MSB Financial Corp. (NASDAQ: MSBF) (the
“Company”), parent company of Millington Bank, reported today the
results of its operations for the three and six months ended
June 30, 2019.
The Company reported net income of $1.2 million,
or $0.24 per diluted common share, for the three months ended
June 30, 2019, compared to net income of $1.2 million, or
$0.23 per diluted common share, for the three months ended
June 30, 2018. Net income for the six months ended
June 30, 2019 was $1.7 million, or $0.33 per diluted common
share, compared to net income of $2.3 million, or $0.41 per
diluted common share, for the six months ended June 30,
2018. The six months ended June 30, 2019 had been
impacted by approximately $862,000 in additional professional
expenses year over year in connection with the first audit of the
Company's internal control over financial reporting. As the
Company previously disclosed, in connection with the audit,
management and outside auditors identified certain material
weaknesses in internal control. While none of these material
weaknesses resulted in any misstatement or material change to the
reported results, they did cause the scope of the audit and
consequently the related expense to increase significantly.
Adjusting for the expense associated with the change in procedures,
net income for the six months ended June 30, 2019 would have been
$2.3 million or $0.45 per diluted share.
Highlights for the quarter:
- Return on average assets was 0.85% for the three months ended
June 30, 2019 compared to 0.87% for the three months ended
June 30, 2018 and return on average equity was 7.28% for the
three months ended June 30, 2019 compared to 7.17% for the
three months ended June 30, 2018.
- Net interest margin decreased three basis points to 3.21% for
the quarter ended June 30, 2019 from 3.24% for the quarter
ended June 30, 2018.
- The efficiency ratio, which is calculated by dividing
non-interest expense by the sum of net interest income and
non-interest income, was 62.97% for the quarter ended June 30,
2019 as compared to 62.49% for the quarter ended June 30,
2018.
- Non-performing assets represented 0.69% of total assets at
June 30, 2019 compared with 0.71% at December 31, 2018.
The allowance for loan losses as a percentage of total
non-performing loans was 140.26% at June 30, 2019 compared to
136.83% at December 31, 2018.
- The Company’s balance sheet at June 30, 2019 reflected a
decline in total assets of $3.0 million compared to
December 31, 2018 due to a reduction in loans, offset by an
increase in cash and cash equivalents, improved asset quality, and
capital levels that exceeded regulatory standards for a
well-capitalized institution.
- The effective tax rate increased to 28.5% for the quarter ended
June 30, 2019 compared to 24.7% for the quarter ended
June 30, 2018.
| Selected Financial
Ratios |
|
|
|
|
|
|
|
|
|
|
| (unaudited; annualized
where applicable) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
As of or for the quarter ended: |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
| Return on average assets |
|
0.85 |
% |
|
0.36 |
% |
|
0.87 |
% |
|
0.92 |
% |
|
0.87 |
% |
| Return on average equity |
|
7.28 |
% |
|
3.05 |
% |
|
7.20 |
% |
|
7.56 |
% |
|
7.17 |
% |
| Net interest margin |
|
3.21 |
% |
|
3.19 |
% |
|
3.22 |
% |
|
3.44 |
% |
|
3.24 |
% |
| Net loans / deposit ratio |
|
118.62 |
% |
|
113.10 |
% |
|
119.43 |
% |
|
113.08 |
% |
|
113.64 |
% |
| Shareholders' equity / total
assets |
|
11.42 |
% |
|
11.77 |
% |
|
11.40 |
% |
|
11.86 |
% |
|
11.39 |
% |
| Efficiency ratio |
|
62.97 |
% |
|
83.83 |
% |
|
62.51 |
% |
|
61.96 |
% |
|
62.49 |
% |
|
Book value per common share |
|
$ |
12.64 |
|
|
$ |
12.46 |
|
|
$ |
12.37 |
|
|
$ |
12.70 |
|
|
$ |
12.43 |
|
Net Interest Income
Total interest income for the three months ended
June 30, 2019 increased $429,000, or 7.5%, to $6.2 million
compared to $5.7 million for the second quarter of 2018. Interest
income increased in the quarter ended June 30, 2019 compared
to the comparable period in 2018, as a result of an increase in
loan yields. Total interest expense increased by $449,000, or
34.4%, to $1.8 million, for the three months ended June 30,
2019 compared to the same period in 2018 due to higher interest
rates on deposits and borrowings during the 2019 period.
Net interest income for the three months ended
June 30, 2019 was flat at $4.4 million compared to the same
three month period in 2018. The annualized net interest
spread was 2.94% and 3.05% for the three months ended June 30,
2019 and 2018, respectively. For the quarter ended June 30,
2019, the Company's annualized net interest margin decreased to
3.21% compared to 3.24% for the corresponding three-month period in
2018.
Total interest income for the six months ended
June 30, 2019, increased $1.1 million, or 9.91%, to $12.3
million compared to $11.2 million for the six months ended
June 30, 2018 as average earning assets increased $13.0
million year over year. Total interest expense increased by
$1.0 million, or 41.33%, to $3.4 million for the six months ended
June 30, 2019 compared to June 30, 2018 as average
interest bearing liabilities increased $4.8 million year over year
and the average cost of such liabilities increased 43 basis
points.
Net interest income grew $101,000, or 1.2%, to
$8.8 million for the six months ended June 30, 2019 compared
to $8.7 million for the six months ended June 30, 2018.
Net interest spread and net interest margin for the six months
ended June 30, 2019, declined 13 and 4 basis points
respectively, to 2.93% and 3.20% compared to 3.06% and 3.24% for
the six months ended June 30, 2018. Net interest income
and net interest margin decreased as the Company's deposit pricing
has become more competitive year over year.
Provision for Loan Losses
The loan loss provision for the three months
ended June 30, 2019 was zero compared to $90,000 for the same
period in 2018. The loan loss provision for
the six months ended June 30, 2019 was zero compared to
$180,000 for the same period in 2018. The decrease in the
level of provision for loan loss primarily reflects lower loan
growth in the current period in addition to the improvement of
other credit metrics year over year.
Non-Interest Income and Non-Interest
Expense
Non-interest income for the three months ended
June 30, 2019 was $204,000, as compared to $208,000 for the
same period in 2018. Non-interest expense, which consists of
salaries and employee benefits, occupancy expense, professional
services and other non-interest expenses totaled $2.9 million for
the quarter ended June 30, 2019 and the same period in
2018.
Non-interest income for the six months ended
June 30, 2019 was $394,000, as compared to $412,000 for the
same period in 2018. Non-interest expense, totaled $6.8
million for the six months ended June 30, 2019 as compared to
$5.9 million for the same period in 2018. The increase in
non-interest expense was primarily related to an increase in
professional service expense.
Taxes
For the three months ended June 30, 2019,
the Company recorded a $487,000 tax provision compared to $407,000
for the three months ended June 30, 2018. The effective tax
rate increased to 28.5% for the quarter ended June 30, 2019
compared to 24.7% for the quarter ended June 30, 2018.
For the six months ended June 30, 2019, the
Company recorded a $719,000 tax provision compared to a provision
of $814,000 for the six months ended June 30, 2018. The
effective tax rate increased to 29.3% for the six months ended
June 30, 2019 compared to 26.4% for the six months ended
June 30, 2018.
Quarterly Earnings Summary
The following table presents condensed
consolidated statements of income data for the periods
indicated.
| Condensed
Consolidated Statements of Income (unaudited) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (dollars
in thousands, except for per share data) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended: |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
|
Net interest income |
|
$ |
4,411 |
|
$ |
4,423 |
|
$ |
4,459 |
|
$ |
4,755 |
|
$ |
4,431 |
| Provision for loan
losses |
|
— |
|
— |
|
— |
|
60 |
|
90 |
| Net interest
income after provision for loan losses |
|
4,411 |
|
4,423 |
|
4,459 |
|
4,695 |
|
4,341 |
| Other income |
|
204 |
|
190 |
|
198 |
|
190 |
|
208 |
| Other expense |
|
2,906 |
|
3,867 |
|
2,911 |
|
3,064 |
|
2,899 |
| Income before
income taxes |
|
1,709 |
|
746 |
|
1,746 |
|
1,821 |
|
1,650 |
| Income taxes
(benefit) |
|
487 |
|
232 |
|
491 |
|
506 |
|
407 |
| Net income |
|
$ |
1,222 |
|
$ |
514 |
|
$ |
1,255 |
|
$ |
1,315 |
|
$ |
1,243 |
| Earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.24 |
|
$ |
0.10 |
|
$ |
0.24 |
|
$ |
0.25 |
|
$ |
0.23 |
|
Diluted |
|
$ |
0.24 |
|
$ |
0.10 |
|
$ |
0.24 |
|
$ |
0.24 |
|
$ |
0.23 |
| Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
| Basic |
|
5,126,938 |
|
5,198,432 |
|
5,276,116 |
|
5,330,029 |
|
5,331,090 |
|
Diluted |
|
5,155,258 |
|
5,237,329 |
|
5,317,305 |
|
5,388,577 |
|
5,375,090 |
Statement of Condition Highlights at June 30,
2019
- Total assets amounted to $581.5 million at June 30, 2019,
a decrease of $3.0 million, or 0.52%, compared to December 31,
2018.
- The Company’s total loans receivable, excluding the ALLL, were
$499.9 million at June 30, 2019, a decrease of $8.1 million,
or 1.6%, from December 31, 2018.
- Securities held to maturity were $39.5 million at June 30,
2019, unchanged when compared to December 31, 2018.
- Deposits decreased $4.0 million, or 0.94%, to $416.6 million at
June 30, 2019 compared to $420.6 million at December 31,
2018.
- Borrowings totaled $95.1 million at June 30, 2019, an
increase of $800,000, or 0.85%, compared to $94.3 million at
December 31, 2018.
The following table presents condensed
consolidated statements of condition data as of the dates
indicated.
| Condensed
Consolidated Statements of Condition (unaudited) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (in
thousands) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
At: |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
|
Cash and due from banks |
|
$ |
1,200 |
|
$ |
1,040 |
|
$ |
1,558 |
|
$ |
1,254 |
|
$ |
1,654 |
| Interest-earning
demand deposits with banks |
|
14,473 |
|
9,771 |
|
10,242 |
|
20,817 |
|
14,660 |
| Securities held to
maturity |
|
39,455 |
|
36,982 |
|
39,476 |
|
43,009 |
|
44,770 |
| Loans receivable,
net of allowance |
|
494,192 |
|
489,445 |
|
502,299 |
|
494,848 |
|
509,689 |
| Premises and
equipment |
|
8,006 |
|
9,221 |
|
8,180 |
|
8,323 |
|
8,461 |
| Federal home Loan
Bank of New York stock, at cost |
|
4,805 |
|
3,406 |
|
4,756 |
|
4,117 |
|
4,212 |
| Bank owned life
insurance |
|
14,775 |
|
14,679 |
|
14,585 |
|
14,489 |
|
14,392 |
| Accrued interest
receivable |
|
1,715 |
|
1,772 |
|
1,615 |
|
1,734 |
|
1,754 |
| Other assets |
|
2,863 |
|
1,777 |
|
1,789 |
|
1,803 |
|
1,657 |
| Total
assets |
|
$ |
581,484 |
|
$ |
568,093 |
|
$ |
584,500 |
|
$ |
590,394 |
|
$ |
601,249 |
| Deposits |
|
$ |
416,607 |
|
$ |
432,754 |
|
$ |
420,579 |
|
$ |
437,597 |
|
$ |
448,512 |
| Borrowings |
|
95,075 |
|
64,275 |
|
94,275 |
|
80,075 |
|
82,175 |
| Other
liabilities |
|
3,423 |
|
4,172 |
|
3,000 |
|
2,714 |
|
2,056 |
| Stockholders'
equity |
|
66,379 |
|
66,892 |
|
66,646 |
|
70,008 |
|
68,506 |
| Total
liabilities and stockholders' equity |
|
$ |
581,484 |
|
$ |
568,093 |
|
$ |
584,500 |
|
$ |
590,394 |
|
$ |
601,249 |
Loans
At June 30, 2019, the Company’s net loan
portfolio totaled $494.2 million, a decrease of $8.1 million, or
1.6%, compared to $502.3 million at December 31, 2018.
The allowance for loan losses amounted to $5.7 million at
June 30, 2019 and December 31, 2018.
At June 30, 2019, the loan portfolio
primarily consisted of commercial real estate loans 39.9% and
residential mortgages 31.2%. Commercial and industrial loans
represented 20.6% of the portfolio while construction loans
accounted for 8.1% of the portfolio. Total gross loans receivable
increased $1.7 million to $520.8 million at June 30, 2019
compared to $519.1 million at December 31, 2018. The slight
increase primarily reflects an increase in commercial loans of $6.9
million and a decrease of $5.0 million in residential mortgages as
the Company continues to focus on commercial lending.
The following table shows the composition of the
Company's loan portfolio as of the dates indicated.
| Loans
(unaudited) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
At quarter ended: |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
|
Residential mortgage: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| One-to-four family |
|
$ |
139,119 |
|
$ |
140,043 |
|
$ |
143,391 |
|
$ |
147,127 |
|
$ |
151,372 |
| Home equity |
|
23,596 |
|
25,160 |
|
24,365 |
|
25,494 |
|
26,174 |
| Total residential
mortgage |
|
162,715 |
|
165,203 |
|
167,756 |
|
172,621 |
|
177,546 |
| Commercial and multi-family
real estate |
|
207,866 |
|
206,653 |
|
212,606 |
|
209,283 |
|
214,653 |
| Construction |
|
42,356 |
|
37,319 |
|
29,628 |
|
28,788 |
|
48,423 |
| Commercial and industrial -
Secured |
|
50,802 |
|
49,640 |
|
60,426 |
|
56,331 |
|
52,879 |
| Commercial and industrial -
Unsecured |
|
56,672 |
|
53,791 |
|
48,176 |
|
45,518 |
|
41,261 |
| Total commercial loans |
|
357,696 |
|
347,403 |
|
350,836 |
|
339,920 |
|
357,216 |
| Consumer loans |
|
425 |
|
470 |
|
540 |
|
580 |
|
608 |
| Total loans receivable |
|
520,836 |
|
513,076 |
|
519,132 |
|
513,121 |
|
535,370 |
| Less: |
|
|
|
|
|
|
|
|
|
|
| Loans in process |
|
20,447 |
|
17,443 |
|
10,677 |
|
12,142 |
|
19,594 |
| Deferred loan fees |
|
536 |
|
530 |
|
501 |
|
475 |
|
491 |
| Allowance |
|
5,661 |
|
5,658 |
|
5,655 |
|
5,656 |
|
5,596 |
| Total loans receivable,
net |
|
$ |
494,192 |
|
$ |
489,445 |
|
$ |
502,299 |
|
$ |
494,848 |
|
$ |
509,689 |
Asset Quality
At June 30, 2019 and December 31, 2018
non-performing loans totaled $4.0 million and $4.1 million, or
0.69% and 0.71% of total assets, respectively. Nonperforming
loans decreased slightly since year end as one relationship was
resolved in the quarter. Total delinquent loans (including
nonperforming delinquent loans) were $5.7 million at June 30,
2019, a decrease of $538,000 from December 31, 2018. The
allowance for loan losses as a percentage of total loans was 1.13%
and 1.11% at June 30, 2019 and at December 31, 2018,
respectively, while the allowance for loan losses as a percentage
of non-performing loans increased to 140.26% at June 30, 2019
from 136.83% at December 31, 2018. Non-performing loans to
total loans was 0.81% at June 30, 2019 and December 31,
2018, respectively.
The following table presents the components of
non-performing assets and other asset quality data for the periods
indicated.
| (dollars in thousands,
unaudited) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
As of or for the quarter ended: |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
| Non-accrual loans |
|
$ |
3,681 |
|
|
$ |
3,839 |
|
$ |
4,131 |
|
|
$ |
2,746 |
|
|
$ |
3,430 |
|
| Loans 90 days or more past due
and still accruing |
|
355 |
|
|
|
|
2 |
|
|
101 |
|
|
699 |
|
|
Total non-performing loans |
|
$ |
4,036 |
|
|
$ |
3,839 |
|
|
$ |
4,133 |
|
|
$ |
2,847 |
|
|
$ |
4,129 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Non-performing assets / total
assets |
|
0.69 |
% |
|
0.68 |
% |
|
0.71 |
% |
|
0.48 |
% |
|
0.69 |
% |
| Non-performing loans / total
loans |
|
0.81 |
% |
|
0.78 |
% |
|
0.81 |
% |
|
0.57 |
% |
|
0.80 |
% |
| Net charge-offs
(recoveries) |
|
$ |
(4 |
) |
|
(3 |
) |
|
— |
|
— |
|
— |
| Net charge-offs (recoveries) /
average loans (annualized) |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
|
— |
% |
| Allowance for loan loss /
total loans |
|
1.13 |
% |
|
1.14 |
% |
|
1.11 |
% |
|
1.13 |
% |
|
1.09 |
% |
| Allowance for loan losses /
non-performing loans |
|
140.26 |
% |
|
147.38 |
% |
|
136.83 |
% |
|
198.67 |
% |
|
135.53 |
% |
| |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
581,484 |
|
|
$ |
568,093 |
|
|
$ |
584,500 |
|
|
$ |
590,394 |
|
|
$ |
601,249 |
|
| Gross loans, excluding
ALLL |
|
$ |
499,853 |
|
|
$ |
495,103 |
|
|
$ |
507,954 |
|
|
$ |
500,504 |
|
|
$ |
515,285 |
|
| Average loans |
|
$ |
498,799 |
|
|
$ |
502,149 |
|
|
$ |
499,368 |
|
|
$ |
499,082 |
|
|
$ |
500,959 |
|
| Allowance for loan losses |
|
$ |
5,661 |
|
|
$ |
5,658 |
|
|
$ |
5,655 |
|
|
$ |
5,656 |
|
|
$ |
5,596 |
|
Deposits
Total deposits at June 30, 2019 decreased
to $416.6 million from $420.6 million compared to year-end
2018. Certificates of deposits (including IRAs) and
non-interest demand balances increased $27.6 million and $3.1
million, respectively. Certificates of deposits increased to
$148.5 million compared to $120.9 million at year end while
non-interest demand deposit account balances increased to $49.8
million compared to $46.7 million at December 31, 2018.
Additionally, money market balances increased $2.6 million to $18.8
million compared to $16.2 million at year-end 2018.
Offsetting these increases was a decline in interest-bearing demand
deposit account balances of $32.4 million to $101.7 million at
June 30, 2019 from $134.1 million at December 31,
2018.
The following table shows the composition of the
Company's deposits as of the dates indicated.
| Deposits
(unaudited) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
At quarter ended: |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
|
Demand: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-interest
bearing |
|
$ |
49,799 |
|
$ |
49,429 |
|
$ |
46,690 |
|
$ |
45,501 |
|
$ |
42,687 |
| Interest-bearing |
|
101,678 |
|
123,420 |
|
134,123 |
|
150,248 |
|
153,968 |
| Savings |
|
97,898 |
|
103,109 |
|
102,740 |
|
102,434 |
|
109,254 |
| Money market |
|
18,780 |
|
17,182 |
|
16,171 |
|
12,822 |
|
14,381 |
| Time |
|
148,452 |
|
139,614 |
|
120,855 |
|
126,592 |
|
128,222 |
| Total deposits |
|
$ |
416,607 |
|
$ |
432,754 |
|
$ |
420,579 |
|
$ |
437,597 |
|
$ |
448,512 |
Capital
At June 30, 2019, the Company's total
stockholders' equity amounted to $66.4 million, or 11.42% of total
assets, compared to $66.6 million at December 31, 2018.
The Company’s book value per common share was $12.64 at
June 30, 2019, compared to $12.37 at
December 31, 2018. The decrease in stockholders' equity was
primarily due to the repurchase of 131,400 shares for $2.2 million
during the year, with the remaining difference related to ESOP,
restricted stock and stock option accounting activity, partially
offset by net income of $1.7 million from the period.
At June 30, 2019, the Bank’s common equity
tier 1 ratio was 11.31%, tier 1 leverage ratio was 10.36%, tier 1
capital ratio was 11.31% and the total capital ratio was 12.41%. At
December 31, 2018, the Bank’s common equity tier 1 ratio was
11.90%, tier 1 leverage ratio was 10.71%, tier 1 capital ratio was
11.90%, and the total capital ratio was 13.00%. At
June 30, 2019, the Bank was in compliance with all applicable
regulatory capital requirements.
The following table sets forth the Company's consolidated
average statements of condition for the periods presented.
| Condensed
Consolidated Average Statements of Condition
(unaudited) |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (dollars
in thousands) |
|
|
|
|
|
|
|
|
|
|
|
For the quarter ended: |
|
6/30/2019 |
|
3/31/2019 |
|
12/31/2018 |
|
9/30/2018 |
|
6/30/2018 |
|
Loans |
|
$ |
498,799 |
|
|
$ |
502,149 |
|
|
$ |
499,368 |
|
|
$ |
499,082 |
|
|
$ |
500,959 |
|
| Securities held
to maturity |
|
36,796 |
|
|
37,899 |
|
|
41,460 |
|
|
43,871 |
|
|
36,494 |
|
| Allowance for
loan losses |
|
(5,659 |
) |
|
(5,656 |
) |
|
(5,686 |
) |
|
(5,624 |
) |
|
(5,538 |
) |
| All other
assets |
|
42,671 |
|
|
42,778 |
|
|
41,211 |
|
|
37,466 |
|
|
38,053 |
|
| Total
assets |
|
$ |
572,607 |
|
|
$ |
577,170 |
|
|
$ |
576,353 |
|
|
$ |
574,795 |
|
|
$ |
569,968 |
|
| Non-interest
bearing deposits |
|
$ |
49,861 |
|
|
$ |
46,962 |
|
|
$ |
48,172 |
|
|
$ |
43,495 |
|
|
$ |
38,903 |
|
| Interest-bearing
deposits |
|
368,679 |
|
|
367,434 |
|
|
372,474 |
|
|
386,364 |
|
|
385,047 |
|
| Borrowings |
|
83,814 |
|
|
92,780 |
|
|
83,440 |
|
|
73,077 |
|
|
74,192 |
|
| Other
liabilities |
|
3,087 |
|
|
2,623 |
|
|
2,585 |
|
|
2,320 |
|
|
2,495 |
|
| Stockholders'
Equity |
|
67,166 |
|
|
67,371 |
|
|
69,682 |
|
|
69,539 |
|
|
69,331 |
|
| Total
liabilities and shareholders' equity |
|
$ |
572,607 |
|
|
$ |
577,170 |
|
|
$ |
576,353 |
|
|
$ |
574,795 |
|
|
$ |
569,968 |
|
| |
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures
This release references adjusted net income,
which is a non-GAAP (Generally Accepted Accounting Principles)
financial measure. Adjusted net income is derived from GAAP
net income less the $862,000 in additional expenses associated with
the expanded audit scope and identification of material weaknesses
and tax effected at a rate of 31%. We believe the
presentation of adjusted net income is appropriate as it better
enables an investor to analyze the performance of our core business
year over year without the impact of unusual items.
The following tables reconcile adjusted net
income to net income and adjusted diluted earnings per share to
diluted earnings per share:
| |
Six months ended June 30, |
| |
2019 |
|
2018 |
|
(dollars in thousands) |
|
|
|
|
|
|
|
| Net income |
$ |
1,736 |
|
|
$ |
2,265 |
|
| Professional expenses
associated with increased audit scope and identification of
material weaknesses |
862 |
|
|
— |
|
| Tax adjustment using an
assumed tax rate of 31% |
(267 |
) |
|
— |
|
| Adjusted net income |
$ |
2,331 |
|
|
$ |
2,265 |
|
| |
Six Months Ended June 30, |
| (In Thousands, Except Per
Share Data) |
2019 |
|
2018 |
|
Numerator: |
|
|
|
|
|
|
|
| Net income |
$ |
2,331 |
|
|
$ |
2,265 |
|
| |
|
|
|
|
Denominator: |
|
|
|
| Weighted average common
shares |
5,179 |
|
|
5,400 |
|
| Dilutive potential common
shares |
34 |
|
|
41 |
|
|
Weighted average fully diluted shares |
5,213 |
|
|
5,441 |
|
| |
|
|
|
| Earnings per share: |
|
|
|
|
Dilutive |
$ |
0.45 |
|
|
$ |
0.42 |
|
CEO Outlook
"Our 2nd quarter expense levels have returned to
normal as compared to last quarter. Our earnings are also back to
recent trends now that the Company has addressed the internal
control deficiencies identified during the previous quarter,”
stated Michael A. Shriner, President and Chief Executive
Officer. Mr. Shriner added, “Management and staff are once
again focused on growing the Company through prudent underwriting,
sensible deposit offerings and balance sheet repositioning,
especially within the current interest rate environment.”
Mr. Shriner further stated “Although the Company
maintains a relatively neutral interest rate sensitivity position,
management will remain watchful of additional interest rate moves
and incorporate counter measures to help minimize any dramatic
impact to our 2019 strategic plan.”
Forward Looking Statement
Disclaimer
The foregoing release may contain
forward-looking statements concerning the financial condition,
results of operations and business of the Company. We caution that
such statements are subject to a number of uncertainties and actual
results could differ materially, and, therefore, readers should not
place undue reliance on any forward-looking statements. Factors
that may cause actual results to differ from those contemplated
include our continued ability to grow the loan portfolio, the
impact of the passage of the Tax Cuts and Jobs Act, our continued
ability to manage cybersecurity risks and our continued ability to
successfully remediate our identified internal control
weaknesses.
| |
Michael A. Shriner, President
& CEO |
|
| Contact: |
(908) 647-4000 |
|
| |
mshriner@millingtonbank.com |
|
|
|
|
|
|
MSB Financial Corp. and Subsidiaries |
| |
|
Consolidated Statements of Financial
Condition |
| |
At June 30, 2019 |
At December 31, 2018 |
|
(Dollars in thousands, except per share amounts) |
|
|
|
|
|
|
|
Cash and due from banks |
$ |
1,200 |
|
$ |
1,558 |
|
|
Interest-earning demand deposits with banks |
14,473 |
|
10,242 |
|
|
Cash and Cash Equivalents |
15,673 |
|
11,800 |
|
|
Securities held to maturity (fair value of $39,201 and $38,569,
respectively) |
39,455 |
|
39,476 |
|
|
Loans receivable, net of allowance for loan losses of $5,661 and
$5,655, respectively |
494,192 |
|
502,299 |
|
|
Premises and equipment |
8,006 |
|
8,180 |
|
|
Federal Home Loan Bank of New York stock, at cost |
4,805 |
|
4,756 |
|
|
Bank owned life insurance |
14,775 |
|
14,585 |
|
|
Accrued interest receivable |
1,715 |
|
1,615 |
|
|
Other assets |
2,863 |
|
1,789 |
|
|
Total Assets |
$ |
581,484 |
|
$ |
584,500 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
Liabilities |
|
|
|
Deposits: |
|
|
|
Non-interest bearing |
$ |
49,799 |
|
$ |
46,690 |
|
|
Interest bearing |
366,808 |
|
373,889 |
|
|
Total Deposits |
416,607 |
|
420,579 |
|
|
Advances from Federal Home Loan Bank of New York |
95,075 |
|
94,275 |
|
|
Advance payments by borrowers for taxes and insurance |
703 |
|
749 |
|
|
Other liabilities |
2,720 |
|
2,251 |
|
|
Total Liabilities |
515,105 |
|
517,854 |
|
|
Stockholders' Equity |
|
|
|
Preferred stock, par value $0.01; 1,000,000 shares authorized; no
shares issued or outstanding |
— |
|
— |
|
|
Common stock, par value $0.01; 49,000,000 shares authorized;
5,252,716 and 5,389,054 issued and outstanding at June 30, 2019 and
December 31, 2018, respectively |
53 |
|
54 |
|
|
Paid-in capital |
42,670 |
|
44,726 |
|
|
Retained earnings |
25,234 |
|
23,498 |
|
|
Unearned common stock held by ESOP (174,046 and 179,464 shares,
respectively) |
(1,578 |
) |
(1,632 |
) |
|
Total Stockholders' Equity |
66,379 |
|
66,646 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
581,484 |
|
$ |
584,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSB Financial Corp. and Subsidiaries |
| |
|
Consolidated Statements of Income |
| |
|
Three months ended June 30, |
|
Six months ended June 30, |
| |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| (in
thousands except per share amounts) |
|
|
|
|
|
|
|
|
| Interest
Income |
|
|
|
|
|
|
|
|
|
Loans receivable, including fees |
|
$ |
5,779 |
|
$ |
5,436 |
|
$ |
11,469 |
|
$ |
10,572 |
|
Securities held to maturity |
|
266 |
|
240 |
|
551 |
|
459 |
|
Other |
|
122 |
|
62 |
|
254 |
|
136 |
|
Total Interest Income |
|
6,167 |
|
5,738 |
|
12,274 |
|
11,167 |
| Interest
Expense |
|
|
|
|
|
|
|
|
|
Deposits |
|
1,264 |
|
935 |
|
2,390 |
|
1,781 |
|
Borrowings |
|
492 |
|
372 |
|
1,050 |
|
653 |
|
Total Interest Expense |
|
1,756 |
|
1,307 |
|
3,440 |
|
2,434 |
|
Net Interest Income |
|
4,411 |
|
4,431 |
|
8,834 |
|
8,733 |
| Provision
for Loan Losses |
|
— |
|
90 |
|
— |
|
180 |
|
Net Interest Income after Provision for Loan
Losses |
|
4,411 |
|
4,341 |
|
8,834 |
|
8,553 |
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
Fees and service charges |
|
93 |
|
91 |
|
165 |
|
174 |
|
Income from bank owned life insurance |
|
96 |
|
98 |
|
190 |
|
195 |
|
Other |
|
15 |
|
19 |
|
39 |
|
43 |
|
Total Non-Interest Income |
|
204 |
|
208 |
|
394 |
|
412 |
|
Non-Interest Expenses |
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
1,679 |
|
1,677 |
|
3,407 |
|
3,482 |
|
Directors compensation |
|
130 |
|
122 |
|
259 |
|
244 |
|
Occupancy and equipment |
|
385 |
|
397 |
|
760 |
|
782 |
|
Service bureau fees |
|
100 |
|
77 |
|
195 |
|
144 |
|
Advertising |
|
6 |
|
9 |
|
13 |
|
13 |
|
FDIC assessment |
|
42 |
|
69 |
|
89 |
|
123 |
|
Professional services |
|
369 |
|
336 |
|
1,647 |
|
689 |
|
Other |
|
195 |
|
212 |
|
403 |
|
409 |
|
Total Non-Interest Expenses |
|
2,906 |
|
2,899 |
|
6,773 |
|
5,886 |
| Income
before Income Taxes |
|
1,709 |
|
1,650 |
|
2,455 |
|
3,079 |
|
Income Tax Expense |
|
487 |
|
407 |
|
719 |
|
814 |
| Net
Income |
|
$ |
1,222 |
|
$ |
1,243 |
|
$ |
1,736 |
|
$ |
2,265 |
| Earnings
per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.24 |
|
$ |
0.23 |
|
$ |
0.34 |
|
$ |
0.42 |
|
Diluted |
|
$ |
0.24 |
|
$ |
0.23 |
|
$ |
0.33 |
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MSB Financial Corp. and Subsidiaries |
|
|
|
|
|
|
|
|
|
| Selected
Quarterly Financial and Statistical Data |
|
|
|
|
|
| |
Three Months Ended |
| (in
thousands, except for share and per share data) (annualized where
applicable) |
6/30/2019 |
|
3/31/2019 |
|
6/30/2018 |
|
(unaudited) |
|
|
|
|
|
| Statements
of Operations Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
$ |
6,167 |
|
|
$ |
6,108 |
|
|
$ |
5,738 |
|
|
Interest expense |
1,756 |
|
|
1,685 |
|
|
1,307 |
|
|
Net interest income |
4,411 |
|
|
4,423 |
|
|
4,431 |
|
|
Provision for loan losses |
— |
|
|
— |
|
|
90 |
|
|
Net interest income after provision for loan losses |
4,411 |
|
|
4,423 |
|
|
4,341 |
|
|
Other income |
204 |
|
|
190 |
|
|
208 |
|
|
Other expense |
2,906 |
|
|
3,867 |
|
|
2,899 |
|
|
Income before income taxes |
1,709 |
|
|
746 |
|
|
1,650 |
|
|
Income tax expense (benefit) |
487 |
|
|
232 |
|
|
407 |
|
|
Net Income |
$ |
1,222 |
|
|
$ |
514 |
|
|
$ |
1,243 |
|
|
Earnings (per Common Share) |
|
|
|
|
|
|
Basic |
$ |
0.24 |
|
|
$ |
0.10 |
|
|
$ |
0.23 |
|
|
Diluted |
$ |
0.24 |
|
|
$ |
0.10 |
|
|
$ |
0.23 |
|
|
Statements of Condition Data (Period-End) |
|
|
|
|
|
|
Investment securities held to maturity (fair value of $39,201,
$36,444, and $43,749) |
$ |
39,455 |
|
|
$ |
36,982 |
|
|
$ |
44,770 |
|
|
Loans receivable, net of allowance for loan losses |
494,192 |
|
|
489,445 |
|
|
509,689 |
|
|
Total assets |
581,484 |
|
|
568,093 |
|
|
601,249 |
|
|
Deposits |
416,607 |
|
|
432,754 |
|
|
448,512 |
|
|
Borrowings |
95,075 |
|
|
64,275 |
|
|
82,175 |
|
|
Stockholders' equity |
66,379 |
|
|
66,892 |
|
|
68,506 |
|
|
Common Shares Dividend Data |
|
|
|
|
|
|
Cash dividends |
$— |
|
$— |
|
$ |
2,456 |
|
|
Weighted Average Common Shares Outstanding |
|
|
|
|
|
|
Basic |
5,126,938 |
|
|
5,198,432 |
|
|
5,331,090 |
|
|
Diluted |
5,155,258 |
|
|
5,237,329 |
|
|
5,375,090 |
|
|
Operating Ratios |
|
|
|
|
|
|
Return on average assets |
0.85 |
% |
|
0.36 |
% |
|
0.87 |
% |
|
Return on average equity |
7.28 |
% |
|
3.05 |
% |
|
7.17 |
% |
|
Average equity / average assets |
11.73 |
% |
|
11.67 |
% |
|
12.16 |
% |
|
Book value per common share (period-end) |
$ |
12.64 |
|
|
$ |
12.46 |
|
|
$ |
12.43 |
|
Grafico Azioni MSB Financial (NASDAQ:MSBF)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni MSB Financial (NASDAQ:MSBF)
Storico
Da Gen 2024 a Gen 2025
