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) 647-4000mshriner@millingtonbank.com

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