MSB Fi­nan­cial Corp an­nounces quar­terly earn­ings

The Pak Banker - - Front Page -

MILLING­TON, N.J

MSB Fi­nan­cial Corp, the hold­ing com­pany for Milling­ton Sav­ings Bank re­ported a net loss of $92,000 for the three months ended Septem­ber 30, 2012. This com­pares to net in­come of $111,000 for the quar­ter ended Septem­ber 30, 2011.

The de­crease was at­trib­ut­able to a de­crease in net in­ter­est in­come and an in­crease in the pro­vi­sion for loan losses, par­tially off­set by an in­crease in non-in­ter­est in­come and de­creases in non-in­ter­est ex­pense and in­come tax pro­vi­sion.

Net in­ter­est in­come for the quar­ter ended Septem­ber 30, 2012 was $2.4 mil­lion, as com­pared to $2.7 for the quar­ter ended Septem­ber 30, 2011. To­tal in­ter­est in­come de­creased by $469,000 or 13.0% for the three months ended Septem­ber 30, 2012 com­pared to the three months ended Septem­ber 30, 2011 due to a de­crease of $10.2 mil­lion or 3.2% in av­er­age in­ter­est earn­ing as­sets and a 46 ba­sis point de­crease in the av­er­age rate thereon, from 4.56% for the three months ended Septem­ber 30, 2011 to 4.10% for the three months ended Septem­ber 30, 2012. Cor­re­spond­ingly, to­tal in­ter­est ex­pense de­creased by $186,000 or 20.4% for the three months ended Septem­ber 30, 2012 com­pared to the three months ended Septem­ber 30, 2011, due to a $6.9 mil­lion or 2.4% de­crease in av­er­age in­ter­est­bear­ing li­a­bil­i­ties and a 23 ba­sis point re­duc­tion in the av­er­age cost of in­ter­est bear­ing li­a­bil­i­ties from 1.25% to 1.02%.

The in­ter­est rate spread for the Septem­ber 30, 2012 quar­ter was 3.08%, com­pared to 3.31% for the quar­ter ended Septem­ber 30, 2011. The pro­vi­sion for loan losses was $746,000 for the quar­ter ended Septem­ber 30, 2012, an in­crease of $133,000 or 21.7% over the $613,000 pro­vided dur­ing the quar­ter ended Septem­ber 30, 2011. The Bank's man­age­ment re­views the level of the al­lowance for loan losses and es­tab­lishes the pro­vi­sion for loan losses on a quar­terly ba­sis based on var­i­ous qual­i­ta­tive and quan­ti­ta­tive fac­tors. The in­crease in the pro­vi­sion dur­ing the cur­rent pe­riod re­flects the Bank's in­creased charge-off ex­pe­ri­ence in re­cent quar­ters. The Bank had $16.2 mil­lion in non­per­form­ing loans as of Septem­ber 30, 2012 com­pared to $17.2 mil­lion as of Septem­ber 30, 2011.

The al­lowance for loan losses to to­tal loans ra­tio was 1.17% at Septem­ber 30, 2012 com­pared to 1.09% at Septem­ber 30, 2011, while the al­lowance for loan losses to non-per­form­ing loans ra­tio in­creased from 15.95% at Septem­ber 30, 2011 to 17.65% at Septem­ber 30, 2012 pri­mar­ily the re­sult of lower loan balances and a higher loan loss re­serve bal­ance as of Septem­ber 30, 2012 com­pared to the pe­riod ended Septem­ber 30, 2011.

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