Mid-Southern Bancorp, Inc. Reports Results of Operations for the 2nd Quarter Ended June 30, 2023.

SALEM, Ind: Mid-Southern Bancorp, Inc. (the "Company") (NASDAQ: MSVB), the holding company for Mid-Southern Savings Bank, FSB (the "Bank"), reported net income for the second quarter ended June 30, 2023 of $400,000 or $0.14 per diluted share compared to $526,000 or $0.19 per diluted share for the same period in 2022. For the six months ended June 30, 2023, the Company reported net income of $740,000 or $0.27 per diluted share compared to $993,000 or $0.36 per diluted share for the same period in 2022.

Income Statement Review

Net interest income after provision for credit losses increased $3,000, or 0.2%, for the quarter ended June 30, 2023 to $1.9 million as compared to the quarter ended June 30, 2022. Total interest income increased $451,000, or 20.9%, when comparing the two periods, due to increases in the average balances and yields of interest-earning assets. The average balance of interest-earning assets increased to $266.8 million for the quarter ended June 30, 2023 from $262.1 million for the quarter ended June 30, 2022, due primarily to increases in loans receivable, partially offset by lower investment securities and interest-bearing deposits with banks. The average yield on interest-earning assets and tax-equivalent yield on interest-earning assets(1) increased to 3.90% and 4.06%, respectively, for the quarter ended June 30, 2023 from 3.29% and 3.46%, respectively, for the quarter ended June 30, 2022, due primarily to higher yields from loans, investment securities, and interest-bearing deposits with banks. Total interest expense increased $514,000, or 297.1%, when comparing the two periods due to an increase in the average balance of interest-bearing liabilities and in the average cost of interest-bearing liabilities. The average balance of interest-bearing liabilities increased to $201.9 million for the quarter ended June 30, 2023 from $196.7 million for the same period in 2022, due primarily to increases in borrowings, partially offset by decreases in deposit accounts. The average cost of interest-bearing liabilities increased to 1.36% for the quarter ended June 30, 2023 from 0.35% for the same period in 2022. As a result of the changes in interest-earning assets and interest-bearing liabilities, the net interest rate spread and net interest rate spread on a tax-equivalent basis(1) decreased to 2.54% and 2.70%, respectively for the quarter ended June 30, 2023 from 2.94% and 3.11%, respectively, for the quarter ended June 30, 2022. The net interest margin and net interest margin on a tax-equivalent basis(1) decreased to 2.87% and 3.03%, respectively, for the quarter ended June 30, 2023 from 3.02% and 3.20% for the quarter ended June 30, 2022.

Net interest income after provision for...