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MSB Financial Corp. Releases Fourth Quarter Earnings

MILLINGTON, N.J., Feb. 05, 2019 (GLOBE NEWSWIRE) -- MSB Financial Corp. (MSBF) (the “Company”), parent company of Millington Bank, reported today the results of its operations for the three and twelve months ended December 31, 2018.

The Company reported net income of $1.3 million, or $0.24 per diluted common share, for the three months ended December 31, 2018, compared to net income of $0.3 million, or $0.05 per diluted common share, for the three months ended December 31, 2017. Net income for the twelve months ended December 31, 2018 was $4.8 million, or $0.90 per diluted common share, compared to net income of $2.7 million, or $0.48 per diluted common share, for the twelve months ended December 31, 2017.  Both the quarter and year ended December 31, 2017 had been impacted by the revaluation of the Company's deferred tax asset as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017.

Highlights for the quarter:

  • Return on average assets was 0.87% for the three months ended December 31, 2018 compared to 0.20% for the three months ended December 31, 2017 and return on average equity was 7.20% for the three months ended December 31, 2018 compared to 1.48% for the three months ended December 31, 2017.
  • Net interest margin decreased 8 basis points to 3.22% for the quarter ended December 31, 2018 from 3.30% for the quarter ended December 31, 2017.
  • The efficiency ratio, which is calculated by dividing non-interest expense by the sum of net interest income and non-interest income, was 62.51% for the quarter ended December 31, 2018 as compared to 62.26% for the quarter ended December 31, 2017.
  • Non-performing assets represented 0.71% of total assets at December 31, 2018 compared with 0.73% at December 31, 2017. The allowance for loan losses as a percentage of total non-performing loans was 136.83% at December 31, 2018 compared to 130.99% at December 31, 2017.
  • The Company’s balance sheet reflected total asset growth of $21.5 million at December 31, 2018, compared to December 31, 2017, improved asset quality, and capital levels that exceeded regulatory standards for a well-capitalized institution.
  • The effective tax rate decreased to 28.1% for the quarter ended December 31, 2018 compared to 82.0% for the quarter ended December 31, 2017 primarily due to the revaluation of the Company's deferred tax asset in the 2017 period as a result of the passage of the Tax Cuts and Jobs Act on December 22, 2017.


Selected Financial Ratios 
(unaudited; annualized where applicable) 
                     
As of or for the quarter ended:   12/31/2018   9/30/2018   6/30/2018   3/31/2018   12/31/2017
Return on average assets    0.87 %   0.92 %   0.87 %   0.74 %   0.20 %
Return on average equity   7.20 %   7.56 %   7.17 %   5.65 %   1.48 %
Net interest margin   3.22 %   3.44 %   3.24 %   3.24 %   3.30 %
Net loans / deposit ratio   119.43 %   113.08 %   113.64 %   110.85 %   105.46 %
Shareholders' equity / total assets   11.40 %   11.86 %   11.39 %   12.37 %   12.97 %
Efficiency ratio   62.51 %   61.96 %   62.49 %   66.29 %   62.26 %
Book value per common share   $ 12.37     $ 12.70     $ 12.43     $ 12.63     $ 12.66  


Net Interest Income

Total interest income for the three months ended December 31, 2018 increased $626,000, or 11.6%, to $6.0 million compared to $5.4 million for the fourth quarter of 2017. Interest income increased in the quarter ended December 31, 2018 compared to the comparable period in 2017, primarily due to a $27.0 million increase in average loan balances. Total interest expense increased by $492,000, or 46.8%, to $1.5 million, for the three months ended December 31, 2018 compared to the same period in 2017 due to a combination of higher deposit rates and an increase in the average balance of borrowings outstanding during the 2018 period.

Net interest income for the three months ended December 31, 2018 increased $134,000, or 3.1%, to $4.5 million compared to $4.3 million for the same three-month period in 2017. The change for the three months ended December 31, 2018 was primarily a result of an increase in average earning assets of $29.7 million partially offset by decreasing margin. The annualized net interest spread was 2.98% and 3.12% for the three months ended December 31, 2018 and 2017, respectively. For the quarter ended December 31, 2018, the Company's annualized net interest margin decreased to 3.22% compared to 3.30% for the corresponding three-month period in 2017.

Total interest income for the twelve months ended December 31, 2018, increased $3.8 million, or 19.8%, to $23.3 million compared to $19.5 million for the twelve months ended December 31, 2017 as average earning assets increased $64.3 million year over year. Total interest expense increased by $2.0 million, or 56.6%, to $5.4 million for the twelve months ended December 31, 2018 compared to December 31, 2017 as average interest-bearing liabilities increased $68.0 million year over year and the average cost of such liabilities increased 30 basis points.

Net interest income grew $1.9 million, or 11.9%, to $17.9 million for the twelve months ended December 31, 2018 compared to $16.0 million for the twelve months ended December 31, 2017. Net interest spread and net interest margin for the twelve months ended December 31, 2018, declined 7 and 5 basis points respectively, to 3.08% and 3.28% compared to 3.15% and 3.33% for the twelve months ended December 31, 2017. Net interest spread and net interest margin decreased as the Company's average borrowings increased in addition to deposit pricing that has continued to become more competitive year over year.

Provision for loan losses

The loan loss provision for the three months ended December 31, 2018 was zero compared to $200,000 for the same period in 2017.  The loan loss provision for the year ended December 31, 2018  was $240,000 compared to $1,185,000 for the year ended December 31, 2017.  The decrease in the level of provision for loan loss primarily reflects lower loan growth 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 December 31, 2018 was $198,000, as compared to $211,000 for the same period in 2017.  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 December 31, 2018 as compared to $2.8 million for the same period in 2017. The increase in non-interest expense was related to an increase professional service expense due to the costs associated with our Sarbanes-Oxley implementation which requires additional reporting on internal control over the financial reporting of the Company, offset by decreases in various expense categories. Previously, the Company was not subject to these requirements as its public float was below the applicable threshold.

Non-interest income for the twelve months ended December 31, 2018 was $800,000, as compared to $822,000 for the same period in 2017.  Non-interest expense totaled $11.9 million for the twelve months ended December 31, 2018 as compared to $11.2 million for 2017 with the $680,000 increase primarily attributable to increased professional services expense as a result of costs associated with our Sarbanes-Oxley implementation.  In addition, salaries and employee benefits increased as a result of merit and infrastructure increases while service bureau fees increased as a result of a reduction in the Company's relationship credit that declines every year.

Taxes

For the three months ended December 31, 2018, the Company recorded a $491,000 tax provision compared to $1,240,000 for the three months ended December 31, 2017. The effective tax rate decreased to 28.1% for the quarter ended December 31, 2018 compared to 82.0% for the quarter ended December 31, 2017. As a result of the passage of the Tax Cuts and Jobs Act on December 22, 2017, the federal tax rate for corporations was reduced to 21% during 2018. The decrease in tax provision and effective tax rate is primarily attributable to the revaluation of the Company's deferred tax asset as a result of the law change at December 31, 2017.

For the twelve months ended December 31, 2018 and December 31, 2017, the Company recorded a $1.8 million tax provision. The effective tax rate decreased to 27.2% for the twelve months ended December 31, 2018 compared to 39.4% for the twelve months ended December 31, 2017.  The decrease in the effective tax rate is due to the revaluation of the Company's deferred tax asset as a result of the law change at December 31, 2017.

Earnings Summary for Period Ended December 31, 2018

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:   12/31/2018
  9/30/2018
  6/30/2018
  3/31/2018
  12/31/2017
Net interest income    $ 4,459     $ 4,755     $ 4,431     $ 4,302     $ 4,325   
Provision for loan losses       60     90     90     200  
Net interest income after provision for loan losses   4,459     4,695     4,341     4,212     4,125  
Other income   198     190     208     204     211  
Other expense   2,911     3,064     2,899     2,987     2,824  
Income before income taxes   1,746     1,821     1,650     1,429     1,512  
Income taxes (benefit)   491     506     407     407     1,240  
Net income   $ 1,255     $ 1,315     $ 1,243     $ 1,022     $ 272   
Earnings per common share:                              
Basic   $ 0.24     $ 0.25     $ 0.23     $ 0.19     $ 0.05   
Diluted   $ 0.24     $ 0.24     $ 0.23     $ 0.19     $ 0.05   
Weighted average common shares outstanding:                              
Basic   5,276,116     5,330,029     5,331,090     5,470,349     5,577,314  
Diluted   5,317,305     5,388,577     5,375,090     5,507,443     5,588,598  


Statement of Condition Highlights at December 31, 2018

  • Balance sheet growth, with total assets amounting to $584.5 million at December 31, 2018, an increase of $21.5 million, or 3.81%, compared to December 31, 2017.
  • The Company’s total gross loans receivable were $508.0 million at December 31, 2018, an increase of $29.1 million, or 6.1%, from December 31, 2017.
  • Securities held to maturity were $39.5 million at December 31, 2018, an increase of $1.0 million, or 2.6%, compared to December 31, 2017.
  • Deposits decreased $28.3 million or 6.31%, totaling $420.6 million at December 31, 2018 compared to $448.9 million at December 31, 2017.
  • Borrowings totaled $94.3 million at December 31, 2018, an increase of $56.6 million, or 150.2%, compared to $37.7 million at December 31, 2017.

The following table presents condensed consolidated statements of condition data as of the dates indicated.

Condensed Consolidated Statements of Condition (unaudited)
                                         
(in thousands)
                                         
At:   12/31/2018     9/30/2018     6/30/2018     3/31/2018     12/31/2017  
Cash and due from banks    $ 1,558     $ 1,254     $ 1,654     $ 1,871     $ 2,030  
Interest-earning demand deposits with banks   10,242     20,817     14,660     15,484     20,279  
Securities held to maturity   39,476     43,009     44,770     36,375     38,482  
Loans receivable, net of allowance   502,299     494,848     509,689     480,916     473,405  
Premises and equipment   8,180     8,323     8,461     8,580     8,698  
Federal home Loan Bank of New York stock, at cost   4,756     4,117     4,212     3,049     2,131  
Bank owned life insurance   14,585     14,489     14,392     14,294     14,197  
Accrued interest receivable   1,615     1,734     1,754     1,642     1,607  
Other assets   1,789     1,803     1,657     1,816     2,211  
Total assets   $ 584,500     $ 590,394     $ 601,249     $ 564,027     $ 563,040  
Deposits   $ 420,579     $ 437,597     $ 448,512     $ 433,843     $ 448,913  
Borrowings   94,275     80,075     82,175     58,075     37,675  
Other liabilities   3,000     2,714     2,056     2,350     3,427  
Shareholders' equity   66,646     70,008     68,506     69,759     73,025  
Total liabilities and shareholders' equity   $ 584,500     $ 590,394     $ 601,249     $ 564,027     $ 563,040  


Loans

At December 31, 2018, the Company’s net loan portfolio totaled $502.3 million, an increase of $28.9 million, or 6.1%, compared to $473.4 million at December 31, 2017.  The allowance for loan losses amounted to $5.7 million and $5.4 million at December 31, 2018 and December 31, 2017, respectively.

At December 31, 2018, the loan portfolio primarily consisted of commercial real estate loans (41.0%) and residential mortgages (32.3%). Commercial and industrial loans represented 20.9% of the portfolio while construction loans accounted for 5.7% of the portfolio. Total loans receivable increased $20.0 million to $519.1 million at December 31, 2018 compared to $499.2 million at December 31, 2017. The increase primarily reflects a $35.1 million increase in commercial and industrial loans and a $15.9 million increase in commercial real estate loans. These increases were partially offset by a $16.9 million decrease in residential mortgages as the Company continues to focus on commercial lending as well as a $14.1 million decrease in construction due to the completion of projects.

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:   12/31/2018     9/30/2018     6/30/2018     3/31/2018     12/31/2017  
Residential mortgage:                                         
One-to-four family   $ 143,391     $ 147,127     $ 151,372     $ 154,576     $ 157,876  
Home equity   24,365     25,494     26,174     27,051     26,803  
Total residential mortgage   167,756     172,621     177,546     181,627     184,679  
Commercial and multi-family real estate   212,606     209,283     214,653     195,951     196,681  
Construction   29,628     28,788     48,423     49,397     43,718  
Commercial and industrial   108,602     101,849     94,140     82,712     73,465  
Total commercial loans   350,836     339,920     357,216     328,060     313,864  
Consumer loans   540     580     608     595     618  
Total loans receivable   519,132     513,121     535,370     510,282     499,161  
Less:                              
Loans in process   10,677     12,142     19,594     23,398     19,868  
Deferred loan fees   501     475     491     462     474  
Allowance   5,655     5,656     5,596     5,506     5,414  
Total loans receivable, net   $ 502,299     $ 494,848     $ 509,689     $ 480,916     $ 473,405  


Asset Quality

At December 31, 2018 and December 31, 2017, non-performing loans totaled $4.1 million, or 0.71% and 0.73% of total assets, respectively. Nonperforming loans remained relatively flat year over year as three new relationships were added, offset by the resolution of eight relationships throughout the year.  Total delinquent loans (including nonperforming delinquent loans) were $6.3 million at December 31, 2018, an increase of $900,000 from December 31, 2017 due to an increase in loans past due 30-59 days.  The allowance for loan losses as a percentage of total loans was 1.11% at December 31, 2018 and at December 31, 2017, respectively, while the allowance for loan losses as a percentage of non-performing loans increased to 136.83% at December 31, 2018 from 130.99% at December 31, 2017. Non-performing loans to total loans decreased to 0.81% at December 31, 2018 from 0.86% at December 31, 2017 primarily due to an increase in loan growth.

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:   12/31/2018   9/30/2018   6/30/2018   3/31/2018   12/31/2017
Non-accrual loans    $4,131     $2,746     $3,430     $3,548     $3,975  
Loans 90 days or more past due and still accruing   2     101     699     1,266     158  
Total non-performing loans   $ 4,133     $ 2,847     $ 4,129     $ 4,814     $ 4,133  
                     
Non-performing assets / total assets   0.71 %   0.48 %   0.69 %   0.85 %   0.73 %
Non-performing loans / total loans   0.81 %   0.57 %   0.80 %   0.99 %   0.86 %
Net charge-offs (recoveries)   $     $     $     $ (2 )   $ 61  
Net charge-offs (recoveries) / average loans (annualized)   %   %   %   %   0.05 %
Allowance for loan loss / total loans   1.11 %   1.13 %   1.09 %   1.13 %   1.13 %
Allowance for loan losses / non-performing loans   136.83 %   198.67 %   135.53 %   114.37 %   130.99 %
                     
Total assets   $ 584,500     $ 590,394     $ 601,249     $ 564,027     $ 563,040  
Gross loans, excluding ALLL   $ 507,954     $ 500,504     $ 515,285     $ 486,422     $ 478,819  
Average loans   $ 499,368     $ 499,082     $ 500,959     $ 483,255     $ 472,388  
Allowance for loan losses   $ 5,655     $ 5,656     $ 5,596     $ 5,506     $ 5,414  


Deposits

Total deposits at December 31, 2018 decreased to $420.6 million from $448.9 million compared to year-end 2017.  Interest demand and money market balances declined $21.1 million and $11.2 million, respectively.  Interest demand deposit account balances declined to $134.1 million compared to $155.2 million the year prior while money market balances declined to $16.2 million compared to $27.4 million at the prior year-end.  In addition, certificates of deposit (including IRAs) and savings balances decreased $3.4 million and $2.4 million, respectively year over year.  Certificates of deposits declined to $120.9 million compared to $124.3 million while savings balances declined to $102.7 million from $105.1 million from prior year end.  Offsetting these decreases was an increase in non-interest demand balances of $9.8 million to $46.7 million at December 31, 2018 from $36.9 million from year end at December 31, 2017.

The following table shows the composition of the Company's deposits as of the dates indicated.

Deposits (unaudited) 
                                         
(dollars in thousands) 
 
At quarter ended:   12/31/2018   9/30/2018   6/30/2018   3/31/2018   12/31/2017
Demand:                                         
Non-interest bearing   $ 46,690     $ 45,501     $ 42,687     $ 36,751     $ 36,919  
Interest-bearing   134,123     150,248     153,968     148,888     155,199  
Savings   102,740     102,434     109,254     109,215     105,106  
Money market   16,171     12,822     14,381     20,251     27,350  
Time   120,855     126,592     128,222     118,738     124,339  
Total deposits   $ 420,579     $ 437,597     $ 448,512     $ 433,843     $ 448,913  


Capital

At December 31, 2018, the Company's total stockholders' equity amounted to $66.6 million, or 11.40% of total assets, compared to $73.0 million at December 31, 2017.  The Company’s book value per common share was $12.37 at December 31, 2018, compared to $12.66 at December 31, 2017. The decline in shareholders' equity was primarily due to the repurchase of 373,948 shares of common stock at a total cost of $6.7 million and the payment of two special dividends in the aggregate amount of $5.0 million, partially offset by net income of $4.8 million.

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 December 31, 2017, the Bank’s common equity tier 1 ratio was 11.98%, tier 1 leverage ratio was 10.72%, tier 1 capital ratio was 11.98% and the total capital ratio was 13.10%.  At December 31, 2018, Company and the Bank were 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:   12/31/2018   9/30/2018   6/30/2018   3/31/2018   12/31/2017
Loans    $499,368     $499,082     $500,959     $483,255     $472,388  
Securities held to maturity   41,460     43,871     36,494     37,661     39,899  
Allowance for loan losses   (5,686 )   (5,624 )   (5,538 )   (5,461 )   (5,376 )
All other assets   41,211     37,466     38,053     38,851     41,886  
Total assets   $ 576,353     $ 574,795     $ 569,968     $ 554,306     $ 548,797  
Non-interest bearing deposits   $ 48,172     $ 43,495     $ 38,903     $ 36,211     $ 43,336  
Interest-bearing deposits   372,474     386,364     385,047     390,522     375,098  
Borrowings   83,440     73,077     74,192     53,191     53,844  
Other liabilities   2,585     2,320     2,495     1,972     3,104  
Stockholders' Equity   69,682     69,539     69,331     72,410     73,415  
Total liabilities and shareholders' equity   $ 576,353     $ 574,795     $ 569,968     $ 554,306     $ 548,797  


CEO outlook:

"2018 was a challenging year for the Company due to intense competition for both loans and deposits in a rising interest rate environment," stated Michael Shriner, President and Chief Executive Officer.  Mr. Shriner added "However, I am very proud of our team for remaining focused on the bigger picture of growing the Company in a safe and sound manner, and still creating value for our shareholder through the combination of stock repurchases and the distribution of two special dividends."

Mr. Shriner further commented, “From the top down, we are committed to the overall improvement of the Company in 2019.  Our management team continues to seek ways to become more efficient, improve the overall risk profile of the Company, and to create even more value for our shareholders, customers, employees and the community."

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 and our continued ability to manage cybersecurity risks.


    Michael A. Shriner, President & CEO  
  Contact: (908) 647-4000  
    mshriner@millingtonbank.com  


             
MSB Financial Corp. and Subsidiaries
             
Consolidated Statements of Financial Condition
  At
December 31,
2018
At
December 31,
2017
(Dollars in thousands, except per share amounts)             
Cash and due from banks $ 1,558   $ 2,030  
Interest-earning demand deposits with banks 10,242   20,279  
Cash and Cash Equivalents 11,800   22,309  
Securities held to maturity (fair value of $38,569 and $38,255, respectively) 39,476   38,482  
Loans receivable, net of allowance for loan losses of $5,655 and $5,414, respectively 502,299   473,405  
Premises and equipment 8,180   8,698  
Federal Home Loan Bank of New York stock, at cost 4,756   2,131  
Bank owned life insurance 14,585   14,197  
Accrued interest receivable 1,615   1,607  
Other assets 1,789   2,211  
Total Assets $ 584,500   $ 563,040  
Liabilities and Stockholders' Equity    
Liabilities    
Deposits:    
Non-interest bearing $ 46,690   $ 36,919  
Interest bearing 373,889   411,994  
Total Deposits 420,579   448,913  
Advances from Federal Home Loan Bank of New York 94,275   37,675  
Advance payments by borrowers for taxes and insurance 749   686  
Other liabilities 2,251   2,741  
Total Liabilities 517,854   490,015  
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; 5,389,054 and 5,768,632 issued and outstanding at December 31, 2018 and December 31, 2017, respectively 54   58  
Paid-in capital 44,726   51,068  
Retained earnings 23,498   23,641  
Unearned common stock held by ESOP (179,464 and 190,390 shares, respectively) (1,632 ) (1,742 )
Total Stockholders' Equity 66,646   73,025  
Total Liabilities and Stockholders' Equity $ 584,500   $ 563,040  
     
     


                                 
MSB Financial Corp. and Subsidiaries
                                 
Consolidated Statements of Income
    Three months ended
December 31,

  Twelve months ended
December 31,

    2018   2017   2018   2017
(in thousands except per share amounts)                 
Interest Income                
Loans receivable, including fees   $ 5,600     $ 5,065     $ 21,960     $ 18,278  
Securities held to maturity   302     249     1,065     1,011  
Other   101     63     320     191  
Total Interest Income   6,003     5,377     23,345     19,480  
Interest Expense                
Deposits   1,039     747     3,834     2,450  
Borrowings   505     305     1,564     996  
Total Interest Expense   1,544     1,052     5,398     3,446  
Net Interest Income   4,459     4,325     17,947     16,034  
Provision for Loan Losses       200     240     1,185  
Net Interest Income after Provision for Loan Losses   4,459     4,125     17,707     14,849  
Non-Interest Income                
Fees and service charges   82     86     334     342  
Income from bank owned life insurance   96     100     388     413  
Other   20     25     78     67  
Total Non-Interest Income   198     211     800     822  
Non-Interest Expenses                
Salaries and employee benefits   1,566     1,579     6,673     6,240  
Directors compensation   125     192     490     743  
Occupancy and equipment   392     403     1,564     1,620  
Service bureau fees   96     65     347     229  
Advertising   2     12     33     24  
FDIC assessment   17     53     211     184  
Professional services   513     297     1,730     1,347  
Other   200     223     813     794  
Total Non-Interest Expenses   2,911     2,824     11,861     11,181  
Income before Income Taxes   1,746     1,512     6,646     4,490  
Income Tax Expense   491     1,240     1,811     1,768  
Net Income   $ 1,255     $ 272     $ 4,835     $ 2,722  
Earnings per share:                
Basic   $ 0.24     $ 0.05     $ 0.90     $ 0.49  
Diluted   $ 0.24     $ 0.05     $ 0.90     $ 0.48  
                 
                 


                       
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)  12/31/2018   9/30/2018   12/31/2017 
(unaudited)           
Statements of Operations Data          
           
Interest income $ 6,003     $ 6,175     $ 5,377  
Interest expense 1,544     1,420     1,052  
Net interest income 4,459     4,755     4,325  
Provision for loan losses     60     200  
Net interest income after provision for loan losses 4,459     4,695     4,125  
Other income 198     190     211  
Other expense 2,911     3,064     2,824  
Income before income taxes 1,746     1,821     1,512  
Income tax expense (benefit) 491     506     1,240  
Net Income $ 1,255     $ 1,315     $ 272  
Earnings (per Common Share)          
Basic $ 0.24     $ 0.25     $ 0.05  
Diluted $ 0.24     $ 0.24     $ 0.05  
Statements of Condition Data (Period-End)          
Investment securities held to maturity (fair value of $38,569, $41,765, and $38,255) $ 39,476     $ 43,009     $ 38,482  
Loans receivable, net of allowance for loan losses 502,299     494,848     473,405  
Total assets 584,500     590,394     563,040  
Deposits 420,579     437,597     448,913  
Borrowings 94,275     80,075     37,675  
Stockholders' equity 66,646     70,008     73,025  
Common Shares Dividend Data          
Cash dividends $ 2,522     $—   $—
Weighted Average Common Shares Outstanding                 
Basic 5,276,116     5,330,029     5,577,314  
Diluted 5,317,305     5,388,577     5,588,598  
Operating Ratios          
Return on average assets 0.87 %   0.92 %   0.20 %
Return on average equity 7.20 %   7.56 %   1.48 %
Average equity / average assets 12.09 %   12.10 %   13.38 %
Book value per common share (period-end) $ 12.37     $ 12.70     $ 12.66