

    At     At  
(Dollars in thousands)   June 30, 2016     December 31, 2015  
                     
Noninterest demand   $ 34,787     11.85 %   $ 28,173     10.73 %
Interest demand     61,295     20.88       41,893     15.95  
Savings     103,383     35.21       102,196     38.92  
Money Market     7,845     2.67       4,928     1.88  
                     
Total demand deposits     207,310     70.61       177,190     67.48  
                     
Certificates of Deposit     86,307     29.39       85,408     32.52  
                     
Total Deposits   $ 293,617     100.00 %   $ 262,598     100.00 %
                             

"Our staff completed our core data processing conversion midway through the second quarter.  I am very pleased with the production levels we have maintained despite the resources required to complete the core conversion," stated Michael A. Shriner, President and Chief Executive Officer. 

Mr. Shriner added, "We are prepared to compete in the ever changing and challenging landscape known as community banking and we feel that our 2016 year to date results are beginning to reflect our readiness.  The addition of seasoned, commercial lenders are producing the growth and diversification we are seeking which has improved our overall results." 

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 successful conversion of our core system 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: 06/30/2016 06/30/2015
Total assets $ 395,908   $ 416,850  
     
Cash and cash equivalents   28,715     67,436  
     
Loans receivable, net   292,568     245,013  
     
Securities held to maturity   53,428     81,606  
     
Deposits   293,617     265,349  
     
Federal Home Loan Bank advances   22,675     30,000  
     
Total stockholders' equity   75,383     41,255  
     
Stock Information:    
Number of shares of common stock outstanding   5,953     5,010  
Book value per share of common stock $ 12.66   $ 8.23  
Closing market price $ 13.79   $ 11.63  
 

Summary of Operations: (In Thousands, except for per share amounts) (Unaudited)For the three months ended June 30, (Unaudited) For the six months ended June 30,
  2016       2015       2016     2015  
Total interest income $ 3,453   $ 3,033   $ 6,751   $ 5,967  
         
Total interest expense   522     548     1,032     1,102  
         
Net interest income   2,931     2,485     5,719     4,865  
         
Provision (credit) for loan losses   190     35     320     (17 )
         
Net interest income after provision (credit) for loan losses   2,741     2,450     5,399     4,882  
         
Non-interest income   512     169     653     332  
         
Non-interest expense   2,909     2,717     5,473     4,975  
         
Income (loss) before taxes   344     (98 )   579     239  
         
Income tax (benefit) expense   121     (65 )   197     56  
         
Net income (loss) $ 223   $ (33 ) $ 382   $ 183  
         
Net income (loss) per common share - basic $ 0.04   $ (0.01 ) $ 0.07   $ 0.03  
Net income (loss) per common share - diluted $ 0.04   $ (0.01 ) $ 0.07   $ 0.03  
         
Weighted average number of shares - basic   5,744     5,642     5,744     5,639  
Weighted average number of shares - diluted   5,822     5,642     5,818     5,654  
         
Performance Ratios:        
Return on average assets annualized   0.23 %   (0.04 )%   0.20 %   0.10 %
Return on average common equity annualized   1.15 %   (0.32 )%   0.99 %   0.89 %
Net interest margin   3.17 %   3.03 %   3.15 %   3.02 %
Efficiency ratio   84.49 %   102.37 %   85.89 %   95.73 %
Operating expenses / average assets annualized   3.00 %   3.05 %   2.87 %   2.85 %
         

  For the three months ended
  06/30/16 06/30/15
Average Balance Sheet (In Thousands) Average Balance Interest Income/Expense Yield Average Balance Interest Income/Expense Yield
Interest-earning assets:            
Loans Receivable $ 285,649   $ 3,082     4.32 % $ 244,361   $ 2,578     4.22 %
Securities held to maturity   62,585     331     2.12     80,483     435     2.16  
Other interest-earning assets   21,430     40     0.75     3,471     20     2.30  
Total interest-earning assets   369,664     3,453     3.74     328,315     3,033     3.70  
                     
Allowance for Loan Loss   (3,718 )       (3,571 )    
Non-interest-earning assets   21,833         32,110      
Total non-interest-earning assets   18,115         28,539      
                     
Total Assets $ 387,779       $ 356,854      
             
Interest-bearing liabilities:            
NOW & Money Market $ 60,006   $ 37     0.25 % $ 47,941   $ 20     0.17 %
Savings and club deposits   104,283     58     0.22     101,216     55     0.22  
Certificates of deposit   85,702     244     1.14     88,658     275     1.24  
Total interest-bearing deposits   249,991     339     0.54     237,815     350     0.59  
             
Federal Home Loan Bank advances   22,675     183     3.23     39,369     198     2.01  
Total interest-bearing liabilities   272,666     522     0.77     277,184     548     0.79  
             
Non-interest-bearing deposit   33,964         35,549      
Other non-interest-bearing liabilities   3,745         2,704      
Total Liabilities   310,375         315,437      
             
Equity   77,404         41,417      
Total Liabilities and Equity $ 387,779       $ 356,854      
             
Net Interest Spread     2,931     2.97 %     2,485     2.90 %
             
Net Interest Margin       3.17 %       3.03 %
             
Ratio of Interest Earning Assets to Interest Bearing Liabilities   135.57 %       118.45 %    
             

  For the six months ended
  06/30/16 06/30/15
Average Balance Sheet (In Thousands) Average Balance Interest Income/Expense Yield Average Balance Interest Income/Expense Yield
Interest-earning assets:            
Loans Receivable $ 278,732   $ 5,920     4.25 % $ 239,899   $ 5,086     4.24 %
Securities held to maturity   69,758     762     2.18     79,477     839     2.11  
Other interest-earning assets   14,930     69     0.92     3,324     42     2.53  
Total interest-earning assets   363,420     6,751     3.72     322,700     5,967     3.70  
                     
Allowance for Loan Loss   (3,670 )       (3,579 )    
Non-interest-earning assets   21,740         29,577      
Total non-interest-earning assets   18,070         25,998      
                     
Total Assets $ 381,490       $ 348,698      
             
Interest-bearing liabilities:            
NOW & Money Market $ 54,228   $ 58     0.21 % $ 46,810   $ 36     0.15 %
Savings and club deposits   103,364     114     0.22     100,785     109     0.22  
Certificates of deposit   85,070     481     1.13     90,647     570     1.26  
Total interest-bearing deposits   242,662     653     0.54     238,242     715     0.60  
             
Federal Home Loan Bank advances   26,214     379     2.89     35,597     387     2.17  
Total interest-bearing liabilities   268,876     1,032     0.77     273,839     1,102     0.80  
             
Non-interest-bearing deposit   31,793         30,748      
Other non-interest-bearing liabilities   3,783         2,793      
Total Liabilities   304,452         307,380      
             
Equity   77,038         41,318      
Total Liabilities and Equity $ 381,490       $ 348,698      
             
Net Interest Spread     5,719     2.95 %     4,865     2.89 %
             
Net Interest Margin       3.15 %       3.02 %
             
Ratio of Interest Earning Assets to Interest Bearing Liabilities   135.16 %       117.84 %    
             

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

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