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 21, 1999
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
April21, 1999
concerning the Fourth 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 21, 1999.
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: May 14, 1999
April 21 , 1999
Point of Contact: Charles J. Viater
MFB CORP. ANNOUNCES SECOND 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 $1,257,000 or $.86 per share for
the six months ended March 31, 1999, compared to $1,168,000 or $.70 per share
for the six months ended March 31, 1998, an earnings per share increase of
22.86%. Net income for the three months ended March 31, 1999 was $594,000
compared to $666,000 for the three months ended March 31, 1998. Earnings per
share for both quarters ended March 31 were $.40 per share.
Net interest income after provision for loan losses for the
most recent three and six month periods totaled $2.3 million and $4.6 million
compared to $2.2 million and $4.2 million for the same periods one year ago.
During the three months ended March 31, 1999 total interest income increased by
$803,000 compared to the same period one year ago, primarily as a result of a
$32.7 million increase in commercial and consumer loan receivables. The Bank
continues to place increased emphasis on growing the small business lending
division and developing the consumer lending program within the areas serviced
by its branches. The desire for local service and local decision making has
clearly influenced the growth the Bank has experienced. Total interest expense
increased $631,000 reflecting the growth in savings account deposits and
borrowed funds. For the six months ended March 31, 1999 total interest income
increased $1.9 million while total interest expense increased $1.4 million.
Noninterest income increased from $162,000 and $326,000 for
the three and six months ended March 31, 1998 to $286,000 and $590,000 for the
most recent three and six month periods. These increases are primarily due to
gains realized on the sale of first mortgage loans, servicing fee income
retained on those sold loans, and fees generated from the increasing number of
core deposit account relationships. Noninterest expenses increased from $1.5
million during the three months ended March 31, 1998 to $1.6 million during
the three months ended March 31, 1999, and from $2.7 million to $3.1 million
for the comparable six month periods. The noninterest expense increases are
primarily attributable to staffing increases, facility upgrades, and expenses
incurred in the offering of additional services to the Banks' customers.
The Corporation has increased total assets from $315.0
million as of September 30, 1998 to $337.4 million as of March 31, 1999,
an increase of $22.4 million (or 7.1%). Total securities available for sale
increased from $41.8 million at September 30, 1998 to $47.4 million at March
31, 1999, an increase of $5.6 million (or 13.4%). Total net loans increased
from $245.1 million to $252.6 million during this same six month period, an
increase of $7.5 million (or 3.1%). The investment and loan growth has been
funded primarily by the growth in total savings deposits and additional
borrowings through Federal Home Loan Bank advances.
Total shareholders' equity increased from $30.9 million as
of September 30, 1998 to $31.6 million as of March 31, 1999 mainly from
net income of $1.3 million offset by the repurchase of 24,800 shares of
outstanding common stock during this period at a cost of $536,000, along with
the payment of cash dividends of $256,000.
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 March 31, 1999 was .05% compared to .02% as of March 31, 1998.
In addition, MFB Corp. announced today that the Corporation
has declared a cash dividend of $ .09 per share of Common Stock for the quarter
ended March 31, 1999. The dividend is payable on May 18, 1999 to holders of
record on May 4, 1999. .
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. In addition, another full service office is
scheduled to open in Elkhart during the quarter ending June 30, 1999.
MFB CORP. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 31, 1999 and September 30, 1998
(in thousands)
March 31, September30,
1999 1998
ASSETS
Cash and due from financial institutions $ 4,905 $ 3,019
Interest-bearing deposits in other financial institutions 19,103
14,885
Cash and cash equivalents 24,008 17,904
Securities available-for-sale 47,397 41,820
Interest-bearing time deposits in other financial institutions 1,000 -
Federal Home Loan Bank (FHLB) stock, at cost 5,511 4,636
Loans held for sale, net of unrealized losses 19,654 13,516
Loans receivable, net of allowance for loan losses
of $544,000 at 3/31/99 and $454,000 at 9/30/98 232,938 231,610
Accrued interest receivable 1,143 968
Premises and equipment, net 3,826 2,795
Mortgage Servicing Rights, net 286 192
Investment in limited partnership 1,213 1,222
Other assets 460 298
TOTAL ASSETS $337,436 $314,961
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Deposits
Noninterest-bearing demand deposits $ 6,386 $ 4,299
Savings, NOW and MMDA deposits 48,810 40,835
Other time deposits 139,700 135,532
Total deposits 194,896 180,666
Securities sold under agreements to repurchase 3,508 2,366
Other borrowings 104,226 97,657
Advances from borrowers for taxes and insurance 2,366 2,316
Accrued expenses and other liabilities 877 1,070
Total Liabilities 305,873 284,075
Shareholders' Equity
Common Stock, 5,000,000 shares authorized;
shares issued: 1,689,417 - 3/31/99, 1,689,417 - 9/30/98
shares outstanding: 1,449,417 - 3/31/99, 1,474,217 - 9/30/98 12,946
12,847
Retained earnings - substantially restricted 24,731 23,730
Unearned Employee Stock Ownership Plan (ESOP) shares (345) (445)
Unearned Recognition and Retention Plan (RRP) shares - (38)
Accumulated other comprehensive income (70) (45)
Treasury Stock, 240,000 common shares - 3/31/99,
215,200 common shares - 9/30/98 (5,699) (5,163)
(889)
---
Total shareholders' equity 31,563 30,886
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITIES $337,436 $314,961
MFB CORP. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
THREE MONTHS AND SIX MONTHS ENDED MARCH 31, 1999
AND 1998
(in thousands)
Three Months Ended March 31, Six Months Ended March 31,
1999 1998 1999 1998
Total interest income $5,957 $5,154 $11,917 $9,973
Total interest expense 3,589 2,958 7,215 5,777
Net interest income 2,368 2,196 4,702 4,196
Provision for loan losses 45 15 90 30
Net interest income after provision for loan losses 2,323 2,181 4,612
4,166
Total non-interest income 286 162 590 326
Total non-interest expense 1,594 1,461 3,061 2,739
Income before income taxes 1,015 882 2,141 1,753
Income tax expense 421 216 884 585
NET INCOME $594 $666 $1,257 $1,168
Basic Earnings per common share $ .42 $ .43 $ .88 $ .75
Diluted Earnings per common share $ .40 $ .40 $ .86 $ .70