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MILLINGTON, N.J., Nov. 01, 2016 -- MSB Financial Corp. (NASDAQ:MSBF) (the “Company”), parent company of Millington Bank, reported today the results of its operations for the three and nine months ended September 30, 2016.
The Company reported net income of $301,000 for the three months ended September 30, 2016, compared to $258,000 for the three months ended September 30, 2015. Net income for the nine months ended September 30, 2016 was $683,000 compared to net income of $441,000 for the nine months ended September 30, 2015.
During the third quarter, the Company repurchased 242,379 shares (approximately 4.1% of the outstanding shares prior to the commencement of the repurchase plan) of common stock under its previously-announced stock repurchase plan for a total of $3.2 million or an average price per share of $13.27. All repurchased shares were cancelled which reduced shares issued and outstanding to 5,711,044. The Company may repurchase up to an additional 352,963 shares under the current repurchase plan.
Net income per diluted common share was $0.05 for the three months ended September 30, 2016 compared to $0.04 for the three months ended September 30, 2015. Net income per diluted common share was $0.12 for the nine months ended September 30, 2016 compared to $0.08 for the nine months ended September 30, 2015.
Total assets were $433.6 million at September 30, 2016, compared to $375.7 million at December 31, 2015, an increase of $57.9 million or 15.4%. During 2016, the Company experienced growth of $66.9 million or 25.5%, in loans receivable, net. The commercial and multi-family real estate loan segment had the most growth during the first nine months of 2016 as the Company continues to diversify its loan portfolio.
The following table summarizes loan balances and composition at September 30, 2016 and December 31, 2015:
| At | At | ||||||||||
| September 30, | December 31, | ||||||||||
| (In thousands) | 2016 | 2015 | |||||||||
| Residential mortgage: | |||||||||||
| One-to-four family | $ | 157,945 | 46.3 | % | $ | 154,624 | 57.1 | % | |||
| Home equity | 34,246 | 10.0 | 35,002 | 12.9 | |||||||
| Total residential mortgage | 192,191 | 56.3 | 189,626 | 70.0 | |||||||
| Commercial and multi-family real estate | 103,083 | 30.2 | 59,642 | 22.0 | |||||||
| Construction | 16,160 | 4.7 | 10,895 | 4.0 | |||||||
| Commercial and industrial | 29,342 | 8.6 | 10,275 | 3.8 | |||||||
| Total commercial loans | 148,585 | 43.5 | 80,812 | 29.8 | |||||||
| . | |||||||||||
| Consumer loans | 458 | 0.2 | 493 | 0.2 | |||||||
| Total loans receivable | 341,234 | 100.0 | % | 270,931 | 100.0 | % | |||||
| Less: | |||||||||||
| Loans in process | 7,228 | 4,600 | |||||||||
| Deferred loan fees | 732 | 417 | |||||||||
| Allowance | 4,044 | 3,602 | |||||||||
| Total loans receivable, net | $ | 329,230 | $ | 262,312 | |||||||
Total deposits at September 30, 2016 were $334.7 million compared with $262.6 million at December 31, 2015. Overall, deposits increased by $72.1 million, or 27.5% with most of the growth occurring in interest demand deposits, which increased $51.5 million or 122.9%. Noninterest demand deposits also increased $5.5 million, or 19.4%. Most of the growth in these two categories continues to be attributable to developing stronger relationships with our commercial and small business customers.
The following table summarizes deposit balances and composition at September 30, 2016 and December 31, 2015:
| At | At | ||||||||||||
| (Dollars in thousands) | September 30, 2016 | December 31, 2015 | |||||||||||
| Noninterest demand | $ | 33,653 | 10.05 | % | $ | 28,173 | 10.73 | % | |||||
| Interest demand | 93,360 | 27.90 | 41,893 | 15.95 | |||||||||
| Savings | 104,700 | 31.28 | 102,196 | 38.92 | |||||||||
| Money Market | 9,544 | 2.85 | 4,928 | 1.88 | |||||||||
| Total demand deposits | 241,257 | 72.08 | 177,190 | 67.48 | |||||||||
| Certificates of Deposit | 93,433 | 27.92 | 85,408 | 32.52 | |||||||||
| Total Deposits | $ | 334,690 | 100.00 | % | $ | 262,598 | 100.00 | % | |||||
“I am very pleased with the production levels that we have achieved so far this year. Our growth in assets is largely reflective of the commercial relationships that have been fostered over the course of the first nine months of 2016,” stated Michael A. Shriner, President and Chief Executive Officer.
Mr. Shriner added, “We are very focused on executing on our strategic plan and our year to date results reflect our progress. The addition of seasoned professionals to both our Board and our staff are creating opportunities for the organization which in turn is reflected in our financials.”
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 and our continued ability to manage cybersecurity risks.
| MSB FINANCIAL CORP | ||||||
| (In Thousands, except for per share amount) | (Unaudited) | (Unaudited) | ||||
| Statement of Financial Condition Data: | 09/30/2016 | 09/30/2015 | ||||
| Total assets | $ | 433,630 | $ | 370,799 | ||
| Cash and cash equivalents | 31,647 | 16,290 | ||||
| Loans receivable, net | 329,230 | 252,242 | ||||
| Securities held to maturity | 44,676 | 80,118 | ||||
| Deposits | 334,690 | 258,112 | ||||
| Federal Home Loan Bank advances | 22,675 | 32,675 | ||||
| Total stockholders' equity | 72,571 | 76,349 | ||||
| Stock Information: | ||||||
| Number of shares of common stock outstanding | 5,711 | 5,954 | ||||
| Book value per share of common stock | $ | 12.71 | $ | 12.82 | ||
| Closing market price | $ | 13.51 | $ | 11.60 | ||
| Summary of Operations: (In Thousands, except for per share amounts) | (Unaudited) For the three months ended September 30, | (Unaudited) For the nine months ended September 30, | |||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||
| Total interest income | $ | 3,510 | $ | 3,116 | $ | 10,261 | $ | 9,083 | |||||
| Total interest expense | 566 | 532 | 1,598 | 1,634 | |||||||||
| Net interest income | 2,944 | 2,584 | 8,663 | 7,449 | |||||||||
| Provision for loan losses | 180 | 40 | 500 | 23 | |||||||||
| Net interest income after provision for loan losses | 2,764 | 2,544 | 8,163 | 7,426 | |||||||||
| Non-interest income | 183 | 172 | 836 | 504 | |||||||||
| Non-interest expense | 2,500 | 2,325 | 7,973 | 7,300 | |||||||||
| Income before taxes | 447 | 391 | 1,026 | 630 | |||||||||
| Income tax expense | 146 | 133 | 343 | 189 | |||||||||
| Net income | $ | 301 | $ | 258 | $ | 683 | $ | 441 | |||||
| Net income per common share - basic | $ | 0.05 | $ | 0.05 | $ | 0.12 | $ | 0.08 | |||||
| Net income per common share - diluted | $ | 0.05 | $ | 0.04 | $ | 0.12 | $ | 0.08 | |||||
| Weighted average number of shares - basic | 5,588 | 5,721 | 5,692 | 5,667 | |||||||||
| Weighted average number of shares - diluted | 5,670 | 5,765 | 5,768 | 5,693 | |||||||||
| Performance Ratios: | |||||||||||||
| Return on average assets annualized | 0.29 | % | 0.27 | % | 0.23 | % | 0.16 | % | |||||
| Return on average common equity annualized | 1.62 | % | 1.59 | % | 1.20 | % | 1.19 | % | |||||
| Net interest margin | 3.05 | % | 2.90 | % | 3.11 | % | 2.95 | % | |||||
| Efficiency ratio | 79.95 | % | 84.36 | % | 83.94 | % | 91.79 | % | |||||
| Operating expenses / average assets annualized | 2.45 | % | 2.46 | % | 2.72 | % | 2.71 | % | |||||
| For the three months ended | ||||||||||||||||||
| 09/30/16 | 09/30/15 | |||||||||||||||||
| Average Balance Sheet (In Thousands) | Average Balance | Interest Income/ Expense | Yield | Average Balance | Interest Income/ Expense | Yield | ||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans Receivable | $ | 305,405 | $ | 3,177 | 4.16 | % | $ | 250,835 | $ | 2,630 | 4.19 | % | ||||||
| Securities held to maturity | 47,293 | 276 | 2.33 | 81,394 | 449 | 2.21 | ||||||||||||
| Other interest-earning assets | 33,412 | 57 | 0.68 | 24,453 | 37 | 0.61 | ||||||||||||
| Total interest-earning assets | 386,110 | 3,510 | 3.64 | 356,682 | 3,116 | 3.49 | ||||||||||||
| Allowance for Loan Loss | (3,905 | ) | (3,583 | ) | ||||||||||||||
| Non-interest-earning assets | 26,133 | 25,165 | ||||||||||||||||
| Total non-interest-earning assets | 22,228 | 21,582 | ||||||||||||||||
| Total Assets | $ | 408,338 | $ | 378,264 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| NOW & Money Market | $ | 81,020 | $ | 60 | 0.30 | % | $ | 47,571 | $ | 20 | 0.17 | % | ||||||
| Savings and club deposits | 103,166 | 57 | 0.22 | 100,688 | 56 | 0.22 | ||||||||||||
| Certificates of deposit | 89,365 | 266 | 1.19 | 83,879 | 253 | 1.21 | ||||||||||||
| Total interest-bearing deposits | 273,551 | 383 | 0.56 | 232,138 | 329 | 0.57 | ||||||||||||
| Federal Home Loan Bank advances | 22,675 | 183 | 3.23 | 32,530 | 203 | 2.50 | ||||||||||||
| Total interest-bearing liabilities | 296,226 | 566 | 0.76 | 264,668 | 532 | 0.80 | ||||||||||||
| Non-interest-bearing deposit | 34,455 | 45,169 | ||||||||||||||||
| Other non-interest-bearing liabilities | 3,430 | 3,437 | ||||||||||||||||
| Total Liabilities | 334,111 | 313,274 | ||||||||||||||||
| Equity | 74,227 | 64,990 | ||||||||||||||||
| Total Liabilities and Equity | $ | 408,338 | $ | 378,264 | ||||||||||||||
| Net Interest Spread | 2,944 | 2.88 | % | 2,584 | 2.69 | % | ||||||||||||
| Net Interest Margin | 3.05 | % | 2.90 | % | ||||||||||||||
| Ratio of Interest Earning Assets to Interest Bearing Liabilities | 130.34 | % | 134.77 | % | ||||||||||||||
| For the nine months ended | ||||||||||||||||||
| 09/30/16 | 09/30/15 | |||||||||||||||||
| Average Balance Sheet (In Thousands) | Average Balance | Interest Income/ Expense | Yield | Average Balance | Interest Income/ Expense | Yield | ||||||||||||
| Interest-earning assets: | ||||||||||||||||||
| Loans Receivable | $ | 287,688 | $ | 9,097 | 4.22 | % | $ | 243,584 | $ | 7,716 | 4.22 | % | ||||||
| Securities held to maturity | 62,215 | 1,038 | 2.22 | 80,123 | 1,288 | 2.14 | ||||||||||||
| Other interest-earning assets | 21,136 | 126 | 0.79 | 13,349 | 79 | 0.79 | ||||||||||||
| Total interest-earning assets | 371,039 | 10,261 | 3.69 | 337,056 | 9,083 | 3.59 | ||||||||||||
| Allowance for Loan Loss | (3,749 | ) | (3,580 | ) | ||||||||||||||
| Non-interest-earning assets | 23,215 | 25,102 | ||||||||||||||||
| Total non-interest-earning assets | 19,466 | 21,522 | ||||||||||||||||
| Total Assets | $ | 390,505 | $ | 358,578 | ||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||
| NOW & Money Market | $ | 63,224 | $ | 118 | 0.25 | % | $ | 47,067 | $ | 56 | 0.16 | % | ||||||
| Savings and club deposits | 103,298 | 171 | 0.22 | 100,753 | 165 | 0.22 | ||||||||||||
| Certificates of deposit | 86,512 | 747 | 1.15 | 88,366 | 823 | 1.24 | ||||||||||||
| Total interest-bearing deposits | 253,034 | 1,036 | 0.55 | 236,186 | 1,044 | 0.59 | ||||||||||||
| Federal Home Loan Bank advances | 25,026 | 562 | 2.99 | 34,563 | 590 | 2.28 | ||||||||||||
| Total interest-bearing liabilities | 278,060 | 1,598 | 0.77 | 270,749 | 1,634 | 0.80 | ||||||||||||
| Non-interest-bearing deposit | 32,687 | 35,524 | ||||||||||||||||
| Other non-interest-bearing liabilities | 3,664 | 3,011 | ||||||||||||||||
| Total Liabilities | 314,411 | 309,284 | ||||||||||||||||
| Equity | 76,094 | 49,294 | ||||||||||||||||
| Total Liabilities and Equity | $ | 390,505 | $ | 358,578 | ||||||||||||||
| Net Interest Spread | 8,663 | 2.92 | % | 7,449 | 2.79 | % | ||||||||||||
| Net Interest Margin | 3.11 | % | 2.95 | % | ||||||||||||||
| Ratio of Interest Earning Assets to Interest Bearing Liabilities | 133.44 | % | 124.49 | % | ||||||||||||||
Contact: Michael A. Shriner, President & CEO (908) 647-4000 [email protected]
