-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, IMejCPm2DPpxtA+LfiR1OC0nX6OUVTV4MU2e0rTazHXN7SDKQ8AYmM/ZKv+g5Q9G wOGNPryulmjxi+QGZNeIzw== 0000916396-02-000020.txt : 20021018 0000916396-02-000020.hdr.sgml : 20021018 20021018144556 ACCESSION NUMBER: 0000916396-02-000020 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020930 ITEM INFORMATION: Other events FILED AS OF DATE: 20021018 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MFB CORP CENTRAL INDEX KEY: 0000916396 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 351907258 STATE OF INCORPORATION: IN FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12279 FILM NUMBER: 02792552 BUSINESS ADDRESS: STREET 1: 121 SOUTH CHURCH ST CITY: MISHAWAKA STATE: IN ZIP: 46544 BUSINESS PHONE: 5742553146 MAIL ADDRESS: STREET 1: 121 SOUTH CHURCH ST CITY: MISHAWNA STATE: IN ZIP: 46544 8-K 1 t8k093002.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 18, 2002 MFB Corp. (Exact name of registrant as specified in its charter) INDIANA (State or other jurisdiction of incorporation) 0-23374 35-1907258 (Commission File Number) (IRS Employer Identification No.) 121 South Church Street Post Office Box 528 Mishawaka, Indiana 46544 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (574) 255-3146 Item 5. Other Events. Pursuant to General Instruction F to Form 8-K, the press release issued October 18, 2002 concerning the Fourth Quarter Earnings and cash dividend announcement is incorporated herein by reference and is attached hereto as Exhibit 1. Item 7. Financial Statements and Exhibits. (c) Exhibits Exhibit 1 -- Press Release dated October 18, 2002. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. --------------------------------------- Thomas J. Flournoy, Chief Financial Officer Dated: October 18, 2002 October 18, 2002 Point of Contact: Charles J.Viater President/CEO MFB Corp. ANNOUNCES FOURTH QUARTER AND ANNUAL EARNINGS AND DIVIDEND DECLARATION Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC), parent company of MFB Financial , today reported consolidated net income on an unaudited basis of $576,000 or $0.42 diluted earnings per share for the three months ended September 30, 2002, up 16.1% over the net income of $496,000 or $0.35 diluted earnings per share for the three months ended September 30, 2001. MFB Corp.'s consolidated net income for the fiscal year ended September 30, 2002 of $649,000, or $0.47 diluted earnings per share, decreased from the $1,910,000, or $1.38 diluted earnings per share, reported for last year. Charles Viater, President and CEO also announced today that the Board of Directors has declared a cash dividend of $ .105 per share of Common Stock for the quarter ended September 30, 2002. The dividend is payable on November 12, 2002 to holders of record on October 29, 2002. This dividend will be the 26th consecutive quarter of dividends paid to shareholders. For the three months ended September 30, 2002 and 2001, MFB Corp.'s net interest income was $3.0 million. The provision for loan losses for the three months ended September 30, 2002 decreased to $450,000 from the $728,000 for the same period last year. Other noninterest income (excluding Gain (losses) on securities) increased from $741,000 for the fourth quarter of last year to $951,000 for the same period this year due to an increase in gains on sales of mortgage loans, deposit fees and trust fees for the respective quarters. MFB Corp. recorded net losses on securities of ($103,000) during the fourth quarter ended September 30, 2002 compared to $0 for the same period last year. Noninterest expense increased from $2.3 million for the three months ended September 30, 2001 to $2.6 million for the same period this year primarily due to increases in salaries and employee benefits and other expense. The income tax provision for both quarters was comparable. For the year ended September 30, 2002, MFB Corp.'s net interest income before provision for loan losses totaled $11.9 million compared to $12.1 million for last year. The provision for loan losses for the year ended September 30, 2002 was $3.4 million compared to $3.1 for the twelve month period last year. Other noninterest income (excluding Gain (losses) on securities) increased 17.5% from $2.7 million for the year ended September 30, 2001 to $3.1 million for this year. Significant growth occurred in gains on sales of mortgage loans, deposit fees and trust fees. Losses on securities totaled ($934,000) for the year ended September 30, 2002 compared to only ($52,000) in losses last year. The securities losses this year were comprised primarily of $895,000 in charges taken on the write down of a $1.0 million corporate note. Noninterest expense increased 16.0% from $8.7 million for the twelve months ended September 30, 2001 to $10.1 million for this year primarily due to increases in salaries and employee benefits, occupancy and equipment, information systems expense and other expense. Mr. Viater commented, "We are very pleased with our performance during the fourth quarter this year. Despite downward pressure on interest margins, we experienced a significant increase in net income over the fourth quarter last year. We will continue to focus on generating noninterest income, monitoring the quality of our loan and investment portfolios, and controlling expenses as we enter the new fiscal year. MFB Corp.'s total assets were $421.2 million as of September 30, 2002 compared to $413.1 million at September 30, 2001. Total loans receivable at September 30, 2002 of $316.4 million represented an increase of 1.5% over the $311.6 million at the same time last year. Investments increased from $58.5 million at September 30, 2001 to $63.1 million at September 30, 2002. Total deposits increased 7.8% from $245.2 million last year to $264.4 million this year. Total borrowings including Federal Home Loan Bank advances and securities sold under agreement to repurchase decreased 8.8% from $130.7 million last year to $119.2 million this year. Total shareholders' equity was $34.0 million as of September 30, 2002 compared to $34.4 million at September 30, 2001. MFB Corp.'s equity to asset ratio was 8.06% at September 30, 2002 compared to 8.32% at this time last year. The book value of MFB Corp. stock decreased from $25.72 at September 30, 2001 to $25.53 at September 30, 2002. MFB Corp.'s allowance for loan losses at September 30, 2002 was 1.63% of loans, up from the 1.49% at the end of last year. The ratio of nonperforming assets to loans was 1.88% at September 30, 2002 compared to 0.89% at September 30, 2001. Based on the evaluation of many factors including current economic conditions, changes in the character and size of the loan portfolio, current and past delinquency trends and historical and estimated net charge-offs, MFB Corp provided $3.4 million to its allowance for loan losses during the year ended September 30, 2002 and $3.1 million for the prior year ended September 30, 2001. Net charge offs deducted from the allowance for loan losses were $2.9 million for the year ended September 30, 2002 and $137,000 last year. A total of $2.6 million of the charge offs this year were on two specific commercial loan relationships. .. MFB Corp.'s wholly owned bank subsidiary, MFB Financial, provides retail and small business financial services to the Michiana area through its seven banking centers in St. Joseph and Elkhart counties. MFB Financial comprises over 99% of the assets of MFB Corp. The foregoing discussion contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which involve a number of risks and uncertainties. A number of factors could cause results to differ materially from the objectives and estimates expressed in such forward-looking statements. These factors include, but are not limited to, changes in the financial condition of issuers of the Corporation's investments and borrowings, changes in economic conditions in the company's market area, fluctuations in interest rates, demand for loans in the company's market area, changes in the position of banking regulators on the adequacy of the allowance for loan losses and other matters, and competition, all or some of which could cause actual results to differ materially from historical earnings and those presently anticipated or projected. These factors should be considered in evaluating any forward-looking statements, and undue reliance should not be placed on such statements. The Corporation does not undertake and specifically disclaims any obligation to update any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements. MFB CORP. AND SUBSIDIARY Consolidated Balance Sheets (Unaudited) September 30, 2002 and September 30, 2001 (in thousands, except share information)
September 30, September 30, 2002 2001 ASSETS Cash and due from financial institutions $ 13,647 $ 7,229 Interest-bearing deposits in other financial institutions - short term 13,935 26,994 ----------- ----------- Total cash and cash equivalents 27,582 34,223 Securities available for sale 53,585 47,860 Interest-bearing time deposits in other financial institutions 500 1,500 Federal Home Loan Bank (FHLB) stock, at cost 6,308 6,308 Investment in limited partnership 2,714 2,877 Loans held for sale 6,404 3,074 Loans receivable 316,391 311,613 Less: allowance for loan losses (5,143) (4,632) Loans receivable, net 311,248 306,981 ------- ------- Accrued interest receivable 1,766 1,774 Premises and equipment, net 5,054 5,100 Mortgage servicing rights, net of accumulated amortization of $605 at 9/30/2002 and $239 at 9/30/2001 1,616 1,069 Other Assets 4,423 2,318 Total Assets $421,200 $413,084 LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Deposits Noninterest-bearing demand deposits $ 19,661 $ 13,895 Savings, NOW and MMDA deposits 87,168 73,082 Other time deposits 157,548 158,202 Total deposits 264,377 245,179 Securities sold under agreements to repurchase - 11,022 Federal Home Loan Bank advances 119,215 119,685 Advances from borrowers for taxes and insurance 1,414 1,599 Accrued expenses and other liabilities 2,242 1,219 Total Liabilities 387,248 378,704 Shareholders' Equity Common Stock, 5,000,000 shares authorized; shares issued: 1,689,417 - 9/30/02 and 9/30/01 shares outstanding: 1,330,049 - 9/30/02, 1,336,539 - 9/30/01 12,881 13,023 Retained earnings - substantially restricted 29,183 29,089 Accumulated other comprehensive income (loss), net of tax (195) 45 Treasury Stock, 359,368 common shares - 9/30/02 352,878 common shares - 9/30/01 (7,917) (7,777) Total shareholders' equity 33,952 34,380 --------- --------- Total Liabilities and Shareholders' Equity $421,200 $413,084 ======== ========
MFB CORP. AND SUBSIDIARY Consolidated Statements of Income (Unaudited) Three Months and Twelve Months Ended September 30, 2002 and 2001 (in thousands, except per share information)
Three Months Ended Twelve Months Ended September 30, September 30, 2002 2001 2002 2001 Total interest income $6,341 $7,230 $25,765 $30,024 Total interest expense 3,339 4,246 13,829 17,972 ----- ----- ------ ------ Net interest income 3,002 2,984 11,936 12,052 Provision for loan losses 450 729 3,369 3,096 ------ ------ ----- ----- Net interest income after provision for loan losses 2,552 2,255 8,567 8,956 Gain (losses) on securities (103) - (934) (52) Other noninterest income 951 741 3,149 2,679 ------ ----- ----- ----- Total noninterest income 848 741 2,215 2,627 Total noninterest expense 2,589 2,261 10,115 8,722 ----- ----- ------ ----- Income before income taxes 811 735 667 2,861 Income tax expense 235 239 18 951 Net Income $ 576 $ 496 $ 649 $ 1,910 ====== ===== ===== ======= Basic Earnings per common share $ .43 $ .37 $ .49 $ 1.42 Diluted Earnings per common share $ .42 $ .35 $ . 47 $ 1.38
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