MSB FINANCIAL, INC. REPORTS EARNINGS
FOR SECOND QUARTER
Marshall, Michigan, January 20, 2004/Business Wire/ -- MSB Financial, Inc. (Nasdaq SmallCap: MSBF), the holding company for Marshall Savings Bank, FSB, with its fiscal year ending June 30, 2004, today reported financial results for the three and six month periods ended December 31, 2003.
Net income for the three month period ended December 31, 2003 totaled $145,000, or $.11 per diluted share, compared to $454,000, or $.35 per diluted share for the same period the previous year, a decrease of 68.1%. For the six month period ended December 31, 2003, net income totaled $476,000, or $.36 per diluted share, compared to $923,000, or $.74 per diluted share for the same period the previous year, a decrease of 48.4%. The decrease in net income for the stated periods was primarily the result of decreased income from gain on sale of loans and fees related to decreased secondary market activity, as well as payment of professional fees totaling $127,500 paid during the six month period, which is associated with the pending merger with Monarch Community Bancorp.
Net interest income for the three month period ended December 31, 2003 decreased 19.2% to $851,000, compared to $1.1 million for the same period last year. Net interest income for the six month period ended December 31, 2003 decreased 17.0% as compared to the same period the previous year. Contributing to decreases in net interest income were adjustable rate loans repricing at lower interest rates during the stated periods.
Noninterest income totaled $390,000 for the three month period ended December 31, 2003, compared to $650,000 for the same period the previous year, a decrease of 40%. For the six month period ended December 31, 2003, noninterest income totaled $926,000, compared to $1.2 million for the same period last year, a decrease of 23.3%. This decrease was primarily due to decreased secondary market activity during the stated periods, resulting in reduced gain on sale of loans and loan fee income.
Noninterest expense increased $11,000 and $27,000 for the three and six month periods ended December 31, 2003, respectively, as compared to the same periods the previous year. The primary reason for the above increases were payment of the previously mentioned professional fees totaling $127,500 associated with the pending Monarch Community Bancorp merger transaction.
Net loans, including loans held for sale, decreased $1.9 million from June 30, 2003, as management felt it prudent, given the low interest rate environment, to sell fixed rate loan originations in the secondary market.
At December 31, 2003, deposits totaled $69.1 million, a decrease of $3.7 million from June 30, 2003.
Total assets of MSB Financial, Inc., as of December 31, 2003 were $94.9 million, compared to total assets at June 30, 2003 of $103.2 million. Shareholders equity totaled $15.5 million, or $11.84 per share, as of December 31, 2003.
Condensed Consolidated Statements of Financial Condition
(Unaudited)
| December 31, 2003 | June 30, 2003 | |
| (Dollars in thousands) | ||
| ASSETS | ||
| Cash and cash equivalents | $ 4,145 | $ 4,658 |
| Securities available for sale | 8,708 | 15,920 |
| Loans, net | 72,258 | 4,139 |
| Other assets | 9,780 | 8,496 |
| Total Assets | $ 94,891 | $103,213 |
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||
| Deposits | $69,067 | $72,805 |
| Borrowings | 9,326 | 11,301 |
| Other liabilities | 1,025 | 3,877 |
| Total Liabilities | $79,418 | $87,983 |
| Total Shareholders' Equity | 15,473 | 15,230 |
| Total Liabilities and Shareholders' Equity | $ 94,891 | $103,213 |
Condensed Consolidated Statements of Income
| Six months ended December 31 | Three months ended December 31 | |||
| 2003 | 2002 | 2003 | 2002 | |
| (Dollars in thousands) | ||||
| Interest income | $ 2,596 | $ 3,288 | $ 1,260 | $ 1,602 |
| Interest expense | 853 | 1,187 | 409 | 549 |
| Net interest income | 1,743 | 2,101 | 851 | 1,053 |
| Provision for loan losses | 50 | 65 | 20 | 50 |
| Net interest income after provision for loan losses | 1,693 | 2,036 | 831 | 1,003 |
| Noninterest income | 926 | 1,207 | 390 | 650 |
| Noninterest expense | 1,848 | 1,821 | 955 | 944 |
| Income before federal income tax expense | 771 | 1,422 | 266 | 709 |
| Federal income tax expense | 295 | 499 | 121 | 255 |
| Net income | $ 476 | $ 923 | $ 145 | $ 454 |
| Basic earnings per share | $ 0.37 | $ 0.75 | $ 0.11 | $ 0.35 |
| Diluted earnings per share | $ 0.36 | $ 0.74 | $ 0.11 | $ 0.35 |
CONTACT: MSB Financial
Charles B. Cook, 269/781-5103
www.marshallsavings.com
KEYWORD: MICHIGAN
INDUSTRY KEYWORD: BANKING EARNINGS
SOURCE: MSB Financial
