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): OCTOBER 18, 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
October 18, 2000 concerning the Annual 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 October 18, 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: October 20, 2000
October 18, 2000 Point of Contact: Charles J. Viater
MFB CORP. ANNOUNCES ANNUAL EARNINGS
AND QUARTERLY DIVIDEND
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),(the "Corporation"),
parent company of MFB Financial (the "Bank"), today reported consolidated net
income on an unaudited basis of $2.8 million or $1.98 diluted earnings per
share for the fiscal year ended September 30, 2000 compared to
$2.2 million of $1.51 diluted earnings per share for the year ended September
30, 1999, representing a 31.1% year to date earnings per share increase. Net
income for the three months ended September 30, 2000 was $558,000 or $ .40
diluted earnings per common share compared to $582,000 or $ .41 diluted
earnings per common share for the comparable period ended
September 30, 1999.
Net interest income after provision for loan losses for the
most recent three and twelve month periods totaled $2.4 million and $10.9
million compared to $2.6 million and $9.6 million for the same periods one year
ago. During the three months ended September 30, 2000 total interest income
increased by $1.4 million compared to the same period one year ago. This
increase was due to both increased volumes of loans receivable, particularly
commercial and consumer loans, and higher yields generated on the entire loan
portfolio. Commercial and consumer loan receivables, including home equity and
second mortgage loans, increased $53.7 million from September 30, 1999 to
September 30, 2000. Total interest expense increased $912,000 during the three
months ended September 30, 2000, as compared to the same period a year ago,
reflecting the growth in deposits and borrowed funds. For the twelve months
ended September 30, 2000 total interest income increased $4.3 million while
total interest expense increased $2.0 million.
The provision for loan and lease losses is determined in conjunction with
management's review and evaluation of current economic conditions,changes in
the character and size of the loan and lease portfolio, delinquencies (current
status as well as past and anticipated trends) and adequacy of collateral
securing delinquencies, historical and estimated net charge-offs and other
pertinent information. During the fiscal year ended September 30, 2000 the Bank
experienced significant growth in the commercial loan portfolio. Total
commercial loans at September 30, 2000 were $91.1 million compared to $47.4
million at September 30, 1999, a 92.2% increase. In addition, the Bank
continued to improve its loan review and risk assessment procedures. Based on
these factors, management concluded that an increase in the provision for loan
and lease losses was appropriate and a one-time $600,000 addition was made to
the allowance for loan losses reserve during the quarter ended September 30,
2000.
Noninterest income increased from $372,000 and $1.2 million for
the three and twelve months ended September 30, 1999 to $623,000 and $1.8
million for the most recent three and twelve 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 $1.9 million during the three months ended
September 30, 1999 to $2.1 million during the three months ended September 30,
2000, and from $7.0 million to $8.3 million for the comparable twelve 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 Bank's customers.
The Corporation has increased total assets from $346.5 million as
of September 30, 1999 to $396.0 million as of September 30, 2000, an
increase of $49.5 million (or 14.3%). Total net loans increased from $277.5
million to $322.0 million during this same twelve month period, an increase of
$44.5 million (or 16.0%). The loan growth has been funded primarily by the
growth in deposits and additional borrowings through Federal Home Loan Bank
advances.
Total shareholders' equity increased from $31.2 million as of
September 30, 1999 to $32.5 million as of September 30, 2000 mainly from net
income of $2.8 million offset by the repurchase of 61,600 shares of outstanding
common stock during this period at a cost of $1.1 million and cash dividend
payments of $553,000.
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 September
30, 2000 was .02% compared to .06% as of September 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 September 30, 2000. The dividend is payable on November 14, 2000
to holders of record on October 31, 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)
September 30, 2000 and September 30, 1999
(in thousands)
September 30, September 30,
2000 1999
ASSETS
Cash and due from financial institutions $ 9,693 $ 6,316
Interest-bearing deposits in other financial
institutions - short term 4,851 5,746
Total cash and cash equivalents 14,544 12,062
Interest-bearing time deposits in other
financial institutions - 1,000
Securities available-for-sale 40,663 38,170
Securities held to maturity 1,000 3,984
Federal Home Loan Bank (FHLB) stock, at cost 6,308 5,511
Loans held for sale, net 6,626 8,062
Loans receivable, net 315,374 269,464
Accrued interest receivable 1,895 1,363
Premises and equipment, net 4,688 4,413
Mortgage servicing rights, net 611 412
Investment in limited partnership 2,948 1,213
Other assets 1,371 798
TOTAL ASSETS $396,028 $346,454
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 11,802 $ 7,358
Savings, NOW and MMDA deposits 56,569 52,409
Other time deposits 171,023 141,640
Total deposits 239,394 201,407
Securities sold under agreements to
repurchase 9,143 6,566
Other borrowings 112,152 104,226
Advances from borrowers for taxes and
insurance 2,116 2,111
Accrued expenses and other liabilities 684 962
Total Liabilities 363,489 315,272
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417 - 9/30/00 and 9/30/99
shares outstanding: 1,358,449 - 9/30/00,
1,420,049 - 9/30/99 13,136 13,016
Retained earnings-substantially restricted 27,711 25,420
Accumulated other comprehensive income (loss),
net of tax (892) (718)
Unearned Employee Stock Ownership Plan
(ESOP) shares - (223)
Treasury Stock, 330,968 common shares-9/30/00
269,368 common shares - 9/30/99 (7,416) (6,313)
Total shareholders' equity 32,539 31,182
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $396,028 $346,454
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
THREE MONTHS AND TWELVE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(in thousands)
Three Months Ended Twelve Months Ended
September 30, September 30,
2000 1999 2000 1999
Total interest income $7,696 $6,262 $28,514 $24,254
Total interest expense 4,538 3,625 16,473 14,448
Net interest income 3,158 2,637 12,041 9,806
Provision for loan losses 761 75 1,106 230
Net interest income after
provision for loan losses 2,397 2,562 10,935 9,576
Total non-interest income 623 372 1,845 1,220
Total non-interest expense 2,123 1,923 8,272 7,006
Income before income taxes 897 1,011 4,508 3,790
Income tax expense 339 429 1,693 1,586
NET INCOME $558 $582 $2,815 $2,204
Basic Earnings per common share $ .41 $ .42 $ 2.03 $ 1.56
Diluted Earnings per common share $ .40 $ .41 $ 1.98 $ 1.51