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 26, 1998
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 26, 1998
concerning the First 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 January 26, 1998.
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: February 10, 1998
Exhibit 1
January 26, 1998 Point of Contact: Charles J. Viater
MFB CORP. ANNOUNCES FIRST QUARTER EARNINGS
AND INCREASED QUARTERLY DIVIDEND
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),(the
"Corporation"), parent company of MFB Financial (the "Bank"), today
reported consolidated net income of $502,000 or $.32 per share for the
three months ended December 31, 1997, compared to $476,000 or $.27 per share
for the three months ended December 31, 1996, an increase of 5.5%.
Net interest income after provision for loan losses for the
most recent three month period totaled $2.0 million compared to $1.8 million
for the same period one year ago. During the three months ended December 31,
1997 total interest income increased by $712,000 compared to the same period
one year ago, primarily as a result of a $28.9 million increase in first
mortgage loan receivables and a $13.6 million increase in commercial and
consumer loan receivables. Total interest expense increased $479,000
reflecting the growth in savings account deposits and borrowed funds.
Noninterest income increased from $113,000 for the three
months ended December 31, 1996 to $165,000 for the most recent three month
period, while noninterest expense increased from $1.1 million to $1.3 million
for the comparable periods. The $52,000 noninterest income increase is
primarily related to gains realized on the sale of mortgage loans during the
period, servicing income retained on those sold loans, and fees generated
through increased deposit account relationships and additional services offered
to the bank's customers. The noninterest expense increases are primarily
attributable to increased compensation and building expenses during the quarter
ended December 31, 1997.
The Corporation has increased total assets from $255.9
million as of September 30, 1997 to $264.1 million as of December 31,
1997, an increase of $8.2 million (or 3.2%). Total net loans have increased
from $200.9 million at September 30, 1997 to $208.2 million at December 31,
1997, an increase of $7.3 million (or 3.6%). The loan growth has been funded
primarily by the growth in total savings deposits, the decrease in securities
available for sale, and additional borrowings through Federal Home Loan Bank
advances.
Total shareholders' equity decreased from $33.6 million as
of September 30, 1997 to $33.5 million as of December 31, 1997 mainly as
a result of the Corporation's repurchase of 23,800 shares of
outstanding common stock during this period at a cost of $544,000, along with
the payment of cash dividends of $130,000 partially offset by $502,000 in net
income for the same period.
While achieving 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 December 31, 1997 was .09% compared to .02% as of December 31, 1996.
In addition, MFB Corp. announced today that the Corporation
has declared a cash dividend of $ .085 on each share of its Common Stock for
the quarter ended December 31, 1997. The dividend is payable on February 17,
1998 to holders of record on February 3, 1998. This is a 6.3% increase over the
dividend of $ .08 declared in October, 1997. .
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 four banking centers located in
St. Joseph and Elkhart counties.
MFB CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
December 31, 1997 and September 30, 1997
(in thousands)
December 31, September 30,
1997 1997
ASSETS
Cash and due from financial institutions $ 2,339 $ 2,906
Interest-bearing deposits in other financial
institutions 12,929 6,576
Cash and cash equivalents 15,268 9,482
Interest-bearing time deposits in other
financial institutions --- ---
Securities available-for-sale 34,476 39,628
Federal Home Loan Bank (FHLB) stock, at cost 2,675 2,400
Loans held for sale, net of unrealized losses
of $-0- in 1997 5,850 12,671
Loans receivable, net of allowance for loan losses
of $385,000 in 1997 and $348,000 in 1996 202,351 188,264
Accrued interest receivable 600 719
Premises and equipment, net 2,762 2,613
Other assets 115 144
TOTAL ASSETS $264,097 $255,921
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 2,356 $ 2,047
Savings, NOW and MMDA deposits 39,631 38,130
Other time deposits 131,444 131,710
Total deposits 173,431 $171,887
Securities sold under agreements to repurchase 1,695 389
Advances from borrowers for taxes and
insurance 905 1,854
FHLB advances 53,500 47,500
Accrued expenses and other liabilities 1,031 741
Total Liabilities 230,562 222,371
Shareholders' Equity
Common Stock 13,174 13,108
Retained earnings - substantially restricted 22,409 22,038
Unearned Employee Stock Ownership Plan (ESOP)
shares (610) (665)
Unearned Recognition and Retention Plan (RRP) shares (96) (115)
Net unrealized appreciation (depreciation) on
securities available-for sale, net of tax 91 73
Treasury Stock, 38,850 common shares,
at cost (1,433) (889)
---
Total shareholders' equity 33,535 33,550
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $264,097 $255,921
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996
(in thousands)
Three Months Ended December 31,
1997 1996
Total interest income $4,819 $4,107
Total interest expense 2,819 2,339
Net interest income 2,000 1,768
Provision for loan losses 15 7
Net interest income after provision for
loan losses 1,985 1,761
Total non-interest income 165 113
Total non-interest expense 1,278 1,084
Income before income taxes 872 790
Income tax expense 370 314
NET INCOME $502 $476
Basic Earnings Per Share $ .32 $ .27