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 22, 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
July 22, 1998 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 22, 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: July 30, 1998
July 22, 1998 Point of Contact: Charles J. Viater
MFB CORP. ANNOUNCES THIRD QUARTER EARNINGS
AND QUARTERLY DIVIDEND
Mishawaka, Indiana - MFB Corp. (NASDAQ/MFBC),
(the"Corporation"), parent company of MFB Financial (the "Bank"),
today reported consolidated net income of $488,000 or $ .30 earnings per
share for the three months ended June 30, 1998, compared to $508,000 or
$ .30 earnings per share for the three months ended June 30, 1997. Net
income for the nine months ended June 30, 1998 was $1,656,000 or $1.02
earnings per share compared to $1,506,000 or $ .87 earnings per share for
the nine months ended June 30,1997, an increase of 9.96%.
Net interest income after provision for loan losses for the most recent
three and nine month periods totaled $2.2 million and $6.4 million compared
to $1.9 million and $5.5 million for the same periods one year ago.
During the three months ended June 30, 1998 total interest income increased
by $880,000 compared to the same period one year ago, primarily as a result
of a $29.1 million increase in first mortgage loan receivables and a $23.0
million increase in commercial and consumer loan receivables. Total
interest expense increased $549,000 reflecting the growth in savings
account deposits and borrowed funds. For the nine months ended June 30, 1998
total interest income increased $2.5 million while total interest expense
increased $1.6 million.
Noninterest income increased from $108,000 and $306,000 for the three and
nine months ended June 30, 1997 to $182,000 and $509,000 for the most recent
three and nine month periods. These increases are primarily due to fees
generated from the growing number of core deposit account relationships
and the additional services offered to the bank's customers, along with
servicing fees retained on sold loans. Noninterest expenses, primarily
compensation and building expenses, increased from $1.2 million during
the three months ended June 30, 1997 to $1.4 million during the three months
ended June 30, 1998, and from $3.3 million to $4.1 million for the
comparable nine month periods. The additional compensation and building
expenses are mainly attributable to staffing increases and renovated
facilities to support lending operations.
The Corporation has increased total assets from $255.9 million as of
September 30, 1997 to $290.9 million as of June 30, 1998, an increase of
$35.0 million (or 13.7%). Total net loans have increased from $200.9 million
at September 30, 1997 to $238.7 million at June 30, 1998, an increase of
$37.8 million (or 18.8%). The loan growth has been funded primarily by
the growth in total savings deposits, decreases in security investments
and additional borrowings through Federal Home Loan Bank advances.
Total shareholders' equity decreased from $33.6 million as of September 30,
1997 to $33.1 million as of June 30, 1998. The decreases to equity resulted
mainly from the repurchase of 119,200 shares of outstanding common stock
during the period at a cost of $3.1 million, along with the payment
of cash dividends of $409,000. These decreases were offset by $1.7
million in net income and $1.0 million generated from the exercise of
stock options.
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 June 30, 1998 was
.06% compared to .08% as of June 30, 1997.
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 June 30, 1998. The dividend is payable on August 18, 1998 to holders
of record on August 4, 1998. .
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 STATEMENT OF INCOME (UNAUDITED)
THREE MONTHS AND NINE MONTHS ENDED JUNE 30, 1998 AND 1997
(in thousands)
Three Months Ended June 30, Nine Month Ended June30,
1998 1997 1998 1997
Total interest income $5,391 $4,511 $15,364 $12,888
Total interest expense 3,161 2,612 8,937 7,378
Net interest income 2,230 1,899 6,427 5,510
Provision for loan losses 20 7 50 22
Net interest income after provision
for loan losses 2,210 1,892 6,377 5,488
Total non-interest income 182 108 509 306
Total non-interest expense 1,396 1,156 4,136 3,295
Income before income taxes 996 844 2,750 2,499
Income tax expense 508 336 1094 993
NET INCOME $488 $508 $1,656 $1,506
Basic Earnings per common share $ .31 $ .32 $ 1.06 $ .90
Diluted Earnings per common share $ .30 $ .30 $ 1.02 $ .87
MFB CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
June 30, 1998 and September 30, 1997
(in thousands)
June 30, September 30,
1998 1997
ASSETS
Cash and due from financial institutions $ 2,037 $ 2,906
Interest-bearing deposits in other financial
institutions 6,477 6,576
Cash and cash equivalents 8,514 9,482
Interest-bearing time deposits in other financial
institutions - ---
Securities available-for-sale 35,719 39,628
Federal Home Loan Bank (FHLB) stock, at cost 4,137 2,400
Loans held for sale, net of unrealized losses
of $-0- in 1997 --- 12,671
Loans receivable, net of allowance for loan losses
of $420,000 in 1998 and $370,000 in 1997 238,657 188,264
Accrued interest receivable 898 719
Premises and equipment, net 2,824 2,613
Other assets 187 144
TOTAL ASSETS $290,936 $255,921
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 4,437 $ 2,047
Savings, NOW and MMDA deposits 39,837 38,130
Other time deposits 131,320 131,710
Total deposits 175,594 171,887
Securities sold under agreements to repurchase 3,533 389
Advances from borrowers for taxes and insurance 1,262 1,854
FHLB advances 76,726 47,500
Accrued expenses and other liabilities 721 741
Total Liabilities 257,836 222,371
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417
shares outstanding: 1,590,217 - 1998,
1,650,567 - 1997 12,890 13,108
Retained earnings - substantially restricted 23,284 22,038
Unearned Employee Stock Ownership Plan (ESOP)
shares (500) (665)
Unearned Recognition and Retention Plan (RRP) shares (58) (115)
Net unrealized appreciation (depreciation) on
securities available-for-sale, net of tax 17 73
Treasury Stock, 90,050 common shares, at cost (2,533) (889)
Total shareholders' equity 33,100 33,550
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $290,936 $255,921