MSB Financial Corp. Announces Quarterly Results

MSB Financial Corp. Announces Quarterly Results

MILLINGTON, N.J., Nov. 12, 2013 (GLOBE NEWSWIRE) -- MSB Financial Corp.
(Nasdaq:MSBF) (the "Company"), the holding company for Millington Savings Bank
(the "Bank"), reported net income of $248,000 for the three months ended
September 30, 2013. This compares to a net loss of $92,000 for the quarter
ended September 30, 2012. The increase was primarily due to a decrease in the
provision for loan losses, offset by a corresponding increase in the income
tax provision for the three months ended September 30, 2013 compared to the
three months ended September 30, 2012.

Net interest income was $2.3 million for the quarter ended September 30, 2013
compared to $2.4 million for the quarter ended September 30, 2012. Total
interest income decreased by $177,000 or 5.6% for the three months ended
September 30, 2013 compared to the three months ended September 30, 2012 due
to a 37 point decrease in the average rate on earning assets from 4.10% to
3.73%, offset by a $11.8 million increase in average balances thereon.
Correspondingly, total interest expense decreased by $95,000 or 13.1% for the
three months ended September 30, 2013 compared to the three months ended
September 30, 2012, due to a 14 basis point reduction in the average cost of
interest bearing liabilities from 1.02% to 0.88%, offset by a $2.8 million
increase in average interest bearing balances. The interest rate spread for
the September 30, 2013 quarter was 2.85%, compared to 3.08% for the quarter
ended September 30, 2012.

The provision for loan losses was $150,000 during the quarter ended September
30, 2013, a decrease of $596,000 or 79.9% compared to the $746,000 provided
during the quarter ended September 30, 2012. The Company's management reviews
the level of the allowance for loan losses on a quarterly basis based on a
variety of factors including, but not limited to, (1) the risk characteristics
of the loan portfolio, (2) current economic conditions, (3) actual losses
previously experienced, (4) the Company's level of loan growth and (5) the
existing level of reserves for loan losses that are probable and estimable.
The Company had $10.1 million in nonperforming loans as of September 30, 2013
compared to $16.2 million as of September 30, 2012. The significant reduction
in nonperforming loan balances from the September 30, 2012 level was achieved
primarily through active implementation of the Company's asset disposition
strategy that was approved by the Company's Board of Directors in December of
2012. This strategy, which to date included activities such as short sales,
cash for keys and deeds in lieu of foreclosure, was implemented in order to
rapidly reduce the dollar amount of non-performing assets held by the Company.
The Company's management team is actively engaged with borrowers and buyers to
expedite this asset disposition strategy and will continue doing so until
desired amount of non-performing assets has been removed from the Company's
balance sheet. The allowance for loan losses to total loans ratio was 1.70% at
September 30, 2013 compared to 1.17% at September 30, 2012, while the
allowance for loan losses to non-performing loans ratio was 39.3% at September
30, 2013 compared to 17.7% at September 30, 2012. Non-performing loans to
total loans and net charge-offs to average loans outstanding ratios were at
4.34% and 0.19%, respectively, at September 30, 2013 compared to 6.61% and
0.39% at September 30, 2012.

Noninterest income was $181,000 for the quarter ended September 30, 2013
compared to $159,000 for the quarter ended September 30, 2012. The increase
for the quarter ended September 30, 2013 compared to the quarter ended
September 30, 2012 resulted from an increase of $15,000 in fees and service
charges, a $4,000 increase in other non-interest income and a $4,000 increase
in bank owned life insurance, offset by a $1,000 decrease in unrealized gains
on trading securities.

Noninterest expense was $2.0 million for the quarters ended September 30, 2012
and 2013. FDIC assessment, professional services, salaries and employee
benefits and service bureau fees expenses increased by $45,000, $34,000,
$27,000 and $21,000, respectively, for the three months ended September 30,
2013 compared to the three months ended September 30, 2012. Correspondingly,
other non-interest expense, occupancy and equipment expense, directors'
compensation expense and advertising expense decreased by $101,000, $25,000,
$15,000 and $3,000, respectively. The decrease in other noninterest expense
was primarily attributable to the reduction in other real estate expense,
while the increase in FDIC assessment was attributed to the change in factors
used in calculating the assessment.

Total assets were $346.8 million at September 30, 2013, compared to $352.6
million at June 30, 2013, a decrease of $5.8 million or 1.65%. The Company
increased its investment in securities held to maturity and loans receivable,
net balances by $7.9 million and $2.3 million, respectively for the quarter
ended September 30, 2013 compared to the quarter ended June 30, 2013. These
increases were primarily funded by the decreases in cash and cash equivalents
of $16.0 million or 64.8%. Deposits were $274.0 million at September 30, 2013,
compared to $280.5 million at June 30, 2013, and FHLB advances remained the
same for both periods. Stockholders' equity was $39.8 million at September 30,
2013 compared to $39.5 at June 30, 2013, an increase of $323,000 or 0.82%. The
increase in retained earnings of $248,000, as well as the decrease in
unallocated common stock held by ESOP and an increase in paid-in capital of
$42,000 and $34,000, respectively, accounted for the major changes in the
Company's shareholder's equity balance for the quarter ended September 30,
2013 compared to the quarter ended June 30, 2013.

At September 30, 2013 and June 30, 2013 the Company had 5,010,437 shares
outstanding. Shares of the Company's common stock trade on the NASDAQ Global
Market under the symbol "MSBF." The Company is majority owned by its mutual
holding company parent, MSB Financial, MHC.

Forward Looking Statements

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.

                                                               
MSB FINANCIAL CORP
(Dollars in Thousands, except for per share amount)
                                                               
SELECTED FINANCIAL AND OTHER DATA
                                                               
Statement of Financial Condition Data:                          
                                                (Unaudited)
                                                At September 30 At June 30,
                                                2013            2013
                                                               
Total assets                                     $346,768        $352,592
                                                               
Cash and cash equivalents                        8,713           24,755
                                                               
Loans receivable, net                            225,581         223,256
                                                               
Securities held to maturity                      88,845          80,912
                                                               
Deposits                                         273,990         280,467
                                                               
Federal Home Loan Bank advances                  30,000          30,000
                                                               
Total stockholders' equity                       39,836          39,513
                                                               
                                                               
                                                               
                                                               
Summary of Operations:                                          
                                                (Unaudited)
                                                For the Three Months Ended
                                                September 30,   September 30,
                                                2013            2012
                                                               
Total interest income                            $2,965          $3,142
                                                               
Total interest expense                           632             727
                                                               
Net interest income                              2,333           2,415
                                                               
Provision for loan losses                        150             746
                                                               
Net interest income after provision                             
for loan losses                                 2,183           1,669
                                                               
Noninterest income                               181             159
                                                               
Noninterest expense                              1,987           2,004
                                                               
Income before taxes                              377             (176)
                                                               
Income tax provision                             129             (84)
                                                               
Net income                                       $248            ($92)
                                                               
                                                               
Net income per common share:                                    
                                                               
basic and diluted                                $0.05           ($0.02)
                                                               
Weighted average number of shares of common      4,919,805       4,960,423
stock
outstanding                                                     
                                                               
Performance Ratios:                                             
                                                (Unaudited)
                                                For the Three Months Ended
                                                September 30,   September 30,
                                                2013            2012
                                                               
Return on average assets (ratio of net (loss) income             
to average total assets)                         0.29%           0.11%
                                                               
Return on average equity (ratio of net (loss) income             
to average total stockholder's equity)           2.50            (0.90)
                                                               
Net interest rate spread                         2.85            3.08
                                                               
Net interest margin on average interest-earning                  
assets                                           2.93            3.15
                                                               
Average interest-earning assets to average                      
interest-bearing liabilities                     110.85          107.82
                                                               
Operating expense ratio (noninterest expenses                    
to average total assets)                         2.29            2.32
                                                               
Efficiency ratio (noninterest expense divided by                 
sum of net interest income and noninterest       79.04           77.86
income)
                                                               
                                                               
                                                               
                                                (Unaudited)
                                                For the Three Months Ended
                                                September 30,   September 30,
                                                2013            2012
Asset Quality Ratios:                                           
                                                               
Non-performing loans to total loans              4.34%           6.61%
                                                               
Non-performing assets to total assets            3.00            4.82
                                                               
Net charge-offs to average loans outstanding     0.19            0.39
                                                               
Allowance for loan losses to non-performing      39.27           17.65
loans
                                                               
Allowance for loan losses to total loans         1.70            1.17
                                                               
                                                               
Capital Ratios:                                                 
                                                               
Equity to total assets at end of period          11.49%          11.75%
                                                               
Average equity to average assets                 11.43           11.87
                                                               
                                                               
Number of offices                                5               5
                                                               

CONTACT: MSB Financial Corp.
         Michael Shriner, President and CEO
         908-647-4000
         mshriner@millingtonsb.com