MANISTIQUE, MI--(Marketwired - Jul 24, 2015) - Mackinac Financial Corporation (
Shareholders' equity at June 30, 2015 totaled $75.746 million, compared to $66.477 million on June 30, 2014. The book value per share equated to $12.15 on June 30, 2015 compared to $12.03 per share a year ago. Weighted average shares outstanding totaled 6,250,984 shares in the 2015 first half compared to 5,529,290 for the same period in 2015.
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.
Key highlights for the first six months of 2015 results include:
- mBank, the Corporation's primary asset, recorded net income of $3.516 million in the first half of 2015, compared to $2.404 million for the first half of 2014, a 46.26 % increase following the seamless integration of Peninsula Bank.
- The Corporation recorded "pre-tax, pre-provision" income of $5.038 million for the first half of 2015, compared to $2.588 million for the same period in 2014.
- Healthy new loan growth with production of $114.8 million and $14.2 million of "net" balance sheet growth.
- Strong net interest margin improving to 4.35% compared to 4.21% in the 2014 first half.
- Increased contribution from secondary mortgage market activity.
- Dividend on common stock of $.075 per share compared to $.05 per share one year ago.
Loans and Nonperforming Assets
Total loans at June 30, 2015 were $615.247 million, a $112.307 million increase from $502.940 million at June 30, 2014, of which approximately $70.0 million is due to the PFC acquisition. The Corporation is up $14.166 million, 2.0%, from year-end 2014 total loans of $601.081 million. In addition to the aforementioned balance sheet totals, the company services $228 million of sold mortgage loans and $66 million of sold SBA and USDA loans. Total loans under management now total $909 million.
New loan production totaled $114.8 million with the Upper Peninsula contributing $64.6 million, the Northern Lower Peninsula $32.8 million and Southeast Michigan $17.4 million. Commercial loan production accounted for $73.0 million of the six month total, with consumer, primarily 1-4 family mortgages, of $41.8 million. Commenting on new loan production and overall lending activities, Kelly W. George, President and CEO of mBank, stated, "We are very pleased with the new loan opportunities in all our markets. Our net loan balances did not increase in line with production as we experienced approximately $25.0 million of unanticipated loan payoffs due in part to customers moving to other institutions for pricing and terms that were outside of our loan structure guidelines. Loan balance growth did accelerate in the second quarter with strong loan pipelines moving into the second half of the year for both commercial and mortgage business."
Nonperforming loans totaled $9.652 million, 1.57% of total loans at June 30, 2015 compared to $2.652 million, or .53% of total loans at June 30, 2014 and up from the $3.939 million from December 31, 2014. Total loan delinquencies greater than 30 days resided at a nominal 1.71%, or $7.641 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."
Mr. George also stated, "The increase in nonperforming loans is isolated almost solely with the local paper mill loan relationship we discussed in detail in our previous quarters press release. As an update, a letter of intent has been signed with a potential new owner who is completing exclusive due diligence with hopes of acquiring the assets of the mill and reopening it in early October of this year making paper again. We are cautiously optimistic that the letter of intent and subsequent due diligence will result in a final definite sales agreement. We have taken prudent steps working with all lending parties and government agencies to continually wind down the mill and protect and control the disposition of our collateral should the mill fail to reopen since it was abruptly closed in late March by its private equity owner."
Mr. George concluded, "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. We believe our purchase accounting marks for the loans acquired are appropriate."
Margin Analysis
Net interest income in the first half of 2015 increased to $14.520 million, 4.35%, compared to 11.252 million, or 4.21%, in the first half 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 $588.821 million at June 30, 2015 increased by $104.805 million ($100 million from the PFC acquisition noted above) from deposits of $484.016 million on June 30, 2014 and were down $18.152 million 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 $1.973 million in the first six months of 2015, increased $.632 million from the first six months 2014 level of $1.341 million. The primary reason for the increase was increased year over year activity in the secondary mortgage market. Income from this source totaled $.449 million compared to $.243 million in the 2014 six month period. Noninterest expense, at $11.456 million in the first half of 2015, increased $1.452 million, or 14.50% from the first half of 2014. The increase from the first six months 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. We remain diligent in monitoring and controlling our overall expense base, which continues to reside at below peer levels.
Assets and Capital
Total assets of the Corporation at June 30, 2015 were $735.338 million, up $139.469 million from the $595.869 million reported at June 30, 2014, approximately $125 million attributed to the acquisition of PFC in December 2014, and down slightly from the $743.785 million of total assets at year-end 2014. The decrease in assets during the first half 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 June 30, 2015 totaled $75.746 million, or $12.15 per share, compared to $66.477 million, or $12.03 per share on June 30, 2014. The Corporation and the Bank are both "well-capitalized" with Tier 1 Capital at the Corporation of 9.14% and 9.91% at the Bank.
Paul D. Tobias, Chairman and Chief Executive Officer of the Corporation concluded, "With the acquisition of PFC, the combination of our organizations has resulted in accretive earnings as planned, 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 part of Marquette County and tangent markets. Our increased asset size resulted in the anticipated operational and scale efficiencies, which contributed to earnings accretion. 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, 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 | ||||||||||||
| (Dollars in thousands, except per share data) | As of and For the Period Ending June 30, 2015 |
As of and For the Year Ending December 31, 2014 | As of and For the Period Ending June 30, 2014 |
|||||||||
| (Unaudited) | (Unaudited) | |||||||||||
| Selected Financial Condition Data (at end of period): | ||||||||||||
| Assets | $ | 735,338 | $ | 743,785 | $ | 595,869 | ||||||
| Loans | 615,247 | 600,935 | 502,940 | |||||||||
| Investment securities | 60,561 | 65,832 | 47,374 | |||||||||
| Deposits | 588,821 | 606,973 | 484,016 | |||||||||
| Borrowings | 64,483 | 49,846 | 42,087 | |||||||||
| Shareholders' equity | 75,746 | 73,996 | 66,477 | |||||||||
| Selected Statements of Income Data (six months and year ended): | ||||||||||||
| Net interest income | $ | 14,520 | $ | 23,527 | $ | 11,252 | ||||||
| Income before taxes | 4,533 | 2,829 | 2,214 | |||||||||
| Net income | 2,985 | 1,700 | 1,466 | |||||||||
| Income per common share - Basic | .48 | .30 | .27 | |||||||||
| Income per common share - Diluted | .48 | .30 | .26 | |||||||||
| Weighted average shares outstanding | 6,250,984 | 5,592,738 | 5,529,290 | |||||||||
| Weighted average shares outstanding- Diluted | 6,278,498 | 5,653,811 | 5,623,192 | |||||||||
| Three Months Ended: | ||||||||||||
| Net interest income | $ | 7,000 | $ | 6,389 | $ | 5,659 | ||||||
| Income before taxes and preferred dividend | 2,450 | (726 | ) | 1,220 | ||||||||
| Net income | 1,614 | (652 | ) | 806 | ||||||||
| Income per common share - Basic | .26 | (.13 | ) | .15 | ||||||||
| Income per common share - Diluted | .26 | (.13 | ) | .15 | ||||||||
| Weighted average shares outstanding | 6,245,553 | 5,770,104 | 5,527,690 | |||||||||
| Weighted average shares outstanding- Diluted | 6,288,147 | 5,770,104 | 5,557,563 | |||||||||
| Selected Financial Ratios and Other Data: | ||||||||||||
| Performance Ratios: | ||||||||||||
| Net interest margin | 4.35 | % | 4.19 | % | 4.21 | % | ||||||
| Efficiency ratio | 70.15 | 74.43 | 78.95 | |||||||||
| Return on average assets | .82 | .28 | .51 | |||||||||
| Return on average equity | 8.03 | 2.57 | 4.51 | |||||||||
| Average total assets | $ | 735,225 | $ | 605,612 | $ | 580,934 | ||||||
| Average total shareholders' equity | 74,965 | 66,249 | 65,508 | |||||||||
| Average loans to average deposits ratio | 100.99 | % | 103.98 | % | 103.78 | % | ||||||
| Common Share Data at end of period: | ||||||||||||
| Market price per common share | $ | 10.53 | $ | 11.85 | $ | 12.90 | ||||||
| Book value per common share | 12.15 | 11.81 | 12.03 | |||||||||
| Tangible book value per share | 11.35 | 11.01 | 12.03 | |||||||||
| Dividends paid per share, annualized | .30 | .225 | .200 | |||||||||
| Common shares outstanding | 6,236,250 | 6,266,756 | 5,527,690 | |||||||||
| Other Data at end of period: | ||||||||||||
| Allowance for loan losses | $ | 5,600 | $ | 5,140 | $ | 5,097 | ||||||
| Non-performing assets | $ | 12,044 | $ | 6,949 | $ | 4,599 | ||||||
| Allowance for loan losses to total loans | .91 | % | .86 | % | 1.01 | % | ||||||
| Non-performing assets to total assets | 1.64 | % | .93 | % | .77 | % | ||||||
| Texas ratio | 15.76 | % | 9.37 | % | 6.43 | % | ||||||
| Number of: | ||||||||||||
| Branch locations | 17 | 17 | 11 | |||||||||
| FTE Employees | 168 | 160 | 134 | |||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| June 30, | December 31, | June 30, | ||||||||||||
| 2015 | 2014 | 2014 | ||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | 16,658 | $ | 21,947 | $ | 20,744 | ||||||||
| Federal funds sold | 3 | - | 2 | |||||||||||
| Cash and cash equivalents | 16,661 | 21,947 | 20,746 | |||||||||||
| Interest-bearing deposits in other financial institutions | 5,338 | 5,797 | 235 | |||||||||||
| Securities available for sale | 60,561 | 65,832 | 47,374 | |||||||||||
| Federal Home Loan Bank stock | 2,169 | 2,973 | 3,060 | |||||||||||
| Loans: | ||||||||||||||
| Commercial | 447,086 | 433,566 | 374,565 | |||||||||||
| Mortgage | 150,998 | 148,984 | 113,332 | |||||||||||
| Consumer | 17,163 | 18,385 | 15,043 | |||||||||||
| Total Loans | 615,247 | 600,935 | 502,940 | |||||||||||
| Allowance for loan losses | (5,600 | ) | (5,140 | ) | (5,097 | ) | ||||||||
| Net loans | 609,647 | 595,795 | 497,843 | |||||||||||
| Premises and equipment | 12,584 | 12,658 | 9,790 | |||||||||||
| Other real estate held for sale | 2,392 | 3,010 | 1,947 | |||||||||||
| Deferred tax asset | 10,013 | 11,498 | 9,097 | |||||||||||
| Deposit based intangibles | 1,136 | 1,196 | - | |||||||||||
| Goodwill | 3,805 | 3,805 | - | |||||||||||
| Other assets | 11,032 | 19,274 | 5,777 | |||||||||||
| TOTAL ASSETS | $ | 735,338 | $ | 743,785 | $ | 595,869 | ||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
| LIABILITIES: | ||||||||||||||
| Deposits: | ||||||||||||||
| Noninterest bearing deposits | $ | 108,068 | $ | 95,498 | $ | 73,732 | ||||||||
| NOW, money market, interest checking | 198,482 | 212,565 | 148,242 | |||||||||||
| Savings | 29,921 | 28,015 | 15,658 | |||||||||||
| CDs < $100,000 | 133,582 | 134,951 | 143,140 | |||||||||||
| CDs > $100,000 | 28,731 | 30,316 | 23,151 | |||||||||||
| Brokered | 90,037 | 105,628 | 80,093 | |||||||||||
| Total deposits | 588,821 | 606,973 | 484,016 | |||||||||||
| Borrowings | 64,483 | 49,846 | 42,087 | |||||||||||
| Other liabilities | 6,288 | 12,970 | 3,289 | |||||||||||
| Total liabilities | 659,592 | 669,789 | 529,392 | |||||||||||
| SHAREHOLDERS' EQUITY: | ||||||||||||||
| Preferred stock - No par value: | ||||||||||||||
| Authorized - 500,000 shares, none issued and outstanding | - | - | - | |||||||||||
| Common stock and additional paid in capital - No par value | ||||||||||||||
| Authorized - 18,000,000 shares | ||||||||||||||
| Issued and outstanding - 6,236,250; 6,266,756 and 5,527,690 respectively | 61,461 | 61,679 | 53,703 | |||||||||||
| Retained earnings | 13,851 | 11,804 | 12,325 | |||||||||||
| Accumulated other comprehensive income | 434 | 513 | 449 | |||||||||||
| Total shareholders' equity | 75,746 | 73,996 | 66,477 | |||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 735,338 | $ | 743,785 | $ | 595,869 | ||||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||
| June 30, | June 30, | |||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| INTEREST INCOME: | ||||||||||||||
| Interest and fees on loans: | ||||||||||||||
| Taxable | $ | 7,742 | $ | 6,373 | $ | 15,967 | $ | 12,654 | ||||||
| Tax-exempt | 3 | - | 6 | 23 | ||||||||||
| Interest on securities: | ||||||||||||||
| Taxable | 261 | 244 | 563 | 481 | ||||||||||
| Tax-exempt | 53 | 14 | 94 | 27 | ||||||||||
| Other interest income | 40 | 32 | 102 | 80 | ||||||||||
| Total interest income | 8,099 | 6,663 | 16,732 | 13,265 | ||||||||||
| INTEREST EXPENSE: | ||||||||||||||
| Deposits | 801 | 800 | 1,624 | 1,622 | ||||||||||
| Borrowings | 298 | 204 | 588 | 391 | ||||||||||
| Total interest expense | 1,099 | 1,004 | 2,212 | 2,013 | ||||||||||
| Net interest income | 7,000 | 5,659 | 14,520 | 11,252 | ||||||||||
| Provision for loan losses | 200 | 191 | 505 | 374 | ||||||||||
| Net interest income after provision for loan losses | 6,800 | 5,468 | 14,015 | 10,878 | ||||||||||
| OTHER INCOME: | ||||||||||||||
| Deposit service fees | 244 | 192 | 428 | 349 | ||||||||||
| Income from loans sold on the secondary market | 282 | 139 | 449 | 242 | ||||||||||
| SBA/USDA loan sale gains | 282 | 166 | 400 | 548 | ||||||||||
| Mortgage servicing income | 199 | 89 | 230 | 102 | ||||||||||
| Net security gains | 259 | - | 269 | - | ||||||||||
| Other | 84 | 64 | 198 | 100 | ||||||||||
| Total other income | 1,350 | 650 | 1,974 | 1,341 | ||||||||||
| OTHER EXPENSE: | ||||||||||||||
| Salaries and employee benefits | 2,916 | 2,523 | 5,963 | 5,064 | ||||||||||
| Occupancy | 626 | 546 | 1,202 | 1,084 | ||||||||||
| Furniture and equipment | 390 | 303 | 789 | 622 | ||||||||||
| Data processing | 359 | 288 | 714 | 574 | ||||||||||
| Advertising | 120 | 123 | 246 | 230 | ||||||||||
| Professional service fees | 279 | 276 | 580 | 607 | ||||||||||
| Loan and deposit | 125 | 83 | 263 | 162 | ||||||||||
| Writedowns and losses on other real estate held for sale | 20 | 14 | 37 | 14 | ||||||||||
| FDIC insurance assessment | 140 | 90 | 248 | 175 | ||||||||||
| Telephone | 106 | 82 | 238 | 164 | ||||||||||
| Other | 619 | 570 | 1,176 | 1,309 | ||||||||||
| Total other expenses | 5,700 | 4,898 | 11,456 | 10,005 | ||||||||||
| Income before provision for income taxes | 2,450 | 1,220 | 4,533 | 2,214 | ||||||||||
| Provision for income taxes | 836 | 414 | 1,548 | 748 | ||||||||||
| NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | 1,614 | 806 | 2,985 | 1,466 | ||||||||||
| INCOME PER COMMON SHARE: | ||||||||||||||
| Basic | $ | .26 | $ | .15 | $ | .48 | $ | .27 | ||||||
| Diluted | $ | .26 | $ | .14 | $ | .48 | $ | .26 | ||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | |||||||||
| LOAN PORTFOLIO AND CREDIT QUALITY | |||||||||
| (Dollars in thousands) | |||||||||
| Loan Portfolio Balances (at end of period): | |||||||||
| June 30, | December 31, | June 30, | |||||||
| 2015 | 2014 | 2014 | |||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Commercial Loans: | |||||||||
| Other | 235,339 | 221,680 | 182,353 | ||||||
| Real estate - operators of nonresidential buildings | $ | 102,380 | $ | 106,644 | $ | 103,598 | |||
| Hospitality and tourism | 42,391 | 46,211 | 42,111 | ||||||
| Lessors of residential buildings | 22,419 | 19,776 | 14,912 | ||||||
| Commercial construction | 19,868 | 16,284 | 10,550 | ||||||
| Gasoline stations and convenience stores | 14,601 | 13,841 | 11,881 | ||||||
| Lessors of other real estate property | 10,088 | 9,130 | 9,160 | ||||||
| Total Commercial Loans | 447,086 | 433,566 | 374,565 | ||||||
| 1-4 family residential real estate | 142,276 | 139,553 | 105,868 | ||||||
| Consumer | 17,163 | 18,385 | 15,043 | ||||||
| Consumer construction | 8,722 | 9,431 | 7,464 | ||||||
| Total Loans | $ | 615,247 | $ | 600,935 | $ | 502,940 | |||
| Credit Quality (at end of period): | ||||||||||||
| June 30, | December 31, | June 30, | ||||||||||
| 2015 | 2014 | 2014 | ||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||
| Nonperforming Assets : | ||||||||||||
| Nonaccrual loans | $ | 8,690 | $ | 3,939 | $ | 2,055 | ||||||
| Loans past due 90 days or more | 140 | - | - | |||||||||
| Restructured loans | 822 | - | 597 | |||||||||
| Total nonperforming loans | 9,652 | 3,939 | 2,652 | |||||||||
| Other real estate owned | 2,392 | 3,010 | 1,947 | |||||||||
| Total nonperforming assets | $ | 12,044 | $ | 6,949 | $ | 4,599 | ||||||
| Nonperforming loans as a % of loans | 1.57 | % | .66 | % | .53 | % | ||||||
| Nonperforming assets as a % of assets | 1.64 | % | .93 | % | .77 | % | ||||||
| Reserve for Loan Losses: | ||||||||||||
| At period end | $ | 5,600 | $ | 5,140 | $ | 5,097 | ||||||
| As a % of average loans | .93 | % | 1.01 | % | 1.04 | % | ||||||
| As a % of nonperforming loans | 58.02 | % | 130.49 | % | 192.19 | % | ||||||
| As a % of nonaccrual loans | 64.44 | % | 130.49 | % | 248.03 | % | ||||||
| Texas Ratio | 15.76 | % | 9.37 | % | 6.43 | % | ||||||
| Charge-off Information (year to date): | ||||||||||||
| Average loans | $ | 603,711 | $ | 509,749 | $ | 489,656 | ||||||
| Net charge-offs (recoveries) | $ | 44 | $ | 721 | $ | (62 | ) | |||||
| Charge-offs as a % of average loans | .01 | % | .14 | % | N/M | % | ||||||
| MACKINAC FINANCIAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||
| QUARTERLY FINANCIAL HIGHLIGHTS | ||||||||||||||||
| QUARTER ENDED | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
| 2015 | 2015 | 2014 | 2014 | 2014 | ||||||||||||
| BALANCE SHEET (Dollars in thousands) | ||||||||||||||||
| Total loans | $ | 615,247 | $ | 597,731 | $ | 600,935 | $ | 518,373 | $ | 502,940 | ||||||
| Allowance for loan losses | (5,600 | ) | (5,527 | ) | (5,140 | ) | (5,279 | ) | (5,097 | ) | ||||||
| Total loans, net | 609,647 | 592,204 | 595,795 | 513,094 | 497,843 | |||||||||||
| Total assets | 735,338 | 728,844 | 743,785 | 613,943 | 595,869 | |||||||||||
| Core deposits | 470,053 | 468,622 | 471,029 | 403,950 | 380,772 | |||||||||||
| Noncore deposits | 118,768 | 129,291 | 135,944 | 87,256 | 103,244 | |||||||||||
| Total deposits | 588,821 | 597,913 | 606,973 | 491,206 | 484,016 | |||||||||||
| Total borrowings | 64,483 | 49,839 | 49,846 | 52,409 | 42,087 | |||||||||||
| Total shareholders' equity | 75,746 | 75,038 | 73,996 | 67,132 | 66,477 | |||||||||||
| Total tangible equity | 70,805 | 70,066 | 68,995 | 67,132 | 66,477 | |||||||||||
| Total shares outstanding | 6,236,250 | 6,257,450 | 6,266,756 | 5,564,815 | 5,527,690 | |||||||||||
| Weighted average shares outstanding | 6,245,553 | 6,256,475 | 5,770,104 | 5,540,200 | 5,527,690 | |||||||||||
| AVERAGE BALANCES (Dollars in thousands) | ||||||||||||||||
| Assets | $ | 732,979 | $ | 737,496 | $ | 651,935 | $ | 607,840 | $ | 581,150 | ||||||
| Loans | 607,330 | 600,052 | 549,411 | 509,618 | 492,923 | |||||||||||
| Deposits | 594,266 | 601,834 | 522,155 | 494,599 | 469,720 | |||||||||||
| Equity | 75,564 | 73,776 | 67,397 | 66,558 | 65,553 | |||||||||||
| INCOME STATEMENT (Dollars in thousands) | ||||||||||||||||
| Net interest income | $ | 7,000 | $ | 7,520 | $ | 6,389 | $ | 5,886 | $ | 5,659 | ||||||
| Provision for loan losses | 200 | 305 | 639 | 187 | 191 | |||||||||||
| Net interest income after provision | 6,800 | 7,215 | 5,750 | 5,699 | 5,468 | |||||||||||
| Total noninterest income | 1,350 | 624 | 1,003 | 768 | 650 | |||||||||||
| Total noninterest expense | 5,700 | 5,756 | 7,479 | 5,126 | 4,898 | |||||||||||
| Income before taxes | 2,450 | 2,083 | (726 | ) | 1,341 | 1,220 | ||||||||||
| Provision for income taxes | 836 | 712 | (74 | ) | 455 | 414 | ||||||||||
| Net income available to common shareholders | $ | 1,614 | $ | 1,371 | $ | (652 | ) | $ | 886 | $ | 806 | |||||
| Income pre-tax, pre-provision | $ | 2,650 | $ | 2,388 | $ | (87 | ) | $ | 1,528 | $ | 1,411 | |||||
| PER SHARE DATA | ||||||||||||||||
| Earnings | $ | .26 | $ | .22 | $ | (.13 | ) | $ | .16 | $ | .15 | |||||
| Book value per common share | 12.15 | 11.99 | 11.81 | 12.06 | 12.03 | |||||||||||
| Tangible book value per share | 11.35 | 11.20 | 11.01 | 12.06 | 12.03 | |||||||||||
| Market value, closing price | 10.53 | 11.39 | 11.85 | 11.30 | 12.90 | |||||||||||
| Dividends per share | .075 | .075 | .075 | .05 | .05 | |||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||
| Nonperforming loans/total loans | 1.57 | % | 1.98 | % | .66 | % | .52 | % | .53 | % | ||||||
| Nonperforming assets/total assets | 1.64 | 1.99 | .93 | .74 | .77 | |||||||||||
| Allowance for loan losses/total loans | .91 | .92 | .86 | 1.02 | 1.01 | |||||||||||
| Allowance for loan losses/nonperforming loans | 58.02 | 46.64 | 130.49 | 195.88 | 192.19 | |||||||||||
| Texas ratio (1) | 15.76 | 19.16 | 9.37 | 6.27 | 6.43 | |||||||||||
| PROFITABILITY RATIOS | ||||||||||||||||
| Return on average assets | .88 | % | .75 | % | (.40 | )% | .58 | % | .56 | % | ||||||
| Return on average equity | 8.57 | 7.54 | (3.84 | ) | 5.28 | 4.93 | ||||||||||
| Net interest margin | 4.17 | 4.53 | 4.19 | 4.20 | 4.18 | |||||||||||
| Efficiency ratio | 69.94 | 74.27 | 70.27 | 73.83 | 77.55 | |||||||||||
| Average loans/average deposits | 102.20 | 99.78 | 105.22 | 103.03 | 104.94 | |||||||||||
| CAPITAL ADEQUACY RATIOS | ||||||||||||||||
| Tier 1 leverage ratio | 9.14 | % | 8.75 | % | 8.57 | % | 10.23 | % | 10.50 | % | ||||||
| Tier 1 capital to risk weighted assets | 10.18 | 10.33 | 10.23 | 11.68 | 11.86 | |||||||||||
| Total capital to risk weighted assets | 11.04 | 11.22 | 11.07 | 12.68 | 12.87 | |||||||||||
| Average equity/average assets (for the quarter) | 10.31 | 10.00 | 10.34 | 10.95 | 11.28 | |||||||||||
| Tangible equity/tangible assets (at quarter end) | 9.68 | 9.68 | 9.25 | 10.93 | 11.16 | |||||||||||
| (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