October 31, 2017
|
Date of Report
|
(Date of earliest event reported)
|
MSB Financial Corp.
|
(Exact name of Registrant as specified in its Charter)
|
Maryland
|
001-37506
|
34-1981437
|
||
(State or other jurisdiction
of incorporation)
|
(SEC Commission
File No.)
|
(IRS Employer
Identification Number)
|
1902 Long Hill Road, Millington, New Jersey
|
07946-0417
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant's telephone number, including area code:
|
(908) 647-4000
|
Not Applicable
|
(Former name or former address, if changed since last Report)
|
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
☐
|
Written communications pursuant to Rule 425 under the Securities Act
|
☐
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
|
Item 2.02
|
Results of Operations and Financial Condition
|
Item 9.01
|
Financial Statements and Exhibits
|
Exhibit
Number
|
Description
|
|
99
|
MSB FINANCIAL CORP.
|
|||
By:
|
/s/ Michael A. Shriner |
||
Date: October 31, 2017
|
Michael A. Shriner
President and Chief Executive Officer
|
At
|
At
|
||||||||||
September 30,
|
December 31,
|
||||||||||
(In thousands)
|
2017
|
2016
|
|||||||||
Residential mortgage:
|
|||||||||||
One-to-four family
|
$
|
161,679
|
33.4
|
%
|
$
|
160,534
|
42.3
|
%
|
|||
Home equity
|
|
27,409
|
|
5.7
|
|
32,262
|
|
8.5
|
|||
Total residential mortgage
|
|
189,088
|
|
39.1
|
|
192,796
|
|
50.8
|
|||
Commercial and multi-family real estate
|
184,791
|
38.2
|
124,656
|
32.8
|
|||||||
Construction
|
36,002
|
7.4
|
16,554
|
4.4
|
|||||||
Commercial and industrial
|
|
73,409
|
|
15.2
|
|
45,246
|
|
11.9
|
|||
Total commercial loans
|
|
294,202
|
|
60.8
|
|
186,456
|
|
49.1
|
|||
Consumer loans
|
|
659
|
|
0.1
|
|
446
|
|
0.1
|
|||
Total loans receivable
|
483,949
|
100.0
|
%
|
379,698
|
100.0
|
%
|
|||||
Less:
|
|||||||||||
Loans in process
|
16,864
|
6,557
|
|||||||||
Deferred loan fees
|
525
|
658
|
|||||||||
Allowance
|
5,275
|
4,476
|
|||||||||
Total loans receivable, net
|
$
|
461,285
|
$
|
368,007
|
|||||||
At
|
At
|
||||||||
(Dollars in thousands)
|
September 30, 2017
|
December 31, 2016
|
|||||||
Noninterest demand
|
$ 40,504
|
10.19
|
%
|
$ 44,365
|
12.25
|
%
|
|||
Interest demand
|
107,419
|
27.02
|
99,879
|
27.57
|
|||||
Savings
|
108,249
|
27.23
|
103,163
|
28.47
|
|||||
Money Market
|
16,517
|
4.16
|
11,265
|
3.11
|
|||||
Total demand deposits
|
272,689
|
68.60
|
258,672
|
71.40
|
|||||
Certificates of Deposit
|
124,821
|
31.40
|
103,627
|
28.60
|
|||||
Total Deposits
|
$ 397,510
|
100.00
|
%
|
$ 362,299
|
100.00
|
%
|
Contact:
|
Michael A. Shriner, President & CEO
|
(908) 647-4000
|
|
mshriner@millingtonbank.com
|
MSB FINANCIAL CORP
|
||||||||
(In Thousands, except for per share amount)
|
(Unaudited)
|
|||||||
Statement of Financial Condition Data:
|
09/30/2017
|
12/31/2016
|
||||||
Total assets
|
$
|
541,757
|
$
|
461,646
|
||||
|
||||||||
Cash and cash equivalents
|
8,771
|
21,382
|
||||||
|
||||||||
Loans receivable, net
|
461,285
|
368,007
|
||||||
|
||||||||
Securities held to maturity
|
40,752
|
44,104
|
||||||
|
||||||||
Deposits
|
397,510
|
362,299
|
||||||
|
||||||||
Federal Home Loan Bank advances
|
68,375
|
22,675
|
||||||
|
||||||||
Total stockholders' equity
|
72,540
|
73,185
|
||||||
Stock Information:
|
||||||||
Number of shares of common stock outstanding
|
5,769
|
5,714
|
||||||
Book value per share of common stock
|
$
|
12.57
|
$
|
12.81
|
||||
Closing market price
|
$
|
17.85
|
$
|
14.70
|
||||
(Unaudited)
For the three months ended
September 30, |
(Unaudited)
For the nine months ended
September 30, |
|||||||||||||||
Summary of Operations:
(In Thousands, except for per share amounts)
|
2017
|
2016
|
2017 |
2016 |
||||||||||||
Total interest income
|
$
|
5,083
|
$
|
3,510
|
$
|
14,103
|
$
|
10,261
|
||||||||
|
||||||||||||||||
Total interest expense
|
893
|
566
|
2,394
|
1,598
|
||||||||||||
|
||||||||||||||||
Net interest income
|
4,190
|
2,944
|
11,709
|
8,663
|
||||||||||||
|
||||||||||||||||
Provision for loan losses
|
490
|
180
|
985
|
500
|
||||||||||||
|
||||||||||||||||
Net interest income after provision for loan losses
|
3,700
|
2,764
|
10,724
|
8,163
|
||||||||||||
|
||||||||||||||||
Non-interest income
|
205
|
183
|
611
|
836
|
||||||||||||
|
||||||||||||||||
Non-interest expense
|
2,822
|
2,500
|
8,357
|
7,973
|
||||||||||||
|
||||||||||||||||
Income before taxes
|
1,083
|
447
|
2,978
|
1,026
|
||||||||||||
|
||||||||||||||||
Income tax (benefit) expense
|
(86
|
)
|
146
|
528
|
343
|
|||||||||||
|
||||||||||||||||
Net income
|
$
|
1,169
|
$
|
301
|
$
|
2,450
|
$
|
683
|
||||||||
|
||||||||||||||||
Net income per common share - basic
|
$
|
0.21
|
$
|
0.05
|
$
|
0.44
|
$
|
0.12
|
||||||||
Net income per common share - diluted
|
$
|
0.21
|
$
|
0.05
|
$
|
0.44
|
$
|
0.12
|
||||||||
|
||||||||||||||||
Weighted average number of shares - basic
|
5,564
|
5,588
|
5,541
|
5,692
|
||||||||||||
Weighted average number of shares - diluted
|
5,575
|
5,670
|
5,545
|
5,768
|
||||||||||||
Performance Ratios:
|
||||||||||||||||
Return on average assets annualized
|
0.90
|
%
|
0.29
|
%
|
0.66
|
%
|
0.23
|
%
|
||||||||
Return on average common equity annualized
|
6.31
|
%
|
1.62
|
%
|
4.40
|
%
|
1.20
|
%
|
||||||||
Net interest margin
|
3.37
|
%
|
3.05
|
%
|
3.34
|
%
|
3.11
|
%
|
||||||||
Efficiency ratio
|
64.21
|
%
|
79.95
|
%
|
67.83
|
%
|
83.94
|
%
|
||||||||
Operating expenses / average assets annualized
|
2.16
|
%
|
2.45
|
%
|
2.27
|
%
|
2.72
|
%
|
||||||||
For the three months ended
|
||||||||||||||||||||||||
09/30/2017
|
09/30/2016
|
|||||||||||||||||||||||
Average Balance Sheet
(In Thousands)
|
Average
Balance |
Interest
Income/ Expense |
Yield
|
Average
Balance |
Interest
Income/ Expense |
Yield
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$
|
446,383
|
$
|
4,769
|
4.27
|
%
|
$
|
305,405
|
$
|
3,177
|
4.16
|
%
|
||||||||||||
Securities held to maturity
|
41,423
|
264
|
2.55
|
47,293
|
276
|
2.33
|
||||||||||||||||||
Other interest-earning assets
|
9,526
|
50
|
2.10
|
33,412
|
57
|
0.68
|
||||||||||||||||||
Total interest-earning assets
|
497,332
|
5,083
|
4.09
|
386,110
|
3,510
|
3.64
|
||||||||||||||||||
Allowance for loan loss
|
(4,922
|
)
|
(3,905
|
)
|
||||||||||||||||||||
Non-interest-earning assets
|
29,019
|
26,133
|
||||||||||||||||||||||
Total non-interest-earning assets
|
24,097
|
22,228
|
||||||||||||||||||||||
Total Assets
|
$
|
521,429
|
$
|
408,338
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Demand & money market
|
$
|
118,084
|
$
|
118
|
0.40
|
%
|
$
|
81,020
|
$
|
60
|
0.30
|
%
|
||||||||||||
Savings and club deposits
|
106,950
|
73
|
0.27
|
103,166
|
57
|
0.22
|
||||||||||||||||||
Certificates of deposit
|
125,555
|
431
|
1.37
|
89,365
|
266
|
1.19
|
||||||||||||||||||
Total interest-bearing deposits
|
350,589
|
622
|
0.71
|
273,551
|
383
|
0.56
|
||||||||||||||||||
Federal Home Loan Bank advances
|
47,788
|
271
|
2.27
|
22,675
|
183
|
3.23
|
||||||||||||||||||
Total interest-bearing liabilities
|
398,377
|
893
|
0.90
|
296,226
|
566
|
0.76
|
||||||||||||||||||
Non-interest-bearing deposit
|
44,970
|
34,455
|
||||||||||||||||||||||
Other non-interest-bearing liabilities
|
3,964
|
3,430
|
||||||||||||||||||||||
Total Liabilities
|
447,311
|
334,111
|
||||||||||||||||||||||
Equity
|
74,118
|
74,227
|
||||||||||||||||||||||
Total Liabilities and Equity
|
$
|
521,429
|
$
|
408,338
|
||||||||||||||||||||
Net Interest Spread
|
4,190
|
3.19
|
%
|
2,944
|
2.88
|
%
|
||||||||||||||||||
Net Interest Margin
|
3.37
|
%
|
3.05
|
%
|
||||||||||||||||||||
Ratio of Interest Earning Assets to Interest Bearing Liabilities
|
124.84
|
%
|
130.34
|
%
|
||||||||||||||||||||
For the nine months ended
|
||||||||||||||||||||||||
09/30/2017
|
09/30/2016
|
|||||||||||||||||||||||
Average Balance Sheet
(In Thousands)
|
Average
Balance |
Interest
Income/ Expense |
Yield
|
Average
Balance |
Interest
Income/ Expense |
Yield
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$
|
415,512
|
$
|
13,213
|
4.24
|
%
|
$
|
287,688
|
$
|
9,097
|
4.22
|
%
|
||||||||||||
Securities held to maturity
|
42,190
|
762
|
2.41
|
62,215
|
1,038
|
2.22
|
||||||||||||||||||
Other interest-earning assets
|
10,156
|
128
|
1.68
|
21,136
|
126
|
0.79
|
||||||||||||||||||
Total interest-earning assets
|
467,858
|
14,103
|
4.02
|
371,039
|
10,261
|
3.69
|
||||||||||||||||||
Allowance for loan loss
|
(4,715
|
)
|
(3,749
|
)
|
||||||||||||||||||||
Non-interest-earning assets
|
28,791
|
23,215
|
||||||||||||||||||||||
Total non-interest-earning assets
|
24,076
|
19,466
|
||||||||||||||||||||||
Total Assets
|
$
|
491,934
|
$
|
390,505
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Demand & money market
|
$
|
110,116
|
$
|
315
|
0.38
|
%
|
$
|
63,224
|
$
|
118
|
0.25
|
%
|
||||||||||||
Savings and club deposits
|
105,237
|
193
|
0.24
|
103,298
|
171
|
0.22
|
||||||||||||||||||
Certificates of deposit
|
118,378
|
1,195
|
1.35
|
86,512
|
747
|
1.15
|
||||||||||||||||||
Total interest-bearing deposits
|
333,731
|
1,703
|
0.68
|
253,034
|
1,036
|
0.55
|
||||||||||||||||||
Federal Home Loan Bank advances
|
38,563
|
691
|
2.39
|
25,026
|
562
|
2.99
|
||||||||||||||||||
Total interest-bearing liabilities
|
372,294
|
2,394
|
0.86
|
278,060
|
1,598
|
0.77
|
||||||||||||||||||
Non-interest-bearing deposit
|
41,966
|
32,687
|
||||||||||||||||||||||
Other non-interest-bearing liabilities
|
3,377
|
3,664
|
||||||||||||||||||||||
Total Liabilities
|
417,637
|
314,411
|
||||||||||||||||||||||
Equity
|
74,297
|
76,094
|
||||||||||||||||||||||
Total Liabilities and Equity
|
$
|
491,934
|
$
|
390,505
|
||||||||||||||||||||
Net Interest Spread
|
11,709
|
3.16
|
%
|
8,663
|
2.92
|
%
|
||||||||||||||||||
Net Interest Margin
|
3.34
|
%
|
3.11
|
%
|
||||||||||||||||||||
Ratio of Interest Earning Assets to Interest Bearing Liabilities
|
125.67
|
%
|
133.44
|
%
|