EX-99 2 ex99.htm EXHIBIT 99 Exhibit


MSB FINANCIAL CORP. RELEASES FIRST QUARTER EARNINGS
 
MILLINGTON, NJ, April 30, 2019 - MSB Financial Corp. (NASDAQ: MSBF) (the “Company”), parent company of Millington Bank, reported today the results of its operations for the three months ended March 31, 2019.
 
The Company reported net income of $514,000, or $0.10 per diluted common share, for the three months ended March 31, 2019, compared to net income of $1,022,000, or $0.19 per diluted common share, for the three months ended March 31, 2018. The reduction in the current period was due to an $862,000 increase in professional expenses year over year in connection with the first audit of the Company's internal control over financial reporting. As the Company previously disclosed, in connection with the audit, management and outside auditors identified certain material weaknesses in internal control. While none of these material weaknesses resulted in any misstatement or material change to the reported results, they did cause the scope of the audit and consequently the related expense to increase significantly. Adjusting for the expense associated with the change in procedures, net income would have been $1.1 million or $0.21 per diluted share.

Michael A. Shriner, President and Chief Executive Officer, stated "We believe we have addressed the weaknesses and will continue to closely monitor compliance with the new procedures we have established. We are very hopeful that, going forward, the expense associated with the audits of our financial statements and internal control over financial reporting will be reduced."

Mr Shriner commented, "While many of these procedures are more common in larger, more complex institutions, I believe the Company as a whole, and consequently shareholders, will more than benefit in the long run from the comprehensive review of our loans and deposits, as well as the efficiencies we will pick up from the implementation of these enhancements to our internal controls. Apart from this expense, I was pleased with our quarterly results. Net income, adjusted for the additional expense, would have been $1.1 million, or $0.21 per diluted share, as compared to $1.0 million, or $0.19 per diluted share, for the first quarter of 2018. Asset quality continues to improve as well."


Highlights for the quarter:

Return on average assets was 0.36% for the three months ended March 31, 2019 compared to 0.74% for the three months ended March 31, 2018 and return on average equity was 3.05% for the three months ended March 31, 2019 compared to 5.65% for the three months ended March 31, 2018.

Net interest margin decreased five basis points to 3.19% for the quarter ended March 31, 2019 from 3.24% for the quarter ended March 31, 2018.

The efficiency ratio, which is calculated by dividing non-interest expense by the sum of net interest income and non-interest income, was 83.83% for the quarter ended March 31, 2019 as compared to 66.29% for the quarter ended March 31, 2018.

Non-performing assets represented 0.68% of total assets at March 31, 2019 compared with 0.71% at December 31, 2018. The allowance for loan losses as a percentage of total non-performing loans was 147.38% at March 31, 2019 compared to 136.83% at December 31, 2018.

The Company’s balance sheet at March 31, 2019 reflected a decline in total assets of $16.4 million compared to December 31, 2018, improved asset quality, and capital levels that exceeded regulatory standards for a well-capitalized institution.

The effective tax rate increased to 31.1% for the quarter ended March 31, 2019 compared to 28.5% for the quarter ended March 31, 2018.



1



Selected Financial Ratios
 
 
 
 
 
 
 
 
 
 
(unaudited; annualized where applicable)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of or for the quarter ended:
 
3/31/2019

 
12/31/2018

 
9/30/2018

 
6/30/2018

 
3/31/2018

Return on average assets
 
0.36
%
 
0.87
%
 
0.92
%
 
0.87
%
 
0.74
%
Return on average equity
 
3.05
%
 
7.20
%
 
7.56
%
 
7.17
%
 
5.65
%
Net interest margin
 
3.19
%
 
3.22
%
 
3.44
%
 
3.24
%
 
3.24
%
Net loans / deposit ratio
 
113.10
%
 
119.43
%
 
113.08
%
 
113.64
%
 
110.85
%
Shareholders' equity / total assets
 
11.77
%
 
11.40
%
 
11.86
%
 
11.39
%
 
12.37
%
Efficiency ratio
 
83.83
%
 
62.51
%
 
61.96
%
 
62.49
%
 
66.29
%
Book value per common share
 
$
12.46

 
$
12.37

 
$
12.70

 
$
12.43

 
$
12.63




2



Net Interest Income

Total interest income for the three months ended March 31, 2019 increased $679,000, or 12.5%, to $6.1 million compared to $5.4 million for the first quarter of 2018. Interest income increased in the quarter ended March 31, 2019 compared to the comparable period in 2018, primarily due to a $18.9 million increase in average loan balances. Total interest expense increased by $558,000, or 49.5%, to $1.7 million, for the three months ended March 31, 2019 compared to the same period in 2018 due to a combination of higher deposit rates and an increase in the average balance of borrowings outstanding during the 2019 period.

Net interest income for the three months ended March 31, 2019 increased $121,000, or 2.8%, to $4.4 million compared to $4.3 million for the same three-month period in 2018. The change for the three months ended March 31, 2019 was primarily a result of an increase in average earning assets of $23.8 million partially offset by decreasing margin. The annualized net interest spread was 2.94% and 3.07% for the three months ended March 31, 2019 and 2018, respectively. For the quarter ended March 31, 2019, the Company's annualized net interest margin decreased to 3.19% compared to 3.24% for the corresponding three-month period in 2018.

Provision for Loan Losses

The loan loss provision for the three months ended March 31, 2019 was zero compared to $90,000 for the same period in 2018. The decrease in the level of provision for loan loss primarily reflects lower loan growth in the current period in addition to the improvement of other credit metrics year over year.

Non-Interest Income and Non-Interest Expense

Non-interest income for the three months ended March 31, 2019 was $190,000, as compared to $204,000 for the same period in 2018 primarily due to a decrease in fees and service charges. Non-interest expense, which consists of salaries and employee benefits, occupancy expense, professional services and other non-interest expenses totaled $3.9 million for the quarter ended March 31, 2019 as compared to $3.0 million for the same period in 2018. The increase in non-interest expense was primarily related to an increase professional service expense. As the Company previously disclosed, in connection with the audit, management and outside auditors identified certain material weaknesses in internal control.

Taxes

For the three months ended March 31, 2019, the Company recorded a $232,000 tax provision compared to $407,000 for the three months ended March 31, 2018. The effective tax rate increased to 31.1% for the quarter ended March 31, 2019 compared to 28.5% for the quarter ended March 31, 2018.

Quarterly Earnings Summary

The following table presents condensed consolidated statements of income data for the periods indicated.


3



Condensed Consolidated Statements of Income (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands, except for per share data)

 
 
 
 
 
 
 
 
 
 
For the quarter ended:
 
3/31/2019

 
12/31/2018

 
9/30/2018

 
6/30/2018

 
3/31/2018

Net interest income
 
$
4,423

 
$
4,459

 
$
4,755

 
$
4,431

 
$
4,302

Provision for loan losses
 

 

 
60

 
90

 
90

Net interest income after provision for loan losses
 
4,423

 
4,459

 
4,695

 
4,341

 
4,212

Other income
 
190

 
198

 
190

 
208

 
204

Other expense
 
3,867

 
2,911

 
3,064

 
2,899

 
2,987

Income before income taxes
 
746

 
1,746

 
1,821

 
1,650

 
1,429

Income taxes (benefit)
 
232

 
491

 
506

 
407

 
407

Net income
 
$
514

 
$
1,255

 
$
1,315

 
$
1,243

 
$
1,022

Earnings per common share:
 

 
 
 
 
 
 
 
 
   Basic
 
$
0.10

 
$
0.24

 
$
0.25

 
$
0.23

 
$
0.19

   Diluted
 
$
0.10

 
$
0.24

 
$
0.24

 
$
0.23

 
$
0.19

Weighted average common shares outstanding:
 

 
 
 
 
 
 
 
 
   Basic
 
5,198,432

 
5,276,116

 
5,330,029

 
5,331,090

 
5,470,349

   Diluted
 
5,237,329

 
5,317,305

 
5,388,577

 
5,375,090

 
5,507,443



Statement of Condition Highlights at March 31, 2019


Total assets amounting to $568.1 million at March 31, 2019, a decrease of $16.4 million, or 2.81%, compared to December 31, 2018.

The Company’s total gross loans receivable were $495.1 million at March 31, 2019, a decrease of $12.9 million, or 2.5%, from December 31, 2018.

Securities held to maturity were $37.0 million at March 31, 2019, a decrease of $2.5 million, or 6.3%, compared to December 31, 2018.

Deposits increased $12.2 million or 2.89%, to $432.8 million at March 31, 2019 compared to $420.6 million at December 31, 2018.

Borrowings totaled $64.3 million at March 31, 2019, a decrease of $30.0 million, or 31.8%, compared to $94.3 million at December 31, 2018.


The following table presents condensed consolidated statements of condition data as of the dates indicated.


4



Condensed Consolidated Statements of Condition (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)

 
 
 
 
 
 
 
 
 
 
At:
 
3/31/2019

 
12/31/2018

 
9/30/2018

 
6/30/2018

 
3/31/2018

Cash and due from banks
 
$
1,040

 
$
1,558

 
$
1,254

 
$
1,654

 
$
1,871

Interest-earning demand deposits with banks
 
9,771

 
10,242

 
20,817

 
14,660

 
15,484

Securities held to maturity
 
36,982

 
39,476

 
43,009

 
44,770

 
36,375

Loans receivable, net of allowance
 
489,445

 
502,299

 
494,848

 
509,689

 
480,916

Premises and equipment
 
9,221

 
8,180

 
8,323

 
8,461

 
8,580

Federal home Loan Bank of New York stock, at cost
 
3,406

 
4,756

 
4,117

 
4,212

 
3,049

Bank owned life insurance
 
14,679

 
14,585

 
14,489

 
14,392

 
14,294

Accrued interest receivable
 
1,772

 
1,615

 
1,734

 
1,754

 
1,642

Other assets
 
1,777

 
1,789

 
1,803

 
1,657

 
1,816

     Total assets
 
$
568,093

 
$
584,500

 
$
590,394

 
$
601,249

 
$
564,027

Deposits
 
$
432,754

 
$
420,579

 
$
437,597

 
$
448,512

 
$
433,843

Borrowings
 
64,275

 
94,275

 
80,075

 
82,175

 
58,075

Other liabilities
 
4,172

 
3,000

 
2,714

 
2,056

 
2,350

Shareholders' equity
 
66,892

 
66,646

 
70,008

 
68,506

 
69,759

     Total liabilities and shareholders' equity
 
$
568,093

 
$
584,500

 
$
590,394

 
$
601,249

 
$
564,027


Loans

At March 31, 2019, the Company’s net loan portfolio totaled $489.4 million, a decrease of $12.9 million, or 2.6%, compared to $502.3 million at December 31, 2018. The allowance for loan losses amounted to $5.7 million at March 31, 2019 and December 31, 2018.

At March 31, 2019, the loan portfolio primarily consisted of commercial real estate loans (40.3%) and residential mortgages (32.2%). Commercial and industrial loans represented 20.2% of the portfolio while construction loans accounted for 7.3% of the portfolio. Total gross loans receivable decreased $6.0 million to $513.1 million at March 31, 2019 compared to $519.1 million at December 31, 2018. The decrease primarily reflects a $10.8 million decrease in commercial and industrial - secured loans and a $6.0 million decrease in commercial real estate loans. Additionally there was a $2.6 million decrease in residential mortgages as the Company continues to focus on commercial lending. Offsetting these decreases was an increase in the construction loan portfolio of $7.7 million compared to December 31, 2018.

The following table shows the composition of the Company's loan portfolio as of the dates indicated.

5



Loans (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)

 
 
 
 
 
 
 
 
 
 
At quarter ended:
 
3/31/2019

 
12/31/2018

 
9/30/2018

 
6/30/2018

 
3/31/2018

Residential mortgage:
 
 
 
 
 
 
 
 
 
 
     One-to-four family
 
$
140,043

 
$
143,391

 
$
147,127

 
$
151,372

 
$
154,576

     Home equity
 
25,160

 
24,365

 
25,494

 
26,174

 
27,051

Total residential mortgage
 
165,203

 
167,756

 
172,621

 
177,546

 
181,627

Commercial and multi-family real estate
 
206,653

 
212,606

 
209,283

 
214,653

 
195,951

Construction
 
37,319

 
29,628

 
28,788

 
48,423

 
49,397

Commercial and industrial - Secured
 
49,640

 
60,426

 
56,331

 
52,879

 
48,662

Commercial and industrial - Unsecured
 
53,791

 
48,176

 
45,518

 
41,261

 
34,050

Total commercial loans
 
347,403


350,836


339,920


357,216


328,060

Consumer loans
 
470

 
540

 
580

 
608

 
595

Total loans receivable
 
513,076


519,132

 
513,121

 
535,370

 
510,282

Less:
 

 
 
 
 
 
 
 
 
     Loans in process
 
17,443

 
10,677

 
12,142

 
19,594

 
23,398

     Deferred loan fees
 
530

 
501

 
475

 
491

 
462

     Allowance
 
5,658

 
5,655

 
5,656

 
5,596

 
5,506

Total loans receivable, net
 
$
489,445

 
$
502,299

 
$
494,848

 
$
509,689


$
480,916


Asset Quality

At March 31, 2019 and December 31, 2018 non-performing loans totaled $3.8 million and $4.1 million, or 0.68% and 0.71% of total assets, respectively. Nonperforming loans decreased slightly since year end as one relationship was resolved in the quarter. Total delinquent loans (including nonperforming delinquent loans) were $5.8 million at March 31, 2019, a decrease of $476,000 from December 31, 2018 due to a decrease in loans past due 90 days or more. The allowance for loan losses as a percentage of total loans was 1.14% and 1.11% at March 31, 2019 and at December 31, 2018, respectively, while the allowance for loan losses as a percentage of non-performing loans increased to 147.38% at March 31, 2019 from 136.83% at December 31, 2018. Non-performing loans to total loans decreased to 0.78% at March 31, 2019 from 0.81% at December 31, 2018 primarily due to a decrease in nonperforming loans.

The following table presents the components of non-performing assets and other asset quality data for the periods indicated.
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands, unaudited)

 
 
 
 
 
 
 
 
 
 
As of or for the quarter ended:
 
3/31/2019

 
12/31/2018

 
9/30/2018

 
6/30/2018

 
3/31/2018

Non-accrual loans
 
$
3,839

 
$
4,131

 
$
2,746

 
$
3,430

 
$
3,548

Loans 90 days or more past due and still accruing
 

 
2

 
101

 
699

 
1,266

    Total non-performing loans
 
$
3,839

 
$
4,133

 
$
2,847

 
$
4,129

 
$
4,814

 
 

 
 
 
 
 
 
 
 
Non-performing assets / total assets
 
0.68
 %
 
0.71
%
 
0.48
%
 
0.69
%
 
0.85
 %
Non-performing loans / total loans
 
0.78
 %
 
0.81
%
 
0.57
%
 
0.80
%
 
0.99
 %
Net charge-offs (recoveries)
 
$
(3
)
 
$

 
$

 
$

 
$
(2
)
Net charge-offs (recoveries) / average loans (annualized)
 
 %

%

%

%
 
 %
Allowance for loan loss / total loans
 
1.14
 %
 
1.11
%
 
1.13
%
 
1.09
%
 
1.13
 %
Allowance for loan losses / non-performing loans
 
147.38
 %
 
136.83
%
 
198.67
%
 
135.53
%
 
114.37
 %
 
 

 
 
 
 
 
 
 
 
Total assets
 
$
568,093

 
$
584,500

 
$
590,394

 
$
601,249

 
$
564,027

Gross loans, excluding ALLL
 
$
495,103

 
$
507,954

 
$
500,504

 
$
515,285

 
$
486,422

Average loans
 
$
502,149

 
$
499,368

 
$
499,082

 
$
500,959

 
$
483,255

Allowance for loan losses
 
$
5,658

 
$
5,655

 
$
5,656

 
$
5,596

 
$
5,506


Deposits

Total deposits at March 31, 2019 increased to $432.8 million from $420.6 million compared to year-end 2018. Certificates of deposits (including IRAs) and non-interest demand balances increased $18.7 million and $2.7 million, respectively. Certificates of deposits increased to $139.6 million compared to $120.9 million at year end while non-interest demand deposit account balances increased to $49.4 million compared to $46.7 million. Additionally, money market balances increased $1.0 million to $17.2 million compared to $16.2 million at year-end 2018. Offsetting these increases was a decline in interest demand deposit account balances of $10.7 million to $123.4 million at March 31, 2019 from $134.1 million from year end at December 31, 2018.

The following table shows the composition of the Company's deposits as of the dates indicated.

Deposits (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)

 
 
 
 
 
 
 
 
 
 
At quarter ended:
 
3/31/2019

 
12/31/2018

 
9/30/2018

 
6/30/2018

 
3/31/2018

Demand:
 
 
 
 
 
 
 
 
 
 
     Non-interest bearing
 
$
49,429

 
$
46,690

 
$
45,501

 
$
42,687

 
$
36,751

     Interest-bearing
 
123,420

 
134,123

 
150,248

 
153,968

 
148,888

Savings
 
103,109

 
102,740

 
102,434

 
109,254

 
109,215

Money market
 
17,182

 
16,171

 
12,822

 
14,381

 
20,251

Time
 
139,614

 
120,855

 
126,592

 
128,222

 
118,738

     Total deposits
 
$
432,754

 
$
420,579

 
$
437,597

 
$
448,512

 
$
433,843


Capital

At March 31, 2019, the Company's total stockholders' equity amounted to $66.9 million, or 11.77% of total assets, compared to $66.6 million at December 31, 2018. The Company’s book value per common share was $12.46 at March 31, 2019, compared to $12.37 at December 31, 2018. The increase in shareholders' equity was primarily due to net income of $514,000, offset by the repurchase of 22,200 shares common stock during the quarter at a total cost of $398,000, with the remaining difference related to ESOP, restricted stock and stock option accounting activity.

6




At March 31, 2019, the Bank’s common equity tier 1 ratio was 12.25%, tier 1 leverage ratio was 10.86%, tier 1 capital ratio was 12.25% and the total capital ratio was 13.38%. At December 31, 2018, the Bank’s common equity tier 1 ratio was 11.90%, tier 1 leverage ratio was 10.71%, tier 1 capital ratio was 11.90%, and the total capital ratio was 13.00%. At March 31, 2019, the Bank was in compliance with all applicable regulatory capital requirements.

The following table sets forth the Company's consolidated average statements of condition for the periods presented.
Condensed Consolidated Average Statements of Condition (unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
For the quarter ended:
 
3/31/2019

 
12/31/2018

 
9/30/2018

 
6/30/2018

 
3/31/2018

Loans
 
$
502,149

 
$
499,368

 
$
499,082

 
$
500,959

 
$
483,255

Securities held to maturity
 
37,899

 
41,460

 
43,871

 
36,494

 
37,661

Allowance for loan losses
 
(5,656
)
 
(5,686
)
 
(5,624
)
 
(5,538
)
 
(5,461
)
All other assets
 
42,778

 
41,211

 
37,466

 
38,053

 
38,851

     Total assets
 
$
577,170

 
$
576,353

 
$
574,795

 
$
569,968

 
$
554,306

Non-interest bearing deposits
 
$
46,962

 
$
48,172

 
$
43,495

 
$
38,903

 
$
36,211

Interest-bearing deposits
 
367,434

 
372,474

 
386,364

 
385,047

 
390,522

Borrowings
 
92,780

 
83,440

 
73,077

 
74,192

 
53,191

Other liabilities
 
2,623

 
2,585

 
2,320

 
2,495

 
1,972

Stockholders' Equity
 
67,371

 
69,682

 
69,539

 
69,331

 
72,410

     Total liabilities and shareholders' equity
 
$
577,170

 
$
576,353

 
$
574,795

 
$
569,968

 
$
554,306

 
 
 
 
 
 
 
 
 
 
 

Non-GAAP Financial Measures

This release references adjusted net income, which is a non-GAAP (Generally Accepted Accounting Principles) financial measure. Adjusted net income is derived from GAAP net income less the $862,000 in additional expenses associated with the expanded audit scope and identification of material weaknesses and tax effected rate of 31%. We believe the presentation of adjusted net income is appropriate as it better enables an investor to analyze the performance of our core business year over year without the impact of unusual items.

The following tables reconcile adjusted net income to net income and adjusted diluted earnings per share to diluted earnings per share:

 
Three months ended March 31,
 
2019
 
2018
(dollars in thousands)
 
 
 
Net income
$
514

 
$
1,022

Professional expenses associated with increased audit scope and identification of material weaknesses
862

 

Tax adjustment using an assumed tax rate of 31%
(267
)
 

Adjusted net income
$
1,109

 
$
1,022



7



 
Three Months Ended
March 31,
(In Thousands, Except Per Share Data)
2019
 
2018
Numerator:
 
 
 
Net income
$
1,109

 
$
1,022

 
 
 
 
Denominator:
 

 
 

Weighted average common shares
5,198

 
5,470

Dilutive potential common shares
39

 
37

Weighted average fully diluted shares
5,237

 
5,507

 
 
 
 
Earnings per share:
 

 
 

Dilutive
$
0.21

 
$
0.19






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 impact of the passage of the Tax Cuts and Jobs Act, our continued ability to manage cybersecurity risks and our continued ability to successfully remediate our identified internal control weaknesses.

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




8



 
 
 
MSB Financial Corp. and Subsidiaries
 
Consolidated Statements of Financial Condition
 
At
March 31,
2019
At
December 31,
2018
(Dollars in thousands, except per share amounts)
 
 
Cash and due from banks
$
1,040

$
1,558

Interest-earning demand deposits with banks
9,771

10,242

Cash and Cash Equivalents
10,811

11,800

Securities held to maturity (fair value of $36,444 and $38,569, respectively)
36,982

39,476

Loans receivable, net of allowance for loan losses of $5,658 and $5,655, respectively
489,445

502,299

Premises and equipment
8,088

8,180

Federal Home Loan Bank of New York stock, at cost
3,406

4,756

Bank owned life insurance
14,679

14,585

Accrued interest receivable
1,772

1,615

Other assets
2,910

1,789

Total Assets
$
568,093

$
584,500

Liabilities and Stockholders' Equity
 
 
Liabilities
 
 
Deposits:
 
 
Non-interest bearing
$
49,429

$
46,690

Interest bearing
383,325

373,889

Total Deposits
432,754

420,579

Advances from Federal Home Loan Bank of New York
64,275

94,275

Advance payments by borrowers for taxes and insurance
719

749

Other liabilities
3,453

2,251

Total Liabilities
501,201

517,854

Stockholders' Equity
 
 
Preferred stock, par value $0.01; 1,000,000 shares authorized; no shares issued or outstanding


Common stock, par value $0.01; 49,000,000 shares authorized; 5,366,854 and 5,389,054 issued and outstanding at March 31, 2019 and December 31, 2018, respectively
54

54

Paid-in capital
44,431

44,726

Retained earnings
24,012

23,498

Unearned common stock held by ESOP (176,740 and 179,464 shares, respectively)
(1,605
)
(1,632
)
Total Stockholders' Equity
66,892

66,646

Total Liabilities and Stockholders' Equity
$
568,093

$
584,500

 
 
 







9



 
 
 
 
 
MSB Financial Corp. and Subsidiaries
 
Consolidated Statements of Income
 
 
Three months ended March 31,
 
 
2019
 
2018
(in thousands except per share amounts)
 
 
 
 
Interest Income
 
 
 
 
Loans receivable, including fees
 
$
5,691

 
$
5,136

Securities held to maturity
 
285

 
219

Other
 
132

 
74

Total Interest Income
 
6,108

 
5,429

Interest Expense
 
 
 
 
Deposits
 
1,126

 
846

Borrowings
 
559

 
281

Total Interest Expense
 
1,685

 
1,127

Net Interest Income
 
4,423

 
4,302

Provision for Loan Losses
 

 
90

Net Interest Income after Provision for Loan Losses
 
4,423

 
4,212

Non-Interest Income
 
 
 
 
Fees and service charges
 
72

 
83

Income from bank owned life insurance
 
94

 
97

Other
 
24

 
24

Total Non-Interest Income
 
190

 
204

Non-Interest Expenses
 
 
 
 
Salaries and employee benefits
 
1,728

 
1,805

Directors compensation
 
129

 
122

Occupancy and equipment
 
375

 
386

Service bureau fees
 
95

 
66

Advertising
 
7

 
4

FDIC assessment
 
46

 
54

Professional services
 
1,278

 
353

Other
 
209

 
197

Total Non-Interest Expenses
 
3,867

 
2,987

Income before Income Taxes
 
746

 
1,429

Income Tax Expense
 
232

 
407

Net Income
 
$
514

 
$
1,022

Earnings per share:
 
 
 
 
Basic
 
$
0.10

 
$
0.19

Diluted
 
$
0.10

 
$
0.19

 
 
 
 
 




10



 
 
 
 
 
 
MSB Financial Corp. and Subsidiaries
 
 
 
 
 
 
 
 
Selected Quarterly Financial and Statistical Data
 
 
 
 
 
 
Three Months Ended
(in thousands, except for share and per share data) (annualized where applicable)
3/31/2019
 
12/31/2018
 
3/31/2018
(unaudited)
 
 
 
 
 
Statements of Operations Data
 
 
 
 
 
 
 
 
 
 
 
Interest income
$
6,108

 
$
6,003

 
$
5,429

Interest expense
1,685

 
1,544

 
1,127

Net interest income
4,423

 
4,459

 
4,302

Provision for loan losses

 

 
90

Net interest income after provision for loan losses
4,423

 
4,459

 
4,212

Other income
190

 
198

 
204

Other expense
3,867

 
2,911

 
2,987

Income before income taxes
746

 
1,746

 
1,429

Income tax expense (benefit)
232

 
491

 
407

Net Income
$
514

 
$
1,255

 
$
1,022

Earnings (per Common Share)
 
 
 
 
 
Basic
$
0.10

 
$
0.24

 
$
0.19

Diluted
$
0.10

 
$
0.24

 
$
0.19

Statements of Condition Data (Period-End)
 
 
 
 
 
Investment securities held to maturity (fair value of $36,444, $38,569, and $35,561)
$
36,982

 
$
39,476

 
$
36,375

Loans receivable, net of allowance for loan losses
489,445

 
502,299

 
480,916

Total assets
568,093

 
584,500

 
564,027

Deposits
432,754

 
420,579

 
433,843

Borrowings
64,275

 
94,275

 
58,075

Stockholders' equity
66,892

 
66,646

 
69,759

Common Shares Dividend Data
 
 
 
 
 
Cash dividends
$

 
$
2,522

 
$

Weighted Average Common Shares Outstanding
 
 
 
 
 
Basic
5,198,432

 
5,276,116

 
5,470,349

Diluted
5,237,329

 
5,317,305

 
5,507,443

Operating Ratios
 
 
 
 
 
Return on average assets
0.36
%
 
0.87
%
 
0.74
%
Return on average equity
3.05
%
 
7.20
%
 
5.65
%
Average equity / average assets
11.67
%
 
12.09
%
 
13.06
%
Book value per common share (period-end)
$
12.46

 
$
12.37

 
$
12.63





11