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 twelve months ended December 31, 2019.

The Company reported net income of $1.3 million, or $0.25 per diluted common share, for the three months ended December 31, 2019, compared to net income of $1.3 million, or $0.24 per diluted common share, for the three months ended December 31, 2018.  Net income for the twelve months ended December 31, 2019 was $4.1 million, or $0.80 per diluted common share, compared to net income of $4.8 million, or $0.90  per diluted common share, for the twelve months ended December 31, 2018.  The twelve months ended December 31, 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 twelve months ended December 31, 2019 would have been $4.7 million or $0.92 per diluted share.

Highlights for the quarter:

• Return on average assets was 0.86% for the three months ended December 31, 2019 compared to 0.87% for the three months ended December 31, 2018 and return on average equity was 7.71% for the three months ended December 31, 2019 compared to 7.20% for the three months ended December 31, 2018.
• Net interest margin decreased six basis points to 3.16% for the quarter ended December 31, 2019 from 3.22% for the quarter ended December 31, 2018.  Contributing to the decrease in net interest margin was higher interest expense on deposits.
• The efficiency ratio, which is calculated by dividing non-interest expense by the sum of net interest income and non-interest income, was 64.50% for the quarter ended December 31, 2019 as compared to 62.51% for the quarter ended December 31, 2018.
• Non-performing assets represented 0.52% of total assets at December 31, 2019 compared with 0.71% at December 31, 2018. The allowance for loan losses as a percentage of total non-performing loans was 184.11% at December 31, 2019 compared to 136.83% at December 31, 2018.
• The Company’s balance sheet at December 31, 2019 reflected an increase in total assets of $8.6 million compared to December 31, 2018, due to increases in interest earning demand deposits with banks and net loans receivable.
• The effective tax rate decreased to 26.2% for the quarter ended December 31, 2019 compared to 28.1% for the quarter ended December 31, 2018.  The decrease in tax rate was due to the BOLI death benefit received during the fourth quarter.

Selected Financial Ratios
(unaudited; annualized where applicable)
As of or for the quarter ended:		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Return on average assets		0.86		%		0.77		%		0.85		%		0.36		%		0.87		%
Return on average equity		7.71		%		6.79		%		7.28		%		3.05		%		7.20		%
Net interest margin		3.16		%		3.12		%		3.21		%		3.19		%		3.22		%
Net loans / deposit ratio		107.46		%		106.56		%		118.62		%		113.10		%		119.43		%
Shareholders' equity / total assets		11.02		%		10.86		%		11.42		%		11.77		%		11.40		%
Efficiency ratio		64.50		%		64.30		%		62.97		%		83.83		%		62.51		%
Book value per common share		$	12.61			$	12.35			$	12.64			$	12.46			$	12.37

Net Interest Income

Total interest income for the three months ended December 31, 2019 increased $98,000 to $6.1 million, compared to $6.0 million for the same three month period in 2018.  Interest income increased in the quarter ended December 31, 2019 compared to the comparable period in 2018, as a result of a mixture of higher loan volume and interest rate increases year over year. Total interest expense increased by $167,000, or 10.8%, to $1.7 million, for the three months ended December 31, 2019 compared to $1.5 million for the same period in 2018 due to increases in interest rates and deposit volume partially offset by a lower volume of borrowings during the 2019 period.

Net interest income for the three months ended December 31, 2019 decreased $69,000, or 1.55% to $4.4 million, compared to $4.5 million for the same three month period in 2018.  The change for the three months ended December 31, 2019 was primarily the result of higher interest expense on deposits.  The annualized net interest spread was 2.92% and 2.98% for the three months ended December 31, 2019 and 2018, respectively. For the quarter ended December 31, 2019, the Company's annualized net interest margin decreased to 3.16% compared to 3.22% for the corresponding three-month period in 2018.

Total interest income for the twelve months ended December 31, 2019, increased $1.3 million, or 5.18%, to $24.6 million compared to $23.3 million for the twelve months ended December 31, 2018, as average earning assets increased $7.8 million year over year.  In addition, the average interest earned on such assets increased 16 basis points.  Total interest expense increased by $1.6 million, or 29.49%, to $7.0 million for the year ended December 31, 2019, compared to the 2018 year ended, as average interest bearing liabilities increased $5.7 million year over year and the average cost of such liabilities increased 33 basis points.

Net interest income decreased $382,000, or 2.1%, to $17.6 million for the twelve months ended December 31, 2019, compared to $17.9 million for the twelve months ended December 31, 2018.  Net interest spread and net interest margin for the twelve months ended December 31, 2019, decreased 17 and 11 basis points, respectively, to 2.91% and 3.17%, compared to 3.08% and 3.28% for the twelve months ended December 31, 2018.  Net interest income and net interest margin decreased as the Company's deposit pricing became more competitive year over year.

Provision for Loan Losses

The loan loss provision for the three months ended December 31, 2019 and 2018 was zero.  The loan loss provision for the twelve months ended December 31, 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 December 31, 2019 was $381,000, as compared to $198,000 for the same period in 2018. Non-interest income increased primarily due to a $171,000 death benefit recorded during the quarter.  Non-interest expense, which consists of salaries and employee benefits, occupancy expense, professional services and other non-interest expenses totaled $3.1 million for the quarter ended December 31, 2019 compared to $2.9 million the same period in 2018.

Non-interest income for the twelve months ended December 31, 2019 was $974,000, as compared to $800,000 for the same period in 2018. Non-interest income increased primarily due to a $171,000 BOLI death benefit recorded during the fourth quarter.  Non-interest expense totaled $12.8 million for the twelve months ended December 31, 2019, as compared to $11.9 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 December 31, 2019, the Company recorded a $443,000 tax provision compared to $491,000 for the three months ended December 31, 2018. The effective tax rate decreased to 26.2% for the quarter ended December 31, 2019, compared to 28.1% for the quarter ended December 31, 2018. The decrease in tax rate was due to the BOLI death benefit received  during the quarter.

For the twelve months ended December 31, 2019, the Company recorded a $1.7 million tax provision compared to a provision of $1.8 million for the twelve months ended December 31, 2018. The effective tax rate increased to 28.9% for the twelve months ended December 31, 2019, compared to 27.2% for the twelve months ended December 31, 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:		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Net interest income		$	4,390			$	4,341			$	4,411			$	4,423			$	4,459
Provision for loan losses		—				—				—				—				—
Net interest income after provision for loan losses		4,390				4,341				4,411				4,423				4,459
Other income		381				199				204				190				198
Other expense		3,077				2,919				2,906				3,867				2,911
Income before income taxes		1,694				1,621				1,709				746				1,746
Income taxes (benefit)		443				505				487				232				491
Net income		$	1,251			$	1,116			$	1,222			$	514			$	1,255
Earnings per common share:
Basic		$	0.25			$	0.22			$	0.24			$	0.10			$	0.24
Diluted		$	0.25			$	0.22			$	0.24			$	0.10			$	0.24
Weighted average common shares outstanding:
Basic		5,015,438				5,046,935				5,126,938				5,198,432				5,276,116
Diluted		5,040,652				5,070,353				5,155,258				5,237,329				5,317,305

Statement of Condition Highlights at December 31, 2019

• Total assets amounted to $593.1 million at December 31, 2019, an increase of $8.6 million, or 1.47%, compared to December 31, 2018.
• The Company’s total loans receivable, excluding the ALLL, were $513.7 million at December 31, 2019, an increase of $5.8 million, or 1.1%, from December 31, 2018.
• Securities held to maturity were $35.8 million at December 31, 2019, a decrease of $3.6 million, or 9.2% compared to December 31, 2018.
• Deposits increased $52.2 million, or 12.41%, to $472.8 million at December 31, 2019 compared to $420.6 million at December 31, 2018.
• Borrowings totaled $51.6 million at December 31, 2019, a decrease of $42.7 million, or 45.29%, 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:		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Cash and due from banks		$	1,296			$	1,087			$	1,200			$	1,040			$	1,558
Interest-earning demand deposits with banks		17,157				14,638				14,473				9,771				10,242
Securities held to maturity		35,827				38,073				39,455				36,982				39,476
Loans receivable, net of allowance		508,022				507,270				494,192				489,445				502,299
Premises and equipment		8,020				8,136				8,006				8,088				8,180
Federal Home Loan Bank of New York stock, at cost		2,848				2,654				4,805				3,406				4,756
Bank owned life insurance		14,480				14,872				14,775				14,679				14,585
Accrued interest receivable		1,650				1,687				1,715				1,772				1,615
Other assets		3,786				2,836				2,863				2,910				1,789
Total assets		$	593,086			$	591,253			$	581,484			$	568,093			$	584,500
Deposits		$	472,752			$	476,064			$	416,607			$	432,754			$	420,579
Borrowings		51,575				47,275				95,075				64,275				94,275
Other liabilities		3,384				3,694				3,423				4,172				3,000
Stockholders' equity		65,375				64,220				66,379				66,892				66,646
Total liabilities and stockholders' equity		$	593,086			$	591,253			$	581,484			$	568,093			$	584,500

Loans

At December 31, 2019, the Company’s net loan portfolio totaled $508.0 million, an increase of $5.7 million, or 1.1%, compared to $502.3 million at December 31, 2018.  The allowance for loan losses amounted to $5.7 million at December 31, 2019 and December 31, 2018.

At December 31, 2019, the loan portfolio primarily consisted of commercial real estate loans (42.9%) and residential mortgages (29.0%). Commercial and industrial loans represented 19.1% of the portfolio, while construction loans accounted for 9.0% of the portfolio. Total gross loans receivable increased $11.3 million to $530.4 million at December 31, 2019, compared to $519.1 million at December 31, 2018. The increase primarily reflects an increase in commercial loans of $25.3 million partially offset by a decrease of $13.9 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:		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Residential mortgage:
One-to-four family		$	130,966			$	135,657			$	139,119			$	140,043			$	143,391
Home equity		22,853				23,385				23,596				25,160				24,365
Total residential mortgage		153,819				159,042				162,715				165,203				167,756
Commercial and multi-family real estate		227,441				216,095				207,866				206,653				212,606
Construction		47,635				45,404				42,356				37,319				29,628
Commercial and industrial - Secured		63,462				59,248				50,802				49,640				60,426
Commercial and industrial - Unsecured		37,600				51,832				56,672				53,791				48,176
Total commercial loans		376,138				372,579				357,696				347,403				350,836
Consumer loans		432				411				425				470				540
Total loans receivable		530,389				532,032				520,836				513,076				519,132
Less:
Loans in process		16,109				18,598				20,447				17,443				10,677
Deferred loan fees		536				503				536				530				501
Allowance		5,722				5,661				5,661				5,658				5,655
Total loans receivable, net		$	508,022			$	507,270			$	494,192			$	489,445			$	502,299

Asset Quality

At December 31, 2019 and December 31, 2018, non-performing loans totaled $3.1 million and $4.1 million, or 0.52% and 0.71% of total assets, respectively.  Nonperforming loans decreased significantly since year end 2018, as four relationships were resolved, while one new relationship was added during the year.  Total delinquent loans (including nonperforming delinquent loans) were $3.9 million at December 31, 2019, a decrease of $2.4 million from December 31, 2018.  The allowance for loan losses as a percentage of total loans was 1.11% at December 31, 2019 and at December 31, 2018, respectively, while the allowance for loan losses as a percentage of non-performing loans increased to 184.11% at December 31, 2019 from 136.83% at December 31, 2018.  The ratio of non-performing loans to total loans was 0.60% at December 31, 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:		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Non-accrual loans		$	3,108			$	3,432			$	3,681			$	3,839			$	4,131
Loans 90 days or more past due and still accruing		—				—				355								2
Total non-performing loans		$	3,108			$	3,432			$	4,036			$	3,839			$	4,133
Non-performing assets / total assets		0.52		%		0.58		%		0.69		%		0.68		%		0.71		%
Non-performing loans / total loans		0.60		%		0.67		%		0.81		%		0.78		%		0.81		%
Net charge-offs (recoveries)		$	(61	)		—				(4		)		(3		)		—
Net charge-offs (recoveries) / average loans (annualized)		(0.05		)%		—		%		—		%		—		%		—		%
Allowance for loan loss / total loans		1.11		%		1.10		%		1.13		%		1.14		%		1.11		%
Allowance for loan losses / non-performing loans		184.11		%		164.95		%		140.26		%		147.38		%		136.83		%
Total assets		$	593,086			$	591,253			$	581,484			$	568,093			$	584,500
Gross loans, excluding ALLL		$	513,744			$	512,931			$	499,853			$	495,103			$	507,954
Average loans		$	505,126			$	502,632			$	498,799			$	502,149			$	499,368
Allowance for loan losses		$	5,722			$	5,661			$	5,661			$	5,658			$	5,655

Deposits

Total deposits increased to $472.8 million at December 31, 2019, from $420.6 million compared to December 31, 2018.  Certificates of deposit and interest bearing deposits increased $35.3 million and $7.8 million, respectively.  Certificates of deposit increased to $156.2 million as compared to $120.9 million at December 31, 2018, while interest bearing deposits increased to $141.9 million as compared to $134.1 million at December 31, 2018.  In addition, money market deposits increased $11.5 million to $27.7 million as compared to $16.2 million at December 31, 2018.  Offsetting the increases was a decrease in savings deposits of $3.7 million.  Savings deposits decreased to $99.0 million at December 31, 2019, 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:		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Demand:
Non-interest bearing		$	47,935			$	47,026			$	49,799			$	49,429			$	46,690
Interest-bearing		141,935				151,662				101,678				123,420				134,123
Savings		99,036				97,787				97,898				103,109				102,740
Money market		27,692				17,770				18,780				17,182				16,171
Time		156,154				161,819				148,452				139,614				120,855
Total deposits		$	472,752			$	476,064			$	416,607			$	432,754			$	420,579

Capital

At December 31, 2019, the Company's total stockholders' equity amounted to $65.4 million, or 11.02% of total assets, compared to $66.6 million at December 31, 2018.  The Company’s book value per common share was $12.61 at December 31, 2019, compared to $12.37 at December 31, 2018.  The decrease in stockholders' equity was primarily due to the repurchase of 199,202  shares for a total of $3.3 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 $4.1 million from the period.

At December 31, 2019, the Bank’s common equity tier 1 ratio was 11.43%, tier 1 leverage ratio was 10.70%, tier 1 capital ratio was 11.43% and the total capital ratio was 12.51%.  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, 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:		12/31/2019				9/30/2019				6/30/2019				3/31/2019				12/31/2018
Loans		$	505,126			$	502,632			$	498,799			$	502,149			$	499,368
Securities held to maturity		37,262				39,181				36,796				37,899				41,460
Allowance for loan losses		(5,704		)		(5,661		)		(5,659		)		(5,656		)		(5,686		)
All other assets		42,454				43,039				42,671				42,778				41,211
Total assets		$	579,138			$	579,191			$	572,607			$	577,170			$	576,353
Non-interest bearing deposits		$	45,737			$	46,373			$	49,861			$	46,962			$	48,172
Interest-bearing deposits		429,413				381,262				368,679				367,434				372,474
Borrowings		35,969				81,863				83,814				92,780				83,440
Other liabilities		3,132				3,921				3,087				2,623				2,585
Stockholders' Equity		64,887				65,772				67,166				67,371				69,682
Total liabilities and shareholders' equity		$	579,138			$	579,191			$	572,607			$	577,170			$	576,353

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:

	Twelve months endedDecember 31,
	2019				2018
(dollars in thousands)
Net income	$	4,103			$	4,835
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	$	4,698			$	4,835

	Twelve Months Ended December 31,
(In Thousands, Except Per Share Data)	2019				2018
Numerator:
Net income	$	4,698			$	4,835
Denominator:
Weighted average common shares	5,096				5,351
Dilutive potential common shares	31				49
Weighted average fully diluted shares	5,127				5,400
Earnings per share:
Dilutive	$	0.92			$	0.90

Forward Looking Statement Disclaimer

This release may contain forward-looking statements. Such forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from those currently anticipated due to a number of factor. . Factors that may cause actual results to differ from those contemplated include our ability to reduce interest rates on deposits; our ability to reduce our funding costs; our ability to continue to use funding sources like short-term brokered deposits; our ability to reduce our nonperforming loans; 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; our continued ability to successfully remediate our identified internal control weaknesses; and our ability to control expenses. Therefore, readers should not place undue reliance on any forward-looking statements. MSB Financial Corp. does not undertake, and specifically disclaims, any obligations to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such circumstance.

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

MSB Financial Corp. and Subsidiaries
Consolidated Statements of Financial Condition
	At December 31,   2019			At December 31,   2018
(Dollars in thousands, except per share amounts)
Cash and due from banks	$	1,296		$	1,558
Interest-earning demand deposits with banks	17,157			10,242
Cash and Cash Equivalents	18,453			11,800
Securities held to maturity (fair value of $35,696 and $38,569, respectively)	35,827			39,476
Loans receivable, net of allowance for loan losses of $5,722 and $5,655, respectively	508,022			502,299
Premises and equipment	8,020			8,180
Federal Home Loan Bank of New York stock, at cost	2,848			4,756
Bank owned life insurance	14,480			14,585
Accrued interest receivable	1,650			1,615
Other assets	3,786			1,789
Total Assets	$	593,086		$	584,500
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Non-interest bearing	$	47,935		$	46,690
Interest bearing	424,817			373,889
Total Deposits	472,752			420,579
Advances from Federal Home Loan Bank of New York	51,575			94,275
Advance payments by borrowers for taxes and insurance	722			749
Other liabilities	2,662			2,251
Total Liabilities	527,711			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; 5,184,914 and 5,389,054 issued and outstanding at December 31, 2019 and December 31, 2018, respectively	52			54
Paid-in capital	41,857			44,726
Retained earnings	24,989			23,498
Unearned common stock held by ESOP (168.568 and 179,464 shares, respectively)	(1,523		)	(1,632		)
Total Stockholders' Equity	65,375			66,646
Total Liabilities and Stockholders' Equity	$	593,086		$	584,500

MSB Financial Corp. and Subsidiaries
Consolidated Statements of Income
		Three months endedDecember 31,								Twelve months endedDecember 31,
		2019				2018				2019				2018
(in thousands except per share amounts)
Interest Income
Loans receivable, including fees		$	5,753			$	5,600			$	23,007			$	21,960
Securities held to maturity		240				302				1,064				1,065
Other		108				101				484				320
Total Interest Income		6,101				6,003				24,555				23,345
Interest Expense
Deposits		1,532				1,039				5,282				3,834
Borrowings		179				505				1,708				1,564
Total Interest Expense		1,711				1,544				6,990				5,398
Net Interest Income		4,390				4,459				17,565				17,947
Provision for Loan Losses		—				—				—				240
Net Interest Income after Provision for Loan Losses		4,390				4,459				17,565				17,707
Non-Interest Income
Fees and service charges		100				82				346				334
Income from bank owned life insurance		267				96				554				388
Other		14				20				74				78
Total Non-Interest Income		381				198				974				800
Non-Interest Expenses
Salaries and employee benefits		1,781				1,566				6,769				6,673
Directors compensation		133				125				524				490
Occupancy and equipment		386				392				1,534				1,564
Service bureau fees		209				96				575				347
Advertising		2				2				21				33
FDIC assessment		12				17				100				211
Professional services		346				513				2,415				1,730
Other		208				200				831				813
Total Non-Interest Expenses		3,077				2,911				12,769				11,861
Income before Income Taxes		1,694				1,746				5,770				6,646
Income Tax Expense		443				491				1,667				1,811
Net Income		$	1,251			$	1,255			$	4,103			$	4,835
Earnings per share:
Basic		$	0.25			$	0.24			$	0.81			$	0.90
Diluted		$	0.25			$	0.24			$	0.80			$	0.90

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)	12/31/2019				9/30/2019				12/31/2018
(unaudited)
Statements of Operations Data
Interest income	$	6,101			$	6,179			$	6,003
Interest expense	1,711				1,838				1,544
Net interest income	4,390				4,341				4,459
Provision for loan losses	—				—				—
Net interest income after provision for loan losses	4,390				4,341				4,459
Other income	381				199				198
Other expense	3,077				2,919				2,911
Income before income taxes	1,694				1,621				1,746
Income tax expense (benefit)	443				505				491
Net Income	$	1,251			$	1,116			$	1,255
Earnings (per Common Share)
Basic	$	0.25			$	0.22			$	0.24
Diluted	$	0.25			$	0.22			$	0.24
Statements of Condition Data (Period-End)
Investment securities held to maturity (fair value of $35,696, $37,846, and $38,569)	$	35,827			$	38,073			$	39,476
Loans receivable, net of allowance for loan losses	508,022				507,270				502,299
Total assets	593,086				591,253				584,500
Deposits	472,752				476,064				420,579
Borrowings	51,575				47,275				94,275
Stockholders' equity	65,375				64,220				66,646
Common Shares Dividend Data
Cash dividends	$	—			$	2,612			$	2,522
Weighted Average Common Shares Outstanding
Basic	5,015,438				5,046,935				5,276,116
Diluted	5,040,652				5,070,353				5,317,305
Operating Ratios
Return on average assets	0.86		%		0.77		%		0.87		%
Return on average equity	7.71		%		6.79		%		7.20		%
Average equity / average assets	11.20		%		11.36		%		12.09		%
Book value per common share (period-end)	$	12.61			$	12.35			$	12.37