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 20, 2000
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 20, 2000 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 20, 2000.
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: April 20, 2000
April 20, 2000 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 $724,000 or $ .51 diluted earnings per
common share for the three months ended March 31, 2000, compared to
$594,000 or $ .40 diluted earnings per common share for the three months
ended March 31, 1999, an earnings per share increase of 27.50%. Net income
for the six months ended March 31, 2000 was $1,413,000 or $ .99 diluted
earnings per share compared to $1,257,000 or $ .86 diluted earnings per
share for the six months ended March 31, 1999, representing a 15.1% year to
date earnings per share increase.
Net interest income after provision for loan losses for
the most recent three and six month periods totaled $2.8 million and $5.6
million compared to $2.3 million and $4.6 million for the same periods one
year ago. During the three months ended March 31, 2000 total interest
income increased by $937,000 compared to the same period one year ago,
primarily as a result of increased volumes of loans receivable,
particularly commercial and consumer loans. Commercial and consumer loan
receivables, including home equity and second mortgage loans, increased
$42.1 million and mortgage loan receivables increased $28.0 million from
March 31, 1999 to March 31, 2000. Total interest expense increased $383,000
reflecting the growth in savings account deposits. For the six months ended
March 31, 2000 total interest income increased $1.5 million while total
interest expense increased $441,000.
Noninterest income increased from $286,000 and $590,000
for the three and six months ended March 31, 1999 to $302,000 and $659,000
for the most recent three and six month periods. These increases are
primarily due to fees generated from the increasing number of core deposit
account relationships and income generated from the Bank's trust department
formed in 1999. Noninterest expenses increased from $1.6 million during the
three months ended March 31, 1999 to $2.0 million during the three months
ended March 31, 2000, and from $3.1 million to $4.0 million for the
comparable six month periods. The noninterest expense increases are
primarily attributable to staffing increases, renovated facilities to
support lending operations, expenses associated with the opening of a new
full service office during the first quarter of 2000, and expenses incurred
in the offering of additional services to the Banks' customers.
The Corporation has increased total assets from $346.5
million as of September 30, 1999 to $382.6 million as of March 31, 2000, an
increase of $36.1 million (or 10.4%). Total net loans increased from $277.5
million to $307.8 million during this same six month period, an increase of
$30.3 million (or 10.9%). The loan growth has been funded primarily by the
growth in total savings deposits, securities sold under agreements to
repurchase and additional borrowings through Federal Home Loan Bank
advances.
Total shareholders' equity increased from $31.2 million
as of September 30, 1999 to $31.5 million as of March 31, 2000 mainly from
net income of $1.4 million offset by the repurchase of 39,600 shares of
outstanding common stock during this period at a cost of $700,000, cash
dividend payments of $262,000 and a $256,000 adjustment to reflect the
decrease in the market value of securities available for sale, net of tax.
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, 2000 was .05% compared to .05% as of March 31, 1999.
In addition, MFB Corp. announced today that the
Corporation has declared a cash dividend of $ .095 per share of Common
Stock for the quarter ended March 31, 2000. The dividend is payable on May
16, 2000 to holders of record on May 2, 2000.
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 six banking centers located in St.
Joseph and Elkhart counties.
MFB CORP. AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
March 31, 2000 and September 30, 1999
(in thousands)
<TABLE>
<CAPTION>
March 31, September 30,
2000 1999
ASSETS <S> <S>
Cash and due from financial institutions $ 7,996 $ 6,316
Interest-bearing deposits in other financial
institutions - short term 1,029 5,746
Total cash and cash equivalents 9,025 12,062
Interest-bearing time deposits in other
financial institutions - 1,000
Securities available-for-sale 32,347 38,170
Securities held to maturity 18,738 3,984
Federal Home Loan Bank (FHLB) stock, at cost 5,711 5,511
Loans held for sale, net 4,180 8,062
Loans receivable, net 303,614 269,464
Accrued interest receivable 1,617 1,364
Premises and equipment, net 4,653 4,414
Mortgage Servicing Rights, net 446 412
Investment in limited partnership 1,168 1,213
Other assets 1,116 798
Total Assets $382,615 $346,454
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 10,653 $ 7,358
Savings, NOW and MMDA deposits 59,383 52,409
Other time deposits 164,721 141,640
Total deposits 234,757 201,407
Securities sold under agreements to
repurchase 7,958 6,566
Other borrowings 104,726 104,226
Advances from borrowers for taxes
and insurance 2,340 2,111
Accrued expenses and other liabilities 1,303 962
Total Liabilities 351,084 315,272
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417-3/31/00 and 9/30/99
shares outstanding: 1,380,449 - 3/31/00,
1,420,049 - 9/30/99 13,071 13,016
Retained earnings - substantially restricted 26,571 25,420
Accumulated other comprehensive income (loss),
net of tax (974) (718)
Unearned Employee Stock Ownership Plan
(ESOP) shares (123) (223)
Treasury Stock,308,968 common shares-3/31/00
269,368 common shares-9/30/99 (7,014) (6,313)
Total shareholders' equity 31,531 31,182
Total Liabilities and Shareholders' Equities $382,615 $346,454
</TABLE>
MFB CORP. AND SUBSIDIARY
Consolidated Statement of Income (Unaudited)
Three Months and Six Months Ended March 31, 2000 and 1999
(in thousands)
<TABLE>
<CAPTION>
Three Months Six Months
Ended March 31 Ended March 31
2000 1999 2000 1999
<S> <S> <S> <S>
Total interest income $6,894 $5,957 $13,413 $11,917
Total interest expense 3,972 3,589 7,656 7,215
Net interest income 2,922 2,368 5,757 4,702
Provision for loan losses 80 45 155 90
Net interest income after provision
for loan losses 2,842 2,323 5,602 4,612
Total non-interest income 302 286 659 590
Total non-interest expense 1,985 1,594 3,995 3,061
Income before income taxes 1,159 1,015 2,266 2,141
Income tax expense 435 421 853 884
Net Income $724 $594 $1,413 $1,257
Basic Earnings per common share $ .52 $ .42 $ 1.00 $ .88
Diluted Earnings per common share $ .51 $ .40 $ .99 $ .86
</TABLE>
