Southern Indiana Business Report
SALEM — Mid-Southern Bancorp Inc., the holding company for Mid-Southern Savings Bank FSB reported net income for the third quarter ended Sept. 30 of $456,000, or $0.16 per diluted share, compared to $264,000, or $0.09 per diluted share, for the same period in 2020. For the nine months ended Sept. 30, the company reported net income of $1.2 million, or $0.42 per diluted share, compared to $991,000, or $0.31 per diluted share, for the same period in 2020.
In light of the events surrounding the COVID-19 pandemic, the company reports it is continually assessing the effects of the pandemic to its employees, customers and communities. In March 2020, the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was enacted. The CARES Act contains many provisions related to banking, lending, mortgage forbearance and taxation, and the company took part in the SBA Paycheck Protection Program (PPP), loan modifications and deferrals, and fee waivers on early withdrawal of certificates of deposit due to hardship. During the initial round of funding for PPP loans, the bank funded 29 PPP loans totaling $474,000. As of Sept. 30, all loans funded in the initial round had received full forgiveness from the SBA.
In late December 2020, the Emergency Coronavirus Relief Act of 2020 was enacted. The Relief Act extended certain provisions of the CARES Act, and allotted $284 billion to the SBA for a second round of PPP loans. For the nine months ended Sept. 30, the bank has funded 43 PPP loans totaling $815,000 as part of this second round, and 16 loans with a principal balance of $307,000 remain outstanding as of Sept. 30. As of Sept. 30, 27 loans with a principal balance of $508,000 had received full forgiveness from the SBA.
While the ultimate impact of the pandemic is difficult to predict, management believes the company is well capitalized and has the financial stability to continue to responsibly serve its customers and communities during this unprecedented time.
Mid-Southern trades under the the NASDAQ symbol MSVB.