Stockholders' Equity

12 Months Ended

Dec. 31, 2019

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders' Equity

Regulatory Capital

The Bank is subject to various regulatory capital requirements administered by Federal and State banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank's assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weighting, and other factors.

The Federal Reserve Board approved final rules on Basel III in July 2013 establishing a new comprehensive capital framework for U.S. banks. Basel III substantially revised the risk-based capital requirements applicable to bank holding companies and depository institutions. The minimum regulatory capital requirements became effective for the Company and the Bank on January 1, 2015 and include a minimum common equity Tier 1 capital ratio of 4.50% of risk-weighted assets and raised the Tier 1 capital ratio from 4.00% to 6.00% of risk-weighted assets. The rules also require a minimum Total capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 leverage capital ratio of 4.00% of average assets. The final rule also established a new capital conservation buffer, comprised of common equity Tier 1 capital, above the regulatory minimum capital requirements. The phase-in of the capital conservation buffer began on January 1, 2016 at 0.625% of risk-weighted assets and increases each subsequent year by an additional 0.625% until reaching its final level of 2.5% on January 1, 2019. For 2019 and 2018, the capital conservation buffer was 2.500% and 1.875%, respectively.

Pursuant to the Federal Reserve’s Small Bank Holding Company Policy Statement, a bank holding company such as the Company with consolidated assets under $3 billion is exempt from regulatory capital requirements provided that: (i) it is not engaged in significant non-banking or off-balance sheet activities; (ii) it does not have a material amount of debt or equity securities registered with the SEC; and (iii) its bank subsidiary is well capitalized. As a result, the minimum capital requirements are not applicable to MSB Financial Corp. as of December 31, 2019 and December 31, 2018.

As of December 31, 2019, the most recent notification from the regulators categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution's category.

The following table presents a reconciliation of GAAP capital and regulatory capital and information as to the Bank's capital levels at the dates presented:

	Actual				For capital adequacy purposes (1)			To be well capitalized under prompt corrective action provisions
	Amount		Ratio		Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
December 31, 2019:
Tier 1 leverage capital ratio
Millington Bank	$	61,991	10.70	%	$	23,164	≥4.00	$	28,955	≥5.00
MSB Financial Corp.	65,375		11.33		N/A		N/A	N/A		N/A
Common equity tier 1 capital ratio
Millington Bank	61,991		11.43		24,396		≥4.50	35,239		≥6.50
MSB Financial Corp.	65,375		12.06		N/A		N/A	N/A		N/A
Tier 1 capital ratio
Millington Bank	61,991		11.43		32,528		≥6.00	43,371		≥8.00
MSB Financial Corp.	65,375		12.06		N/A		N/A	N/A		N/A
Total capital ratio
Millington Bank	67,801		12.51		43,371		≥8.00	54,213		≥10.00
MSB Financial Corp.	71,185		13.13		N/A		N/A	N/A		N/A

(1) Amounts and ratios do not include the capital conservation buffer.

	Actual				For capital adequacy purposes (1)			To be well capitalized under prompt corrective action provisions
	Amount		Ratio		Amount		Ratio	Amount		Ratio
	(Dollars in thousands)
December 31, 2018:
Tier 1 leverage capital ratio
Millington Bank	$	61,740	10.71	%	$	23,052	≥4.00	$	28,816	≥5.00
MSB Financial Corp.	66,646		11.56		N/A		N/A	N/A		N/A
Common equity tier 1 capital ratio
Millington Bank	61,740		11.90		23,351		≥4.50	33,729		≥6.50
MSB Financial Corp.	66,646		12.84		N/A		N/A	N/A		N/A
Tier 1 capital ratio
Millington Bank	61,740		11.90		31,134		≥6.00	41,512		≥8.00
MSB Financial Corp.	66,646		12.84		N/A		N/A	N/A		N/A
Total capital ratio
Millington Bank	67,467		13.00		41,512		≥8.00	51,891		≥10.00
MSB Financial Corp.	72,373		13.95		N/A		N/A	N/A		N/A

(1) Amounts and ratios do not include the capital conservation buffer.

Common Stock Repurchase Plan

The Company announced that on June 2, 2016 it had received the non-objection of the Federal Reserve Bank of New York to purchase up to 112,600 shares of the Company's common stock in order to fund future awards of restricted stock that may be made under the Company's 2016 Equity Incentive Plan that was approved by stockholders at the Annual Meeting of Stockholders held on April 22, 2016. On August 4, 2016, the Company announced that it had approved a stock repurchase plan to purchase up to 595,342 shares of the Company's common stock. On December 17, 2018, the Company announced that it had approved a stock repurchase plan to repurchase up to 273,150 shares, approximately 5% of the outstanding shares of the Company's common stock.

During the year ended December 31, 2019, the Company repurchased 199,202 shares of Company's common stock with an average price of $16.40. During the year ended December 31, 2018, the Company repurchased 373,948 shares of Company's common stock with an average price of $17.95.