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): April 17, 2002
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
April 17, 2002
concerning the Second 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 April 17, 2002.
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: April 23, 2002
April 17, 2002 Point of Contact: Charles J.Viater
President/CEO
MFB Corp. ANNOUNCES QUARTERLY EARNINGS,
QUARTERLY DIVIDEND DECLARATION AND STOCK REPURCHASE PROGRAM
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC), parent company
of MFB Financial , today reported consolidated net income on an unaudited basis
of $371,000 or $0.26 diluted earnings per share for the three months ended March
31, 2002 compared to $809,000 or $0.59 diluted earnings per share for the three
months ended March 31, 2001. MFB Corp's consolidated net income for the six
months ended March 31, 2002 of $1,270,000 or $0.92 diluted earnings per share
increased over the $674,000, or $0.49 diluted earnings per share reported for
the same period last year. MFB Corp's earnings for this year represent a return
on average common equity of 7.35% and a return on average assets of 0.61%.
In addition, Charles Viater, President and CEO announced
today that the Board of Directors has declared a cash dividend of $ .105 per
share of Common Stock for the quarter ended March 31, 2002. The dividend is
payable on May 14, 2002 to holders of record on April 30, 2002. This dividend
will be the 24th consecutive quarter of dividends paid to shareholders. Mr
Viater commented, "We are committed to generating long term value to our
shareholders and the payment of dividends is part of that commitment."
MFB Corp. also announced today that the Board of Directors has
approved the repurchase, from time to time, on the open market of up to 10% of
the Corporation's outstanding shares of common stock, without par value, or
approximately 130,000 shares. Such purchases will be made subject to market
conditions in open market or block transactions. Repurchases may begin as early
as April 22, 2002. According to Mr. Viater, the Board believes that the
Corporation's shares are currently undervalued by the market and that open
market purchases will have the potential effect of enhancing the book value per
share and the potential for growth in earnings per share of the Corporation's
remaining outstanding shares.
MFB Corp's net interest income before provision for loan losses for
the three month period ended March 31, 2002 totaled $2.9 million compared to
$3.0 million for the same period last year. Total interest income for the second
quarter decreased $1.3 million and total interest expense decreased $1.2 million
from the second quarter last year. These declines were the result of the overall
decline in interest rates. The provision for loan losses for the second quarter
ended March 31, 2002 was $452,000 compared to $150,000 for the second quarter
last year.
Noninterest income increased 26.0% from $605,000 for the second
quarter last year to $762,000 for this year. Significant growth occurred in
deposit fees and gains on sales of mortgage loans. Noninterest expense increased
19.5% from $2.2 million for the second quarter last year to $2.7 million for
this year primarily due to increases in salaries and employee benefits,
occupancy and equipment, and data processing expense.
MFB Corp's total assets of $421.6 million as of March 31,2002 were
2.3% higher than the $412.0 million last year. Total loans at March 31, 2002 of
$309.6 million represented a decline of $3.8 million from last year. Investment
securities increased from $49.9 million at March 31, 2001 to $61.0 million at
March 31, 2002.
Total liabilities increased 2.2% from $378.6 million at March 31,
2001 to $387.0 million at March 31, 2002. Total deposits decreased slightly from
$253.6 million last year to $253.5 million this year. Federal Home Loan Bank
advances increased from $114.8 million last year to $119.3 million this year.
Total shareholders' equity increased 3.7% from $33.4 million as of
March 31, 2001 to $34.6 million at March 31, 2002. MFB Corp's equity to asset
ratio was 8.21% at March 31, 2002 compared to 8.10% last year. The book value of
MFB Corp. stock increased from $24.69 at March 31, 2001 to $25.90 at March 31,
2002.
MFB Corp's reserve for loan losses at March 31, 2002 was 1.09% of
loans compared to 1.17% at March 31, 2001. The ratio of nonperforming assets to
loans was 1.30% at March 31, 2002 compared to 0.92% at March 31, 2001. MFB Corp.
recorded partial charge offs on two large credits totaling $1.9 million during
the second quarter ending March 31, 2002. A provision of $1.8 million to the
loan loss reserve was provided on one of these credits during the first quarter
of 2001.
... MFB Corp's wholly owned bank subsidiary, MFB Financial, provides retail and
small business financial services to the Michiana area through its seven banking
centers in St. Joseph and Elkhart counties. MFB Financial comprises over 99% of
the assets of MFB Corp.
The foregoing discussion contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995, which
involve a number of risks and uncertainties. A number of factors could cause
results to differ materially from the objectives and estimates expressed in such
forward-looking statements. These factors include, but are not limited to,
changes in economic conditions in the company's market area, changes in policies
by regulatory agencies, fluctuations in interest rates, demand for loans in the
company's market area, and competition, all or some of which could cause actual
results to differ materially from historical earnings and those presently
anticipated or projected. These factors should be considered in evaluating any
forward-looking statements, and undue reliance should not be placed on such
statements. The Corporation does not undertake and specifically disclaims any
obligation to update any forward-looking statements to reflect occurrence of
anticipated or unanticipated events or circumstances after the date of such
statements
MFB CORP. AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
March 31, 2002 and March 31, 2001
(in thousands, except share information)
March 31, March 31,
2002 2001
ASSETS
Cash and due from financial institutions $ 11,458 $ 10,525
Interest-bearing deposits in other financial institutions - short term 20,853 18,621
Total cash and cash equivalents 32,311
29,146
Interest-bearing time deposits in other financial institutions 1,000 2,500
Securities available-for-sale 61,041 49,895
Federal Home Loan Bank (FHLB) stock, at cost 6,308 6,308
Loans held for sale 1,236 1,810
Loans receivable 309,571 313,402
Less: allowance for loan losses (3,388)
(3,680)
Loans receivable, net 306,183 309,722
Accrued interest receivable 1,803 1,852
Premises and equipment, net 4,948 5,060
Mortgage servicing rights, net of accumulated amortization
of $420 at 3/31/2002 and $129 at 3/31/2001 1,396 747
Investment in limited partnership 2,785 2,915
Other assets
2,583 2,059
Total Assets $421,594
$412,014
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 15,395 $ 13,194
Savings, NOW and MMDA deposits 81,025 69,373
Other time deposits 157,109 171,024
Total deposits 253,529 253,591
Securities sold under agreements to repurchase 11,363 7,244
Federal Home Loan Bank advances 119,335 114,802
Advances from borrowers for taxes and insurance 1,592 1,989
Accrued expenses and other liabilities 1,157 1,017
Total Liabilities 386,976 378,643
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417 - 3/31/02 and 3/31/01
shares outstanding: 1,336,839 - 3/31/02, 1,351,789 - 3/31/01 12,940 13,037
Retained earnings - substantially restricted 30,084 28,123
Accumulated other comprehensive income (loss), net of tax (646) (307)
Treasury Stock, 352,578 common shares - 3/31/02
337,628 common shares - 3/31/01 (7,760) (7,482)
Total shareholders' equity 34,618 33,371
Total Liabilities and Shareholders' Equity $421,594 $412,014
MFB CORP. AND SUBSIDIARY
Consolidated Statements of Income (Unaudited)
Three Months and Six Months
Ended March 31, 2002 and
2001 (in thousands, except
per share information)
Three Months Ended Six Months Ended
March 31, March31, March 31, March 31,
2002 2001 2002 2001
Total interest income $6,304 $7,616 $13,029 $15,357
Total interest expense 3,442 4,622 7,158 9,258
Net interest income 2,862 2,994 5,871 6,099
Provision for loan losses 452 150 685 2,107
Net interest income after provision for loan losses 2,410 2,844 5,186 3,992
Total non-interest income 762 605 1,742 1,268
Total non-interest expense 2,666 2,231 5,016 4,279
Income before income taxes 506 1,218 1,912 981
Income tax expense 135 409 642 307
Net Income $371 $809 $1,270 $674
Basic Earnings per common share $ .28 $ .60 $ .95 $ .50
Diluted Earnings per common share $ .26 $ .59 $ .92 $ .49