MSBF MSB Financial Corporation

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, 2019.

The Company reported net income of $1.1 million, or $0.22 per diluted common share, for the three months ended September 30, 2019, compared to net income of $1.3 million, or $0.24 per diluted common share, for the three months ended September 30, 2018.  Net income for the nine months ended September 30, 2019 was $2.9 million, or $0.55 per diluted common share, compared to net income of $3.6 million, or $0.66 per diluted common share, for the nine months ended September 30, 2018.  The nine months ended September 30, 2019 were 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 nine months ended September 30, 2019 would have been $3.4 million or $0.67 per diluted share.

Highlights for the quarter:

• Return on average assets was 0.77% for the three months ended September 30, 2019 compared to 0.92% for the three months ended September 30, 2018 and return on average equity was 6.79% for the three months ended September 30, 2019 compared to 7.56% for the three months ended September 30, 2018.
• Net interest margin decreased thirty-two basis points to 3.12% for the quarter ended September 30, 2019 from 3.44% for the quarter ended September 30, 2018.  Contributing to the decrease in net interest margin was higher interest expense on deposits and borrowings.
• The efficiency ratio, which is calculated by dividing non-interest expense by the sum of net interest income and non-interest income, was 64.30% for the quarter ended September 30, 2019 as compared to 61.96% for the quarter ended September 30, 2018.
• Non-performing assets represented 0.58% of total assets at September 30, 2019 compared with 0.71% at December 31, 2018. The allowance for loan losses as a percentage of total non-performing loans was 164.95% at September 30, 2019 compared to 136.83% at December 31, 2018.
• The Company’s balance sheet at September 30, 2019 reflected an increase in total assets of $6.8 million compared to December 31, 2018, due to increases in interest earning demand deposits with banks and net loans receivable.
• The effective tax rate increased to 31.2% for the quarter ended September 30, 2019 compared to 27.8% for the quarter ended September 30, 2018.  The increase in tax rate was due to the true up of tax expense to the return during the third quarter.

Selected Financial Ratios
(unaudited; annualized where applicable)
As of or for the quarter ended:		9/30/2019				6/30/2019				3/31/2019				12/31/2018				9/30/2018
Return on average assets		0.77		%		0.85		%		0.36		%		0.87		%		0.92		%
Return on average equity		6.79		%		7.28		%		3.05		%		7.20		%		7.56		%
Net interest margin		3.12		%		3.21		%		3.19		%		3.22		%		3.44		%
Net loans / deposit ratio		106.56		%		118.62		%		113.10		%		119.43		%		113.08		%
Shareholders' equity / total assets		10.86		%		11.42		%		11.77		%		11.40		%		11.86		%
Efficiency ratio		64.30		%		62.97		%		83.83		%		62.51		%		61.96		%
Book value per common share		$	12.35			$	12.64			$	12.46			$	12.37			$	12.70

Net Interest Income

Total interest income for the three months ended September 30, 2019 was flat at $6.2 million compared to the same three month period in 2018. Interest income was unchanged in the quarter ended September 30, 2019 compared to the comparable period in 2018, as a result of loan yields remaining relatively flat for most of the 2019 quarter.  Total interest expense increased by $418,000, or 29.4%, to $1.8 million, for the three months ended September 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 September 30, 2019 decreased $414,000, or 8.71% to $4.3 million compared to the same three month period in 2018.  The change for the three months ended September 30, 2019 was primarily the result of higher interest expense on deposits and borrowings.  The annualized net interest spread was 2.85% and 3.23% for the three months ended September 30, 2019 and 2018, respectively. For the quarter ended September 30, 2019, the Company's annualized net interest margin decreased to 3.12% compared to 3.44% for the corresponding three-month period in 2018.

Total interest income for the nine months ended September 30, 2019, increased $1.1 million, or 6.41%, to $18.5 million compared to $17.3 million for the nine months ended September 30, 2018, as average earning assets increased $10.0 million year over year.  In addition, the average interest earned on such assets increased 19 basis points.  Total interest expense increased by $1.4 million, or 36.97%, to $5.3 million for the nine months ended September 30, 2019 compared to September 30, 2018, as average interest bearing liabilities increased $4.5 million year over year and the average cost of such liabilities increased -40 basis points.

Net interest income decreased $314,000, or 2.3%, to $13.2 million for the nine months ended September 30, 2019, compared to $13.5 million for the nine months ended September 30, 2018.  Net interest spread and net interest margin for the nine months ended September 30, 2019, decreased 21 and 14 basis points, respectively, to 2.91% and 3.17%, compared to 3.12% and 3.31% for the nine months ended September 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 September 30, 2019 was zero compared to $60,000 for the same period in 2018.     The loan loss provision for the nine months ended September 30, 2019 was zero compared to $240,000 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 September 30, 2019 was $199,000, as compared to $190,000 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 September 30, 2019 compared to $3.1 million the same period in 2018.

Non-interest income for the nine months ended September 30, 2019 was $593,000, as compared to $602,000 for the same period in 2018.  Non-interest expense totaled $9.7 million for the nine months ended September 30, 2019, as compared to $9.0 million for the same period in 2018.  The increase in non-interest expense was primarily related to an increase in professional services expense.

Taxes

For the three months ended September 30, 2019, the Company recorded a $505,000 tax provision compared to $506,000 for the three months ended September 30, 2018. The effective tax rate increased to 31.2% for the quarter ended September 30, 2019, compared to 27.8% for the quarter ended September 30, 2018.

For the nine months ended September 30, 2019, the Company recorded a $1.2 million tax provision compared to a provision of $1.3 million for the nine months ended September 30, 2018. The effective tax rate increased to 30.0% for the nine months ended September 30, 2019, compared to 26.9% for the nine months ended September 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:		9/30/2019			6/30/2019			3/31/2019			12/31/2018			9/30/2018
Net interest income		$	4,341		$	4,411		$	4,423		$	4,459		$	4,755
Provision for loan losses		—			—			—			—			60
Net interest income after provision for loan losses		4,341			4,411			4,423			4,459			4,695
Other income		199			204			190			198			190
Other expense		2,919			2,906			3,867			2,911			3,064
Income before income taxes		1,621			1,709			746			1,746			1,821
Income taxes (benefit)		505			487			232			491			506
Net income		$	1,116		$	1,222		$	514		$	1,255		$	1,315
Earnings per common share:
Basic		$	0.22		$	0.24		$	0.10		$	0.24		$	0.25
Diluted		$	0.22		$	0.24		$	0.10		$	0.24		$	0.24
Weighted average common shares outstanding:
Basic		5,046,935			5,126,938			5,198,432			5,276,116			5,330,029
Diluted		5,070,353			5,155,258			5,237,329			5,317,305			5,388,577

Statement of Condition Highlights at September 30, 2019

• Total assets amounted to $591.3 million at September 30, 2019, an increase of $6.8 million, or 1.16%, compared to December 31, 2018.
• The Company’s total loans receivable, excluding the ALLL, were $512.9 million at September 30, 2019, an increase of $5.0 million, or 1.0%, from December 31, 2018.
• Securities held to maturity were $38.1 million at September 30, 2019, a decrease of $1.4 million, or 3.6% compared to December 31, 2018.
• Deposits increased $55.5 million, or 13.19%, to $476.1 million at September 30, 2019 compared to $420.6 million at December 31, 2018.
• Borrowings totaled $47.3 million at September 30, 2019, a decrease of $47.0 million, or 49.85%, 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:		9/30/2019			6/30/2019			3/31/2019			12/31/2018			9/30/2018
Cash and due from banks		$	1,087		$	1,200		$	1,040		$	1,558		$	1,254
Interest-earning demand deposits with banks		14,638			14,473			9,771			10,242			20,817
Securities held to maturity		38,073			39,455			36,982			39,476			43,009
Loans receivable, net of allowance		507,270			494,192			489,445			502,299			494,848
Premises and equipment		8,136			8,006			8,088			8,180			8,323
Federal Home Loan Bank of New York stock, at cost		2,654			4,805			3,406			4,756			4,117
Bank owned life insurance		14,872			14,775			14,679			14,585			14,489
Accrued interest receivable		1,687			1,715			1,772			1,615			1,734
Other assets		2,836			2,863			2,910			1,789			1,803
Total assets		$	591,253		$	581,484		$	568,093		$	584,500		$	590,394
Deposits		$	476,064		$	416,607		$	432,754		$	420,579		$	437,597
Borrowings		47,275			95,075			64,275			94,275			80,075
Other liabilities		3,694			3,423			4,172			3,000			2,714
Stockholders' equity		64,220			66,379			66,892			66,646			70,008
Total liabilities and stockholders' equity		$	591,253		$	581,484		$	568,093		$	584,500		$	590,394

Loans

At September 30, 2019, the Company’s net loan portfolio totaled $507.3 million, an increase of $5.0 million, or 1.0%, compared to $502.3 million at December 31, 2018.  The allowance for loan losses amounted to $5.7 million at September 30, 2019 and December 31, 2018.

At September 30, 2019, the loan portfolio primarily consisted of commercial real estate loans (40.6%) and residential mortgages (29.9%). Commercial and industrial loans represented 20.9% of the portfolio, while construction loans accounted for 8.5% of the portfolio. Total gross loans receivable increased $12.9 million to $532.0 million at September 30, 2019, compared to $519.1 million at December 31, 2018. The increase primarily reflects an increase in commercial loans of $21.7 million and a decrease of $8.7 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:		9/30/2019			6/30/2019			3/31/2019			12/31/2018			9/30/2018
Residential mortgage:
One-to-four family		$	135,657		$	139,119		$	140,043		$	143,391		$	147,127
Home equity		23,385			23,596			25,160			24,365			25,494
Total residential mortgage		159,042			162,715			165,203			167,756			172,621
Commercial and multi-family real estate		216,095			207,866			206,653			212,606			209,283
Construction		45,404			42,356			37,319			29,628			28,788
Commercial and industrial - Secured		59,248			50,802			49,640			60,426			56,331
Commercial and industrial - Unsecured		51,832			56,672			53,791			48,176			45,518
Total commercial loans		372,579			357,696			347,403			350,836			339,920
Consumer loans		411			425			470			540			580
Total loans receivable		532,032			520,836			513,076			519,132			513,121
Less:
Loans in process		18,598			20,447			17,443			10,677			12,142
Deferred loan fees		503			536			530			501			475
Allowance		5,661			5,661			5,658			5,655			5,656
Total loans receivable, net		$	507,270		$	494,192		$	489,445		$	502,299		$	494,848

Asset Quality

At September 30, 2019 and December 31, 2018 non-performing loans totaled $3.4 million and $4.1 million, or 0.58% and 0.71% of total assets, respectively.  Nonperforming loans decreased slightly since year end 2018, as two relationships were resolved in the second and third quarters, while one new relationship was added in the third quarter.  Total delinquent loans (including nonperforming delinquent loans) were $4.5 million at September 30, 2019, a decrease of $1.8 million from December 31, 2018.  The allowance for loan losses as a percentage of total loans was 1.10% and 1.11% at September 30, 2019 and at December 31, 2018, respectively, while the allowance for loan losses as a percentage of non-performing loans increased to 164.95% at September 30, 2019 from 136.83% at December 31, 2018.  The ratio of non-performing loans to total loans was 0.67% at September 30, 2019 compared to 0.81% at December 31, 2018.

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:		9/30/2019				6/30/2019				3/31/2019				12/31/2018				9/30/2018
Non-accrual loans		$	3,432			$	3,681			$	3,839			$	4,131			$	2,746
Loans 90 days or more past due and still accruing		—				355								2				101
Total non-performing loans		$	3,432			$	4,036			$	3,839			$	4,133			$	2,847
Non-performing assets / total assets		0.58		%		0.69		%		0.68		%		0.71		%		0.48		%
Non-performing loans / total loans		0.67		%		0.81		%		0.78		%		0.81		%		0.57		%
Net charge-offs (recoveries)		$	—			(4		)		(3		)			—				—
Net charge-offs (recoveries) / average loans (annualized)		—		%		—		%		—		%		—		%		—		%
Allowance for loan loss / total loans		1.10		%		1.13		%		1.14		%		1.11		%		1.13		%
Allowance for loan losses / non-performing loans		164.95		%		140.26		%		147.38		%		136.83		%		198.67		%
Total assets		$	591,253			$	581,484			$	568,093			$	584,500			$	590,394
Gross loans, excluding ALLL		$	512,931			$	499,853			$	495,103			$	507,954			$	500,504
Average loans		$	502,632			$	498,799			$	502,149			$	499,368			$	499,082
Allowance for loan losses		$	5,661			$	5,661			$	5,658			$	5,655			$	5,656

Deposits

Total deposits increased to $476.1 million from $420.6 million compared to year-end 2018.  Certificates of deposit and interest bearing deposits increased $41.0 million and $17.5 million, respectively.  Certificates of deposit increased to $161.8 million as compared to $120.9 million at December 31, 2018, while interest bearing deposits increased to $151.7 million as compared to $134.1 million at December 31, 2018.  In addition, money market deposits increased $1.6 million to $17.8 million as compared to $16.2 million at December 31, 2018.  Offsetting the increases was a decrease in savings deposits of $5.0 million.  Savings deposits decreased to $97.8 million compared to $102.7 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:		9/30/2019			6/30/2019			3/31/2019			12/31/2018			9/30/2018
Demand:
Non-interest bearing		$	47,026		$	49,799		$	49,429		$	46,690		$	45,501
Interest-bearing		151,662			101,678			123,420			134,123			150,248
Savings		97,787			97,898			103,109			102,740			102,434
Money market		17,770			18,780			17,182			16,171			12,822
Time		161,819			148,452			139,614			120,855			126,592
Total deposits		$	476,064		$	416,607		$	432,754		$	420,579		$	437,597

Capital

At September 30, 2019, the Company's total stockholders' equity amounted to $64.2 million, or 10.86% of total assets, compared to $66.6 million at December 31, 2018.  The Company’s book value per common share was $12.35 at September 30, 2019, compared to $12.46 at December 31, 2018. The decrease in stockholders' equity was primarily due to the repurchase of 183,100  shares for a total of $3.0 million and the declaration of a $2.6 million dividend, with the remaining difference related to ESOP, restricted stock and stock option accounting activity, partially offset by net income of $2.9 million from the period.

At September 30, 2019, the Bank’s common equity tier 1 ratio was 11.47%, tier 1 leverage ratio was 10.47%, tier 1 capital ratio was 11.47% and the total capital ratio was 12.56%.  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 September 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:		9/30/2019				6/30/2019				3/31/2019				12/31/2018				9/30/2018
Loans		$	502,632			$	498,799			$	502,149			$	499,368			$	499,082
Securities held to maturity		39,181				36,796				37,899				41,460				43,871
Allowance for loan losses		(5,661		)		(5,659		)		(5,656		)		(5,686		)		(5,624		)
All other assets		43,039				42,671				42,778				41,211				37,466
Total assets		$	579,191			$	572,607			$	577,170			$	576,353			$	574,795
Non-interest bearing deposits		$	46,373			$	49,861			$	46,962			$	48,172			$	43,495
Interest-bearing deposits		381,262				368,679				367,434				372,474				386,364
Borrowings		81,863				83,814				92,780				83,440				73,077
Other liabilities		3,921				3,087				2,623				2,585				2,320
Stockholders' Equity		65,772				67,166				67,371				69,682				69,539
Total liabilities and shareholders' equity		$	579,191			$	572,607			$	577,170			$	576,353			$	574,795

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:

	Nine months ended September 30,
	2019				2018
(dollars in thousands)
Net income	$	2,852			$	3,580
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	$	3,447			$	3,580

	Nine Months Ended September 30,
(In Thousands, Except Per Share Data)	2019				2018
Numerator:
Net income	$	3,447			$	3,580
Denominator:
Weighted average common shares	5,124				5,377
Dilutive potential common shares	31				72
Weighted average fully diluted shares	5,155				5,449
Earnings per share:
Dilutive	$	0.67			$	0.66

CEO Outlook

"The Company continues to consider additional ways to offset recent interest rate cuts by the Federal Reserve Board that are impacting our interest rate sensitive assets in a segment of our loan portfolio," stated Michael Shriner, President and Chief Executive Officer.  Mr. Shriner added, "through the use of untapped funding sources like short-term brokered deposits and other funding products, the Company has been able to reduce funding rates."

Mr. Shriner further stated “the Company has also begun reducing interest rates on some of the deposit products that were instrumental in helping us grow over the past several years.  When taking all of these measures into account, we believe that our cost of funds appears to have peaked during the third quarter and we should begin seeing a decrease in our funding costs as we approach year end."

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.

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

MSB Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
	At September 30,   2019			At December 31,   2018
(Dollars in thousands, except per share amounts)
Cash and due from banks	$	1,087		$	1,558
Interest-earning demand deposits with banks	14,638			10,242
Cash and Cash Equivalents	15,725			11,800
Securities held to maturity (fair value of $37,846 and $38,569, respectively)	38,073			39,476
Loans receivable, net of allowance for loan losses of $5,661 and $5,655, respectively	507,270			502,299
Premises and equipment	8,136			8,180
Federal Home Loan Bank of New York stock, at cost	2,654			4,756
Bank owned life insurance	14,872			14,585
Accrued interest receivable	1,687			1,615
Other assets	2,836			1,789
Total Assets	$	591,253		$	584,500
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing	$	47,026		$	46,690
Interest bearing	429,038			373,889
Total Deposits	476,064			420,579
Advances from Federal Home Loan Bank of New York	47,275			94,275
Advance payments by borrowers for taxes and insurance	741			749
Other liabilities	2,953			2,251
Total Liabilities	527,033			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; 5,201,016 and 5,389,054 issued and outstanding at September 30, 2019 and December 31, 2018, respectively	52			54
Paid-in capital	41,980			44,726
Retained earnings	23,738			23,498
Unearned common stock held by ESOP (171,292 and 179,464 shares, respectively)	(1,550		)	(1,632		)
Total Stockholders' Equity	64,220			66,646
Total Liabilities and Stockholders' Equity	$	591,253		$	584,500

MSB Financial Corp. and Subsidiaries
Consolidated Statements of Income
		Three months ended September 30,						Nine months ended September 30,
		2019			2018			2019			2018
(in thousands except per share amounts)
Interest Income
Loans receivable, including fees		$	5,784		$	5,788		$	17,253		$	16,360
Securities held to maturity		273			304			824			763
Other		122			83			376			219
Total Interest Income		6,179			6,175			18,453			17,342
Interest Expense
Deposits		1,360			1,014			3,751			2,795
Borrowings		478			406			1,528			1,059
Total Interest Expense		1,838			1,420			5,279			3,854
Net Interest Income		4,341			4,755			13,174			13,488
Provision for Loan Losses		—			60			—			240
Net Interest Income after Provision for Loan Losses		4,341			4,695			13,174			13,248
Non-Interest Income
Fees and service charges		81			78			246			252
Income from bank owned life insurance		97			97			287			292
Other		21			15			60			58
Total Non-Interest Income		199			190			593			602
Non-Interest Expenses
Salaries and employee benefits		1,581			1,625			4,988			5,107
Directors compensation		132			121			391			365
Occupancy and equipment		388			390			1,148			1,172
Service bureau fees		171			107			365			251
Advertising		6			18			19			31
FDIC assessment		—			71			89			194
Professional services		422			528			2,069			1,217
Other		219			204			623			613
Total Non-Interest Expenses		2,919			3,064			9,692			8,950
Income before Income Taxes		1,621			1,821			4,075			4,900
Income Tax Expense		505			506			1,223			1,320
Net Income		$	1,116		$	1,315		$	2,852		$	3,580
Earnings per share:
Basic		$	0.22		$	0.25		$	0.56		$	0.67
Diluted		$	0.22		$	0.24		$	0.55		$	0.66

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)	9/30/2019				6/30/2019				9/30/2018
(unaudited)
Statements of Operations Data
Interest income	$	6,179			$	6,167			$	6,175
Interest expense	1,838					1,756				1,420
Net interest income	4,341					4,411				4,755
Provision for loan losses	—					—				60
Net interest income after provision for loan losses	4,341					4,411				4,695
Other income	199					204				190
Other expense	2,919					2,906				3,064
Income before income taxes	1,621					1,709				1,821
Income tax expense (benefit)	505					487				506
Net Income	$	1,116			$	1,222			$	1,315
Earnings (per Common Share)
Basic	$	0.22			$	0.24			$	0.25
Diluted	$	0.22			$	0.24			$	0.24
Statements of Condition Data (Period-End)
Investment securities held to maturity (fair value of $37,846, $39,201, and $41,765)	$	38,073			$	39,455			$	43,009
Loans receivable, net of allowance for loan losses	507,270					494,192				494,848
Total assets	591,253					581,484				590,394
Deposits	476,064					416,607				437,597
Borrowings	47,275					95,075				80,075
Stockholders' equity	64,220					66,379				70,008
Common Shares Dividend Data
Cash dividends	$	2,612			$	—			$	—
Weighted Average Common Shares Outstanding
Basic	5,046,935					5,126,968				5,330,029
Diluted	5,070,353					5,155,288				5,388,577
Operating Ratios
Return on average assets	0.77		%			0.85	%			0.92	%
Return on average equity	6.79		%			7.28	%			7.56	%
Average equity / average assets	11.36		%			11.73	%			12.10	%
Book value per common share (period-end)	$	12.35			$	12.64			$	12.70