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 17, 2001
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 17, 2001 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 January 17, 2001.
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: January 24, 2001
January 17, 2001 Point of Contact: Charles J.Viater
MFB CORP. ANNOUNCES QUARTERLY EARNINGS
AND DIVIDEND INCREASE
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 $972,000 or $.70 diluted earnings per share
for the three months ended December 31, 2000 compared to $689,000 or $.48
diluted earnings per share for the three months ended December 31, 1999, an
increase of 41.1%.
Net interest income after provision for loan losses for the most
recent three month period totaled $2.9 million compared to $2.8 million
for the same period one year ago. During the three months ended December 31,
2000 total interest income increased by $1.2 million compared to the same
period one year ago, primarily as a result of a $38.0 million increase in
commercial loan receivables and a $6.4 million increase in consumer loan
receivables, which includes home equity term loans and lines of credit. Total
interest expense increased $952,000 during the three months ended December 31,
2000, as compared to the same period a year ago, reflecting both growth in
deposits and higher cost of funds. As significant growth in the commercial loan
portfolio continues, the provision for loan and lease losses was increased from
$75,000 for the period ended December 31, 1999 to $157,000 for the three months
ended December 31, 2000.
Noninterest income increased from $358,000 for the three months
ended December 31, 1999 to $661,000 for the most recent three month
period. This increase is 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 for both periods ended
December 31, 2000 and 1999 amounted to $2.0 million.
The Corporation has increased total assets from $396.0 million as of
September 30, 2000 to $402.6 million as of December 31, 2000, an increase of
$6.6 million (or 1.7%). Total cash and cash equivalents increased $7.9
million from $14.5 million to $22.4 million and total securities available
for sale increased $4.3 million from $41.6 million to $45.9 million during
the three month period ended December 31, 2000. Offsetting these increases
was the $5.4 million decrease in total net loans outstanding during this same
three month period.
Total liabilities increased from $363.5 million at September 30, 2000 to
$369.0 million at December 31, 2000 primarily as the result of the $9.3 million
increase in total deposits from $239.4 million to $248.7 million.
Federal Home Loan Bank advances were reduced $2.4 million from $112.2 million
to $109.8 million during the three month period.
Total shareholders' equity increased from $32.5 million as of September
30, 2000 to $33.5 million as of December 31, 2000 mainly from net income of
$972,000 and a $382,000 adjustment to reflect the increase in the market
value of securities available for sale, net of tax, offset by the repurchase
of 12,560 shares of outstanding common stock during this period at a cost of
$218,000 and cash dividend payments of $129,000.
While achieving substantial growth, the Corporation maintains asset
quality that compares favorably to its industry peer group. The ratio of
nonperforming assets to total assets at both December 31, 2000 and
September 30, 2000 was .02%.
In addition, MFB Corp. announced today that the Corporation has declared
a cash dividend of $ .10 per share of Common Stock for the quarter ended
December 31, 2000. The dividend is payable on February 13, 2001 to holders
of record on January 30, 2001. "This dividend represents a 5.3% increase
over the dividend declared for the quarter ended September 30, 2000 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.
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)
December 31, 2000 and September 30, 2000
(in thousands)
December 31, September 30,
2000 2000
ASSETS
Cash and due from financial institutions $ 12,260 $ 9,693
Interest-bearing deposits in other financial
institutions - short term 10,154 4,851
Total cash and cash equivalents 22,414 14,544
Securities available-for-sale 45,927 41,623
Federal Home Loan Bank (FHLB) stock, at cost 6,308 6,308
Loans held for sale, net unrealized losses
of $0 at 12/31/00 and $131,618 at 9/30/00 872 6,494
Loans receivable, net of allowance for loan
losses of $1,731,000 at 12/31/00 and
$1,672,000 at 9/30/00 315,769 315,506
Accrued interest receivable 2,279 1,894
Premises and equipment, net 4,743 4,688
Mortgage servicing rights, net 693 611
Investment in limited partnership 2,922 2,948
Other assets 624 1,387
TOTAL ASSETS $402,551 $396,003
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 12,114 $ 11,802
Savings, NOW and MMDA deposits 64,488 56,569
Other time deposits 172,127 171,023
Total deposits 248,729 239,394
Securities sold under agreements to repurchase 8,466 9,143
Federal Home Loan Bank advances 109,802 112,152
Advances from borrowers for taxes and
insurance 971 2,116
Accrued expenses and other liabilities 1,054 684
Total Liabilities 369,022 363,489
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417-12/31/00 and 9/30/00
shares outstanding: 1,346,489 - 12/31/00,
1,358,449 - 9/30/00 13,130 13,136
Retained earnings-substantially restricted 28,555 27,711
Accumulated other comprehensive income (loss),
net of tax (535) (916)
Treasury Stock, 342,928 common shares-12/31/00
330,968 common shares - 9/30/00 (7,621) (7,417)
Total shareholders' equity 33,529 32,514
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $402,551 $396,003
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 2000 AND 1999
(in thousands)
Three Months Ended December 31,
2000 1999
Total interest income $7,744 $6,520
Total interest expense 4,637 3,685
Net interest income 3,107 2,835
Provision for loan losses 157 75
Net interest income after provision
for loan losses 2,950 2,760
Total noninterest income 661 358
Total noninterest expense 2,049 2,010
Income before income taxes 1,562 1,108
Income tax expense 590 419
NET INCOME $972 $689
Basic earnings per common share $ .72 $ .49
Diluted earnings per common share .70 .48