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 20, 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 October 20, 1997 concerning the Fourth Quarter Earnings is
incorporated herein by reference and is attached hereto as Exhibit 1.
Pursuant to General Instruction F to Form 8-K, the press release
issued October 22, 1997 concerning the cash dividend announcement is
incorporated by reference and is attached hereto as Exhibit 2.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 1 -- Press Release dated October 20, 1997.
Exhibit 2 -- Press Release dated October 22, 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: November 14, 1997
Exhibit 1
October 20 , 1997 Point of Contact: Charles J. Viater
MFB Corp. ANNOUNCES FOURTH QUARTER EARNINGS
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),(the "Corporation"),
parent company of MFB Financial (the "Bank"), today reported consolidated
net income of $496,000 or $.29 per share for the three months ended
September 30, 1997, compared to $(197,000) or $(.10) per share for the
three months ended September 30, 1996. Net income on an unaudited basis for
the fiscal year ended September 30, 1997 was $2,002,000 or $1.14 per share
compared to $975,000 or $ .48 per share for the twelve months ended
September 30, 1996. For the prior period ended September 30, 1996, income
levels were significantly reduced as a result of a one time special
assessment to recapitalize the Savings Association Insurance Fund. This
non-recurring expense was approximately $577,000 on an after tax basis or
the equivalent of $.29 per share. Had this special assessment not been
incurred, net income for the three months ended September 30, 1996 would
have been approximately $380,000 or $.20 per share and for the year ended
September 30, 1996 net income would have amounted to $1,552,000 or $.76 per
share.
Net interest income after provision for loan losses for the most
recent three and twelve month periods totaled $2.0 million and $7.5 million
respectively compared to $1.7 million and $6.1 million for the same periods
one year ago. During the three months ended September 30, 1997 total
interest income increased by $853,000 compared to the same period one year
ago primarily as a result of a $38.5 million increase in first mortgage
loan receivables and a $10.4 million increase in commercial and consumer
loan receivables. Total interest expense increased $537,000 reflecting the
growth in savings accounts deposits and borrowed funds. For the twelve months
ended September 30, 1997 total interest income increased $3.5 million while
total interest expense increased $2.1 million.
Noninterest income increased from $79,000 and $384,000 for the three and
twelve months ended September 30, 1996 to $118,000 and $424,00 for the
comparable periods ended September 30, 1997. Noninterest expense decreased
from $2.1 million during the three months ended September 30, 1996 to $1.3
million during the three months ended September 30, 1997, and from $4.9
million to $4.6 million for the comparable twelve month periods ending
September 30. These noninterest expense decreases are primarly attributable
to the one time special assessment in 1996, offset by increased compensat-
ion 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 $255.9 million as of September 30, 1997, an increase
of $30.1 million (or 13.3%). "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 $200.9 million at September 30, 1997, an increase
of $48.8 million (or 32.1%). 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 $33.5 million as of September 30, 1997 mainly as a result of the
Corporation's repurchase of 332,263 shares of outstanding common stock
during this period at a cost of $6.4 million along with the payment of cash
dividends of $554,000 partially offset by $2.0 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 September 30, 1997 was .09%
compared to .09% as of September 30, 1996.
The Bank is a wholly owned subsidiary of MFB Corp. providing retail and
small business financial services to the Michiana area through its main
office in Mishawaka and four banking centers located in St. Joseph and
Elkhart counties.
MFB CORP. AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
September 30, 1997 and September 30, 1996
(in thousands)
September 30, September 30,
1997 1996
ASSETS
Cash and due from financial institutions $ 2,906 $ 1,734
Interest-earning deposits in other financial
institutions 6,576 ---
Cash and cash equivalents 9,482 1,734
Interest-earning time deposits in other financial
institutions --- 495
Securities available-for-sale 39,628 66,763
Federal Home Loan Bank stock 2,400 1,336
Total loans 201,305 152,392
Less allowance for loan losses (370) (340)
Loans receivable, net 200,925 152,052
Accrued interest receivable 719 818
Premises and equipment, net 2,613 1,969
Other assets 144 642
Total Assets $255,921 $225,809
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits $171,887 $158,965
Securities sold under agreements to repurchase 389 ---
Advances from borrowers for taxes and insurance 1,854 1,864
FHLB advances 47,500 24,500
Accrued expenses and other liabilities 770 2,881
Total Liabilities 222,400 188,210
Shareholders' Equity
Common Stock 13,079 18,317
Retained earnings 22,038 20,589
Employee stock ownership plan (665) (894)
Recognition and retention plans (115) (193)
Net unrealized depreciation on securities
available-for sale, net of tax 73 (220)
Treasury Stock (889) ---
Total shareholders' equity 33,521 37,599
Total Liabilities and Shareholders' Equities $255,921 $225,809
MFB CORP. AND SUBSIDIARY
Consolidated Statement of Income (Unaudited)
Three Months and Twelve Months Ended September 30, 1997 and 1996
(in thousands)
Three Months Ended Twelve Months Ended
September 30, September 30,
1997 1996 1997 1996
Total interest income $4,797 $3,944 $17,685 $14,182
Total interest expense 2,779 2,242 10,157 8,058
Net interest income 2,018 1,702 7,528 6,124
Provision for loan losses 7 7 29 30
Net interest income after
provision for loan losses 2,011 1,695 7,499 6,094
Total non-interest income 118 79 424 384
Total non-interest expense 1,304 2,098 4,599 4,856
Income before income taxes 825 (324) 3,324 1,622
Income tax expense 329 (127) 1,322 647
Net Income $496 $(197) $2,002 $975
Earnings per common and
common equivalent share $ .29 $ (.10) $ 1.15 $ .48
Earnings per share assuming
full dilution $ 29 $ (.10) $ 1.14 $ .48
Exhibit 2
October 22, 1997 Point of Contact: Charles J. Viater
President/CEO
MFB Corp. ANNOUNCES QUARTERLY DIVIDEND
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC), (the "Corporation"),
parent company of MFB Financial (the "Bank") based in Mishawaka,
Indiana, announced today that the Corporation has declared a cash
dividend of $ .08 on each share of its Common Stock for the quarter
ended September 30, 1997. The dividend is payable on November 18,1997
to holders of record on November 4, 1997.
"The continued growth in our core earnings during the most recently
completed quarter and fiscal year warrants the declaration of this
dividend to shareholders," according to Charles J. Viater, President
and CEO of both the Corporation and the Bank. The Bank is a wholly
owned subsidiary of MFB Corp. with assets of $256 million as of
September 30, 1997.
