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): July 16, 1997
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: (219) 255-3146
Item 5. Other Events.
Pursuant to General Instruction F to Form 8-K, the press release issued
July 16, 1997 concerning the Third Quarter Earnings and Quarterly 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 July 16, 1997.
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.
_______________________________________
Timothy C. Boenne, Vice President
Dated: July 21, 1997
July 16, 1997 Point of Contact: Charles J. Viater
MFB Corp. ANNOUNCES THIRD QUARTER EARNINGS AND QUARTERLY DIVIDEND
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),
(the "Corporation"), parent company of MFB Financial (the "Bank"), today
reported consolidated net income of $508,000 or $.30 per share for
the three months ended June 30, 1997, compared to $424,000 or $.22 per
share for the three months ended June 30, 1996, an increase of 19.8%
Net income for the nine months ended June 30, 1997 was $1,506,000 compared
to $1,172,000 for the nine months ended June 30, 1996, an increase of 28.5%.
Net interest income after provision for loan losses for
the most recent three and nine month periods totaled $1.89 million and
$5.49 million respectively compared to $1.57 million and $4.41 million for
the same periods one year ago. During the three months ended June 30, 1997
total interest income increased by $878,000 compared to the same period one
year ago primarily as a result of a $40.2 million increase in first mortgage
loan receivables and a $7.7 million increase in consumer loan receivables.
Total interest expense increased $562,000 reflecting the growth in savings
account deposits and borrowed funds. For the nine months ended June 30, 1997
total interest income increased $2.6 million while total interest expense
increased $1.6 million.
Noninterest income increased from $91,000 for the three
months ended June 30, 1996 to $108,000 for the three months ended June 30,
1997 while there was no significant change for the comparable nine month
periods ending June 30. Noninterest expense increased from $963,000 during
the three months ended June 30, 1996 to $1.2 million during the three months
ended June 30, 1997, and from $2.8 million to $3.3 million for the comparable
nine month periods ending June 30. These noninterest expense increases are
primarily related to increased compensation expenses, expenses related to
the Bank's name change which took effect November 1, 1996, and expenses
incurred with the opening of a new full service branch facility on June 6,
1997.
The Corporation has increased total assets from $225.8
million as of September 30, 1996 to $248.2 million as of June 30, 1997, an
increase of $22.4 million (or 9.9%). "Asset growth allows us to better
leverage our capital position and enhance shareholder value," according to
Charles J. Viater, President and CEO of the company. "Loan demand continues
to be strong," he added. Total net loans have increased from $152.1 million
at September 30, 1996 to $186.6 million at June 30, 1997, an increase of
$34.5 million (or 22.7%). The loan growth has been funded primarily by the
growth in total savings deposits, the decrease in securities available for
sale, and additional borrowings through Federal Home Loan Bank advances.
Total shareholders' equity decreased from $37.6 million
as of September 30, 1996 to $33.9 million as of June 30, 1997 mainly as a
result of the Corporation's repurchase of 287,263 shares of outstanding
common stock during this period at a cost of $5.4 million, partially offset
by $1.5 million in net income for the same period.
While achieving substantial growth, the Corporation
continues to maintain asset quality that compares favorably to its industry
peer group. The ratio of nonperforming assets to total assets as of June 30,
1997 was .08% compared to .06% as of June 30, 1996.
In addition, MFB Corp. announced today that the
Corporation has declared a cash dividend of $ .08 on each share of its
Common Stock for the quarter ended June 30, 1997. The dividend is payable on
August 12, 1997 to holders of record on July 29, 1997.
The Bank is a wholly owned subsidiary of MFB Corp.
providing retail and small business financial services to the
South Bend/Mishawaka area through its main office in Mishawaka and three
branch locations, and to Elkhart County with the opening of a new full
service banking facility in the Wal-Mart Supercenter in Goshen, Indiana.
MFB CORP. AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
June 30, 1997 and September 30, 1996
(in thousands)
June 30, September 30,
1997 1996
ASSETS
Cash and due from financial institutions $ 2,697 $ 1,734
Interest-earning deposits in other financial
institutions --- ---
Cash and cash equivalents 2,697 1,734
Interest-earning time deposits in other
financial institutions --- 495
Securities available-for-sale 53,227 66,763
Federal Home Loan Bank stock 2,187 1,336
Total loans 187,001 152,392
Less allowance for loan losses (363) (340)
Loans receivable, net 186,638 152,052
Accrued interest receivable 836 818
Premises and equipment, net 2,521 1,969
Other assets 135 642
Total Assets $248,241 $225,809
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits $167,517 $158,965
Securities sold under agreements to repurchase 184 ---
Advances from borrowers for taxes and insurance 814 1,864
FHLB advances 43,735 24,500
Accrued expenses and other liabilities 2,100 2,881
Total Liabilities 214,350 188,210
Shareholders' Equity
Common Stock 13,116 18,317
Retained earnings 21,676 20,589
Employee stock ownership plan (722) (894)
Recognition and retention plans (135) (193)
Net unrealized depreciation on securities
available-for sale, net of tax (44) (220)
Total shareholders' equity 33,891 37,599
Total Liabilities and Shareholders' Equities $248,241 $225,809
MFB CORP. AND SUBSIDIARY
Consolidated Statement of Income (Unaudited)
Three Months and Nine Months Ended June 30, 1997 and 1996
(in thousands)
Three Months Ended Nine Months Ended
June 30, June 30,
1997 1996 1997 1996
Total interest income $4,511 $3,633 $12,888 $10,248
Total interest expense 2,612 2,050 7,378 5,816
Net interest income 1,899 1,583 5,510 4,432
Provision for loan losses 7 8 22 23
Net interest income after provision
for loan losses 1,892 1,575 5,488 4,409
Total non-interest income 108 91 306 295
Total non-interest expense 1,156 963 3,295 2,758
Income before income taxes 844 703 2,499 1,946
Income tax expense 336 279 993 774
Net Income $508 $424 $1,506 $1,172
Earnings per common and
common equivalent share $ .30 $ .22 $ .86 $ .60
Earnings per share assuming
full dilution $ .30 $ .22 $ .86 $ .60
