-----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, LUDcXS/mj8X7Gl1qRi64U1o3sNY6c8Dt0sifpq6zS22rpF6UhmdNen+2NYtOCW8H 8XI/PkOCZHdqy4ihdkB9NQ== 0000916396-07-000002.txt : 20070118 0000916396-07-000002.hdr.sgml : 20070118 20070118154202 ACCESSION NUMBER: 0000916396-07-000002 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061231 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070118 DATE AS OF CHANGE: 20070118 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: 07537793 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 r8k123106.txt Microsoft Word 10.0.6612;2 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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) January 18, 2007 MFB Corp. (Exact Name of Registrant as Specified in Its Charter) Indiana 0-23374 (State or Other Jurisdiction of Incorporation) (Commission File Number) 35-1907258 (IRS Employer Identification No.) 4100 Edison Lakes Parkway, Suite 300, P.O. Box 528, Mishawaka, Indiana 46546 (Address of Principal Executive Offices) (Zip Code) (574) 277-4200 (Registrant's Telephone Number, Including Area Code) (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 (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.01. Results from Operations and Financial Condition On January 18, 2007, MFB Corporation issued a press release that announced its first quarter earnings for fiscal year 2007. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. Item 9.01. Financial Statements and Exhibits (d) Exhibits Exhibit No. Description 99.1 Press release dated January 18, 2007, with respect to MFB Corporation's financial results for the first quarter ended December 31, 2006. 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 hereto duly authorized. Date: January 18, 2007 MFB Corp. By: /s/ Charles J Viater Charles J. Viater, President and CEO 907488_4.DOC EX-99 2 e8k123106.txt Microsoft Word 10.0.6612; January 18, 2006 Contact: Charles J. Viater President/CEO MFB Corp. ANNOUNCES FIRST QUARTER EARNINGS AND QUARTERLY DIVDEND DECLARATION Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC), parent company of MFB Financial (the "Bank"), reported today its consolidated financial results on an unaudited basis of $1.2 million, or $0.84 diluted earnings per share for the three months ended December 31, 2006 an increase from the net loss of $397,000 or $0.29 diluted loss per share, for the three months ended December 31, 2005. Charles J. Viater, President and CEO, stated "The Bank benefited this quarter from the recovery of loan losses and a partial settlement from the WorldCom class action law suit. Despite the challenging rate environment, we remain focused on the continued growth of loans and deposits." In addition, Mr. Viater announced today that the Board of Directors has declared a cash dividend of $0.165 per share of common stock for the quarter ended December 31, 2006. The dividend is payable on February 13, 2007 to holders of record on January 30, 2007. MFB Corp's net interest income before provision for loan losses for the three month period ended December 31, 2006 was $3.1 million compared to $3.5 million for the same period last year. The decrease was primarily due to an increase in interest expense on deposits partially offset by a reduction of FHLB advances and other borrowings interest expense. Interest expense on deposits increased to $2.6 million for the quarter ended December 2006 compared to $2.1 million for the quarter ended December 2005, while expense for borrowings declined to $1.5 million from $1.6 million for the comparable periods. Total interest income earned was $7.1 million for the quarter ended December 2006 and $7.2 million for the same quarter in 2005. MFB recorded a recovery of loan losses of $1.1 million for the quarter ended December 31, 2006 compared to a provision of $2.1 for the same period last year. The recovery during the quarter ended December 31, 2006 was predominantly related to the repayment of two commercial loans which previously had significant allowance for loan losses allocations. The provision during the first quarter ended December 31, 2005 was primarily related to management's assessment of a commercial loan (which is the larger of the two loans discussed above) to a business experiencing difficulties with inventory management, trade accounts receivable collections, financial reporting, and operating cash flow. This loan is primarily secured by inventory and accounts receivable. During the first quarter ended December 31, 2005, the Bank updated the analysis of the value of this collateral, completed an assessment of the reliability and adequacy of accounting systems and evaluated the most recent financial performance of the business and determined that an additional charge to earnings in the amount of $2.3 million ($1.4 million net of tax) for this loan was necessary. The percentage of non-performing assets to total loans decreased from 2.18% at September 30, 2006 to 1.90% at December 31, 2006. Noninterest income totaled $1.6 million for both quarters ending December 31, 2006 and 2005. In the quarter ended December 31, 2006, MFB recorded a gain on securities of $361,000 as a partial settlement on a WorldCom class action suit; an impairment of $49,000 was recorded for the valuation of mortgage servicing assets in the current quarter while in the prior year period a recovery of $167,000 was recorded for the valuation of mortgage servicing rights. Noninterest expense increased to $4.2 million for the quarter ended December 31, 2006 from $3.9 million for the quarter ended December 31, 2005. The increase was primarily from increased salaries and employee benefits as well as an increase in marketing and business development expenses. The Company's total assets were $501.9 million as of December 31, 2006 compared to $496.1 million as of September 30, 2006. Cash and cash equivalents increased from $16.3 million at September 30, 2006 to $21.7 million at December 31, 2006. As of December 31, 2006 total securities available for sale were $53.0 million, a decrease of $5.4 million from $58.4 million at September 30, 2006. Loans receivable increased from $379.2 million at September 30, 2006 to $383.3 million at December 31, 2006. Mortgage loans increased by $900,000 from $199.2 million at September 30, 2006 to $200.1 million at December 31, 2006. Commercial loans outstanding increased slightly from $134.4 million at September 30, 2006 to $134.9 million at December 31, 2006. Consumer loans, including home equity and second mortgages, increased by $2.6 million during the three month period. During the first quarter ended December 31, 2006, the Company completed secondary market mortgage loan sales totaling $2.1 million and the net gains realized on these loan sales were $51,000 including $26,000 related to recording mortgage servicing rights. During the quarter ended September 30, 2006, the Company completed secondary market mortgage loan sales totaling $2.3 million and the net gains realized on these loan sales were $49,000 including $29,000 related to recording mortgage servicing rights. The allowance for loan losses at December 31, 2006 was $5.7 million or 1.48% of loans compared to $7.2 million or 1.91% of loans at September 30, 2006. For the first quarter ended December 31, 2006, net charge-offs were $439,000 compared to $37,000 net charge-offs for the quarter ended September 30, 2006. Total liabilities increased by $4.8 million, from $457.1 million at September 30, 2006 to $461.9 million at December 31, 2006. The bank's noninterest-bearing demand deposits increased $3.2 million, and time deposits increased $3.2 million; and were offset in part by a decrease in savings and NOW deposits of $1.9 million. Advances from the FHLB increased slightly to $98.0 million at December 31, 2006, from $97.1 million at September 30, 2006. Total shareholders' equity increased by $1.2 million to $40.1 million at December 31, 2006 compared to $38.9 million at September 30, 2006. The book value of MFB Corp. stock also increased, from $29.48 at September 30, 2006 to $30.29 at December 31, 2006. MFB Corp.'s wholly-owned bank subsidiary, MFB Financial, provides retail and business financial services to the Michiana area through its eleven banking centers in St. Joseph and Elkhart counties and private client services to the Indianapolis market through its office in Hamilton County. For more information, go to www.mfbbank.com.
MFB CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (UNAUDITED) December 31, 2006 and September 30, 2006 (in thousands except share information) December 31, September 30, 2006 2006 ----------------- ------------------ ----------------- ------------------ Assets Cash and due from financial institutions $ 11,669 $ 13,318 Interest-bearing deposits in other financial institutions - short term 10,030 2,971 ----------------- ------------------ Total cash and cash equivalents 21,699 16,289 Securities available for sale 52,958 58,383 FHLB Stock and other investments 10,415 10,939 Loans held for sale 675 - Mortgage loans 200,122 199,194 Commercial loans 134,946 134,414 Consumer loans 48,214 45,614 ----------------- ------------------ ----------------- ------------------ Loans receivable 383,282 379,222 Less: allowance for loan losses (5,663) (7,230) ----------------- ------------------ Loans receivable, net 377,619 371,992 Premises and equipment, net 19,347 19,477 Mortgage servicing rights 2,241 2,366 Cash surrender value of life insurance 6,296 6,237 Goodwill 1,970 1,970 Other intangible assets 1,602 1,699 Other assets 7,114 6,720 ----------------- ------------------ Total Assets $ 501,946 $ 496,072 ================= ================== Liabilities and Shareholders' Equity Liabilities Deposits Noninterest-bearing demand deposits $ 33,222 $ 30,031 Savings, NOW and MMDA deposits 127,296 129,233 Time deposits 190,213 186,979 ----------------- ------------------ Total deposits 350,731 346,243 FHLB advances 97,970 97,053 Loans from correspondent banks 4,500 4,500 Subordinated debentures 5,000 5,000 Accrued expenses and other liabilities 3,650 4,337 ----------------- ------------------ Total liabilities 461,851 457,133 Shareholders' equity Common stock, no par value: 5,000,000 shares authorized; shares issued: 1,689,417 - 12/31/06 and 09/30/06; shares outstanding: 1,323,771 - 12/31/06 and 1,320,844 - 09/30/06 12,466 12,421 Retained earnings - substantially restricted 36,413 35,479 Accumulated other comprehensive income (loss), net of tax of ($96) - 12/31/06 and ($176) - 09/30/06 (341) (186) Treasury stock: 365,646 common shares - 12/31/06 and (8,598) (8,620) 368,573 common shares - 09/30/06, at cost ----------------- ------------------ Total shareholders' equity 40,095 38,939 ----------------- ------------------ Total Liabilities and Shareholders' equity $ 501,946 $ 496,072 ================= ================== MFB CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) Three Months Ended December 31, 2006 and 2005 (in thousands except per share information) Three Months Ended December 31, 2006 2005 ------------------ ----------------- ------------------ ----------------- Interest income Loans receivable, including fees $ 6,307 $ 6,042 Securities - taxable 740 773 Other interest-bearing assets 65 350 ------------------ ----------------- ------------------ ----------------- Total interest income 7,112 7,165 Interest expense Deposits 2,581 2,064 FHLB advances and other borrowings 1,471 1,644 ------------------ ----------------- Total interest expense 4,052 3,708 ------------------ ----------------- ------------------ ----------------- Net interest income 3,060 3,457 Provision for (recovery of) loan losses (1,128) 2,055 ------------------ ----------------- ------------------ ----------------- Net interest income after provision for 4,188 1,402 (recovery of) loan losses Noninterest income Service charges on deposit accounts 851 865 Trust fee income 111 100 Insurance commissions 8 48 Net realized gains from sales of loans 51 85 Mortgage servicing asset recovery (impairment) (49) 167 Net gain (loss) on securities available for sale 361 - Other income 288 290 ------------------ ----------------- ------------------ ----------------- Total noninterest income 1,621 1,555 Noninterest expense Salaries and employee benefits 2,112 1,962 Occupancy and equipment expenses 801 796 Professional and consulting fees 218 162 Data processing expense 207 214 Other expense 878 777 ------------------ ----------------- ------------------ ----------------- Total noninterest expense 4,216 3,911 Income (loss) before income taxes 1,593 (954) Income tax expense (benefit) 442 (557) ------------------ ----------------- ------------------ ----------------- Net income (loss) $ 1,151 $ (397) ================== ================= ================== ================= Basic earnings (loss) per common share $ 0.87 $ (0.29) Diluted earnings (loss) per common share $ 0.84 $ (0.29) Cash dividends declared $ 0.165 $ 0.135
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