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 14, 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
January 14, 2000 concerning the First 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
January 19, 2000 concerning the cash dividend announcement and stock
repurchase program is incorporated by reference and is attached hereto as
Exhibit 2.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(c) Exhibits
Exhibit 1 -- Press Release dated January 14, 2000.
Exhibit 2 -- Press Release dated January 19, 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: February 8, 2000
January 14, 2000 Point of Contact: Charles J. Viater
MFB CORP. ANNOUNCES FIRST QUARTER EARNINGS
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),(the"Corporation"),
parent company of MFB Financial (the "Bank"), today reported consolidated
net income of $689,000 or $.48 diluted earnings per common share for the
three months ended December 31, 1999, compared to $663,000 or $.45
diluted earnings per common share for the three months ended December 31,
1998, representing a 6.67% increase in earnings per share for the Corporation.
Net interest income after provision for loan losses for the most
recent three month period totaled $2.8 million compared to $2.3 million
for the same period one year ago. During the three months ended December 31,
1999 total interest income increased by $560,000 compared to the same period
one year ago, primarily as a result of the redeployment of assets
from relatively lower earnings investments into the Bank's loan portfolio.
Commercial and consumer loan receivables, including home equity and second
mortgage loans, increased $34.5 million over the comparative three month
periods. Total interest expense increased $59,000 reflecting the growth in
savings account deposits and borrowed funds.
Noninterest income increased from $304,000 for the three months
ended December 31, 1998 to $358,000 for the most recent three month
period, while noninterest expense increased from $1.5 million to $2.0 million
for the comparable periods. The $54,000 noninterest income increase is
primarily related to fees generated from the growing number of core deposit
account relationships and income generated from the Bank's trust department
formed in 1999. The noninterest expense increases are primarily attributable
to staffing increases and renovated facilities to support lending operations
along with 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 $356.6 million as of December 31, 1999, an
increase of $10.1 million (or 2.9%). Total net loans increased from $277.5
million to $288.6 million during this same three month period, an increase of
$11.1 million (or 4.0%). 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.
<PAGE>
Total shareholders' equity increased from $31.2 million as
of September 30, 1999 to $31.4 million as of December 31, 1999 mainly from net
income of $689,000 offset by the repurchase of 7,500 shares of outstanding
common stock during this period at a cost of $146,000, a cash dividend payment
of $128,000 and a $260,000 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 December
31, 1999 was .05% compared to .08% as of December 31, 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 five banking centers located in St.
Joseph and Elkhart counties.
<PAGE>
MFB CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31, 1999 and September 30, 1999
<TABLE>
<CAPTION> December 31, September 30,
<S> 1999 1999
ASSETS <C> <C>
Cash and due from financial institutions $ 8,989,345 $ 6,315,747
Interest-bearing deposits in other financial
institutions - short term 5,630,657 5,746,195
Total cash and cash equivalents 14,620,002 12,061,942
Interest-bearing time deposits in
other financial institutions 1,100,000 1,000,000
Securities available-for-sale 34,454,705 38,170,143
Securities held to maturity 3,967,699 3,984,338
Federal Home Loan Bank (FHLB) stock, at cost 5,711,300 5,511,300
Loans held for sale, net of unrealized losses
of $601,218 at 12/31/99 and
$489,152 at 9/30/99 8,210,532 8,061,951
Loans receivable, net of allowance for
loan losses of $707,000 at 12/31/99 and
$638,465 at 9/30/99 280,351,838 269,464,085
Accrued interest receivable 1,481,497 1,363,318
Premises and equipment, net 4,533,441 4,413,409
Mortgage Servicing Rights, net of accumulated
amortization Of $65,059 at 12/31/99 an
$56,571 at 9/30/99 434,731 412,390
Investment in limited partnership 1,208,039 1,213,430
Other assets 511,455 797,380
TOTAL ASSETS $356,585,239 $346,453,686
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 7,866,686 $ 7,357,944
Savings, NOW and MMDA deposits 53,983,836 52,409,560
Other time deposits 141,383,579 141,639,885
Total deposits 203,234,101 201,407,389
Securities sold under agreements to repurchase 8,944,270 6,566,395
Other borrowings 111,225,750 104,225,750
Advances from borrowers for taxes and
insurance 1,086,925 2,111,183
Accrued expenses and other liabilities 676,902 961,339
Total Liabilities 325,167,948 315,272,056
Shareholders' Equity
Common Stock, 5,000,000 shared authorized;
shares issued: 1,689,417 - 12/31/99 and 9/30/99
shares outstanding: 1,412,549 - 12/31/99,
1,420,049 - 9/30/99 13,046,898 13,016,302
Retained earnings - substantially restricted 25,980,743 25,419,722
Accumulated other comprehensive income (loss),
net of tax (977,529) (717,823)
Unearned Employee Stock Ownership Plan
(ESOP) shares (172,963) (222,963)
Treasury Stock, 276,868 common shares-
12/31/99 269,368 common shares - 9/30/99 (6,459,858) (6,313,608)
Total shareholders' equity 31,417,291 31,181,630
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $356,585,239 $346,453,686
</TABLE>
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998
Three Months Ended December 31,
<TABLE>
<CAPTION>
1999 1998
<S> <C> <C>
Total interest income $6,519,790 $5,959,522
Total interest expense 3,684,777 3,626,081
</TABLE>
Net interest income 2,835,013 2,333,441
Provision for loan losses 75,000 45,000
Net interest income after
provision for loan losses 2,760,013 2,288,441
Total noninterest income 357,542 304,157
Total noninterest expense 2,010,105 1,466,857
Income before income taxes 1,107,450 1,125,741
Income tax expense 418,624 463,038
NET INCOME $688,826 $662,703
Basic earnings per common share $ .49 $ .46
Diluted earnings per common share .48 .45
January 19, 2000 Point of Contact: Charles J. Viater
President/CEO
MFB CORP. ANNOUNCES DIVIDEND INCREASE
AND STOCK REPURCHASE PROGRAM
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),(the
"Corporation"), parent company of MFB Financial (the "Bank"), announced
today that the Corporation has declared a cash dividend of $ .095 per share of
Common Stock for the quarter ended December 31, 1999. The dividend is payable
on February 15, 2000 to holders of record on February 1, 2000. "This dividend
represents a 5.6% increase over the dividend declared for the quarter ended
September 30, 1999 and is directly attributable to the continued growth in the
Bank's core earnings, " according to Charles J. Viater, President and CEO of
both the Corporation and the Bank.
In addition, the Board of Directors announced that they
have approved the repurchase, from time to time, on the open market of up to
5% of the Corporation's outstanding shares of common stock, without par value
("Common Stock"), or 70,000 such shares. Such purchases will be made subject to
market conditions in open market or block transactions. Repurchases may begin
as early as January 21, 2000.
According to Charles J. Viater, President of the Corporation,
the Board believes that the Corporation's shares are currently undervalued
by the market and that open market purchases will have the potential effect of
enhancing the book value per share and the potential for growth in earnings
per share of the Corporation's remaining outstanding shares.
The foregoing discussion contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, which
involve a number of risks and uncertainties. A number of factors could cause
results to differ materially from the objectives and estimates expressed in
such forward-looking statements. These factors include, but are not limited to,
anticipated market prices and prices actually paid by the Corporation for its
shares pursuant to the stock repurchase program announced herein. These factors
should be considered in evaluating any forward-looking statements, and undue
reliance should not be placed on such statements. The Corporation does not
undertake and specifically disclaims any obligation to update any forward-
looking statements to reflect occurrence of anticipated or unanticipated events
or circumstances after the date of such statements.
The Bank, with assets of $356.6 million as of December 31,1999
is a wholly owned subsidiary of MFB Corp., providing retail and business
financial services to the Michiana area through its main office in Mishawaka
and five banking centers located in St. Joseph and Elkhart counties.
