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): AUGUST 13, 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
July 21, 1999 concerning the Third 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 July 21, 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: August 13, 1999
July 21, 1999 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 $358,000 or $.25 per share for the three
months ended June 30, 1999, compared to $488,000 or $.30 per share for the
three months ended June 30, 1998. Net income for the nine months ended June
30, 1999 was $1,622,000 or $1.10 per share compared to $1,656,000 or $1.02 per
share for the nine months ended June 30, 1998, representing a 7.8% earnings per
share increase.
Net interest income after provision for loan losses for the
most recent three and nine month periods totaled $2.4 million and $7.0 million
compared to $2.2 million and $6.4 million for the same periods one year ago.
During the three months ended June 30, 1999 total interest income increased by
$684,000 compared to the same period one year ago, primarily as a result of a
$28.0 million increase in commercial and consumer loan receivables. The Bank
continues to place increased emphasis on growing the small business lending
division and developing the consumer lending program within the areas serviced
by its branches. The desire for local service and local decision making has
clearly influenced the growth the Bank has experienced. Total interest expense
increased $447,000 reflecting the growth in savings account deposits and
borrowed funds. For the nine months ended June 30, 1999 total interest income
increased $2.6 million while total interest expense increased $1.9 million.
Noninterest income increased from $182,000 and $509,000 for
the three and nine months ended June 30, 1998 to $258,000 and $848,000 for the
most recent three and nine month periods. These increases are primarily due to
gains realized on the sale of first mortgage loans, servicing fee income
retained on those sold loans, and fees generated from the increasing number of
core deposit account relationships. Noninterest expenses increased from $1.4
million during the three months ended June 30, 1998 to $2.0 million during the
three months ended June 30, 1999, and from $4.1 million to $5.0 million for the
comparable nine month periods. The noninterest expense increases are primarily
attributable to the recognition of a $443,000 provision to adjust loans held
for sale to the lower of cost or market at June 30, 1999, along with 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 $338.5 million as of June 30, 1999,
an increase of $23.5 million (or 7.5%). Total securities, both available for
sale and held to maturity, increased from $41.8 million at September 30, 1998
to $49.8 million at June 30, 1999, an increase of $8.0 million (or 19.1%).
Total net loans increased from $245.1 million to $265.5 million during this
same nine month period, an increase of $20.4 million (or 8.3%). The investment
and loan growth has been funded primarily by the growth in total savings
deposits, additional borrowings through Federal Home Loan Bank advances and the
reduction of interest-bearing deposits in other financial institutions.
Total shareholders' equity increased from $30.9 million as
of September 30, 1998 to $31.2 million as of June 30, 1999 primarily from
net income of $1.6 million offset by the repurchase of 42,264 shares of
outstanding common stock during this period at a cost of $911,000, along with
the payment of cash dividends of $386,000.
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
June 30, 1999 was .07% compared to .06% as of June 30, 1998.
In addition, MFB Corp. announced today that the Corporation
has declared a cash dividend of $ .09 per share of Common Stock for the quarter
ended June 30, 1999. The dividend is payable on August 17, 1999 to holders of
record on August 3, 1999. .
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 five banking centers located in
St. Joseph and Elkhart counties.
MFB CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
June 30, 1999 and September 30, 1998
(in thousands)
<TABLE>
<CAPTION>
June 30, September30,
1999 1998
<S> <C> <C>
ASSETS
Cash and due from financial institutions $ 6,415 $ 3,019
Interest-bearing deposits in other
financial institutions 2,373 14,885
Cash and cash equivalents 8,788 17,904
Securities available-for-sale 46,314 41,820
Securities held-to-maturity 3,482 -
Interest-bearing time deposits in other
financial institutions 1,000 -
Federal Home Loan Bank (FHLB) stock, at cost 5,511 4,636
Loans held for sale, net of allowance for unrealized
losses of $443,000 at 6/30/99, $-0- at 9/30/98 14,031 13,516
Loans receivable, net of allowance for loan losses
of $609,000 at 6/30/99 and $454,000 at 9/30/98 251,799 231,610
Accrued interest receivable 1,363 968
Premises and equipment, net 4,245 2,795
Mortgage Servicing Rights, net 292 192
Investment in limited partnership 1,214 1,222
Other assets 679 298
TOTAL ASSETS $338,718 $314,961
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 7,499 $ 4,299
Savings, NOW and MMDA deposits 51,335 40,835
Other time deposits 137,403 135,532
Total deposits 196,237 180,666
Securities sold under agreements to repurchase 5,092 2,366
Other borrowings 104,226 97,657
Advances from borrowers for taxes and insurance 1,117 2,316
Accrued expenses and other liabilities 826 1,070
Total Liabilities 307,498 284,075
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417 - 6/30/99,
1,689,417 - 9/30/98
shares outstanding: 1,431,953 - 6/30/99,
1,474,217 - 9/30/98 12,995 12,847
Retained earnings - substantially restricted 24,966 23,730
Unearned Employee Stock Ownership Plan (ESOP)
shares (294) (445)
Unearned Recognition and Retention Plan (RRP) shares - (38)
Accumulated other comprehensive income (373) (45)
Treasury Stock, 257,464 common shares - 6/30/99,
215,200 common shares - 9/30/98 (6,074) (5,163)
Total shareholders' equity 31,220 30,886
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $338,718 $314,961
</TABLE>
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED
THREE MONTHS AND NINE MONTHS ENDED JUNE 30, 1999 AND 1998
(in thousands)
<TABLE>
<CAPTION>
Three Months Ended June 30, Nine Months Ended June 30,
1999 1998 1999 1998
<S> <C> <C> <C> <C>
Total interest income $6,075 $5,391 $17,992 $15,364
Total interest expense 3,608 3,161 10,823 8,937
Net interest income 2,467 2,230 7,169 6,427
Provision for loan losses 65 20 155 50
Net interest income after
provision for loan losses 2,402 2,210 7,014 6,377
Total non-interest income 258 182 848 509
Total non-interest expense 2,023 1,396 5,084 4,136
Income before income taxes 637 996 2,778 2,750
Income tax expense 272 508 1,156 1,094
NET INCOME $365 $488 $1,622 $1,656
Basic Earnings
per common share $ .26 $ .31 $ 1.14 $ 1.06
Diluted Earnings
per common share $ .25 $ .30 $ 1.10 $ 1.02
</TABLE>
