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): JANUARY 20, 1999
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
January 20, 1999 concerning the Fourth 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 January 20, 1999.
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: February 18, 1999
<PAGE>
January 20,1999 Point of Contact: Charles J. Viater
MFB CORP. ANNOUNCES FIRST QUARTER EARNINGS
AND INCREASES QUARTERLY DIVIDEND
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),(the
"Corporation"), parent company of MFB Financial (the "Bank"), today
reported consolidated net income of $663,000 or $.45 per share for the
three months ended December 31, 1998, compared to $502,000 or $.30 per share
for the three months ended December 31, 1997. This represents a 50% increase
in earnings per share for the Corporation..
Net interest income after provision for loan losses for the most recent
three month period totaled $2.3 million compared to $2.0 million for the
same period one year ago. During the three months ended December 31,
1998 total interest income increased by $1.1 million compared to the
same period one year ago, primarily as a result of a $7.5 million increase
in first mortgage loan receivables and a $31.4 million increase in
commercial and consumer loan receivables. Total interest expense increased
$807,000 reflecting the growth in savings account deposits and borrowed funds.
Noninterest income increased from $165,000 for the three months ended
December 31, 1997 to $304,000 for the most recent three month period,
while noninterest expense increased from $1.3 million to $1.5 million
for the comparable periods. The $139,000 noninterest income increase is
primarily related to gains realized on the sale of mortgage loans during
the period, servicing income retained on those sold loans, and fees
generated from the growing number of core deposit account relationships.
The noninterest expense increases are primarily attributable to staffing
increases, facility upgrades, and expenses incurred in the offering of
additional services to the Banks' customers.
The Corporation has increased total assets from $315.0 million as
of September 30, 1998 to $334.7 million as of December 31,1998, an increase
of $19.7 million (or 6.3%). Total securities available for sale increased
from $41.8 million at September 30, 1998 to $50.2 million at December 31,
1998, an increase of $8.3 million (or 19.9%). Total net loans increased
from $245.1 million to $253.9 million during this same three month period,
an increase of $8.8 million (or 3.6%). The investment and loan growth
has been funded primarily by the growth in total savings deposits
and additional borrowings through Federal Home Loan Bank advances.
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Total shareholders' equity increased from $30.9 million as of September
30, 1998 to $31.3 million as of December 31, 1998 mainly from net income
of $663,000 offset by the repurchase of 10,300 shares of outstanding
common stock during this period at a cost of $215,000, along with the
payment of cash dividends of $124,000.
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 December 31, 1998
was .04% compared to .09% as of December 31, 1997.
In addition, MFB Corp. announced today that the Corporation has increased
its cash dividend to $ .09 per share of Common Stock for the quarter ended
December 31, 1998. The dividend is payable on February 16, 1999 to holders
of record on February 2, 1999, and represents a 5.9% increase over the
cash dividend of $ .085 for the quarter ended September 30, 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>
<TABLE>
<CAPTION>
MFB CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31, 1998 and September 30, 1998
(in thousands)
December 31, September 30,
1998 1998
ASSETS
<S> <C> <C>
Cash and due from financial institutions $ 3,398 $ 3,019
Interest-bearing deposits in other
financial institutions 15,860 14,885
Cash and cash equivalents 19,258 17,904
Securities available-for-sale 50,159 41,820
Federal Home Loan Bank (FHLB) stock, at cost 5,511 4,636
Loans held for sale, net of unrealized losses 6,903 13,516
Loans receivable, net of allowance for loan losses
of $499,000 at 12/31/98 and $454,000 at 9/30/98 246,966 231,610
Accrued interest receivable 1,061 968
Premises and equipment, net 3,115 2,795
Mortgage Servicing Rights, net 230 192
Investment in limited partnership 1,214 1,222
Other assets 251 298
TOTAL ASSETS $334,668 $314,961
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 5,970 $ 4,299
Savings, NOW and MMDA deposits 45,214 40,835
Other time deposits 137,686 135,532
Total deposits 188,870 $180,666
Securities sold under agreements to repurchase 1,679 2,366
Other borrowings 110,226 97,657
Advances from borrowers for taxes and insurance 1,244 2,316
Accrued expenses and other liabilities 1,371 1,070
Total Liabilities 303,390 284,075
Shareholders' Equity
Common Stock, 5,000,000 shared authorized;
shares issued: 1,689,417 - 12/31/98,
1,689,417 - 9/30/98
shares outstanding: 1,463,917 - 12/31/98,
1,474,217 - 9/30/98 12,894 12,847
Retained earnings - substantially restricted 24,268 23,730
Unearned Employee Stock Ownership Plan (ESOP) shares (395) (445)
Unearned Recognition and Retention Plan (RRP) shares (19) (38)
Net unrealized appreciation (depreciation) on
securities available-for sale, net of tax (92) (45)
Treasury Stock, 225,500 common shares - 12/31/98
215,200 common shares - 9/30/98 (5,378) (5,163)
Total shareholders' equity 31,278 30,886
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $334,668 $314,961
</TABLE>
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 1998 AND 1997
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended December 31,
1998 1997
<S> <C> <C>
Total interest income $5,960 $4,819
Total interest expense 3,626 2,819
Net interest income 2,334 2,000
Provision for loan losses 45 15
Net interest income after provision for loan losses 2,289 1,985
Total non-interest income 304 165
Total non-interest expense 1,467 1,278
Income before income taxes 1,126 872
Income tax expense 463 370
NET INCOME $663 $502
Basic earnings per common share $ .46 $ .32
Diluted earnings per common share .45 .30
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