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MFB Corp
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February 28, 2007


VIA EDGAR

Mr. John P. Nolan
Accounting Branch Chief
Securities and Exchange Commission
100 F Street, N.E.
Washington, D.C. 20549

         Re:      Response to letter dated February 16, 2007
                  MFB Corp.
                  Form 10-K for the fiscal year ended September 30, 2006
                  Filed December 22, 2006
                  File No. 1-12279


Dear Mr. Nolan:

We are writing to provide you with the proposed future disclosures as referenced
in the Comment Letter noted above.

Comment

Form 10-K for the fiscal year ended September 30, 2006:

Business

Non-performing and Classified Assets

1. We note your response to comment one of our letter dated January 26, 2007. In
future filings, please describe the policies and procedures in place that
provide for current and reliable information regarding the collectibility of
your commercial loans. Your disclosure should address the typical communications
between the loan officer and debtor, monitoring of the status and key financial
information of the debtor, obtaining updated financial information from debtors
and any guarantors, and reviews of collateral. Please provide us with you
proposed future disclosure.

Response

In addition to the information already included in the Business section of the
Form 10-K titled Non-performing and Classified Assets, we will include in future
filings, the following information:

The timing and frequency of reviews of collateral and appraisals varies on a
case by case basis and is contingent upon the circumstances and specific
reliance on collateral for each credit. Initially the timing is discussed and
established during approval of a loan by the loan committee and reviews may
include accounts receivable, accounts payable, equipment appraisals, real estate
appraisals, savings instruments in our possession and equities. We require
updated financial reports, including balance sheet and profit and loss
statements, with a strong preference for audited statements, monthly to
quarterly when possible and depending on the credit and industry involved.
Accounts receivable, accounts payable, aging reports, borrowing base
certificates and other financial reports are collected monthly to quarterly
where appropriate. We review personal financial statements annually for
guarantors and tax returns annually for small business owners.

The typical communications between the loan officer and the debtor are over the
phone and/or face to face, either at the customer's place of business or in our
facility, and include communication with key personnel of the customer. This
communication takes place daily to monthly depending on the type of
communication needed.


MFB acknowledges that we are responsible for the adequacy and accuracy of the
disclosure in the filing; and that staff comments or changes to disclosure in
response to staff comments do not foreclose the Commission from taking any
action with respect to the filing; and that we may not assert staff comments as
a defense in any proceeding initiated by the Commission or any person under the
federal securities laws of the United States.

Please contact the undersigned at 574-273-7618 or by email at
terry.clark@mfbbank.com should you require any additional information or have
any further questions.

Very truly yours,



/s/ Terry L. Clark
Terry L. Clark
Executive Vice President
Chief Financial Officer