UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD
FROM ____________________ TO ____________________
Commission file number: 0-23374
MFB CORP.
(Exact name of registrant as specified in its charter)
Indiana 35-1907258
State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification Number)
121 South Church Street
P.O. Box 528
Mishawaka, Indiana 46546
(Address of principal executive offices,
including Zip Code)
(219) 255-3146
(Registrant's telephone number, including area code)
None
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
(1) Yes X No
(2) Yes X No
The number of shares of the registrant's common stock, without
par value, outstanding as of December 31, 1996 was 1,776,517.
MFB CORP. AND SUBSIDIARY
FORM 10-Q
INDEX
Page No.
Part I. Financial Information 2
Item 1. Financial Statements 2
Consolidated Balance Sheets, (Unaudited)
December 31, 1996 and September 30, 1996 2
Consolidated Statements of Income, (Unaudited)
Three months ended December 31, 1996 and 1995 3
Consolidated Statements of Changes in Shareholders' Equity,
(Unaudited) Three months ended December 31, 1996 and 1995 4
Consolidated Statements of Cash Flows, (Unaudited)
Three months ended December 31, 1996 and 1995 5
Notes to Unaudited Consolidated Financial Statements
December 31, 1996 7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 8
Part II. Other Information 12
Items 1-6. 12
Signatures 13
MFB CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31, 1996 and September 30, 1996
(In thousands)
December 31, September 30,
1996 1996
ASSETS
Cash and due from financial institutions $ 2,080 $ 1,734
Interest-earning deposits in
other financial institutions -short term --- ---
Cash and cash equivalents 2,080 1,734
Interest-earning time deposits in other
financial institutions 198 495
Securities available-for-sale 51,457 66,763
Federal Home Loan Bank (FHLB) Stock (at cost) 1,336 1,336
Total loans 166,137 152,392
Less allowance for loan losses (348) (340)
Loans receivable, net 165,789 152,052
Accrued interest receivable 672 818
Premises and equipment, net 2,228 1,969
Other assets 185 642
Total assets $ 223,945 $ 225,809
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Noninterest-bearing demand deposits $ 1,065 $ 1,942
Savings, NOW and MMDA deposits 36,698 34,780
Other time deposits 123,814 122,243
Total Deposits $161,577 $158,965
Advances from borrowers for taxes and insurance 881 1,864
FHLB advances 25,000 24,500
Accrued expenses and other liabilities 2,015 2,881
Total liabilities $ 189,473 $ 188,210
Shareholders' equity
Common stock 14,644 18,317
Retained earnings, substantially restricted 20,922 20,589
Unearned Employee Stock Ownership Plan (ESOP)Shares (844) (894)
Unearned Recognition and Retention Plan(RRP) Shares (173) (193)
Net unrealized depreciation on securities
available for sale, net of tax ( 77) (220)
Total shareholders' equity 34,472 37,999
Total liabilities and shareholders' equity $ 223,945 $ 225,809
See accompanying notes to (unaudited) consolidated financial statements.
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three months ended December 31, 1996 and 1995
(In thousands)
Three Months Ended
December 31,
1996 1995
Interest income
Loans receivable
First mortgage loans $ 2,957 $ 2,330
Consumer and other loans 104 15
Financing leases and commercial loans 61 12
Securities - taxable 949 744
Other interest-earning assets 36 114
4,107 3,215
Interest expense
Deposits 2,008 1,832
FHLB advances 331 2
2,339 1,834
Net interest income 1,768 1,381
Provision for loan losses 7 8
Net interest income after provision for loan losses 1,761 1,373
Noninterest income
Insurance commissions 37 33
Net realized gains from sales of securities
available for sale 4 --
Other 72 50
Total noninterest income 113 83
Noninterest expense
Salaries and employee benefits 606 500
Occupancy and equipment expense 125 101
SAIF deposit insurance premium 89 82
Other expense 264 188
Total noninterest expense 1,084 871
Income before income taxes 790 585
Income tax expense 314 233
Net income $ 476 $ 352
Earnings per common and common equivalent
share (Note 2) $ 0.26 $ 0.17
Earnings per share-assuming full dilution $ 0.26 $ 0.17
(Note 2)
See accompanying notes to (unaudited) consolidated financial statements.
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(UNAUDITED)
Three months ended December 31, 1996 and 1995
(In thousands)
Net Unrealized
Depreciation
on Total
Unearned Unearned Securities Share-
Common Retained ESOP RRP Available Holders'
Stock Earnings shares shares For Sale Equity
Three months ended
December 31, 1995
Balance-10-1-95 $ 19,657 $ 19,732 $(1,100) $ (290) $ - $ 37,999
Contribution to
fund ESOP 50 50
Market adjustment
of ESOP shares 32 32
Amortization of
RRP contribution 45 45
Change in securities
classification
to available for
sale (Note 1) 119 119
Net change in
unrealized appreciation
on securities
available for sale 97 97
Net income for
the three months ended
December 31, 1995 352 352
Balance at
December 31, 1995 $ 19,689 $ 20,084 $(1,050) $ (245) $ 216 $ 38,694
Three months ended
December 31, 1996
Balance-10-1-96 $ 18,316 $ 20,589 $ ( 894) $(192) $ ( 220) $ 37,599
Effect of
contribution to
fund ESOP 50 50
Market adjustment
of ESOP shares
committed to
be released 37 37
Amortization of
RRP contribution 19 19
Issuance of 2500
shares of common
stock-exercise of
stock option 25 25
Purchase and
retirement of
199,963 shares of
common stock (3,734) (3,734)
Cash dividends
declared -$.08/share (143) (143)
Net change in unrealized
appreciation on securities
available-for-sale,
net of tax 143 143
Net income for
the three months
ended December 31, 1996 476 476
Balance at
December 31,1996 $14,644 $ 20,922 $ (844) $ (173) $ ( 77) $ 34,472
See accompanying notes to (unaudited ) consolidated financial statements.
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three months ended December 31, 1996 and 1995
(In thousands)
Three Months Ended
December 31,
1996 1995
Cash flows from operating activities
Net income $ 476 $ 352
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization, net of accretion 191 82
Amortization of RRP contribution 19 45
Provision for loan losses 7 8
Market adjustment of ESOP shares 37 32
ESOP expense 50 50
Net realized gains from sales of securities
available for sale ( 4) -
Net change in:
Accrued interest receivable 146 34
Other assets 369 322
Accrued expenses and other liabilities (865) (1,849)
Total adjustments (50) (1,276)
Net cash provided by operating activities 426 (937)
Cash Flows from investing activities
Net change in loans receivable (13,744) (5,554)
Purchase of:
Securities available-for-sale (7,461) (3,665)
Premises and equipment, net (301) (19)
Proceeds from:
Maturities of securities available for sale 10,300 350
Maturities of securities held to maturity - 4,300
Principal payments of mortgage-backed and
related securities 433 359
Sales of securities available for sale 12,119 -
Net change in interest-bearing time deposits
in other financial institutions 297 197
Net cash used in investing activities 1,643 (4,032)
(Continued)
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
Three months ended December 31, 1996 and 1995
(In thousands)
Three Months Ended
December 31,
1996 1995
Cash flows from financing activities
Net change in deposits 2,612 440
Net change in advances from borrowers
for taxes and insurance (983) (766)
Proceeds from stock option exercise 25 -
Purchase of MFB Corp. common stock (3,734) -
Net proceeds from Federal Home Loan Bank advances 500 1,500
Cash dividends paid (143) -
Net cash provided by(used in)financing activities (1,723) 1,174
Net change in cash and cash equivalents 346 (3,782)
Cash and cash equivalents at beginning of period $ 1,734 $ 7,454
Cash and cash equivalents at end of period $ 2,080 $ 3,672
Supplemental disclosures of cash flow information
Cash paid during the period for
Interest on deposits $ 2,327 $ 1,830
Income taxes 44 25
Supplemental schedule of non-cash investing activities
Transfer from:
Securities held-to-maturity
to securities available-for-sale $ -- $36,281,49
Mortgage-backed and related securities
held-to-maturity to mortgage-backed and
related securities available-for-sale $ -- $11,616,526
See accompanying notes to (unaudited) consolidated financial statements
MFB CORP. AND SUBSIDIARY
NOTES TO (UNAUDITED) CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1996
NOTE 1 - BASIS OF PRESENTATION AND ACCOUNTING POLICIES
Nature of Operations: MFB Corp. is an Indiana corporation
organized in December, 1993, to become a unitary savings and
loan holding company. MFB Corp. became a unitary savings and
loan holding company upon the conversion of Mishawaka Federal
Savings (the "Bank") from a federal mutual savings and loan
association to a federal stock savings bank in March, 1994. On
November 1, 1996, the Bank officially changed its name to MFB
Financial. MFB Corp. is the sole shareholder of the Bank. MFB
Corp. and the Bank (collectively referred to as the "Company")
conduct business from their main office in Mishawaka, Indiana
and three branch locations in St. Joseph County, Indiana. The
Bank also operates a mortgage office in Elkhart County, Indiana
. The Bank offers a variety of lending, deposit and other
financial services to its retail and commercial customers. The
Bank's wholly-owned subsidiary, Mishawaka Financial Services,
Inc., is engaged in the sales of credit life, general fire and
accident, car, home, and life insurance as agent for the Bank's
customers and the general public.
Basis of Presentation: The accompanying unaudited consolidated
financial statements were prepared in accordance with
instructions for Form 10-Q and, therefore, do not include all
disclosures required by generally accepted accounting principles
for complete presentation of financial statements. In the
opinion of management, the consolidated financial statements
contain all adjustments necessary to present fairly the
consolidated balance sheets of MFB Corp. and its subsidiary MFB
Financial as of December 31, 1996 and September 30, 1996, and
the consolidated statements of income for the three months
ended December 31, 1996 and 1995, and the consolidated
statements of changes in shareholders' equity and the
consolidated statements of cash flows for the three months ended
December 31, 1996 and 1995. All significant intercompany
transactions and balances are eliminated in consolidation. The
income reported for the three months ended December 31, 1996 is
not necessarily indicative of the results that may be expected
for the full year.
New Accounting Standards Adopted: Several new accounting
standards were issued by the Financial Accounting Standards
Board that will apply for the year ending September 30, 1997.
SFAS No. 121, "Accounting for the Imapirment of Long-Lived
Assets and for Long-Lives Assets To Be Disposed Of," requires a
review of long-term assets for impairment of recorded value and
resulting write-downs if the value is impaired. SFAS No. 122,
"Accounting for Mortgage Servicing Rights," requires recognition
of an asset when servicing rights are retained on in-house
originated loans that are sold. SFAS No. 123, "Accounting for
Stock-Based Compensation," encourages, but does not require ,
entities to use a "fair value based method" to account for
stock-based compensation plans and requires disclousure of the
pro-forma effect on net income and on earnings per share had the
accounting been adopted. SFAS No. 121, SFAS No, 122 and SFAS
No. 123 were adopted by the Company on October 1, 1996, and are
not expected to have a material effect on the Company's
consolidated financial position or results of operations.
NOTE 2 - EARNINGS PER COMMON SHARE
Earnings per common and common equivalent share were computed by
dividing net income by the weighted average number of shares of
common stock and common stock equivalents outstanding.
Employee and director stock options are considered common stock
equivalents. At December 31, 1996, the Company had 90,767
unallocated shares which are excluded from the weighted average
number of shares outstanding used to calculated the earnings per
common and common share equivalent. The weighted-average number
of shares outstanding for the calculation of earnings per common
and common equivalent share was 1,812,726 at December 31, 1996
and 2,030,497 at December 31, 1995. The weighted-average number
of shares outstanding for the calculation of fully-diluted
earnings per share were 1,810,038 at December 31, 1996 and
2,026,796 at December 31, 1995.
Item 2. Management's Discussion and Analysis of FinancialCondition
and Results of Operations
GENERAL
The principal business of MFB Financial (the "Bank") has
historically consisted of attracting deposits from the general
public and making loans secured by residential and other real
estate. The Bank and all other savings associations are
significantly affected by prevailing economic conditions, as
well as government policies and regulations concerning, among
other things, monetary and fiscal affairs, housing and
financial institutions. Deposit flows are influenced by a
number of factors, including interest rates paid on competing
investments, account maturities and level of personal income
and savings. In addition, deposit growth is affected by how
customers perceive the stability of the financial services
industry amid various current events such as regulatory changes,
failures of other financial institutions and financing of the
deposit insurance fund. Lending activities are influenced by
the demand for and supply of housing lenders, the availability
and cost of funds and various other items. Sources of funds for
lending activities of the Bank include deposits, payments on
loans and income provided from operations. The Company's
earnings are primarily dependent upon the Bank's net interest
income, the difference between interest income and interest
expense.
Interest income is a function of the balances of loans and
securities outstanding during a given period and the yield
earned on such loans and securities. Interest expense is a
function of the amount of deposits and borrowings outstanding
during the same period and interest rates paid on such deposits
and borrowings. The Company's earnings are also affected by
the Bank's provisions for loan and real estate losses, service
charges, income from subsidiary activities, operating expenses
and income taxes.
LIQUIDITY
A standard measure of liquidity for savings associations is the
ratio of cash and eligible investments to a certain percentage
of net withdrawable savings and borrowings due within one year.
The minimum required ratio is currently set by OTS at 5% of
which at least 1% must be comprised of short-term investments
(i.e., generally with a term of less than one year). At December
31, 1996, the Bank's liquidity ratio was 17.43% and the
short-term liquidity ratio was 4.58%. Therefore, the Bank's
liquidity is well above the minimum regulatory requirements.
Liquidity relates primarily to the Company's ability to fund
loan demand, meet deposit customers' withdrawal requirements and
provide for operating expenses. Assets used to satisfy these
needs consists of cash and other investments with five years or
less remaining until maturity. These liquid investments include
deposits with other financial institutions, overnight
interest-bearing deposits in other financial institutions,
interest-bearing time deposits in other financial institutions
and securities, excluding FHLB stock. These assets are commonly
referred to as liquid assets. Liquid assets were $53.9 million
as of December 31, 1996 compared to $69.0 million as of
September 30, 1996. This $15.1 million decrease was primarily
due to reductions of $15.1 million in securities and $297,000 in
time deposits in other financial institutions, offset by a
$345,000 increase in cash and cash equivalents. This decrease in
liquidity, along with $500,000 in new Federal Home Loan Bank
advances, were primarily used to fund a $13.8 million increase
in net loans from September 30, 1996 to December 31, 1996.
The Company uses its liquidity mainly to fund existing and
future loan commitments, to fund deposit withdrawals, to invest
in securities, and to meet operating expenses. At December 31,
1996, the Company had commitments to fund loan originations with
borrowers totaling $18.8 million (including $10.3 million in
available equity lines of credit) . Management believes that
loan repayments and other sources of funds will be adequate to
meet the Company's liquidity needs.
The cash flow statements provide an indication of the Company's
sources and uses of cash as well as an indication of the ability
of the Company to maintain an adequate level of liquidity. A
discussion of the changes in the cash flow statements for the
three months ended December 31, 1996 and 1995 follows.
During the three months ended December 31, 1996, net cash
increased $346,000 from $1.7 million at September 30, 1996 to
$2.1 million at December 31, 1996.
The Company experienced a net increase in cash from operating
activities of $426,000 during the three months ended December
31, 1996. This increase was primarily due to $476,000 net income
for the period and increases in other assets offsetting the
$865,000 decrease in accrued expenses resulting from the payment
during the current quarter of the one time Savings Association
Insurance Fund assessment of $955,000 .
Net cash used in investing activities was $1.6 million for the
three months ended December 31, 1996. This change in net cash
resulted primarily from the $2.8 million generated from normal
maturities of securities exceeding reinvestments and the $12.1
million in proceeds from the sale of securities , partially
offset by the net increase in loans receivable of $13.8 million.
Net cash used in financing activities was $1.7 million for the
three months ended December 31, 1996 as $3.7 million in MFB
Corp. common stock was repurchased , $1.0 million in escrow
payments for borrower's taxes and insurance were disbursed and
$143,000 in cash dividends were paid during the quarter. $2.6
million in net deposits and $500,000 in additional FHLB advances
were used to fund the investing activities discussed above.
The Company experienced a $924,000 net decrease in cash from
operating activities for the period ended December 31, 1995.
This decrease was primarily due to a $1.8 million decrease in
other liabilities partially offset by net income during the
period of $352,000 and a decrease in other assets of $322,000.
Net cash used in investing activities was $4.0 million for the
three months ended December 31, 1995. During the period, net
loans receivable increased to $2.7 million . In addition, the
Bank acquired $2.1 million in collateralized mortgage
obligations, $2.0 million of financing leases and $834,000 of
mortgage loans. These activities were funded primarily with the
proceeds from $4.7 million in maturing securities.
Net cash of $1.2 million was generated from financing activities
during the three months ended December 31, 1995, and was used to
partially fund the investing activities discussed above. This
increase was primarily due to $440,000 in net deposits and the
$1.5 million in new FHLB advances partially offset by a decrease
of $766,000 in advances from borrowers for taxes and insurance.
CAPITAL RESOURCES
Total shareholders' equity decreased $3.5 million from $38.0
million as of September 30, 1996 to $34.5 million as of December
31, 1996. The decrease is the result of the purchase and
retirement of 199,963 shares of common stock totaling $3.7
million partially offset by net income for the three months
ended December 31, 1996 of $476,000.
Federal regulations require savings banks to have minimum
regulatory tangible capital equal to 1.5% of total assets, a 3%
core capital ratio and an 8.0% risk-based capital ratio. At
December 31, 1996, the Bank meets the regulatory tangible
capital, core capital and risk-based capital requirements.
Tangible capital was $31.9 million or 14.2% of total bank
assets, core capital was $31.2 million or 14.2% of total bank
assets and risk-based capital was $32.2 million or 31.4% of
risk-based bank assets.
As of December 31, 1996, management is not aware of any current
recommendations by regulatory authorities which, if they were to
be implemented, would have, or are reasonably likely to have, a
material adverse effect on the Company's liquidity, capital
resources or operations.
MATERIAL CHANGES IN FINANCIAL CONDITION
December 31, 1996 Compared to September 30, 1996
Total assets decreased $1.9 million from $225.8 million as of
September 30, 1996 to $223.9 million as of December 31, 1996.
Net loans increased by $13.8 million from $152.0 million at
September 30, 1996 to $165.8 million at December 31, 1996 due
to loan originations exceeding principal payments by
approximately $13.3 million along with the purchase of $505,000
in mortgage loans. Securities available for sale decreased
during this same period from $66.8 million at September 30, 1996
to $51.5 million at December 31, 1996. As was discussed
previously, maturities of securities exceeded reinvestments by
$2.8 million , $12.1 million in securities were sold during the
quarter, and principal payments of $433,000 were received on
mortgage backed securities.
Total liabilities increased from $188.2 million at September
30 , 1996 to $189.5 million at December 31, 1996. Significant
liability changes included the addition of $1.0 million in
savings , NOW and MMDA deposits and $1.6 million in time
deposits totaling a net increase of $2.6 million in customer
deposits. Enhancement of our deposit based product offerings and
emphasis on core relationships and quality service has
contributed to this deposit increase. FHLB advances also
increased by $500,000 during the three months ended December 31,
1996. Advances from borrowers for taxes and insurance decreased
$983,000 due to the payment of borrower's taxes in November.
Also, accrued expenses and other liabilities decreased from $2.9
million at September 30, 1996 to $2.0 million at December 31,
1996 primarily due to the $955,000 payment of the special SAIF
insurance fund assessment.
The $25.0 million of Federal Home Loan Bank advances have a
weighted average interest rate of 5.35% and mature in three
years or less.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Three months ended December 31, 1996 compared to the three
months ended December 31, 1995
The Company's consolidated net income for the three months ended
December 31, 1996 was $476,000 compared with $352,000 for the
three months ended December 31, 1995, an increase of 35.2%
Net interest income after provision for loan losses for the most
recent three month period totaled $1.76 million compared to
$1.38 million for the same period one year ago. During the three
months ended December 31, 1996 total interest income increased
by $892,000 compared to the same period one year ago, primarily
as a result of the redeployment of assets from relatively lower
earning investments into the Bank's loan portfolio. Total
interest expense increased $505,000 reflecting the growth in
both savings account deposits and borrowed funds.
Noninterest income increase from $83,000 for the three months
ended December 31, 1995 to $113,000 for the most recent three
month period, while noninterest expense increased from $871,000
to $1.1 million for the comparable periods. This expense
increase is primarily related to increased compensation expenses
and expenses related to the Bank's name change which took effect
November 1, 1996.
SUPPLEMENTAL INFORMATION
The Company continues to maintain asset quality that compares
favorably to its industry peer group. The ratio of nonperforming
assets to total assets as of December 31, 1996 was .02% compared
to .18% as of December 31, 1995.
IMPACT OF NEW ACCOUNTING STANDARDS
Several new accounting standards have been issued by the
Financial Accounting Standards Board that will apply for the
year ending September 30, 1997. SFAS No. 125, "Accounting for
Transfer and Servicing of Financial Assets and Extinguishment
of Liabilities, " provides accounting and reporting standards
for transfers and servicing of financial assets and
extinguishments of liabilities and requires a consistent
application of a financial-components approach that focuses on
control. Under that approach, after a transfer of financial
assets, an entity recognizes the financial and servicing assets
it controls and the liabilities it has incurred and derecognizes
liabilities when extinguished. SFAS No. 125 also supersedes
SFAS No. 122, and requires that servicing assets and
liabilities be subsequently measured by amortization in
proportion to and over the period of estimated net servicing
income or loss and requires assessment for asset impairment or
increased obligation based on their fair values. SFAS No. 125
applies to transfers and extinguishments occurring after
December 31, 1996, and early or retroactive application is not
permitted. Upon adoption, this statement is not expected to have
a material effect on the Company's consolidated financial
position or results of operations.
MFB CORP. AND SUBSIDIARY
FORM 10-Q
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission of Matters to a Vote of Security Holders.
(a) The Annual Meeting of Shareholders was held on January 17, 1997.
(b) Each of the persons named in the proxy statement as a nominee
for director was elected.
(c) The following are the voting results on each of the matters
which were submitted to the shareholders:
For Withheld Abstain Against
Election of Directors:
M. Gilbert Eberhart 1,259,793 233,457
Jonathan E. Kintner 1,262,378 230,872
Appointment of Crowe Chizek
& Co.as auditors for 1997. 1,469,978 1300 21,972
The text of the matters referred to under this Item 4 is set
forth in the proxy statement dated December 13, 1996 previously
filed with the Securities and Exchange Commission, and is
incorporated herein by reference.
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K
(a) MFB Corp. filed two Form 8-K reports during the quarter
ended December 31, 1996.
Date of report: October 15, 1996
Items reported: News release dated October 15,1996 regarding
the announcement of fourth quarter earnings and
and the filing of the Corporation Code of By-laws.
News release dated October 16, 1996 regarding
the declaration of a $ .08 per share cash dividend
payable on November 19, 1996 to holders of record on
November 5, 1996.
Date of report: December 6, 1996
Item reported: News release regarding the announcement of the
Board of Director's approval of a plan to repurchase
up to 5% of the outstanding shares of the Company's
stock.
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 thereunto duly authorized.
MFB CORP.
Date By
Charles J. Viater
President
Date By
Timothy C. Boenne
Vice President
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<LOANS-TROUBLED> 0
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<ALLOWANCE-OPEN> 340,000
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 348,000
<ALLOWANCE-DOMESTIC> 348,000
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 348,000
</TABLE>
