Executive Summary

MSVB delivered solid Q3 2022 results: net income rose to $0.512M and diluted EPS to $0.19, up from $0.456M and $0.16 in Q3 2021, driven by higher yields on interest-earning assets and loan growth; efficiency ratio improved to 72.6% from 76.0% YoY .
Net interest margin (GAAP) expanded to 2.99% (3.16% tax-equivalent) vs 2.92% (3.09% tax-equivalent) a year ago, as asset yields increased with mix shift toward loans/securities; however, funding costs rose (interest expense +79.3% YoY), reflecting higher market rates and more interest-bearing liabilities .
Balance sheet growth continued: total assets reached $264.5M (+$10.3M YTD); loans grew $19.9M YTD, funded in part by a $21.0M increase in FHLB borrowings; capital remained strong with a 15.4% CBLR; dividend of $0.04/share continued .
Book value declined to $10.74 primarily on AOCI losses from available-for-sale securities amid rate moves and active buybacks (154,486 shares repurchased YTD for $2.2M); book value per share excluding AOCI increased to $15.25 vs $14.73 at YE21 .
No formal guidance or earnings call transcript was available; S&P Global consensus estimates were unavailable at the time of analysis, so beat/miss vs Street cannot be assessed .

What Went Well and What Went Wrong

What Went Well

Net income and EPS improved YoY as “net interest income after provision for loan losses increased $176,000, or 10.1%” on higher asset yields and balances; diluted EPS reached $0.19 vs $0.16 a year ago .
Margin/efficiency gains: GAAP NIM rose to 2.99% (3.16% tax-equivalent) from 2.92% (3.09% tax-equivalent), and the efficiency ratio improved to 72.6% from 76.0% YoY, indicating positive operating leverage .
Loan growth remained healthy YTD (+$19.9M), led by commercial real estate (+$11.2M), commercial business (+$3.7M), construction (+$2.4M), and multifamily (+$2.0M), supporting core revenue momentum .

What Went Wrong

Funding costs accelerated: total interest expense rose 79.3% YoY as average interest-bearing liabilities grew and their cost increased to 0.57% (from 0.38%), pressuring spread upside despite asset yield gains .
Credit provisioning returned: the company recorded an $85k provision (vs none in Q3 2021), reflecting management’s allowance analysis amid growth and macro dynamics; nonperforming loans remained 0.6% of loans .
Tangible/book value pressure from rates: stockholders’ equity fell to $30.8M from $46.5M at YE21, driven by AOCI on AFS securities and repurchases; book value per share declined to $10.74 despite stable capital positioning (CBLR 15.4%) .

Financial Results

Operating Revenue (NII + Noninterest Income) and EPS

Note: Operating revenue is computed as net interest income plus total non-interest income.

Metric ($USD Millions unless noted)	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Net Interest Income	$1.739	$1.733	$1.980	$2.000
Total Non-Interest Income	$0.301	$0.285	$0.364	$0.295
Operating Revenue (NII + Noninterest)	$2.040	$2.018	$2.344	$2.295
Net Income	$0.456	$0.467	$0.526	$0.512
Diluted EPS ($)	$0.16	$0.17	$0.19	$0.19

Margins and Efficiency

Ratio (%)	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Net Interest Margin (GAAP)	2.92	2.93	3.20	2.99
Net Interest Margin (Tax-Equivalent)	3.09	—	—	3.16
Interest Rate Spread (Tax-Equivalent)	2.99	—	—	3.02
Efficiency Ratio	76.0	75.2	74.4	72.6
ROAA (annualized)	0.73	0.72	0.80	0.77
ROAE (annualized)	3.81	4.13	5.64	5.87

Note: Tax-equivalent NIM/spread are non-GAAP; see reconciliation in the earnings release .

Balance Sheet and Credit KPIs

KPI	Q3 2021	Q1 2022	Q2 2022	Q3 2022
Total Assets ($M)	—	$261.5	$266.5	$264.5
Loans, Net ($M)	—	$127.3	$138.1	$142.5
Deposits ($M)	—	$209.7	$205.0	$201.8
FHLB Borrowings ($M)	—	$10.0	$26.0	$31.0
Stockholders’ Equity ($M)	—	$41.0	$34.4	$30.8
Book Value/Share ($)	—	13.61	11.97	10.74
BV/Share ex-AOCI ($)	—	—	15.08	15.25
CBLR (%)	16.3 YE21 baseline	16.2	15.7	15.4
NPLs / Total Loans (%)	0.6 YE21 baseline	0.5	0.6	0.6
Allowance / NPLs (%)	202.3 YE21 baseline	256.2	191.1	192.9

Segment breakdown: Not applicable; the company reports as a single banking business .

Guidance Changes

No formal quantitative guidance was provided in Q3 2022; the company did not issue ranges for revenue/margins/expenses/tax. The quarterly dividend remained $0.04 per share, unchanged from prior quarters.

Metric	Period	Previous Guidance	Current Guidance	Change
Financial Guidance (revenue/margins/OpEx/tax)	Q4 2022+	None	None	Maintained (no guidance)
Dividend per Share	Q3 2022	$0.04 (Q2 2022)	$0.04	Maintained

Earnings Call Themes & Trends

No earnings call transcript was available for Q3 2022. Thematic trends are synthesized from the press releases.

Topic	Previous Mentions (Q2 and Q1)	Current Period (Q3 2022)	Trend
Loan Growth	Q1: Loans +$4.7M QoQ; strength in CRE and 1–4 family . Q2: Loans +$15.6M YTD; CRE and multifamily drove growth .	YTD loans +$19.9M led by CRE, C&I, construction, multifamily .	Positive growth momentum sustained.
Net Interest Margin	Q1 NIM 2.93% (down YoY) amid lower yields . Q2 NIM 3.20% as yields improved and mix shifted .	NIM 2.99% (3.16% TE); asset yields higher with mix shift .	Mixed: improvement vs Q1; modestly below Q2 on GAAP basis.
Funding Costs	Q1 average cost 0.32% (down YoY) . Q2 average cost 0.35% (down YoY) .	Avg cost rose to 0.57%; interest expense +79% YoY .	Headwind from rising rates.
Capital/AOCI	Q1 equity $41.0M; AOCI down on AFS marks . Q2 equity $34.4M; AOCI reduced; buybacks ongoing .	Equity $30.8M; AOCI impact and repurchases continued .	Pressure from rates continues; strong CBLR.
Credit Quality	Q1 NPLs 0.5% of loans; no provision . Q2 NPLs 0.6%; $50k provision .	NPLs 0.6%; $85k provision; coverage ~193% .	Stable asset quality; modest provisioning resumed.
Liquidity/Funding	Q1 deposits +$12.8M; FHLB $10M . Q2 deposits slightly up; FHLB $26M .	Deposits $201.8M; FHLB $31M to support growth .	Greater reliance on wholesale as rates rose.

Management Commentary

“Net interest income after provision for loan losses increased $176,000, or 10.1%, for the quarter ended September 30, 2022… due to increases in the average balances and yields of interest-earning assets.”
“The average cost of interest-bearing liabilities increased to 0.57%… [and] total interest expense increased $130,000, or 79.3%.”
“Total assets as of September 30, 2022 were $264.5 million… primarily due to increases in net loans of $19.9 million…”
“At September 30, 2022, the Bank was… well-capitalized… with a CBLR of 15.4%.”

Q&A Highlights

No earnings call transcript or Q&A was available for Q3 2022 based on our document search (no “earnings-call-transcript” found) [MSVB earnings call transcripts not available via tool; 0 results].

Estimates Context

Wall Street consensus estimates from S&P Global were unavailable at the time of analysis, so we cannot quantify beat/miss versus consensus for revenue or EPS (S&P Global request limit/coverage constraints). As such, no estimate comparison is presented for Q3 2022.

Key Takeaways for Investors

Core profitability improved YoY (EPS $0.19; efficiency 72.6%), supported by higher asset yields and loan growth; operating leverage improved despite a tougher rate backdrop .
Rising funding costs are the near-term swing factor (interest expense +79% YoY; cost of interest-bearing liabilities 0.57%); deposit pricing/wholesale funding mix will drive NIM trajectory into Q4 .
Balance sheet growth remains constructive (loans +$19.9M YTD) with manageable credit metrics (NPLs 0.6%, coverage ~193%), supporting stable earnings power if funding costs stabilize .
Capital remains strong (CBLR 15.4%), providing flexibility for prudent growth and capital returns; however, book value is sensitive to rate-driven AOCI, which has weighed on reported equity .
Dividend continuity ($0.04/share) and repurchases underscore confidence, but monitoring liquidity/funding mix (FHLB $31M) is important as rates reset .
With no available Street estimates or call transcript, the stock’s near-term catalyst is likely narrative around NIM resilience vs. funding cost inflation, credit normalization, and capital/AOCI dynamics—watch Q4 update for direction on deposit betas and wholesale usage .

Sources: Q3 2022 earnings press release and 8‑K (Exhibit 99.1) dated Oct 24, 2022; prior quarter 8‑Ks and press releases dated Jul 25, 2022 and Apr 25, 2022 .

Mid-Southern Bancorp, Inc. (MSVB)·Q3 2022 Earnings Summary