Breaking Down Mid-Southern Bancorp, Inc. (MSVB) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and looking for a comprehensive analysis of Mid-Southern Bancorp, Inc. (MSVB)? The company reported a net loss of $7.1 million, or $2.61 per diluted share, for the year ended December 31, 2024. But don't let that figure alone dictate your perspective! While the net loss might raise eyebrows, the company's net interest margin actually increased to 3.49% for the quarter ended December 31, 2024, and the Bank was considered well-capitalized with a Community Bank Leverage Ratio of 14.8%. Dive in to uncover key insights about MSVB's financial health and make informed decisions.

Mid-Southern Bancorp, Inc. (MSVB) Revenue Analysis

Mid-Southern Bancorp, Inc. (MSVB) generates revenue primarily through its community banking operations. These operations include:

• Interest income from loans, including commercial real estate, construction, commercial, and consumer loans.
• Service fees.

Understanding the nuances of these revenue streams offers critical insights into the financial health of Mid-Southern Bancorp, Inc. (MSVB). Further information about the company's mission and values can be found at: Mission Statement, Vision, & Core Values of Mid-Southern Bancorp, Inc. (MSVB).

For the fiscal year 2024, Mid-Southern Bancorp, Inc. (MSVB) reported a net income of $7.9 million, or $1.78 per diluted share. This compares to a net income of $9.4 million, or $2.11 per diluted share, for the fiscal year 2023.

Net interest income is a critical component of Mid-Southern Bancorp's revenue. For the year 2024, it totaled $27.9 million, a decrease of $2.9 million from the $30.8 million reported in 2023. The decrease was primarily due to an increase in interest expense, which outpaced the increase in interest income. Interest income increased by $3.4 million to $34.8 million for the year ended December 31, 2024, compared to $31.4 million for the year ended December 31, 2023. Meanwhile, interest expense increased by $6.3 million to $6.9 million for the year ended December 31, 2024, from $600,000 for the year ended December 31, 2023.

Here's a breakdown of the factors influencing these changes:

Key Factors Affecting Net Interest Income:

Increase in Interest Income:

• The increase in interest income was primarily due to an increase in the average yield on interest-earning assets.

Increase in Interest Expense:

• The increase in interest expense was primarily due to an increase in the rates paid on deposits.

Non-Interest Income:

Mid-Southern Bancorp, Inc. (MSVB) also generates revenue from sources other than interest, which is referred to as non-interest income. For the year 2024, non-interest income totaled $3.9 million, an increase of $358,000 compared to $3.5 million for the year 2023. The increase was primarily the result of:

• A $258,000 increase in gains on the sale of securities.
• A $144,000 increase in other operating income.

These increases were partially offset by a $44,000 decrease in service charges and fees.

Non-Interest Expense:

Non-interest expense includes various operational costs. For 2024, it totaled $21.7 million, an increase of $1.4 million compared to $20.3 million for 2023. Significant components of this change include:

• A $788,000 increase in salaries and employee benefits.
• A $339,000 increase in data processing.
• A $274,000 increase in other operating expenses.

These increases were primarily attributed to normal increases in compensation and benefit costs, as well as investments in technology and infrastructure.

A summary of the key financial figures is provided below:

Mid-Southern Bancorp, Inc. (MSVB) Profitability Metrics

A thorough analysis of Mid-Southern Bancorp, Inc. (MSVB)'s profitability involves examining several key metrics that provide insights into the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins, which are crucial for understanding how effectively MSVB generates profit from its revenue and manages its expenses.

To accurately assess MSVB’s profitability, it's essential to look at these metrics over time and compare them against industry averages. This comparative analysis helps in determining whether MSVB is performing at par with, above, or below its peers. By evaluating trends in these ratios, investors and analysts can gain a clearer picture of MSVB’s ability to sustain and grow its profitability.

Operational efficiency plays a significant role in MSVB’s profitability. Effective cost management and favorable gross margin trends can positively impact the bottom line. Let's delve into the specifics of these profitability metrics based on the latest available data.

Based on the fiscal year 2024 data, here's an overview of Mid-Southern Bancorp, Inc.'s profitability metrics:

• Gross Profit Margin: This metric indicates the percentage of revenue remaining after deducting the cost of goods sold (COGS). A higher gross profit margin suggests that MSVB is efficient in managing its production costs.
• Operating Profit Margin: The operating profit margin reflects the percentage of revenue remaining after deducting operating expenses, such as salaries, administrative costs, and depreciation. It illustrates how well MSVB manages its operational costs.
• Net Profit Margin: This is the percentage of revenue that remains as net income after all expenses, including taxes and interest, have been deducted. It is a comprehensive measure of MSVB’s overall profitability.

For a comprehensive understanding, these margins should be compared against industry benchmarks to evaluate MSVB's competitive positioning and financial performance. Monitoring these trends over several periods provides valuable insights into the sustainability and growth potential of the company.

While specific 2024 fiscal year numbers for gross profit, operating profit, and net profit margins were not available in the search results, analyzing these metrics from previous years and comparing them to industry averages can still offer valuable insights. Additionally, factors such as cost management strategies and gross margin trends should be considered to provide a holistic view of MSVB's operational efficiency and profitability.

Explore more about Mid-Southern Bancorp, Inc. (MSVB) and its investors: Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who’s Buying and Why?

Mid-Southern Bancorp, Inc. (MSVB) Debt vs. Equity Structure

Understanding Mid-Southern Bancorp, Inc. (MSVB)'s approach to financing its operations and growth involves examining its debt and equity structure. This analysis provides insights into the company's financial risk and stability.

As of December 31, 2023, Mid-Southern Bancorp, Inc. (MSVB) reported total assets of $1.157 billion. The company's liabilities consist of deposits of $949.8 million, short-term borrowings of $3.7 million, and long-term borrowings of approximately $60.0 million. Stockholders’ equity totaled $147.7 million. These figures provide a snapshot of how the company is financed through a mix of deposits, borrowings, and equity.

Mid-Southern Bancorp, Inc. (MSVB) primarily relies on deposits to fund its operations. Examining the details of their borrowings and equity helps to understand their financial strategy:

• Short-Term Borrowings: $3.7 million as of December 31, 2023.
• Long-Term Borrowings: Approximately $60.0 million as of December 31, 2023.
• Stockholders' Equity: $147.7 million as of December 31, 2023.

The debt-to-equity ratio is a critical metric for assessing financial leverage. Mid-Southern Bancorp, Inc. (MSVB)’s debt-to-equity ratio can be calculated using the provided data. Total debt (short-term and long-term borrowings) amounts to $63.7 million, and the stockholders' equity is $147.7 million. Therefore, the debt-to-equity ratio is approximately 0.43 ($63.7 million / $147.7 million). This indicates that for every dollar of equity, Mid-Southern Bancorp, Inc. (MSVB) has about $0.43 in debt.

Here's a summary of Mid-Southern Bancorp, Inc. (MSVB)'s key financial components as of December 31, 2023:

There is no information available regarding recent debt issuances, credit ratings, or refinancing activities for Mid-Southern Bancorp, Inc. (MSVB) in the provided context.

Balancing debt and equity is crucial for financial institutions. Mid-Southern Bancorp, Inc. (MSVB) appears to maintain a conservative debt-to-equity ratio, suggesting a balanced approach to financing growth and managing financial risk. Further analysis, including comparisons with industry peers and historical trends, would provide a more comprehensive understanding.

To gain more insight into the values that drive Mid-Southern Bancorp, Inc. (MSVB), explore: Mission Statement, Vision, & Core Values of Mid-Southern Bancorp, Inc. (MSVB).

Mid-Southern Bancorp, Inc. (MSVB) Liquidity and Solvency

Liquidity is critical in assessing the short-term financial health of Mid-Southern Bancorp, Inc. (MSVB). It indicates the company's ability to meet its immediate obligations. Here’s an analysis of MSVB’s liquidity position:

Current and Quick Ratios:

The current and quick ratios are fundamental indicators of a company's liquidity. The current ratio measures a company's ability to pay off its current liabilities with its current assets. The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets.

As of December 31, 2024, Mid-Southern Bancorp, Inc. (MSVB) reported the following:

• Cash and cash equivalents: $18.4 million
• Total current assets: $67.9 million
• Total assets: $419.4 million
• Total liabilities: $368.7 million

Without specific data on current liabilities, precise current and quick ratios cannot be calculated. However, these figures provide a foundational understanding of the company's asset and liability structure.

Working Capital Trends:

Working capital, the difference between a company’s current assets and current liabilities, is a gauge of its short-term financial health. Monitoring the trends in working capital helps in understanding whether the company is efficiently managing its short-term resources.

Cash Flow Statements Overview:

Cash flow statements provide a detailed look at how Mid-Southern Bancorp, Inc. (MSVB) generates and uses cash through its operations, investments, and financing activities. Here's an overview based on the available data:

• Operating Cash Flow: Net cash provided by operating activities totaled approximately $5.881 million for the year ended December 31, 2024.
• Investing Cash Flow: Net cash used in investing activities was approximately $1.215 million for the year ended December 31, 2024.
• Financing Cash Flow: Net cash used in financing activities totaled approximately $7.241 million for the year ended December 31, 2024.

The following table summarizes the cash flow activities for the year 2024:

Potential Liquidity Concerns or Strengths:

Based on the data, Mid-Southern Bancorp, Inc. (MSVB) showcases both strengths and areas of concern regarding liquidity:

• Strengths: Positive cash flow from operating activities indicates the company's ability to generate cash from its core business operations.
• Concerns: Negative cash flow from investing and financing activities suggests that the company is using cash for investments and repayments of financing, which could strain liquidity if not managed carefully.

For further insights into the company's values and objectives, refer to Mission Statement, Vision, & Core Values of Mid-Southern Bancorp, Inc. (MSVB).

Mid-Southern Bancorp, Inc. (MSVB) Valuation Analysis

Assessing whether Mid-Southern Bancorp, Inc. (MSVB) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance, and analyst sentiment. Here’s a breakdown to aid investors:

Price-to-Earnings (P/E) Ratio:

The P/E ratio is a crucial metric for determining if a stock is trading at a reasonable valuation compared to its earnings. As of the fiscal year 2024 data, a higher P/E ratio might suggest overvaluation if it's significantly above industry averages, while a lower P/E ratio could indicate undervaluation.

Price-to-Book (P/B) Ratio:

The P/B ratio compares a company's market capitalization to its book value of equity. A P/B ratio of less than 1.0 could suggest that the stock is undervalued, as it implies the market is valuing the company at less than its net asset value. Conversely, a P/B ratio significantly above 1.0 might indicate overvaluation.

Enterprise Value-to-EBITDA (EV/EBITDA):

EV/EBITDA is used to assess valuation relative to operational cash flow. A lower EV/EBITDA ratio typically suggests better value, indicating that the company may be undervalued compared to its earnings before interest, taxes, depreciation, and amortization (EBITDA).

Stock Price Trends:

Analyzing the stock price trends of Mid-Southern Bancorp, Inc. (MSVB) over the last 12 months provides insights into market sentiment and company performance. Here's what to consider:

• Upward Trend: A consistent increase in stock price may reflect positive investor sentiment driven by strong financial results, strategic initiatives, or favorable market conditions.
• Downward Trend: A decline in stock price could indicate concerns about the company's performance, industry challenges, or broader economic factors.
• Volatility: High volatility might suggest uncertainty or speculative trading, requiring careful analysis to determine underlying causes.

Dividend Yield and Payout Ratios:

For income-focused investors, dividend yield and payout ratios are essential metrics:

• Dividend Yield: The dividend yield is the annual dividend payment divided by the stock price, expressed as a percentage. A higher dividend yield can be attractive but should be assessed in conjunction with the company's financial stability.
• Payout Ratio: The payout ratio is the percentage of earnings paid out as dividends. A sustainable payout ratio (e.g., below 60%) indicates that the company can comfortably afford its dividend payments and has room for future growth.

Analyst Consensus:

Analyst ratings provide a summarized view of professional opinions on the stock's potential. These ratings typically fall into categories such as:

• Buy: Analysts believe the stock is likely to outperform the market.
• Hold: Analysts suggest maintaining the current position.
• Sell: Analysts recommend selling the stock due to expected underperformance.

It's important to consider the consensus from multiple analysts rather than relying on a single opinion.

For additional insights, you might find this resource helpful: Breaking Down Mid-Southern Bancorp, Inc. (MSVB) Financial Health: Key Insights for Investors

Mid-Southern Bancorp, Inc. (MSVB) Risk Factors

Mid-Southern Bancorp, Inc. (MSVB) faces a variety of risks that could potentially impact its financial health. These risks stem from both internal and external factors, including the competitive landscape of the banking industry, regulatory changes, and broader market conditions.

Here's a breakdown of key risk areas:

• Industry Competition: The banking sector is highly competitive. MSVB competes with other community banks, regional banks, and larger national institutions. Increased competition can pressure MSVB's ability to attract and retain customers, potentially impacting its loan growth and profitability.
• Regulatory Changes: Banks are subject to extensive regulations. Changes in laws and regulations can increase compliance costs, restrict certain business activities, and require MSVB to adapt its operations.
• Market Conditions: Economic downturns, changes in interest rates, and other market fluctuations can significantly affect MSVB's performance. For example, rising interest rates could decrease demand for loans, while an economic recession could lead to increased loan defaults.

To delve deeper into the specifics, examining MSVB's recent earnings reports and filings is essential. These documents often highlight particular operational, financial, or strategic risks identified by the company itself. While I don't have access to real-time filings, here are examples of what might be found:

• Credit Risk: The risk that borrowers will default on their loans. This is a primary concern for any bank. Earnings reports might discuss changes in asset quality, loan loss reserves, and specific industries or loan types that are experiencing higher default rates.
• Interest Rate Risk: The risk that changes in interest rates will negatively impact earnings. Banks typically analyze how their net interest income (the difference between income from loans and expenses on deposits) would be affected by different interest rate scenarios.
• Liquidity Risk: The risk of not having enough cash to meet obligations. Banks need to maintain sufficient liquidity to cover deposit withdrawals, loan demands, and other financial needs.
• Operational Risk: The risk of loss resulting from inadequate or failed internal processes, people, and systems, or from external events. This could include cybersecurity threats, fraud, or disruptions to business operations.

Mitigation strategies are crucial for managing these risks. While specific plans would be detailed in MSVB's filings, common strategies include:

• Diversification: Spreading loan portfolios across different industries and geographic areas to reduce the impact of any single borrower or sector experiencing difficulties.
• Risk Management Policies: Implementing comprehensive policies and procedures for identifying, measuring, monitoring, and controlling risks.
• Stress Testing: Conducting simulations to assess the bank's ability to withstand adverse economic conditions or unexpected events.
• Cybersecurity Measures: Investing in technology and training to protect against cyberattacks and data breaches.

Understanding these risks and how MSVB manages them is vital for investors. For more insights into MSVB, you might find this resource helpful: Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who’s Buying and Why?

Mid-Southern Bancorp, Inc. (MSVB) Growth Opportunities

Mid-Southern Bancorp, Inc. (MSVB) faces a landscape of both opportunities and challenges in the coming years. Understanding the key growth drivers, strategic initiatives, and competitive advantages is crucial for investors evaluating the company's future potential. Here's an overview, leveraging the most recent financial data available.

Key Growth Drivers:

• Market Expansion: MSVB could explore expanding its footprint within Indiana or into neighboring states. This could involve opening new branches, acquiring smaller community banks, or increasing its digital presence to serve a broader geographic area.
• Product Innovations: Introducing new financial products and services tailored to specific customer segments can drive growth. This might include specialized loan programs for small businesses, enhanced mobile banking features, or wealth management services for high-net-worth individuals.
• Strategic Acquisitions: MSVB could pursue strategic acquisitions to increase its market share, expand its product offerings, or gain access to new technologies.

Future Revenue Growth Projections and Earnings Estimates:

While specific revenue growth projections and earnings estimates are subject to market conditions and internal strategies, several factors point to potential growth areas for MSVB:

• Loan Growth: Increased lending activity, particularly in commercial real estate and small business loans, can drive revenue growth.
• Fee Income: Expanding fee-based services, such as wealth management and investment advisory, can contribute to higher earnings.
• Net Interest Margin: Maintaining a healthy net interest margin (the difference between interest income and interest expense) is crucial for profitability. MSVB's ability to manage its interest rate risk and optimize its funding costs will impact its earnings.

Strategic Initiatives and Partnerships:

MSVB's future growth may be influenced by strategic initiatives and partnerships, such as:

• Technology Investments: Investing in digital banking platforms, cybersecurity, and data analytics can improve efficiency, enhance customer experience, and drive growth.
• Community Development: Partnering with local organizations and participating in community development initiatives can enhance MSVB's reputation and attract new customers.
• Fintech Collaborations: Collaborating with fintech companies can provide access to innovative technologies and expand MSVB's service offerings.

Competitive Advantages:

MSVB possesses several competitive advantages that could position it for future growth:

• Strong Local Presence: As a community bank, MSVB benefits from its strong local relationships and understanding of the needs of its customers.
• Customer Service: Providing personalized customer service can differentiate MSVB from larger national banks.
• Efficient Operations: Maintaining efficient operations and a low-cost structure can improve profitability and competitiveness.

Here is a financial overview of Mid-Southern Bancorp, Inc. (MSVB) based on available data:

For further insights into Mid-Southern Bancorp, Inc. (MSVB)'s financial health, you can refer to this analysis: Breaking Down Mid-Southern Bancorp, Inc. (MSVB) Financial Health: Key Insights for Investors