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): July 19, 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 July 19, 2000 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 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: July 26, 2000
July 19, 2000 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 $844,000 or $ .60 diluted earnings per common
share for the three months ended June 30, 2000, compared to $365,000 or
$ .25 diluted earnings per common share for the three months ended June 30,
1999, an earnings per share increase of 140.00%. Net income for the nine
months ended June 30, 2000 was $2,257,000 or $1.60 diluted earnings per
share compared to $1,622,000 or $1.10 diluted earnings per share for
the nine months ended June 30, 1999, representing a 45.5% year to date
earnings per share increase.
Net interest income after provision for loan losses for the most recent
three and nine month periods totaled $2.9 million and $8.5 million compared
to $2.4 million and $7.0 million for the same periods one year ago. During
the three months ended June 30, 2000 total interest income increased by
$1.3 million compared to the same period one year ago, primarily as a
result of increased volumes of loan receivable, particularly commercial
and consumer loans. Commercial and consumer loan receivables, including
home equity and second mortgage loans, increased $47.3 million and mortgage
loan receivables increased $18.2 million from June 30, 1999 to June 30,
2000. Total interest expense increased $671,000 reflecting the growth in
savings account deposits and borrowed funds. For the nine months ended
June 30, 2000 total interest income increased $2.8 million while total
interest expense increased $1.1 million.
Noninterest income increased from $258,000 and $848,000 for the three and
nine months ended June 30, 1999 to $569,000 and $1.2 million for the most
recent three and nine month periods. These increases are primarily due to
fees generated from the increasing number of core deposit account
relationships, income generated from the Bank's trust department, net
gains from loan sales and the servicing fees retained on these sold loans.
Noninterest expenses increased from $2.0 million during the three months
ended June 30, 1999 to $2.2 million during the three months ended June 30,
2000, and from $5.1 million to $6.1 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. During the quarter ended June 30, 1999,
the Bank incurred a $268,000 after tax noninterest expense reflecting the
proper recognition of changes in the market value of loans held for sale.
The Corporation has increased total assets from $346.5 million as of
September 30, 1999 to $390.2 million as of June 30, 2000, an increase of
$43.8 million (or 12.6%). Total net loans increased from $277.5 million to
$317.0 million during this same nine month period, an increase of $39.5
million (or 14.2%). The loan growth has been funded primarily by the growth
in savings and checking account deposits and additional borrowings through
Federal Home Loan Bank advances.
Total shareholders' equity increased from $31.2 million as of September 30,
1999 to $32.2 million as of June 30, 2000 mainly from net income of $2.3
million offset by the repurchase of 49,600 shares of outstanding common
stock during this period at a cost of $870,000 and cash dividend payments of
$393,000.
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, 2000 was .01%
compared to .07% as of June 30, 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 June 30, 2000. The dividend is payable on August 15, 2000 to holders
of record on August 1, 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)
June 30, 2000 and September 30, 1999
(in thousands)
June 30, September 30,
2000 1999
ASSETS
Cash and due from financial institutions $ 9,951 $ 6,316
Interest-bearing deposits in other financial
institutions - short term 2,175 5,746
Total cash and cash equivalents 12,126 12,062
Interest-bearing time deposits in other financial
institutions - 1,000
Securities available-for-sale 24,807 38,170
Securities held to maturity 18,750 3,984
Federal Home Loan Bank (FHLB) stock, at cost 6,308 5,511
Loans held for sale, net - 8,062
Loans receivable, net 316,965 269,464
Accrued interest receivable 2,065 1,364
Premises and equipment, net 4,617 4,414
Mortgage Servicing Rights, net 529 412
Investment in limited partnership 2,974 1,213
Other assets 1,071 798
Total Assets $390,212 $346,454
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 12,179 $ 7,358
Savings, NOW and MMDA deposits 58,048 52,409
Other time deposits 160,552 141,640
Total deposits 230,779 201,407
Securities sold under agreements to repurchase 6,803 6,566
Other borrowings 118,152 104,226
Advances from borrowers for taxes and insurance 1,218 2,111
Accrued expenses and other liabilities 1,105 962
Total Liabilities 358,057 315,272
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417 - 6/30/00 and 9/30/99
shares outstanding: 1,370,449 - 6/30/00,
1,420,049 - 9/30/99 13,092 13,016
Retained earnings - substantially restricted 27,284 25,420
Accumulated other comprehensive income (loss),
net of tax (965) (718)
Unearned Employee Stock Ownership Plan (ESOP) shares (73) (223)
Treasury Stock, 318,968 common shares - 6/30/00
269,368 common shares - 9/30/99 (7,183) (6,313)
Total shareholders' equity 32,155 31,182
Total Liabilities and Shareholders' Equities $390,212 $346,454
MFB CORP. AND SUBSIDIARY
Consolidated Statement of Income (Unaudited)
Three Months and Nine Months Ended June 30, 2000 and 1999
(in thousands)
Three Months Ended Nine Months Ended
June 30, June 30,
2000 1999 2000 1999
Total interest income $7,405 $6,075 $20,818 $17,992
Total interest expense 4,279 3,608 11,935 10,823
Net interest income 3,126 2,467 8,883 7,169
Provision for loan losses 190 65 345 155
Net interest income after provision
for loan losses 2,936 2,402 8,538 7,014
Total non-interest income 569 258 1,222 848
Total non-interest expense 2,160 2,023 6,149 5,084
Income before income taxes 1,345 637 3,611 2,778
Income tax expense 501 272 1,354 1,156
Net Income $844 $365 $2,257 $1,622
Basic Earnings per common share $ .62 $ .26 $ 1.63 $ 1.14
Diluted Earnings per common share $ .60 $ .25 $ 1.60 $ 1.10