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 18, 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 July 18,
2001 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 18, 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: August 9, 2001
July 18, 2001
Point Contact: Charles J.Viater
President/CEO
MFB Corp. ANNOUNCES QUARTERLY 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 $740,000 or $.54 diluted earnings per share for the three
months ended June 30, 2001 compared to $844,000 or $.61 diluted earnings per
share for the three months ended June 30, 2000. Net income for the nine months
ended June 30, 2001 was $1.4 million or $1.02 diluted earnings per share
compared to $2.3 million or $1.60 diluted earnings per share for the nine months
ended June 30, 2000.
Net interest income after provision for loan losses for the
most recent three and nine month periods totaled $2.7 million and $6.7 million
compared to $2.9 million and $8.5 million for the same periods one year ago.
During the nine months ended June 30, 2001 total interest income increased by
$1.9 million compared to the same period one year ago, primarily as a result of
increased volumes of commercial and consumer loans receivables, offset by lower
yields generated on these loans related to interest rate decreases in the
period. In the past nine months, commercial loan receivables increased $8.4
million and consumer loan receivables, which include home equity term loans and
lines of credit, increased $1.2 million, while residential mortgage loan
receivables decreased $15.2 million. Total interest expense increased $188,000
during the three months ended June 30, 2001, as compared to the same period a
year ago, reflecting the growth in deposits and FHLB advances. For the nine
months ended June 30, 2001, total interest expense increased $1.8 million. The
bank's provision for loan loss reserves was increased from $345,000 for the
period ended June 30, 2000 to $2.4 million for the period ended June 30, 2001.
The current year's provision includes a one-time addition of $1.8 million ($1.1
million after tax) that was established in December 2000 as a result of a
Chapter 11 bankruptcy filing by a commercial borrower.
Noninterest income increased from $569,000 and $1.2 million for the
three and nine months ended June 30, 2000 to $743,000 and $2.0 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, and net realized gains from
loan sales. Noninterest expenses increased from $2.2 million during the three
months ended June 30, 2000 to $2.3 million during the three months ended June
30, 2001 and from $6.1 million to $6.5 million for the comparable nine month
periods. The noninterest expense increases are primarily attributable to
staffing increases and expenses incurred in the offering of additional services
to the Bank's customers.
The Corporation has increased total assets from $396.0 million as of
September 30, 2000 to $418.5 million as of June 30, 2001, an increase of $22.5
million (or 5.7%). Total cash and cash equivalents increased $14.6 million from
$14.5 million to $34.0 million, total securities available for sale increased
$10.2 million from $41.6 million to $51.8 million, and time deposits in other
financial institutions increased $2.5 million during the nine month period ended
June 30, 2001. Offsetting these increases was the $11.0 million decrease in
total net loans outstanding during this same nine month period.
Total liabilities increased from $363.5 million at September 30, 2000
to $384.8 million at June 30, 2001 primarily as the result of the $12.9 million
increase in total deposits from $239.4 million to $252.3 million and the $7.5
million increase in Federal Home Loan Bank advances during the same period.
Accrued expenses and other liabilities increased $3.4 million from September 30,
2000 to June 30, 2001 due to the recognition of commitments to purchase
securities totaling $3.0 million at June 30, 2001. Securities sold under
repurchase agreements decreased $1.3 million during the same nine month period.
Total shareholders' equity increased from $32.5 million as of September
30, 2000 to $33.8 million as of June 30, 2001 mainly from net income of $1.4
million and a $641,000 adjustment to reflect the increase in the market value of
securities available for sale, net of tax. These increases were offset by the
repurchase of 30,760 shares of outstanding common stock during this period at a
cost of $564,000 and cash dividend payments of $400,000. Book value per common
share was $25.21 at June 30, 2001 compared to $23.93 at September 30, 2000.
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 June 30, 2001 was .67%.
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 June 30, 2001. The dividend is payable on August 14, 2001 to holders of
record on July 31, 2001. This dividend will be the 21st consecutive quarter of
dividends paid to shareholders.
The Bank is a wholly owned subsidiary of MFB Corp. providing
retail and small business financial services to the Michiana area through its
seven banking centers located in St. Joseph and Elkhart counties.
MFB CORP. AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
June 30, 2001 and September 30, 2000
(in thousands)
June 30, September 30,
2001 2000
ASSETS
Cash and due from financial institutions
$ 13,386 $ 9,693
Interest-bearing deposits in other financial institutions - short term
20,671 4,851
Total cash and cash equivalents
34,057 14,544
Interest-bearing time deposits in other financial institutions
2,516 -
Securities available-for-sale
51,814 41,623
Federal Home Loan Bank (FHLB) stock, at cost
6,308 6,308
Loans held for sale, net unrealized losses
of $3,712 at 6/30/01 and $131,618 at 9/30/00
3,097 6,494
Loans receivable, net of allowance for loan losses
of $3,805,000 at 6/30/01 and $1,672,000 at 9/30/00
307,862 315,506
Accrued interest receivable
1,830 1,894
Premises and equipment, net
5,219 4,688
Mortgage servicing rights, net
921 611
Investment in limited partnership
2,885 2,948
Other assets
2,038 1,387
Total Assets
$ 418,547 $396,003
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits
$ 13,230 $ 11,802
Savings, NOW and MMDA deposits
74,980 56,569
Other time deposits
164,042 171,023
Total deposits
252,252 239,394
Securities sold under agreements to repurchase
7,860 9,143
Federal Home Loan Bank advances
119,685 112,152
Advances from borrowers for taxes and insurance
866 2,116
Accrued expenses and other liabilities
4,117 684
Total Liabilities
384,780 363,489
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417 - 6/30/01 and 9/30/00
shares outstanding: 1,339,289 - 6/30/01, 1,358,449 - 9/30/00
13,037 13,136
Retained earnings - substantially restricted
28,727 27,711
Accumulated other comprehensive income (loss), net of tax
(275) (916)
Treasury Stock, 350,128 common shares - 6/30/01
330,968 common shares - 9/30/00
(7,722) (7,417)
Total shareholders' equity
33,767 32,514
Total Liabilities and Shareholders' Equities
$418,547 $396,003
MFB CORP. AND SUBSIDIARY
Consolidated Statement of Income (Unaudited)
Three Months and Nine Months Ended June 30, 2001 and 2000
(in thousands)
Three Months Ended June 30, Nine Months Ended June30,
2001 2000 2001 2000
Total interest income $7,398 $7,405 $22,761 $20,818
Total interest expense 4,467 4,279 13,726 11,935
Net interest income 2,931 3,126 9,035 8,883
Provision for loan losses 261 190 2,368 345
Net interest income after provision for loan losses 2,670 2,936 6,667 8,538
Total non-interest income 743 569 2,006 1,222
Total non-interest expense 2,268 2,160 6,547 6,149
Income before income taxes 1,145 1,345 2,126 3,611
Income tax expense 405 501 712 1,354
Net Income $740 $844 $1,414 $2,257
Basic Earnings per common share $ .55 $ .62 $ 1.05 $ 1.63
Diluted Earnings per common share $ .54 $ .61 $ 1.02 $ 1.60