EX-99 2 ex-99.txt PRESS RELEASE MSB Financial Corp. Announces Results for its Fiscal Year Ended June 30, 2007 MILLINGTON, N.J., August 7, 2007 -- MSB Financial Corp. (Nasdaq: MSBF) (the "Company"), the holding company for Millington Savings Bank (the "Bank"), reported net income of $1.3 million for its fiscal year ended June 30, 2007 as compared to net income of $1.4 million for fiscal 2006. Net interest income for fiscal 2007 was down approximately 2% as compared to fiscal 2006 while noninterest expense was up approximately 17%. The interest rate spread for fiscal 2007 was 2.40%, compared to 2.97% for fiscal 2006 mainly as a result of the continuing flat or inverted yield curve environment. The return on average equity for the fiscal 2007 was 4.27%, compared to 7.31% for fiscal 2006. The decrease in return on average equity for 2007 reflects the completion of the Company's initial public offering in January 2007 and the net proceeds of that offering of approximately $24.5 million. Noninterest expense for fiscal 2007 includes certain expenses not present during fiscal 2006, namely six months of expenses from the Employee Stock Ownership Plan, implemented in January 2007 in connection with the Company's IPO, and a full year of expenses for the Martinsville branch office (opened in July 2006), which affected salaries and employee benefits as well as occupancy and equipment costs. Total assets were $284.6 million at June 30, 2007, compared to $270.2 million at June 30, 2006 due primarily to a $15.2 million increase in loans receivable, net. Deposits were $211.1 million at June 30, 2007, compared to $194.8 million at June 30, 2006. Liquidity provided by the stock offering in January 2007 was responsible for a decrease in borrowed funds; FHLB advances were $27.9 million at June 30, 2007, down from $54.2 million at June 30, 2006. 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. CONTACT: MSB Financial Corp. Michael Shriner, Executive Vice President 908-647-4000 mshriner@millingtonsb.com MSB FINANCIAL CORP (Dollars in Thousands) SELECTED FINANCIAL AND OTHER DATA
(Unaudited) At June 30, ------------------------------------------------ 2007 2006 ------------------- -------------------- Balance Sheet Data: Total assets $284,578 $270,184 Cash and cash equivalents 4,269 5,881 Loans receivable, net 233,498 218,321 Securities held to maturity 29,336 27,707 Deposits 211,118 194,755 Federal Home Loan Bank advances 27,889 54,181 Total stockholder's equity 43,346 19,491
(Unaudited) For the Year Ended June 30, ------------------------------------------------ 2007 2006 ------------------- -------------------- Summary of Operations: Total interest income $16,131 $14,117 Total interest expense 8,813 6,661 ------------------- -------------------- Net interest income 7,318 7,456 Provision for loan losses 5 60 ------------------- -------------------- Net interest income after provision for loan losses 7,313 7,396 Noninterest income 1,579 603 Noninterest expense 6,740 5,763 ------------------- -------------------- Income before taxes 2,152 2,236 Income tax provision 820 834 ------------------- -------------------- Net income $1,332 $1,402 =================== ==================== Net income per common share: basic $0.32 $0.45 diluted $0.32 $0.45
(Unaudited) At or For the Year Ended June 30, ------------------------------------------------- 2007 2006 -------------------- -------------------- Performance Ratios: Return on average assets (ratio of net income to average total assets) 0.47% 0.55% Return on average equity (ratio of net income to average equity) 4.27 7.31 Net interest rate spread 2.40 2.97 Net interest margin on average interest-earning assets 2.77 3.12 Average interest-earning assets to average interest-bearing liabilities 111.07 105.53 Operating expense ratio (noninterest expenses to average total assets) 2.40 2.25 Efficiency ratio (noninterest expense divided by sum of net interest income and noninterest income) 75.76 71.51 Asset Quality Ratios: Non-performing loans to total loans 0.69 0.32 Non-performing assets to total assets 0.59 0.27 Net charge-offs to average laons outstanding 0.00 0.01 Allowance for loan losses to non-performing loans 55.02 127.39 Allowance for loan losses to total loans 0.38 0.41 Capital Ratios: Equity to total assets at end of period 15.23 7.21 Average equity to average assets 11.11 7.50 Number of Offices (1) 4 3
(1) All of the Bank's offices are full service locations. The Martinsville branch office opened subsequent to June 30, 2006 and is not included in the year ended June 30, 2006 information above.