MANISTIQUE, MI--(Marketwired - May 1, 2015) - Mackinac Financial Corporation (
Shareholders' equity at March 31, 2015 totaled $75.038 million, compared to $65.730 million on March 31, 2014. The book value per share equated to $11.99 on March 31, 2015 compared to $11.89 per share a year ago. Weighted average shares outstanding totaled 6,256,475 shares in the 2015 first quarter compared to 5,527,690 for the same period in 2014.
The acquisition of Peninsula Financial Corporation the holding company for Peninsula Bank, ("PFC"), in December 2014 added approximately $125 million in assets, $70 million in loan balances and $100 million in deposits to our organization. In connection with this acquisition we increased shareholders equity by $7.804 million, issued 695,361 shares of our common stock and added approximately 350 new shareholders.
Some highlights for the first quarter include:
- mBank, the Corporation's primary asset, recorded net income of $1.627 million in the first quarter of 2015, a 47.9% increase compared to $1.100 million for the first quarter of 2014.
- A seamless operational and cultural integration of PFC, with a full systems conversion completed in March 2015.
- Strong net interest margin improving to 4.53% compared to 4.25% in the 2014 first quarter.
- Increased contribution from secondary mortgage market activity.
- The Corporation recorded "pre-tax, pre-provision" income of $2.388 million for the first quarter of 2015, compared to $1.177 million for the same period in 2014.
- Dividend on common stock of $.075 per share compared to $.05 per share one year ago.
Loans and Non-performing Assets
Total loans at March 31, 2015 were $597.731 million, an increase of $111.869 million, $70.0 million from the PFC acquisition noted above, and down slightly from year end balances of $600.935 million. Our organic balance sheet loan growth in the past twelve months was approximately $42 million, or 8.7%. New loan production was solid in the 2015 first quarter at $31.4 million, although some larger loan payoffs and normal loan principal amortization resulted in a slight decrease in outstanding loan balances. Commenting on new loan production and overall lending activities, Kelly W. George, President and CEO of mBank stated, "We were generally pleased with our overall loan production for the quarter with almost $15 million in new commercial originations and over $16 million in consumer, primarily mortgage, where we have seen a nice uptick in the secondary market. We expect that trend to continue as we move into our more seasonal lending origination months. The slight decrease in loan balances from various commercial loan pay downs for existing clients reflects borrowers' actions to reduce debt with excess cash reserves, and a few commercial real estate relationships exiting the bank where available terms and rates were outside of our acceptable parameters. Our current loan pipeline remains good for both traditional commercial and SBA loans as we also move to a more offensive position within our newly acquired PFC markets after the successful operational and cultural merger of the company over the first quarter into the mBank operating environment."
Nonperforming loans totaled $11.850 million, 1.98% of total loans at March 31, 2015 compared to $1.491 million, or .31% of total loans at March 31, 2014 and up from the $3.939 million from December 31, 2014. Total loan delinquencies greater than 30 days resided at a nominal .95%, or $5.612 million. Mr. George, commenting on credit quality, stated, "Our credit quality risk metrics and overall loan portfolio payment performance remains strong with no systemic issues within any segments of the portfolio. The increase in nonperforming assets in the 2015 first quarter totaling $7.911 million is due almost entirely to one large credit, an approximate $7.5 million local loan relationship, which the bank entered into in 2011 as a chapter 11 bankruptcy reorganization. This relationship was established in conjunction with several other state and federal government lending parties who provided various loan guarantees, in order to preserve a long standing paper mill in our headquarters market and save over 150 jobs. The private equity owners of the mill shut the facility unexpectedly in late March of this year given ongoing projected capital needs they were unwilling to fund. We are proceeding with a cautiously optimistic posture that a new owner can be procured in the near-term as the mill has been open since 1914. We have taken prudent steps working with all lending parties to gradually wind down the mill and protect and control the disposition of our collateral should the mill fail to reopen. We have been very pleased with the resolution of several of the acquired PFC problem assets, and expect further positive progress there as we work through their remaining nonperforming assets the first half of this year. We believe our purchase accounting marks for the loans acquired are appropriate."
Margin Analysis
Net interest income in the first quarter of 2014 increased to $7.520 million, 4.53%, compared to $5.593 million, or 4.25%, in the first quarter of 2014. The increase in net interest income was largely due to the PFC acquisition as we increased earning assets by approximately $90 million. We also had increased net interest contribution due to the accretive attributes associated with the purchase accounting adjustments related to PFC loan marks under GAAP. Mr. George stated, "We have been successful in maintaining our strong net interest margin within this historically low interest rate cycle though the use of continued targeted funding strategies and disciplined loan pricing in efforts to mitigate longer term interest rate risk where we maintain a favorable balance sheet position in a rising interest rate environment. We continue to look for any investment opportunities that fit our balance sheet structure but will not take unnecessary risk or extend duration in order to enhance short term yields. We will remain committed to our core banking philosophy which emphasizes loan growth as the best asset to invest in to benefit and help grow the economic bases in our local communities, which in turn also provides the best overall returns to our shareholders."
Deposits
Total deposits of $597.913 million at March 31, 2015 increased by $122.203 million ($100 million from the PFC acquisition noted above), from deposits of $475.710 million on March 31, 2014 and were down slightly from year end deposits of $606.973 million. Mr. George, commenting on core deposits and overall liquidity needs, stated "The Corporation maintains a strong liquidity position to fund operations and loan growth. We proactively review our short and long term funding needs and review our pricing levels within the different segments of our deposit products in order to best manage our net interest margin to capture as many dollars as we can. We will also utilize alternative funding sources such as internet CDs and small levels of wholesale deposits when deemed necessary to structure different liabilities to match asset growth durations, and cover any potential short term funding gaps that could arise to protect our balance sheet in various interest rate change stress tests."
Noninterest Income/Expense
Noninterest income, at $.624 million in the first quarter of 2015, decreased $.067 million from the first quarter 2014 level of $.691 million. The primary reason for the decrease was a reduced level of gains on the sale of SBA/USDA loan balances which totaled $.118 million in the 2015 first quarter down from $.382 million in the first quarter of 2014. Secondary market fees increased to $.167 million in the first quarter of 2015 compared to $.103 million in the first quarter of 2014. Noninterest expense, at $5.756 million in the first quarter of 2015, increased $.649 million, or 12.71% from the first quarter of 2014. The increase from the first quarter of 2014 was largely attributable to the PFC acquisition in December 2014 in terms of salaries and benefits, and some data processing costs which are expected to diminish now that the conversion process is complete.
Assets and Capital
Total assets of the Corporation at March 31, 2015 were $728.844 million, up $145.252 million from the $583.592 million reported at March 31, 2014 and down $14.941 million from the $743.785 million of total assets at year-end 2014. The decrease in assets during the first quarter was primarily due to the reduction in deposits as we paid down some of our brokered deposits in connection with reductions in loan funding needs. Common shareholders' equity at March 31, 2015 totaled $75.038 million, or $11.99 per share, compared to $65.730 million, or $11.89 per share on March 31, 2014. The Corporation and the Bank are both "well-capitalized" with Tier 1 Capital at the Corporation of 8.75% and 9.41% at the Bank.
Paul D. Tobias, Chairman and Chief Executive Officer of Mackinac concluded, "With the recent acquisition of PFC, the combination of our organizations has resulted in significant accretive earnings in our first quarter of combined results and we expect this contribution to continue in future periods. The expansion of our footprint from this business combination provided us with increased growth opportunities in the western U.P. markets and our increased asset size resulted in the anticipated operational efficiencies, which contributed to earnings accretion as anticipated. We believe that we will have additional accretive opportunities in the near term as the regulatory and operating costs for smaller banks dictate a larger asset base. We remain committed to our shareholders in all of our endeavors to increase value by building a safe and sound company with strong asset growth, increasing core earnings and growing returns on equity."
Mackinac Financial Corporation is a registered bank holding company formed under the Bank Holding Company Act of 1956 with assets in excess of $725 million and whose common stock is traded on the NASDAQ stock market as "MFNC." The principal subsidiary of the Corporation is mBank. Headquartered in Manistique, Michigan, mBank has 17 branch locations; thirteen in the Upper Peninsula, three in the Northern Lower Peninsula and one in Oakland County, Michigan. The Company's banking services include commercial lending and treasury management products and services geared toward small to mid-sized businesses, as well as a full array of personal and business deposit products and consumer loans.
Forward-Looking Statements
This release contains certain forward-looking statements. Words such as "anticipates," "believes," "estimates," "expects," "intends," "should," "will," and variations of such words and similar expressions are intended to identify forward-looking statements: as defined by the Private Securities Litigation Reform Act of 1995. These statements reflect management's current beliefs as to expected outcomes of future events and are not guarantees of future performance. These statements involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood, and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements. Factors that could cause a difference include among others: changes in the national and local economies or market conditions; changes in interest rates and banking regulations; the impact of competition from traditional or new sources; and the possibility that anticipated cost savings and revenue enhancements from mergers and acquisitions, bank consolidations, branch closings and other sources may not be fully realized at all or within specified time frames as well as other risks and uncertainties including but not limited to those detailed from time to time in filings of the Company with the Securities and Exchange Commission. These and other factors may cause decisions and actual results to differ materially from current expectations. Mackinac Financial Corporation undertakes no obligation to revise, update, or clarify forward-looking statements to reflect events or conditions after the date of this release.
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||
SELECTED FINANCIAL HIGHLIGHTS | |||||||||||||
As of and For the | As of and For the | As of and For the | |||||||||||
Quarter Ending | Year Ending | Quarter Ending | |||||||||||
March 31, | December 31, | March 31, | |||||||||||
(Dollars in thousands, except per share data) | 2015 | 2014 | 2014 | ||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
Selected Financial Condition Data (at end of period): | |||||||||||||
Assets | $ | 728,844 | $ | 743,785 | $ | 583,592 | |||||||
Loans | 597,731 | 600,935 | 485,862 | ||||||||||
Investment securities | 63,313 | 65,832 | 47,411 | ||||||||||
Deposits | 597,913 | 606,973 | 475,710 | ||||||||||
Borrowings | 49,839 | 49,846 | 38,852 | ||||||||||
Shareholders' equity | 75,038 | 73,996 | 65,730 | ||||||||||
Selected Statements of Income Data: | |||||||||||||
Net interest income | $ | 7,520 | $ | 23,527 | $ | 5,593 | |||||||
Income before taxes | 2,083 | 2,829 | 994 | ||||||||||
Net income | 1,371 | 1,700 | 660 | ||||||||||
Income per common share - Basic | .22 | .30 | .12 | ||||||||||
Income per common share - Diluted | .22 | .30 | .12 | ||||||||||
Weighted average shares outstanding | 6,256,475 | 5,592,738 | 5,530,908 | ||||||||||
Weighted average shares outstanding - Diluted | 6,268,742 | 5,653,811 | 5,549,730 | ||||||||||
Selected Financial Ratios and Other Data: | |||||||||||||
Performance Ratios: | |||||||||||||
Net interest margin | 4.53 | % | 4.19 | % | 4.25 | % | |||||||
Efficiency ratio | 74.27 | 74.43 | 80.57 | ||||||||||
Return on average assets | .75 | .28 | .46 | ||||||||||
Return on average equity | 7.54 | 2.57 | 4.09 | ||||||||||
Average total assets | $ | 737,496 | $ | 605,612 | $ | 580,717 | |||||||
Average total shareholders' equity | 73,776 | 66,249 | 65,462 | ||||||||||
Average loans to average deposits ratio | 99.78 | % | 103.98 | % | 102.62 | % | |||||||
Common Share Data at end of period: | |||||||||||||
Market price per common share | $ | 11.39 | $ | 11.85 | $ | 12.54 | |||||||
Book value per common share | 11.99 | 11.81 | 11.89 | ||||||||||
Dividends paid per share, annualized | .30 | .225 | .20 | ||||||||||
Common shares outstanding | 6,257,450 | 6,266,756 | 5,527,690 | ||||||||||
Other Data at end of period: | |||||||||||||
Allowance for loan losses | $ | 5,527 | $ | 5,140 | $ | 4,883 | |||||||
Non-performing assets | $ | 14,482 | $ | 6,949 | $ | 3,657 | |||||||
Allowance for loan losses to total loans | .92 | % | .86 | % | 1.01 | % | |||||||
Non-performing assets to total assets | 1.99 | % | .63 | % | .63 | % | |||||||
Texas ratio | 19.16 | % | 9.37 | % | 5.18 | % | |||||||
Number of: | |||||||||||||
Branch locations | 17 | 17 | 11 | ||||||||||
FTE Employees | 168 | 160 | 133 | ||||||||||
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
2015 | 2014 | 2014 | ||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 24,242 | $ | 21,947 | $ | 24,748 | ||||||||
Federal funds sold | 4 | - | 3 | |||||||||||
Cash and cash equivalents | 24,246 | 21,947 | 24,751 | |||||||||||
Interest-bearing deposits in other financial institutions | 5,832 | 5,797 | 10 | |||||||||||
Securities available for sale | 63,313 | 65,832 | 47,411 | |||||||||||
Federal Home Loan Bank stock | 2,973 | 2,973 | 3,060 | |||||||||||
Loans: | ||||||||||||||
Commercial | 428,439 | 433,566 | 361,299 | |||||||||||
Mortgage | 152,016 | 148,984 | 110,759 | |||||||||||
Consumer | 17,276 | 18,385 | 13,804 | |||||||||||
Total Loans | 597,731 | 600,935 | 485,862 | |||||||||||
Allowance for loan losses | (5,527 | ) | (5,140 | ) | (4,883 | ) | ||||||||
Net loans | 592,204 | 595,795 | 480,979 | |||||||||||
Premises and equipment | 12,614 | 12,658 | 9,800 | |||||||||||
Other real estate held for sale | 2,632 | 3,010 | 2,166 | |||||||||||
Deferred tax asset | 10,332 | 11,498 | 9,533 | |||||||||||
Deposit based intangibles | 1,167 | 1,196 | - | |||||||||||
Goodwill | 3,805 | 3,805 | - | |||||||||||
Other assets | 9,726 | 19,274 | 5,882 | |||||||||||
TOTAL ASSETS | $ | 728,844 | $ | 743,785 | $ | 583,592 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
LIABILITIES: | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest bearing deposits | $ | 104,689 | $ | 95,498 | $ | 68,027 | ||||||||
NOW, money market, interest checking | 206,824 | 212,565 | 148,023 | |||||||||||
Savings | 29,470 | 28,015 | 14,425 | |||||||||||
CDs < $100,000 | 127,639 | 134,951 | 154,371 | |||||||||||
CDs > $100,000 | 29,434 | 30,316 | 23,317 | |||||||||||
Brokered | 99,857 | 105,628 | 67,547 | |||||||||||
Total deposits | 597,913 | 606,973 | 475,710 | |||||||||||
Borrowings | 49,839 | 49,846 | 38,852 | |||||||||||
Other liabilities | 6,054 | 12,970 | 3,300 | |||||||||||
Total liabilities | 653,806 | 669,789 | 517,862 | |||||||||||
SHAREHOLDERS' EQUITY: | ||||||||||||||
Preferred stock - No par value: | ||||||||||||||
Authorized 500,000 shares, Issued and outstanding - 11,000 shares | - | - | - | |||||||||||
Common stock and additional paid in capital - No par value | ||||||||||||||
Authorized - 18,000,000 shares | ||||||||||||||
Issued and outstanding - 6,257,450; 6,266,756; and 5,527,690 shares respectively | 61,558 | 61,679 | 53,590 | |||||||||||
Retained earnings | 12,706 | 11,804 | 11,796 | |||||||||||
Accumulated other comprehensive income | 774 | 513 | 344 | |||||||||||
Total shareholders' equity | 75,038 | 73,996 | 65,730 | |||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 728,844 | $ | 743,785 | $ | 583,592 | ||||||||
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
(Unaudited) | |||||||
INTEREST INCOME: | |||||||
Interest and fees on loans: | |||||||
Taxable | $ | 8,225 | $ | 6,281 | |||
Tax-exempt | 3 | 23 | |||||
Interest on securities: | |||||||
Taxable | 302 | 237 | |||||
Tax-exempt | 41 | 13 | |||||
Other interest income | 62 | 48 | |||||
Total interest income | 8,633 | 6,602 | |||||
INTEREST EXPENSE: | |||||||
Deposits | 823 | 822 | |||||
Borrowings | 290 | 187 | |||||
Total interest expense | 1,113 | 1,009 | |||||
Net interest income | 7,520 | 5,593 | |||||
Provision for loan losses | 305 | 183 | |||||
Net interest income after provision for loan losses | 7,215 | 5,410 | |||||
OTHER INCOME: | |||||||
Deposit service fees | 184 | 157 | |||||
Income from loans sold on the secondary market | 167 | 103 | |||||
SBA/USDA loan sale gains | 118 | 382 | |||||
Mortgage servicing income | 31 | 13 | |||||
Net security gains | 10 | - | |||||
Other | 114 | 36 | |||||
Total other income | 624 | 691 | |||||
OTHER EXPENSE: | |||||||
Salaries and employee benefits | 3,047 | 2,541 | |||||
Occupancy | 576 | 538 | |||||
Furniture and equipment | 399 | 319 | |||||
Data processing | 355 | 286 | |||||
Advertising | 126 | 107 | |||||
Professional service fees | 301 | 331 | |||||
Loan and deposit | 138 | 79 | |||||
Writedowns and losses on other real estate held for sale | 17 | - | |||||
FDIC insurance assessment | 108 | 85 | |||||
Telephone | 132 | 82 | |||||
Other | 557 | 739 | |||||
Total other expenses | 5,756 | 5,107 | |||||
Income before provision for income taxes | 2,083 | 994 | |||||
Provision for income taxes | 712 | 334 | |||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $ | 1,371 | $ | 660 | |||
INCOME PER COMMON SHARE: | |||||||
Basic | $ | .22 | $ | .12 | |||
Diluted | $ | .22 | $ | .12 | |||
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||
LOAN PORTFOLIO AND CREDIT QUALITY | |||||||||||
(Dollars in thousands) | |||||||||||
Loan Portfolio Balances (at end of period): | |||||||||||
March 31, | December 31, | March 31, | |||||||||
2015 | 2013 | 2014 | |||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||
Commercial Loans: | |||||||||||
Real estate - operators of nonresidential buildings | $ | 106,286 | $ | 106,644 | $ | 97,153 | |||||
Hospitality and tourism | 45,995 | 46,211 | 44,243 | ||||||||
Lessors of residential buildings | 21,545 | 19,776 | 13,649 | ||||||||
Commercial construction | 18,019 | 16,284 | 10,685 | ||||||||
Gasoline stations and convenience stores | 13,965 | 13,841 | 11,980 | ||||||||
Real estate agents and managers | 9,717 | 9,454 | 10,115 | ||||||||
Other | 212,912 | 221,356 | 184,159 | ||||||||
Total Commercial Loans | 428,439 | 433,566 | 371,984 | ||||||||
1-4 family residential real estate | 142,283 | 139,553 | 104,376 | ||||||||
Consumer | 17,276 | 18,385 | 13,804 | ||||||||
Consumer construction | 9,733 | 9,431 | 6,383 | ||||||||
Total Loans | $ | 597,731 | $ | 600,935 | $ | 496,547 | |||||
Credit Quality (at end of period):
March 31, | December 31, | March 31, | ||||||||||||
2015 | 2014 | 2014 | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
Nonperforming Assets: | ||||||||||||||
Nonaccrual loans | $ | 11,801 | $ | 3,939 | $ | 983 | ||||||||
Loans past due 90 days or more | 49 | - | - | |||||||||||
Restructured loans | - | - | 508 | |||||||||||
Total nonperforming loans | 11,850 | 3,939 | 1,491 | |||||||||||
Other real estate owned | 2,632 | 3,010 | 2,166 | |||||||||||
Total nonperforming assets | $ | 14,482 | $ | 6,949 | $ | 3,657 | ||||||||
Nonperforming loans as a % of loans | 1.98 | % | .66 | % | .31 | % | ||||||||
Nonperforming assets as a % of assets | 1.99 | % | .93 | % | .63 | % | ||||||||
Reserve for Loan Losses: | ||||||||||||||
At period end | $ | 5,527 | $ | 5,140 | $ | 4,883 | ||||||||
As a % of average loans | .92 | % | 1.01 | % | 1.00 | % | ||||||||
As a % of nonperforming loans | 46.64 | % | 130.49 | % | 327.50 | % | ||||||||
As a % of nonaccrual loans | 46.84 | % | 130.49 | % | 496.74 | % | ||||||||
Texas Ratio | 19.16 | % | 9.37 | % | 5.18 | % | ||||||||
Charge-off Information (year to date): | ||||||||||||||
Average loans | $ | 600,052 | $ | 509,749 | $ | 486,354 | ||||||||
Net charge-offs (recoveries) | $ | (83 | ) | $ | 721 | $ | (40 | ) | ||||||
Charge-offs as a % of average loans, annualized | N/M | % | .14 | % | N/M | % |
MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||||||||||
QUARTERLY FINANCIAL HIGHLIGHTS | |||||||||||||||||
QUARTER ENDED | |||||||||||||||||
(Unaudited) | |||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||||
BALANCE SHEET (Dollars in thousands) | |||||||||||||||||
Total loans | $ | 597,731 | $ | 600,935 | $ | 518,373 | $ | 502,940 | $ | 485,862 | |||||||
Allowance for loan losses | (5,527 | ) | (5,140 | ) | (5,279 | ) | (5,097 | ) | (4,883 | ) | |||||||
Total loans, net | 592,204 | 595,795 | 513,094 | 497,843 | 480,979 | ||||||||||||
Total assets | 728,844 | 743,785 | 613,943 | 595,869 | 583,592 | ||||||||||||
Core deposits | 468,622 | 471,029 | 403,950 | 380,772 | 384,846 | ||||||||||||
Noncore deposits | 129,291 | 135,944 | 87,256 | 103,244 | 90,864 | ||||||||||||
Total deposits | 597,913 | 606,973 | 491,206 | 484,016 | 475,710 | ||||||||||||
Total borrowings | 49,839 | 49,846 | 52,409 | 42,087 | 38,852 | ||||||||||||
Total shareholders' equity | 75,038 | 73,996 | 67,132 | 66,477 | 65,730 | ||||||||||||
Total tangible equity | 70,066 | 68,995 | 67,132 | 66,477 | 65,730 | ||||||||||||
Total shares outstanding | 6,257,450 | 6,266,756 | 5,564,815 | 5,527,690 | 5,527,690 | ||||||||||||
Weighted average shares outstanding | 6,256,475 | 5,770,104 | 5,540,200 | 5,527,690 | 5,530,908 | ||||||||||||
AVERAGE BALANCES (Dollars in thousands) | |||||||||||||||||
Assets | $ | 737,496 | $ | 651,935 | $ | 607,840 | $ | 581,150 | $ | 580,717 | |||||||
Loans | 600,052 | 549,411 | 509,618 | 492,923 | 486,354 | ||||||||||||
Deposits | 601,834 | 522,155 | 494,599 | 469,720 | 473,951 | ||||||||||||
Equity | 73,776 | 67,397 | 66,558 | 65,553 | 65,462 | ||||||||||||
INCOME STATEMENT (Dollars in thousands) | |||||||||||||||||
Net interest income | $ | 7,520 | $ | 6,389 | $ | 5,886 | $ | 5,659 | $ | 5,593 | |||||||
Provision for loan losses | 305 | 639 | 187 | 191 | 183 | ||||||||||||
Net interest income after provision | 7,215 | 5,750 | 5,699 | 5,468 | 5,410 | ||||||||||||
Total noninterest income | 624 | 1,003 | 768 | 650 | 691 | ||||||||||||
Total noninterest expense | 5,756 | 7,479 | 5,126 | 4,898 | 5,107 | ||||||||||||
Income before taxes | 2,083 | (726 | ) | 1,341 | 1,220 | 994 | |||||||||||
Provision for income taxes | 712 | (74 | ) | 455 | 414 | 334 | |||||||||||
Net income available to common shareholders | $ | 1,371 | $ | (652 | ) | $ | 886 | $ | 806 | $ | 660 | ||||||
Income pre-tax, pre-provision | $ | 2,388 | $ | (87 | ) | $ | 1,528 | $ | 1,411 | $ | 1,177 | ||||||
PER SHARE DATA | |||||||||||||||||
Earnings | $ | .22 | $ | (.13 | ) | $ | .16 | $ | .15 | $ | .12 | ||||||
Book value per common share | 11.99 | 11.81 | 12.06 | 12.03 | 11.89 | ||||||||||||
Market value, closing price | 11.39 | 11.85 | 11.30 | 12.90 | 12.54 | ||||||||||||
Dividends per share | .075 | .075 | .05 | .05 | .05 | ||||||||||||
ASSET QUALITY RATIOS | |||||||||||||||||
Nonperforming loans/total loans | 1.98 | % | .66 | % | .52 | % | .53 | % | .31 | % | |||||||
Nonperforming assets/total assets | 1.99 | .93 | .74 | .77 | .63 | ||||||||||||
Allowance for loan losses/total loans | .92 | .86 | 1.02 | 1.01 | 1.01 | ||||||||||||
Allowance for loan losses/nonperforming loans | 46.64 | 130.49 | 195.88 | 192.19 | 327.50 | ||||||||||||
Texas ratio (1) | 19.16 | 9.37 | 6.27 | 6.43 | 5.18 | ||||||||||||
PROFITABILITY RATIOS | |||||||||||||||||
Return on average assets | .75 | % | (.40 | )% | .58 | % | .56 | % | .46 | % | |||||||
Return on average equity | 7.54 | (3.84 | ) | 5.28 | 4.93 | 4.09 | |||||||||||
Net interest margin | 4.53 | 4.19 | 4.20 | 4.18 | 4.25 | ||||||||||||
Efficiency ratio | 74.27 | 70.27 | 73.83 | 77.55 | 80.57 | ||||||||||||
Average loans/average deposits | 99.78 | 105.22 | 103.03 | 104.94 | 102.62 | ||||||||||||
CAPITAL ADEQUACY RATIOS | |||||||||||||||||
Tier 1 leverage ratio | 8.75 | % | 8.57 | % | 10.23 | % | 10.50 | % | 10.25 | % | |||||||
Tier 1 capital to risk weighted assets | 10.33 | 10.23 | 11.68 | 11.86 | 11.79 | ||||||||||||
Total capital to risk weighted assets | 11.22 | 11.07 | 12.68 | 12.87 | 12.79 | ||||||||||||
Average equity/average assets (for the quarter) | 10.00 | 10.34 | 10.95 | 11.28 | 11.27 | ||||||||||||
Tangible equity/tangible assets (at quarter end) | 9.68 | 9.25 | 10.93 | 11.16 | 11.26 |
(1) Texas ratio equals nonperforming assets divided by tangible shareholders' equity plus allowance for loan losses |
Contact Information:
Contact:
Ernie R. Krueger
(906)341-7158
Website: www.bankmbank.com