MSB Financial Corp. Announces Results for its Fiscal Year Ended June 30, 2007
MILLINGTON, N.J., August 7, 2007 -- MSB Financial Corp. (Nasdaq: MSBF) (the
"Company"), the holding company for Millington Savings Bank (the "Bank"),
reported net income of $1.3 million for its fiscal year ended June 30, 2007 as
compared to net income of $1.4 million for fiscal 2006.
Net interest income for fiscal 2007 was down approximately 2% as compared to
fiscal 2006 while noninterest expense was up approximately 17%. The interest
rate spread for fiscal 2007 was 2.40%, compared to 2.97% for fiscal 2006 mainly
as a result of the continuing flat or inverted yield curve environment. The
return on average equity for the fiscal 2007 was 4.27%, compared to 7.31% for
fiscal 2006. The decrease in return on average equity for 2007 reflects the
completion of the Company's initial public offering in January 2007 and the net
proceeds of that offering of approximately $24.5 million.
Noninterest expense for fiscal 2007 includes certain expenses not present during
fiscal 2006, namely six months of expenses from the Employee Stock Ownership
Plan, implemented in January 2007 in connection with the Company's IPO, and a
full year of expenses for the Martinsville branch office (opened in July 2006),
which affected salaries and employee benefits as well as occupancy and equipment
costs.
Total assets were $284.6 million at June 30, 2007, compared to $270.2 million at
June 30, 2006 due primarily to a $15.2 million increase in loans receivable,
net. Deposits were $211.1 million at June 30, 2007, compared to $194.8 million
at June 30, 2006. Liquidity provided by the stock offering in January 2007 was
responsible for a decrease in borrowed funds; FHLB advances were $27.9 million
at June 30, 2007, down from $54.2 million at June 30, 2006.
Shares of the Company's common stock trade on the NASDAQ Global Market under the
symbol "MSBF." The Company is majority owned by its mutual holding company
parent, MSB Financial, MHC.
CONTACT: MSB Financial Corp.
Michael Shriner, Executive Vice President
908-647-4000
mshriner@millingtonsb.com
MSB FINANCIAL CORP
(Dollars in Thousands)
SELECTED FINANCIAL AND OTHER DATA
(Unaudited)
At June 30,
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2007 2006
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Balance Sheet Data:
Total assets $284,578 $270,184
Cash and cash equivalents 4,269 5,881
Loans receivable, net 233,498 218,321
Securities held to maturity 29,336 27,707
Deposits 211,118 194,755
Federal Home Loan Bank advances 27,889 54,181
Total stockholder's equity 43,346 19,491
(Unaudited)
For the Year Ended June 30,
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2007 2006
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Summary of Operations:
Total interest income $16,131 $14,117
Total interest expense 8,813 6,661
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Net interest income 7,318 7,456
Provision for loan losses 5 60
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Net interest income after provision
for loan losses 7,313 7,396
Noninterest income 1,579 603
Noninterest expense 6,740 5,763
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Income before taxes 2,152 2,236
Income tax provision 820 834
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Net income $1,332 $1,402
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Net income per common share:
basic $0.32 $0.45
diluted $0.32 $0.45
(Unaudited)
At or For the Year Ended June 30,
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2007 2006
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Performance Ratios:
Return on average assets (ratio of net income
to average total assets) 0.47% 0.55%
Return on average equity (ratio of net income
to average equity) 4.27 7.31
Net interest rate spread 2.40 2.97
Net interest margin on average interest-earning
assets 2.77 3.12
Average interest-earning assets to average
interest-bearing liabilities 111.07 105.53
Operating expense ratio (noninterest expenses
to average total assets) 2.40 2.25
Efficiency ratio (noninterest expense divided by
sum of net interest income and noninterest income) 75.76 71.51
Asset Quality Ratios:
Non-performing loans to total loans 0.69 0.32
Non-performing assets to total assets 0.59 0.27
Net charge-offs to average laons outstanding 0.00 0.01
Allowance for loan losses to non-performing loans 55.02 127.39
Allowance for loan losses to total loans 0.38 0.41
Capital Ratios:
Equity to total assets at end of period 15.23 7.21
Average equity to average assets 11.11 7.50
Number of Offices (1) 4 3
(1) All of the Bank's offices are full service locations. The Martinsville
branch office opened subsequent to June 30, 2006 and is not included in the
year ended June 30, 2006 information above.