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): APRIL 23, 1998
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
April 23, 1998
concerning the Second Quarter Earnings and cash 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 April 23, 1998.
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: May 7, 1998
Exhibit 1
April 23 , 1998
Point of Contact: Charles J. Viater
MFB CORP. ANNOUNCES SECOND 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 $666,000 or $ .40 earnings per share for
the three months ended March 31, 1998, compared to $522,000 or $ .30 earnings
per share for the three months ended March 31, 1997, an increase of 27.6%. Net
income for the six months ended March 31, 1998 was $1,168,000 or $ .70 earnings
per share compared to $998,000 or $ .56 earnings per share for the six months
ended March 31, 1997, an increase of 17.03%.
Net interest income after provision for loan losses for the
most recent three and six month periods totaled $2.2 million and $4.2 million
compared to $1.8 million and $3.6 million for the same periods one year ago.
During the three months ended March 31, 1998 total interest income increased by
$884,000 compared to the same period one year ago, primarily as a result of a
$31.3 million increase in first mortgage loan receivables and a $18.3 million
increase in commercial and consumer loan receivables. Total interest expense
increased $531,000 reflecting the growth in savings account deposits and
borrowed funds. For the six months ended March 31, 1998 total interest income
increased $1.6 million while total interest expense increased $1.0 million.
Noninterest income increased from $85,000 and $198,000 for
the three and six months ended March 31, 1997 to $162,000 and $327,000 for the
most recent three and six month periods. These increases are primarily due to
fees generated from the growing number of core deposit account relationships
and the additional services offered to the bank's customers, along with
servicing fees retained on sold loans. Noninterest expenses, primarily
compensation and building expenses, increased from $1.1 million during the
three months ended March 31, 1997 to $1.5 million during the three months
ended March 31, 1998, and from $2.1 million to $2.7 million for the comparable
six month periods.
The Corporation has increased total assets from $255.9
million as of September 30, 1997 to $290.6 million as of March 31, 1998,
an increase of $34.7 million (or 13.6%). Total net loans have increased from
$200.9 million at September 30, 1997 to $223.9 million at March 31, 1998, an
increase of $23.0 million (or 11.4%). The loan growth has been funded
primarily by the growth in total savings deposits, and additional borrowings
through Federal Home Loan Bank advances.
<PAGE>
Total shareholders' equity increased from $33.6 million as
of September 30, 1997 to $34.2 million as of March 31, 1998. The
increases to equity resulted mainly from $1.2 million of net income and
$400,000 as a result of the exercise of stock options. These increases were
offset by the repurchase of 38,800 shares of outstanding common stock during
the period at a cost of $943,000, along with the payment of cash dividends of
$268,000.
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 March 31, 1998 was .02% compared to .03% as of March 31, 1997.
In addition, MFB Corp. announced today that the Corporation
has declared a cash dividend of $ .085 on each share of its Common Stock for
the quarter ended March 31, 1997. The dividend is payable on May 19, 1998 to
holders of record on May 5, 1998. .
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.
<PAGE>
<PAGE>
<TABLE>
<CAPTION> MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
THREE MONTHS AND SIX MONTHS ENDED MARCH 31, 1998 AND 1997
(in thousands)
Three Months Ended March 31, Six Months Ended March 31,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
Total interest income $5,154 $4,270 $9,973 $8,377
Total interest expense 2,958 2,427 5,776 4,766
Net interest income 2,196 1,843 4,197 3,611
Provision for loan losses 15 8 30 15
Net interest income after provision for
loan losses 2,181 1,835 4,167 3,596
Total non-interest income 162 85 327 198
Total non-interest expense 1,461 1,055 2,740 2,139
Income before income taxes 882 865 1,754 1,655
Income tax expense 216 343 586 657
NET INCOME $666 $522 $1,168 $998
Basic Earnings per common share $ .43 $ .32 $ .75 $ .59
Diluted Earnings per common share $ .40 $ .30 $ .70 $ .56
<PAGE>
MFB CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED
March 31, 1998 and September 30, 1997
(in thousands)
March 31, September30,
<S> 1998 1997
ASSETS <C> <C>
Cash and due from financial institutions $ 3,570 $ 2,906
Interest-bearing deposits in other
financial institutions 16,882 6,576
Cash and cash equivalents 20,452 9,482
Interest-bearing time deposits in other
financial institutions 99 ---
Securities available-for-sale 38,728 39,628
Federal Home Loan Bank (FHLB) stock, at cost 3,725 2,400
Loans held for sale, net of
unrealized losses of $-0- in 1997 --- 12,671
Loans receivable, net of allowance for loan losses
of $400,000 in 1998 and $370,000 in 1997 223,903 188,264
Accrued interest receivable 812 719
Premises and equipment, net 2,770 2,613
Other assets 142 144
TOTAL ASSETS $290,631 $255,921
</TABLE>
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 3,849 $ 2,047
Savings, NOW and MMDA deposits 41,711 38,130
Other time deposits 130,467 131,710
Total deposits 176,027 171,887
Securities sold under agreements to repurchase 2,727 389
Advances from borrowers for taxes and insurance 2,355 1,854
FHLB advances 74,500 47,500
Accrued expenses and other liabilities
Total Liabilities 256,421 222,371
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417
shares outstanding: 1,651,767 - 1998,
1,650,567 - 1997 12,713 13,108
Retained earnings - substantially restricted 22,937 22,038
Unearned Employee Stock Ownership
Plan (ESOP) shares (555) (665)
Unearned Recognition and Retention Plan
(RRP) shares (77) (115)
Net unrealized appreciation (depreciation)
on securities available-for-sale, net of tax 80 73
Treasury Stock, 37,650 common shares, at cost (888) (889)
Total shareholders' equity 34,210 33,550
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $290,631 $255,921
