MSB Financial Corp. (NASDAQ: MSBF) (the
“Company”), parent company of Millington Bank, reported today the
results of its operations for the three and twelve months ended
December 31, 2019.
The Company reported net income of $1.3 million,
or $0.25 per diluted common share, for the three months ended
December 31, 2019, compared to net income of $1.3 million, or
$0.24 per diluted common share, for the three months ended
December 31, 2018. Net income for the twelve months
ended December 31, 2019 was $4.1 million, or $0.80 per diluted
common share, compared to net income of $4.8 million, or
$0.90 per diluted common share, for the twelve months ended
December 31, 2018. The twelve months ended
December 31, 2019 were impacted by approximately $862,000 in
additional 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 for the twelve months ended December 31, 2019 would
have been $4.7 million or $0.92 per diluted share.
Highlights for the quarter:
- Return on average assets was 0.86%
for the three months ended December 31, 2019 compared to 0.87%
for the three months ended December 31, 2018 and return on
average equity was 7.71% for the three months ended
December 31, 2019 compared to 7.20% for the three months ended
December 31, 2018.
- Net interest margin decreased six
basis points to 3.16% for the quarter ended December 31, 2019
from 3.22% for the quarter ended December 31, 2018.
Contributing to the decrease in net interest margin was higher
interest expense on deposits.
- The efficiency ratio, which is
calculated by dividing non-interest expense by the sum of net
interest income and non-interest income, was 64.50% for the quarter
ended December 31, 2019 as compared to 62.51% for the quarter
ended December 31, 2018.
- Non-performing assets represented
0.52% of total assets at December 31, 2019 compared with 0.71%
at December 31, 2018. The allowance for loan losses as a
percentage of total non-performing loans was 184.11% at
December 31, 2019 compared to 136.83% at December 31,
2018.
- The Company’s balance sheet at
December 31, 2019 reflected an increase in total assets of
$8.6 million compared to December 31, 2018, due to increases
in interest earning demand deposits with banks and net loans
receivable.
- The effective tax rate decreased to
26.2% for the quarter ended December 31, 2019 compared to
28.1% for the quarter ended December 31, 2018. The
decrease in tax rate was due to the BOLI death benefit received
during the fourth quarter.
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| Selected Financial
Ratios |
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| (unaudited; annualized
where applicable) |
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As of or for the quarter ended: |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
| Return on average assets |
|
0.86 |
% |
|
0.77 |
% |
|
0.85 |
% |
|
0.36 |
% |
|
0.87 |
% |
| Return on average equity |
|
7.71 |
% |
|
6.79 |
% |
|
7.28 |
% |
|
3.05 |
% |
|
7.20 |
% |
| Net interest margin |
|
3.16 |
% |
|
3.12 |
% |
|
3.21 |
% |
|
3.19 |
% |
|
3.22 |
% |
| Net loans / deposit ratio |
|
107.46 |
% |
|
106.56 |
% |
|
118.62 |
% |
|
113.10 |
% |
|
119.43 |
% |
| Shareholders' equity / total
assets |
|
11.02 |
% |
|
10.86 |
% |
|
11.42 |
% |
|
11.77 |
% |
|
11.40 |
% |
| Efficiency ratio |
|
64.50 |
% |
|
64.30 |
% |
|
62.97 |
% |
|
83.83 |
% |
|
62.51 |
% |
|
Book value per common share |
|
$ |
12.61 |
|
|
$ |
12.35 |
|
|
$ |
12.64 |
|
|
$ |
12.46 |
|
|
$ |
12.37 |
|
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Net Interest Income
Total interest income for the three months ended
December 31, 2019 increased $98,000 to $6.1 million, compared
to $6.0 million for the same three month period in 2018.
Interest income increased in the quarter ended December 31,
2019 compared to the comparable period in 2018, as a result of a
mixture of higher loan volume and interest rate increases year over
year. Total interest expense increased by $167,000, or 10.8%, to
$1.7 million, for the three months ended December 31, 2019
compared to $1.5 million for the same period in 2018 due to
increases in interest rates and deposit volume partially offset by
a lower volume of borrowings during the 2019 period.
Net interest income for the three months ended
December 31, 2019 decreased $69,000, or 1.55% to $4.4 million,
compared to $4.5 million for the same three month period in
2018. The change for the three months ended December 31,
2019 was primarily the result of higher interest expense on
deposits. The annualized net interest spread was 2.92% and
2.98% for the three months ended December 31, 2019 and 2018,
respectively. For the quarter ended December 31, 2019, the
Company's annualized net interest margin decreased to 3.16%
compared to 3.22% for the corresponding three-month period in
2018.
Total interest income for the twelve months
ended December 31, 2019, increased $1.3 million, or 5.18%, to
$24.6 million compared to $23.3 million for the twelve months ended
December 31, 2018, as average earning assets increased $7.8
million year over year. In addition, the average interest
earned on such assets increased 16 basis points. Total
interest expense increased by $1.6 million, or 29.49%, to $7.0
million for the year ended December 31, 2019, compared to the
2018 year ended, as average interest bearing liabilities increased
$5.7 million year over year and the average cost of such
liabilities increased 33 basis points.
Net interest income decreased $382,000, or 2.1%,
to $17.6 million for the twelve months ended December 31,
2019, compared to $17.9 million for the twelve months ended
December 31, 2018. Net interest spread and net interest
margin for the twelve months ended December 31, 2019,
decreased 17 and 11 basis points, respectively, to 2.91% and 3.17%,
compared to 3.08% and 3.28% for the twelve months ended
December 31, 2018. Net interest income and net interest
margin decreased as the Company's deposit pricing became more
competitive year over year.
Provision for Loan Losses
The loan loss provision for the three months
ended December 31, 2019 and 2018 was zero. The loan loss
provision for the twelve months ended December 31, 2019 was
zero compared to $240,000 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
December 31, 2019 was $381,000, as compared to $198,000 for
the same period in 2018. Non-interest income increased primarily
due to a $171,000 death benefit recorded during the quarter.
Non-interest expense, which consists of salaries and employee
benefits, occupancy expense, professional services and other
non-interest expenses totaled $3.1 million for the quarter ended
December 31, 2019 compared to $2.9 million the same period in
2018.
Non-interest income for the twelve months ended
December 31, 2019 was $974,000, as compared to $800,000 for
the same period in 2018. Non-interest income increased primarily
due to a $171,000 BOLI death benefit recorded during the fourth
quarter. Non-interest expense totaled $12.8 million for the
twelve months ended December 31, 2019, as compared to $11.9
million for the same period in 2018. The increase in
non-interest expense was primarily related to an increase in
professional services expense.
Taxes
For the three months ended December 31,
2019, the Company recorded a $443,000 tax provision compared to
$491,000 for the three months ended December 31, 2018. The
effective tax rate decreased to 26.2% for the quarter ended
December 31, 2019, compared to 28.1% for the quarter ended
December 31, 2018. The decrease in tax rate was due to the
BOLI death benefit received during the quarter.
For the twelve months ended December 31,
2019, the Company recorded a $1.7 million tax provision compared to
a provision of $1.8 million for the twelve months ended
December 31, 2018. The effective tax rate increased to 28.9%
for the twelve months ended December 31, 2019, compared to
27.2% for the twelve months ended December 31, 2018.
Quarterly Earnings Summary
The following table presents condensed
consolidated statements of income data for the periods
indicated.
| Condensed
Consolidated Statements of Income (unaudited) |
| |
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|
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| (dollars in thousands,
except for per share data) |
|
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| |
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For the quarter ended: |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
Net interest income |
|
$ |
4,390 |
|
|
$ |
4,341 |
|
|
$ |
4,411 |
|
|
$ |
4,423 |
|
|
$ |
4,459 |
|
| Provision for loan losses |
|
— |
|
|
— |
|
— |
|
— |
|
|
— |
|
| Net interest income after
provision for loan losses |
|
4,390 |
|
|
4,341 |
|
|
4,411 |
|
|
4,423 |
|
|
4,459 |
|
| Other income |
|
381 |
|
|
199 |
|
|
204 |
|
|
190 |
|
|
198 |
|
| Other expense |
|
3,077 |
|
|
2,919 |
|
|
2,906 |
|
|
3,867 |
|
|
2,911 |
|
| Income before income
taxes |
|
1,694 |
|
|
1,621 |
|
|
1,709 |
|
|
746 |
|
|
1,746 |
|
| Income taxes (benefit) |
|
443 |
|
|
505 |
|
|
487 |
|
|
232 |
|
|
491 |
|
| Net income |
|
$ |
1,251 |
|
|
$ |
1,116 |
|
|
$ |
1,222 |
|
|
$ |
514 |
|
|
$ |
1,255 |
|
| Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.25 |
|
|
$ |
0.22 |
|
|
$ |
0.24 |
|
|
$ |
0.10 |
|
|
$ |
0.24 |
|
| Diluted |
|
$ |
0.25 |
|
|
$ |
0.22 |
|
|
$ |
0.24 |
|
|
$ |
0.10 |
|
|
$ |
0.24 |
|
| Weighted average common shares
outstanding: |
|
|
|
|
|
|
|
|
|
|
| Basic |
|
5,015,438 |
|
|
5,046,935 |
|
|
5,126,938 |
|
|
5,198,432 |
|
|
5,276,116 |
|
| Diluted |
|
5,040,652 |
|
|
5,070,353 |
|
|
5,155,258 |
|
|
5,237,329 |
|
|
5,317,305 |
|
| |
|
|
|
|
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|
|
|
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|
Statement of Condition Highlights at December 31,
2019
- Total assets amounted to $593.1
million at December 31, 2019, an increase of $8.6 million, or
1.47%, compared to December 31, 2018.
- The Company’s total loans
receivable, excluding the ALLL, were $513.7 million at
December 31, 2019, an increase of $5.8 million, or 1.1%, from
December 31, 2018.
- Securities held to maturity were
$35.8 million at December 31, 2019, a decrease of $3.6
million, or 9.2% compared to December 31, 2018.
- Deposits increased $52.2 million,
or 12.41%, to $472.8 million at December 31, 2019 compared to
$420.6 million at December 31, 2018.
- Borrowings totaled $51.6 million at
December 31, 2019, a decrease of $42.7 million, or 45.29%,
compared to $94.3 million at December 31, 2018.
The following table presents condensed
consolidated statements of condition data as of the dates
indicated.
| Condensed
Consolidated Statements of Condition (unaudited) |
| |
|
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| (in
thousands) |
|
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| |
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At: |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
Cash and due from banks |
|
$ |
1,296 |
|
|
$ |
1,087 |
|
|
$ |
1,200 |
|
|
$ |
1,040 |
|
|
$ |
1,558 |
|
| Interest-earning demand
deposits with banks |
|
17,157 |
|
|
14,638 |
|
|
14,473 |
|
|
9,771 |
|
|
10,242 |
|
| Securities held to
maturity |
|
35,827 |
|
|
38,073 |
|
|
39,455 |
|
|
36,982 |
|
|
39,476 |
|
| Loans receivable, net of
allowance |
|
508,022 |
|
|
507,270 |
|
|
494,192 |
|
|
489,445 |
|
|
502,299 |
|
| Premises and equipment |
|
8,020 |
|
|
8,136 |
|
|
8,006 |
|
|
8,088 |
|
|
8,180 |
|
| Federal Home Loan Bank of New
York stock, at cost |
|
2,848 |
|
|
2,654 |
|
|
4,805 |
|
|
3,406 |
|
|
4,756 |
|
| Bank owned life insurance |
|
14,480 |
|
|
14,872 |
|
|
14,775 |
|
|
14,679 |
|
|
14,585 |
|
| Accrued interest
receivable |
|
1,650 |
|
|
1,687 |
|
|
1,715 |
|
|
1,772 |
|
|
1,615 |
|
| Other assets |
|
3,786 |
|
|
2,836 |
|
|
2,863 |
|
|
2,910 |
|
|
1,789 |
|
| Total assets |
|
$ |
593,086 |
|
|
$ |
591,253 |
|
|
$ |
581,484 |
|
|
$ |
568,093 |
|
|
$ |
584,500 |
|
| Deposits |
|
$ |
472,752 |
|
|
$ |
476,064 |
|
|
$ |
416,607 |
|
|
$ |
432,754 |
|
|
$ |
420,579 |
|
| Borrowings |
|
51,575 |
|
|
47,275 |
|
|
95,075 |
|
|
64,275 |
|
|
94,275 |
|
| Other liabilities |
|
3,384 |
|
|
3,694 |
|
|
3,423 |
|
|
4,172 |
|
|
3,000 |
|
| Stockholders' equity |
|
65,375 |
|
|
64,220 |
|
|
66,379 |
|
|
66,892 |
|
|
66,646 |
|
| Total liabilities and
stockholders' equity |
|
$ |
593,086 |
|
|
$ |
591,253 |
|
|
$ |
581,484 |
|
|
$ |
568,093 |
|
|
$ |
584,500 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
At December 31, 2019, the Company’s net
loan portfolio totaled $508.0 million, an increase of $5.7 million,
or 1.1%, compared to $502.3 million at December 31,
2018. The allowance for loan losses amounted to $5.7 million
at December 31, 2019 and December 31, 2018.
At December 31, 2019, the loan portfolio
primarily consisted of commercial real estate loans (42.9%) and
residential mortgages (29.0%). Commercial and industrial loans
represented 19.1% of the portfolio, while construction loans
accounted for 9.0% of the portfolio. Total gross loans receivable
increased $11.3 million to $530.4 million at December 31,
2019, compared to $519.1 million at December 31, 2018. The
increase primarily reflects an increase in commercial loans of
$25.3 million partially offset by a decrease of $13.9 million in
residential mortgages, as the Company continues to focus on
commercial lending.
The following table shows the composition of the
Company's loan portfolio as of the dates indicated.
| Loans
(unaudited) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
At quarter ended: |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
| Residential mortgage: |
|
|
|
|
|
|
|
|
|
|
|
One-to-four family |
|
$ |
130,966 |
|
|
$ |
135,657 |
|
|
$ |
139,119 |
|
|
$ |
140,043 |
|
|
$ |
143,391 |
|
| Home equity |
|
22,853 |
|
|
23,385 |
|
|
23,596 |
|
|
25,160 |
|
|
24,365 |
|
| Total residential
mortgage |
|
153,819 |
|
|
159,042 |
|
|
162,715 |
|
|
165,203 |
|
|
167,756 |
|
| Commercial and multi-family
real estate |
|
227,441 |
|
|
216,095 |
|
|
207,866 |
|
|
206,653 |
|
|
212,606 |
|
| Construction |
|
47,635 |
|
|
45,404 |
|
|
42,356 |
|
|
37,319 |
|
|
29,628 |
|
| Commercial and industrial -
Secured |
|
63,462 |
|
|
59,248 |
|
|
50,802 |
|
|
49,640 |
|
|
60,426 |
|
| Commercial and industrial -
Unsecured |
|
37,600 |
|
|
51,832 |
|
|
56,672 |
|
|
53,791 |
|
|
48,176 |
|
| Total commercial loans |
|
376,138 |
|
|
372,579 |
|
|
357,696 |
|
|
347,403 |
|
|
350,836 |
|
| Consumer loans |
|
432 |
|
|
411 |
|
|
425 |
|
|
470 |
|
|
540 |
|
| Total loans receivable |
|
530,389 |
|
|
532,032 |
|
|
520,836 |
|
|
513,076 |
|
|
519,132 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
| Loans in process |
|
16,109 |
|
|
18,598 |
|
|
20,447 |
|
|
17,443 |
|
|
10,677 |
|
| Deferred loan fees |
|
536 |
|
|
503 |
|
|
536 |
|
|
530 |
|
|
501 |
|
| Allowance |
|
5,722 |
|
|
5,661 |
|
|
5,661 |
|
|
5,658 |
|
|
5,655 |
|
| Total loans receivable,
net |
|
$ |
508,022 |
|
|
$ |
507,270 |
|
|
$ |
494,192 |
|
|
$ |
489,445 |
|
|
$ |
502,299 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
At December 31, 2019 and December 31,
2018, non-performing loans totaled $3.1 million and $4.1 million,
or 0.52% and 0.71% of total assets, respectively.
Nonperforming loans decreased significantly since year end 2018, as
four relationships were resolved, while one new relationship was
added during the year. Total delinquent loans (including
nonperforming delinquent loans) were $3.9 million at
December 31, 2019, a decrease of $2.4 million from
December 31, 2018. The allowance for loan losses as a
percentage of total loans was 1.11% at December 31, 2019 and
at December 31, 2018, respectively, while the allowance for
loan losses as a percentage of non-performing loans increased to
184.11% at December 31, 2019 from 136.83% at December 31,
2018. The ratio of non-performing loans to total loans was
0.60% at December 31, 2019 compared to 0.81% at
December 31, 2018.
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: |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
Non-accrual loans |
|
$ |
3,108 |
|
|
$ |
3,432 |
|
|
$ |
3,681 |
|
|
$ |
3,839 |
|
|
$ |
4,131 |
|
| Loans 90 days or more past due
and still accruing |
|
— |
|
|
— |
|
|
355 |
|
|
|
|
2 |
|
| Total non-performing
loans |
|
$ |
3,108 |
|
|
$ |
3,432 |
|
|
$ |
4,036 |
|
|
$ |
3,839 |
|
|
$ |
4,133 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-performing assets / total
assets |
|
0.52 |
% |
|
0.58 |
% |
|
0.69 |
% |
|
0.68 |
% |
|
0.71 |
% |
| Non-performing loans / total
loans |
|
0.60 |
% |
|
0.67 |
% |
|
0.81 |
% |
|
0.78 |
% |
|
0.81 |
% |
| Net charge-offs
(recoveries) |
|
$ |
(61 |
) |
|
— |
|
|
(4 |
) |
|
(3 |
) |
|
— |
| Net charge-offs (recoveries) /
average loans (annualized) |
|
(0.05 |
)% |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
| Allowance for loan loss /
total loans |
|
1.11 |
% |
|
1.10 |
% |
|
1.13 |
% |
|
1.14 |
% |
|
1.11 |
% |
| Allowance for loan losses /
non-performing loans |
|
184.11 |
% |
|
164.95 |
% |
|
140.26 |
% |
|
147.38 |
% |
|
136.83 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
593,086 |
|
|
$ |
591,253 |
|
|
$ |
581,484 |
|
|
$ |
568,093 |
|
|
$ |
584,500 |
|
| Gross loans, excluding
ALLL |
|
$ |
513,744 |
|
|
$ |
512,931 |
|
|
$ |
499,853 |
|
|
$ |
495,103 |
|
|
$ |
507,954 |
|
| Average loans |
|
$ |
505,126 |
|
|
$ |
502,632 |
|
|
$ |
498,799 |
|
|
$ |
502,149 |
|
|
$ |
499,368 |
|
| Allowance for loan losses |
|
$ |
5,722 |
|
|
$ |
5,661 |
|
|
$ |
5,661 |
|
|
$ |
5,658 |
|
|
$ |
5,655 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
Total deposits increased to $472.8 million at
December 31, 2019, from $420.6 million compared to
December 31, 2018. Certificates of deposit and interest
bearing deposits increased $35.3 million and $7.8 million,
respectively. Certificates of deposit increased to $156.2
million as compared to $120.9 million at December 31, 2018,
while interest bearing deposits increased to $141.9 million as
compared to $134.1 million at December 31, 2018. In
addition, money market deposits increased $11.5 million to $27.7
million as compared to $16.2 million at December 31,
2018. Offsetting the increases was a decrease in savings
deposits of $3.7 million. Savings deposits decreased to $99.0
million at December 31, 2019, compared to $102.7 million 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: |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
| Demand: |
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing |
|
$ |
47,935 |
|
|
$ |
47,026 |
|
|
$ |
49,799 |
|
|
$ |
49,429 |
|
|
$ |
46,690 |
|
| Interest-bearing |
|
141,935 |
|
|
151,662 |
|
|
101,678 |
|
|
123,420 |
|
|
134,123 |
|
| Savings |
|
99,036 |
|
|
97,787 |
|
|
97,898 |
|
|
103,109 |
|
|
102,740 |
|
| Money market |
|
27,692 |
|
|
17,770 |
|
|
18,780 |
|
|
17,182 |
|
|
16,171 |
|
| Time |
|
156,154 |
|
|
161,819 |
|
|
148,452 |
|
|
139,614 |
|
|
120,855 |
|
| Total deposits |
|
$ |
472,752 |
|
|
$ |
476,064 |
|
|
$ |
416,607 |
|
|
$ |
432,754 |
|
|
$ |
420,579 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
At December 31, 2019, the Company's total
stockholders' equity amounted to $65.4 million, or 11.02% of total
assets, compared to $66.6 million at December 31, 2018.
The Company’s book value per common share was $12.61 at
December 31, 2019, compared to $12.37 at December 31,
2018. The decrease in stockholders' equity was primarily due
to the repurchase of 199,202 shares for a total of $3.3
million and the declaration of a $2.6 million dividend, with the
remaining difference related to ESOP, restricted stock and stock
option accounting activity, partially offset by net income of $4.1
million from the period.
At December 31, 2019, the Bank’s common
equity tier 1 ratio was 11.43%, tier 1 leverage ratio was 10.70%,
tier 1 capital ratio was 11.43% and the total capital ratio was
12.51%. 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 December 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: |
|
12/31/2019 |
|
9/30/2019 |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
Loans |
|
$ |
505,126 |
|
|
$ |
502,632 |
|
|
$ |
498,799 |
|
|
$ |
502,149 |
|
|
$ |
499,368 |
|
| Securities held to
maturity |
|
37,262 |
|
|
39,181 |
|
|
36,796 |
|
|
37,899 |
|
|
41,460 |
|
| Allowance for loan losses |
|
(5,704 |
) |
|
(5,661 |
) |
|
(5,659 |
) |
|
(5,656 |
) |
|
(5,686 |
) |
| All other assets |
|
42,454 |
|
|
43,039 |
|
|
42,671 |
|
|
42,778 |
|
|
41,211 |
|
| Total assets |
|
$ |
579,138 |
|
|
$ |
579,191 |
|
|
$ |
572,607 |
|
|
$ |
577,170 |
|
|
$ |
576,353 |
|
| Non-interest bearing
deposits |
|
$ |
45,737 |
|
|
$ |
46,373 |
|
|
$ |
49,861 |
|
|
$ |
46,962 |
|
|
$ |
48,172 |
|
| Interest-bearing deposits |
|
429,413 |
|
|
381,262 |
|
|
368,679 |
|
|
367,434 |
|
|
372,474 |
|
| Borrowings |
|
35,969 |
|
|
81,863 |
|
|
83,814 |
|
|
92,780 |
|
|
83,440 |
|
| Other liabilities |
|
3,132 |
|
|
3,921 |
|
|
3,087 |
|
|
2,623 |
|
|
2,585 |
|
| Stockholders' Equity |
|
64,887 |
|
|
65,772 |
|
|
67,166 |
|
|
67,371 |
|
|
69,682 |
|
| Total liabilities and
shareholders' equity |
|
$ |
579,138 |
|
|
$ |
579,191 |
|
|
$ |
572,607 |
|
|
$ |
577,170 |
|
|
$ |
576,353 |
|
| |
|
|
|
|
|
|
|
|
|
|
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 at a 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:
| |
Twelve months endedDecember 31, |
| |
2019 |
|
2018 |
| (dollars in thousands) |
|
|
|
|
Net income |
$ |
4,103 |
|
|
$ |
4,835 |
|
| 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 |
$ |
4,698 |
|
|
$ |
4,835 |
|
| |
Twelve Months Ended December 31, |
| (In Thousands, Except Per
Share Data) |
2019 |
|
2018 |
|
Numerator: |
|
|
|
|
Net income |
$ |
4,698 |
|
|
$ |
4,835 |
|
| |
|
|
|
|
Denominator: |
|
|
|
| Weighted average common
shares |
5,096 |
|
|
5,351 |
|
| Dilutive potential common
shares |
31 |
|
|
49 |
|
|
Weighted average fully diluted shares |
5,127 |
|
|
5,400 |
|
| |
|
|
|
| Earnings per share: |
|
|
|
|
Dilutive |
$ |
0.92 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
Forward Looking Statement Disclaimer
This release may contain forward-looking
statements. Such forward-looking statements are subject to risks
and uncertainties which may cause actual results to differ
materially from those currently anticipated due to a number of
factor. . Factors that may cause actual results to differ from
those contemplated include our ability to reduce interest rates on
deposits; our ability to reduce our funding costs; our ability to
continue to use funding sources like short-term brokered deposits;
our ability to reduce our nonperforming loans; 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; our continued ability to successfully
remediate our identified internal control weaknesses; and our
ability to control expenses. Therefore, readers should not place
undue reliance on any forward-looking statements. MSB Financial
Corp. does not undertake, and specifically disclaims, any
obligations to publicly release the results of any revisions that
may be made to any forward-looking statements to reflect the
occurrence of anticipated or unanticipated events or circumstances
after the date of such circumstance.
| Contact: |
Michael A. Shriner, President
& CEO |
|
| (908) 647-4000 |
|
| |
mshriner@millingtonbank.com |
|
| |
|
|
| |
|
|
|
|
|
|
|
MSB Financial Corp. and Subsidiaries |
| |
|
Consolidated Statements of Financial
Condition |
| |
At December 31, 2019 |
At December 31, 2018 |
| (Dollars in thousands, except
per share amounts) |
|
|
|
Cash and due from banks |
$ |
1,296 |
|
$ |
1,558 |
|
|
Interest-earning demand deposits with banks |
17,157 |
|
10,242 |
|
|
Cash and Cash Equivalents |
18,453 |
|
11,800 |
|
|
Securities held to maturity (fair value of $35,696 and $38,569,
respectively) |
35,827 |
|
39,476 |
|
|
Loans receivable, net of allowance for loan losses of $5,722 and
$5,655, respectively |
508,022 |
|
502,299 |
|
|
Premises and equipment |
8,020 |
|
8,180 |
|
|
Federal Home Loan Bank of New York stock, at cost |
2,848 |
|
4,756 |
|
|
Bank owned life insurance |
14,480 |
|
14,585 |
|
|
Accrued interest receivable |
1,650 |
|
1,615 |
|
|
Other assets |
3,786 |
|
1,789 |
|
|
Total Assets |
$ |
593,086 |
|
$ |
584,500 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
Liabilities |
|
|
|
Deposits: |
|
|
|
Non-interest bearing |
$ |
47,935 |
|
$ |
46,690 |
|
|
Interest bearing |
424,817 |
|
373,889 |
|
|
Total Deposits |
472,752 |
|
420,579 |
|
|
Advances from Federal Home Loan Bank of New York |
51,575 |
|
94,275 |
|
|
Advance payments by borrowers for taxes and insurance |
722 |
|
749 |
|
|
Other liabilities |
2,662 |
|
2,251 |
|
|
Total Liabilities |
527,711 |
|
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;
5,184,914 and 5,389,054 issued and outstanding at December 31, 2019
and December 31, 2018, respectively |
52 |
|
54 |
|
|
Paid-in capital |
41,857 |
|
44,726 |
|
|
Retained earnings |
24,989 |
|
23,498 |
|
|
Unearned common stock held by ESOP (168.568 and 179,464 shares,
respectively) |
(1,523 |
) |
(1,632 |
) |
|
Total Stockholders' Equity |
65,375 |
|
66,646 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
593,086 |
|
$ |
584,500 |
|
|
|
|
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSB Financial Corp. and Subsidiaries |
| |
|
Consolidated Statements of Income |
| |
|
Three months endedDecember 31, |
|
Twelve months endedDecember 31, |
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| (in thousands except
per share amounts) |
|
|
|
|
|
|
|
|
| Interest
Income |
|
|
|
|
|
|
|
|
|
Loans receivable, including fees |
|
$ |
5,753 |
|
|
$ |
5,600 |
|
|
$ |
23,007 |
|
|
$ |
21,960 |
|
|
Securities held to maturity |
|
240 |
|
|
302 |
|
|
1,064 |
|
|
1,065 |
|
|
Other |
|
108 |
|
|
101 |
|
|
484 |
|
|
320 |
|
|
Total Interest Income |
|
6,101 |
|
|
6,003 |
|
|
24,555 |
|
|
23,345 |
|
| Interest
Expense |
|
|
|
|
|
|
|
|
|
Deposits |
|
1,532 |
|
|
1,039 |
|
|
5,282 |
|
|
3,834 |
|
|
Borrowings |
|
179 |
|
|
505 |
|
|
1,708 |
|
|
1,564 |
|
|
Total Interest Expense |
|
1,711 |
|
|
1,544 |
|
|
6,990 |
|
|
5,398 |
|
|
Net Interest Income |
|
4,390 |
|
|
4,459 |
|
|
17,565 |
|
|
17,947 |
|
| Provision for Loan
Losses |
|
— |
|
|
— |
|
|
— |
|
|
240 |
|
|
Net Interest Income after Provision for Loan
Losses |
|
4,390 |
|
|
4,459 |
|
|
17,565 |
|
|
17,707 |
|
| Non-Interest
Income |
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
100 |
|
|
82 |
|
|
346 |
|
|
334 |
|
|
Income from bank owned life insurance |
|
267 |
|
|
96 |
|
|
554 |
|
|
388 |
|
|
Other |
|
14 |
|
|
20 |
|
|
74 |
|
|
78 |
|
|
Total Non-Interest Income |
|
381 |
|
|
198 |
|
|
974 |
|
|
800 |
|
| Non-Interest
Expenses |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
1,781 |
|
|
1,566 |
|
|
6,769 |
|
|
6,673 |
|
|
Directors compensation |
|
133 |
|
|
125 |
|
|
524 |
|
|
490 |
|
|
Occupancy and equipment |
|
386 |
|
|
392 |
|
|
1,534 |
|
|
1,564 |
|
|
Service bureau fees |
|
209 |
|
|
96 |
|
|
575 |
|
|
347 |
|
|
Advertising |
|
2 |
|
|
2 |
|
|
21 |
|
|
33 |
|
|
FDIC assessment |
|
12 |
|
|
17 |
|
|
100 |
|
|
211 |
|
|
Professional services |
|
346 |
|
|
513 |
|
|
2,415 |
|
|
1,730 |
|
|
Other |
|
208 |
|
|
200 |
|
|
831 |
|
|
813 |
|
|
Total Non-Interest Expenses |
|
3,077 |
|
|
2,911 |
|
|
12,769 |
|
|
11,861 |
|
| Income before Income
Taxes |
|
1,694 |
|
|
1,746 |
|
|
5,770 |
|
|
6,646 |
|
|
Income Tax Expense |
|
443 |
|
|
491 |
|
|
1,667 |
|
|
1,811 |
|
| Net
Income |
|
$ |
1,251 |
|
|
$ |
1,255 |
|
|
$ |
4,103 |
|
|
$ |
4,835 |
|
| Earnings per
share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.25 |
|
|
$ |
0.24 |
|
|
$ |
0.81 |
|
|
$ |
0.90 |
|
|
Diluted |
|
$ |
0.25 |
|
|
$ |
0.24 |
|
|
$ |
0.80 |
|
|
$ |
0.90 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
12/31/2019 |
|
9/30/2019 |
|
12/31/2018 |
|
(unaudited) |
|
|
|
|
|
|
Statements of Operations Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
6,101 |
|
|
$ |
6,179 |
|
|
$ |
6,003 |
|
|
Interest expense |
1,711 |
|
|
1,838 |
|
|
1,544 |
|
|
Net interest income |
4,390 |
|
|
4,341 |
|
|
4,459 |
|
|
Provision for loan losses |
— |
|
|
— |
|
|
— |
|
|
Net interest income after provision for loan losses |
4,390 |
|
|
4,341 |
|
|
4,459 |
|
|
Other income |
381 |
|
|
199 |
|
|
198 |
|
|
Other expense |
3,077 |
|
|
2,919 |
|
|
2,911 |
|
|
Income before income taxes |
1,694 |
|
|
1,621 |
|
|
1,746 |
|
|
Income tax expense (benefit) |
443 |
|
|
505 |
|
|
491 |
|
|
Net Income |
$ |
1,251 |
|
|
$ |
1,116 |
|
|
$ |
1,255 |
|
|
Earnings (per Common Share) |
|
|
|
|
|
|
Basic |
$ |
0.25 |
|
|
$ |
0.22 |
|
|
$ |
0.24 |
|
|
Diluted |
$ |
0.25 |
|
|
$ |
0.22 |
|
|
$ |
0.24 |
|
|
Statements of Condition Data (Period-End) |
|
|
|
|
|
|
Investment securities held to maturity (fair value of $35,696,
$37,846, and $38,569) |
$ |
35,827 |
|
|
$ |
38,073 |
|
|
$ |
39,476 |
|
|
Loans receivable, net of allowance for loan losses |
508,022 |
|
|
507,270 |
|
|
502,299 |
|
|
Total assets |
593,086 |
|
|
591,253 |
|
|
584,500 |
|
|
Deposits |
472,752 |
|
|
476,064 |
|
|
420,579 |
|
|
Borrowings |
51,575 |
|
|
47,275 |
|
|
94,275 |
|
|
Stockholders' equity |
65,375 |
|
|
64,220 |
|
|
66,646 |
|
|
Common Shares Dividend Data |
|
|
|
|
|
|
Cash dividends |
$ |
— |
|
|
$ |
2,612 |
|
|
$ |
2,522 |
|
|
Weighted Average Common Shares Outstanding |
|
|
|
|
|
|
Basic |
5,015,438 |
|
|
5,046,935 |
|
|
5,276,116 |
|
|
Diluted |
5,040,652 |
|
|
5,070,353 |
|
|
5,317,305 |
|
|
Operating Ratios |
|
|
|
|
|
|
Return on average assets |
0.86 |
% |
|
0.77 |
% |
|
0.87 |
% |
|
Return on average equity |
7.71 |
% |
|
6.79 |
% |
|
7.20 |
% |
|
Average equity / average assets |
11.20 |
% |
|
11.36 |
% |
|
12.09 |
% |
|
Book value per common share (period-end) |
$ |
12.61 |
|
|
$ |
12.35 |
|
|
$ |
12.37 |
|
MSB Financial (NASDAQ:MSBF)
과거 데이터 주식 차트
부터 12월(12) 2024 으로 1월(1) 2025
MSB Financial (NASDAQ:MSBF)
과거 데이터 주식 차트
부터 1월(1) 2024 으로 1월(1) 2025
