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 16, 1997
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 16, 1997 concerning the Second Quarter Earnings Announcement is
incorporated herein by reference and is attached hereto as Exhibit 1.
Pursuant to General Instruction F to Form 8-K, the press release issued
April 18, 1997 concerning the cash dividend announcement is incorporated by
reference and is attached hereto as Exhibit 2.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit 1 -- Press Release dated April 16, 1997.
Exhibit 2 -- Press Release dated April 18, 1997.
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 18, 1997
Exhibit 1.
April 16, 1997 Point of Contact: Charles J. Viater
MFB Corp. ANNOUNCES SECOND QUARTER EARNINGS
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),(the "Corporation),
parent company of MFB Financial (the "Bank"), today reported consolidated net
income of $522,000 or $.30 per share for the three months ended March 31,
1996, compared to $396,000 or $.20 per share for the three months ended
March 31, 1996, an increase of 31.8%. Net income for the six months ended
March 31, 1997 was $998,000 compared to $748,000 for the six months ended
March 31, 1996, an increase of 33.4%.
Net interest income after provision for loan losses for the most
recent three and six month periods total $1.84 million and $3.60 million
respectively compared to $1.46 million and $2.83 million for the same periods
one year ago. During the three months ended March 31, 1997 total interest
income increased by $870,000 compared to the same period one year ago
primarily as a result of a $37.8 million increase in first mortgage loan
receivables and a $5.4 million increase in consumer and commercial loan
receivables. Total interest expense increased $495,000 reflecting the growth
in savings account deposits and borrowed funds. For the six months ended
March 31, 1997 total interest income increased $1.8 million while total
interest expense increased $1.0 million.
Noninterest income decreased from $121,000 for the three months
ended March 31, 1996 to $85,000 for the three months ended March 31, 1997,
while there was no significant change for the comparable six month periods
ending March 31. Noninterest expense increased from $924,000 during the
three months ended March 31, 1996 to $1.1 million during the three months
ended March 31, 1997, and from $1.8 million to $2.1 million for the
comparable six month periods ending March 31. These noninterest expense
increases are primarily related to increased compensation expenses and
expenses related to the Bank's name change which took effect November 1,
1996.
The Corporation has increased total assets from $225.8 million as
of September 30, 1996 to $234.3 million as of March 31, 1997, an increase of
$8.5 million (or 3.8%). "Asset growth allows us to better leverage our
capital position and enhance shareholder value," according to Charles J.
Viater, President and CEO of the company. "Loan demand has been strong," he
added. Total net loans have increased from $152.1 million at September 30,
1996 to $174.3 million at March 31, 1997, an increase of $22.2 million
(or 14.6%). The loan growth has been funded primarily by a growth in total
savings deposits of $4.4 million and a $13.8 million decrease in securities
available for sale.
Total shareholders' equity decreased from $37.6 million as of
September 30, 1996 to $34.0 million as of March 31, 1997 mainly as a result
of the Corporation's repurchase of 241,963 shares of outstanding common
stock during this period at a cost of $4.5 million, partially offset by
$1.0 million in net income for the same period.
While achieving this 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 March 31, 1997 was
.03% compared to .05% as of March 31, 1996.
The Bank is a wholly owned subsidiary of MFB Corp. providing retail
and small business financial services to the South Bend/Mishawaka area
through its main office in Mishawaka and three branches throughout the
community.
MFB CORP. AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
March 31, 1997 and September 30, 1996
(in thousands)
March 31, September 30,
1997 1996
ASSETS
Cash and due from financial institutions $ 2,237 $ 1,734
Interest-earning deposits in other
financial institutions --- ---
Cash and cash equivalents 2,237 1,734
Interest-earning time deposits in other
financial institutions --- 495
Securities available-for-sale 52,922 66,763
Federal Home Loan Bank stock 1,675 1,336
Total loans 174,662 152,392
Less allowance for loan losses (355) (340)
Loans receivable, net 174,307 152,052
Accrued interest receivable 680 818
Premises and equipment, net 2,314 1,969
Other assets 155 642
Total Assets $234,290 $225,809
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits $163,322 $158,965
Advances from borrowers for taxes and insurance 2,007 1,864
FHLB advances 34,500 24,500
Accrued expenses and other liabilities 474 2,881
Total Liabilities 200,303 188,210
Shareholders' Equity
Common Stock 13,928 18,317
Retained earnings 21,303 20,589
Employee stock ownership plan (786) (894)
Recognition and retention plans (154) (193)
Net unrealized depreciation on securities
available-for sale, net of tax (304) (220)
Total shareholders' equity 33,987 37,599
Total Liabilities and Shareholders' Equities $234,290 $225,809
MFB CORP. AND SUBSIDIARY
Consolidated Statement of Income (Unaudited)
Three Months and Six Months Ended March 31, 1997 and 1996
(in thousands)
Three Months Ended Six Months Ended
March 31, March 31,
1997 1996 1997 1996
Total interest income $4,270 $3,400 $8,377 $6,615
Total interest expense 2,427 1,932 4,766 3,766
Net interest income 1,843 1,468 3,611 2,849
Provision for loan losses 8 7 15 15
Net interest income after provision
for loan losses 1,835 1,461 3,596 2,834
Total non-interest income 85 121 198 204
Total non-interest expense 1,055 924 2,139 1,795
Income before income taxes 865 658 1,655 1,243
Income tax expense 343 262 657 495
Net Income $522 $396 $998 $748
Earnings per common and
common equivalent share $ .30 $ .20 $ .57 $ .37
Earnings per share assuming
full dilution $ .30 $ .20 $ .57 $ .37
Exhibit 2.
April 18, 1997 Point of Contact: Charles J. Viater
President/CEO
MFB Corp. ANNOUNCES QUARTERLY DIVIDEND
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),(the "Corporation"), parent
company of MFB Financial (the "Bank") based in Mishawaka, Indiana, announced
today that the Corporation has declared a cash dividend of $.08 on each share
of its Common Stock for the quarter ended March 31, 1997. The dividend is
payable on May 13, 1997 to holders of record on April 29, 1997.
"The continued improvement in our core earnings during the most recently
completed quarter warrants the declaration of this dividend to shareholders,"
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. with assets of
$235 million as of March 31, 1997.