MSB FINANCIAL, INC. REPORTS EARNINGS
FOR THIRD QUARTER
Marshall, Michigan, April 17, 2003/Business Wire/ -- MSB Financial, Inc. (Nasdaq SmallCap: MSBF), the holding company for Marshall Savings Bank, FSB, with its fiscal year ending June 30, 2003, today reported financial results for the three and nine month periods ended March 31, 2003.
Net income for the three month period ended March 31, 2003 totaled $476,000, or $.37 per diluted share, compared to $316,000, or $.25 per diluted share for the same period the previous year, an increase of 50.6%. For the nine month period ended March 31, 2003, net income totaled $1.4 million, or $1.10 per diluted share, compared to $1.2 million, or $.97 per diluted share for the same period the previous year, an increase of 16.7%.
Net interest income for the three month period ended March 31, 2003 increased 4.9% to $1.0 million, compared to $955,000 for the same period last year. Net interest income for the nine month period ended March 31, 2003 increased 6.3% over the same period the previous year. Contributing to increases in net interest income were deposit accounts repricing at lower interest rates and a reduction in FHLB advances resulting in lower interest expense.
Noninterest income totaled $574,000 for the three month period ended March 31, 2003, compared to $319,000 for the same period the previous year, an increase of 79.9%. For the nine month period ended March 31, 2003, noninterest income totaled $1.8 million, compared to $1.1 million for the same period last year, an increase of 63.1%. This increase was primarily due to increases in gain on sale of loans and deposit account fees during the above periods.
Noninterest expense increased $77,000 and $529,000 for the three and nine month periods ended March 31, 2003, respectively, as compared to the same periods the previous year. These increases were primarily the result of the purchase and operation of a branch office location in March 2002, as well as increased real estate owned expenses.
Net loans, including loans held for sale, decreased $5.4 million from June 30, 2002, as management felt it prudent, given the low interest rate environment, to sell fixed rate loan originations in the secondary market. Non-performing loans at March 31, 2003 totaled $1.2 million, compared to $707,000 at June 30, 2002.
Total assets of MSB Financial, Inc. as of March 31, 2003 were $103.2 million, compared to total assets at June 30, 2002 of $108.2 million. At March 31, 2003 deposits totaled $73.3, million, a decrease of $1.0 million from June 30, 2002. Shareholders equity totaled $14.9 million, or $11.47 per share, as of March 31, 2003.
NEXT PAGEMSB FINANCIAL, INC.
SUMMARY OF FINANCIAL HIGHLIGHTS
Unaudited
Condensed Consolidated Statements of Financial Condition
| March 31, 2003 | June 30, 2002 | |
| (Dollars in thousands) | ||
| ASSETS | ||
| Cash and cash equivalents | $7,889 | $4,673 |
| Securities available for sale | 8,850 | 11,147 |
| Loans, net | 77,916 | 83,428 |
| Other assets | 8,562 | 8,907 |
| Total Assets | $ 103,217 | $108,155 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Deposits | $ 73,313 | $ 74,340 |
| Borrowings | 11,558 | 15,438 |
| Other liabilities | 3,420 | 2,319 |
| Total Liabilities | $ 88,291 | $ 92,097 |
| Total Shareholders' Equity | 14,926 | 16,058 |
| Total Liabilities and Shareholders' Equity | $ 103,217 | $108,155 |
Condensed Consolidated Statements of Income
| Nine months ended March 31 | Three months ended March 31 | |||
| 2003 | 2002 | 2003 | 2002 | |
| (Dollars in thousands) | ||||
| Interest income | $ 4,783 | $ 5,202 | $ 1,495 | $ 1,631 |
| Interest expense | 2,282 | 1,680 | 493 | 676 |
| Net interest income | 3,103 | 2,920 | 1,002 | 955 |
| Provision for loan losses | 110 | 61 | 45 | 12 |
| Net interest income after provision for loan losses | 2,993 | 2,859 | 957 | 943 |
| Noninterest income | 1,781 | 1,092 | 574 | 319 |
| Noninterest expense | 2,657 | 2,128 | 836 | 759 |
| Income before federal income tax expense | 2,117 | 1,823 | 695 | 503 |
| Federal income tax expense | 718 | 624 | 219 | 187 |
| Net income | $ 1,399 | $ 1,199 | $ 476 | $ 316 |
| Basic earnings per share | $ 1.11 | $ 0.99 | $ 0.37 | $ 0.26 |
| Diluted earnings per share | $ 1.10 | $ 0.97 | $ 0.37 | $ 0.25 |
CONTACT: MSB Financial
Charles B. Cook, 269/781-5103
www.marshallsavings.com
