EX-99 2 ex99-1.htm PRESS RELEASE

MSB Financial Corp. Announces Quarterly Results

 

MILLINGTON, N.J., May 4, 2009 – MSB Financial Corp. (Nasdaq: MSBF) (the “Company”), the holding company for Millington Savings Bank (the “Bank”), reported net income of $116,000 for the three months ended March 31, 2009, compared to $170,000 for the quarter ended March 31, 2008, representing a decrease of $54,000 or 31.8%. For the nine months ended March 31, 2009, the Company reported net income of $420,000, compared to net income of $530,000 for the nine month period ended March 31, 2008, a decrease of $110,000 or 20.8%. Both reporting periods reflect increases in the provision for loan losses and FDIC insurance expense. Compensation expense also increased for both the three and nine months ended March 31, 2009, compared to the same periods in 2008 primarily as a result of the implementation of a stock option plan in May 2008. In addition, the nine month period ended March 31, 2009 reflects expenses associated with the opening of the Bank’s new Bernardsville location in late summer 2008 and an unrealized loss of $66,000 on the Bank’s trading securities portfolio.

 

Net interest income for the three and nine months ended March 31, 2009 increased to $2.2 million and $6.5 million, respectively, from $1.9 million and $5.6 million for the three and nine months ended March 31, 2008. For the three months ended March 31, 2009, the yield on interest earning assets was 5.37%, a decrease of 62 basis points when compared to the same period in 2008. For the nine months ended March 31, 2009, the yield on interest earning assets was 5.54%, a decrease of 54 basis points when compared to the same period in 2008. Correspondingly, the rate on interest-bearing liabilities for the three months ended March 31, 2009 was 2.80%, a decrease of 94 basis points when compared to the same period in 2008. For the nine months ended March 31, 2009, the rate on interest-bearing liabilities was 3.03%, a decrease of 85 basis points when compared to the same period in 2008. The net interest margin increased to 2.85% for the three months ended March 31, 2009, compared to 2.75% for the three months ended March 31, 2008, an increase of 10 basis points. The net interest margin increased to 2.88% for the nine months ended March 31, 2009, compared to 2.73% for the nine months ended March 31, 2008, an increase of 15 basis points. The reduction in interest-bearing liability rates, partially offset by a lesser reduction in interest-earning assets yields, resulted in the higher levels of net interest income and net interest margin.

 

The loan loss provision for the three and nine months ended March 31, 2009 was $91,000 and $223,000 respectively, compared to $40,000 and $95,000 for the same periods ended March 31, 2008. 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, increased non-performing loans and local economic conditions.

 

Non-interest income for the quarter ended March 31, 2009 totaled $104,000, a decrease of $15,000 or 12.6% compared to the same period in 2008. For the nine months ended

 

March 31, 2009, non-interest income totaled $378,000, a decrease of $65,000, or 14.7%, when compared to the same period in 2008. The decrease for the three month period ended March 31, 2009, was primarily attributable to a decrease in fees and service charges, whereas, the decrease for the nine months ended March 31, 2009 was primarily attributable to unrealized losses in the trading security portfolio.

 

Non-interest expense was $2.0 million for the quarter ended March 31, 2009, an increase of 16.7% compared to $1.7 million for the three months ended March 31, 2008. For the nine months ended March 31, 2009, non-interest expense totaled $6.0 million, compared to $5.2 million for the nine months ended March 31, 2008, an increase of 15.5%. Salaries and benefits expense increased due to normal salary increases and the implementation of our stock option plan in May 2008. Occupancy, equipment, and advertising expense increased as the result of the Bank opening its Bernardsville branch location. Other expense increased primarily due to an increase in FDIC expense and other expenses associated with the new Bernardsville branch location.

 

Total assets increased to $349.9 million at March 31, 2009, from $308.1 million at June 30, 2008 due primarily to an increase of $23.3 million in cash and cash equivalents and an increase of $13.8 million in loans receivable, net. Deposits were $269.4 million at March 31, 2009, compared to $225.4 million at June 30, 2008. FHLB advances were $36.4 million at March 31, 2009, as compared to $37.1 million at June 30, 2008. Stockholders’ equity was $41.7 million at March 31, 2009, as compared to $43.4 million at June 30, 2008. The decrease in stockholders’ equity is primarily due to share repurchases under the Company’s stock repurchase plan.

 

Shares of the Company’s common stock trade on the NASDQ Global Market under the symbol “MSBF.” The Company is majority owned by its mutual holding company parent, MSB Financial, MHC.

 

Forward Looking Statements

 

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.

 

CONTACT: MSB Financial Corp.

 

Michael Shriner, Executive Vice President

 

908-647-4000

 

mshriner@millingtonsb.com

 

MSB FINANCIAL CORP

(Dollars in Thousands, except for per share amount)

 

SELECTED FINANCIAL AND OTHER DATA

 

Balance Sheet Data:

 

 

 

(Unaudited)

 

 

 

 

 

At March 31,

 

 

 

At June 30,

 

 

 

 

 

2009

 

 

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

349,943

 

 

 

$

308,058

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

28,018

 

 

 

 

4,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable, net

 

 

268,118

 

 

 

 

254,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities held to maturity

 

 

32,865

 

 

 

 

28,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

269,385

 

 

 

 

225,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Federal Home Loan Bank advances

 

 

36,433

 

 

 

 

37,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

41,698

 

 

 

 

43,396

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Summary of Operations:

 

 

 

(Unaudited)

 

 

 

(Unaudited)

 

 

 

 

 

For the Nine

 

 

 

For the Three

 

 

 

 

 

Months Ended

 

 

 

Months Ended

 

 

 

 

 

March 31,

 

 

 

March 31,

 

 

 

March 31,

 

 

 

March 31,

 

 

 

 

 

2009

 

 

 

2008

 

 

 

2009

 

 

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$

12,478

 

 

 

$

12,478

 

 

 

$

4,140

 

 

 

$

4,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest expense

 

 

6,003

 

 

 

 

6,866

 

 

 

 

1,940

 

 

 

 

2,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

6,475

 

 

 

 

5,612

 

 

 

 

2,200

 

 

 

 

1,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

223

 

 

 

 

95

 

 

 

 

91

 

 

 

 

40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income after provision

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

for loan losses

 

 

6,252

 

 

 

 

5,517

 

 

 

 

2,109

 

 

 

 

1,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

378

 

 

 

 

443

 

 

 

 

104

 

 

 

 

119

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense

 

 

5,952

 

 

 

 

5,154

 

 

 

 

2,026

 

 

 

 

1,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before taxes

 

 

678

 

 

 

 

806

 

 

 

 

187

 

 

 

 

261

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision

 

 

258

 

 

 

 

276

 

 

 

 

71

 

 

 

 

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

420

 

 

 

$

530

 

 

 

$

116

 

 

 

$

170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

basic and diluted

 

$

0.09

 

 

 

$

0.10

 

 

 

$

0.02

 

 

 

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares of common stock

 

 

4,973,740

 

 

 

 

5,431,905

 

 

 

 

4,880,155

 

 

 

 

5,435,314

 

 

 

Outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performance Ratios:

 

 

 

(Unaudited)

 

 

 

(Unaudited)

 

 

 

 

 

For the Nine

 

 

 

For the Three

 

 

 

 

 

Months Ended

 

 

 

Months Ended

 

 

 

 

 

March 31,

 

 

 

March 31,

 

 

 

March 31,

 

 

 

March 31,

 

 

 

 

 

2009

 

 

 

2008

 

 

 

2009

 

 

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (ratio of net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to average total assets)

 

0.17

%

 

 

0.24

%

 

 

0.14

%

 

 

0.23

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity (ratio of net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

to average equity)

 

1.32

 

 

 

1.61

 

 

 

1.11

 

 

 

1.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest rate spread

 

2.51

 

 

 

2.20

 

 

 

2.57

 

 

 

2.25

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin on average interest-earning

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

assets

 

2.88

 

 

 

2.73

 

 

 

2.85

 

 

 

2.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest-earning assets to average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

interest-bearing liabilities

 

113.58

 

 

 

115.99

 

 

 

111.31

 

 

 

115.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expense ratio (noninterest expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To average total assets)

 

2.48

 

 

 

2.37

 

 

 

2.45

 

 

 

2.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (noninterest expense divided by

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

sum of net interest income and noninterest income)

 

86.85

 

 

 

85.12

 

 

 

87.93

 

 

 

85.22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Unaudited)

 

 

 

At or For the

 

 

 

Nine Months Ended,

 

 

 

March 31,

 

 

 

March 31,

 

 

 

2009

 

 

 

2008

 

 

Asset Quality Ratios:

 

 

 

 

 

 

 

Non—performing loans to total loans

3.02

%

 

 

1.51

%

 

 

 

 

 

 

 

 

 

Non—performing assets to total assets

2.38

 

 

 

1.27

 

 

 

 

 

 

 

 

 

 

Net charge—offs to average loans outstanding

0.00

 

 

 

0.00

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to non—performing loans

15.01

 

 

 

26.70

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans

0.45

 

 

 

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to total assets at end of period

11.92

%

 

 

14.42

 

 

 

 

 

 

 

 

 

 

Average equity to average assets

13.20

 

 

 

15.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Offices

5

 

 

 

4